Monday, September 8, 2003

ADC and Sumitomo Electric Form Alliance for FTTP

ADC, Sumitomo Electric, and Preformed Line Products (PLP) have formed an alliance to provide an end-to-end solution for fiber-to-the-premise (FTTP) networks. PLP provides the access terminals and splice closures needed in any FTTX deployment. ADC delivers fiber connectivity equipment, including ACE hardened outdoor cabinets, fiber termination storage and splicing, and fiber connectorization. Sumitomo Electric provides fiber cable, feeder, distribution and drop cable along with optical components all connectorized with ADC products.
http://www.preformed.com
http://www.adc.com

Level 3 to Launch Wholesale Hosted IP Telephony Services

Level 3 Communications is preparing to launch a wholesale, hosted IP telephony service aimed at the enterprise market, said Kevin O'Hara, president and COO of Level 3, speaking at this week's Morgan Stanley Global Media & Communications Conference in Boston. The service would let small and medium-sized companies replace their PBXs with a hosted, IP service with a list of advanced features. The "3Tones" service will be based on technology from Level 3's acquisition of Telverse earlier this year. O'Hara said the Telverse technology lets the company "go after a very large part of the existing voice business at a 30-40% discount to the best prices out there today and still enjoy margins consistent with what Level 3 expects."


O'Hara said two of the RBOCs have agreed to resell the service. The RBOCs would provide all customer-facing operations, but the key packet telephony intelligence would be hosted by Level 3. O'Hara expects Level 3 might eventually attract 20 to 25 resale partners for the service, each of which would have a customized version. Some other highlights of his presentation:


  • Softswitched services represent 48% of Level 3's communications revenue


  • IP and data services represent 25% of Level 3's communications revenue


  • Transport & Infrastructure services represent 27% of Level 3's communications revenue


  • Level 3 continues to look for acquisition opportunities and believes that its structure makes it a "natural consolidator for the industry." The strategy is to map all of the target company's traffic to the Level 3 network and then shut down the duplicative network and fiber facilities. This was the model used with Genuity.


  • the company has reduced its debt load by $3 billion from its peak
http://www.level3.com

AT&T Plans a Vonage-style Consumer VoIP Service

AT&T is currently testing a "bring your own access" consumer VoIP service similar to the Vonage model, said David Dorman, AT&T Chairman and CEO, speaking at this week's Morgan Stanley Global Media & Communications Conference in Boston. Dorman sees great potential in such an AT&T branded, consumer VoIP service because of the "many interesting voice features it could offer," like "pick your own area code," "phone number for life," and the ability to reach the service from anywhere over the Internet. Internal testing of the hosted VoIP service is underway at AT&T. Dorman expects these trials will be expanded soon.


Meanwhile, AT&T plans to significantly increase its consumer and business UNE-p presence nationwide. AT&T is currently serving 1 million small business phone lines and more than 3 million residential customers in 13 states, primarily using UNE-p facilities. The company will offer its "All In One" business plan and its residential "One Rate USA" bundled service in 35 states by year-end. Dorman credited recent technology improvements for greatly increasing its efficiency in selling UNE-p based services. In particular, Dorman said the company is able to more accurately target potential customers for its bundled plans. A full 90% of UNE-p customers choose the local + long distance bundle. AT&T set new records for consumer line additions in July and August. Other highlights from Dorman's presentation included:


  • a corporate restructuring has reduced the layers of management at AT&T from 14 to 7. A full 40% of managers were asked to leave the company.



  • The positive cash flow trend at AT&T remains strong and the company continues to pay off its debt. By the end of the year, the company will have $10 billion in long term liabilities, compared to $60 billion at the peak.



  • Regarding the FCC's recently issued Triennial Review order, Dorman said he was "not at all surprised" that the RBOCs would continue the legal fight on UNE-p. He believes that most of the state public utility commissions will uphold UNE-p because "its good for competition." Dorman said the best argument in favor of UNE-p is that "the RBOCs have responded by lowering prices and becoming more creative in their service bundles -- all of which is good for consumers."



  • On the broadband side of the FCC ruling, Dorman anticipates a new round of litigation because the "RBOCs got what they asked for, not what they wanted." Regarding potential FTTP deployments by the RBOCs, Dorman feels that the economics "must be pretty daunting, unless they can capture 30% or more of the video business," which he doubts.



