Sunday, January 5, 2003

Extreme Networks Reports Revenue of $90.2 Million

Extreme Networks reported quarterly revenue of $90.2 million, down from $100.6 million in the preceding quarter and $109.1 million one year ago. There was a net loss of $19.7 million or $0.17 per share, including special charges and deferred compensation totaling $28.6 million.
http://www.extremenetworks.com/aboutus/pressroom/releases/pr01_07_03.asp

France Names New Chairman for Telecom Regulatory Authority

The president of France named Paul Champsaur as the new chairman of Autorité de Régulation des Télécommunications (ART), the national telecom regulatory authority. He replaces Jean-Michel Hubert whose six-year mandate has just ended. Champsaur previously served as the General Inspector of the Institut National de la Statistique et des Etudes Economiques (INSEE). Separately, Mrs. Gabrielle Gauthey, chief telecommunications engineer, was appointed a member of the five-person ART panel.
http://www.art-telecom.fr/eng/index.htm

S2io Raises $18 Million for 10 Gbps Ethernet I/O Data Center Technology

S2io, a start-up based in San Jose, California and Ottawa, Ontario, raised $18 million in second round funding for its development of 10 Gbps Ethernet I/O technology aimed at data center applications. S2io's forthcoming I/O products will offload processing-intensive functions from servers and data storage devices leaving them free to better process applications' data. The new funding round was led by Menlo Ventures and included existing investors VenGrowth Capital Partners and the Business Development Bank of Canada. S2io's total funding to date is approximately $27 million.
http://www.s2io.com
  • S2io is headed by Dave Zabrowski, who previously spent 16 years with Hewlett Packard, most recently as Vice President and General Manager of HP's North American Business PC organization. S2io's technical team includes Lee Shepherd (CTO), formerly with Nortel Networks; Dennis Shwed (VP of Hardware Engineering), formerly with Nortel Networks; and Leonid Grossman (VP of Software Engineering), formerly with Alteon Websystems and Nortel Networks.

Microsoft Unveils Windows Powered CDMA Smartphone

Microsoft released its Windows-powered Smartphone and Pocket PC software for CDMA and broadband CDMA (1xRTT) networks. The new release, which delivers the same Pocket PC and Smartphone software available for GSM/GPRS networks, can be used to customize wireless devices for rich media, personal and corporate e-mail services, and instant messaging. Samsung is working with Microsoft on CDMA devices that incorporate the Windows capabilities.
http://www.microsoft.com/presspass/press/2003/Jan03/01-06CDMApr.asp

Global Crossing Selected by Not-for-Profit Hospital Alliance

Premier Sourcing Partners (PSP), which supplies the information technology for the Premier healthcare alliance of more than 1,500 not-for-profit hospitals, signed an agreement with Global Crossing covering broadband, Frame Relay and ATM, IP VPN, Dedicated Internet Access, conferencing and voice services. The services will now be available to members of the Premier healthcare alliance.
http://www.globalcrossing.com

VividLogic and Magis Demonstrate Wireless 1394 HDTV

VividLogic, a supplier of digital home entertainment software based on IEEE 1394 protocols and Home Audio Video interoperability (HAVi) middleware, and Magis Networks are demonstrating a wireless 1394 HDTV video network based on the Magis' Air5 chipset. VividLogic's FireBus IEEE-1394/5C/HAVi infrastructure software enables consumers to seamlessly share digital audio & video entertainment content between consumer electronics devices. Using the 5 GHz band, Magis' Air5 chipsets multiple, simultaneous streams of high-quality video, audio, and TCP/IP data at ranges up to 250 feet and with throughput up to 40 Mbps.
http://www.vividlogic.com
http://www.magisnetworks.com

ViXS Launches Multi-Stream MPEG / 802.11a Video/Wireless Solution

ViXS Systems, a start-up based in Toronto, announced the availability of "Matrix," an 802.11a processor optimized for delivery of multiple streams of wireless video. The Matrix device, which is designed for "gateway" appliances, uses two 802.11a channels to enable the distribution of quality video to multiple wireless devices. When combined with the company's XCode MPEG/video network processor, the Matrix solution can guarantee broadcast-quality video streams at 30 frames per second. XCode's MPEG chip is a multistream transcoder that maintains QoS for up to eight real-time digital video streams. The combination of Matrix and XCode allows media gateways and access points to stream video simultaneously to a variety of digital and analog devices such as TVs, next-generation plasma- and HDTVs, laptops, Webpads, and PDAs, that are using basic "off the shelf" 802.11a device cards.
http://www.vixs.com

