Redback to Open Broadband Services Development Center

Redback Networks is creating Broadband Services Development Center at its corporate headquarters in San Jose, California to help service providers and content providers to create, evaluate and deploy value-added subscriber services. The center will help create pre-tested, pre-packaged services and provide a test bed for Redback's customers and partners.


Some of the pre-packaged services Redback has developed or is developing include Application Specific Bandwidth (ASB), turbo button, service guarantees for online gaming, dependable voice services, seamless subscriber portability across home and wireless networks, etc.


Already Redback has worked jointly with IBM to create the Rapid IP Services (RISES) web portal facility to build and test new broadband services with self-subscription capabilities for the end-user. http://www/reback.com

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Qwest Places $1.775 Billion in Senior Notes

Qwest Communications placed an offering of $1.775 billion aggregate principal amount of senior debt securities. http://www.qwest.com

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Cisco and ADP Team on IP Telephony

Cisco Systems and The Dealer Services Group of Automatic Data Processing are collaborating on IP telephony solutions for automotive dealerships. The companies are offering a "Network Phone" that combines Cisco's IP phone system with ADP's business computer system. Automobile dealership employees can listen to their e-mail on a Cisco IP phone, check voice mail via the Internet, forward faxes to any local fax machine, and view faxes on their computer. http://www.cisco.com

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Vivato Appoints Donald Stalter as New CEO

Vivato, a WLAN start-up whose technology is based upon an innovative signal processing and antenna design, named Donald Stalter as its new CEO. Previously, Stalter served as the chief operating officer for Terawave Communications. Earlier in his career, Stalter held the position of vice president and general manager of the digital transport division at ADC Telecommunications. http://www.vivato.net

http://www.vivato.net

• In June 2003, Vivato, a start-up based in San Francisco, raised $44.5 million in third round funding for its Wi-Fi switches. The new funding was led by Advanced Technology Ventures (ATV), joined by all of Vivato's previous investors, including Leapfrog Ventures, U.S. Venture Partners, Walden International and Intel Communications Fund.



• In March 2003, Vivato introduced its 2.4 GHz Outdoor Wi-Fi Switch capable of extending outdoor coverage for up to 4 km. The Vivato switch can penetrate exterior and interior walls to provide Wi-Fi coverage throughout an entire structure. Designed to support standard 802.11b Wi-Fi devices, the Vivato 2.4 GHz Outdoor Wi-Fi Switch provides three simultaneous beams of Wi-Fi throughout the coverage area. Its unique PacketSteering technology directs up to 33 Mbps of Wi-Fi capacity to active clients through an electronically controlled phased array antenna that creates high gain beams of Wi-Fi. The U.S. list price for the Vivato 2.4 GHz Outdoor Wi-Fi Switch is $13,995.



• In February 2003, Vivato introduced a 2.4 GHz Indoor Wi-Fi Switch that provides an indoor range of up to 300 meters with standard Wi-Fi clients. The Vivato switch is a flat panel unit, which resembles a plasma television screen, operates in the 2.4 GHz frequency band and delivers three simultaneous beams of Wi-Fi.

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Time Warner Telecom Launches Extended Metro Ethernet Services

Time Warner Telecom launched a new, inter-city Ethernet service, called Extended Native LAN, in 44 U.S. metropolitan areas. The new service connects the local capabilities of Time Warner Telecom's Native LAN services to other cities across the country. The Extended Native LAN service is a managed end-to-end customer solution delivered over Time Warner Telecom's IP fiber backbone.


Among the first customers for Time Warner Telecom's new Extended Native LAN service is Tucson, Arizona-based First Magnus Financial Corporation, a mortgage bank that is embarking on a nationwide expansion. Time Warner Telecom has extended its SONET fiber-optic network to multiple First Magnus data centers including Tucson (AZ), Ontario, (CA), Austin (TX) and Honolulu (HI) to supplement numerous data, voice and Internet circuits already being provided throughout the country. A 45 Mbps Extended Native LAN in Ontario and a 30 Mbps Extended Native LAN in Austin connect the regional offices back to the Tucson headquarters using Time Warner Telecom's IP backbone. The LAN supports First Magnus' redundant data transfer requirements between these locations including VoIP, imaging and application data, with an Ethernet interface delivering bandwidth scalable to 1+ Gbps.


