8x8 Introduces SIP-based Broadband Videophone

8x8 introduced a SIP videophone that works in conjunction with its broadband voice service. The product is an all-in-one desktop videophone system that includes an integrated camera and an LCD display. The videophone is compatible with other SIP voice and video IP telephone solutions, including Microsoft's Windows Messenger service. Advanced features include video at up to 30 frames per second and audio echo cancellation. It supports external audio/video connectors for optionally connecting up to two external cameras to the videophone and one external video display monitor. List pricing is $599.
http://www.packet8.net

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8x8 Lowers Price of its Unlimited Broadband Voice Service to $20/Month

8x8 lowered the price of its residential, flat rate, broadband VoIP service to $19.99 per month. In addition, 8x8 has eliminated equipment fees and there are no long-term commitments. The service, which is available to anyone with a broadband connection in the US, provides unlimited local and long distance calling in the US and Canada, a direct dial phone number which a choice of area codes, voice mail, caller ID, call forwarding, online account management and real-time billing. The service can also be ordered with a broadband video phone.
http://www.packet8.net

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AOL to Offer Broadband Subscribers Streaming Movies Theater

America Online will begin offering its broadband subscribers a new "Theater B" service that provides classic and campy movies for on-demand viewing. Each month, Theater B will offer a new movie theme with a new film available for on-demand viewing. The movie streaming is offered in partnership with MovieFlix.com.


Separately, AOL launched a major educational and marketing campaign to inform high-speed users about "the dangers of an unprotected broadband connection." The company said its forthcoming AOL 9.0 software would help its members practice safe broadband, including adaptive spam filtering, a customized firewall, advanced anti-virus scanning, and enhanced Parental Controls.
http://www.aol.com

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Federal Court Blocks Illinois Senate Bill 885, which Aimed to Raise UNE-P Rates

A U.S. District Court issued a preliminary injunction to block the implementation of Illinois Senate Bill 885, which would have significantly raised the UNE-p rates that SBC Communications charges to its competitors. AT&T cheered the ruling as "good news for Illinois consumers." AT&T now plans to continue to take orders for residential local service in Illinois and will not, at this time, have to assess a special surcharge to the 300,000 Illinois households already subscribed to AT&T Local Servicehttp://www.att.com

• Last month, William Daley, president of SBC Communications, said his company was increasingly optimistic about the regulatory environment following the action of the recent legislative decision in Illinois to raise the wholesale rates for UNE-P elements. Speaking at the Banc of America “Media, Telecommunications, and Media�? conference in New York, Daley acknowledged that pressure from the AFL-CIO and other unions were instrumental in getting the Illinois state legislature to raise the wholesale rates.

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BayPackets Partners with Cirpack on SIP Services

BayPackets and Cirpack announced a marketing agreement matching Cirpack's SoftSwitch and Media/Signaling Gateways and BayPackets' RSI Network Services Platform. The platforms are connected using SIP signaling and have been tested for interoperability. BayPackets is headquartered in Fremont, California. Cirpack is based near Paris.
http://www.cirpack.com
http://www.baypackets.com

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MFN Changes Name to AboveNet

Metromedia Fiber Network (MFN) is targeting mid-August for confirmation of its plan of reorganization, enabling it to emerge from Chapter 11 bankruptcy protection. MFN will change its name to AboveNet and begin using the AboveNet brand for all its services, starting immediately.
http://www.mmfn.com

• In March 2003, Metromedia Fiber Network (MFN) filed its plan of reorganization with a bankruptcy court in New York. The company first filed for Chapter 11 protection in May 2002.
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  In June 1999, Metromedia Fiber Network agreed to acquire AboveNet Communications in a stock swap valued at about $1.55 billion at the time. AboveNet had co-location facilities in operation in San Jose, California and Vienna, Virginia at the time.
• 
  
  In March, 2003, Switch and Data Inc. acquired the assets of PAIX.net, an Internet peering exchange provider with facilities in Atlanta, Dallas, New York, Palo Alto, Seattle, and Vienna, Virginia. Switch and Data's acquisition is inclusive of all PAIX sites. In March 2002, MFN announced its intent to sell its PAIX facilities for $50 million to an unnamed buyer. PAIX, the Palo Alto Internet Exchange, was originally opened by Digital Equipment Corporation in July 1996. AboveNet acquired PAIX in May 1999 from Digital/Compaq for $75 million.

