Sea Launch Embarks on the First Mission of 2004

Sea Launch is making final preparations for its fist mission of 2004: the launch of the Telstar 14/Estrela do Sul 1 communications satellite scheduled for 09-Jan-2004. The SS/L 1300 series spacecraft carries 41 Ku-band transponders with five unique and interconnecting coverage beams. Fifty percent of the satellite's power will be dedicated to Brazil, providing a dedicated Ku-band solution for the Brazilian marketplace. The satellite's other beams will cover the Americas and the North Atlantic Ocean, where Connexion by Boeing will use the satellite to provide its Internet-to-aircraft service. Following the Telstar 14/Estrela do Sul 1 mission, Sea Launch is scheduled to launch DIRECTV-7S and then Telstar-18.
http://www.sea-launch.com

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Connexion by Boeing Seeks Momentum in 2004

"History will record 2004 as the year when air travelers for the first time could choose to be connected while in flight to family, colleagues and friends," said Scott Carson, president, Connexion by Boeing. Following successful trials of its service by Lufthansa and British Airways in 2003, Connexion by Boeing has obtained the first regulatory authorizations to operate wireless devices aboard commercial airliners in flight. Some other recent milestones for the service include in-flight VPNs, the first two-way video-teleconference between the air and the ground during a commercial airline flight, and the first two-way, real-time e-mail exchange in flight between two airline passengers flying on different airplanes.


SAS, Singapore Airlines and All-Nippon Airways are also planning to equip their long-range fleets with the Connexion by Boeing service. The company also cited increased momentum in the executive-jet market: Kingdom Holding Co. of Saudi Arabia announced plans to install the Connexion by Boeing system, initially on a Boeing 747.www.connexionbyboeing.comIn July 2003, the World Radiocommunication Conference approved the use of a range of radio frequencies for satellite-based communications for aeronautical purposes. The allocation cleared the way for regulatory authorities within each country's airspace worldwide to authorize certain in-flight connectivity services such as Connexion by Boeing.

Agreements also were reached with satellite service providers, including Eutelsat, Intelsat and Space Communications Corporation.

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FCC Opens Proceeding on Smart Radios

The FCC opened proceedings seeking public comment on the use and applications for cognitive "smart" radio systems. Smart radios are defined as devices having the capability to adapt their use of spectrum in response to information external to the radio. For instance, a system could use geolocation information to determine whether certain transmissions are permissible. Alternatively, such radios could sense their RF environment and use this information to determine the optimal frequencies and transmit powers to use, while avoiding harmful interference.


The FCC is seeking comment on ways to encourage and remove regulatory impediments to continued development and deployment of smart radio technologies, including, for example, facilitating the ability of licensed spectrum users to deploy them for their own use to increase spectrum efficiency, and to facilitate secondary markets, allowing licensees to lease their spectrum access to third parties using such technologies. The FCC is also seeking comment on ways in which smart radios can facilitate opportunistic use of the spectrum by unlicensed devices, while protecting incumbents from harmful interference. The FCC is developing rules permitting additional technical flexibility, including allowing unlicensed devices in limited bands to use higher transmit powers in rural and underserved areas.
http://www.fcc.gov

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Vitesse Acquires Cicada for GigE Switching Silicon

Vitesse Semiconductor agreed to acquire Cicada Semiconductor, a start-up based in Austin, Texas, for approximately $66 million in cash. Cicada is a supplier of DSP-based integrated circuit solutions to developers of high-speed communications systems used in LANs. Vitesse expects the Cicada products to contribute about $10 million in revenues in calendar 2004, with a majority to be realized in the second half of the year. As part of the deal, Cicada will have to reduce its workforce to approximately 40 employees.
http://www.vitesse.com
http://www.cicada-semi.comCicada Semiconductor has previously announced a total of $37 million in funding. The company was founded in 1996. Investors included Sevin Rosen Funds and Perot Investments.

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Fujitsu and Sumitomo Establish Joint Venture

Fujitsu and Sumitomo Electric Industries will create a joint venture to develop compound semiconductors for use in the telecommunications market and for growth applications such as mobile terminals, digital home appliances as well as enterprise applications, such as wireless local area networks.

Fujitsu Quantum Devices will bring to the new joint venture a broad portfolio of advanced technologies primarily geared toward the telecommunications infrastructure market, including microwave devices and optical communications devices. These will be combined with Sumitomo Electric's strengths in materials technologies. Fujitsu and Sumitomo Electric will each have an equal equity ownership in the joint venture. The new company is expected to be operational by April 2004.
http://www.sei.co.jp/news_e/press/03/03_14.html

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Vonage Signs Private Label VoIP Partnership with ANPI

Vonage will provide a co-branded broadband telephony service to Associated Network Partners Incorporated (ANPI's) cable television and long distance telephony member companies across 35 U.S. states. Vonage will offer ANPI's participating ISP's, who in turn serve several hundred thousand high-speed Internet subscribers, unlimited local and long distance calling throughout the U.S. and Canada for a flat rate.


ANPI is the first consortium of phone companies and telecom service providers to partner with Vonage. ANPI has 275 member companies.
http://www.vonage.com

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Acterna Introduces Fiber Mapping Software

Acterna introduced a new Optical Fiber Mapping (OFM) software application that provides a bird's eye view of a network's outside fiber plant, enabling the operator to hone in on the exact location of faults, outages, affected nodes, and customer sites. Acterna said the high-fiber density of metro networks requires operators to have up-to-date documentation that includes original schematics created by a designer in paper or electronic formats, maps, photos, plant assets, and network element data. The new software enables users from different divisions within an organization to generate customized reports.
http://www.acterna.com

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KDDI Launches Broadband TV and VOD over Fiber

KDDI, currently the second largest telecommunications company in Japan, launched "Hikari Plus TV," a multi-channel broadcasting and video on delivery (VOD) service offered over fiber lines. The new service rounds out the KDDI's Hikari Plus suite, which has also includes the recent launch of Hikari Plus Phone (VoIP) and Hikari Plus Net (fast Internet) in October 2003.


Hikari Plus TV will be delivered through KDDI rental set top boxes (680 yen per month) with connectivity to KDDI's proprietary CDN (Content Delivery Network). In addition to fiber, in-building connections may use VDSL or Ethernet. The network uses IP packet priority control and IP multicasting to deliver DVD-grade video. Residential users will also be able to access the Hikari Plus TV service using PCs and other devices.


KDDI expects to have about 2,000 titles in its VOD library by March 2004. Users will be able to view up to three titles (including one new title) for a fixed monthly charge, and an unlimited number of titles on a pay per view basis of 100-500 yen per title. Multi-channel broadcasting will also be available for a fixed monthly charge. Users can select from 25 channels including MTV and Sports Eye ESPN. In addition, Hikari Plus TV will offer online karaoke with a library of approximately 3,000 titles.


KDDI's Hikari Plus service area includes Sapporo, Sendai, Chiba, Saitama, Tokyo, Kanagawa, Nagoya, Shiga, Kyoto, Osaka, Nara, Hyogo, Takamatsu, Hiroshima, Kita Kyushu, a part of Fukuoka. KDDI expects to expand its service area in the future.
http://www.kddi.com/

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Verizon Adds Corning and 3 Others to FTTP Vendor List

Verizon selected four additional suppliers for its fiber- to-the-premises (FTTP) project: Corning Cable Systems, ADC, Preformed Line Products Co., and Tyco Electronics. The companies will provide fiber-optic cabling and other outside plant equipment, also known as the "passive" elements of the FTTP system.


They join four other companies that Verizon selected and announced in November 2003: AFC for the central-office electronics; and Sumitomo Electric Lightwave, Pirelli Communications Cables and Systems and Fiber Optic Network Solutions (FONS) as outside plant suppliers.


Verizon said it plans to continue performing lab and technology interoperability tests on the FTTP systems, ensuring the new technology works properly with existing and new Verizon operations support systems. In the first half of 2004, Verizon expects to begin initial test-deployments in at least two communities. By the end of the year, the company expects to deploy the new technology in over 100 central offices across nine states.
http://www.verizon.com

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Thomson uses Broadcom Chips for DSL in China

Thomson began shipping a new SpeedTouch ADSL modem designed for the Chinese market and which is based on Broadcom's silicon. The Chinese ADSL market is expected to grow to over 18 million subscribers by the end of 2004.
http://www.thomson.nethttp://www.broadcom.com

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UTStarcom Signs Expansion Contracts in Vietnam

Vietnam Post and Telecommunications (VNPT) awarded an expansion contract valued in excess of US$10 million to UTStarcom for continued deployment of the IP-based PAS citywide wireless access system in Hanoi and Ho Chi Minh, the two largest cities in Vietnam. VNPT officially launched iPAS service under the "Cityphone" brand name in Hanoi in December 2002 and in Ho Chi Minh in February 2003. To date, VNPT has attracted nearly 50,000 subscribers to its networks. In addition, the "Cityphone" iPAS service now includes value-added data services (VAS) such as short messaging and multi-media messaging. These new value-added services are interoperable with VNPT's GSM network and 64kbps wireless Internet access via the handset, laptop computer, or personal digital assistant. VNPT also offers pre-paid services to its customers. VNPT is working with UTStarcom to launch six new handset models in 2004.
http://www.utstar.com

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France's FREE Deploys Cisco Metro Ethernet for Triple Play

Free, the second largest ISP and a subsidiary of the Iliad Group, is deploying a multi service Gigabit Ethernet-based Broadband Aggregation architecture to support TV-over-DSL services. Specifically, FREE is using Cisco Catalyst 6500 series switches in its QoS-enabled video distribution network. FREE is also deploying Cisco Gigabit Ethernet Interface Modules to provide Gigabit Ethernet aggregation in its metropolitan area networks.
http://www.cisco.com

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Athena Raises $10 Million for Single Chip CMOS Radios

Athena Semiconductors, a start-up based in Fremont, California, raised $10 million in series B funding for its single-chip CMOS radio transceiver IC products. Samsung Electronics led the current round and Needham Capital also joined the round. Several existing investors, including Alliance Ventures, participated in the round as well. The new funding brings the total amount raised to date to $20 millionhttp://www.athenasemi.com

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Nextel's CEO to Head Network Reliability and Interoperability Council.

Timothy M. Donahue, President and CEO of Nextel Communications, was named chairman of the newly re-chartered Network Reliability and Interoperability Council. NRIC VII, which will run from 06-Jan-2004 to 06-Jan-2006, is expected to focus on systems engineering aspects of emergency services. Donahue is the first wireless company executive to chair an NRIC panel.