Time Warner Telecom noted that more than 680 customers are now using its Ethernet services. Its network has over 1,250 Ethernet ports in service. http://www.twtelecom.com

• In March 2003, Time Warner Telecom, a facilities-based carrier , unveiled its "Metro Ethernet Services -- Tomorrow's Network Today" strategy for business customers. Time Warner Telecom began offering native LAN services at rates from 10 Mbps to 1 Gbps, with plans to expand up to 10 Gbps. Time Warner Telecom said it has signed more than a hundred customers so far. The Ethernet service is delivered using Cisco Catalyst switches at the customer site, coupled with the Cisco 7600 platform to aggregate service delivery. At the time, the companies said Time Warner Telecom is one of Cisco's largest ONS customers.

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3.5GHZ Broadband Wireless Net Deployed on Isle on Man

Domicilium, a leading ISP on the Isle of Man, has deployed Cambridge Broadband's VectaStar fixed wireless access solution, making it the first commercial 3.5GHz fixed wireless network in the UK, according to the company. Domicilium is offering a variety of high-speed Internet services to banks, trading houses, multi-tenant buildings and schools throughout the island. http://www.cambridgebroadband.com/

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Verio Appoints Former IBM Exec as CEO

Verio, a wholly owned subsidiary of NTT Communications, named Gregory A. Conley as chief executive officer, replacing Justin Jaschke, who founded the company in 1996. Conley was most recently president and chief executive officer of Tanning Technology Corporation, a global systems integrator and IT solutions provider that was acquired by Platinum Equity in June 2003. Prior to Tanning, Conley served as global general manager of e-Markets at IBM and also a member of IBM's Senior Leadership Group. http://www.verio.com

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Alcatel Acquires WaterCove Networks

Alcatel agreed to acquire WaterCove Networks, a start-up developing next generation mobile networking equipment called GGSN (GPRS Gateway Support Node) for an undisclosed sum.


Key elements of the WaterCove architecture include an intelligent server that creates and manages subscriber profiles and network policies. It provides streamlined provisioning for subscriber data profiles by leveraging existing systems that contain this information, as well as open systems interfaces to third party and/or internally developed applications and services. WaterCove's Mobile Data Support Node performs switching, service delivery, subscriber aggregation and network resource management. Deep processing power enforces policies and for real-time metering.


The Watercove technology and Alcatel software can be used by mobile operators to charge their subscribers according to the type of content they wish to access or the way they prefer to access this content. For example, an operator can choose to charge a different price for sports-results multimedia messages than for traffic-warning multimedia messages, or different prices for instantaneous access versus delayed access to the results of a sports event. Watercove's GCSN is being used by Orange UK.


Watercove Networks is based in Chelmsford, Massachusetts. http://www.alcatel.com

• In August 2003, Alcatel signed a strategic OEM agreement to resell WaterCove Networks' Mobile Data Service System (MDSS) as part of its expanded packet data portfolio for 2.5G and 3G networks.



• In January 2003, WaterCove raised $20 million in third round financing. Charles River Ventures, Sprout Group, Orange Ventures and Bessemer Venture Partners participated in this round. The company has raised a total of $70 million of equity financing to date.



• WaterCove Networks is led by Jayesh Patel, who prior to founding WaterCove was Vice President of Product Management and Business Development for Northchurch Communications. Northchurch was acquired by Newbridge Networks in 1999.

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Alcatel Selected for EU's Satellite Digital Multimedia Broadcast Project

Alcatel Space will lead a consortium of 20 companies developing Satellite Digital Multimedia Broadcast (SDMB) technology to complement 3G mobile networks. The European Union MAESTRO Research and Development project (Mobile Applications & sErvices based on Satellite & Terrestrial inteRwOrking) will specify, implement and validate the critical features of SDMB system architecture.


