Monday, March 31, 2003

VideoTele.com Introduces Real Time MPEG-4 for Digital TV

VideoTele.com, a subsidiary of Tut Systems, announced real-time digital video transcoding from MPEG-2 to MPEG-4 for its Astria content processor. The platform can be used to deliver MPEG-4 video within an MPEG transport stream over transmission types including digital terrestrial TV, digital cable, DSL and FTTH.
http://www.tutsystems.com

i2 Telecom Builds SIP Network with dynamicsoft

i2 Telecom, a start-up service provider that will soon launch international, long-distance VoIP service, is building its network with dynamicsoft's Route Engine Platform. Launching in April, i2 Telecom will target its discounted voice services at business and residential customers. Dynamicsoft's Route Engine Platform provides several routing functions, including telephone gateway routing and traffic load balancing. It also performs registration services, location services and the execution of advanced multimedia services.
http://www.dynamicsoft.com

VocalData and SS8 Interoperate for CALEA Requirements

VocalData has enhanced the lawful intercept compliance capabilities of its VOISS voice application server by providing interoperability with SS8 Networks' Xcipio SSDF platform. Under terms of the Communications Assistance to Law Enforcement Act, (CALEA), telecom service providers are required to ensure that their equipment, facilities and services comply with authorized electronic surveillance. Previously, VocalData's service provider customers could comply with CALEA by interfacing with the PSTN via a Class 5 switch. The interoperability with SS8 enables the traffic to stay in the IP domain.


Separately, VocalData announced deployments of its VOISS application server with US Sonet and IT Partners. US Sonet is an ISP in Illinois that is using VocalData's application server to offer a bundle of high-speed Internet, on-line gaming, local and long-distance voice, and video - using FTTH access. IT Partners is a systems integrator in Dallas, Texas, offering hosted PBX solutions.
http://www.SS8.com
http://www.vocaldata.com

Veraz Networks Releases High Density Media Gateway

Veraz Networks, the new company formed through the merger of ECI Telecom's NGTS division and NexVerse, announced commercial availability of a new carrier-grade media gateway. The I-Gate 4000 PRO media gateway features a non-blocking switching platform that can support up to 64,000 ports on a single shelf. The high-density switching architecture is based on a 100,000 DS0 TDM switching fabric and a 20 Gbps packet switching fabric on each shelf. The gateway can serve both native TDM and hybrid TDM-VoIP switching environments. It can be deployed as part of an integrated packet telephony solution with Veraz's own ControlSwitch softswitch platform or in conjunction with third-party softswitch platforms. Support is provided for SS7 ISUP, ISDN-PRI and CAS trunking interfaces, enabling multiple carrier applications such as domestic & international long distance services, tandem switching, Class 4 switch replacement, PBX/PABX access via ISDN-PRI and static IP trunking. Veraz said the I-Gate 4000 PRO is currently in trials with multiple carriers with planned live deployments in Q2. Separately, Veraz Networks announced an industry partnership program aimed at solving integration and interoperability issues. Initial members of the Veraz Open Systems Alliance (VOSA) include BayPackets, Cognitronics, Convedia, IP Unity, Mediatrix, NetCentrex, NexTone, VocalData and XACCT Technologies.
http://www.veraznetworks.com

OFS and Sempra Install Fiber Through Active Natural Gas Pipes

The city of Long Beach, California will install OFS' DuctSaver FX cable through natural gas lines to provide fiber access to several buildings. The technology, created by Sempra Fiber Links, a subsidiary of Sempra Energy, allows for installation and operation of the fiber network inside a pipeline while gas is flowing, eliminating the need for street retrenching. OFS' DuctSaver FX is a 48-count fiber cable.
http://www.ofsoptics.com

Deutsche Telekom Selects ADC's Convergent Billing Software

Deutsche Telekom will implement ADC's Singl.eView convergent billing and customer-management solution to replace an existing IP data service billing system. The implementation is the result of a ten-year contract with Deutsche Telekom. ADC said the deal is its largest Singl.eView contract to date. Financial terms were not disclosed.
http://www.adc.com

National Public Radio Sees 8-fold Spike in Web Audio Casts

On the first day of the war with Iraq, National Public Radio (NPR) saw a record 8-fold increase in streamed audio from its website. The content delivery is being handled by Speedera Networks, which distributes the audio content across the Internet from streaming servers at multiple points of presence worldwide. NPR is a privately supported, nonprofit radio service with a weekly audience of 29 million Americans. Speedera has signed a number of leading media outlets for its content delivery network, including Forbes.com, Fox Broadcasting, Reuters, Univision, the Times of India (the world's largest English daily newspaper), Sony Music Entertainment and public radio stations such as KQED-FM in San Francisco and WBUR-FM in Boston.
http://www.npr.orghttp://www.speedera.com

Finisar to Acquire Genoa for Integrated Optical Components

Finisar will acquire Genoa, a start-up specializing in integrated optoelectronic components, for approximately seven million shares of Finisar common stock. The closing price of Finisar's Common Stock on 31-Mar-03 was $0.78 per share, giving the transaction an aggregate value of approximately $5.5 million. Genoa developed a line of linear semiconductor optical amplifiers (LSOAs) for amplifying DWDM wavelengths. As a byproduct of that technology, Genoa also developed a unique approach for making long wavelength vertical cavity emitting lasers (VCSELs). Genoa is based in Fremont, California.
http://www.finisar.com
http://www.genoa.com
  • Genoa was founded by Sol DiJaili and Jeff Walker, both of whom previously developed optoelectronic devices at Lawrence Livermore National Laboratory. Genoa raised $95 million in funding. Investors include August Capital, Bessemer Venture Partners, Global Crossing Ltd, Investor Growth Capital, Levensohn Capital, Meritech Capital Partners, Oak Investment Partners, and WorldCom Ventures.


  • In June 2002, Genoa announced a major restructuring of its business.


  • In March 2003, Genoa announced that NEC had integrated its second-generation, single-chip linear optical amplifier (LOA) into a 10 Gbps optical transponder module for long reach applications of up to 80 km. The transponder offers 20% less power consumption, 50% smaller size, and a significant cost reduction. Genoa's amplifier, which on its sub-mount is comparable in size to a grain of rice, also features a doubling in output power over first generation LOAs.

Siemens Bids to acquire Cycos for Unified Messaging Software

Siemens' Information and Communication Networks Group (ICN) made a cash offer of EUR 5.50 per share to acquire Cycos AG, a software company specializing in Unified Messaging solutions. The value of the offer will total some EUR42 million. Cycos' software makes possible the reception, output and administration of various types of electronic messages (e.g. voice mail, e-mail, fax and SMS) on different devices. Siemens and Cycos have been cooperating on such solutions for several years. For fiscal 2002, Cycos expects to report sales of EUR15 million. The company has 140 employees at locations in Alsdorf and Stuttgart, Germany, and in Paris, France.
http://www.siemens.com
http://www.cycos.de

Network Associates to Acquire IntruVert Networks for $100 Million

Network Associates agreed to acquire IntruVert Networks, a start-up offering intrusion detection systems, for $100 million in cash. IntruVert's real-time network intrusion detection technology integrates signature, anomaly, and Denial of Service (DoS) detection techniques on a hardware-based platform designed for multi-gigabit speeds. Network Associates said the IntruVert system is perfectly aligned with its vision of stopping any attack that gets inside the firewall. IntruVert's equipment has been deployed by enterprise customers such as Prudential Financial, HomeBanc Mortgage Corporation and California State University at Hayward, and government customers such as the United States House of Representatives.
http://www.networkassociates.com
  • In October 2002, IntruVert Networks raised $15.5 million in Series C financing for its intrusion detection systems (IDS) for large, distributed enterprise networks. IntruVert's IntruShield sensor appliances are capable of handling deep-packet inspection at up to 2 Gbps. The system is designed to accurately detect network attacks and instantly block them before damage is incurred. The new funding was led by Worldview Technology Partners, with ComVentures and Trinity Ventures also participating. IntruVert Networks has raised approximately $36 million in three rounds of financing.

Sprint Launches “Government Grade" IP Intranet

Sprint will soon turn up a new "government grade" IP intranet service aimed at meeting the increasing security and performance demands of many federal and state government agencies. The intranet service builds upon the standards and performance levels of Sprint's Tier-1 IP backbone, but has no gateways to the public Internet. Sprint believes it is the first to offer such a solution to meet government agency demands for a closed, native IP intranet. Sprint plans on introducing the new intranet solution before the end of June.
http://www.sprint.com

Viatel's CEO Resigns

Viatel announced the resignation of its Chairman and CEO, Michael J. Mahoney, after five years at the helm of the company. No reasons were given. Leslie Goodman, one of the Company's outside directors, has been named as non-executive Chairman. A search for a new CEO is underway.
http://www.viatel.com
  • Last month, Viatel acquired Netcom Internet Limited, an ISP focused on business customers in the UK, and Cybernet (Schweiz) AG, a Swiss ISP.


  • Viatel operates a multiduct, 7,000 km fiber network linking major European cities. Viatel emerged from bankruptcy protection in June 2002.

XM Reaches 483,000 Subscribers for Paid Satellite Radio

XM Satellite Radio has signed up 483,075 subscribers for its paid radio service. The company said it was encouraged by the subscriber growth in this premium service given the sluggish economy. XM hopes to have one million paid subscribers by the end of the year.
http://www.xmradio.com

Brazilian ISP Chooses Portal Software for its 11 Million Subscribers

iG, a Brazilian ISP with 11 million subscribers, has chosen Portal Software as its billing and customer care solution. iG will utilize Infranet, Portal's convergent billing product, to charge customers for DSL access and other premium services. iG recently announced an expansion into 52 new cities, giving it a presence in 280 Brazilian cities overall. Financial terms were not disclosed.
http://www.portal.com
http://www.ig.com.br

ITXC and AT&T Latin America Interconnect for Voice Services in Brazil

ITXC and AT&T Latin America signed an agreement to send traffic to and from Brazil over ITXC's global voice network. AT&T Latin America was granted a long distance license in December of 2002 to offer public and corporate voice services in Brazil. Interconnecting with ITXC allowed AT&T Latin America to provide international long distance services to their enterprise customers immediately after being granted their license. AT&T Latin America will also complete calls in Brazil that ITXC aggregates from carriers around the world. Citing figures from TeleGeography 2003, the companies said 35% of all VoIP cross-border voice calls in 2001 were destined for Latin America.
http://www.itxc.com
http://www.attla.com

AT&T Canada Emerges from Bankruptcy, CDN$4.7 Billion in Debt Removed

AT&T Canada completed its capital restructuring process and has emerged as an independent public company trading on both the Toronto Stock Exchange and NASDAQ Market System (TSX: TEL.A, TEL.B; NASDAQ: ATTC, ATTCZ). The company has no long-term debt and has approximately CDN$139 million in cash on hand. The bankruptcy process converted approximately CDN $4.7 billion in debt into new equity. AT&T Canada said its strategic plan is to focus on blue chip private and public sector customers. It will continue to partner with AT&T when it is in the customer's interest to do so, but would also find new international partners. The company plans to launch a new brand identity before September 2003.
http://www.attcanada.com

SBC Cuts Calling Rates in California

SBC announced new, lower priced calling plans for consumers and small businesses in California. Residential customers now can receive SBC Long Distance service for a flat 5 cents per minute, with no monthly fee, when bundled with local service. At the end of the one-year promotional period, the rate will change to 7 cents per minute. On the residential international calling front, the company has reduced prices of popular "buckets of minutes" plans to Mexico, added a new Asia "block of time" plan, and cut its International SaverPlus plan rate as well as the per-minute rates to the 30 most frequently called countries covered by the plan. For small- and mid-sized business customers, SBC is offering significantly discounted per-minute basic long distance rates for both in- and out-of-state calling depending on monthly spending and term commitments - such as 3.6 cents per minute with a $15 monthly spend and one-year term commitment.
http://www.sbc.com
  • SBC has signed up 1.3 million long distance customers in California in the first three months that it has been permitted to offer the service.