  • Regarding major mergers/acquisitions in the industry, Dorman expects a new wave of consolidation will help address the on-going supply vs. demand imbalance. He offered no predictions as to how or when the M&A process could get restarted.
http://www.att.com

U.S. Wireless Carries Adopt 10-point Consumer Code

The Cellular Telecommunications and Internet Association (CTIA) published a 10-point code of conduct aimed at protecting consumer rights. Key points of the voluntary code are:


1. Disclose rates and terms of service to consumers

2. Make available maps showing where service is generally available

3. Provide contract terms to customers and confirm changes in service

4. Allow a trial period for new service

5. Provide specific disclosure in advertising

6. Distinguish carrier charges from taxes on billing statements

7. Provide customers the right to terminate service for certain changes to contract terms

8. Provide ready access to customer service

9. Promptly respond to consumer inquiries and complaints received from government agencies

10. Abide by policies for protection of customer privacy


Companies adopting the code include SprintPCS, AT&T Wireless, Nextel, T-Mobile USA and others.
http://www.ctia.org

AT&T selects Lucent's Metropolis for Next Gen SONET

AT&T awarded a multi-year agreement to Lucent Technologies to supply its Metropolis DMX Access Multiplexer and Metropolis DMXtend Access Multiplexer for deployment in the AT&T intelligent optical network. The equipment enables AT&T to deliver a full range of SONET and Ethernet services, while leveraging their installed SONET infrastructure. Financial terms were not disclosed. Lucent Worldwide Services also is providing program management, engineering and installation services to AT&T.
http://www.lucent.com
  • Lucent's Metropolis product family includes the DMX Access Multiplexer for central office and large enterprise applications, the DMXpress for customer premises applications, and a new DMXtend box for enterprise and loop access applications. All three systems provide metro Ethernet over SONET (EoS) using Generic Framing Procedure (GFP) and Virtual Concatenation technology.


  • In June 2003, Lucent announced a contract to supply its Metropolis DMX Access Multiplexer to BellSouth.


  • In February 2002, AT&T announced the integration of Cisco Systems' ONS 15454 SONET Multiservice Platform and the Cisco Transport Manager as key elements of its nationwide optical network buildout. AT&T is using the Cisco ONS 15454 to provide multi-service aggregation of lower-rate customer traffic up to high-speed (OC-48 or OC-192) pipes for routing across the network. AT&T said it would also use CIENA's CoreDirector optical switch as another key elements in its new intelligent optical network. AT&T is using the CoreDirector to carry traffic at a variety of bit-rates, from 45 Mbps to 10 Gbps, for provisioning services via point-and-click capability at both ends of the circuit.

Level 3 to Provide Internet Backbone for HNS

Level 3 Communications signed a customer agreement with Hughes Network Systems (HNS) to provide interconnect services to the public Internet for SPACEWAY, a new two-way satellite service launching in 2004. HNS is purchasing (3)CrossRoads Internet access and (3)Center Colocation services from Level 3 in the U.S. The services include connectivity directly to the public Internet for SPACEWAY managed traffic and access to a high-speed terrestrial backbone for operational related information. In addition, HNS plans to colocate several antennas directly on Level 3's backbone. Financial terms were not disclosed.
http://www.Level3.com

Zhone Unveils PON Solution for Triple Play

Zhone Technologies unveiled a PON solution for its Single Line Multi-Service (SLMS) architecture, which is designed to enable telephone carriers to deliver the triple-play of voice, data and video services to their subscribers over a single network. Zhone is introducing new Multiple Access Line Concentrator (MALC) PON optical line termination (OLT) cards. Designed for CO, RT, outdoor cabinet or basement deployment, Zhone's MALC media- and protocol-agnostic packet loop carriers can be configured for traditional and next generation architectures, including ATM packet loop carrier, optical line termination unit, ATM/IP DSLAM and traditional DLC. Zhone's implementation supports the B-PON standard (G983.3).


Zhone will also be introducing a PON Residential Gateway that serves as the ONT/ONU for connections directly to residential subscribers. The device delivers up to four POTS voice ports, fast Ethernet and RF video over a single fiber input. The unit also features the ability to distribute Ethernet over coaxial cable for homes where Cat 5 wiring is not available. The Ethernet signal is converted inside the ONT to an 802.11 RF signal which is then combined with the video signal on the coaxial cable.
http://www.zhone.com

Cingular Wireless Cradle Reroutes Wireless Calls to Landlines

Cingular Wireless introduced a "FastForward" device that reroutes calls from a mobile phone to a landline phone. The device is designed as a cradle to hold and recharge a wireless phone. Cingular customers with a FastForward device can get unlimited incoming wireless calls (minutes) forwarded to their landline phone in the local calling area -- without the minutes counting against their monthly wireless calling plan. The service costs $2.99 per month, but is free to SBC residential local phone company customers who receive a single bill for Cingular wireless and landline services, and BellSouth customers who sign up for a combined bill and two other features.
http://www.cingular.com