The role of the NRIC is to develop recommendations for the FCC and the telecommunications industry to insure optimal reliability, security, interoperability and interconnectivity of, and accessibility to, public telecommunications networks and the Internet.
http://www.fcc.gov

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Qwest Acquires Metro Networks from Allegiance Telecom

Qwest Communications agreed to acquire substantially all of the assets of Allegiance Telecom, a facilities-based national CLEC headquartered in Dallas, Texas for approximately $300 million in cash. In addition, Qwest will issue approximately $90 million of convertible debt. The deal includes networks in 36 metro markets across the U.S., 31 of which are outside the Qwest local service region. Allegiance Telecom, which filed for Chapter 11 bankruptcy protection in May 2003, currently carries approximately $550 million in telecommunications traffic annually. Qwest said it plans to combine and optimize this traffic -- with its existing network traffic. The deal requires approval of the bankruptcy court and certain other government regulatory agencies. In a bankruptcy court sale, other interested potential bidders will have an opportunity to offer higher bids for the assets of Allegiance.


"Upon closing of this transaction, Qwest will have more POPs than any other inter-exchange carrier in the U.S., allowing us to better serve existing customers and immediately expand our ability to serve more businesses than ever before," said Richard C. Notebaert, Qwest chairman and CEO.
http://www.qwest.com
http://www.algx.com

• Allegiance Telecom is headed by company co-founder Royce Holland, who previously was president and one of several co-founders of MFS Communications (acquired by WorldCom).



• For Q3 2003, Allegiance Telecom reported revenues of $188.2 million, a decrease of 4.3% compared with second quarter 2003 and a decrease of 14.3% compared with the third quarter of 2002.

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Level 3 Expands European Network to Vienna

Level 3 Communications has expanded its European network to Vienna, Austria, giving it a presence in 20 of Western Europe's largest markets. In addition, Level 3 is doubling IP capacity on one of the two network rings it operates in Germany. The ring, connecting Dusseldorf, Hamburg, Berlin, Munich, Cologne, Karlsruhe, Frankfurt and Leipzig, will have an expanded capacity of 10 Gbps.
http://www.Level3.com

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Foundry Networks Wins New Contract with BBC

Foundry Networks was awarded a contract lasting up to five years with BBC Technology, provider of products and services to both the BBC and other global media-driven organizations, for networking equipment including Internet routers, Layer 2/3 and Layer 4-7 switch technology and associated services. The BBC is migrating to tape-less television and radio program production based on IP. The contract was signed in July 2003, with a contract effective date starting back in April 2003 -- a framework agreement lasting up to five years.
http://www.foundrynet.com

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U.S. Air Force Ready to Launch GPS II Satellite

The U.S. Air Force is preparing to launch an upgraded Global Positioning Systems (GPS) satellite built by Lockheed Martin aboard a Delta II rocket scheduled on 21-Dec-2003 from Cape Canaveral, Florida. The GPS IIR-10 satellite features significant performance upgrades, including an advanced antenna panel, which will increase power for GPS receivers.


Lockheed Martin said there are eight new-generation GPS IIR spacecraft currently on orbit out of a total GPS constellation of 28 satellites. GPS IIR satellites are designed to improve global coverage and increase the overall performance of the GPS constellation. Lockheed Martin has delivered 21 of these satellites to the U.S. Air Force Space and Missile Systems Center.
http://www.lmco.com

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The Quilt Signs AT&T as a Select Vendor

The Quilt, a coalition of regional network organizations, named AT&T as a select vendor to provide special discounts on Cisco Systems and Juniper Networks equipment and maintenance. The Quilt gathers more than 20 leading research and education networking organizations in the U.S. Participants in The Quilt provide network service for more than 200 Internet2 universities and thousands of other educational institutions.
http://www.thequilt.net/

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Lucent Names Giere as Chief Marketing Officer

Lucent Technologies appointed John P. Giere as Chief Marketing Officer, effective immediately. Giere was most recently a vice president at Ericsson, where he led the company's global branding and marketing program as well as business development efforts into new markets. Giere will report to Lucent's chairman and CEO Patricia Russo and build a central marketing organization to support the Lucent branding, marketing strategy and global marketing efforts. He will oversee all of the company's marketing initiatives and design a tightly linked team across its wireless, wireline and services businesses to support these efforts.
http://www.lucent.com

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France Telecom Launches TV-over-DSL

France Telecom, in partnership with TPS, announced the commercial launch of TV-over-DSL services. "MaLigne tv" initially is available in Lyon. It will be extended to Paris in spring 2004 followed by a rollout in other French cities. TPS is a content distributor that is jointly owned by French TV stations TF1 and M6.


Two content tiers are offered. The basic "MaLigne tv," which costs EUR 16 per month, provides the TPS L programming package along with a range of VOD movies and TV shows. A "TPS L Prestige" package, priced at EUR 21 per month, adds exclusive coverage of League 1 soccer matches, six different movie channels, all French national channels, plus a range of international channels. An extensive VOD library based on the a-la-carte model is available through France Telecom partnerships with content producers, including TPS, TF1, M6, Arte, France Télévisions and Movie System and through the CNC, Lobster Film, Roissy Film.


The self-install, "MaLigne tv" TV-over-DSL service is being promoted through retail channels, including Carrefour, Darty and FNAC and France Telecom stores.


France Telecom has deployed a dedicated end-to-end architecture for its TV-over-DSL. Its partners include Alcatel for the multicast-enabled DSLAMs , SAGEM for the MPEG-2 set-top decoders, Thalès for the service management platform and Thomson for the video encoders. Digital rights management is provided with the Viaccess conditional access system.
http://www.francetelecom.com

• France Telecom added nearly 400,000 ADSL lines in Q3 2003, giving it a total of 2.5 million lines in service at the end of the quarter. The company said it is on target to reach 3.0 million lines by the end of the year. Revenues from ADSL broadband Internet access (excluding revenues from Wanadoo clients) increased 23% compared to Q3 2002 due to the rapid development of ADSL in France. About two-thirds of the ADSL lines are served by Wanadoo and the remaining third by other ISPs and unbundled lines.

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Palo Alto Selects Quantum Bridge / Motorola for FTTH Test

The City of Palo Alto Utilities (CPAU) is testing an FTTP solution from Motorola and Quantum Bridge for delivering voice, video and data to select residents in the city. The city hopes to eventually replace its legacy infrastructure with FTTP.
http://www.quantumbridge.com/pr121703.html

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Bell Canada: "Not Telecom as Usual"

The current environment is "not telecom as usual", said Michael Sabia, president and CEO of Bell Canada Enterprises speaking at the company's annual conference for the financial community.


Sabia said Bell Canada intends to migrate 100% of its traffic onto a national IP backbone network within three years, with 90% of its customers having access to a full suite of value-added IP services. He vowed the company would devote all its resources "to capture the full potential of IP based communications."


As for accomplishments in 2003, Bell Canada reorganized into three distinct business units to better serve its customers.


In the consumer segment, Bell Canada is expecting by the end of 2005 to double the number of households that use three or four of its key services. The company will focus on simplicity and service through initiatives such as a unified marketing strategy for all consumer products and services, attractive bundles and one stop shopping. Bell Canada will continue to expand its DSL footprint. It also plans to launch a consumer VOIP market trial in early 2004, and is continuing with its IPTV trials.


For small and medium businesses, Bell Canada hopes over the next two years to double the number of customers with two or more services and to cut in half the time it takes to serve the customers. Initiatives are being planned for moving small and medium business into new technologies such as VoIP and WiFi.


For enterprise customers, Bell Canada is focused on transforming the business from providing connectivity to delivering value-added services to at least 80% of its customers by 2005. The company will develop an IP migration plan for each of its enterprise accounts in 2004.


For 2004, Bell Canada is expecting revenue growth comparable to 2003. The capital intensity (capital expenditures as a percentage of revenues) ratio is expected to be 17% to 18%. DSL net additions are expected to be comparable to those achieved in 2003.
http://www.bell.ca

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Global Crossing partners with Covad for DSL

Covad Communications was named as a national DSL provider for Global Crossing's IP VPN Service, Frame Relay, Dedicated Internet Access (DIA) and VoIP services in the U.S. Global Crossing plans to offer VoIP services over these DSL connections in early 2004,http://www.globalcrossing.com
http://www.covad.com

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Free World Dialup Deploys NexTone Session Controllers

Free World Dialup is using NexTone's Multiprotocol Signaling Switch (MSW) to allow a peer-to-peer Internet telephony network for broadband users. The NexTone MSW enables Free World Dialup to abstract call routing and other call control policies from the call signaling regardless of their choice of signaling protocol (H.323 or SIP) or endpoint type. This allows Free World Dialup to route and control calls among its 85,000 subscribers without modifying the network infrastructure.
http://www.nextone.com

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Telefónica Deploys Juniper's E-series for TV-over-DSL

Telefónica de España is using Juniper Networks' E-series platforms to deliver entertainment services across its broadband IP over ADSL network. Telefónica is developing an "Imagenio" service that is aimed at integrating the television and Internet worlds. Content is provided by Telefonica subsidiaries and others. So far, some 700 households have been testing the services. Full commercial launch in Spain's two biggest cities, Barcelona and Madrid, will happen as soon as Telefonica receives approval from the Spanish regulator.


The equipment is part of an order awarded to Siemens ICN by Telefonica to extend its broadband network. Financial terms were not disclosed.


Telefónica is currently serving some 1.5 million DSL lines in Spain for retail and wholesale customers.
http://www.juniper.net

• In September, nCUBE announced that Telefónica de España had selected its nABLE interactive management software and n4x video server for the delivery of VOD services over its ADSL network in Spain. Telefónica's VOD service, imagenio, will initially be available in the Madrid, Barcelona and Alicante regions of Spain and is expected to expand to cities across Spain over the next two years. nCUBE's n4x video server can store more than 200,000 hours of unique video content. nCUBE's platform is designed to support communities of 5,000 to 500,000 homes with a single piece of content.

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D-Link Offers Wireless Broadband VideoPhone for TVs

D-Link introduced a wireless version of its i2eye VideoPhone for broadband video conferencing using television sets and the ITU-based H.323 protocol. The new D-Link i2eye streams video at up to 30 frames per second and features an adjustable tilt/focus camera lens. An address book stores up to 50 IP addresses or registered i2eye ID numbers for placing calls. It can be set to display video calls in either picture-in-picture or full screen mode and automatically adjusts contrast levels. The wireless connection is 802.11b compliant. Advanced wireless security features include SSID filtering and 64/128/256 bit WEP encryption. The MSRP is $249.
http://www.dlink.com

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Yahoo! BB Extends Contract for UTStarcom's IP-DSLAMs

Yahoo! BB awarded an expansion contract valued in excess of $40 million to UTStarcom for its IP-DSLAM. Shipments on this contract are taking place in support of Yahoo! BB's plan to begin promoting its new 45 Mbps high-speed ADSL service this month, with services expected to launch by the end of January 2004.


As of the end of November, Yahoo! BB was serving some 3.5 million subscribers. The "BB Phone" VoIP service currently has approximately 3.3 million subscribers.