BellSouth Unveils Unlimited Local/Long Distance Calling Plan

BellSouth began offering a simple, unlimited local and domestic long distance bundle at a flat monthly fee ranging from $54.99 to $59.99 per month (depending on state). The BellSouth Unlimited Answers plan also provides almost two dozen features. BellSouth is also launching a mass advertising and marketing campaign to promote the flat-rate service.
http://www.bellsouth.com

New Edge Networks Pursues Acquisitions of Broadband Carriers

New Edge Networks is pursuing the acquisition of additional broadband carriers and data networking providers as a means of adding to its cash flow growth. The company placed classified ads in various telecommunications trade magazines and posted messages on Internet bulletin boards soliciting interest among communications companies that could add customers, network traffic, product set, or geographic reach. New Edge Networks primarily provides data and broadband services to business customers.
http://www.newedgenetworks.com
  • Last year, New Edge Networks acquired the commercial division of @Home Corp. in a bankruptcy sale as well as hundreds of business data customers from Cable & Wireless.


  • New Edge Networks raised nearly $400 million in invested capital since it was formed in June 1999 and began commercial operations in early 2000. Financial backers include Goldman Sachs & Co., Accel Partners, Crosspoint Ventures, and Greylock.


  • For 2002, New Edge Networks said its revenues almost tripled to $60.4 million from $21.2 million in 2001. Revenues for 2003 are expected to exceed $100 million. The company's current debt is $38 million.

Korea's ETRI Selects Ezchip's Network Processor

ETRI, the Electronics and Telecommunications Research Institute of Korea, is using EZchip Technologies' NP-1 network processor in the design of future communications platforms. Korea's government funded research lab will become a third-party design house for solutions based on EZchip's family of network processors. Ezchip's NP-1 processor incorporates extensive headroom for on-chip classification, requires only four low-power, low-cost DRAM chips instead of CAMs and SRAMs. NP-1c is EZchip's second generation 10-Gigabit network processor manufactured with IBM's leading CU-11 0.11 micron process.
http://www.etri.re.krhttp://www.ezchip.com

Santera Teams with Spatial Wireless for Mobile Switching

Santera Systems announced a partnership and non-exclusive OEM agreement with Spatial Wireless, a developer of next-generation wireless networking solutions. Spatial Wireless will incorporate Santera's SanteraOne Media Gateway into its Spatial Atrium distributed mobile switching portfolio. The SanteraOne Broadband Office Exchange (BoX) Media Gateway supports both voice and data services. Spatial Atrium is a distributed architecture call server, media gateway and element management system that supports Distributed Mobile Switching Center (DMSC) solutions as well as network overlay deployments for distributed Gateway MSC and network services solutions. The integrated solution is a multi-protocol switch capable of supporting GSM, CDMA, UMTS and GSM1x signaling interfaces and access networks.
http://www.santera.com
http://www.spatialwireless.com

Sunday, March 30, 2003

Ikanos Hires CFO from Centillium Communications

Ikanos Communications announced the appointment of John Luhtala as CFO. He previously served as CFO of Centillium Communications. Both companies provide silicon solutions for the broadband access market.
http://www.ikanos.com

ITXC Searches for New CEO

ITXC announced that Tom Evslin, who has held the post of Chairman and CEO since he co-founded the company in 1997, plans to retire this year as CEO. ITXC is searching for a replacement. Evslin said he is proud of the difference that communication infrastructure can make in the developing world and now wants to spend more time working in the public service sector.
http://www.itxc.com

Silverback Raises $15 Million for IP-based Storage Technology

Silverback Systems, a start-up based in Campbell, California, raised $15 million in third round funding. The company is developing IP-centric networked storage acceleration technology. Silverback's iSNAP (Storage Network Access Processor) is a turnkey hardware and software platform that can be deployed in any equipment that connects to a storage network including servers, host bus adapters, RAID arrays, NAS appliances, storage gateways, and virtualization boxes. All previous investors, which include Excelsior Venture Partners III LLC, Gemini Israel Fund, JP Morgan Partners, Newbury Ventures and Pitango Venture Capital, participated in the new round. To date, Silverback has raised $32.3 million in total funding.
http://www.silverbacksystems.com
  • Silverback Systems was founded in July 2000. In addition to its headquarters in Campbell, California, the company operates a design center in Rochester, Minnesota.

HP Selects Broadcom for 802.11g WLAN in Laptops

HP will offer Broadcom's 54g wireless LAN mini-PCI solutions in its Compaq Presario 2100 and 2500 series notebook computers. The wireless LAN capabilities, which are compatible with the IEEE 802.11g draft specification, are available as optional upgrades in the notebooks.
http://www.hp.com
http://www.broadcom.com
  • Earlier this month, Broadcom announced that it had shipped more than three million 54g wireless LAN chips since production started in December 2002.

Morpho Demonstrates 3G Software Defined Radio in Silicon

Morpho Technologies, a start-up based in Irvine, California, demonstrated a software-define 3G baseband processor running on its reconfigurable Digital Signal Processor. Morpho Technologies' MS1 rDSP implements the baseband functions of a WCDMA Transceiver for handsets and infrastructure equipment while simultaneously running applications such as MPEG4, GPS, 802.11, as well as others. The MS1 rDSP executes these applications by running programs residing in flash memory outside the chip. Morpho said its architecture enables 3G handsets to easily adapt "on-the-fly" regardless of native standards.
http://www.morphotech.com
  • In October 2002, Motorola made an equity investment in Morpho Technologies.

Developers Focus on 1394-GigE Links Over Cat5 Wiring for Audio-Video Transport

A new study group from the 1394 Trade Association and the IEEE has been formed to develop standards for IEEE 1394b links over up to 100 meters of Category 5 wiring using existing Gigabit Ethernet (1000base T) physical layer technology. The group is considering using standard hub or switch technology to construct a basic hub that connects all endpoints and automatically senses the physical protocol (either Ethernet or IEEE 1394) used by the endpoint device. The hub also bridges the Ethernet and the IEEE 1394 segments so that Internet protocol devices seamlessly perceive each other as connected to the same subnet. For the end user, the objective is to have a single RJ-45 socket labeled as "network" that works for any kind of connection. (For more information, contact Peter Johansson, chair of the 1394 Trade Association's Architecture Work Group, at PJohansson@ACM.org)

Metalink Releases Firmware Upgrade for its Fast-EoVDSL Chipsets

Metalink released a Fast-EoVDSL firmware upgrade for its EoVDSL chip-sets, enabling faster data rates and compliance with the ITU standard 998 band-plan. The new firmware enables bit rates of 60 Mbps downstream and 40 Mbps upstream. The Metalink technology is based on VDSL QAM standards specifications. Metalink said it has already shipped over 150,000 of its EoVDSL chip-sets for deployment, primarily in Asia.
http://www.metalinkdsl.com

Agilent Announces 32,000-Stream Packet Generation and Test System

Agilent Technologies introduced its new packet generation and performance analysis system capable of testing some 32,000 streams. The Agilent system allows users to create virtually any type of Layer 2 to Layer 7 test packet or frame, and apply any type of network encapsulation to it, including L2oMPLS, L2TP, GRE, VLAN, Frame Relay and PPP encapsulations. This permits developers to test equipment response and performance at any point in a test network with an appropriate frame or packet structure. Stream groups can be defined to rapidly create hundreds or thousands of streams of user-defined packets. Agilent is also introducing new cards for Gigabit Ethernet and 10 Gigabit UniPHY.
http://www.agilent.com/comms/RouterTester

Spirent Introduces Portable Web Infrastructure Test Platform

Spirent Communications introduced portable versions of its Avalanche 2200 and Reflector 2200 systems, which are used for stress testing web infrastructure. The new, portable Avalanche 220 simulates a large number of users and supports numerous Layer 4-7 features, such as real-world error injection, multiple link speeds, multiple simultaneous user scenarios, HTML forms fill-in, configurable browser type, cookies and dynamic session identifier support. The unit supports more than 6,000 connections per second, 60,000 open TCP connections from a custom TCP/IP stack, 600 new SSL connections per second, and in excess of 140 Mbps of traffic. The Reflector 220, a complementary product, is a highly portable, flexible, and cost-effective way to simulate complex multi-protocol, multi-tier dynamic Web sites.
http://www.spirentcom.com/L4-7

Spirent Debuts Integrated VoIP and PSTN Test System

Spirent Communications introduced a new Abacus3 system for both VoIP and traditional telephony testing. Specifically, Abacus3 tests analog, TDM, ISDN, VoIP and video devices and networks. It provides accurate measurements with synchronization between the VoIP and PSTN sides of the network, enabling testing of stand-alone gateways and sub-networks. Abacus3 tests the capacity, functionality, performance, quality of service, and interoperability of IP phones and PBXs; proxy and registration servers; Internetworking gateways; DNS and application servers; call accounting, voice messaging, and conferencing servers; switches and routers; media gateways; signaling gateways; and media gateway controllers (softswitches). It supports all the major VoIP protocols, including SIP, MGCP, H.323 and Megaco. It also supports real-time voice quality measurements using PESQ and PSQM.
http://www.spirentcom.com

SS8 Announces Unified Messaging Server

SS8 Networks introduced a Unified Messaging Server designed for traditional TDM and next-generation IP networks. The ServiceController 3100 contains more than 200 distinct features and also supports 300+ call-flow options in more than 14 languages, 20 dialects and 40 different prompt sets. The unified messaging server offers open APIs and ties into VoIP, VoiceXML, Text-to-Speech (TTS) and Automatic Speech Recognition (ASR) applications.
http://www.SS8.com

Vocaltec and AudioCodes Announce Packet Voice Alliance

VocalTec Communications and AudioCodes announced a joint packet voice solution based on the integration of AudioCodes' Mediant family of media gateways for wireline applications with VocalTec's recently announced Essentra SIP-based softswitch architecture. The joint solution targets international long distance (ILD) and national long distance (NLD) markets. In addition to technical integration, the alliance includes joint marketing activities. AudioCodes' carrier-grade media gateways provide a variety of media processing capabilities, PSTN interfaces, signaling, control protocols and codecs that meet the needs of long distance trunking and value added services (e.g., IP Centrex) markets.
http://www.vocaltec.com
http://www.audiocodes.com
  • Last month, VocalTec Communications introduced its “Essentra�? SIP-based softswitch architecture for the international long distance (ILD) and national long distance (NLD) markets. VocalTec's Essentra platform integrates high-density media gateways, delivers SIP-based services (such as IP Centrex), and supports legacy PSTN and H.323 networks. The architecture uses a unique SIP-based service integration layer that is transparent to the call control layer and is responsible for maintaining all service and routing logic. Essentra's distributed architecture utilizes advanced fail-over and redundancy mechanisms and runs on Sun Netra servers with Solaris operating systems. The platform is able to integrate with the PSTN using VocalTec's global SS7 connectivity technology. Protocol support also includes interworking for MGCP, MEGACO/H.248, SIP, SIP-T, H.323, SS7, PRI, IUA and SIGTRAN.