Nokia Releases its Latest DSLAM

Nokia introduced its D500 Release 3 DSLAM targetting DSL operators that are evolving from ATM towards All-IP networks. New features include high-capacity streaming media capabilities, Internet Group Management Protocols (IGMP) multicasting and support for SIP Call Control, voice over DSL and ATM, and Voice over Packet. Trials with the Nokia D500 Release 3 are set to begin during autumn of this year with selected customers.
http://www.nokia.com

AT&T to Support Telecoms Sans Frontieres

AT&T announced a global agreement to support Telecoms Sans Frontieres (TSF), a non-governmental organization (NGO) dedicated to providing emergency telecommunication services. TSF's mission is to supply telecommunications capabilities for humanitarian aid teams on the ground, while enabling victims to restore contact with the outside world by for example, calling their families and friends from whom they have lost contact. Less than 48 hours after learning of an emergency, TSF can arrive on the scene anywhere in the world and set up an operations center within a matter of minutes.


In addition to financial assistance from the AT&T Foundation, AT&T Business is contributing technical support for the development of TSF initiatives by providing TSF teams with free remote access to the Internet and a supply of AT&T PrePaid Phone Cards.
http://www.att.comhttp://perso.wanadoo.fr/tsfi/html_e/e_index1.htm

Verizon Expands Business SHDSL Service to New Markets

Verizon began offering its new Business SHDSL service in a number of new markets across the U.S. The service is now available in 16 states and the District of Columbia. Prices range from $149.95 to $369.95 per month, according to speed, which ranges from 192 Kbps to 1.5 Mbps.
http://www.verizon.com

SBC's Whitacre Sees Growth in DSL but No Incentive for FTTP

SBC Communications added its three millionth DSL customer earlier this week. Edward E. Whitacre Jr., SBC chairman and CEO, said DSL growth continues to accelerate "as more consumers and businesses move to broadband." Speaking at the Morgan Stanley Global Media & Communications Conference in Boston, Whitacre announced plans to make DSL available to nearly 80% of SBC's customers in 2004, compared to 67% today. Other highlights of Whitacre's address include:

  • The Echostar partnership is on track to launch a co-branded "SBC dish" satellite TV service in early 2004, which Whitacre would make SBC the first to offer a "quadruple play" or voice, wireless, DSL and video. Notably, Whitacker said its special relationship with EchoStar enables it to "own the customer," unlike other satellite resale agreements by SBC's peers.



  • Whitacre described the FCC's recently issued Triennial Review order as a "huge disappointment." He said the FCC order "didn't change much on UNE-p and it didn't do much on the broadband side either." He complained that the FCC's attempt to set a national broadband plan was "muddled" and really does not provide any new incentives for SBC. As a result, he predicts further job losses at SBC but did not provide specific numbers of anticipated cuts.



  • As for the recent joint FTTP RFP, Whiteacre estimates that the costs will probably be above $2,000 per home (equipment plus trenching). Due to this cost and to regulatory requirements to preserve some level of competitor access on these new lines, Whiteacre said fiber-to-the-home is not in its plans, except in certain new deployments. Whiteacre said he just "doesn't see the incentive for FTTP" and that even a drop of several hundred dollars in equipment prices would be unlikely to change his mind.



  • Access line losses are slowing down due to success with long distance + local bundling.



  • SBC is preparing to launch a major push into national, enterprise data services, pending long distance approvals in the mid-West



  • Whiteacre said poor overall economic conditions continue to hamper growth. SBC's workforce is expected to continue to decline as a result of lower demand in the core business and cost-cutting efforts.



  • Capital expenditures are expected to be approximately $5 billion in 2003 and below that level in 2004.
http://www.sbc.com

Motorola and Proxim Expand Strategic Relationship

Proxim and Motorola expanded their strategic relationship to include a licensing and distribution agreement under which Proxim's Wi-Fi and wireless broadband solutions will be offered to Motorola CGISS' commercial and industrial customers. The license and distribution agreement is initially estimated at $10 million through 2004 for Proxim.
http://www.proxim.com
http://www.motorola.com/cgiss

CableLabs Names VP for Go2Broadband and a Chief Architect

CableLabs has hired Jenifer Cistola as Vice President of its Go2Broadband project, a service that creates an Internet-based electronic commerce tool to assist affiliated computer makers, retail partners, and content providers in selling cable services. Cistola previously served as Vice President of Product Marketing at Scientific Atlanta.