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Nortel Outlines Succession 3.0, a Migration from TDM-based Meridian 1 Systems

Nortel Networks outlined is plans to offer a seamless migration path from TDM-based Meridian 1 systems to Succession 1000 IP PBXs. New Succession 3.0 software, which is expected to be available in Q4 2003, will allow self-paced integration of multimedia, contact center, self-service IVR (interactive voice response) and IP capabilities. In addition, it will feature a variety of enhancements, including: call server and gateway redundancy; increased IP Telephony scalability; distributed access to applications; and intelligent call routing. The new version will support 10,000 IP users per call server, and multiple server networking to support tens of thousands. Nortel Networks also plans to offer a range of data applications for its family of IP phones as part of Succession 3.0.
http://www.nortelnetworks.com

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Nortel Networks Enhances its Optical Enterprise Portfolio

Nortel Networks announced several enhancements to its Optical Enterprise portfolio, including standards-compliant CWDM on the Nortel Networks OPTera Metro 5000 Multiservice Platform, and Fiber Availability Service. Specifically, Nortel Networks is introducing eight new CWDM blades to take advantage of the latest CWDM components. The new blades will use the same wavelength grid as Nortel Networks Passport 8600 data products, enabling cross-platform CWDM interoperability. The new CWDM capabilities would let enterprise customers run their own private networks more cheaply using leased dark fiber.


Nortel's new Fiber Availability Service, which will be offered through local channel partners, would provide enterprises with a complete market assessment of fiber providers in their area. This assessment will include: a list of dark fiber and existing optical services; distance to the enterprise location; fiber contacts; and pricing.
http://www.nortelnetworks.com

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Vonage Announces Its First Cable Partnership

Armstrong, the 17th largest cable television provider in the US, will deploy the Vonage broadband telephony service to its cable subscribers in five states. The co-branded partnership will enable subscribers to make unlimited local and long distance calling throughout the United
States and Canada for a flat rate. Armstrong has offered cable modem service for over 5 years and claims a 30% penetration rate company-wide. Financial terms were not disclosed.
http://www.vonage.com

• Vonage currently has more than 25,000 lines in service and is processing about 1.5 million calls per week.

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Scientific-Atlanta Unveils SmartLAN Home Networking

Scientific-Atlanta introduced a home networking system that ties cable modems into existing in-house phone wiring. Scientific-Atlanta's SmartLAN products include a SmartLAN power unit, SmartLAN outlets, SmartLAN wireless adapter and a SmartLAN StarBox adapter for star (home-run wiring) topologies. Existing wall phone jacks would be replaced with the new SmartLAN outlets with two phone jacks and one Ethernet port. The home network could also be attached to Scientific-Atlanta's WebSTAR cable modem, which has an embedded media terminal adapter (EMTA), for providing a PacketCable VoIP service.
http://www.scientificatlanta.com

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Scientific-Atlanta Shows its Latest Set-top

Scientific-Atlanta unveiled a new Explorer 8000HD set-top box billed as "a home entertainment server." The product is positioned for cable customers wanting both DVR and HDTV services. Capabilities include the ability to pause live TV, record one show while watching another, recording two shows at once and automatically recording all episodes of a show..
http://www.scientificatlanta.com

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Net2Phone Sets New Corporate Structure, Reports Results

Net2Phone will create two wholly-owned subsidiaries to provide investors a clearer picture of its operations. One of the new subsidiaries, Net2Phone Global Services (NGS), is to be comprised of the company's international retail VoIP business and domestic calling card business, while the second, Net2Phone Cable Telephony (NCT), is focused on delivering an end-to-end managed telecommunications solution to cable operators utilizing VoIP.