Sylantro Cites Progress in Wholesale Model in IP Centrex

Sylantro Systems, a start-up providing IP Centrex platforms, said 15 service providers around the world have adopted its application feature servers. Sylantro's direct customers, such as TeliaSonera, sell IP Centrex services to business users directly, as opposed to merely providing IP trunking to existing premise-based phone systems. Sylantro's OEM and indirect customers, such as GoBeam, Telverse and others, resell Sylantro-powered services under their private label.
http://www.sylantro.com

Vonage Traffic Reaches One Million Broadband Calls Weekly Over SIP Network

Vonage is now handling about one million calls weekly over its nationwide SIP network from its 20,000 broadband telephony subscribers. The dynamicsoft-powered Vonage network has now completed over 15 million calls. The Vonage service provides cable modem or DSL users with unlimited local and long distance calling, including call waiting, call forwarding and voicemail, for a flat fee.
http://www.vonage.com
http://www.dynamicsoft.com

Neopolitan Networks Selects Switch and Data

Neopolitan Networks, a Gigabit Ethernet service provider headquartered in Palo Alto, California, selected Switch and Data to provide interconnection and colocation services in Miami, Florida. Financial terms were not disclosed.
http://www.switchanddata.com
http://www.neopolitan.com
  • In March 2003, Switch and Data announced that it acquired the assets of PAIX.net, a leading Internet peering exchange provider with facilities in Atlanta, Dallas, New York, Palo Alto, Seattle, and Vienna, Virginia. Switch and Data's acquisition is inclusive of all PAIX sites. Financial terms were not disclosed. Switch and Data also provides neutral interconnection and colocation services in the US. Switch and Data, founded in 1997, is headquartered in Tampa, Florida.

FLAG Telecom Doubles Capacity of Key Segments of Europe-Asia Cable

FLAG Telecom announced a capacity expansion to key segments of its cable system Western Europe and Japan through the Middle East, India, Southeast Asia and China. This upgrade will double the system's capacity on key segments from the U.K. to the Middle East (from 10 Gbps to 20 Gbps). Fujitsu is providing the DWDM equipment for the project. The companies anticipate that the cable systems original 10 Gbps will ultimately be upgraded to 80 Gbps.
http://www.fujitsu.com
http://www.flagtelecom.com

America Online Launches AOL For Broadband

America Online has refined its "Bring Your Own Access" (BYOA) broadband service to include a greater variety of video content, including material from ABC News, MLB.com, and Univision. An extensive "AOL for Broadband" marketing campaign is planned. The service is available to consumers nationwide over any DSL, cable modem or other broadband connection. Currently, approximately 2.7 million U.S. AOL members use the AOL for Broadband service despite little marketing to date for broadband and none for the "bring your own access" option. Existing AOL dial-up members can upgrade to a BYOA broadband subscription that includes five hours of monthly dial-up connectivity for $9.95 per month. After the end of the year, pricing will increase to the standard price of $14.95. New members will be offered a 45-day free trial, followed by one month at $9.95 before rolling to the standard price of $14.95.
http://www.aol.com
  • Last month, Yahoo! Introduced a premium online video and audio service featuring branded programming from leading entertainment, sports and news providers for both broadband and narrowband consumers. Yahoo! Platinum rich media content is delivered in 56K, 100K and 300K bit rate streams. At launch, for $9.95 per month, Yahoo! Platinum programming includes: CBS' Survivor Insider, Fox's "American Idol," ABC News, CBS MarketWatch, The Weather Channel, "NASCAR Races to Go," "NASCAR Race Day Audio," and "Best of NASCAR" audio and video. A $16.95 per month package with additional sports programming is also available.


  • In Q4 2002, RealNetworks' consumer subscription audio/video service reached over 900,000 paying subscribers.

Nortel Networks Launches WLAN Portfolio

Nortel Networks launched a portfolio of WLAN products for both enterprises and carriers. The company said its WLAN solutions target secure access to voice and data services, like email, voicemail and unified messaging. The line-up includes four core products:

  • Nortel Networks WLAN Security Switch 2250, which provides security management services, such as privileged-based access and unauthorized access detection, as well as centralized control to protect and manage mobile communications over WLANs. It also provides additional load balancing capability.


  • Nortel Networks WLAN Access Point 2220, an access point featuring dual image support for operational and default settings to enable emergency repairs in hotspot deployments to be delayed until convenient. It also offers a WLAN hotspot feature set, dual-mode radio signaling and seamless IP roaming across different domains, including dual mode roaming between the 802.11a and b standards.


  • Nortel Networks WLAN Mobile Voice Client i2050, which supports wireless IP telephony calls for pocket PCs.


  • Nortel Networks WLAN Mobile Adapter 2201, a Cardbus adapter supporting both 802.11a and 802.11b standards.


Nortel Networks said these products could be combined with its existing Contivity, Passport, Shasta, Succession and Univity IP platforms.
http://www.nortelnetworks.com

AT&T Certifies Avaya and Cisco Gear for its VoIP Service

AT&T Labs has certified Avaya's IP Telephony servers, gateways and MultiVantage software for interoperability with the AT&T network to make the Avaya IP Telephony solution compatible with AT&T's suite of VoIP services. Separately, AT&T Labs certified interoperability between Cisco IP Telephony solutions enabled by AVVID (Architecture for Voice, Video and Integrated Data) with the AT&T network and AT&T's suite of VoIP services. AT&T's VoIP services include interconnection over managed ATM, frame relay, IP, and global on-net/off-net calling. AT&T said its VoIP services would also continue to support PBX systems based on TDM.
http://www.att.com

Cisco Launches Next Generation Catalyst 6500 and 10 GigE Modules

Cisco Systems introduced new high-performance interfaces and functionality modules for its Catalyst 6500 Series multiplayer Switch, including a new Cisco Catalyst 6500 Supervisor Engine 720, two-port and four-port 10 Gigabit Ethernet modules, and two 48-port 10/100/1000 Ethernet modules. The Catalyst 6500, also known as Constellation 2, is deployed in many large enterprise networks, as well as a number of metro service providers such as Bredbandsbolaget (B2).


The new supervisor engine is based on an integrated 720 Gbps switch fabric, and scales Cisco Catalyst 6500 performance to 400 million packets per second (Mbps) for IPv4. The Catalyst 6500 Supervisor Engine 720 enables system port densities to be increased and additional service modules to be installed. The new supervisor engine also accelerates IPv6, MPLS, NAT, and General Routing Encapsulation in hardware. It also supports existing Catalyst interface and network services modules.


New Cisco Globally Resilient IP (GRIP) features in the supervisor engine include Virtual Router Redundancy Protocol and Gateway Load Balancing Protocol which enable administrators to load-balance network traffic across traditionally inactive redundant routers or switches and utilize inactive backup links.


A Time Domain Reflectometer (TDR), integrated into the new 48-port 10/100/1000 modules, can detect cable failures. The new modules are also the first 10/100/1000 modules with support for a field-upgradeable in-line power daughter card.


The 4-port 10 Gigabit Ethernet module enables up to 32 10 Gigabit Ethernet ports and can be consolidated in a single chassis, featuring 40 Gbps per slot connections to the 720 Gbps switch fabric. The module uses Xenpak modular optics.


The 2-port 10 Gigabit Ethernet module features 150 millisecond buffers and advanced traffic-shaping capabilities to mitigate network congestion. The module also features 40 Gbps per slot connections to the 720 Gbps switch fabric. Up to 16 10 Gigabit Ethernet ports per chassis can be deployed. It also uses Xenpak modular optics.


Cisco said the new Catalyst 6500 capabilities would enable metro/long-haul service providers to replace SONET infrastructure. It is also suitable for enterprises seeking to migrate to 10 Gigabit Ethernet.
http://www.cisco.com

Dynegy Sells North American Communications Operations to 360networks

360networks has agreed to acquire Dynegy's North American communications business, which includes a network spanning more than 16,000 route miles and access points in 44 U.S. cities. 360networks will assume Dynegy's existing customer base of 65 wholesale customers, its remaining fiber leases and its co-location facilities. The companies expect the transaction to close in April 2003, pending regulatory and other approvals. Financial terms were not disclosed. Dynegy said that the sale represents the final step in its exit from communications, a business that it entered in August 2000. Dynegy Inc. owns operating divisions engaged in power generation, natural gas liquids and regulated energy delivery.
http://www.360.net
  • In July 2002, Dynegy wrote-off its investment in the communications business with a charge of $212 million to its Dynegy Global Communications division.


  • In January 2003, Dynegy sold its European communications business to a division of Klesch & Company.


  • The Dynegy backbone uses Tellium's optical switches and Fujitsu's top-of-the-line DWDM platform.


  • 360networks emerged from Chapter 11 protection in the US and CCAA protection in Canada in November 2002. The company's optical mesh fiber network currently spans 33,000 miles (53,000 kilometers) and reaches 60 major cities in Canada and the United States.

Cablevision Deploys Internet Photonics' Optical Ethernet / 10 Gbps DWDM

Cablevision is deploying Internet Photonics' Photonics' LightStack MX and LightHandler optical Ethernet and WDM transport platform as key elements of its video on-demand network rollout. The LightStack MX is a 10 Gbps platform that can multiplex up to eight GbE services onto a single 10 Gbps wavelength. The LightHandler is an all-optical, passive DWDM management platform that can be added to existing SONET networks to add up to 320 Gbps of capacity. The equipment is used to provide a 10 Gbps DWDM optical transport infrastructure between Cablevision's content headend and the remote distribution hubs that connect to customers. Installation is already complete in Cablevision networks in New Jersey, eastern Long Island, and the New York -- Connecticut region. Financial terms were not disclosed.
http://www.internetphotonics.com

Internet Photonics Launches Metro Aggregation and Switching Platform

Internet Photonics introduced a new LightStack Gigabit Services Line Access Multiplexer (GSLAM) designed to aggregate, switch and multiplex multiple services (including managed services) in major cable headends or service provider POPs. The new GLSAM platform, which complements existing LightStack products for remote hub sites or premises, scales to handle 64 Gigabit Ethernet connections. The platform uses Internet Photonics' "SONET WrapAround" capability in order to preserve existing traffic on a ring without interrupting the service. Optical Ethernet services are inserted onto the fiber using different wavelengths so as not to disrupt the existing traffic. The LightStack also features a VirtualWire capability by which eight GbE services, each with its own circuit-like sub-channel, are multiplexed onto a single 10 Gbps wavelength. Internet Photonics said the LightStack GSLAM is already deployed in a "top five" cable operator network and is in trials with another operator.
http://www.internetphotonics.com
  • In July 2002, Internet Photonics closed $31 million in third round venture financing for its optical Ethernet platform. The new funding was led by ComVentures and included TeleSoft Partners as well as previous investors Sprout Group and New Venture Partners LLC. Internet Photonics has raised $63M since its inception in October of 2000.