Studies conducted by the European Space Agency (ESA) and the French CNES have contributed to the emergence of the SDMB concept in Europe. Other projects such as MODIS, SATIN and RELY, in the scope of the European R&D program (EU IST FP5) have demonstrated the overall feasibility of the proposed innovations, the improvement of regulatory opportunities, and also the assessment of potential market benefits. http://www.alcatel.comhttp://ist-maestro.dyndns.org

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RealNetworks Reaches 1.3M Subscriptions for Consumer Digital Media

In 2003 consumer digital media services became RealNetworks' primary revenue driver, largely through the growth of subscription services. By year's end, the company grew its subscriber base to more than 1.3 million paying subscribers, up 44% from the end of 2002 and up 13% from the third quarter of 2003. In 2003, RealNetworks focused its consumer investments most deeply on the two digital media businesses that were poised for adoption by mainstream users: music and downloadable games. http://www.realnetworks.com

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KT Selects Alcatel's 7670 Routing Service Platform

KT (Korea Telecom) selected Alcatel's 7670 Routing Service Platform (RSP) for its IP-enabled multiservice backbone. The Alcatel 7670 RSP will leverage the existing ATM switches in KT's network to deliver MPLS- and ATM-based premium data services. Additionally, KT can offer these services using a single network, allowing a smooth migration for their current ATM customers to adopt new MPLS-based services. Financial terms were not disclosed. http://www.alcatel.com

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GlobespanVirata Reports Revenue of $137 Million

GlobespanVirata reported Q4 revenue of $137 million, a 168% increase over Q4 2002 and a 39% sequential increase over Q3 2003. This marks the sixth consecutive quarter of revenue increases for the company. The figures include revenues for the wireless LAN business acquired in August 2003 from Intersil. Net loss and basic and diluted loss per share were ($10,912,000) and ($0.07), respectively. http://www.globespanvirata.com

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Nortel's Revenues Rise 25% Sequentially

Nortel Networks reported quarterly revenues of US$2.83 billion, up 25% over the preceding quarter and up 12% over Q4 2002. Nortel Networks reported net earnings in the fourth quarter of 2003 of US$499 million, or US$0.11 per common share on a diluted basis, compared to a net loss of US$168 million, or US$0.04 per common share, in the fourth quarter of 2002 and net earnings of US$185 million, or US$0.04 per common share on a diluted basis, in the third quarter of 2003.


Compared to the fourth quarter of 2002, Wireless Networks revenues increased 33%, Enterprise Networks revenues decreased 2%, Wireline Networks revenues increased 9% and Optical Networks revenues decreased 18%. Compared to the third quarter of 2003, Wireless Networks revenues increased 35%, Enterprise Networks revenues increased 10%, Wireline Networks revenues increased 26% and Optical Networks revenues increased 16%.


Compared to Q3 2003, sales in the U.S. increased by 38%, EMEA increased by 11%, Canada increased by 56% and other areas of the world decreased 2%.


Gross margin was 48% for the quarter.


Frank Dunn, president and chief executive officer, Nortel Networks, said 2003 truly marked a "turning point" for the company. As for 2004, while he expects overall capital spending by Nortel's customers to grow by a low single digit%age compared to 2003, Dunn predicts Nortel will grow faster than the market overall by leveraging its strengths in VoIP and wireless data. http://www.nortelnetworks.com

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Verizon Outlines 2004 Initiatives

Verizon Communications reiterated plans to reposition the company for growth in new services.
In a full day of analyst presentations, senior executives at Verizon Communications outlined its business plans for 2004. A webcast of the event is available online. Some highlights:


Domestic Telecom

Larry Babbio, president of Verizon's domestic wireline business, told analysts to look for continued customer gains in DSL and long-distance; improved share in enterprise markets; stability in wholesale markets; and continued improvement in Domestic Telecom's cost structure. Excluding pension and OPEB (other post-retirement employee benefit) costs, margins will be stable, Babbio said, with continued strong cash generation.


