Sercomm and Altiostar Drive Small Cell and Open vRAN Innovation

TAIPEI,May 21,2019 -- Sercomm (TWSE: 5388),a leading manufacturer and supplier of telecom equipment,and Altiostar,the pioneer in open virtualized RAN (open vRAN) technology,today jointly announced the deployment of the world's first virtualized small cells which combine the benefits of Sercomm's optimized hardware design with Altiostar's vRAN (virtualized radio access network) and utilize the power efficient and feature rich Qualcomm FSM Small Cell Platform. The virtualized small cell has been deployed in the tests of Rakuten's fully virtualized,end-to-end cloud-native network in suburban Tokyo,initially launched in February 2019.

Open vRAN (Virtualized RadioAccess Network) solutions provide a common software fabric for macro and small cells and will help to provide telecom operators the ability to add intelligence,interference management,dual connectivity between 4G and 5G,auto provisioning of small cells and quickly adapt the software for different services with minimal CAPEX (capital expenditure). The vRAN transforms thetraditional RAN architecture by virtualizing and aggregating control of wireless functions to optimize performance and cost. In order to provide an agile,stable and scalable wireless network,operators will need to maximize the efficiency of their networks and drive down the CAPEX and OPEX (operational expenditure). By utilizing Qualcomm FSM Small Cell Platform,Sercomm's distributed unit (DU) and Altiostar's innovative virtualized software-centric centralized unit (CU),the combined solution is designed to offer operators the ability to achieve interoperability,scalability and adaptability between 4G and 5G environments.

By splitting the DU and CU,the virtualized small cell offers a disruptive solution for mobile networks. Through its powerful CU computing capability,the virtualized small cell,with joint processing and cooperative radio sharing capability,can be dynamically installed and operated as per the requirements of the network. Designed by Sercomm,the DU of the virtualized small cell comes with a compact form factor (27.5cm x 20cm) and low power consumption. Powered by FSM9016,the small cell is designed to deliver a robust,high-speed mobile broadband experience with low latency. The virtualized small cell is designed to enable a true end-to-end cloud native platform which not only greatly improves reliability,but also facilitates a heterogeneous network.

Combining the benefits of next-generation network architecture and the virtualized small cell,together it is designed to address the needs of the telecom industry by providing easy-to-install,high performance,expandable flexibility and seamless migration to 5G networks. The flexible small cell deployments offer cost saving and fast time-to-market,resulting in superior subscriber Quality of Experience (QoE). By adopting the vRAN architecture for the network to be launched commercially in October 2019,Rakuten is on track to become the first mobile operator in the world to offer a true fully virtualized end-to-end cloud native network that incorporates 4G and 5G macro and small cells.

"Sercomm has devoted significant R&D resources in developing innovative solutions to delivernext generation telecommunication services," said Ben Lin,CTO of Sercomm. "We are delighted to work with industry leaders like Rakuten,Qualcomm and Altiostar,together we look forward to continuing technology innovation and providing an evolutionary path to the networks of the future."

"Altiostar's innovative open virtualized architecture provides wireless operators with the ability to future-proof network investments through the deployment of a solution that addresses the needs of today with the reality of tomorrow's 5G infrastructure," said Thierry Maupile,EVP of Strategy and Product Management for Altiostar. "This innovative open architecture provides operators with greater capacity at a lower total cost of ownership,enables new business models,faster service creation and gives them a new procurement model for their networks."

"With the support of industry-leading technology partners such as Sercomm,Rakuten has deployed the world's first fully virtualized small cells in trials of our new mobile network," said Tareq Amin,CTO of Rakuten Mobile,Inc. "With improved agility and more diverse services,our users will benefit from this disruptive virtualized network and the industry shift away from reliance on dedicated hardware and legacy infrastructure."

"Small cells are a critical building block for advanced cellular network deployments that span 4G and 5G," said Puneet Sethi,senior director,product management,Qualcomm Atheros,Inc. "Rakuten's flexible architecture,which utilizes small cells that incorporate the Qualcomm FSM Small Cell Platforms for 4G and 5G technology,allows them to provide subscribers with advanced experiences now with a flexible path to rapidly expand to future generations. We are happy to be working together with Altiostar,Sercomm and Rakuten on this effort,utilizing our purpose built FSM platforms to deliver robust performance along with deployment flexibility and simplicity."

About Sercomm Corporation

Sercomm Corporation (TWSE: 5388) is a worldwide leading manufacturer of telecom and broadband equipment. Founded in 1992,Sercomm has focused on developing embedded solutions to make networking simple and affordable. With its fully integrated engineering capability and its state-of-the-art manufacturing facility,Sercomm offers comprehensive telecom broadband solutions such as small cells,residential/enterprise gateways,and IoT products,and is now a global leader in the industry. Headquartered in Taipei,Taiwan,Sercomm's global operation network covers markets in North America,Europe,and the Asia Pacific region. Its customer base includes the world's top service provider,networking OEM,and system integrators. For more information,please visitwww.sercomm.com.

About Altiostar

Altiostar provides a 5G-ready virtualized RAN software solution that supports open interfaces and disaggregates the hardware from the software to build an open multi-vendor web-scale network. This solution supports macro and small cells,indoor and outdoor,enabling interference management,carrier aggregation and dual reception to improve the efficiency of the network and enhances the Quality of Experience for the user while providing broadband speeds. Operators can add intelligence,quickly adapt the software for different services and automate operations to rapidly scale the network.

For more information visithttp://www.altiostar.comor follow on Twitter @altiostar.

About Rakuten

Rakuten,Inc. (TSE: 4755) is a global leader in internet services that empower individuals,communities,businesses and society. Founded in Tokyo in 1997 as an online marketplace,Rakuten has expanded to offer services in e-commerce,fintech,digital content and communications to more than 1.2 billion members around the world. The Rakuten Group has over 17,000 employees,and operations in 30 countries and regions. For more information visit https://global.rakuten.com/corp/.

Qualcomm and FSM are trademarks of Qualcomm Incorporated,registered in the United States and other countries.

Qualcomm FSM is a product of Qualcomm Technologies,Inc. and/or its subsidiaries.