Tuesday, October 28, 2003

France Telecom Reports Rapid Rise in DSL, Wireless

France Telecom reported Q3 revenues of EUR 11.65 billion, a 2.7% decrease compared to Q3 2002 on a historical basis, which the company attributed to the sale of TDF and Casema, as well as the negative impact of exchange rates. On a comparable basis, France Telecom's Q3 2003 revenues increased 3.3%, driven by robust growth from Orange and Wanadoo. Some highlights:

  • Orange added 1.3 million new customers in Q3, compared to 696,000 net additions in Q2 and 557,000 in Q1. At the end of Q3, Orange had a total of 46.9 million subscribers worldwide. In France, it holds a 49.2% share of the market, while in the U.K. it has a 26.4% share. Orange also experienced favorable ARPU trends in the quarter. Data now represents 12.5% of its network revenues. Orange's 3G network is on track for commercial launch in 2004. Hundreds of sites are now operational in the UK and France.


  • France Telecom added nearly 400,000 ADSL lines in Q3, giving it a total of 2.5 million lines in service at the end of the quarter. The company said it is on target to reach 3.0 million lines by the end of the year. Revenues from ADSL broadband Internet access (excluding revenues from Wanadoo clients) increased 23% compared to Q3 2002 due to the rapid development of ADSL in France. About two-thirds of the ADSL lines are served by Wanadoo and the remaining third by other ISPs and unbundled lines. A TV over ADSL trial is underway in Lyon.


  • At the end of Q3, France Telecom had 33.8 million access lines in service in France. It holds a 76.7% share of the local voice market and a 62.9% share of the long distance voice business. The company's fixed line business in France declined by 2.4% compared to a year earlier. France Telecom has launched new fixed-line handsets with SMS features.


  • Revenues from Business Services increased 2.1% on a historical basis and 0.3% on a comparable basis for Q3 2003 despite a difficult economic climate.
http://www.francetelecom.com

Bell Canada Adds 104,000 DSL Users in Q3

Bell Canada Enterprises (BCE) reported total Q3 revenue of $4.88 billion (Canadian), compared to $4.86 billion last year. Earnings per share were $0.49, compared to $0.40 per share last year. Major trends in Q3 include:

  • added 104,000 net DSL customers, for a total of 1,391,000


  • added 124,000 net Cellular and PCS subscribers, for a total of 4,244,000


  • added 17,000 net Bell ExpressVu satellite TV subscribers, for a total of 1,352,000


  • posted data revenue of $931 million, up by 2.5% compared to last year.


  • Free cash flow (after dividend payments and capital expenditures) was $947 million
http://www.bell.ca

OFS Files Patent Infringement Suit against Alcatel

Fitel USA Corp., the parent company of OFS, filed a lawsuit against Alcatel in a U.S. District Court charging an infringement of patents related to metro optical systems. The remedies sought include an injunction barring further sale of Alcatel's TeraLight Metro and TeraLight Ultra fibers, as well as damages for past infringement and treble damages for willful infringement.
http://www.ofsoptics.com

XtremeSpectrum Announces Royalty-Free Licensing for UWB

XtremeSpectrum, a start-up based in Vienna, Virginia, issued a letter to the IEEE promising to offer RAND-Z (reasonable and non-discriminatory-zero licensing) access to the essential patents pertaining to XtremeSpectrum's proposal currently being considered for the IEEE802.15.3a standard, the high speed wireless PAN standard. The RAND-Z guarantees that the essential intellectual property within the XtremeSpectrum proposal will be available, royalty-free, to all of industry to the extent the proposal is selected as the IEEE 802.15.3a standard. The company said its proposal, also supported by Motorola, ParthusCeva, Oki Semiconductor and CRL (Communications Research Laboratory), remains a leading candidate for the 802.15.3a standard and is the only proposal that currently has been implemented in silicon chips.


XtremeSpectrum supplies a UWB chipset capable of achieving 100 Mbps data rates while consuming less than 200 milliwatts (mW) of power. Potential applications include multimedia-centric devices, such as large screen displays, set-top boxes, DVDs, video recorders and digital cameras.
http://www.xtremespectrum.com.