Regarding broadband, Babbio described plans to expand DSL availability and reiterated Verizon's target of passing 1 million homes with fiber optics. He also elaborated on technology plans to evolve Verizon's nationwide wireline network to packet-switching technology.


Regarding VoIP, Babbio confirmed that Verizon will launch a consumer VoIP service over its own DSL network beginning in Q2. By Q4, Verizon will also introduce a QoS-based voice-over-DSL service using a completely softswitched based network.


Babbio outlined cost-management strategies, such as the increased automation of internal processes, wider use of customer self-service through the Web and "touch-free" delivery of services to large customers.


Consumer and small-business plans call for a continued emphasis on product bundling and Babbio discussed rollout strategies for VoIP in all retail customer segments.


Verizon Wireless

Denny Strigl, president and CEO of Verizon Wireless, said the company is set to expand its BroadbandAccess service nationally beginning this year. This will provide wireless capabilities including video messaging, video and music content, multiplayer-gaming and broadband mobility at speeds of 300 to 500 kbps.


2004 Financial Outlook

• revenue growth percentage is expected to be in the low single digits



• free cash flow will continue to be used to reduce debt



• CAPEX is expected to be in the range of $12 billion to $13 billion in 2004, compared with $11.9 billion in 2003, with a higher%age of the spending this year allocated to growth areas.



• Wireline CAPEX will be essentially flat, ranging from $6.5 billion to $7.0 billion in 2004, including spending for the company's fiber optic and VoIP initiatives.



• Wireless CAPEX is expected to increase from $4.6 billion in 2003 to the $5.0 billion to $5.5 billion range in 2004, including investments for the deployment of EV-DO and supporting infrastructure.

ttp://www.verizon.com

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GlobalNet Targets Consumer VoIP / Broadband in Latin America

GlobalNet, one of the top ten U.S. service providers of outbound traffic to Latin America, launched its consumer voice-over-IP service, initially targeting broadband providers in Latin America. The company will work through joint marketing efforts and private labeling with ISPs. GlobalNet intends to offer its VoIP service directly to consumers in the United States through an E-Commerce initiative expected to roll out during the second quarter of 2004.


"We decided to initially refrain from introducing our product in US markets in part due to the fact that so many operators are jumping into the consumer VoIP business to compete with rivals such as Vonage, Net2Phone, 8x8, , and DeltaThree . Instead, we devised a strategy that involves targeting regions where competition has yet to gain a foothold, said Robert Thorell, Chief Operating Officer of GlobalNet. http://www.gbne.net

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SingTel Offers Hollywood a Digital Film Transport to Asia

Singapore Telecommunications Limited (SingTel) began offering an ATM-based service for distributing movies digitally from the United States to Asian countries and most other major cities in the world. SingTel estimates that digital media distribution could cut the average total cost per U.S. movie with 3,000 prints from $6 million to $42,000, saving Hollywood movie distributors more than $1 billion a year in duplication, transportation and other costs.


SingTel recently became the first carrier in the Asia Pacific region to facilitate the cross-border digital distribution of a newly released film. The new Hong Kong blockbuster movie, Infernal Affairs III, was digitally distributed directly from Hong Kong to the Shaw Lido Cineplex in Singapore using SingTel's ATM service. About 80GB video data were transmitted digitally between the two cities via SingTel's international optic fiber network, and delivered directly to the digital movie server at a local Cineplex. http://www.singtel.com

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AT&T Enters Residential Local Phone Markets in Seven States

AT&T began offering local phone service in seven states: Delaware, Maine, New Hampshire, Rhode Island, Vermont, West Virginia and parts of northern Nevada.


