China Netcom Selects Nortel Networks for Packet Telephony

Shandong Netcom, a provincial subsidiary of China Netcom, selected Nortel Networks as its exclusive equipment supplier for a next generation network. The deployment will support a variety of service delivery methods, including twisted pair phone lines, ADSL, hybrid fiber coax (HFC) cable and Ethernet using products from Nortel Networks' Multimedia Communications and Succession VoIP portfolios. This includes Nortel's Multimedia Communication Server 5200 (formerly known as Interactive Multimedia Server or IMS), which is a SIP media and applications server. Shandong Netcom will also use Nortel's Succession Communication Server 2000 - Compact superclass softswitch, Passport Packet Voice Gateways, Integrated Access Devices (IAD), SIP phones, SIP video phones, and SIP soft clients. Financial terms were not disclosed.


China Railcom recently selected Nortel Networks as the exclusive equipment supplier for its next generation network in the city of Chongqing. In addition, Hong Kong Broadband recently deployed a Nortel Networks solution for what is described as the largest VoIP network in the world.
http://www.nortelnetworks.com

• Earlier this month, Shandong Netcom, a subsidiary of China Netcom, awarded contracts valued at over US$50 million to Lucent Technologies to expand the carrier's 5ESS Switch-based personal handyphone system (PHS) network. The contracts cover four cities, Qingdao, Jinan, Weifang, and Yantai. These expansions bring the total capacity for these four cities to 2.7 million subscribers.



• Also 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.

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Thomson Ships 807,000 DSL Modems in Q2

Thomson shipped 807,000 DSL modems in Q2 2003, giving it a 9.9% share of the global market, according to figures from Gartner that were released by Thomson. In a recent reorganization, Thomson combined all its Telco products and services into a central Telecom business unit. The company is also focusing on telco video solutions.
http://www.thomson.net

• In 2001, Thomson acquired Alcatel's DSL modem business.

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Samsung Launches 100-Hour DIRECTV DVR

Samsung Electronics America introduced a DIRECTV DVR with TiVo recorder with the ability to store up to 100 hours of programming on its 120 GB hard disk. The unit has two USB expansion ports for future home entertainment services. List pricing is $499 and the DIRECTV with TiVo service monthly subscription fee is $4.99 (or free to customers subscribing to the PREMIER package.)http://www.samsungelectronics.com

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Nokia Looks to New Models for Next Billion Mobile Users

Nokia plans to introduce new mobile phones, business models and network solutions aimed at untapped global markets for mobile communications. Nokia believes it possible for the worldwide mobile subscription base to reach two billion in 2008. Currently, there are about 1.2 billion mobile phone users in the world. Specifically, Nokia estimates that "with the right mix of phones, optimized network solutions and low-cost voice and data services, operators can in the near future generate reasonable profit from customers even at average revenue per user (ARPU) levels of US$5 per month and below.
http://www.nokia.com

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Millennium Digital Media Chooses ADC's Cuda CMTS

Millennium Digital Media has purchased ADC's Cuda 12000 Next-Generation CMTS. The company serves some 150,000 residential and business customers in Washington, Oregon, Michigan and Maryland, and is ranked among the top 25 MSOs in the U.S. Millennium Digital Media has also deployed ADC's FastFlow Broadband Provisioning Manager (BPM) software in its Washington region. Financial terms were not disclosed.
http://www.adc.com

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Korea's Dacom Selects Lucent to Expand Backbone

Dacom, one of South Korea's leading wireline and broadband service providers, selected Lucent Technologies to supply optical networking systems to expand its DWDM backbone network and also to build out a storage DWDM network for its customer, Korea's Supreme Court. The contract covers Lucent's Metropolis Enhanced Optical Networking (EON), a 32-channel DWDM metro optical system, in three metropolitan areas of Seoul, Inchon and Daejeon as well as major cities in Gangwon province. The contract marks the first time that Metropolis EON is being used as a storage networking application in Korea. Financial terms were not disclosed.
http://www.lucent.com

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Case Western Offers Largest Free Wi-Fi Network

Case Western Reserve University is opening more than 1,230 Cisco Aironet 1200 wireless access points 01-September-2003, providing free Internet access to faculty, students, staff and visitors. The university said the project represents the first phase of blanketing the city of Cleveland, Ohio with free wireless Internet access. The network is described as the nation's largest free, public wireless service.
http://www.cwru.edu

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Oklahoma Attorney Launches New Case Against WorldCom

Oklahoma Attorney General Drew Edmondson issued criminal indictments against WorldCom and six of its former management staff, including Chief Executive Officer Bernard Ebbers, Chief Financial Officer Scott D. Sullivan, Controller David F. Myers, Director of General Accounting Buford T. Yates, Jr., Director of Management Accounting Betty L. Vinson and Director of Legal Accounting Troy M. Normand. The criminal complaint alleges that the company and these six employees executed a scheme to artificially inflate the value of WorldCom stock and bonds by intentionally falsifying information filed with the Securities and Exchange Commission.


In response, MCI stated that it intends to fully cooperate with the Oklahoma state Attorney General, but that it does not believe this action will impact the bankruptcy process. MCI said it remains on track for its confirmation hearing before the federal Bankruptcy Court, which is scheduled to begin on 08-September-2003.
http://www.oag.state.ok.us/

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BellSouth Adds DirecTV to its Service Bundle

BellSouth and DIRECTV entered into a strategic marketing alliance under which DIRECTV digital satellite television service will be sold to BellSouth customers beginning in early 2004. BellSouth residential customers will be able to bundle DIRECTV with their other voice, DSL and wireless communications services at packaged, discounted savings. The companies also agreed to explore ways of integrating digital satellite and terrestrial broadband services. DIRECTV ordering software will be integrated into all BellSouth call centers. The companies said they are focused on offering a complete "cable TV replacement service at an attractive price."