  • Internet Photonics is headed by Gregory Koss, who was previously CEO of Sonoma Systems, a developer of ATM access equipment that was acquired by Nortel Networks in 2000. Its technical team is led by Dr. Martin Nuss, who was previously the Director of the Optical Data Networks Research Department at Lucent Technologies.

WaveSmith Networks Debuts Larger Multiservice Switch, Adds MPLS Support

WaveSmith Networks announced three additions to its Distributed Node (DN) multiservice switching platform: MPLS support, a new Multiservice Forwarding Module and a higher capacity switch for larger central office (CO) deployments. WaveSmith's multiservice switches are aimed at enhancing existing Layer 2 networks, especially applications such as DSL aggregation, Frame Relay interworking and ATM switching.

  • The new MPLS functionality, which is a software addition available on the DN's new Multiservice Forwarding Module as well as the company's original packet forwarding module, provides a means of transporting Layer 2 services over an MPLS backbone. Both modules also support existing native Frame Relay, ATM, and circuit emulations services (CES). The MPLS software adds support for ATM-MPLS interworking, Martini encapsulation, OSPF (RFC 2328), and LDP/traffic engineering. This enables the WaveSmith switches to function as an MPLS label edge router scalable to 32,000 LSPs.



  • The new Multiservice Forwarding Module (MSFM) adds support for POS on OC-3/STM-1, OC-12/STM-4 and OC-48/STM-16 , as well as Gigabit Ethernet interfaces. In addition to OC-48 line rate switching, the MSFM supports up to 128,000 virtual circuits per module.



  • WaveSmith's newest switch, the DN 8100, provides 40 Gbps of switch capacity for handling up to 16 fully-protected OC-48s while supporting more than 2 million fully-protected virtual circuits -- a key capability needed for DSL aggregation. The DN 8100 provides a port density of over 750 DS-3s and more than 250 OC-3 ports in a form factor measuring 44" in height (25RU). The platform is in-service software upgradeable/downgradeable and offers hot-swappable modules.



WaveSmith said its new high-density switch combined with MPLS capabilities provides carriers with a "Cap & Grow" strategy for their existing Layer 2 networks.
http://www.wavesmithnetworks.com
  • Last week, Wavesmith Networks announced a major contract with SBC, which is deploying WaveSmith Networks' DN 7100 multiservice switch to provide DSL aggregation across 200 sites nationwide. The multiyear, multimillion-dollar contract is the largest announced to date by WaveSmith.


  • In November 2002, WaveSmith Networks named Thomas Burkardt as its new Chairman and CEO, succeeding founding President and CEO, Robert Dalias. Prior to joining WaveSmith, Burkardt was chief operating officer and executive vice president of Unisphere Networks, which was acquired by Juniper Networks. Before Unisphere, he was co-founder and president of Castle Networks


  • In October 2002, WaveSmith closed $30 million in third round financing for its DN multiservice switching product family. WaveSmith has raised $84.5 million to date.

Thursday, March 27, 2003

Global Crossing Reports Monthly Revenue of $236 million

In a monthly report required by the U.S. Bankruptcy Court for the Southern District of New York, Global Crossing reported consolidated revenue of approximately $236 million for January. Consolidated access and maintenance costs were reported as $181 million, while other operating expenses were $66 million. There was a consolidated net loss of $93 million for the month. Consolidated EBITDA was posted at a loss of $11 million. Global Crossing said it has begun to increase its sales force again with the expectation this will contribute favorably to top line growth.
http://www.globalcrossing.com

Japan's IIJ and PoweredCom Discontinue Merger Talks

Internet Initiative Japan (IIJ), Crosswave Communications, and PoweredCom have not reached an agreement on the potential integration of their businesses. In July 2002, the parties announced that they were exploring the possibility of merging. However, talks to this point have not been fruitful. The companies said they would continue to discuss ways of cooperating. IIJ operates one of the largest Internet backbones in Japan. Crosswave, which was formed in 1998 by IIJ, Sony and Toyota, operates a fiber network across Japan dedicated to data traffic. PoweredCom, which is a 32% owned affiliate of Tokyo Electric Power Company, provides data communications utilizing a 200,000 km nationwide fiber network owned and operated by PNJ Group, a consortium of ten regional electric power companies.
http://www.iij.ad.jphttp://www.cwc.co.jp

GSM Association Responds to Congressman Issa on Iraq

In response to Congressman Darrell Issa's request that the U.S. Armed Forces should adopt CDMA as the mobile standard for rebuilding post-war Iraq, Rob Conway, who heads the GSM Association, said the political pressure is "as ill-timed as it is misinformed." Conway pointed out that GSM is an open, worldwide standard (not a French or European standard) and GSM currently accounts for 72% of the world market. He also noted that GSM is already deployed in every country of the Middle East region (and has over 60 million customers), while CDMA is not deployed in single nation.
http://www.gsmworld.com

Enterasys Reports Q4 Revenue of $121 Million

Enterasys Networks reported Q4 revenue of $121.2 million, compared with net revenue of $122.7 million for Q3 2002. Net loss for the quarter was $30.6 million, or $0.15 per share. The company generated $34.5 million of cash from its Q4 operating activities, and ended fiscal year 2002 with $313.3 million of cash and marketable securities. Gross margin for the quarter was 35%, compared to a gross margin of 48% in Q3 2002. The fourth quarter decline in gross margin was due to a $17.6 million provision related to excess and obsolete inventory, which reduced gross margin by approximately 14.5%. William K. O'Brien, the company's CEO, said the focus in 2002 was on rightsizing the business, but that 2003 goals target modest revenue growth, market share gains, sustainable cash flow from operations, and profitability in Q4.
http://www.enterasys.com/corporate/ir/

SBC Raises its Regular Dividend by 5%

The board of directors of SBC Communications approved a 4.6% increase in its quarterly dividend from 27 cents to 28.25 cents a share, or 5 cents per share on an annual basis, from $1.08 to $1.13. The board also declared an additional one-time dividend of 5 cents per share, payable at the same time as the quarterly dividend. Edward E. Whitacre Jr., SBC chairman and CEO, noted that the company has raised its dividend every year in its history. In 2002, SBC paid its shareowners $3.6 billion in dividends. SBC had approximately 3.3 billion shares outstanding as of 28-February-2003.
http://www.sbc.com

Mpower Narrows Focus on Certain Markets

Mpower Communications, a facilities-based competitive carrier that emerged from Chapter 11 last year, closed the sale of its networks in Texas to Xpedius. On March 18, Mpower closed the sale of its operations in Ohio and Michigan to LDMI Telecommunications. Mpower also expects to close the sale of its Florida and Georgia markets to Florida Digital Networks by the end of April. The sales are part of the company's plan to eliminate nearly all of its long-term debt and concentrate its ongoing operations in Los Angeles, San Diego, Las Vegas, Northern California and Chicago. Also, Mpower reported $38.0 million in revenue from continuing operations for Q4 2002, a 3.0% increase over Q3 2002 and a 19.3% increase over the previous year. Mpower's EBITDA loss from continuing operations in Q4 2002 was $5.4 million Also, Mpower's new auditor, Deloitte & Touche, has re-audited the company's financial statements for 2000 and 2001 and found that no adjustments to the statements are necessary.
http://www.mpowercom.com

Focal Files Amended Chapter 11 Reorganization Plan

Focal Communications, a CLEC serving 23 top U.S. markets, filed an amended reorganization plan with the bankruptcy court. As previously announced, Focal already has agreements in place to exchange approximately $110 million of its senior secured convertible notes into preferred equity, and has prepaid $15 million under its senior secured bank credit facility as part of its pre-negotiated Chapter 11 filing. The amended filing reflects an agreement in principal on the basic economic terms between the senior secured convertible noteholders and the Official Committee of Unsecured Creditors. The plan, if confirmed, will eliminate approximately $375 million of debt. Moving forward, Focal intends to maintain its presence in all of its 23 markets and to continue to offer all of its current voice and data services, with the exception of its DSL service.
http://www.focal.com

Broadband Physics Awarded Patent for Sub-band Division Multiplexing

Broadband Physics, a fables semiconductor start-up based in Cupertino, California, was awarded a U.S. patent entitled "Method and Apparatus for Signal Transmission And Reception" for its novel approach of using wavelet mathematics for Sub-band Division Multiplexing, a new digital signal transmission 'modulation' method. The company said Sub-band Division Multiplexing (SDM) is suited for select physical environments that either need to "mine" more digital capacity from existing last mile networks. Examples include 180+Mbps digital channel speeds over cable networks, for the same costs as today's 30Mbps digital channels; or where dynamic software controlled use of RF passpands, notches, power, and digital capacity flexibility is needed to meet many different provisioning scenarios or changing environments, such as power line communications, select twisted pair applications, wireless, and potential future Ultra Wide Band (UWB) scenarios.
http://www.broadbandphysics.com

Microsoft's Windows Media 9 Servers Deliver 300 Terabytes of Streaming Audio/Video

Microsoft Windows Media 9 streaming servers around the world have collectively delivered 300 terabytes of streaming audio and video. Microsoft said major customers using Windows Media 9 Series and Windows Server 2003 include:

  • CinemaNow, which is offering some 3,000 feature-length films. The site claims more that one million unique users per month.


  • Fox's American Idol site, which got more than 6.5 million page views in the first two days after its debut in January. Its content is hosted by Speedera.


  • FullAudio, a digital music subscription service with more than 200,000 songs from the five major labels. Its content is hosted by Akamai.


  • pressplay, another digital music service


  • MSNBC.com, which has delivered 125 million video streams using Windows Media 9 since last summer.


