Tuesday, March 11, 2003

Two Former Enron Broadband Executives Charged with Fraud in VOD Scheme

Two former executives of Enron Broadband Services (EBS) were arrested and charged with securities fraud, wire fraud, conspiracy and making false statements regarding a now-defunct venture between Enron and Blockbuster to deliver video on-demand (VOD). Kevin Howard and Michael Krautz are accused of deliberately violating applicable accounting rules to allow Enron to fraudulently record $111 million in earnings in 2000 and 2001. The affidavit also alleges that Howard and Krautz intentionally concealed aspects of the transaction from Arthur Andersen accountants as part of the fraudulent scheme. The transaction at issue was based on a 20-year exclusive contract signed by EBS and Blockbuster in April 2000 to stream video films to customer homes. The plan was to begin testing the VOD service by 15-Dec-2000, but the service was not expected to produce any profits until many years later. The two former executives are charged with creating a fraudulent scheme to allow Enron to immediately recognize anticipated future earnings from the Blockbuster deal.
http://www.usdoj.gov/opa/pr/2003/March/03_crm_153.htm
  • At the time of the deal in 2000, Blockbuster said that it would offer a Blockbuster entertainment service, initially featuring movies on-demand. SBC Communications, Verizon, Qwest, Covad Communications, Telus and ReFlex signed on as local distribution providers. In January 2001, Blockbuster and Enron chose Motorola's Streamaster 5000 set top box with ADSL interfaces for the service.

  • In March 2001, Blockbuster terminated its exclusive services agreement with Enron Broadband Services, saying that it would focus on current growth channels in home entertainment. Blockbuster said it had "learned a great deal" from its trials with Enron and it believed video-on demand (VOD) would eventually become a commercial reality. Blockbuster said that its strategy will be to remain technology agnostic and open to all alliances.

  • In December 2001, Enron Broadband Services filed for Chapter 11 bankruptcy protection in conjunction with its parent firm, Enron Corp. Enron first proposed its bandwidth commodity market in May 1999 and announced its first bandwidth commodity trade in December 1999.

AT&T Expands Phone Service for Forward-Deployed Troops

AT&T will construct additional calling centers in seven forward-deployed camps and bases in Kuwait to nearly triple the number of payphones available for the personal use of US troops. In December, AT&T added calling centers throughout eight camps in Kuwait. AT&T also provides calling services aboard more than 200 U.S. Navy ships.
http://www.att.com

BridgeCom Selects SanteraOne for Class 5 and Integrated Access Services

BridgeCom, a New York-based, full service communications provider of voice and data services, has chosen the SanteraOne platform to provide enhanced applications and integrated voice and data solutions to its more than 125,000 New York Tri-State subscribers. SanteraOne will be deployed in BridgeCom's lower Manhattan switch site. BridgeCom, whose current offerings utilize UNE-P in conjunction with their existing data and unified messaging facilities, will use the SanteraOne system to offer flexible, integrated services.
http://www.bridgecom.com
http://www.santera.com

Alcatel Announces Major Contracts with Telecom Italia, FastWeb and Network Rail

At CeBIT 2003, Alcatel announced a series of major European contracts.

  • Telecom Italia will install Alcatel's 1640 WM system to upgrade its optical transmission backbone to address growing Gigabit Ethernet and ADSL service demand. The Alcatel 1640 DWDM platform scales in service up to 1.6 Tbps.


  • FastWeb, an alternative broadband provider in Italy, is using Alcatel equipment to serve business and residential clients in Milan, Rome, Genoa, Turin, Naples and Bologna. FastWeb is using the Alcatel Optical Multi-Service Node (OMSN), the Alcatel 7300 Advanced Services Access Manager (ASAM), and the Alcatel 7670 Routing Switch Platform.