Sycamore Shows MPLS Services over an Intelligent Optical Core

As part of Isocore's IP/Optical Integration demonstration held in conjunction with this week's MPLS 2003 International Conference, Sycamore Networks demonstrated Generalized Multi-Protocol Label Switching (GMPLS) multivendor interoperability. The demonstration featured an optical control plane using GMPLS signaling and routing protocols, and included Sycamore's SN 16000 Intelligent Optical Switch as well as equipment from industry-leading Layer 2/Layer 3 networking vendors and other optical layer equipment.
http://www.sycamorenet.com
http://www.isocore.com

net.com Partners with Atreus Systems to Offer IP QoS Service Fulfillment

net.com and Atreus Systems announced a strategic technology and marketing partnership to supply their carrier customers with QoS-enabled IP service delivery systems for use in applications such as voice or data VPNs, VOD, IP TV, bandwidth on demand, and content delivery. The partnership combines net.com's SCREAM service creation platform with Atreus' xAuthority Service Fulfillment operational support system (OSS) to simplify the creation, provisioning and management of advanced IP services. For carriers deploying the solution, subscribers would be able to self-provision services through a web portal, automatically driving changes to QoS, security, authentication, and policy enforcement. Significantly, the joint solution would leverage the DSL Forum's TR-59 specification for delivering IP QoS.


net.com's SCREAM platform is a broadband remote access server (BRAS), compliant with DSL Forum Technical Requirement (TR) 59, that could be deployed at the edge of a network alongside a DSLAM. Atreus xAuthority is a service definition and fulfillment environment designed to scale to millions of subscribers. The Atreus OSS is available with configurable service templates that address provisioning processes and service attributes for a variety of IP-based services, including managed firewall, virtual private networks, voice, bandwidth management and hosted applications.
http://www.net.com
http://www.atreus-systems.com
  • Two new technical reports (TR-058 and TR-059) from The DSL Forum will provide the foundation for the next generation of DSL network architecture, supporting end-to-end transport of IP with quality of service (QoS) and multicasting. Specifically, the new technical reports are expected to open up a new range and level of service offerings from value-added ASPs and ISPs, such as multiple VoIP channels, video conferencing, streaming entertainment video, rapid interaction online gaming and remote access to hosted applications. More online at http://www.convergedigest.com/standards/standardsarticle.asp?ID=8971

NetScaler Introduces Enterprise Application Accelerator for SSL and TCP

NetScaler, a start-up based in Santa Clara, California, introduced a new, entry-level Secure Application Accelerator platform for enterprises. The platform provides application-layer security, optimization, and remote access capabilities, including SSL (Secure Sockets Layer) acceleration, TCP optimization, DDoS attack protection, and static/dynamic caching, as well as support for up to 2,500 remote access users via SSL VPNs. Three models are available. Pricing starts at US$10,000.
http://www.netscaler.com
  • In January 2003, NetScaler received $13 million in venture capital to support its web application control solutions for enterprises and service providers. NetScaler's web application traffic control systems provide network managers with a single point of control over their web infrastructure. The NetScaler product line uses a “Request Switching�? technology that combines application-level security, protection, optimization and switching into a central point of web application control. The company said it has signed over 100 customers, including Yahoo!, 7-Eleven, WebEx Communications, MSN, MLB Advanced Media, United Online, Belo Interactive and GetThere, a Sabre Company. The funding round was led by new investor Sequoia Capital and included returning investors Goldman Sachs & Co., Bay Partners and Gabriel Venture Partners. Total funding to date now exceeds $60 million.


  • NetScaler is headed by B.V. Jagadeesh. Before joining NetScaler, Jagadeesh was co-founder and CTO of Exodus Communications.