  • NHL.com, which offers a subscription video service for hockey games. Content is hosted by Speedera and Nine Systems
http://www.microsoft.com/presspass/

Wednesday, March 26, 2003

Lucent Agrees to Settle Shareowner Class Action Lawsuits

Lucent Technologies reached an agreement to settle all pending shareowner and related litigation against the company, its current and former officers and directors, and certain other defendants. Lucent described the agreement as a global settlement of what were 54 separate lawsuits. Under the agreement, Lucent will pay $315 million in common stock, cash or a combination of both, at the company's option. Lucent will also seek partial recovery of this amount from its fiduciary insurance carriers under certain policies that are worth up to $70 million. Further financial terms are posted online.
http://www.lucent.com/press/0303/030327.coa.html

Riverstone Reports Revenues of $15 Million, Net Loss of $41 Million

Riverstone Networks reported revenues of $15.1 million for the quarter ended 01-March-2003, a sequential increase of 9.7% over revenues of $13.8 million in the prior quarter, but down from $51.3 million from the same period in the prior year. GAAP net loss for the fourth quarter was $40.6 million or $0.33 per share, including a $1.3 million stock-based compensation charge, a restructuring charge of $1.2 million, impairment charges of $7.4 million related to investments in privately-held companies, a $5.1 million inventory charge associated with discontinued and excess products, a $4.5 million charge related to a customer lease guarantee, and amortization of intangibles related to the purchase of Pipal Systems of $869,000.http://ir.riverstonenet.com

Broadwing Reports Positive Cash Flow in Q4, Initiates Recapitalization

Broadwing reported Q4 revenue of $503 million, an 8 percent decline over the same period in 2001. While the company's Cincinnati Bell businesses grew 4 percent, the revenue decline was due to weakness in its Broadwing Communications operations. In the quarter, the company announced an asset impairment charge due to the exit of its Broadwing Communications business. This non-cash charge produced an operating loss of $2.2 billion for the quarter. On a per share basis, the loss from continuing operations was $10.92, versus a loss of $0.95 per share for the same period last year. Additionally, the company produced $30 million of positive cash flow in the fourth quarter, its second consecutive quarter of positive cash flow. Broadwing also announced a recapitalization that includes the successful completion of an amendment to its bank credit facility for, among other things, extension of its scheduled maturities. The company said the recapitalization provides it with sufficient liquidity to meet its obligations until 2006.
http://www.broadwing.com

SR Telecom to Acquire Netro for Fixed Wireless

SR Telecom agreed to acquire Netro Corporation for approximately US$121 million, which represents a premium of 28% to Netro's closing stock price of US$2.43 on 26-March-2003. Both companies are suppliers of carrier-class fixed wireless access solutions. SR Telecom said the merger would increase its addressable market in urban markets with licensed frequencies in the low (1.9-3.5 GHz) and the high (10-39 GHz) bands. The deal includes Netro's next generation 3.5 GHz Angel product, which benefited from hundreds of millions in development dollars, as well as Netro's AirStar fixed broadband access solution. SR Telecom supplies TDMA Point-to-Multipoint (PMP) Fixed Wireless Access solutions. Netro stockholders will receive total consideration of approximately US$3.11 per share, based on SR Telecom's closing price of C$0.75 per share as of March 26, 2003. Following the transaction, Netro stockholders will own approximately 43% of SR Telecom's common shares.
http://www.srtelecom.com
  • Netro's Angel product is a non-line-of- sight system using Orthogonal Frequency Division Multiplexing (OFDM) to deliver voice and/or data services in the 1.9, 2.3, and 3.5 GHz bands.


  • In November 2002, Netro retained Goldman, Sachs & Co. as its financial advisor and said it would review its strategic alternatives in light of the continuing telecom downturn. Netro received an offer from Wyndcrest Holdings, LLC of Palm Beach, Florida to purchase all of the outstanding shares of Netro for $158.5 million "less an amount in reserve as necessary to shut down operations and arrange for the preservation and/or sale of the Company's technology," plus a 25% interest in the continuing company.

Pagoo Announces Hosting Agreement With XO for its Internet Voice Mail

Pagoo, a provider of Internet voice mail services, is hosting its application server in XO Communications' data centers. Pagoo claims 40,000 customers for its Internet Voice Mail service. Subscribers can customize their Web-based voice mail player, set-up personal greetings, define their notification options, and store and organize voice messages similar to how they manage email. Voice messages can also be forwarded to email or via SMS text messaging.
http://www.pagoo.com

US Congressman Lobbies for CDMA in Post-war Iraq

U.S. Congressman Darrell Issa (R-CA) issued a public letter to Secretary of Defense Donald Rumsfeld and U.S.AID Administrator, Ambassador Wendy Chamberlain, urging the U.S. Armed Forces not to deploy a mobile phone network in post-war Iraq based on GSM. The mobile communications network presumably would be operated by the U.S. Reconstruction and Civil Affairs Office for some time after the end of hostilities and then privatized. Congressman Issa is proposing CDMA technology for political and technical reasons. Issa represents California's 49th congressional district, which includes parts of San Diego county, home of Qualcomm.
http://www.issa.house.gov/newsroom_press_detail.asp?serial=100&page=newsroom

Verizon Expands Coverage with Nortel's CDMA2000 1X Gear

Verizon Wireless, the largest wireless service provider in the United States, is currently deploying CDMA2000 1X wireless voice and data network infrastructure equipment from Nortel Networks in Georgia and Alabama, markets recently acquired from Price Communications. The deployment includes Nortel Networks Univity CDMA2000 1X Metro Cell radio base station equipment, mobile switches and related infrastructure for expansion of Verizon Wireless' wireless data network. Verizon's Express wireless data network is now available in 900 cities across the US.
http://www.nortelnetworks.com

Kagoor Networks Delivers VoiceFlow Network Aggregation

Kagoor Networks released its newest VoIP border control application, VoiceFlow Network Aggregation, to address the growing use of network-based VPNs and VLANs by VoIP service providers to aggregate and subsequently deliver VoIP network services. The new application for the carrier-side VoiceFlow 3000 platform handles a variety of security and NAT issues faced when delivering VoIP traffic at network aggregation points in conjunction with VPN network deployments.
http://www.kagoor.com

OFS Introduces New Specialty Photonics Products

OFS introduced a series of specialty fibers designed for use in both telecom and non-telecom applications in a variety of industries, including medicine, defense, telecom, aerospace, geophysical, acoustic and sensor applications. The OFS ClearLite Micro Photonic Fibers offer 80-micron micro-cladding diameters to enable miniature components and tight sensor coils. Specialty coatings such as polyimide, carbon/polyimide, and carbon/acrylate allow fibers to withstand, and maintain optimum functionality in, temperature extremes, high humidity, and other harsh environments necessary for aerospace, oil well sensing and surgical applications.
http://www.ofsoptics.com

MetaSwitch Positions for CLECs Facing the End of UNE-P

In response to recent FCC rule changes affecting the availability of UNE-P services to CLECs, MetaSwitch is positioning its VP3500 Next Generation Class 5 Switch as a next generation telephone solution for CLECs needing to move to facilities-based networks. MetaSwitch said the recent change in the FCC unbundling regulations has led many UNE-P based CLECs to revise their business models. MetaSwitch believes the key news for CLECs includes the finding that switching will no longer be an unbundled element for business customers and that individual states must determine if UNE-P is required for residential customers to provide competition. In addition, the rule changes removed the requirement on RBOCs to provide unbundled packet switching elements (including DSLAMs) and line sharing.
http://www.metaswitch.com

TeliaSonera Expands its DSL Footprint

TeliaSonera will expand its DSL network to another 104 switching centers in 73 municipalities in south and central Sweden. Approximately 450,000 customers already have broadband access through agreements with a number of the operators that use TeliaSonera's network. Slightly more than 100,000 households will be covered by the new installations. After the new installation, about 76% of Swedish households will be capable of receiving DSL.
http://www.teliasonera.com

TIA Predicts Return to Growth for both Network Services and Equipment Markets

The Telecommunications Industry Association (TIA) is predicting a 6.1% increase in spending in the United States on network transport services during 2003, achieving a total market size of $345.3 billion. Unlike 2002, TIA predicts growth will be positive across all transport services, though greatest in wireless services and specialized services such as high-speed Internet access. Local service revenues will expand by 5.8%, toll services will return to positive growth with a 1.7% increase, and wireless services will sustain 12% growth in 2003. Growth in high-speed Internet access will generate additional network traffic to sustain growth through 2006. TIA expects to see major infrastructure buildouts resume as service providers prepare for greater numbers of broadband subscribers. As a result, TIA expects the wireline network equipment and facilities market to expand by an 8.5% compound annual rate from 2003 to 2006, reaching $30.4 billion in 2006. The wireline network equipment market declined by 49% in 2002, according to TIA. The 2003 edition of TIA's study was prepared in anticipation of the FCC's recent decision regarding rules for competition in the local services market.
http://www.tiaonline.org/media/mrf.cfm

Equant Offers Outbound Option for Network Based Internet Gateway

Equant announced a unique outbound option for customers using its network-based gateway for providing Internet access to their global VPNs. The service provides a means for accessing the public Internet without exposing the VPNs to undue security risk. With the addition, Equant now offers two Network Based Internet Gateway configurations: Premium and Basic Outbound. The Premium tier is a bi-directional Internet service for larger sites where both inbound and outbound Internet access is required. It provides customizable security policy to and from the Internet, even for remote access employees using an IPSec connection. The new Basic Outbound tier allows Internet connections only from within the customer VPN out to the Internet without being routed via central corporate firewalls. It provides protocol filtering in hardware using multi-gigabit processors.
http://www.equant.com

Xerox Develops Reconfigurable Optical ADM on a Chip

Xerox has developed a single-chip that integrates a MEMS photonic switch with planar light circuits, providing the functionality of a Reconfigurable Optical Add/Drop Multiplexer (R-OADM). Xerox said it currently has a working prototype 8-channel reconfigurable OADM operating on a single crystal silicon wafer produced using a common semiconductor process. Xerox intends to license the technology to other companies in the optical switching market. The technology builds on a MEMS fabrication platform developed under a grant provided by the National Institute of Standards and Technology.
http://www.xerox.com

SBC to Deploy WaveSmith's Distributed Node Multiservice Switch

SBC is deploying WaveSmith Networks' DN 7100 multiservice switch to provide DSL aggregation across 200 sites nationwide. The multiyear, multimillion-dollar contract is the largest announced to date by WaveSmith. WaveSmith's DN multiservice platform combines ATM, Frame Relay, Time-Division Multiplexing/Circuit Emulation Services (TDM/CES), and MPLS in a compact form factor.
http://www.wavesmithnetworks.com

OFC: Service Provider Architects: AT&T, DT, FT, Cogent, Sprint, Cox

Legacy support and low cost are the two vital factors in planning metro optical upgrades, said Kathy Tse of AT&T's Optical Transport Planning at the OFC Service Provider Summit in Atlanta this week. CWDM is of great interest to AT&T due to its low cost, standards-defined integrated optics for interconnection, and its ability to leverage existing and fiber. AT&T is also seeking ways to reduce capital expenditures through the elimination of unneeded OEO connections and the use of lower cost components. Operating expenses will be reduced through automation of system maintenance and growth and reduced power and footprint. However, Tse said it is rare to find a business case for new CapEx outlays that really achieve significant OpEx savings.


Planning for metro optical networks requires careful consideration of the access network, advised Dr. Andreas Gladisch of Deutsche Telekom, T-Systems. He feels that it no longer makes sense to deploy the traditional SONET/SDH systems. The time is right for next generation SONET/SDH equipment capable of carrying a mix of services. He argues this is a better option than combining pure SONET/SDH and pure Ethernet as point solutions.


