Alcatel Corp. said it has acquired gateway company WaterCove Networks to reinforce its core network portfolio. Watercove makes GPRS gateway support node (GGSN) products, which enhance a network’s capacity to transmit data and charge for services intelligently. “The skill set of WaterCove Networks is highly complementary with that of Alcatel,” said Marc Rouanne, chief operating officer of Alcatel’s mobile activities. The announcement did not include the cost of the acquisition. Activity has heated up recently in the gateway segment. Nokia Networks announced last November the acquisition of the key staff of another player, Tahoe Networks.
Other startups still operating independently include Starent Networks and Megisto Networks. Starent recently announced it would supply data core network equipment for SK Telecom’s CDMA network. Starent will provide SK Telekom with its SMAG gear, which allows the carrier to provide such services as video messaging, video on demand, music on demand and mobile television. WaterCove had been working closely with Alcatel prior to the acquisition, and had signed a $20 million deal with the French vendor.