In the short term, this negatively impacts demand for our access and interconnect SBC solutions. However, on the positive side, this has provided us opportunity to market and sell a broad or more strategic solution for this VoLTE network, namely our SMX and associated session delivery network element. Our SMX solution dramatically eases implementations and lower cost.

Finally, SIP trunking in the region has been slow to start. We believe the growth trajectory of the EMEA SIP trunking market will be different from that of North America due to the sheer number of Tier 1s operating in the region.

Our APAC and CALA regions both performed well in the first half of 2012. In APAC, we continue to pursue major Tier 1 service providers and are starting to see plans for SIP trunking in several markets, including China, Japan and Southeast Asia. In CALA, we are effectively leveraging our already strong position with the region's Tier 1.

Looking forward, we believe there are 3 major opportunities, which will drive Acme Packet's future growth globally. The first is SIP trunking. SIP trunking is expected to continue to be a major and steady contributor to our future success. A SIP trunk provides the IP link from an enterprise, using its own IP PBX or unified communications infrastructure to its service provider with PSCN or IP connectivity to the rest of the world. Today, SIP trunking is driving nearly all of our enterprise business.

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