France Telecom R&D's Francois Tillerot believes that the diversity of customer applications means there is no single optimal solution for metro optical networks. In reality, most carrier networks are built with different topologies or equipment in each city. This is particularly true for large service providers that have grown through mergers and acquisitions over the years. Tillerot believes that CWDM is economical for specific circumstances and customers, but it is not a global solution. To integrate and deliver Ethernet services, Ethernet over SONET/SDH and to some degree CWDM will be most effective, while DWDM remains very expensive and probably most useful online in areas where fiber is scarce.


It is still better for an enterprise to operate a separate data network rather than create or utilize converged network, according to R. Brad Kummer, CTO of Cogent Communications. Traditionally, bandwidth has been considered an expensive resource that must be carefully managed with an elaborate network made up of expensive multi-services equipment and management systems. Cogent's view is that bandwidth can be inexpensive when carried on a simply designed network, and that the liberal application of bandwidth can solve networking problems. Cogent offers data-only service over its network, which is essentially a nationwide Layer 3 switched LAN. Cogent is not positioning its network for voice or other time sensitive services, making its 1-3 second fail over time acceptable. Internet data applications are designed to deal with this, says Kummer. Cogent utilizes WDM systems in its long haul network to minimize its transport costs, and in its metro network to minimize network costs. Cogent has recently switched from DWDM systems to more cost effective CWDM.


Mark Jones of Sprint's Optical Transport and Networking Group agrees that it is easier and generally more cost-effective to add bandwidth to a simple network architecture than manage a complicated network full of differentiated services. He believes that there have been several years of hype about technologies that are unrealistic when one evaluates the equipment available and the actual network costs. His list of top fallacies created by market hype includes full transparency, wavelength-level bandwidth on demand ("a hopeless business case"), and the belief that new technology is inherently better than old. Ultimately, optical networking decisions should be driven by an evaluation of the total network cost. No one optical networking solution will be right for all situations, and those who are "technology agnostic" will have the upper hand when considering their choices.


A pure packet architecture is the endgame, said Sabrina Calhoun, Director of Operations Engineering for Cox Communications. Cox has three parts to its network: an IP backbone; a transport network made up of Cox's own fiber to connect headends out to each neighborhood; and a coaxial network to connect directly to homes. Cox embarked on the upgrade of its network several years ago in order to offer telephony. For better network reliability, Cox moved to a self-healing design in which each node is interconnected via dual fiber rings. In 2001, Cox created its own OC-48 nationwide IP backbone for its customers' Internet data traffic. The company is now evaluating the use of this network to carry long distance voice and video traffic over this IP network. In the future, Cox plans to add networking capabilities to provide services to business customers, use new DOCSIS standards to provide better service control, utilize DWDM to increase bandwidth capacity, and add Resilient Packet Ring technology in some regions.
http://www.convergedigest.com

Tuesday, March 25, 2003

OFC Service Provider Summit: BellSouth Highlights Network Evolution

BellSouth does not look at the optical part of its network in a vacuum. It is just one part of an interconnected network, said Bill Smith, Chief Product Development and Technical Officer of Bell South, speaking at OFC's Service Provider Summit in Atlanta this week. While it would be nice to create an all-new network on a fresh sheet of paper, reality requires a mix of solutions that integrate old and new, DSL, fiber and wireless. In addition, Smith said the ongoing operation of all network elements is more difficult than the initial rollout of equipment, requiring an integrated view of network planning and management. Smith described the on-going transformation of BellSouth's network to packet services, which will ultimately be delivered through MPLS, network-based IP-VPNs, and metro Gigabit Ethernet. Packet voice is developing through Internet Call Diversion (ICD), Packet Voice Tandem (PVT), VoIP, and IP Telephony Gateway (IPTG) technologies. Key optical advances for BellSouth include OC-192 MSPPs, wavelength services, and further rollouts of fiber to the business. Smith noted that BellSouth just completed deployment of an optical high performance core, which has reduced end-to-end latency from 100 to 20 ms across the carrier's entire region. In addition, key Internet access points have been reduced from nine to four, which Smith predicts will be helpful when confronting major viruses and worms like the recent Slammer virus. Future optical network upgrades will include OEO digital cross connects to address the complications, opportunities for failure, and difficulty of provisioning SONET networks. In addition, certain SONET networks will be upgraded to DWDM and systems will be deployed to offer metro Gigabit Ethernet and wavelength services. Smith also believes that disaster recovery and mainframe and off-site backup services could be very popular. Smith also shared several thoughts about the evolution of the access network.

  • Delivery of voice, video and high-speed data on an integrated network is now a requirement.

  • DSLAM deployments will take place deeper in the network

  • As services evolve, the customer interface should change as little as possible. For instance, if BellSouth rolls out FTTH, there should be no need for customers to change their in-house wiring.

  • Entertainment services via DSL are more promising than ever before. BellSouth's content partners now say that they need only 3 Mbps to deliver video. Breaking news and live sporting events need to be viewed in real time -- other programming can be delivered through personal video recorders.

  • VDSL has great potential in multi family units. However, for neighborhoods of single-family homes, it is not clear that fiber reaches close enough to make VDSL viable. If fiber has to be run in closer, it might be better to go all the way to FTTH.

  • PON has some appeal. The technology looks good, but pricing has not declined to where it needs to be. PON will be most likely used in greenfield and overbuild situations.

  • Fixed wireless provides a good fill-in strategy, perhaps in rural areas and other places where DSL and FTTH do not make sense. BellSouth is now running a trial with Navini's fixed wireless system.



Smith observed that while service providers are constantly dealing with the challenging integration of multiple functions in the network, he is concerned that many system vendors are proposing solutions that try to accomplish too much in a single "god box style" platform. Instead, he feels that it may be better to have a more straightforward platform with just the key features. These are generally easier to implement and less expensive.
http://www.convergedigest.com

Atheros Names New CEO

Atheros Communications named Dr. Craig Barratt as its new president and CEO, replacing Rich Redelfs, who will take on the new role of vice chairman of the board of directors. Barratt previously was vice president of technology for Atheros, and before that, he served as executive vice president and general manager at ArrayComm.
http://www.atheros.com

Packet Design Raises $14.25 Million for IP Routing Control Plane Product

Packet Design Inc., a start-up based in Palo Alto, California, raised $14.25 million in Series B venture funding for its IP routing control plane developments. Packet Design's initial product, Route Explorer, was introduced in May 2002 as the first product to look into the IP "cloud" and leverage the routing protocols to gather, display and analyze routing-path information -- both in real time and historically -- enabling network managers to detect IP anomalies early and resolve them more quickly. Route Explorer has been shipping since mid-2002. A new version will be introduced next month. Prior to March 1, the company had existed as a set of internal technology projects of Packet Design LLC, a technology incubator founded by Judy Estrin and Bill Carrico. The new funding round was led by Advanced Technology Ventures and Mayfield Fund. Also participating in the round were Allegis Capital, Masthead Venture Partners, and Packet Design LLC.
http://www.packetdesign.com

MeshNetworks Targets is P2P Wireless Architecture at Municipal Transport

MeshNetworks, a start-up based in Maitland, Florida, announced a VAR agreement with Viasys, a leading provider of infrastructure development and maintenance services for the transportation and power utility industries. The companies will position MeshNetworks' ad hoc, peer-to-peer mobile broadband architecture to help municipalities, counties and Departments of Transportation overcome the challenges of rolling out fixed and mobile wireless data networks. MeshNetworks also provides geo-location data without using GPS. Viasys installs and maintains traffic control, safety systems, and wireless communications solutions for every level of local, state and federal government.
http://www.meshnetworks.com

MetaSolv Enhances its Service Activation Software

MetaSolv Software announced a set of enhancements to its service activation capabilities, including:

  • IP services device support for Alcatel 7670 MPLS switches to activate MPLS VPNs and QoS;

  • IP services device support for Cisco Catalyst layer 2 switches, including VLAN discovery and enabling activation of VLANs, QoS, and other CatOS features;

  • IP services device support for Cisco Modular QoS CLI for policy driven activation of rich QoS features to enable delivery of VoIP, video and other multimedia services;

  • Full support for the OSS Through Java Initiative's OSS Service Activation API (JSR 89 v1.0).

MetaSolv said more than 60 fixed and mobile operators worldwide are now using its service activation OSS.
http://www.metasolv.com

SMC's High Power Wi-Fi Adapter Offers 4X Transmit Power

SMC Networks introduced the first product in a new series of "EliteConnect High Power" wireless networking products: an 802.11b High Power Wireless PC Card. with up to 200 milliWatts (mW) of transmit power -- nearly four times the power of standard PC cards and twice the power offered by any other PC card on the market. SMC said its new Wi-Fi adapter has an operating range of up to 2,700 feet -- almost three times greater than standard 802.11b wireless clients. It can also overcome significant indoor multipath distortion to provide improvements in networking quality and throughput. The range can be increased even further by attaching an optional high-gain antenna to one of the two available MMCX connectors. The card is priced at $139.
http://www.smc.com

NetCentrex Supplies Softswitch for Lyse Tele's Triple-Play Service

Lyse Tele, a telecom company in the Southwest region of Norway, selected NetCentrex's MyCall platform for residential broadband IP telephony services. The NetCentrex softswitch solution provides self-service provisioning through the web and a voice portal, multiple call forward and voicemail. Lyse Tele, which is a subsidiary of the local power utility company, is building a fiber network to provide "triple-play" voice, video and data service. During the initial phase, Lyse Tele is providing flat rate Internet access (10 mbps), 40 channels of sport, culture, news and entertainment television, video on demand and telephony for EUR 100 per month.
http://www.lyse.nohttp://www.netcentrex.com

Japan's ACCA Networks Deploys Juniper E-series

ACCA Networks, a Japanese DSL provider, is deploying Juniper Networks' E-series edge routers to support its consumer ADSL and premium enterprise DSL services. ACCA provides ADSL to major ISPs and premium DSL to carriers offering wide area Ethernet and IP VPN services. ACCA plans to expand by extending services to smaller ISPs and enterprise customers using the E-series platform's virtual routing capabilities. Financial terms were not disclosed.
http://www.juniper.net

Unaxis Chooses Equant to Provide Global IP Data Network

Equant has built a 22-country IP VPN for the Unaxis Group, a Swiss information technology company. Equant said its MPLS backbone allows data traffic to be routed directly between Unaxis branch offices without having to pass through a server in Europe. The performance gain is especially notable between the company's Asian offices. Financial terms were not disclosed.
http://www.equant.com

Level 3 Provides Packet Ethernet for Sony's EverQuest Multiplayer Game

Level 3 Communications is providing (3)Packet Ethernet service to Sony Online Entertainment to support the online game "EverQuest" and its future releases. Sony's "EverQuest" is a massively multiplayer online role-playing game that potentially involves thousands of individual players who participate by taking on the roles of characters known as "avatars." The (3)Packet service is carried over Level 3's MPLS network. Financial terms were not disclosed.
http://www.Level3.com
  • Level 3 is the major provider of network services in North America and Europe for Microsoft's Xbox Live online video game service. Specifically, Level 3 provide its (3)Center Colocation, (3)CrossRoads Internet access, and (3)Packet MPLS Private Network (MPN) services to Xbox Live.