Separately, Net2Phone reported quarterly revenue of $23.8 million, as compared to $23.1 million in the prior quarter. Gross margins for the third quarter were above 40% for the eighth consecutive quarter, at 40.5%. Loss from operations for the quarter was ($9.8) million.
http://www.net2phone.com

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Vitesse to Acquire Multilink Technology Corp.

Vitesse Semiconductor agreed to acquire Multilink Technology Corporation for approximately 4.2 million VTSS shares, valued at approximately $22.9 million. Multilink Technology supplies mixed-signal integrated circuits and VLSI products for optical networking systems. The company's product portfolio spans the markets from Ethernet and storage access to long haul optical transport. Multilink is headquartered in Somerset, New Jersey.
http://www.vitesse.com
http://www.mltc.com/

• For Q1 2003, Multilink reported revenue of $1.0 million, compared with $1.4 million for Q4 2002 and $10.1 million in Q1 2002. Multilink's top three customers for Q1 2003 were Lucent, ADVA and Cisco, representing 36%, 9% and 8% of total revenues, respectively. A major restructuring was underway.
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  Multilink Technology Corporation was founded in 1994 and completed its IPO in June 2001. The company is headed by Dr. Richard N. Nottenburg, one of its founders and previously a distinguished member of the technical staff at Bell Labs.

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MCI Releases Findings from Internal Investigation

A confined group of former WorldCom executives and employees had a significant impact on the company and its fraud, according to an internal investigation led by former SEC Director of Enforcement, William McLucas. MCI's Board of Directors released key findings of the investigation and said that "history will not repeat itself." Michael Capellas, MCI's new chairman and CEO, said the "issuance of these reports is yet another important step in putting the past behind us as we remain on a fast track to emerge from Chapter 11 protection this fall."http://www.mci.com

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Cedar Point Unveils 'QuickStart' Cable Voice Initiative

Cedar Point Communications launched a "QuickStart" marketing initiative to help cable operators launch packet voice services. Cedar Point's QuickStart program provides a pre-configured seven-foot rack with all necessary headend equipment and RF network certification for cable telephony services. In addition, service providers receive PSTN interconnection services, turn-up and acceptance testing, project and planning services and end-to-end training and support.
http://www.cedarpointcom.com

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Comcast Trials Sony's Passage Technology

Comcast will begin a field trial of a new "Passage" technology developed by Sony that allows set-top receivers, network and headend equipment from different companies to work together on existing digital cable television networks. Comcast has already tested Passage in its labs.
http://www.comcast.com
http://www.sonypassage.com

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BigBand Enables On-Demand Delivery of HDTV Content

BigBand Networks is demonstrating edge processing for VOD delivery of HDTV content. BigBand VOD Edge performs high density QAM modulation and RF upconversion of HDTV content provided from a server via Gigabit Ethernet. Cable operators could use the solution for channel line-up control and to seamlessly include live HDTV and SDTV feeds multiplexed within the same channels.
http://www.bigbandnet.com

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Motorola Expands its Digital Set-top Portfolio

Motorola Broadband Communications Sector introduced its new DCT700 interactive set- top featuring support for more bandwidth for high-definition content, on-demand information and entertainment services and piracy prevention. The DCT700 is positioned as a sub-$100 set-top solution for cable operators planning large scale deployments of new set-top terminals. Basic services include electronic program guides (EPGs), interactive pay-per-view (IPPV), and video-on-demand (VOD). The set-top is compatible with the Motorola MediaCipher conditional access system, and includes an ITU standard 64/256 QAM.
http://www.motorola.com

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AT&T Targets New Advertising Campaign at Small Businesses