  • Network Rail, a new venture formed in March 2002 for the principal purpose of acquiring and owning Railtrack PLC in the UK, awarded Alcatel a contract valued at EUR 130 million to roll out an advanced optical transmission network. Replacing the current communications network, the new transport architecture will support Network Rail's operational and business communication requirements, such as signaling, electrification control, and secure voice traffic transmission. The deployment includes Alcatel's data-aware Optical Multi-Service Nodes (OMSNs), cross connects, TDM access multiplexers, and DSL equipment.
http://www.alcatel.com

T-Mobile International Selects Nortel Networks for GPRS

T-Mobile International selected Nortel Networks as its preferred supplier for delivery and implementation of Nortel Networks Univity Packet Core for GPRS (General Packet Radio Service) across a number of T-Mobile's European networks. As part of the implementation, the existing GPRS packet core solutions will be replaced and Nortel Networks will supply the packet core infrastructure for GPRS. Initial implementation will include most of T-Mobile's main markets in Europe, starting with Germany and the UK. Financial terms were not disclosed.
http://www.nortelnetworks.com
http://www.t-mobile.net

Deutsche Telekom Selects Lucent's LambdaUnite Switch for Global Network

T-Systems, a subsidiary of Deutsche Telekom, selected Lucent Technologies' LambdaUnite MultiService Switch for its global backbone, "Telekom Global Net" (TGN). The LambdaUnite is designed to bridge traffic from metro networks onto optical core backbones. The deployment will quadruple the capacity of TGN's network across 10 European countries. It also offers the advantage of a meshed structure, instead of the ring structure employed in older systems. In addition to LambdaUnite, T-Systems is also integrating Lucent's WaveStar TransLAN card, a plug-in card that upgrades SDH multiplexers with Ethernet interfaces and facilitates the provisioning of Ethernet services to corporate customers.
http://www.lucent.com
  • In January 2002, Lucent Technologies announced the first shipment of its LambdaUnite Multiservice Switch (MSS) to Deutsche Telekom for testing. The product, which supports both SONET and SDH, is a combination of a time division multiplexing (TDM) optical transport system with built-in switching capacity of up to 640 Gbps per bay. The architecture accepts a variety of interfaces ranging from 155 Mbps to 40 Gbps.

Cingular Wireless Deploys Lucent PacketStar Gateways

Cingular Wireless, the second largest mobile operator in the US, is deploying Lucent Technologies' PacketStar (PSAX) Multiservice Media Gateway as the backhaul on its nationwide network. The PacketStar 1000 is being deployed at thousands of Cingular cell sites throughout the country, enabling Cingular to collapse multiple leased lines into one. Significant initial deployments have been completed throughout the network and the remaining deployments are planned for this year and next. Financial terms were not disclosed.
http://www.lucent.com
http://www.cingular.com

3Com Launches Line of Power Over Ethernet Products

3Com launched new Power over Ethernet (PoE) -enabled equipment, including a switch, IP telephones and wireless LAN access points. The PoE capabilities are based on the IEEE P802.af draft specification, which enables a single cable to provide both standards-based, intelligent power and data connectivity. The new products work with 3Com's "Network Jack," a unique "in the wall" Ethernet switch that supports PoE and forwards power to an attached device, such as an IP telephone handset.
http://www.3com.com

ECI Telecom Increases Its DSLAM Aggregation Capabilities

ECI Telecom's Inovia Broadband Access Division announced new capabilities that enable the aggregation of thousands of DSL subscribers through co-located or remote Hi-FOCuS DSLAMs, Mini-RAMs (compact Remote Access Multiplexers) or even different types of third party equipment. By aggregating DSL services through co-located or remotely located equipment, the Hi-FOCuS Aggregator enables numerous users to be connected via a single interface to the network. Furthermore, ECI's Hi-FOCuS Multi-Service Access Gateway (MSAG) platform, can be used as a network aggregator across any existing network infrastructure; copper, fiber or SDH/SONET networks and can aggregate over different transmission rates. ECI Telecom said the ability to aggregate thousands of subscribers over different network types and transmission rates would enable operators to reduce the number of network interfaces and associated operating costs.
http://www.ecitele.com

Nortel Networks Enhances Enterprise Network Management Tools

Nortel Networks introduced an "Enterprise Network and Service Management" solution that combines enhancements to its Optivity products with solutions from third party partners. The solution includes network visualization, discovery and diagnostic capabilities, along with policy management and QoS tools. Nortel Networks said its goal is to allow network managers to monitor, visualize and troubleshoot complex enterprise networks.
http://www.nortelnetworks.com

Acterna Launches New Test Solution for SONET/SDH

Acterna introduced a SONET/SDH test solution designed for new data-oriented networks, LAN-to-LAN connections and distributed storage area networks (SAN). The new SONET/SDH test solution comprises a single module for Acterna's ONT-50 Optical Network Tester. It supports the differential delay generation and analysis of virtual containers, and accommodates interfaces up to 2.5 Gbps (SONET/SDH). The solution enables the link capacity adjustment scheme (LCAS) and also the generation of both generic frame protocol (GFP) and MAC frames for Ethernet loads up to 1 Gbps.