Essient Extends Reach of XFP Capabilities to 40 Km

Essient Photonics, a start-up based in Scotland, announced that its Electro Absorption Modulator (EAM) technology could enable support of 40 km transmission within the constraints of the XFP specification. Essient has developed indium phosphide (InP)-based technology that enables integrated modulation, detection, and amplification components for 10 Gbps systems. Essient said its first product, an ultra-low power Electro Absorption Modulator at 10 Gbps, enables the overall module power characteristics to be reduced by more than 70% and the size to be reduced by over 35%, enabling the support of 1550nm Intermediate Reach solutions within an XFP package. The company expects it will be able to extend the transmission range beyond 40 kilometers.
http://www.essient.com
  • Essient was founded in February 2002 with early stage support from Scottish Enterprise. The company has first round funding from Pond Venture Partners.


  • In December 2002, Essient named Ken Jones as its new president and CEO. Jones previously served as vice president and general manager of the Advanced Transmission Division of Vitesse.

AT&T Signs National Agreement with Blue Cross Blue Shield

AT&T announced a new two-year, multi-million dollar national agreement to provide networking services to Blue Cross Blue Shield Association (BCBSA) and its 42 member organizations. Included for the first time in the national agreement are AT&T Business local services, managed and professional services, and ATM connectivity. In total, the Blue Plans spend more than $200 million a year on telecommunications services.
http://www.att.com

America Online Launches Voicemail Service

America Online is launching a new premium service that enables its members to listen to their home voice messages online and their AOL e-mails over the telephone. Customers will hear a "You've Got Voicemail" message whenever a new message arrives or when they log-on. Dial-up users will be able to receive voicemail for the telephone number they are using to connect to AOL. They are also able to retrieve home voicemail messages and e-mail messages by phone. The service also provides a caller log tracking the last 100 messages received. Separate voicemail boxes are available for different family members. The service is price at $5.95 per month for existing AOL subscribers. Additionally, local phone companies may charge an additional small fee, which covers the price of call forwarding that the service uses.
http://www.aol.com
  • AOL Call Alert, another premium service that lets dial-up AOL users know what phone calls they are receiving while they are online, has attracted more than 300,000 paying subscribers since it was introduced in October 2002.

WorldCom Says January Operating Results Indicate Profit

In it monthly financial update to the bankruptcy court, WorldCom reported $2.16 billion in revenue versus $2.20 billion in December 2002 and income from continuing operations of $188 million versus a loss of $47 million in December. Net income for January was $155 million versus a net loss of $580 million in December. January reorganization items were $37 million versus $514 million in December. WorldCom ended January with $2.8 billion in cash on hand, an increase of approximately $300 million for the month. Michael Capellas, WorldCom chairman and CEO, said the profitability for the month of January indicated progress in its 100-day restructuring plan, but that a lot more work needs to be done. He expects WorldCom to emerge from Chapter 11 later this year.
http://www.worldcom.com
  • Last week, WorldCom noted two milestones in its 100-day restructuring plan. MCI's The Neighborhood, an "any-distance" local + long distance residential calling plan, is now available in all 48 contiguous states plus Washington, D.C. The WorldCom Connection, which consolidates local and long distance voice and data services for small businesses over one connection, is now available in all 94 metropolitan service areas where WorldCom owns local service facilities. WorldCom also announced today that it has expanded its bundled Connection offering to support PBX systems and a choice of IP phones.


  • Also this month, WorldCom announced nearly $80 billion in balance sheet write-offs covering existing goodwill and the carrying value of its other intangible assets, property and equipment.

Monday, March 24, 2003

OFC 2003 Plenary Sessions

Optical Vendors Should Widely Adopt Standards

While the long-term demand for telecommunications services is real, current business models of the industry are not sustainable, according to Eric Mentzer, VP and Chief Technology Officer, Intel Communication Group. In the face of changing industry rules, the greater adoption of standards is a way to succeed. Speaking at this week's OFC conference in Atlanta, Mentzer drew parallels between the trucking and optical industries. Trucking in the US was heavily regulated until deregulation in 1979. It then went through a turbulent transition during which time investment in trucking equipment fell greatly. In the period that followed, market leader Mack, which was vertically integrated and built all of its parts in-house, lost market share. Meanwhile, Kenworth standardized and integrated parts from a wide variety of partners. This allowed the company to add value "up market" in areas of driver convenience and comfort and fuel economy savings. Eventually, Kenworth achieved a larger market share, and Mack ultimately adopted a standards approach to its products. Mentzer observed that while network traffic is growing, revenues are flat, and the only way for carriers to survive is by lowering capital and operating expenditures. This means it is time to standardize. The optical industry, he believes, is ripe for standards and can no longer afford "boutique technologies."


Surviving in the Optics Business

The largest market for optics today is telecommunications. However, the optical industry needs to look beyond telecommunications if it is to survive and prosper, according to Kevin Kalkhoven of KPL Ventures and former CEO of JDS Uniphase. Kalkhoven said telecom applications for optics will grow no faster than the rate of overall GDP growth. Within telecom, he believes wireless, especially mobile phones and Wi-Fi, are the greatest opportunities in the near term. Kalkhoven argued that the optical industry must "think outside the box" to find new applications for its technology. Consumer oriented peripherals could be such a market opportunity. Kalkhoven encourages optics companies to work closely with the computer and electronics industries, and to explore display, sensor, material and medical science applications. He predicts only a small group of growing optics companies.


Increased Connectivity Can Create a Better World

The majority of the world does not have access to the information that we in the developed world take for granted, said Eduardo Gelbstein, Senior Special Fellow of the United Nations Institute for Training and Research and a contributor to the United Nations Information and Telecommunications (ICT) Task Force. He observed that 80% of the world's population has never made a phone call, London has more Internet subscribers than all of Africa, and New York City has more telephones than rural Asia. Gelbstein suggested that there are two ways to view this situation: 1) There is a sea of knowledge that surrounds us all, but a digital divide cuts off 6 billion people from it for the time being. 2) The privileged live in an oasis of knowledge, and others will never reach the oasis. Gelbstein feels that this second view has historically been dangerous. Gelbstein also observed that "complex problems are never solved, they are only transformed." Greater connectivity will take us into uncharted waters where we will face new questions. What happens to unique languages and culture? What happens when 6 billion people suddenly are connected, exposed to new ideas and knowledge, and have the ability to communicate directly with each other? While these changes raise some uncertainties, Gelbstein feels confident that they are much less risky than allowing the majority of the world's people to live outside of the oasis of knowledge.
http://www.unicttaskforce.org/
  • The UN and the ITU are holding a World Summit on the Information Society to develop a better understanding of the global information revolution and its impact on the international community. The first phase will be held from 10-12 December 2003, in Geneva, Switzerland and the second from 16-18 November 2005 in Tunis, Tunisia. For more information, see http://www.itu.int/wsis

OFC 2003 – International Perspectives

Europe's service providers have entered the post-bubble era, according to Stephane Teral of RHK. Speaking at this week's OFC conference in Atlanta, he said that following the "write-down party" of the major European service providers, a telecommunications turn-around can now take place in Europe. Teral feels that BT and KPN lead the pack. While France Telecom and Deutsche Telekom started later, they are making continuing progress.


As system and component vendors plan for the future, Teral said they should to be aware several trends in Europe.


  • Fewer service providers mean fewer buyers of equipment.

  • There is a shift from large-scale pan-European network deployments to small footprint city and rural IP/Ethernet-based networks.

  • SDH is here to stay, and the 3rd generation SDH rollout has already started.

  • OEO OCS deployment is about to ramp up. There is no need for wavelength grooming for now.

  • The integration of bandwidth management and aggregation means that even fewer boxes are needed


Francois Tillerot of France Telecom R&D shared his predictions on the approach that European carriers will take to their optical core in the coming years. In the present business climate, the rule is to minimize investment. Service providers will select "pay as you grow" solutions whenever the introductory cost is low enough. They will generally upgrade existing technologies, such as to increase capacity or optical reach, rather than move to new technologies. Software evolutions are preferable to equipment replacement, and can yield improvements in such areas as network management and optimization.


For start-ups, the big picture has changed, according to Jeffrey Andrews of Atlas Ventures. Carriers' buying patterns have changed, making it more challenging to sell equipment without an OEM partnership. Financing has changed, resulting in far higher standards for funding. Questions of geography have changed as well. With the increased importance of cash efficiency and higher operating margins, there are more reasons to establish and expand start-ups in Europe and Asia. Many locations offer lower salaries than in the United States, and provide strong R&D tax credits and other programs. There are also benefits to being located closer to growing customer markets. International outsourcing also offers excellent business opportunities, particularly for software development in India and manufacturing in East Asia. However, start-ups outside of the US have to contend with other challenges, such as the difficulty of providing stock option incentives to employees and cumbersome regulations on staffing reductions in many countries.
http://www.convergedigest.com/DWDM/DWDM.asp

XO Reports Q4 and Year-End 2002 Results

XO Communications reported Q4 revenue of $299.4 million, down from $343.0 million for this same period in 2001. Annual revenue for 2002 was $1,259.9 million, consistent with total revenue in 2001 of $1,258.6 million. Net loss for Q4 was $176.5 million compared to $681.9 million for the fourth quarter of 2001. Of the total revenue reported in Q4 2002, $157.3 million was derived from voice services, which includes revenue from local, long distance and other enhanced voice services, and $108.0 million was attributable to data services, which includes Internet access, network access, and web hosting. Revenue from integrated voice, data and other services totaled $34.1 million in Q4. As of December 31, 2002, XO had approximately $561.0 million in cash and marketable securities, which the company expects will be sufficient to get to profitability.
http://www.xo.com
  • On January 16, 2003, XO Communications emerged from Chapter 11 bankruptcy protection with its long-term debt reduced from $5.1 billion to $500 million. Financier Carl Icahn has assumed the role of Chairman of the Board, and companies under his control hold more than 80% of the stock in the reorganized XO. Creditors hold the remaining shares.