AT&T launched a new "All in One" advertising campaign targeting the small business market. The service features local and long distance services on a single bill. AT&T said the UNE-p platform continues to create competition for ILECs nationwide.
http://www.att.com

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Optinel Systems' Optical Transport Delivers HDTV

Optinel Systems, a start-up based in Elkridge, Maryland, released a new transmitter for its optical transport platform suited for high definition television (HDTV). Optinel's optical transport system accommodates multiple traffic formats, including Gigabit Ethernet, SONET, QAM and analog video. Both CWDM and DWDM are offered in the single-chassis system.
http://www.optinel.com

• In December 2002, Optinel raised $22.4 million in second round venture funding. Investors include Court Square Ventures, Teknoinvest, Birchmere Ventures, SilverHaze Partners, Four Seasons Ventures, the Dinner Club, Isis Capital, OCG Ventures and Novak Biddle Venture Partners.
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  In October 2002, Optinel announced that Adelphia Communications had successfully completed its field trial of Optinel's PLEXiS MFX Transport System. The field trial demonstrated a drop and forward network architecture utilizing Optinel's Fractional Optical Multiplexer, which enables all-optical sharing of traffic among several sites.

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Microsoft Debuts New Digital TV Platform for Cable Operators

Microsoft unveiled a new digital TV software platform aimed at cable operators. Microsoft TV Foundation is positioned as an end-to-end solution to help cable operators promote services such as video on demand (VOD), while providing viewers with an interactive program guide (IPG). By using Foundation, a cable operator partnering with a content company could create a virtual channel that brings together the company's content, including games and on-demand offerings.


Operators can create On-Demand Storefronts for video, and offer games, information services (such as news, weather and sports), email access on TV, and instant messaging. The solution consists of client and server software, as well as related developer tools. Microsoft's TV Foundation can run on a range of set-top devices, including the Motorola DCT1700, DCT2000, DCT2500, DCT5100 and DCT6000 product lines. Companies announcing support for the platform include Motorola, SeaChange, Concurrent Computer Corp, MetaTV, Two Way TV and Advanced Digital Broadcast. In addition, Sigma Designs, National Semiconductor and selected application developers are working with Microsoft TV to develop future products and technologies.


Cablevisión, Mexico's largest cable operator, intends to roll out services powered by Microsoft TV beginning in the second half of this year. The company expects to have 450,000 subscribers in Mexico City using the system within the next year. Cablevisión will deploy the services on Motorola digital set-tops.


Last week, Microsoft signed Cable Labs' OpenCable agreement and announced plans to enhance the OpenCable Application Platform (OCAP) software project with its own .NET technology. Microsoft agreed to contribute pertinent intellectual property to OCAP, which is a middleware software layer that allows applications to run on any cable TV system in North America.
http://www.microsoft.com/tv/

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Canada's FCI Broadband Deploys Alcatel FTTU Solution

FCI Broadband (previously known as Futureway Communications), a Canadian CLEC, will deploy Alcatel's 7340 Fiber-to-the-User (FTTU) system to deliver triple play services over fiber. FCI will offer subscribers in the Greater Toronto Area four active phone lines, high speed Internet access, and hundreds of television channels without a set-top-box requirement. General Bandwidth's technology is used to deliver packet voice service.
http://www.fcibroadband.com
http://www.alcatel.com

• Founded in 1997, Futureway Communications was Canada's first fiber-to-the-home, facilities based communications provider in Canada. The company changed its name to FCI Broadband earlier this month as part of a corporate rebranding strategy. FCI offers residential telephone, high-speed internet and video services, as well as enterprise voice, data and hosting solutions.



• Last month, General Bandwidth announced that FCI Broadband selected its G6 Packet Telephony Migration Platform to deliver toll-quality packet voice services over Futureway's integrated voice and data fiber network. The G6 system offers a call capacity of 3,360 calls per chassis, and supports voice services from existing Class 5 circuit switches as well as packet-based softswitches.

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