Separately, Acterna announced a new 2.5 Gbps interface and ATM testing capabilities for its ANT-5 Access Tester. The instrument now covers SDH/SONET, PDH and ATM technologies that are actively being deployed with metropolitan networks.
http://www.acterna.com

Telica Expands Plexus 9000 Voice Packet Switch for Mobile Wireless Networks

Telica has expanded its Plexus 9000 Class 4/5 switching platform to include packet-based wireless capabilities, including Gateway Mobile Switching Center (GMSC), Soft MSC Media Gateway and an All-IP Wireless Solution. The announcement adds support for applications that can be applied in wireless network architectures; 2G, 2.5G or 3G, including GSM, GPRS, EDGE, CDMA, TDMA, CDMA2000, and UMTS. Telica said the flat topology of wireless networks is proving difficult to scale because of the large number of highly-meshed trunks required between Mobile Switching Centers (MSCs).


As a Gateway MSC, Telica's Plexus 9000 can be deployed like a Class 4 switch in a wireline network, using TDM, IP, or ATM-based trunking to support Tandem switching and long distance services. Specific to wireless networks, the Plexus 9000 Gateway MSC, which supports IS-41 and GSM MAP services, accepts calls from the PSTN and routes directly to the intended mobile subscriber's Serving MSC, bypassing the Home MSC entirely. The routing efficiency frees up tens of thousands of legacy MSC ports and reduces PSTN interconnect facilities and associated leased line costs through consolidation. The Plexus 9000 could also operate as a wireless media gateway. By working in concert with third party Soft MSCs via industry-standard protocols, the Plexus 9000 can communicate directly to the Radio Access Network, supporting 2G, 2.5G and 3G services. The Plexus 9000 supports TDM, Voice over ATM AAL2 and VoIP, enabling interfaces to the TDM-based A-interface of 2G and 2.5G, and the ATM-based UTRAN of 3G technologies, while supporting IP or ATM-based core network trunks. Telica noted that its platform is already supporting revenue traffic for SIP signaled IP access networks. SIP forms the basis of the 3rd Generation Partners' Project's (3GPP) "Release 5" architecture, where voice calls are converted to IP streams directly from the mobile terminal.
http://www.telica.com
  • Telica's Plexus 9000 has now been deployed in 35 carrier networks and carries over 4 billion minutes of use per month.

Cisco Adds SAN Extensions to DWDM Platform

Cisco Systems announced several new enhancements to the Cisco ONS 15530 Multiservice Aggregation Platform, including an 8-Port Fibre Channel/Gigabit Ethernet Aggregation Card, 2.5-Gbps ITU Trunk Card and new protection switch modules. The aggregation card carries up to eight Fibre Channel, fiber connectivity (FICON), or Gigabit Ethernet signals on a single 10-Gbps wavelength. The 2.5-Gbps ITU trunk card aggregates multiple enterprise system connection (ESCON), Fibre Channel, FICON, and Gigabit Ethernet services over a single ITU wavelength. The 2.5-Gbps ITU Trunk Card also allows flexible network designs that require the ability to add or drop a few services per site around a metro ring. Separately, Mainova, a German utility provider, is deploying Fibre Channel and Gigabit Ethernet services over a DWDM network based on the Cisco ONS 15540 Extended Services Platform.
http://www.cisco.com

Alcatel Expands Metro Transmission Platform

Alcatel announced three additions to its metro transmission portfolio:

  • the Alcatel 1642 Edge Multiplexer, an economical customer premise equipment (CPE) that delivers TDM and Ethernet services to large and medium enterprises;


  • the Alcatel 1662 SMC, a flexible multi-service system for SDH, Ethernet, and ATM service delivery in metropolitan networks;