T-Systems Selects Lucent for Optical Backbone in North America

Deutsche Telekom's T-Systems International selected Lucent Technologies to increase the capacity of the North American element of its international backbone ("Telekom Global Net") from 2.5 Gbps to a full coverage 10 Gbps network. Specifically, Lucent will provide T-Systems with its LambdaUnite MultiService Switch (MSS), a next generation optical transport system and switch, with an element capacity of 320 Gbps. Further capacity expansion to a multiple 10 Gbps or even 40 Gbps meshed network is possible. Financial terms were not disclosed.
http://www.lucent.com
http://www.t-systems.com
  • In June 2003, T-Systems, Deutsche Telekom's IT and network integration business, opened a new headquarters for the Americas in New York City. The carrier is targeting network solutions for the North American operations of multinational corporations that already do business with T-Systems in Europe.


  • In April, Deutsche Telekom's T-Systems division extended its IP-VPN MPLS network services into North America.


  • In March 2003, T-Systems 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.


  • In January 2002, Lucent shipped its first LambdaUnite Multiservice Switch (MSS) to Deutsche Telekom for testing.

Telefonica Selects Juniper Routers for Brazil

Telesp, Telefonica's Brazilian subsidiary, has selected Juniper Networks' entire suite of routing platforms for a new IP backbone network in Brazil. While initially deployed to support voice service expansion throughout Brazil, Telefonica's Next-Generation Network (NGN) will ultimately enable the convergence of voice, data and video services in a single network. The equipment will be installed and supported by Siemens Brasil. Financial terms were not disclosed.
http://www.juniper.net
  • Telesp, Telefonica's Brazilian subsidiary, has selected the Siemens' SURPASS platform for its next generation network. Siemens Information and Communication Networks (IC Networks) is installing a virtual trunking solution based on the Surpass hiQ Call Feature Server, the Surpass hiG IP Gateway and the Surpass hiR Media Server. Installation is expected to be complete by December 2003.

Harmonic to Raise $66 Million in Share Offering

Harmonic announced the public offering of 9 million shares of common stock at a price of $7.40 per share for an aggregate public offering price of $66.6 million. The company increased the size of the offering to 9 million shares from an original plan of 7.5 million shares.
http://www.harmonicinc.com/

Volo Launches Wholesale Packet Voice Service

Volo Communications announced today a new, nationwide, wholesale VoIP service for ISPs, Tier 1 & 2 carriers, CLECs, DSL providers and MSOs. The Wholesale Packet Voice Service bundles local and long distance phone services along with a full suite of hosted enhanced calling features, including voicemail, call waiting, call forwarding, caller ID, 3-Way calling, repeat dialing, call transfer, caller ID block, and virtual phone numbers. These services are accessible to consumers from a standard PC, telephone or IP phone. A web-based interface is available for customers to perform online account management, including Web-based Voicemail retrieval, view account activity and select phone numbers nationwide. The wholesale voice services are offered over Volo Communications' private IP network, which uses MPLS links between switches on its national backbone.
http://www.volocommunications.com

Russia's Golden Telecom and AT&T Provide MPLS Access to SWIFTNet

Golden Telecom will provide access to SWIFT's Secure IP Network (SIPN) in Russia and other Commonwealth of Independent States countries via AT&T's MPLS-based VPN service. The agreement allows Golden Telecom to provide ordering, installation and maintenance of the service and conclude agreements for the provision of access to SWIFT`s SIPN with the full support of AT&T.


Four global telecommunications providers, including AT&T were selected by SWIFT to provide SWIFT users the world over with connectivity to SIPN. AT&T has concluded a master agreement with SWIFT that provides access to SIPN for SWIFT users through a managed network IP VPN based on MPLS.


Golden Telecom operates metropolitan overlay networks in Moscow, Kiev, St. Petersburg, Krasnoyarsk and Nizhny Novgorod and intercity fiber optic and satellite-based networks - including 150 combined access points in Russia and other countries of the CIS.
http://www.goldentelecom.com

Nortel Networks Tests WLAN Mesh

Nortel Networks announced plans to trial a new public wireless LAN architecture aimed at lowering the costs of backhaul links by 70%. The new technology, which will be tested by MIT and BT, is an outgrowth of 'peer-to-peer' and 'ad hoc' networking research at Nortel Networks Ottawa Wireless Technology Lab. The new public wireless LAN architecture includes a peer-to-peer access point architecture - with smart antennas, integrated routers, and adaptive routing and security capabilities - to backhaul data wirelessly to wired broadband networks. This minimizes the need for expensive wired backhaul connections like T1 lines. One of BT's leading enterprise customers will test the technology. The MIT Media Lab will also set-up a trial network.
http://www.nortelnetworks.com

