Market Overview

Metaswitch Files Federal Antitrust Lawsuit against Ribbon Communications


Alleges Ribbon Illegally Using Dominant Market Position in Order to
Raise Prices for Network Operators

Claims Ribbon's Anticompetitive Conduct Impedes Access to Desperately
Needed Modern Communications Services for Millions of Americans

Metaswitch Networks ("Metaswitch") today announced that it has filed an
antitrust action that could help ensure that tens of millions of
Americans have access to cost effective and reliable upgrades of their
fixed-line telephone networks. The wide-ranging lawsuit was brought in
the United States District Court for the Southern District of New York
against Ribbon Communications, Inc.1 ("Ribbon") (NASDAQ: RBBN). JP Morgan (NYSE:JPM) directly or indirectly owns approximately
48% of the outstanding shares of Ribbon and has the right to designate
five of Ribbon's eight current directors according to Ribbon's most
recent proxy filing. Current Ribbon President, Chief Executive Officer
and director, Franklin "Fritz" Hobbs, currently serves as a Senior
Advisor at One Equity Partners, JPM's former private equity unit.

Many U.S. and Canadian communities, especially those that are rural,
currently rely on land-line telephone networks that need modernization
in order to ensure the continuity of reliable service, including for
critical emergency calls to police, fire departments and 911, as well as
enable high-speed internet access. Metaswitch is Ribbon's only
significant remaining competitor in the U.S. and Canada that competes to
transform and modernize these land-line telephone networks for the use
of voice over internet protocol ("VoIP"). The lawsuit alleges that
Ribbon has aggressively consolidated the industry through serial
acquisitions and is illegally using exclusionary and deceptive tactics
to eliminate its last major competitor in the market.

Martin Lund, Metaswitch Chief Executive Officer stated, "This litigation
seeks to ensure Americans' access to desperately needed land-line
network upgrades, particularly in rural areas where cellular service can
be less reliable. If left unchecked, Ribbon will be free to raise prices
for more than 700 local network operators who will have no choice but to
either slow down much-needed upgrades or to pass on the impact of
increased costs to consumers."

The complaint alleges that after Metaswitch refused to be acquired by
Ribbon in 2013, Ribbon launched an anticompetitive campaign to "kill
Metaswitch", including by asserting certain intellectual property rights
in bad faith and in contravention of royalty-free licensing obligations,
systematically maligning Metaswitch to customers with false and
misleading information, and coercing customers to choose Ribbon instead
of Metaswitch with anticompetitive pricing practices, among other things.

Lund added, "Blatant efforts to dominate a captive market and price
gouge are exactly what the antitrust laws are designed to stop. We are
pursuing this case not just to protect Metaswitch, but because we
believe Ribbon's conduct is hindering customers' ability to make
fixed-line upgrades that could enhance the day-to-day lives of millions."

The federal antitrust action is seeking treble damages from Ribbon for
alleged violations of the Sherman Act, damages under the Lanham Act and
various state statutes, as well as permanent injunctive relief seeking
to prevent Ribbon from continuing its unlawful conduct. Metaswitch is
requesting a jury trial and also seeking pre- and post-judgment interest
and reimbursement of Metaswitch's costs and expenses and attorneys' fees.

For additional information, please visit

About Metaswitch

Metaswitch is the world's leading cloud native communications software
company. The company develops commercial and open-source software
solutions that are constructively disrupting the way that service
providers build, scale, innovate and account for communication services.
By working with Metaswitch, visionary service providers are realizing
the full economic, operational and technology benefits of becoming
cloud-based and software-centric. Metaswitch's award-winning solutions
are powering more than 1,000 service providers in today's global,
ultra-competitive and rapidly changing communications marketplace. For
more information, please visit

Copyright © 2018 Metaswitch Networks. "Metaswitch" and "Metaswitch
Networks" are registered trademarks. Brands and products referenced
herein are the trademarks or registered trademarks of their respective

1 Ribbon Communications, Inc. is a newly combined entity
formed by the merger of GENBAND Holdings Company, Sonus Networks, Inc.,
and various holding companies. "Ribbon" when used in this press release,
refers to Ribbon Communications plus any of its predecessor entities
included but not limited to Genband and Sonus.

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