Yahoo! BB introduced 8 Mbps ADSL data service in September 2001, attracting more than 100,000 subscribers in the first month alone. In July 2002, the 8 Mbps service was supplanted by Japan's first 12 Mbps service, which also provided subscribers with a personal mailbox, a homepage, and a wide range of value-added services.
http://www.utstar.com

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Nokia to Open Enterprise Solutions in NYC

Nokia will establish a new corporate office in the New York metropolitan area to serve as the base for Nokia's newly established Enterprise Solutions business group, the CFO's office, parts of different corporate functions and some regional operations. Mary T. McDowell, the recently appointed head of Enterprise Solutions, will lead the global Enterprise Solutions business group from the New York area office. In addition, the majority of the sales and marketing activities of the Multimedia business group's North American operations will be located there.


Nokia currently has some 6.600 employees in the U.S. with the majority working in Irving and Fort Worth, Texas and Mountain View, Californiahttp://www.nokia.com

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Free World Dialup Announces Free VoIP-to-PSTN for the Holidays

Free World Dialup will allow its 85,000 members to call non-subscribers across the U.S. and Canada at no charge from now though 31-December-2003. The service already offered free VoIP calls to other Free World Dialup members.
http://www.freeworldialup.com/

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LindowsOS 4.5 Includes Integrated Free SIP Softphone

The latest release of the Lindows.com operating system (LindowsOS 4.5) includes an integrated SIP softphone client from Xten for calling on the SIPphone network. LindowsOS 4.5's X Lite Plus softphone combined with the SIPphone network gives the user a unique number from which to send and receive calls; it also includes four-way conferencing abilities, as well as 800 number access from any location worldwide.
http://www.xten.com

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CTC Communications Emerges from Chapter 11

CTC Communications, a CLEC based in Waltham, Massachusetts, emerged from Chapter 11 bankruptcy protection and was subsequently acquired by Washington-based Columbia Ventures Corporation (CVC). CTC claims over 10,000 customers and serves over 370,000 access line equivalents in New England.
http://www.ctcnet.com

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UTStarcom Announces $32 million iPAS Contract with China Telecom

UTStarcom signed an expansion contract valued at approximately $23 million with China Telecom for the further deployment of its IP-based PAS (Personal Access System) in Yunnan province. The contract marks the sixth expansion of the PAS network in the Yunnan Province. Currently, UTStarcom's network has 750,000 subscribers, representing 60% of the total PAS users in Yunnan. Upon project completion, the UTStarcom network will have capacity for two million subscribers.
http://www.utstarcom.com

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Sunrise Telecom Introduces VDSL Test Solution

Sunrise Telecom introduced a multi-layer field testing solution for VDSL. Sunrise's SunSet MTT platform now supports copper installation and maintenance applications for VDSL, as well as VDSL customer modem emulation.
http://www.sunrisetelecom.com

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3Com Reports Quarterly Revenue of $182M, up 12% Sequentially

3Com reported quarterly revenue of $182 million, up 12% over the preceding quarter and significantly ahead of the First Call estimate of $167 million. Gross margins were $57 million, or 31% of revenues. Operating expenses were $172 million, including $59 million of restructuring charges. The net loss was approximately $139 million, or $0.37 per share. Some other highlights:

• during the quarter 3Com generated its first revenue from the recently announced router products and the modular Layer 3 Switch 7700 sourced from the Huawei-3Com Joint Venture (JV).



• revenue in the Americas declined 11% sequentially



• revenue in EMEA increased 38% sequentially



• revenue in the Asia Pacific region increased 12% sequentially.

http://www.3com.com

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Bell Canada to invest CDN$170-M in Nortel Networks Optical

Bell Canada confirmed plans to invest CDN$170-million over two years in Nortel Network's optical network equipment. Bell Canada and Nortel Networks will also create an Optical Innovation
Centre in Montreal aimed at accelerating deployment of new IP-oriented optical solutions. It is expected to be operational in the first quarter of 2004.


Under the agreement, Bell Canada will use products in Nortel Networks end-to-end optical portfolio. Specific products include Nortel Networks OPTera Connect HDX optical switch and its Optical Multiservice Edge 6500 platform.
http://www.bell.ca

• In September 2003, Bell Canada announced plans to invest CDN$200 million (approximately US$146 million) over three years in Nortel Networks' IP and multimedia messaging platforms to provide new services to its large enterprise customers. Bell Canada is pursuing a "One Network" approach to the development and delivery of services." http://www.convergedigest.com/Bandwidth/newnetworksarticle.asp?ID=8640

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Global DSL Deployments Reach 55 Million in Q3

Service providers worldwide added over 8.3 million new DSL subscriber in Q3 bringing the installed DSL base to over 55 million lines, according to the latest figures from The DSL Forum and Point Topic. Over 25 million new DSL subscribers have been added globally in the past 12 months, exceeding industry projections by three million subscribers. At the current rate, the installed DSL base is likely to pass 62 million by year's end.


"These figures demonstrate the sustained growth in global DSL uptake all over the world as various countries move towards a mass market status of 20% of phone lines delivering the benefits of DSL broadband to homes and businesses worldwide," said Tom Starr, president of the DSL Forum.


Some highlights of the report:

• Japan continues to lead the world with most installed DSL lines at 9.2 million, followed by the U.S. at 8.2 million and China at 7.8 million.



• China added 2.2 million DSL subscribers in Q3, more than double the next fastest growing market, Japan at 971,400 and the U.S. at 667,700. At this rate, China is expected to overtake Japan soon as the country with the most DSL subscribers.



• Eleven countries had more than a million subscribers at the end of September 2003, five of them in Europe.



• In terms of market penetration, South Korea remains the leading country in the world with more than 30% of the country's telephone lines now proving the benefits of broadband DSL. More than 20% of South Korea's subscribers have now upgraded to VDSL services, demonstrating demand for even greater bandwidth services as the market matures.



• Taiwan, Iceland and Hong Kong, all relatively small markets, are each likely to achieve 20% phone line penetration by the end of 2003.



• Latin America now has 1.393 million DSL subscribers - dominated by Brazil, which has 60% of the region's DSL subscribers at 837,700. However, DSL penetration in Brazil is at 2.16%, ranking it 40th in the world.

http://www.dslforum.org

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China Netcom Selects Alcatel for Beijing Metro Optical Network

Beijing Communications, a subsidiary of China Netcom, awarded a US$20 million contract to Alcatel Shanghai Bell to build a multiservice metro optical network in Beijing. Under the contract, Alcatel will supply its Optical Multi-Service Node, a next generation cross connect and network
management platform. Alcatel will also provide special support to this strategic project by setting up a technical support center in Beijing.
http://www.alcatel.com

• In November 2003, Lucent Technologies announced a contract to supply its LambdaUnite Multi-Service Switch (MSS) and the Metropolis ADM MultiService Mux to Beijing Communication Corporation (BCC), a subsidiary of China Netcom. In June 2003, Beijing Communication Corporation awarded a contract valued at tens of millions of dollars to Lucent Technologies to build an optical network connecting the suburbs of Beijing.

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Nexsan Raises $17 Million for its Storage Solutions

Nexsan Technologies, a start-up based in Woodland Hills, California secured $17 million in venture capital funding for its storage solutions. The company's product line includes an enterprise-class RAID array combining its own ATA technology and high capacity ATA disk drives. Nexsan also recently delivered the "ATAbaby Twins", which offer the flexibility of deploying a system as a local disk-to-disk backup device or at a remote site to support long-distance backup or remote data replication over IP connections. The new funding was led by VantagePoint Venture Partners and included RRE Ventures, Gesfid First Gen-e and a syndicate of individual investors formed by Beechtree Capital.
http://www.nexsan.com

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ITXC Quarterly VoIP Traffic Exceeds Billion Minutes

ITXC has carried its billionth minute of international voice traffic for this fiscal quarter, which ends on 31-Dec-2003. The company's previous high quarter was 999 million minutes in Q2 2003, with total quarterly traffic decreasing during Q3 in part due to the company's tightening of its credit policy and shutting off or restricting traffic from some of its carrier customers. Since the first minute carried in April 1998, ITXC has delivered nearly 10 billion minutes of voice service to carrier customers over its global VoIP network, ITXC.net.


Approximately one third of ITXC's current traffic is originated or terminated through a direct VoIP interconnect.
http://www.itxc.com

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T-Mobile and iPass Sign Roaming Agreement

T-Mobile USA and iPass announced a distribution agreement providing iPass corporate customers with broadband access through the 3,900 Wi-Fi hotspots in the T-Mobile network. The iPass Global Broadband Roaming (GBR) network, the largest virtual network in the world, spans 24 countries with nearly 3,000 Wi-Fi hotspots in 16 countries as well as over 1,200 Ethernet-enabled venues. The deal represents T-Mobile's first Wi-Fi inbound roaming agreement.
http://www.t-mobile.com
http://www.ipass.com

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Equant Managed DSL Access Now Available in 13 Countries

Equant has expanded its Managed DSL Access service to five additional European countries, bringing its total country availability to 13. The managed service is targeted at major multinational corporations interested in extending their corporate IP VPNs to branch offices and retail locations. The service uses IP switches from CoSine Communications and managed Cisco customer premise routers. Equant plans to expand its DSL access to additional countries in 2004.
http://www.equant.com

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Lucent to Resell Salira's EPON in Asia-Pac

Lucent Technologies will resell Salira Optical Network Systems' line of Ethernet Passive Optical Network (EPON) solutions in the Asia-Pacific region. Under the arrangement, Lucent Worldwide Services will provide network design, deployment, maintenance and post-sale services to carrier customers. The companies have completed thorough systems and services integration, and Salira's products are scheduled for live customer trials to begin in 2004.


The Lucent-Salira EPON solution could be used for to deliver broadband services. Salira's optical access platform also provides integrated support for legacy TDM services such as PBX-based voice and T1/E1 leased line access.
http://www.salira.com
http://www.lucent.com

• In October 2003, Salira Optical Network Systems named Ross Bernard Lau as its new president and CEO. Prior to joining Salira, Lau was president and CEO of Qwest Asia. Before that, he was president and COO of Nortel Networks (Asia) Ltd.'s service provider solutions group. Salira has its major operations in Santa Clara, California and Shanghai, China.
• 
  
  Salira has previously disclosed a number of optical access contracts in China, including with GuangZhou Pantong Information Broadband Network (Panyu Cable) and units of China Netcom.

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SBC Selects Alcatel for FTTP Initiative

SBC Communications announced a four-year primary supplier agreement with Alcatel for the SBC Fiber-to-the-Premises (FTTP) initiative. SBC is currently planning further lab testing, followed by field trials in the first half of 2004 that will include single-family residences, apartment and condominium complexes, and small business locations. However, SBC said that actual FTTP deployment depends on results of the final lab testing and field trials, as well as clarification of any regulatory guidelines that would apply to FTTP networks.


Alcatel's designation as a primary FTTP vendor comes after a six-month evaluation process conducted in conjunction with other major telecommunications carriers. The agreement is non-exclusive and financial terms were not disclosed.


"The potential of Fiber to the Premises is enormous, and we are very encouraged by the progress that has been made in development of this technology over the past six months," said Ross Ireland, Chief Technology Officer, SBC Communications.


