Tellabs snaps up WiChorus for packet core platform

Tellabs is buying San Jose-based startup WiChorus for $165 million. Tellabs, which provides mobile backhaul, said that the acquisition of WiChorus, which makes a 3G/4G mobile packet core technology, will help Tellabs customers more efficiently deliver mobile broadband data. The deal is expected to be dilutive to Tellabs earnings in 2010.

Tellabs' stock was down around 4 percent on the news to around $6.54 per share.

WiChorus made headlines last month when Clearwire selected its SmartCore 4G packet core platform as the gateway to route data traffic, terminate mobile sessions, authenticate devices and track users. At the time, WiChorus said it benefited from the open architecture of mobile WiMAX that allowed Clearwire to select best-of-breed solutions instead of having to go with an end-to-end network product.

Interestingly, WiChorus is one of several mobile startups getting snapped up by the bigger players. Just last week Cisco announced it would buy Starent for $2.9 billion. Cisco said the Starent deal would allow it to better handle mobile data traffic.

For more:
- see this press release

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