CableLabs also named Ed Miller as Chief Network Architect. Miller returns to CableLabs in a role that will focus on defining the next-generation network architecture for cable systems as well as working with CableLabs member companies to advance new packet-based solutions over the PacketCable Multimedia platform. He previously worked for Terayon Communications as Vice President, Voice Solutions.
http://www.cablelabs.com

Hong Kong's PCCW Deploys VideoTele.com's Digital Headend

Hong Kong's largest telecommunications provider, PCCW, selected VideoTele.com's Astria content processor solution for delivering DVD-quality TV channels over its broadband network. PCCW's network supports one of the largest deployments of DSL lines in the world, with a broadband retail customer base of 480,000 subscribers. VideoTele.com's Astria content processor accommodates both analog and digital broadcast video from multiple sources in a variety of formats. It provides real-time processing and conditioning of all the audio and video content for distribution over any ATM, IP, or RF broadband network. Financial terms were not disclosed.
http://www.tutsystems.com
http://www.pccw.com
  • In August 2003, Hong Kong's PCCW Limited unveiled a new pay-TV service delivered over its broadband ADSL network using IP multicast technology. PCCW currently has a broadband customer base of 480,000 subscribers. The new Broadband TV service will carry feature films, regional and international news, documentaries, music, sports, health, fashion, travel and children's programming. Content agreements have been signed with 23 major channels. PCCW said it is network is capable of delivering DVD-quality video to all locations in Hong Kong. At the customer home, digital decoder set-top box is connected via Ethernet cable to the ADSL modem. PCCW is using encryption for its Broadband TV service. A Conditional Access Unit at the core of the network ensures secure access to the system, protects content from piracy and allows customers to subscribe to channels online. PCCW has applied for a patent for its secure access technology. PCCW will promote the new Broadband TV service through an advertising campaign as well as through its 21 retail outlets throughout Hong Kong. PCCW is also featuring a flexible pricing model at rates of HKG$15 to HKG$35 per month per channel selected. Channels can be added or dropped using on-screen menus and the remote control. PCCW is targetting 20,000 subscriber sign-ups per month for Broadband TV.

Cometa AnnouncesWi-Fi Launch in Seattle

Cometa Networks, the wholesale Wi-Fi service provider backed by AT&T, Intel and IBM, unveiled network plans for 250 new Seattle hotspots. Locally based AT&T Wireless will be Cometa's premier service provider for the Seattle market launch. In addition, Sprint, AT&T and iPass will also provide Wi-Fi service to Seattle area customers.
http://www.cometanetworks.com

Cramer Names Razi Imam Americas VP of Marketing

Cramer Systems announced the appointment of Razi Imam as Vice President of Marketing for the Americas. Imam joins Cramer from CoManage, where as Vice President of Marketing and Business Development, he was instrumental in building CoManage's market profile in data integrity and OSS.
http://www.cramer.com

Worldwide DSL Subscribership Reaches 46.7 Million

The DSL Forum announced that DSL subscribers increased by 5.2 million in Q2 2003, reaching a total base of 46.7 million worldwide. There were 10.7 million new subscribers overall during the first half of 2003. According to research by Point Topic, seven of the 54 countries that now have commercial broadband DSL services accounted for almost 75% of the world's subscriber growth: Japan added 2.6 million; China and the USA added in excess of one million each and four European countries added more than half a million new DSL subscribers each.


The DSL Forum has set a target for a global mass market for broadband DSL - 20% of all phone lines - 200 million subscribers by the end of 2005. South Korea remains the only country in the world to have achieved mass market status with 29.7% of its phone lines delivering DSL services using a combination of ADSL and VDSL. A further seven countries have achieved in excess of 10% phone line penetration, four have reached more than 9% and another eight are at greater than 5%.
http://www.dslforum.com

Japan's Yahoo! BB Adds 156,000 VoIP Lines in August

Yahoo! BB, the Japanese broadband service provided by Softbank and Yahoo! Japan, issued its latest monthly progress report.


























































Yahoo!
BB Subscribers


  Aug-03 Jul-03 Jun-03 May-03 Apr-03 Mar-03 Feb-03 Jan-03
Yahoo!
BB lines installed
3,092k 2,961k 2,822k 2,680k 2,547k 2,363k 2,181k 1,972k
Yahoo!
BB phone users
2,828k 2,672k 2,515k 2,353k 2,162k 1,974k 1,806k 1,585k
Central
offices
2,188 2,155 2155 2148 2,146 2,144 2,135 2,098


http://www.softbank.co.jp/en/newsrelese/2003release/e030909.htm

Wayport Hires SBC Executive to Serve as COO

Wayport announced the appointment of Greg Williams as chief operating officer (COO), a newly created position at the company. Most recently, Williams was president of SBC IP Communications Inc. and previously served as president of Prodigy Communications. He has also held executive roles in many SBC divisions including wireless systems, service activation, strategic planning, labor relations, network distribution services and regulatory relations.
http://www.wayport.net
  • In August 2003, SBC Communications announced a roaming agreement with Wayport as part of its effort to deploy some 20,000 Wi-Fi hotspots in 6,000 venues over the next three years. Wayport has also signed deals with SBC, Verizon Wireless, Sprint, McDonalds, MCI, AT&T Wireless, Boingo, iPass and GRIC.