Bill Smith, BellSouth's chief product and technology officer described the partnership is "a long-term solution" for expanding its service bundle. In addition to short-term capabitlities in video services, Bill Smith said the DIRECTV partnership provides a "clear roadmap for evolving the BellSouth network. "Specifically, BellSouth is working to expand the partnership to include a distribution of DIRECTV programming over broadband network facilities. This could include fiber to the home (FTTH) deployments in the future based on the joint FTTP RFP recently issued in partnership with Verizon and SBC. BellSouth expects that its existing fiber-to-the-curb network will pass one million homes by the end of this year. Smith said he would continue to add capabilities to the BellSouth DSL network while rolling out more fiber into the network.


BellSouth currently offers its "Americast" digital cable service in selected communities in its service terrritory.
http://www.bellsouth.com
http://www.directv.com

• In July 2003, SBC Communications announced a partnership with EchoStar Communications to offer a co-Branded satellite TV service as part of its integrated local, long distance, wireless and DSL bundle. The deal is an exclusive telecom partnership for single-family residences throughout the SBC 13-state traditional service area, where SBC provides service to more than 56 million access lines. The two companies will begin work immediately on integrating operations, including order entry, customer service and billing, so they can begin offering customers the co-branded service in early 2004. EchoStar's DISH Network currently reaches more than 8.5 million customers nationwide. As part of the deal, EchoStar Communications issued and sold a $500 million 3.0 percent convertible subordinated note due 2010 to SBC Communications. The note is an unsecured obligation of EchoStar convertible into approximately 6.87 million shares of EchoStar's Class A Common Stock at the option of SBC ($72.82 per share), subject to adjustment in certain circumstances.



• In July 2003, Qwest Communications signed a strategic marketing agreement with DIRECTV to offer satellite TV as part of its consumer bundle of consumer services. Initially, Qwest will offer satellite TV services available to its customers in single family homes in Phoenix and Tucson, Arizona, and Seattle through DIRECTV. The company expects to rollout these services to more markets throughout the remainder of 2003 and into 2004. The partners are exploring ways to further enhance this relationship with next-generation services as well as migrating to a more integrated model in the first half of 2004 where Qwest will be the primary interface for various customer interactions including service and billing.



• Also in July 2003, Qwest signed a strategic marketing agreement with EchoStar Communications under which it will offer the DISH Network satellite TV services available to its customers in single family homes in Colorado and Nebraska. Qwest currently offers multi-channel video entertainment to approximately 64,000 customers using a variety access methods, including VDSL, satellite and HFC.

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Sprint Leverages FCC UNE-P Order to Expand its Local Service Bundles

In a direct response to the recent FCC order on UNE-P, Sprint announced a significant expansion of its portfolio of local, long-distance and nationwide wireless bundles. The Sprint "Complete Sense" services leverage Unbundled Network Elements Platform (UNE-P) facilities from other carriers. The portfolio consists of four bundled calling plans -- including an unlimited local, domestic long-distance and wireless bundle called Sprint Complete Sense Unlimited with PCS. Sprint will offer the bundles in selected markets in 36 states and the District of Columbia reaching 80% of the U.S. population. This complements the other bundled offers already available to approximately five percent of the country through the Local Telephone Division of Sprint.
http://www.sprint.com

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Alcatel Invests Heavily in 3G R&D in China

Alcatel will invest an additional US$45 million in R&D programs in China focused on 3G infrastructure. R&D in 3G already was expected to constitute a significant portion of the US$100 million R&D commitment in China that Alcatel announced earlier this year.


According to the Chinese Ministry of Information Industry, by the end of July 2003, the number of mobile subscribers in China had reached 234 million, representing the largest mobile phone market in the world.
http://www.alcatel.com

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FCC Lifts Freeze on New Satellite License Applications

The FCC lifted a freeze on new satellite license applications that had been in place since 23-April-2003. The temporary freeze, which did not affect Direct Broadcast Satellite (DBS) and Digital Audio Radio Satellite (DARS) satellites, was intended to remain in effect between the time the FCC adopted its the First Space Station Reform Order and when the rules were actually published in the Federal Register.
http://www.fcc.gov

• In April 2003, the FCC adopted a new licensing process aimed at accelerating the rollout of satellite Internet services. The new rules create a queue for satellite applications whereby each application will be considered under the Commission's public interest standard in the order in which it is filed. The new framework also establishes different procedures for licensing nongeostationary-like satellite systems (NGSOs) and geostationary–like systems (GSOs). In order to discourage companies from speculating in the market by acquiring licenses and then holding them indefinitely, the FCC is including a requirement that licensees post a $5 million to $7.5 million bond within 30 days after receiving a license, payable upon revocation of the license for missing a milestone; a limit of five pending GSO applications and unbuilt GSO satellites and one pending NGSO application or unbuilt NGSO system in a particular frequency band; an attribution rule so that licensees cannot evade these limits; and additional implementation milestones and stronger enforcement of milestones. Finally, to prevent a “land rush,�? the Commission imposed a freeze on satellite applications (except for next-generation replacement satellites) effective immediately. The new rules do not apply to Direct Broadcast Satellite Service or the Digital Audio Radio Satellite Service.

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