SBC is currently running Alcatel FTTP solutions in Mission Bay, a mixed-use business/residential community in San Francisco, which will include nearly 6,000 residential units.
http://www.sbc.com

• Speaking at the UBS conference in November 2003, Randall Stephenson, Senior Executive VP & CFO of SBC Communications, said his company does not believe FTTP makes economic sense as an overbuild solution. However, he said SBC would be opportunistic about deploying FTTP in new builds and to existing apartment buildings where it does not need to dig trenches.
• 
  
  In May 2003, BellSouth, SBC Communications and Verizon agreed on a common set of specifications for fiber to the premises (FTTP) local access networks. The common technical requirements is based on the existing ITU BPON standard.

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PCTEL and Broadcom Settle Patent Dispute

PCTEL, a provider of 802.11 mobility software and software-defined radio products, has settled a patent infringement lawsuit with Broadcom. The dispute concerned "soft modems," a technology pioneered by PCTEL in the 1990s, and other voice band modem technology.


Under the agreement, Broadcom will receive a license to all of PCTEL's modem patents, including those related to V.92 technology, and other patent applications recently acquired from Conexant Systems, as well as a conditional covenant not to sue under PCTEL's remaining patents. Additionally, PCTEL will assign to Broadcom two key patents relating to Ethernet technology. Finally, Broadcom has agreed to become a PCTEL Segue Roaming Client customer.
http://www.pctel.com

• In May 2003, PCTEL, a provider of 802.11 mobility software and software-defined radio products, filed patent infringement lawsuits against modem manufacturers Agere Systems, Broadcom, Lucent, and U.S. Robotics Corporation. The suits allege infringement of modem technology developed or acquired by PCTEL. A similar complaint was filed against 3Com in March 2003.
• 
  
  Earlier, PCTEL divested its modem product line to Conexant Systems. In addition to cash consideration, Conexant granted PCTEL ownership of approximately 50 modem related patents.

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Extreme Networks Cuts Expectations for Current Quarter

Extreme Networks expects revenue for the quarter ending 28-Dec-03 to be in the range of $80 to $85 million, a slight decrease as compared to $87.4 million in the previous quarter. The company attributed its lower than expected results, in part, to product constraints. Extreme Networks expects that new orders in the December quarter will increase from the previous quarter and that its book to bill ratio will exceed 1:1. Extreme Networks cited strong early customer response to its recently introduced BlackDiamond 10 Gigabit Ethernet modular switch products and said it expects revenues to increase sequentially in the March quarter.
http://www.extremenetworks.com

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N2 Broadband Closes $10 Million for Cable VOD

N2 Broadband, a start-up based in Duluth, Georgia today announced the completion of a $10 million Series C of expansion financing. N2 Broadband is a supplier of VOD solutions to cable operators. The company claims more than 700 commercial deployments. N2 Broadband plans to use the new funding to expand its "OpenStream" digital services platform for the next generation of capabilities such as on-demand and ITV services; instant provisioning of digital services; and expanded tools for the creation of on-demand content.


The funding round was led by Tudor Ventures with lead existing investor Highland Capital Partners also participating. N2 Broadband has raised a total of $27 million to date. The company said it achieved cash-flow break-even status in 2003.
http://www.n2bb.com

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Toshiba Release SoftPhone

Toshiba America released a softphone for its family of Strata CTX digital business telephone systems. The application extends the features and functionality of Toshiba desktop telephones to laptops or PCs running Windows XP. The SoftIPT SoftPhone, which can be used anywhere users have access to wired or wireless connectivity, is the first integrated product from Toshiba's newly created Digital Solutions Division. Software programmable key enable users to operate the extended feature sets of their desktop telephones, including voice mail access, voice mail broadcasting, message indicator light, call forwarding, call transferring, outbound calling, etc.
End user system pricing for the Toshiba SoftIPT starts under $200 per software license, depending upon system configuration and quantity.
http://www.telecom.toshiba.com

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AFC's TelcoVideo Selected for Idaho Deployment

Project Mutual Telephone Cooperative (PMT) has deployed Advanced Fibre Communications' (AFC's) TelcoVideo and UniversalDSL solutions in key locations within south central Idaho. The non-profit, community-based co-op can now integrate IP video with voice and high-speed Internet services to offer PMT customers a triple-play package in significant parts of its service area. PMT has more than 11,200 access lines, including 3,000 cable TV customers who receive 70 channels of programming over PMT's analog video network. PMT is currently installing a new switched digital headend that is capable of delivering approximately 100 TV channels. This new video network will offer music channels, pay-per-view, network events calendars, local content insertions, video-on-demand, as well as other advanced entertainment services. Financial terms were not disclosed.
http://www.afc.com

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Tyco to Upgrade Telefonica's South American Undersea Cable

Tyco Telecommunications will provide a network upgrade for the Emergia Cable System, Telefonica's undersea fiber optic ring network that connects Central, North, and South America. The network, which Tyco Telecommunications constructed for Telefonica in 2001, is comprised of twelve landing stations connecting the United States, Puerto Rico, Guatemala, Brazil, and Argentina on the East Coast of South America, and Chile, Peru, and Guatemala along the West Coast of South America.


The Emergia ring is the first South American network using 10 Gbps technology to be upgraded. Upon completion, the upgrade will double the existing capacity of the Emergia network to 80 Gbps. The network will be operating at less than 10% of its maximum design capacity of 1.92 Tbps, providing additional upgrade capability to support future growth. Financial terms were not disclosed.
http://www.tycotelecom.com

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UTStarcom Selected for 3G W-CDMA with China Netcom

China's Ministry of Information Industry (MII) has selected UTStarcom to conduct official field trials of its 3G W-CDMA solution in the capital city of Beijing with China Netcom. The selection follows MII's MTNet lab testing from June 2001 to August 2003. The outdoor field trials, conducted by the MII's Research Institute of Telecommunications Transmission (RITT) and 3G Technical Trial Expert Group (3GTEG), were officially announced in November 2003, with testing slated to begin in February 2004. The trial requires each participating vendor to provide a 3GPP-compliant commercial system, including a Radio Access Network with wide geographic coverage, and a Core Network with a full complement of commercial network features.


A total of twelve W-CDMA system vendors/partnerships will participate in the field trials. The outdoor trials are open to all operators, which must provide base station sites and backhaul transport facilities.
http://www.utstar.com

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MCI Signs Hotspot Roaming Deal with Boingo

MCI announced a roaming agreement with Boingo Wireless that provides its customers with remote access via some 2,000 global wireless hot spot access points in addition to its existing 600 U.S. Wi-Fi locations. MCI said it plans to add an additional 3,000 wired and wireless hotspot locations in 2004.
http://www.mci.com
http://www.boingo.com.

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ECI Telecom Launches New Branding Campaign

ECI Telecom launched a new corporate branding campaign to mark the end of a three year restructuring process and its reorganization into a single, unified and focused company.
ECI is now focused on three specific areas in which it offers added-value: Broadband Access, Optical Networking and IP Telephony (through its strategic holding in Veraz Networks).
http://www.ecitele.com

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EMC to Acquire Vmware for $635 Million

EMC Corporation agreed to acquire Vmware, Palo Alto, California-based start-up developing Intel virtualization software, for approximately $635 million in cash. VMware's technology enables multiple operating systems -- including Microsoft Windows, Linux and NetWare -- to run simultaneously and independently on the same Intel-based server or workstation and dynamically move live applications across systems. EMC plans to use the technology to help its customers create a single pool of available storage and computing resources across a heterogeneous infrastructure.


Joe Tucci, EMC President and CEO, said "until now, server and storage virtualization have existed as disparate entities. Today, EMC is accelerating the convergence of these two worlds."http://www.emc.com/http://www.vmware.com/

• Vmware was founded in 1998 and has strategic financing from an investment group headed by Dell Computer Corp. In addition to Dell, this investment group included VERITAS Software, Azure Capital Partners, JPMorgan Partners, and Goldman Sachs Group. Vmware claims some 5,000 corporate customers for its virtualization products.

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Level 3 Expands its Voice Termination Service

Level 3 Communications is significantly expanding the softswitch-based voice termination service it offers to PTTs, inter-exchange carriers and other companies operating in North America and Europe. Wholesale carriers will now be able to hand-off traffic using an IP interface.


The service is being expanded through the use of existing IP ports initially installed by Level 3 to support its (3)Flex data networking service, meaning little incremental capital was required to implement the new capability. The IP interface for voice traffic will initially be available in 14 U.S. cities and four European cities on the Level 3 network by the end of Q1 2004. Level 3 can terminate voice traffic in hundreds of cities across North America.


Level 3 said the new IP interfaces would enable carriers to avoid the high cost of interconnection associated with TDM-based switching. It also enables carriers to offer voice and other services out of region without a significant, up-front capital outlay.


Level 3 Communications first began offering its softswitched-based (3)Voice Termination service in December 1999.
http://www.level3.com

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Sprint Signs Expanded Billing Contract with Convergys

Sprint signed a seven-year agreement under which Convergys will provide billing services for business and consumer wireless subscribers. Convergys has provided billing support to Sprint's wireless consumers since 1996. The new contract covers Convergys' "Infinys" portfolio of convergent, pre-integrated software applications and modules. Infinys' convergent capabilities allow communications companies to bill for a multitude of services on a single platform including wireless, wireline, cable, and broadband. Sprint may use Infinys as standalone solutions or in combination with existing systems to address its specific billing needs. Financial terms were not disclosed. Convergys did not change its previously discussed 2004 financial guidance.
http://www.convergys.com

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XO Receives Financial Boost from Global Crossing

XO Communications received $192.0 million, consisting of $164.8 million in cash and $27.2 million of Global Crossing common stock (12-Dec-03 prices), in exchange for the $158.5 million XO Communications paid to acquire approximately 34% of pre-petition senior debt of Global Crossing.


XO said the cash payment and shares of common stock were distributed by Global Crossing upon its emergence from bankruptcy and represent the recovery on the investment XO Communications made in its earlier effort to acquire all of the assets of Global Crossing. In addition, XO Communications said it retains the rights to approximately 34% of the proceeds, if any, from the pending lawsuit between Global Crossing's bank group and former Global Crossing officers and directors that seeks $1.7 billion in damages.
http://www.xo.com

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Data Connection Announces New Licensing Agreement with Microsoft

Data Connection Limited (DCL) announced that Microsoft has licensed its IP-DLC technology, thereby extending their 15-year old technology partnership. IP-DLC, also known as Enterprise Extender, allows mainframe SNA applications to operate through an IP network. This feature is included in the Beta 2 of Microsoft Host Integration Server 2004, also announced today by Microsoft.
http://www.dataconnection.com

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3Com Unveils Pervasive Network Security Strategy

3Com announced plans to integrate new layers of security directly into the hardware, software and operational components that define the network. The initiative is aimed at small, medium and large enterprise networks. These security overlays include: Layer 2-7 firewall, virtual private network (VPN), authentication, authorization, intrusion detection system and intrusion prevention systems (IPS), anti-virus, security management, and policy.