Wintegra Raises $13 Million for Access Packet Processor

Wintegra, a start-up based in Austin, Texas, closed $13 million in third round funding for its access packet processors. The company's WinPath access packet processor family offers aspects of ASICs, network processors, communications processors and communications peripherals. Wintegra claims over 60 design wins and said volume production of its chips has been ramping since Q3. The new funding round was supported by existing investors Texas Instruments, Concord Ventures, Magnum Communications, China Development Industrial Bank, and included new funding from a privately held European investment group. Wintegra has raised $39 million to date.
http://www.wintegra.com
  • Wntegra's access packet processor is designed as a single-chip solution for all the required data path and control path packet processing functions in wireless base stations, media gateways, access multiplexers, service switches and enterprise routers. The Wintegra device features a combination of ATM and IP feature sets, high-speed SAR functionality, large ATM and IP queues, and an “any service any port�? capability. More specifically, the design provides more than 18 data path protocols resident in RAM on a single chip, including IPv4 Full Routing, AAL0, AAL1, AAL2, AAL5, ATM Circuit Emulation, IMA, ATM Cell Switching, AAL2 CPS switching, HDLC, PPP, MLPPP, Ethernet MAC, Ethernet L2 switching, Ethernet VLAN Tagging, Ethernet-to-ATM Bridging, MPLS, RFC1483/2684, and IP over ATM, PPP and Ethernet. Additional IP functionality includes classification of L2 to L7 headers or payload and mapping into policies or QoS. When used in conjunction with TI's programmable DSP-based TNETV communications processors and Telogy Software, the solution could provide aggregation, packetization and QoS functions scaling from 100 to over 8000 VoP channels.


  • Wintegra is headed by Kobi Ben-Zvi, who previously served as Co-General Manager of the Networking and Communications Systems Division at Motorola Semiconductor in Austin, Texas.

Tellabs Names CFO

Tellabs named Timothy J. Wiggins as executive vice president and CFO, replacing Joan Ryan, who resigned in February to accept the CFO position at Sirva. Prior to joining Tellabs, Wiggins was executive vice president and CFO at Chicago Bridge and Iron Company N.V.
http://www.tellabs.com

France Telecom R & D Chooses IP Infusion's Routing Suite

France Telecom R & D will use IP Infusion's ZebOS Advanced Routing Suite to provide routing platforms for its research activities. IP Infusion will provide IS-IS, PIM-SM and RSVP-TE protocols to support both IP routing and MPLS traffic engineering.
http://www.ipinfusion.com

Lucent Announces Two Metro Optical Customers

Lucent Technologies announced agreements to supply its Metropolis DMX Access Multiplexer to two new customers in the US: Matanuska Telephone in Alaska and Sierra Pacific Communications in Nevada. Modeled on the architecture of the extensively deployed DDM-2000 product family, DMXtend can be used to add capacity and speed to existing DDM-2000 equipment at OC-3 and OC-12. It supports 1,024 DS1s per bay. Financial terms were not disclosed.
http://www.lucent.com

XO Selects ADC Singl.eView for Broadband Convergent Billing

XO Communications is installing ADC's Singl.eView dynamic transaction management platform for convergent billing and customer management for treatment and collections. XO will use Singl.eView for its broadband business communications services, which include local and long distance, IP and integrated voice and data. Financial terms were not disclosed.
http://www.adc.com

Conexant Licenses ARM Core for its Home Network Processors

Conexant Systems has licensed the ARM embedded processor core for use in its network processors. Citing figures from In-Stat MDR, the companies said they expect the overall number of silicon devices in home networks will grow from 20.5 million in 2002, to more than 167 million devices in 2006.
http://www.arm.com

Toshiba Adds 2.5 Gbps Small Form Factor Pluggable Transceiver

Toshiba America Electronic Components announced a family of 2.5 Gbps small form factor pluggable (SFP) optical transceivers for use in short-, intermediate- and long range optical networks. The transceivers provide include digital diagnostic capabilities to minimize downtime and enable systems to be maintained and upgraded without interfering with network operation. Pricing ranges from $50 to $1,000 depending upon configuration, functionality and quantity.http://chips.toshiba.com

Broadcom Announces 10-GigE/FC Serial Transceiver with Integrated Equalizer

Broadcom introduced a single-chip serial 10-Gigabit Ethernet/Fiber Channel transceiver (transmitter/receiver) with integrated 10-Gigabit equalizer. The device features Broadcom's proprietary EyeOpener equalization technology designed to enable the use of existing backplanes at 10 Gbps. The transceiver could be used for XFP module-based LAN and SAN applications. Broadcom expects the deployment of XFP solutions to decrease the cost of 10 Gbps interfaces by 50% or more.
http://www.broadcom.com

Telefónica del Peru Deploys Juniper's Edge Routers

Telefonica del Peru has deployed Juniper Networks' E-series platform with the SDX-300 Service Deployment System (SDX) to provide broadband aggregation and transport for its IP network. The SDX will be used in combination with the E-series to facilitate the nationwide deployment of IP- based services, such as VPNs. The equipment was provided through Siemens Information and Communication Networks. Financial terms were not disclosed.
http://www.siemens.com/networks

Cierra Photonics Develops Thin-film Deposition Process for Optical Filters

Cierra Photonics, a start-up based in Santa Rosa, California, introduced its third generation Advanced Energetic Deposition, a thin-film deposition technology that enables rapid, high uniformity optical coatings to be grown on wafers. The technology is especially applicable for making optical filters for CWDM and FTTH applications. Cierra is using the technology for a line of 100, 50 and 25 GHz thin-film filters.
http://www.cierraphotonics.com

UTStarcom Announces New China Telecom Contracts in Guangdong and Jiangsu

UTStarcom announced new contracts valued at approximately $40 million with China Telecom for new and expansion deployments of its IP-based PAS in Jiangsu and Guangdong provinces.
http://www.utstar.com

TI Claims 50% of DSL Central Office Ports in China

Texas Instruments said over 50% of the central office DSL ports deployed in China last year used its DSL chipset. The DSL market in China added almost two million subscribers and reached almost four million lines deployed by the end of 2002, according to the company.
http://www.ti.com/dsl

MFN Provides Private Optical Network for Xerox

Metromedia Fiber Network completed installation of a private optical fiber network in Los Angeles for Xerox Corporation. By leasing and lighting the dark fiber, Xerox controls the equipment and platform of the network, ensuring its privacy and security. Financial terms were not disclosed.
http://www.mfn.com

Global Crossing Supplies Bandwidth for South Florida GigaPOP Project

Global Crossing announced a three-year contract to provide five DS-3s for International Private Line and GigE Dedicated Internet Access to Florida International University (FIU). The connectivity service will be used for the South Florida Research and Education GigaPOP Project, serving high schools and universities in Florida, as well as universities and research institutions throughout Latin America and the Caribbean. The GigaPOP Project was established in 1999 when FIU was awarded a high-performance connection grant from the National Science Foundation, at which time the University of Miami and Florida Atlantic University elected to connect to Internet2's Abilene network through FIU.
http://www.globalcrossing.com

Qwest to Upgrade Department of Energy Network

Qwest Communications was awarded a contract extension to upgrade portions of the U.S. Department of Energy's (DOE) Energy Sciences Network (ESnet) to 10 Gbps. ESnet, which will have its entire backbone upgraded to OC-192 in 2005, is funded by DOE to provide advanced networking between more than 35 major research sites. Financial terms were not disclosed.
http://www.qwest.com

ADC and Nuera Partner on PacketCable-based VoIP Solutions

ADC will sell and support the Nuera ORCA RDT-8v gateway along with ADC's Cuda 12000 IP Access Switch as a PacketCable-based solution for the international market. The Nuera ORCA RDT-8v carrier-grade gateway serves as an Intelligent Peripheral Access Terminal (IPAT) or V5.2 gateway as defined by the IPCablecom standards, providing voice-processing capabilities needed for primary and secondary line service. ADC's Cuda 12000 is an advanced cable modem termination system (CMTS). ADC and Nuera have also set up a joint lab in Farnborough, UK to test and verify V5.2 solutions using the RDT and Cuda and with ADC's FastFlow Broadband Provisioning Manager, which supports the provisioning of PacketCable-based Multimedia Terminal Adaptors (MTAs).
http://www.adc.com
http://www.nuera.com

CWDM Enhancement Positions Tellabs 7100 for CPE Wavelength Services

Tellabs announced CWDM enhancements that position its Tellabs 7100 optical transport platform as a lower-cost solution for transporting wavelength services to customer premises. The new CWDM capabilities in the Tellabs 7100 system's access multiplexer and data shelves aggregate high-speed data services, such as SONET, Ethernet and storage area network (SAN) links. The platform also offers DWDM capabilities for inter-office transport.
http://www.tellabs.com
  • Earlier this month, Tellabs announced that Sprint will use the Tellabs 7100 optical transport system to deploy wavelength-based services to its local, long-distance and wireless customers. The Tellabs 7100 system is a DWDM platform that scales up to 64 wavelengths and offers the ability to carry private line, GigE, TDM and SAN services. The Tellabs 7100 system is being deployed in Sprint's North Carolina and Florida networks

Mintera Claims Optical Record: 40 Channels at 40 Gbps over 10,000 Km

Mintera Corporation, a start-up based in Lowell, Massachusetts, demonstrated error-free transmission of 40 data channels each operating at a bit rate of 40 Gbps over a record distance of 10,000 km of transmission fiber without electrical regeneration. Mintera said the result was achieved with optical amplifier spacing of 100 km and by using all-Raman amplification as well as enhanced error correction encoding.
http://www.mintera.com
  • At last year's OFC, Mintera demonstrated error-free transmission of 40 channels at 40 Gbps over a distance of 3,600 km of UltraWave terrestrial dispersion managed fiber without electrical regeneration.

Corning Estimates a 50% Decline in Worldwide Fiber Market for 2002

Corning Optical Fiber estimates that the total worldwide fiber market was approximately 55 million fiber kilometers last year, representing an overall decrease of approximately 50% compared to 2001. In its annual overview of the fiber and photonics industry, Corning issued the following fiber market assessments:

  • North America, which accounted for 25% of the total worldwide fiber demand, declined by approximately 65%;


  • Western Europe, representing 10% of the worldwide demand, declined by approximately 75%;


  • Japan, representing 30% of the worldwide demand, decreased by nearly 10%;


  • "Other Asia," which represented 30% of the worldwide demand, decreased by about 35%;


  • Latin America and "Rest of World," which comprised 5% of the worldwide demand, declined by approximately 70%.


  • When the market is analyzed by application category rather than by geography, Corning's estimated rates of decline for 2002 are as follows:

  • Long-haul terrestrial/submarine fiber, accounting for 10% of the total worldwide demand, showed a decline of approximately 70%,


  • metro fiber, representing 45% of the total worldwide demand, decreased by approximately 50%;


  • access fiber , representing 40% of the total worldwide demand, showed a decrease of about 45%;


  • and premises fiber, accounting for 5% of the total worldwide demand, decreased by 25%.



Corning expects little change in the worldwide fiber market for 2003.


As for the worldwide market for photonic components and modules, Corning estimates that, after nearly 50% growth in 2000, optical system spending, which includes WDM and SONET/SDH equipment, declined by approximately 60% in 2002, largely due to a 74% decline in optical system spending in North America. Corning expects the DWDM system market to decline a further 15-25%.


Nevertheless, Corning predicts that bandwidth demand will continue to grow at 60-80% annually through 2006. It continues to believe that the world's networks are still in the early stages of a long-term technology substitution from copper to fiber. Another positive note for Corning: in the recent FCC UNE Triennial Review, ILECs were relieved from unbundling requirement for new and overbuilt FTTH deployments.


A webcast is available online.
http://www.shareholder.com/corning/presentations3-25-03.cfm