Mobile Carriers Must Act Now to Meet Demand for 'Smart' Mobile Services, Says Survey

Carriers' role in the mobile value chain at risk from third-party providers

NAPERVILLE, Illinois, February 11 - A global survey of 15,000 consumers across 15 countries highlights a huge
demand for smart, personalized mobile Internet services. However, mobile
carriers are risking their place in the mobile value chain by not responding
to these demands quickly enough. Survey respondents suggest that over the
next six months, media organizations such as the BBC, application developers
such as Facebook and service providers such as Google, will be viewed as the
most appropriate providers instead of mobile carriers.

The survey, undertaken by Nielsen Research and commissioned by Tellabs,
reveals a strong user demand for a smart, personalized mobile Internet
experience. Almost two-thirds of users (63%) say they would use these
services - tailored to personal preferences, location, time of day and social
setting - within the next six months.

Despite this high demand, the research delivered a stern warning to
carriers. In 11 out of 14 areas(1), users expect a range of third-party
providers to deliver new services such as music, mobile e-mail and
location-based services within six months. In contrast, mobile carriers were
only deemed "most appropriate" to provide basic voice, SMS and MMS services.

The survey also revealed some positive news for mobile carriers. Users
know that today, carriers provide these new services in eight out of 11
areas(2). The survey also shows that globally, users' trust in carriers is
high, second only to banks.

"Clearly consumers are clamoring for smart, personalized mobile Internet
services. But consumers have brought expectations from the fixed-line
Internet to the mobile Internet," said Rob Pullen, chief executive officer
and president of Tellabs. "If carriers want to stay in the game and avoid
becoming 'dumb pipes,' they need to use the valuable assets they already
have, such as location-awareness, and to make networks smarter for
personalization. They need to act now - and act fast."

"This research provides some clear insights into users' attitudes towards
their mobile operators and the services they offer. It shows that the mobile
telecoms world is undergoing immense change as users discover and adopt new
applications and services," said Edward Kershaw, Vice President, EMEA,
Nielsen. "While users are positive about their mobile future, it's becoming
clear that operators must remain flexible and responsive to consumer demands
in order to maintain their customers' loyalty."

The research shows that users now more readily identify with third-party
brands such as Google than with their mobile carriers. But it also shows that
carriers have an opportunity to make the most of today's positive position.
By making networks smarter to deliver new, personalized mobile Internet
services, carriers can build powerful relationships with users. They can
continue to play a leading role in the mobile Internet and its value chain in
order to secure valuable revenue streams.

Tellabs(R) Mobile Solutions add intelligence to mobile networks,
empowering them to deliver location- and context-aware smart applications and
services. The acquisition of Silicon Valley start-up WiChorus in 2009 gives
Tellabs important mobile packet core and Internet offload capabilities
through its Tellabs(R) 9000 SmartCore(TM) platform. With up to 16 times more
throughput than competitive products, Tellabs 9000 SmartCore(TM) platform can
offload up to 70% of Internet traffic before it reaches the core. This
technology, coupled with Tellabs' mobile backhaul expertise, means Tellabs
can dramatically "raise the IQ" of carriers' mobile networks.

The full survey conducted by Nielsen is available on request. Visit
www.tellabs.com to learn more about the Tellabs(R) 9000 SmartCore(TM)
platform.

    1) The 14 service areas are: Short messaging services (SMS);
       voice calls; multimedia messaging services (MMS); applications; games;
       music; Internet: browsing /searching excluding news, weather and
       sports sites; e-mail; Internet: browsing news, weather and sports
       sites; Internet: social networking; location / navigation services;
       Internet: purchasing goods / services; control devices / appliances
       at home; mobile payment.
    2) Users say carriers currently provide the following services:
       SMS; voice calls; MMS; music; Internet: browsing /searching excluding
       news, weather and sports sites; e-mail; Internet: browsing news,
       weather and sports sites; location / navigation services.

About Tellabs - Tellabs helps customers succeed through innovation.
That's why 43 of the top 50 global telecom service providers choose our
mobile, optical and business solutions. We help telecom service providers,
independent operating companies, MSO/cable TV companies, enterprises and
government agencies get ahead by adding revenue, reducing expenses and
optimizing networks. With wireless and wireline networks in more than 90
countries, we enrich people's lives by innovating the way the world
connects(TM). Tellabs (Nasdaq: TLAB) is part of the NASDAQ Global Select
Market, Ocean Tomo 300(TM) Patent Index, the S&P 500 and several corporate
responsibility indexes including Maplecroft Climate Innovation Index,
FTSE4Good and eight FTSE KLD indexes. www.tellabs.com

About The Nielsen Company

The Nielsen Company is a global information and media company with
leading market positions in marketing and consumer information, television
and other media measurement, online intelligence, mobile measurement, trade
shows and business publications. The privately held company is active in
approximately 100 countries, with headquarters in New York, USA. For more
information, visit www.nielsen.com, or blog.nielsen.com/nielsenwire/

Tellabs(R) and Tellabs logo are trademarks of Tellabs or its affiliates
in the United States and/or other countries. Any other company or product
names mentioned herein may be trademarks of their respective companies.

Media, Marta Kwiatek, +1-630-798-2524, marta.kwiatek at tellabs.com, or Ariana Nikitas, +1-630-798-2532, ariana.nikitas at tellabs.com, or Investors, Tom Scottino, +1-630-798-3602, tom.scottino at tellabs.com, all of Tellabs