The security overlays will be integrated across 3Com's networking portfolio. 3Com plans to both develop these capabilities internally and via strategic partnerships with best-of-breed security vendors. As part of the pervasive security rollout, 3Com announced:

• a new software release for its SuperStack 3 Switch 4400 family (that adds Network Login 802.1x support



• a management application that graphically discovers, maps, and displays network links and IP services. Its also supports 802.1x network login, identification of remote authentication dial-in user service (RADIUS) servers and virtual local area network (VLAN) support. Once authenticated, 3Com Network Supervisor Advanced Package can track and identify each user, including which switch they are connected to.

http://www.3com.com

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Cox Launches its First VoIP Service

Cox Communications launched its first VoIP-based cable telephony service in Roanoke, Virginia. The VoIP architecture provides lifeline service, including Enhanced 911 and features such as call waiting, caller ID and voice mail. Cox's self-managed VoIP architecture also supports number portability, thereby enabling customers to switch their existing phone number over to Cox Digital Telephone service.


Cox, which already provides circuit-switched based telephony in 11 other markets, said its Digital Telephone subscriptions have grown 40% in 2003 over the same period in 2002. The other Cox Digital Telephone markets are San Diego, Orange County, Phoenix, Omaha, Connecticut, Rhode Island, Hampton Roads (Virginia), New Orleans, Oklahoma City, Wichita, and Tucson.
http://www.cox.com

• In its Q3 financial report, Cox listed 900,000 telephone customers, up by 73,000 over Q2 2003.

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Brix Offers Service Assurance for Large Enterprise Networks

Brix Networks, a start-up based in Chelmsford, Massachusetts, introduced performance management and service assurance software designed for large enterprise networks. The new "BrixMon" software provides proactive, end-to-end verification of IP-based applications, including VoIP, video, VPN access, and Web services. It provides remote visibility into service performance across the enterprise LAN and WAN, including branch offices, through software-based Brix Verifier Agents or optional hardware Brix Verifiers deployed throughout the network. The solution includes automatic test threshold auditing, compliance analysis, real-time and historical reporting capabilities, storage for performance data, and Application Programming Interfaces (APIs) for integration with various third-party management tools. An optional VoIP test suite provides performance and quality tests for Session Initiation Protocol (SIP), H.323, or Cisco Skinny Client Control Protocol (SCCP) networks. Detailed test results pinpoint key VoIP quality factors, including call setup, media transmission performance, and voice quality.
http://www.brixnet.com

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SAVVIS and HyperFeed Team on Real-time Financial Apps

SAVVIS Communications is launching a new global network distribution service in partnership with HyperFeed Technologies aimed at the low-latency delivery of real-time financial content. SAVVIS' Data Delivery Utility integrates HyperFeed's Managed Exchange Platform Services (MEPS) and provides end-to-end Service Level Agreements (SLAs). For example, the Data Delivery Utility collects raw data feeds from the major trading venues and data sources in North America including: American Stock Exchange, Archipelago ECN, Chicago Board of Trade, Chicago Mercantile Exchange, Island ECN, Montreal Stock Exchange, NASDAQ, New York Board of Trade, New York Mercantile Exchange, NYSE, OPRA, and the Toronto Stock Exchange. These content sources are then dynamically cleansed, normalized, and compressed using HyperFeed technology and delivered to users via SAVVIS' global multicast network. The first North American exchanges will be live on the Data Delivery Utility by the end of 2003, with additional exchanges rolled out globally in the first half of 2004.
http://www.savvis.net

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Netopia Offers 3-D Reach Wi-Fi Kits for DSL and Cable

Netopia introduced two "3-D Reach" Wi-Fi gateway starter kits for use by both cable modem and DSL subscribers. The kits incorporate a Wi-Fi certified 3-D Reach Netopia gateway, Wi-Fi PC Card, and Netopia's WEP Configuration Wizard. Both gateways utilize Netopia's "3-D Reach" technology, which leverages a dual-tuned diversity antenna system to significantly boost the range of the Wi-Fi network without increasing the antenna power. The gateway design also shields the ADSL subsystem from interfering with the radio components. Netopia said its 3D Reach overcomes the coverage limitation often faced by consumers if their gateway is located on a different floor from their PC (for example, the gateway is in an upstairs office when the user is trying to access the Internet from the den downstairs). The gateways also include WEP security features that are auto-configured and enabled by default. Netopia has been shipping the gateways through its service provider accounts. The new Netopia Wi-Fi Starter Kits will now be offered through distributors, eCommerce stores, service providers, and select retail outlets worldwide starting in January 2004.
http://www.netopia.com/3DReach

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SBC Metro Ethernet Offering Powered By Cisco 7600 Series Routers

Cisco 7600 Series routers will be used for the new SBC Metro Ethernet OPT-E-MAN service announced last week. Cisco said the OPT-E-MAN service will be powered by a Cisco equipment-based edge-to-edge network built on an MPLS core. Financial terms were not disclosed.http://cisco.com/go/7600

• Last week, SBC Communications announced a major expansion of its metro optical portfolio with the launch of switched Ethernet, Gigabit Ethernet, and enhanced Storage Area Networking (SAN) services. The new services are aimed at medium and large-sized enterprises, as well as government, education and medical organizations that need substantial network bandwidth in metropolitan areas. The rollout includes:
  
  
  "OPT-E-MAN" -- a new carrier-class switched metro Ethernet service offered at speeds ranging from 10 Mbps to 1 Gbps. SBC initially is offering it in 14 markets.
  
  "GigaMAN" -- an existing point-to-point Ethernet service that is being enhanced through the availability of Ethernet-over-SONET, which is offered at interface speeds of 100 Mbps or 1 Gbps. SBC described the EoS platform as more robust, scalable and reliable.
  
  "FibreMAN" -- a new fully-managed, point-to-point dedicated storage networking service. It can be used to transfer data to and from off-site storage facilities, such as an Internet data centers, at speeds of 1 or 2 Gbps using the Fibre Channel protocol. The service will be available across the traditional 13-state SBC territory.

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Sonus Enhances its Open Services Architecture

Sonus Networks announced several enhancements to its Open Services Architecture (OSA) designed to enable a new concept of Network Border Switching. Sonus said the latest Release 5.1 of the company's GSX9000 Open Services Switch and Insignus Softswitch eliminates the need for multiple partial solutions by providing basic network border switch functionality, including:

• Network Address Translation (NAT) and topology hiding



• Access control via pinhole firewall



• Denial of Service (DoS) protection



• Bandwidth and QoS theft protection



• Signaling-based admission control (SIP or H.323)



• SIP and H.323 Proxy, back-to-back and interworking functions

The network border switching capabilities use the Insignus Softswitch to enable carriers to control firewall pinholes and routing with options based on IP addresses as well as call-related information such as calling subscriber, called subscriber, applicable calling plan and others.
Sonus also said its solution is able to resolve the media incompatibilities that can arise in interconnecting IP devices, such as different codecs, different voice packet sizes and protocol incompatibilities (raw fax vs. T.38, DTMF vs. RFC2833). It also provides support for SIP-T, which carriers typically use when peering with another carrier via IP, allowing end-to-end call signaling via embedded ISUP information.
http://www.sonusnet.com

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Siemens to Resell IP Unity's Media Server

Siemens ICN and IP Unity have signed a Master Reseller Agreement to offer integrated solutions based on the Siemens SURPASS hiQ 8000 Softswitch and the IP Unity Harmony6000 Media Server. This agreement encompasses a broad range of IP messaging, conferencing, Interactive Voice Response and related next-generation communication solutions, to be integrated, distributed and serviced by Siemens.


IP Unity's Harmony6000 Media Server delivers high speed, volume media processing and carrier-class IP telephony services like audio/web conferencing, messaging, interactive voice response, auto-attendant and prepaid services.
http://www.ip-unity.com

• In October 2003, Siemens Venture Capital made a strategic investment in IP Unity, bringing the company's private capitalization to $70 million. At the time, the company said it had more than 100 Media Server platforms deployed in carrier networks. The customer list includes Cbeyond, Comcast, Level 3 Enhanced Services, and Liberty Media among others. IP Unity is based in Milpitas, California.

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Agilent Introduces Small Fast Infrared Transceiver

Agilent Technologies announced a small, fast infrared (FIR) transceiver for mobile phones, personal digital assistants (PDAs) and digital cameras. The fast infrared transceiver supports the IrDA (Infrared Data Association) low power specification and operates at transmission speeds ranging from 9.6 kbps to 4.0 Mbps. The device measures 2.5 mm in height, enabling it to be used in clamshell and ultra-slim handsets. Agilent said the infrared port could be used to off-load data from newer megapixel camera phones or other handheld devices. The transceiver also supports infrared financial management (IrFM) and other data transfers with a link distance of up to 50 cm. The IrFM point-and-pay profile is designed to enable users to perform wireless financial transactions between a mobile device such as a cellular phone or PDA and a point-of-sale terminal or ATM equipped with an IR port. It supports the use of most financial instruments, including credit and debit cards, and provides digital receipts.
http://www.agilent.com

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Motorola Expands its Canopy Wireless Broadband Portfolio

Motorola is introducing a new 2.4GHz "Canopy" wireless broadband system designed for ISPs and for enterprise and private network operators that may be looking to add capacity to cover larger geographic areas or to extend reach to customers in difficult terrain. The 2.4GHz point-to-point backhaul modules can be used as a low-latency Ethernet bridge between any two networks or between a network and remote user. There is also a 2.4 GHz 128-bit Advanced Encryption Standard (AES) product available. Motorola said that in international markets where other frequencies are limited, the 2.4GHz can become the critical second band to complement solutions in other bands, such as 5.7GHz ISM band or even a licensed band such as 3.5GHz.


The 2.4GHz backhaul modules are offered in four models: a 10 megabit per second (Mbps) model and a 20 Mbps model, with AES models available for each. The 10 Mbps backhaul model operates with a raw data rate of 10 Mbps with an approximate throughput of 6 Mbps and has a maximum range of about 35 miles when reflectors are used. The 20 Mbps backhaul module operates with a raw data rate of 20 Mbps with an approximate throughput of 14 Mbps and has a maximum range of about 35 miles when reflectors are used. In point-to-point or point-to-multipoint configurations, the uplink/downlink ratio is configurable by the operator.
http://www.motorola.com

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Japan Reaches 9.9 Million DSL Lines

More than 320,000 new DSL accounts were added in Japan during November, according to the Ministry of Public Management, Home Affairs, Posts and Telecommunications. The figures represent a slight decrease over the pace of DSL activations in October 2003, when some 360,000 new DSL accounts were added. About 340,000 DSL activations were added in September.


As of 30-Nov-2003, there were some 9,911,306 DSL lines in service, compared to 5,117,867 at the end of November 2002.


In the NTT West territory there are 4,385,551 DSL lines, of which 1,623,763 DSL lines are provided by the incumbents (NTT West and NTT East) and 2,761,788 lines are provided by other carriers.


