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Virgin Media Business awards Transmode mobile backhaul contract


Stockholm, Sweden - Transmode, a global supplier of packet-optical networking solutions, today announced that it has signed a new eight year contract with Virgin Media Business for Ethernet-based mobile backhaul service delivery networks across the UK. Transmode estimates that the new contract is worth up to 150 M SEK in 2011 and 2012 and deliveries begin in the third quarter 2011.

The new eight year contract with Virgin Media Business further enhances the carrier’s advanced nationwide fibre-optic network to help the company grow its market share in the mobile operator space. The deployment of Transmode’s optical networking systems will begin later this year with an initial deployment connecting 14 regional Aggregation Networks (ANs) that will connect a significant number of base stations with fibre-based synchronous Gigabit Ethernet services. The deployment will enable Virgin Media Business to offer Sync-E enabled mobile backhaul services to mobile operators all over the UK.

“Mobile operators increasingly need robust, powerful networks to underpin a superior customer experience, from excellent call quality through to accessing social networks on the move. As this sector continues to grow and evolve, it represents a significant opportunity for growth. Analysts estimate that by 2015 globally there will be a ten-fold increase to more than two million fibre-connected base stations. We believe that this is one of the biggest packet-optical based mobile backhaul projects in Europe and it will provide Virgin Media Business with a state-of-the-art platform for their Sync-E enabled, Gigabit Ethernet mobile backhaul services,” said Karl Thedéen, Chief Executive Officer at Transmode.

“The explosion of mobile data traffic due to the use of smartphones and other similar devices is driving the networks of mobile operators to breaking point. Working with Transmode we’re looking to transform backhaul networks by delivering a unique service that deploys fibre-based Ethernet services to cell sites. We’re best placed to deliver the speed and capacity that mobile companies need,” said Mark Heraghty, Managing Director, Virgin Media Business. “With a fibre-based core network, we’ve got big ambitions for this market and see it as integral to the growth of our overall market share. Our partnership with Transmode makes our proposition all the more compelling.”

As consumers demand access to more and more data on the move, the volume of traffic crossing mobile operator’s networks is set to rocket,” continued Mark Heraghty. “Working hand in hand with Transmode gives us the technical edge to ensure that any amount of data is never too much for the mobile operators to handle.”

The dedicated networks will support mobile backhaul services to UK mobile operators and will rely on Transmode’s Native Packet Optical architecture, including the recently-launched Layer 2 Ethernet Muxponder family. Ethernet services will be provided from the mobile operators’ core node locations right through to the operator’s cell sites. They will enable Virgin Media Business to provide highly flexible services with better synchronisation performance than alternative solutions in the market.

See associated press release issued earlier today by Virgin Media Business:

The information in this announcement is required to be disclosed by Transmode Holding AB under the Swedish Securities Markets Act (Sw. lagen om värdepappersmarknaden). This information was released for publication at 8:35 AM CEST on 5 September 2011.

About Transmode

Transmode is a global provider of packet-optical networking solutions that enable fixed line and mobile network operators to cost effectively address the capacity needs created by the rapid growth in video and data traffic. These solutions are important building blocks in next-generation high-speed optical networks that support services such as broadband backhaul, mobile data backhaul, video delivery services and cloud computing. Transmode’s solutions are based on Wavelength Division Multiplexing (WDM) and packet optical transport technologies, which are designed to increase the capacity, flexibility and functionality of optical metro core and metro access networks. Transmode’s Intelligent WDM (iWDM™) approach gives key advantages to customers, such as ultra-low latency, low power consumption and innovative network design.

Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ OMX Stockholm Exchange (TRMO). Since 2000 the company has installed more than 20,000 systems for over 300 fixed and mobile network operators, service providers, large enterprises and public institutions in over 40 countries across the globe.

For additional information about Transmode, please visit

About Virgin Media Business

Virgin Media Business has the UK’s only nationwide fibre optic network, carrying 35 per cent of all business broadband traffic. Already able to connect to 85 per cent of businesses in the UK, Virgin Media Business has the ability to connect to all organisations. The largest business-to-business brand in the Virgin group, it prides itself on delivering innovative, high quality solutions that breakdown the barriers facing UK businesses today.

Staff are located at 40 offices across the country, meaning that Virgin Media Business really is closer to its customers. Organisations working with Virgin Media Business include London City Airport, Nottingham Building Society, Arqiva, Hampshire and Isle of Wight Partnership and South West Water.

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