AT&T already provides residential local service to 4 million residential customers. With today's announcement, the company now offers local service in a total of 35 states. http://www.att.com

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Washington Post: Court Appears Critical of FCC Rule

The U.S. Court of Appeals for the District of Columbia appears likely to overturn the ruling last year by the FCC that gave state public utility commissions broad authority to regulate local telephone competition, according to The Washington Post. At a hearing this week, the judge overseeing the case appeared hostile to the FCC position, saying that its decision to hand-off its policy making responsibilities to the states appears to flout the intent of Congress in the Telecommunications Act of 1996. The judge reportedly was more sympathetic to the views Verizon Communications and other ILECs that a national policy is needed. http://www.washingtonpost.com

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NYT: New Conductor Guides Data Along the Fiber Optic Route

Researchers at Harvard University are developing a new class of optical nanowires as thin as 50 nanometers in diameter that could serve as flexible low-loss interfaces between optical fiber and other photonic devices, according to The New York Times. The diameters of the nanowires are smaller than the wavelengths of the transmitted light, creating an evanescent field such that the nanowires become the path around which the light waves flow. This enables light to hop from one nanowire to another -- a characteristic that could be used to make tiny multiplexers, demultiplexers and other devices like splitters. http://www.nytimes.com/2004/01/29/technology/circuits/29next.html

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Primus Surpasses One Billion International VoIP Minutes in 2003

PRIMUS Telecommunications carried more than one billion minutes of international voice traffic over the public Internet in 2003. The company believes it now carries more than four% of the estimated 24 billion total VOIP minutes worldwide. http://www.primustel.com

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NTT DoCoMo Tops 2 Million 3G Subscribers

NTT DoCoMo's 3G FOMA service surpassed the two million subscriber milestone. The service was first launched two years and four months ago.


The number of FOMA subscribers has doubled over the past four months, following the launch of handsets and expanded nationwide coverage and greater availability of service in indoor areas. http://www.nttdocomo.com

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Shanghai Cable Selects Cisco for Network Upgrade

Shanghai Cable Network Co., which serves more than 3.5 million cable homes, selected Cisco Systems for a major upgrade to its network. SCN selected Cisco 12000 Series routers for the core, Cisco ONS 15454s for optical transmission, and Cisco Catalyst 6509 and Catalyst 4507 switches for the aggregation layer. At the network edge, SCN selected the Cisco 10000 to aggregate Ethernet customers, and Cisco uBR10012 and 7246VXR cable modem termination systems (CMTS) to aggregate cable broadband traffic. In addition to cable TV, SCN plans to offer a suite of integrated next generation IP services including multimedia broadcasting, high-speed Internet access, digital television, videoconferencing, VoIP, VPNs, and long-distance education for both residential and commercial customers. Financial terms were not disclosed. http://www.cisco.com

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Personal Broadband Australia Secures Funding for Wireless Rollout

Personal Broadband Australia (PBBA) secured second round funding of AU$12m (US$9.4m) to enable continued rollout of its broadband wireless network along Australia's eastern seaboard. The new funding has been provided by existing Australian shareholder, Jim Cooney -- making the company majority Australian-owned. Additional shareholders include Mitsubishi Corporation Japan, Kyocera Corporation Japan, Mitsubishi Australia, and ArrayComm.


Personal Broadband Australia uses ArrayComm's iBurst broadband wireless technology. At present, PBBA has a network in Sydney covering more than 100 sq km in the inner metro areas; with a base station roll-out plan to more than triple the coverage over the next six months. http://www.pbba.com.auhttp://www.arraycomm.com

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Verizon Adds DIRECTV to Consumer Bundle

Verizon Communications marketing DIRECTV services to its customers in Rhode Island. A wider rollout to New England and the mid-Atlantic states is planned for the coming months.


Verizon said a consumer choosing a service bundle with its unlimited all-distance calling, Verizon Online DSL and DIRECTV, can save over $240 a year, compared with a cable competitor's comparable bundle of calling, Internet access and entertainment.