In the NTT East territory there are 5,525,755 DSL lines, of which 2,021,945 lines are provided by the incumbents (NTT West and NTT East) and provided 3,503,810 lines by other carriers.
http://www.soumu.go.jp/joho_tsusin/eng/Statistics/dsl/index.html

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ARRIS Sees Stronger Cash Position

ARRIS announced that due to its strengthening cash position and balance sheet, it is terminating its bank credit facility. This action will save approximately $900,000 annually in fees and other costs. The termination will require that the company write off approximately $2.3 million in non-cash unamortized fees related to the establishment of the facility.


In addition, ARRIS is discontinuing the sale of its Digicon "S" series and Digicon "T" Series model connectors due to the unfavorable outcome of a patent infringement lawsuit. The products accounted for approximately $13 million of annual revenues. ARRIS said it does not expect the decision will have a material effect on its overall financial results for the current quarter or future periods.
http://www.arrisi.com

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DIRECTV Latin America Files Chapter 11 ReOrg Plan

DIRECTV Latin America filed a proposed Plan of Reorganization and Disclosure Statement with the its U.S. bankruptcy court. The plan reflects an agreement reached between DIRECTV Latin America, its majority owner, Hughes Electronics Corporation, and the official committee of unsecured creditors Under the plan, Hughes will receive more than 80% percent of the reorganized company's equity upon its emergence from Chapter 11 in consideration of its allowed claim for debtor-in-possession financing, as well as for assets to be contributed to the reorganized company and certain other claims. The company hopes to emerge from the Chapter 11 process in early 2004.


In its five year business plan, DIRECTV Latin America projects that its region-wide subscriber base will increase from approximately 1.5 million subscribers at the end of 2003 to 3 million at the end of 2008. The business plan also projects that the company will begin to generate positive cash flow in 2005.
http://www.directvla.com

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Convergys Acquires Wireless Billing Contracts from ALLTEL

Convergys Corporation is acquiring certain billing and customer care assets from ALLTEL Communications Inc., a subsidiary of ALLTEL, for $37 million. The price represents approximately one time the anticipated 2004 revenue for the contracts. Additional earn-out payments are possible based on future performance.


As part of the acquisition, Convergys will begin providing billing services to more than 10.5 million additional wireless and wireline subscribers, and will add several new corporations to its list of billing and customer care clients including Cingular, Centennial Communications, and Commonwealth Telephone.


Dave Dougherty, Executive Vice President, Global Information Management, Convergys, said the "strategic acquisition provides us with additional wireless and wireline market share, important new clients, and fuels the growth of our Professional Services business."http://www.convergys.com

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Avvio Networks Announces New 10 Gigabit Products

Avvio Networks, a start-up based in Lowell, Massachusetts, began shipping an OC192 multiplexer with G.709 encoding and widely tunable DWDM transmitter. The device is a quad OC48 to OC192 multiplexer offering LR DWDM on the line side and SR, IR an LR interfaces on the client side at 1310nm or 1550nm. It is also available with 1310nm, 1550nm or DWDM interfaces on the line side. In addition, Avvio Networks is readying a 10 Gbps repeater for shipment.
http://www.avvionetworks.com

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SBC Uses Cash Flow to Increase Dividend by 10.6%

The Board of Directors of SBC Communications approved a 10.6% increase in the company's quarterly dividend, from 28.25 cents a share to 31.25 cents a share, or 12 cents a share on an annual basis, from $1.13 to $1.25 a share. The board also authorized the buyback of 350 million common shares representing approximately 10% of SBC shares outstanding.


SBC Chairman and CEO Edward E. Whitacre Jr. described the actions as "a balanced approach that will allow us both to fund important growth initiatives over the next few years and return value directly to our shareowners." He said using the company's solid cash flows for these purpose reflected its conservative financial management.
http://www.sbc.com

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Velio Sells its High Speed IO Technology to Rambus

Rambus agreed to acquire certain high speed signaling assets from Velio, a start-up based in Milpitas, California. The deal, which was valued at under $13 million, includes related Velio's patent portfolio, the existing Velio licensing business, and a number of Velio personnel. Rambus said that by adding Velio's high-speed signaling technologies to its serial interface offerings, it would accelerate its ability to deliver advanced chip-to-chip interface solutions.


Velio, which is now solely focused on its switch fabric and SerDes products, said it will become a customer of Rambus. The Velio product family includes its Zeus STS-1 Grooming Switches, which feature densities up to 180 Gbps (72x72 STS-48) streams; Quad 1.0-3.2 Gbps SerDes devices, featuring redundancy for storage and Ethernet networks, and an Octal 1.0-3.2 Gbps Serial Repeater/Retimer, for Ethernet and Fibre Channel applications.
http://www.velio.com
http://www.rambus.com

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T-Systems Launches Global MPLS-based Voice Services

T-Systems, Deutsche Telekom's IT and network integration business, has extended its global voice services reach throughout North America using Level 3's network. T-Systems will rollout a carrier-grade, MPLS-based voice and data service between Europe, Asia and the United States. The service is targeted at large enterprises with global operations. T-Systems can offload voice traffic from enterprise customers to Level 3 through a standard IP- port. The traffic is carried through Level 3's softswitch-based interconnections.
http://www.t-systems.com

• In October 2003, T-Systems International selected Lucent Technologies to increase the capacity of the North American element of its international backbone ("Telekom Global Net") from 2.5 Gbps to a full coverage 10 Gbps network. Specifically, Lucent will provide T-Systems with its LambdaUnite MultiService Switch (MSS), a next generation optical transport system and switch, with an element capacity of 320 Gbps. Further capacity expansion to a multiple 10 Gbps or even 40 Gbps meshed network is possible.



• In June 2003, T-Systems, Deutsche Telekom's IT and network integration business, opened a new headquarters for the Americas in New York City. The carrier is targeting network solutions for the North American operations of multinational corporations that already do business with T-Systems in Europe.

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European Commission Sees Active Role in Shaping Telecom Competition

The European Commission will continue to take an active role in shaping the relationship between regulation and competition in the electronic communications sector, said Mario Monti, European Commissioner for Competition Policy, speaking at the European Competitive Telecommunications Association (ECTA) conference last week in Brussels.


While acknowledging that electronic communications are increasingly the engine for overall economic growth, Monti highlighted two areas in telecom where competition has not taken hold. First, local loop unbundling is not taking off across the EU. Second, as to development of broadband in many EU countries, the dominance by the incumbent of the local loop is being extended into both the wholesale and the retail broadband markets.


Monti said "the aim of regulation is, or should be, creating a pro-competitive environment in the long term, by remedying the most visible market failures in each relevant market." However, he said he believes there is not necessarily a contradiction between access-based and facilities-based competition. In the short term, some incentives should be provided to help competition take hold, but in the long term, "the regulatory framework should privilege operators which base their competitive advantage on building their own infrastructure."


Monti cited several ways in which the EC is helping to shape the market. For instance, the EC has taken the view that bit-stream services are a useful complement to local loop unbundling, but also that they must be characterized as "access services" -- which are differentiated from end-to-end services. As for concrete actions, Mario noted that the EC and its National Regulatory Authority (NRA) partners have worked on 31 cases, 17 of which have already been closed. Examples include a decision in May 2003 on Deutsche Telekom's pricing strategy for local access to the fixed telephony network, and a decision in July 2003 regarding the predatory retail ADSL pricing strategy of France Telecom's subsidiary Wanadoo.http://europa.eu.int/

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UK Broadband Continues at 40,000 Sign-Ups per Week

The number of UK households and small businesses with broadband connections has passed the 3 million milestone, according to Oftel, the official telecom regulator -- double the number from this time last year.


Broadband adoption rates are now running at record levels and ahead of previous predictions, with more than 40,000 households and businesses a week installing a broadband connection. Approximately one in five of all UK homes with Internet access now have a broadband connection.


ADSL connections continue to exceed cable modem connections by a factor of 3 to 1. There are more than 100 ISPs offering ADSL. Around 80% of the UK has access to broadband via DSL and around 45% via cable modem.


Total ADSL connections: 1,674,000

Total Cable modem connections: 1,331,000 (ntl represents 931,000 and Telewest represents 400,000)http://www.ofcom.org.uk

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SBC Launches Metro Ethernet, EoS and SAN Services

SBC Communications announced a major expansion of its metro optical portfolio with the launch of switched Ethernet, Gigabit Ethernet, and enhanced Storage Area Networking (SAN) services. The new services are aimed at medium and large-sized enterprises, as well as government, education and medical organizations that need substantial network bandwidth in metropolitan areas. The rollout includes:

• "OPT-E-MAN" -- a new carrier-class switched metro Ethernet service offered at speeds ranging from 10 Mbps to 1 Gbps. SBC initially is offering it in 14 markets.



• "GigaMAN" -- an existing point-to-point Ethernet service that is being enhanced through the availability of Ethernet-over-SONET, which is offered at interface speeds of 100 Mbps or 1 Gbps. SBC described the EoS platform as more robust, scalable and reliable.



• "FibreMAN" -- a new fully-managed, point-to-point dedicated storage networking service. It can be used to transfer data to and from off-site storage facilities, such as an Internet data centers, at speeds of 1 or 2 Gbps using the Fibre Channel protocol. The service will be available across the traditional 13-state SBC territory.

Now that it has regulatory approval to offer long distance services in all 50 states, SBC noted that it is able to match these metropolitan area services with its nationwide data and IP connectivity.
http://www.sbc.com

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CIENA Posts Revenue of $70.6 million, up 3% Sequentially

CIENA reported quarterly revenue of $70.6 million, a 3% sequential increase and an increase of 14% from the same period a year ago. CIENA's reported net loss for the quarter was $115.0 million, or a net loss of $0.24 per share. For the full fiscal year ending 31-October-2003, revenue totaled $283.1 million, a 22% decrease from fiscal 2002. On a GAAP basis, CIENA's net loss for the fiscal year was $386.5 million, or a net loss of $0.87 per share, compared to the previous year's GAAP net loss of $1.6 billion, or $4.37 per share.


The company said it expects revenue in its current first fiscal quarter to be flat to up as much as 10% compared to the preceding quarter.
http://www.ciena.com

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Covad and AT&T Bundle DSL in 3 More States

Covad Communications and AT&T have extended their bundle of DSL + local/LD voice to residential customers in 3 more states: Illinois, Ohio and Wisconsin. AT&T said it plans to offer Covad's DSL service in all 24 states where it provides bundled local and long distance residential services.
http://www.att.com

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Deutsche Telekom's GSN Project Tests ADVA's Metro Optical

Deutsche Telekom has tested ADVA's FSP 3000 metro optical platform as part of its Global Seamless Network (GSN) Project in Darmstadt and Berlin, Germany. ADVA Optical Networking, in conjunction with Extreme Networks, showcased next-generation Metro Ethernet applications. ADVA's FSP 3000 systems are deployed in a three-node ring configuration together with a remote FSP 3000 Slimline network element, which is connected to the ring through an Automatically Switched Transport Network (ASTN).
http://www.advaoptical.com

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MCI's John W. Sidgmore Dies at Age 52

John W. Sidgmore, former WorldCom chairman and CEO, passed away at age of 52 of complications associated with acute pancreatitis.


