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June 13, 2016

Mitel Invests in 5G Connectivity Initiative

The projected revenue from 5G is set to reach $247 billion by 2025, according to ABI Research. This new technology will generate new use cases as the Internet of Things (IoT) connects more of the world we live in and 5G becomes an integral part of the delivery of services the IoT will provide. Mitel, provider of real-time business, cloud and mobile communications, just announced a round of investment for its Ranzure Networks, which will support 5G initiatives for the IoT.

Mitel, along with LiveOak Venture Partners and other participants have raised $7.6 million in seed round for Ranzure Networks. The new company will be focusing on Evolved Packet Core to support service providers as they build 5G networks for next generation customized wireless services for the billions of devices that will be part of the IoT.

In addressing the need of a new network for dealing with the challenge all of this connectivity will present, Pardeep Kohli, President and CEO, Ranzure Networks Inc., said, "The days of rigid, proprietary hardware solutions are over and the migration to 5G provides opportunity for innovation. We believe that satisfying varying needs of billions of devices now requires a flexible Radio Access Network that is easy to deploy, operate and customize to meet the needs of each device."

The capabilities of 5G wireless access has to take into consideration the new mobile environment with high capacity devices as well as the IoT. It will have to support high data rates, very low latency, ultra-high reliability, energy efficiency and extreme device densities.

With mobile telephony, mobile broadband and media delivery, the applications are about information for humans. But the new requirements that will drive 5G are about end-to-end communication between machines. Machine-type communication (MTC) will include very large number of devices made up of the sensors that will monitor our homes, place of business and infrastructure in the world we live in.

The technology will require additional investment for key technological components, including access/backhaul integration, direct device-to-device communications, flexible duplex, flexible spectrum usage, multi-antenna transmission, 5G radio access and technology components and more.

"Our investment in Ranzure Networks enables Mitel to keep tight focus on the immediate needs of our current mobile customers and positions us to capitalize on the 5G market opportunity as it evolves and emerges," said Rich McBee, CEO, Mitel.

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