Customers can order all Verizon and DIRECTV services by making a single call to Verizon. By mid-year, when the companies interconnect billing systems, all the services will appear on the Verizon bill. Verizon currently offers integrating billing of local and long-distance calling, Internet access and, in most areas, wireless services via its ONE-BILL option. http://www.verizon.comle

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Procket Networks Enhances its Core Routing OS

Procket Networks released an operating system upgrade for its PRO/8801 and PRO/8812 routing platforms, offering new capabilities in system management, network security, and system availability. Procket said one of its main competitive differentiators is that its PRO/1 software enables each routing protocol to run independently, allowing memory protection for greater stability and uptime. Key feature additions in Procket's PRO/1 Modular Service Environment Release 2.3:

• support for Ethernet and Ethernet VLAN pseudo wires



• support for comprehensive IPv6 routing protocols, including static routing, OSPFv3, IS-IS for IPv6, BGP4 for IPv6, and RIPng



• a Fast-Reroute (FRR) enhancement



• Hardware support for Bidirectional PIM ("Bi-Dir PIM")



• BGP soft-reconfiguration inbound



• File commit candidate-configuration confirmed < minutes



• Encrypting Username Passwords

http://www.procket.com

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ARRIS Introduces DOCSIS 2.0-Based Telephony Modem

ARRIS introduced a DOCSIS 2.0-based and PacketCable 1.1-based Embedded Multimedia Terminal Adapter (E-MTA) that supports high-speed data access and 2 lines of VoIP telephony. The device integrates a lithium-Ion battery back-up that enables up to 20 hours of standby time in the event of a power outage. The ARRIS telephony modem will be available in April of 2004, but several MSOs are currently evaluating early production versions. http://www.arrisi.com

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Alcatel and FastWeb to Develop Broadband Net for Italian Armed Forces

The Italian Ministry of Defence selected Alcatel and FastWeb to develop integrated joint-forces communications network. The initial phase will entail the deployment of an optical ring of approximately 1500 Km linking the military district headquarters along the two trunk lines of Florence-Ferrara-Padua-Milan and Rome-Grosseto-Leghorn-La Spezia. The project will be completed by the end of 2004. The contract, which was awarded on the basis of a European Union Design Contest, was valued at EUR 25 million.


FastWeb is Italy's main alternative fixed broadband telecommunications operator. As of 31-Dec-003 FastWeb had 330,000 customers. http://www.alcatel.com

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Deutsche Telekom Launches Mass Market Broadband Initiative

One day after announcing that it had topped the 4 million DSL subscriber milestone, Deutsche Telekom launched a new initiative to drive the technology as a mass-market phenomenon in Germany by attracting at least ten million T-DSL customers by 2007. The company will offer T-DSL service tiers at 1, 2, and 3 Mbps. It will also expand T-DSL infrastructure coverage in rural areas.


A key part of the initiative is to kick-start an "innovation drive," which will include pooling a considerable proportion of its research and development activities with the Technische Universität (TU) Berlin and its partner universities. To this end, Deutsche Telekom will build its own R&D institute on the campus of TU Berlin. The institute will host around 25 top Deutsche Telekom researchers as well as approximately 50 scientists from leading universities worldwide.


Deutsche Telekom is also examining the possibility of establishing joint research and development projects with France Telecom. The carriers are contemplating new collaborative efforts on both a national and European level.


Kai-Uwe Ricke, Deutsche Telekom's Chairman, said "I am very pleased that we have renewed the dialog between France Télécom and Deutsche Telekom."


Deutsche Telekom also said it welcomes greater commitment to the broadband market by other companies, such as cable network operators. Deutsche Telekom is currently reviewing its terms and conditions for line sharing and, with its new "Bitstream Access" offer, will be introducing further upstream products to stimulate the broadband market and give competitors direct and risk-free access to customers on the basis of T-DSL lines. http://www.telekom.de

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FCC Raises $118 Million in Spectrum Auction for Video Services

The FCC raised $118 million in its auction of spectrum for Multichannel Video Distribution and Data Service (MVDDS), which ended on 27-Jan-2004 after 49 rounds of bidding.