  • the Alcatel 1692 Metro Span Edge, a CWDM transport system for metro access and enterprise networks that supports both point-to-point and ring network topologies.
http://www.alcatel.com

Nortel Networks Introduces OPTera Long Haul DWDM Terminal

Nortel Networks introduced its OPTera Long Haul DT, a next generation DWDM terminal designed for lowering the cost of extended distance optical routes. The new terminal provides improved competitive density and footprint, increased distance without the cost of Raman amplifiers, tunable lasers to lower sparing costs, service-transparent interfaces and upgraded operations tools. Optus expects to be first to deploy OPTera Long Haul DT in its Australian network in July 2003.
http://www.nortelnetworks.com

TeleSym Launches Wi-Fi Telephony Software for Centrino Devices

TeleSym released its SymPhone Client software that provides Internet telephony capabilities for Wi-Fi connected notebooks running Windows. The SymPhone System extends the functions of the office telephone to any location with Wi-Fi and broadband Internet connectivity, without paying cellular airtime charges. Users can make and receive calls over the Internet from a mobile computer, throughout a building or campus, at home and at public Wi-Fi hotspots. Factory and warehouse users could also use SymPhone as an intercom or cordless phone on their WLAN. The company said voice quality of the calls "approaches CD quality." The system is Centrino-compatible.
http://www.telesym.com
  • In December 2002, Intel made an equity investment in TeleSym.

Intel Launches Centrino Mobile Initiative

Intel officially launched its Centrino mobile technology initiative for integrating wireless capability into a new generation of mobile PCs. Intel Centrino mobile technology includes a new mobile processor, related chipsets and 802.11 wireless network functions that have been optimized, tested and validated to work together. In addition to wireless communications, Intel Centrino mobile technology includes features designed to enable extended battery life in thinner and lighter notebooks. The wireless components conform to 802.11b Wi-Fi standards and support advanced wireless LAN security including 802.1x, WEP and VPN technologies, and will be software upgradeable to support WPA. Centrino will also support Cisco LEAP and will be software upgradeable to Cisco Compatible Extensions. Intel has been working with wireless network service providers, hotels, airports, retail and restaurant chains worldwide to accelerate deployment and increase awareness of wireless public hotspots. The company expects to verify more than 10,000 hot spots for Centrino compatibility this year. Intel plans to spend $300 million this year to roll out the new brand and promote Wi-Fi services.
http://www.intel.com

CeBIT 2003: Siemens Cautiously Optimistic

Speaking at CeBIT 2003, Volker Jung, a member of Siemens' Corporate Executive Committee, said his company is "cautiously optimistic" about an economic recovery. Targeted growth areas for the company are IP convergence, broadband access, mobile devices, mobile networks and IT services. Siemens' fixed network business (Siemens ICN) still presents a mixed picture: while enterprise sales are stable and profitable, the carrier business continues to battle a difficult market. Siemens ICN is making progress in its restructuring efforts and aims to reach break-even in Q4.
http://www.siemens.com

CeBIT 2003: Marconi's Parton Notes Progress in Restructuring

Mike Parton, Marconi's CEO, said his company has essentially completed the task of restructuring its core business and streamlining operations. Speaking at CeBIT, Parton said Marconi has successfully retained its key customers and continued to bring strategically important new products to market. Parton also outlined Marconi's vision, where future business falls into four primary areas: Optical Networks, Broadband Routing and Switching, Broadband Access (European access, next generation voice networks, and fixed wireless), and Services. Parton believes that partnerships, where research and development and routes to market are shared for mutual benefit, will be an increasingly important factor in the industry and expects Marconi to be an active participant.
http://www.marconi.com

IBM to Take Over BellSouth's Hosting Business

IBM will assume responsibility for BellSouth's e-business hosting operations in Atlanta and Miami. The facilities will be connected to IBM's global hosting infrastructure and will act as key hubs for the delivery of on-demand services in the southeastern US. BellSouth will then jointly market IBM e-business hosting services, which will be delivered using BellSouth's Internet access, Metro Ethernet, Network VPN and DSL services. Financial terms were not disclosed.
http://www.ibm.com
http://www.bellsouth.com