Thursday, August 21, 2003

FCC Grants Authorization for New Wireless RFID

Parco Wireless received FCC authorization for an RFID (Radio Frequency Identification) equipment locating system that uses ultra-wideband pulses to provide sub-foot precision for the two-dimensional and three-dimensional location of RFID tagged objects. Parco Wireless' UWB RFID tag is roughly the same size as a wristwatch and can transmit continuously for up to 5 years on a single button cell battery. The company is marketing the technology as a solution for tracking hospital equipment.
http://www.parcowireless.com

JDSU Names New Leadership

Jozef Straus will retire as chairman and CEO of JDS Uniphase at the end of the month. Succeeding Dr. Straus as CEO will be Dr. Kevin Kennedy, currently a member of JDS Uniphase's Board of Directors. Kennedy most recently served as COO of Openwave Systems. Prior to joining Openwave in August 2001, Dr. Kennedy spent seven years at Cisco Systems, lastly as Senior Vice President of the Service Provider Line of Business and Software Technologies Division. He also served at Bell Labs for 17 years.


Syrus Madavi, JDSU's president and COO, will also step down to pursue opportunities outside of the company.
http://www.jdsu.com

Avanex to Acquire Assets of Vitesse's Optical Systems Division

Avanex agreed to acquire certain assets of Vitesse Semiconductor's Optical Systems Division located in San Jose, California, for approximately 1.2 million shares of Avanex common stock. Based on the closing price of Avanex's stock on August 19, 2003, the transaction has a value of approximately $6 million. As part of the deal, Avanex will also buy up to $2 million in products from Vitesse over the next three years. Avanex said the acquisition would enhance its presence in transponders and expand its customer traction in subsystem products.
http://www.avanex.com
  • In July 2003, Avanex completed its acquisition of Alcatel Optronics France SA, a subsidiary of Alcatel that operates the optical components division of Alcatel, and the purchase of certain assets of the photonic technologies business of Corning Incorporated. Avanex said the acquisitions give it the "necessary scale and resources to be the leading supplier of optical solutions." The combined company is headquartered in Fremont, California, and includes former Alcatel facilities in France and Scotland and former Corning facilities in the U.S. and Italy.

Further Industry Reaction to the FCC Decision

The High Tech Broadband Coalition (HTBC) applauded the FCC order, describing it as "a major triumph for consumers." The HTBC especially commended the FCC for setting "a sound and clear demarcation between legacy copper and packetized capacity."


The Consumer Electronics Association said the FCC "removes burdensome regulations that are key to new last-mile investments." Michael Petricone, CEA's Vice President of Technology Policy, described the FCC order as "a giant leap toward making universal adoption of broadband a reality."


Sprint said the FCC order recognizes the "current reality that competitive local phone companies can't fairly compete without continued use of UNE-P. The order appropriately gives competitors time to build their customer bases and create a sound financial structure before phasing out their use of UNE-P." Tom Gerke, Sprint's Executive Vice President - General Counsel and External Affairs, said "One element of the FCC's order that is disappointing to Sprint is the apparent decision to preclude wireless companies from purchasing transport from incumbent local companies at UNE prices." Also, Sprint is currently using UNE-P to provide its "Sprint Complete Sense," packages of local service bundled with long distance, wireless and other features, in 36 states and the District of Columbia. Once the order has been fully analyzed, the company will decide on the next steps for this offer.


Mpower Communications, a facilities-based CLEC, said the order confirms its belief that it is better to own a facilities-based network and not depend on the LEC for switching infrastructure. Mpower does not expect the order to have any impact on the prices or services it offers to its customers.

Covad to Appeal Gradual Phase Out of Line Sharing

Commenting on the FCC order, Covad Communications noted that it includes a grandfathering provision for line-sharing customers that was not disclosed in the February announcement. While the order phases out line sharing for new customers, it preserves line splitting, which allows Covad to provide DSL broadband service on the same line a competitive voice provider uses to provide local phone service. The Commission also preserved Covad's access to full DSL loops and interoffice transport, and strengthened its rules regarding T-1 loops.


Covad noted that new line-shared loops added in the first year after the order's effective date will be subject to a price ceiling of 25% of the stand alone loop rate in the jurisdiction in which the customer is located. After one year, that price rises to 50% of the full loop rate. After two years, the price rises to 75% of the full loop rate. After three years, the local phone company is no longer required to provide line-sharing for these customers.


Covad said it believes portions of the FCC's order concerning broadband competition, including the phasing out of line sharing, are not supported by law or the record before the FCC. Covad, therefore, intends to appeal those parts of the decision.
http://www.covad.com

Alcatel to Build Undersea Link from Malta to Sicily for Vodafone

Vodafone selected Alcatel to supply a 250 km undersea cable linking its subsidiaries in Malta and Sicily. The initial capacity of the system is 2.5 Gbps with the potential to increase the capacity to over 1 Tbps. Financial terms were not disclosed.
http://www.alcatel.com

Alcatel Ships Record 3.1 million ADSL Lines in Q2

Alcatel shipped 3.1 million ADSL lines during Q2, a record for all DSL equipment suppliers. To date, Alcatel has shipped over 29.4 million lines - more than four times the volume of any other DSL equipment supplier, according to the company, giving it a cumulative 37.6% share of all lines shipped through the end of the second quarter 2003. Alcatel said its is seeing a rapid increase in deployment of DSL.
http://www.alcatel.com

China Netcom Order 400,000 Lines of ADSL from Alcatel

Alcatel Shanghai Bell has signed an agreement with China Netcom Group to supply more than 400,000 ADSL lines. The contract covers deployment of the Alcatel 7300 Advanced Services Access Manager (ASAM) and management to China Netcom subsidiaries in ten areas in northern China, including Beijing, Liaoning and Shandong. All ten projects will be completed by March 2004.
http://www.alcatel.com
  • Earlier this month, UTStarcom announced a new contract to supply over 200,000 lines of its AN-2000 IB IP-based DSLAM solution to China Netcom for deployment in several major cities in the Heilongjiang, Tiangjin, Hebei, Shangdong, and Shanxi provinces. The contract brings UTStarcom's total IP-DSLAM deployments with CNC to more than 400,000 ADSL lines since March 2003.

ADSL Overtakes Cable Modems in the UK

ADSL has now overtaken cable modems as the most popular broadband connection in the UK, according to the latest figures from Oftel, the official market regulator. BT said that its network is now available to 71% of the population, compared to 45% available coverage for cable modem. The figures show 2,335,000 broadband lines overall, with around 30,000 new broadband subscriptions per week.
http://www.bt.com

T-Online Rolls Out Wi-Fi in Frankfurt

T-Online began offering Wi-Fi access through local partners in Frankfurt. Some 200 hotspots are expected by year's end. The service uses the same account and password as the T-Online dial-up service. The price via WLAN for T-Online customers with dial-in via personal access data is EUR 0.16 per online minute.
http://www.telekom.de