Mindspeed Posts 15% Sequential Rise in Quarterly Revenue

Mindspeed Technologies reported quarterly revenues of $23.2 million, representing a 15% increase over the previous quarter. Mindspeed's pro forma operating loss for the quarter was $18.2 million, an improvement of 27 percent over the pro forma operating loss of $25.0 million in the prior quarter.


Mindspeed said more than 75% of its sequential revenue growth during the quarter came from new products launched in fiscal year 2001 and thereafter, with particularly strong demand for VoIP, fiber-to-the-home, and DS3/E3 carrier solutions. Raouf Halim, Mindspeed's CEO, said "We believe that the telecom carrier markets are in the early stages of a sustainable recovery worldwide."http://www.mindspeed.com

Liberty Satellite Announces Termination of Agreement to Restructure Astrolink

Liberty Satellite & Technology has exercised its right to terminate the previously announced agreement to restructure Astrolink, the planned next-generation global broadband satellite network. Liberty Satellite acquired 31.5% of Astrolink in March 2000, with the remainder owned directly or indirectly by Lockheed Martin, Northrop Grumman, and Telespazio.


As a result of the termination of the restructuring agreement, Liberty Satellite will receive $7.8 million in cash in exchange for its equity interest in Astrolink and for all notes evidencing loans made by Liberty Satellite to fund Astrolink's continuing operations during the period that the restructuring agreement was pending. In addition, all claims related to Astrolink among its equity holders and creditors have been released or settled.
http://www.libertysatellite.net/http://www.astrolink.com/
  • Astrolink was formed in 1999 to establish and operate a global communications system to deliver next-generation broadband service.


  • In November 2001, both TRW and Lockheed Martin announced that they were halting further investment in Astrolink.


  • In May 2002, Liberty Satellite & Technology, Lockheed Martin, TRW and Telespazio S.p.A. agreed to a proposed restructuring of Astrolink. The restructuring plan proposed a settlement of all claims among the parties and their affiliates relating to Astrolink and the acquisition of all the assets of Astrolink by Liberty Satellite. Subject to consummation of the transactions and any necessary regulatory approvals, Liberty Satellite said it planned to pursue a revised operating plan for a new Astrolink system, taking into account current financial and market factors.

BellSouth Expands IP Telephony Partnership with Nortel Networks

Nortel Networks extended its relationship with BellSouth to supply IP telephony solutions to small- and medium-sized businesses and branch offices. The companies have been offering joint enterprise voice solutions for 21 years and are now extending the portfolio to help companies migrate toward converged networks. Included in BellSouth's packaged IP migration solution are Nortel Networks Business Communications Manager converged voice and data platform and Nortel Networks Norstar Integrated Communications Systems.
http://www.nortelnetworks.com

IDT and Net2Phone Partner on Outsourced Cable Telephony

IDT will provide local and inter-exchange network access, termination, origination and other related services to Net2Phone for the provisioning of cable telephony services. Net2Phone offers an outsourced managed replacement telecommunications service that cable operators can sell to their residential subscribers. Under the deal, IDT will provide Net2Phone Cable Telephony with its IXC and CLEC services at favorable rates. IDT will also support Net2Phone in its sales efforts to cable operators. In exchange for such favorable pricing, access to LEC and IXC facilities and exclusivity to market to cable operators, Net2Phone will grant IDT shares of its Class A common stock, which will vest at the rate of 1.38 million shares per year for five years, subject to certain performance standards to be met by IDT regarding the provision of such services.


The companies said their partnership would enable the delivery of features that raise the level of the consumer offering to that of replacement phone service, including but not limited to 911 service, CALEA, Operator Assisted Services, and procuring inbound telephone numbers. IDT's network includes switching facilities in over 20 US cities and additional points of presence in more than 10 countrieshttp://net2phone.com
http://www.idttelecom.com