IDT Delivers Search Engine with Seamless Interface to Network Processors

IDT (Integrated Device Technology) began sampling the first Network Search Engine with an integrated Network Processor Forum (NPF) Look-Aside Interface (LA-1). The new IDT device enables a seamless connection to the network processor unit (NPU), allowing significant conservation of board space and enabling designers to begin development without FPGA or ASIC glue logic. The new device accelerates packet processing in products such as core, edge, metro and access routers and offloads the network processor to assist wire-speed implementation of access control lists (ACL), longest prefix match (LPM) and QoS.
http://www.idt.com

Intersil's 802.11g Chip Set Selected by D-Link

Intersil's PRISM GT Wireless Local Area Networking chip set was selected by D-Link to provide 802.11g connectivity for a new Wireless Router with 4-Port Switch and a new wireless CardBus adapter. Intersil's chip set combines the 802.11g draft standard's mandatory modulation schemes -- Complementary Code Keying (CCK) used in 802.11b and Orthogonal Frequency Division Multiplexing (OFDM) used in 802.11a.
http://www.intersil.com

Korea's DACOM Selects Riverstone for Metro Network Expansion

DACOM, Korea's second largest telecommunications provider, has deployed Riverstone's RS family of routers to expand its metro Ethernet network throughout Korea. DACOM is using Riverstone's RS 8600 routers to connect gaming parlors and to deliver residential Ethernet services. Riverstone's RS 8600 routers complement an earlier deployment of RS 38000 and RS 3000 routers in DACOM's metro network. In December, DACOM acquired a 45.5% controlling stake in PowerComm, the cable network arm of state-owned utility Korea Electric Power Corp. Earlier last year, PowerComm deployed Riverstone's RS routers in Korea's largest metropolitan network buildout. Financial terms were not disclosed.
http://www.riverstonenet.com

Agere Systems Introduces Flexmap Mappers for Access Networks

Agere Systems introduced two new FlexMap devices that improve the speed and performance of wired and wireless access networks by four times over earlier Agere solutions. The new fourth-generation Hypermapper is described as the industry's densest, single-device mapper with an integrated add-drop multiplexer (ADM) capability. Agere also introduced a HypermapperLite, a lower-cost version targeted for applications ranging from higher-bandwidth voice (T1/E1) lines to SONET/SDH (STS-12/STM4) rates. Sampling is expected in February.
http://www.agere.com/NEWS/PRESS2003/010603a.html

Marvell Introduces Ethernet Crossbar Switch Fabric

Marvell introduced an Ethernet crossbar switch fabric that integrates seventy-two 3.125 Gbps serializer/deserializers (SERDES) on a single chip. The Marvell Prestera-FX crossbar switch fabric, which leverages the company's Alaska X 10 Gigabit physical layer (PHY) transceivers, targets 10 GbE enterprise core switches. The fabric enables the development of 12-blade chassis systems that scale up to 576 GbE ports with 48 GbE port line cards for wiring closets, or 48 ports of 10 GbE for backbone connectivity. Marvell is currently sampling two versions of the Prestera-FX crossbar switch fabric.
http://www.marvell.com
  • In October, Marvell introduced its Yukon Gigabit Ethernet controller for 10/100/1000 plug-and-play PC network connections. The single-chip device integrates the company's Alaska Gigabit PHY with its Gigabit MAC and its suite of software drivers. Marvell said the natural evolution of technology suggests that soon every PC will come standard with 10/100/1000 connectivity.

Telekom Austria Interconnects with iBasis for International VoIP

Telekom Austria is interconnecting with iBasis, enabling it to route international voice traffic over the iBasis VoIP network. iBasis now has 160 carrier partnerships worldwide and the largest Cisco Powered Network for Internet telephony.
http://www.ibasis.net
  • In September 2002, iBasis completed the deployment of new VoIP technology from Cisco Systems as well as new patent-pending routing and traffic management technology developed in-house. The new routing enables international VoIP calls to go directly from an originating gateway in any country to a terminating gateway in another country without having to pass through a larger central office or hub facility.

  • During Q3 2002, iBasis carried 670 million minutes of voice traffic, up 8% over the preceding quarter.