Sidgmore was known for his leadership of UUNET Technologies, which was acquired by MCI. He became President and CEO of WorldCom in April 2002, following the resignation of Bernie J. Ebbers and revelations of the accounting scandal at the company. He led WorldCom through subsequent congressional investigations and set the course for a "New WorldCom" through a Chapter 11 restructuring. He stepped down in November 2002, handing the reins over to Michael Capellas.


In a statement, MCI said: "We are deeply saddened by John Sidgmore's passing. He was a true Internet visionary, leader and friend who had an uncanny ability of bringing joy into people's lives."http://www.mci.com

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AT&T Readies its Consumer Voice Launch

AT&T will launch a new set of VoIP services to business customers and consumers beginning in Q1 2004. For consumers, AT&T has been running a customer trial of VoIP services over broadband connections since October in three states. Due to the success of the trial, AT&T said it would move ahead aggressively to offer the service in the top 100 markets across the country. The service will be run from data centers on each coast, and will provide unlimited local and long-distance services. Key features will include online voicemail, do not disturb, call logging, call forwarding and personal conferencing. Pricing was not disclosed.


Earlier adopters are expected to include work-at-home, college students, teenagers and other tech-savvy consumers. AT&T plans to offer a similar service for small businesses.


AT&T said it is well positioned for VoIP because it is the largest carrier of IP traffic in the world, carrying one petabyte a day over its network. Its consumer distribution channels are the largest in the industry, as AT&T claims 40 million customer relationships. The company noted that there are 23 million broadband accounts in the U.S. currently.


"VoIP is the most significant, fundamental new technology shift in telecommunications in decades and will deliver tremendous value to all customers by leveraging the efficiencies and advanced communications capabilities of IP-based technology," said David Dorman, AT&T's Chairman and CEO.
http://www.att.com

• Beta test Sign-up page for AT&T's consumer VoIP service. http://beta.ataclick.com/



• In September 2003, AT&T first disclosed plans for a "bring your own access" consumer VoIP service in remarks by David Dorman at the Morgan Stanley Global Media & Communications Conference in Boston.

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"We're on the verge of a VoIP revolution..." AT&T's David Dorman

The telecom industry is undergoing a radical transformation that is "like rebuilding an airplane in flight," said AT&T Chairman and CEO David Dorman at the Credit Suisse First Boston Media and Telecom Week conference in New York. Dorman argued that AT&T is best positioned as provider of choice in this new environment due to its scale, financial strength and industry leading brand, customer base and product portfolio.


Regarding the company's newly announced VoIP strategy for businesses and consumers, Dorman observed that "convergence is creating an increasingly complex operating environment for service providers, which must offer multiple protocol management and expertise -- and be able to transition legacy networks and systems to the leading edge without sacrificing current performance." He continued "....we're on the verge of a VoIP revolution. AT&T -- more so than others -- has the skills, scope and scale to effectively build the VoIP utility."


AT&T considers itself a "voice application service provider" that enables any application to work across any geography, said Dorman. "We intend to be the market leader in VoIP services"


Dorman laid out four layers of convergence that are transforming the business:

• Standalone services such as local and long distance voice are converging into bundled offers



• Circuit switched technologies are converging into packetized platforms



• Multiple legacy transport networks are converging into unified networks based on an IP core



• Multiple, manually intensive billing and provisioning systems are converging into unified, automated systems

AT&T has allocated $3 billion for CAPEX in 2004. The company plans to retire 270 legacy systems by 2005. Over 100 such systems were retired this year.


Dorman said business customers are "responding well" to an aggressive new pricing strategy introduced in November. AT&T is also looking forward to an improved economic and industry environment in 2004.
http://www.att.com

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ECI Telecom and Nortel Networks Team on Broadband Access Solutions

ECI Telecom has entered into a strategic relationship with Nortel Networks to deliver broadband access networking solutions capable of triple play services (voice, video and data). The agreement provides a framework for the two companies to cooperatively engage in sales and marketing activities that leverage Nortel Networks' global experience with ECI's broadband access products and market presence.
http://www.ecitele.com

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ST Sees Momentum in UK's Free-to-View Digital Terrestrial TV

STMicroelectronics has shipped a total of more than 2.5 million chipsets for the Digital TV Receivers, or Digital Converter Boxes (DCBs) as they are also known, that allow consumers in the UK to receive Freeview digital terrestrial TV channels on their analog TV receivers. The Freeview service offers UK consumers free digital TV and radio channels, as well as a range of interactive services and a sophisticated Electronic Program Guide, all via a standard TV aerial. Over 20 manufacturers are currently supplying digital converter boxes to the UK market.
http://www.st.com

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RADVISION Announces New H.323 Toolkit

RADVISION introduced a new H.323 Protocol Toolkit for use in developing products supporting both IPv4 and IPv6 protocols. H.323 uses H.245 as the call control protocol. This functionality, which is similar to the use of SDP in SIP-based communication, enables communicating devices to establish multimedia channels based on common capabilities. What differentiates H.245 from SDP is its support of multi-party session operation for voice, video, and data collaboration between multiple end points. These include support of a high ranked terminal (called Chair Control) that can control others and also the sharing of voice, video, and data channels between multiple parties during a conference.


The new RADVISION H.323 Protocol Toolkit v4.2 features version 10 of the H.245, which was ratified on July 2003. The new version adds support for the useful dual-video feature, enabling endpoints to switch dynamically during a session between camera and another resource such as Power Point presentation or a video clip. It also adds protection against Denial of Service (DOS) attacks.
http://www.radvision.com

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O2 UK Selects Cisco 12000 GSRs

O2 UK, the British subsidiary of the European mobile operator mmO2, is deploying an MPLSbackbone based on Cisco 12000 Series Routers. O2 UK currently runs several IP networks to manage systems such as billing, WAP (Wireless Application Protocol) and the company intranet, all of which will be converged over the common MPLS backbone. In addition, O2 is evaluating Any Transport over MPLS (AToM), a Cisco innovation, which could help enable it to overlay its existing ATM and Frame Relay networks together with its Ethernet and IP-based networks over the single MPLS-based backbone. In addition to the Cisco 12000 Series routers, O2 is using Cisco 7500, 7200, 3600 and 2600 series routers, Catalyst 6500 Series switches, Cisco AS 5300 series Universal Gateways as well as Cisco MGX 8850 Multiservice switches. Financial terms were not disclosed.
http://www.cisco.com

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EZchip Announces Production of its Latest 10 G Processor

EZchip Technologies has commenced commercial production of its second generation NP-1c 10-Gigabit 7-Layer network processor. The device has been sampling since May 2003, and has undergone comprehensive testing at EZchip's facilitates and by select customers. EZchip claims 30 customers worldwide for the device, half of which are large system vendors.


NP-1c is a single-chip 10-Gigabit 7-layer full-duplex network processor providing fully programmable packet classification, modification, forwarding and policing at wire speed. The device integrates processing and classification functions on a single chip, eliminating the need for hungry CAMs and SRAMs. Its layer 2-7 processing could be used for mainstream applications such as VPLS/MPLS/IPv4/IPv6 for the metro, edge and core, and also for processing-intensive layer 7 products such as load balancing switches, storage gateways, firewalls and other content aware devices.
http://www.ezchip.com

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Cedar Point Names CEO

Cedar Point Communications, a start-up based in Derry, New Hampshire, named Andy Paff as President and CEO. He joins Cedar Point after three years with Broadband Services, Inc., where he served as CTO. Previously, he had held senior positions with Antec (now Arris) and Worldbridge Broadband Services. Cedar Point's SAFARI C³ Media Switching System is an open, standards based, next generation voice switching system for cable system operators.
http://www.cedarpointcom.com

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BellSouth Sells its Share in Danish Carrier to Telenor

BellSouth agreed to sell its 46.5% interest in the Danish wireless provider, Sonofon, to Telenor for approximately US$600 million. Telenor currently owns 53.5% of Sonofon and shares joint control of the company with BellSouth. The deal is expected to close by the first half of 2004, pending regulatory approval by the Danish Telecom Agency and the appropriate European authorities. Upon closing, BellSouth expects to record an after-tax gain of approximately $285 million in the first half of 2004.
http://www.bellsouth.com

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Russian Carrier Deploys Terawave's PON

Firma Svyaz, a Russian service provider and systems integrator in the region of Krasnodar, has deployed Terawave's Fiber To The Premises (FTTP) system. The optical access network is being used to deliver Ethernet, E1 and voice services to government agencies, educational institutions and corporate businesses. Financial terms were not disclosed.
http://www.terawave.com

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Siemens Chosen for Nigerian Nationwide Optical Net

Siemens was awarded a contract valued at hundreds of millions of EURs to deploy a nationwide optical network and GSM mobile network in northern Nigeria for Globacom Limited, the country's second largest carrier. The contract covers GSM base stations and switching technology to service a million subscribers within the coming months. Siemens ICN also will set up an optical network covering a length of over 2,700 km using its latest SURPASS hiT 7070 platform.
http://www.siemens.com

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Cisco's John Chambers Offers Optimistic Outlook

Business confidence is definitely improving and enterprise customers will boost their IT spending in 2004 in single digits rates, said John Chambers, Cisco Systems' CEO, speaking at the company's annual analyst meeting in Santa Clara, California. The new spending will be tied into productivity gains, said Chambers, because he believes there is a clear correlation between networking and improved business processes. The hottest areas for spending include IP telephony, optical networking, security, storage, wireless LANs and home networking. Each of these areas, Chambers believes, will grow to be $1 billion markets for Cisco. In IP telephony, Cisco plans to continue to build its ecosystem of partners. Chambers noted that the average corporate PBX is now nine years old and that many companies will be looking for the efficiency boost of a converged network. A webcast of the event is online.
http://www.cisco.com

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China Mobile selects Alcatel's Colorlock Fiber for Backbone

China Mobile, the country's largest mobile service operator, has chosen Alcatel's Colorlock single mode optical fiber for the construction of part of their national backbone network. Alcatel will supply approximately 60,000 kilometers of Colorlock fiber for a backbone connecting the cities of Jinan, Qingdao and Yantai in China's Shandong Province. Financial terms were not disclosed.
Alcatel's Colorlock fiber, fully compliant with the ITU's G.652 standard, has been optimized for long-haul and metropolitan applications.
http://www.alcatel.com

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Alcatel to provide Additional 1 Million DSL lines to China Telecom

Alcatel Shanghai Bell was awarded a contract to supply China Telecom with more than 1 million additional DSL lines. These contracts follow the earlier China Telecom orders for nearly one million lines announced in July 2003. The contract covers the delivery of the Alcatel 7300 Advanced Services Access Manager (ASAM) to China Telecom subsidiaries in 18 provinces and municipalities in southern China, including Shanghai, Sichuan, Jiangsu, Hubei, Guizhou, Zhejiang, Guangdong, Fujian and Shaanxi, all of which are experiencing fast growth in the number of broadband users.
http://www.alcatel.com

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China Telecom Extends ADSL Contract with Nokia

China Telecom has extended an existing contract with Nokia for the supply of DSL equipment. The current agreement covers the supply of equipment for 2004 and is a supplement to the frame agreement signed in June 2003. Delivery and implementation have already begun. The contract covers the Nokia D50 as well as the Nokia D500 next-generation multi-service access platform and related services.
http://www.nokia.com

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Cisco Scales the IP/MPLS Core

Cisco Systems announced significant enhancements to its core and edge routing portfolio, including:

• new Cisco 12800 Routers, a 40 Gbps-per-slot system with complementary higher density OC-192/STM-64 and OC-48/STM-16 line cards that use the greater system capacity. The new platform supports all available Cisco 12000 Series line cards.