AT&T Announces Restructuring and Asset Impairment Charges

AT&T will report a pre-tax restructuring charge of approximately $240 million in its Q4 2002 financial results to cover the costs of approximately 3,500 planned employee separations. The affected employees were notified last year of the downsizing. AT&T has previously indicated plans for a separate asset-impairment charge of approximately $1.1 billion in Q4 2002 associated with its past investment in AT&T Latin America.
http://www.att.com
  • AT&T has two major business units, AT&T Business and AT&T Consumer. As of mid-November 2002, the two units together had 72,000 employees across 56 countries.

AT&T and Covad Extend Residential DSL Relationship

AT&T will begin offering residential DSL services using Covad's nationwide network. Previously, Covad was provisioning AT&T-branded DSL service in targeted areas of the country for existing customers of AT&T Worldnet Service, the company's consumer Internet service. AT&T also offers DSL service provisioned over its own facilities in several targeted areas of New York, Texas and California. AT&T said service to these customers is unaffected by the expanded relationship with Covad. AT&T and Covad also have a separate agreement covering business DSL services in the 96 MSAs served by Covad's network.
http://www.att.com/news/item/0,1847,11217,00.htmlhttp://www.covad.com
  • As of September 30, 2002, Covad was serving 359,000 lines nationwide. In it Q3 financial report, Covad said its average revenue per unit (ARPU) remained at about $61 per month, customer churn was approximately 4%, and business subscribers represented 49% of its line count while consumers represented 51%.

    In September 2002, Covad Communications signed a five-year agreement to provide wholesale DSL consumer services to America Online


  • In July 2002, Covad announced an agreement to provide wholesale DSL connectivity for Sprint's business customers in selected markets across the US.

TIA Lobbies for Telecom Incentives in Bush Economic Stimulus Package

The Telecommunications Industry Association (TIA) asked President George W. Bush to consider several provisions to strengthen the telecom industry as part of his economic growth package. Among the proposals:

  • Support the Broadband Internet Access Act of 2002, which includes a 2-tiered tax credit to encourage broadband service providers to build out their networks in rural and underserved urban areas


  • Make permanent provisions to accelerate equipment depreciation schedules


  • Provide further extension of the Net Operating Loss provision contained in last year's Job Creation and Worker Assistance Act of 2002


  • Provide a temporary tax incentive for US companies to repatriate their foreign income for investment in the US business economy; and


  • Make permanent the R&D tax credit to further encourage high-tech companies to maintain their R&D in the US


Full text of the TIA letter is online.
http://www.tiaonline.org/media/press_releases/2003_taxplan_ltr.pdf

WSJ: Powell Urges FCC to Ease Unbundling Rules

FCC Chairman Michael Powell is drafting a plan that would gradually eliminate requirements that incumbent carriers provide their competitors with wholesale access to their local networks, according to a front-page story from The Wall Street Journal. The new rules would be "the most drastic changes since the Telecommunications Act of 1996" and would be a major victory for the four regional Bell companies. The biggest losers would be AT&T and WorldCom. According to the article, Powell's current draft plan calls for a two-year transition period before competitors would lose their discounted access to the ILEC switches. The incumbents would also be able to petition state regulators to remove other requirements for access to their networks. The FCC could vote on the plan as early as next month.
http://www.wsj.com
  • In November 2002, SBC Communications proposed a policy framework to the FCC to transition the industry “to a sustainable wholesale model�? for local telephone service. Highlights of SBC's proposal included:

  • Establishing a two-year transitional wholesale offering for serving residential customers that is functionally equivalent to the unbundled network element platform (UNE-P) at a nationwide rate of $26 per month, which does not include profit and certain other relevant costs;

  • Offering competitors 12 months in which to transition existing residential UNE-P customers to the new rate; and

  • Eliminating the UNE-P requirements for business customers, effective upon the FCC's Triennial Review order date. In addition, SBC proposed a two-year transitional period for competitors to invest in their own facilities. SBC said that based on AT&T's revenue data it estimates that this proposed plan would deliver solid margins for competitors while enabling local phone companies to recover costs associated with operating and maintaining the telephone networks.

  • In its Q3 financial report, SBC said competitors had already obtained more than 4.2 million UNE-P lines from SBC, with more than one-third of those lines being added in Q2 and Q3. Nearly 90% of Q3 UNE-P Line Changes were for consumers. More than 75% of SBC's UNE-P lines added in Q3 were for the two large IXCs. UNE-P lines provided to WorldCom and AT&T have more than tripled between Q1 and Q3, while UNE-Ps added for others have actually declined.


  • UNE-P (Unbundled Network Element - Platform) refers to a combination of unbundled loops, switches and transport elements that are leased by a competitor from an incumbent at a regulated price.