• new Cisco 12010 and 12006 Routers, which are 2.5 Gbps-per-slot systems offered in 10- and six-slot chassis. When coupled with the Cisco IP Services Engine (ISE) line card, the new platforms support critical IPv4 and IPv6 features such as QoS and multicast for delivering premium data and real-time voice and video services. The new chassis support all existing 2.5-Gbps line cards and can be upgraded to a 10 Gbps systems through a software key.



• a new Cisco 12000 Series Performance Route Processor-2 (PRP-2) that improves route scalability by doubling CPU performance, and increasing memory for large route tables to support up to 4 million routes.



• a new Cisco 12000 Series 1-Port Channelized OC-12c/STM-4c (DS1/E1) POS ISE Line Card that enables customers to combine dense channelization functionality for low-speed termination with high-density, high-performance OC-192/STM-64 and OC-48/STM-16 interfaces in a single chassis.



• a new Cisco 12000 Series 4-Port OC3/STM1 ATM ISE Line Card that delivers extensive traffic queuing, shaping and congestion management hardware features and transports ATM over MPLS, providing service providers an opportunity to converge ATM core traffic over an MPLS backbone.



• a new Supervisor Engine 720-3BXL system processor for the Cisco 7600 Series that enables additional Layer 2 and Layer 3 MPLS VPN and IPv6 services, and greater scalability.



• an Enhanced FlexWAN module that doubles the service performance while using existing Cisco 7200 and Cisco 7500 port adapters.

Comcast is using the latest additions to Cisco's core and edge routing portfolio to introduce new services, including higher speed Internet access, video on demand (VoD), and VoIP.
http://www.cisco.com

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Telkom Kenya Selects DIRECWAY for Broadband Satellite

Telkom Kenya (TKL), the national Kenyan telephone network provider, has purchased a DIRECWAY broadband satellite network from Hughes Network Systems, including a hub earth station and associated remote satellite terminals. The new Ku-band hub, which is located in Nairobi, is capable of providing broadband services across the entire country. Financial terms were not disclosed.
http://www.hns.com
http://www.telkom.co.ke

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Qwest Launches Consumer VoIP in Minnesotta

Qwest Communications announced the first of a phased deployment of VoIP services to residential customers in Minneapolis-St. Paul, Minnesota, making it the first RBOC to offer such a service. It will include a number or Web features, such as online voicemail, call logs, contact lists, call forwarding, etc. Qwest said it plans to provide VoIP services to additional residential and small business customers as well as to medium and large business customers during the first half of 2004.
http://www.qwest.com

• In October, Judge Michael Davis of the U.S. District Court of Minnesota ruled that Vonage is "an information service" provider and that it should not be regulated by state laws or the Minnesota Public Utilities Commission. In September, the Minnesota Public Utilities Commission (MPUC) had issued an order for Vonage to comply with laws that govern telecommunications companies. The U.S. District Court rejected the MPUC's "quacks like a duck" argument, which essentially held that because Vonage's customers make phone calls, Vonage's services must be telecommunication services.
  

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Intel to Combine Communications Groups

Intel is combining its communications-related businesses into a single organization: the Intel Communications Group (ICG). Previously, the company's communications activities were divided between ICG and the Wireless Communications and Computing Group (WCCG). The newly combined organization will be headed by Sean Maloney, Intel executive vice president and general manager of ICG. ICG will assume WCCG's product portfolio in addition to its current focus on network processors, wireless LAN chipsets, gigabit networking solutions, network cards and related infrastructure technologies. WCCG products include processors based on Intel XScale technology along with chipsets, reference designs, software and other technologies built around the Intel Personal Internet Client Architecture (Intel PCA). Products also include Intel's flash memory business and digital signal processing activities.


"We continue to drive the convergence of computing and communications through our product lineup, and with this we see wireless local area networking and wide area cellular technologies coming together," said Intel CEO Craig Barrett. "Consolidation gives us better product planning and customer focus in these strategically critical areas going forward."


Separately, the company announced that Ron Smith, Intel senior vice president and general manager of Intel's WCCG unit, will retire early next year.
http://www.intel.com

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Spirent Adds PPPoE Testing for its Avalanche

Spirent Communications announced new software for its Avalanche product line that enables equipment manufacturers and service providers to effectively test real application traffic running over Point-to-Point Protocol over Ethernet (PPPoE). The solution could be used to test Video on Demand (VoD), bandwidth on demand, premium services and differentiated service offerings from an end-user perspective. The PPPoE testing feature in the new Network Edition 6.1 software release offers high rates of PPP session setups, large user handling capabilities, configuration for multiple types of common authentication and the ability to simulate multiple classes of users and measure the quality their user experience as defined by application-specific metrics. The solution supports a wide range of applications over PPPoE, including web browsing, video streaming, file transfer and e-mail access.


Spirent's Avalanche platform can generate in excess of 50,000 HTTP requests per second, and supports HTTP/1.0, HTTP/1.1, HTTPS, RTSP/RTP (Apple QuickTime), RealSystem streaming, Microsoft Windows Media 8 and 9 Series, SMTP, POP3, DNS, Telnet and FTP. In addition, Avalanche can generate Distributed Denial of Service attack traffic inline with any mix of multi-protocol traffic.
http://www.spirentcom.com/avalanche

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Global Crossing Emerges From Chapter 11

Singapore Technologies Telemedia (ST Telemedia) consummated its acquisition of Global Crossing, enabling the a newly restructured Global Crossing to emerge from Chapter 11 proceedings. ST Telemedia invested $250 million in Global Crossing for a 61.5% equity share of the company. In addition to its $250 million equity investment, ST Telemedia has agreed to purchase $200 million in senior secured notes that originally were to be distributed to former creditors. Under the final, amended plan of reorganization, the $200 million cash injection by ST Telemedia was used by Global Crossing to pay its creditors.


As a result of the bankruptcy process, Global Crossing's long-term debt and convertible preferred stock was reduced from roughly $11 billion at the end of 2001, including approximately $1 billion of Asia Global Crossing debt, to $200 million of debt post-emergence.


Global Crossing said it is now positioned to become a market leader in global data and IP services. It has an annual revenue base of nearly $3 billion. The company's operating expenses from continuing operations have been reduced by approximately 63% from a peak annualized spend of approximately $2 billion at the beginning of 2001 to an estimated current annualized level of just over $700 million.
http://www.globalcrossing.com
http://www.sttelemedia.com

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BT Launches Consumer VoIP over Competing Cable Modems

BT launched a consumer VoIP service that runs over competing cable modem services. Customers are provided with a broadband VoIP adapter that enables them to access the BT network without having to reconnect their telephone line to BT through the circuit switched network. BT's "Broadband Voice" service is initially being marketed in areas where there is a heavy concentration of NTL and Telewest cable modem subscribers. The service costs £7.50 per month, allowing customers to make as many UK evening and weekend calls of up to an hour for no extra charge. Daytime calls will be charged at 3p per minute, with a 5p minimum charge.


"Broadband Voice takes the battle for customers right to the door of our rivals," said Pierre Danon, chief executive of BT Retail.
http://www.btbroadbandvoice.com

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Global Telecom Regulators Set Course for Universal Access

Telecom regulators from more than 80 countries met in Geneva as part of the World Summit on the Information Society (WSIS) to discuss the steps that nations could take to bridge the digital divide and ensure universal access to communications. The 4th annual Global Symposium for Regulators (GSR) agreed on a list of best practice regulatory guidelines for achieving this universal access. They called for regulatory reform at the highest level of government and urged political leaders to treat communications as a tool for development rather than a source of government revenue. The GSR Universal Access Best Practice Guidelines will be delivered to the World Summit later this week. Some of the key principles include:

• promote greater competition, more open markets, and spark investment.



• urge governments to grant technologically neutral licenses and not to favor any particular technology, whether fixed line, wireless, etc,



• apply the lessons learned from developing countries' initial experiences with mobile cellular services to a broader range of communications services to foster universal access.



• push for communications services to be provided in a competitive framework, encouraging new technologies for offering both innovative services and affordable pricing options (e.g., pay as you go options such as prepaid cards) to a wide range of end users.



• encourage low-cost technologies that will achieve long-term financial self-sustainability, greater use of public access options that respond to the needs of local users,



• encourage government measures such as tax incentives, reduced customs tariffs and national manufacturing of equipment.



• recognize that universal service funds are one option that complements regulatory reform when developed as a mechanism within a broader market-oriented approach to achieving universal access.

http://www.itu.int

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Nokia's Jorma Ollila Calls for Universal Access Goal by 2015

"The ambition of universal access is to create, by 2015, an information society in which half the people of the world, an estimated 4 billion, will have access to tools and services that help them interact more, know more and achieve more," said Jorma Ollila, Chairman and CEO of Nokia, in a speech for the World Summit on the Information Society (WSIS) in Geneva, Switzerland. Ollila said that achieving this Universal Access must be a mutual goal and responsibility of the private sector, the public sectors and civil society as a whole. Nokia estimates that only 1.2 billion people worldwide have access to data, voice and personal communications.
http://www.nokia.com

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Alcatel Evolves its Market Strategy

The financial picture for major carriers is much more improved in the last two years as evidenced by their reduced debt loads, restructured balance sheets, and restored free cash flows, said
Hubert de Pasquidoux, Chief Operating Officer, Alcatel North America & CEO, Alcatel Canada, speaking at the Lehman Brothers' Fifth Annual T3 Conference in New York. However, the carriers must keep their eyes on the top line of their balance sheets, as fixed voice revenues continue to erode, mobile voice business are maturing, and new data services often cannot make up the difference. Instead of simply looking for CAPEX savings, today's marketing strategies must emphasize the reduction in customer churn, building customer loyalty and increasing both ARPU and network usage. De Pasquidoux outlined three main drivers in future communications markets: Broadband & Entertainment, Portable Services, and End-customer ownership. Alcatel believes broadband has already become a mass-market phenomenon.


Alcatel's response to the changing market conditions can be summarized as follows:

• downsize in-line with the market contraction


• maintain and expand its global reach


• overhaul company processes to reflect a "One Company" vision


• optimize the supply chain and outsource manufacturing

De Pasquidoux said Alcatel's goal is to evolve from a "carrier equipment supplier" to a "communications solutions provider." The company is especially keen to maintain its leading position in broadband access. He also predicts that the trend towards telecom outsourcing will continue.
http://www.alcatel.com

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