The auction included 214 geographic area licenses, of which 192 received winning bids. Each license consists of one 500 MHz block of unpaired spectrum in the 12.2 -- 12.7 GHz band. Permissible operations include any digital fixed non-broadcast service including one-way direct-to-home/office wireless service. Licensees are permitted to provide one-way video programming and data services on a non-common carrier and/or common carrier basis. Mobile and aeronautical services are not authorized. Two-way services may be provided by using other spectrum or media for the return or upstream path. Licensees are subject to a construction requirement that they provide "substantial service" in the license area within five years of receiving the license. http://www.fcc.gov/wtb/auctions/

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FCC Report: DBS Remains Cables Top Competitor

Due to competition from direct broadcast satellite (DBS), cable operators have seen their share of the U.S. market for multichannel video programming distribution ("MVPD") services decline from 100% a decade ago to about 75% today, according to the FCC's newly released "Tenth Annual Report on Competition in Video Markets." A decade ago, federal regulators expected local exchange telephone companies ("LECs") to launch video systems and become the primary competitors to cable systems. Significant LEC entry into the video marketplace has failed to materialize. The most notable exception is BellSouth, which currently operates overbuild cable systems in 14 franchise areas, passing 1.4 million homes. Nevertheless, a number of incumbent LECs are planning to offer video services over their existing phone lines. Over 100 municipal utilities have also entered the market for multichannel video. However, these competitors, along with others using more diverse delivery technologies (i.e., overbuilders, wireless cable systems, private cable systems), only serve a proportionately small number of subscribers and only in limited geographic areas. The FCC report also finds that Internet video is still not seen as a direct competitor to traditional video services. The predominant challengers to the cable operators remain the two DBS providers. Some highlights of the report:

• As of June 2003, 94.1 million households subscribed to MVPDs, an increase of more than 56% over the last ten years.



• Between June 2002 and June 2003 alone, the number of DBS subscribers grew from about 18.2 million households to more than 20.4 million households.



• The number of cable subscribers continues to grow, reaching almost 70.5 million subscribers as of June 2003, up from the 57.2 million cable subscribers at year-end 1993. In the last several years, however, cable subscribership has declined such that as of June 2003, there was approximately the same number of cable subscribers as there were at year-end 1999.



• The total number of non-cable MVPD subscribers grew from 3.1 million as of year-end 1993, to 11.23 million as of June 1998, to 23.7 million as of June .



• Between June 2002 and June 2003, cable prices rose 5.1% compared to a 2.1% increase in the overall Consumer Price Index (CPI). Concurrently with these rate increases, however, the number of video and non-video services offered increased, including a substantial increase in the number of video channels, increased use of cable (as measured by a substantial increase in cable viewership), and the addition of advanced service offerings.



• The rapid consolidation of cable operators slowed somewhat in 2003. For example, the four largest operators served about 51.7% of all U.S. cable subscribers in June 2002, and in June 2003, that number was down to about 50.5% of all U.S. cable subscribers.

http://www.fcc.gov

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Time Warner Serves 3.2 Million Cable Modems

Time Warner Cable added 182,000 cable modem customers in Q4 2003, ending the year with 3.2 million, a rise of 802,000 customers. Its cable modem penetration rate rate currently stands at 17% of eligible homes passed.


Basic cable subscribers increased at an annual rate of 0.1%. Time Warner Cable added 602,000 net digital video subscribers during 2003 (an increase of 136,000 during Q4 2003) to reach a total of 4.3 million, representing 40% of basic cable subscribers.


Meanwhile, the company's America Online division continued to lose subscribers and advertising revenue. As of 31-Dec-2004, the AOL service had 24.3 million members in the U.S., a decrease of 2.2 million for the year (a decline of 399,000 during Q4). The quarter's decline represents a decrease of 830,000 billed subscribers that was offset partially by an increase of 431,000 members in retention programs. The AOL service in Europe had nearly 6.4 million members, essentially flat with a year ago (an increase of 91,000 from September 30, 2003). Subscription revenues in the U.S. were essentially flat, reflecting a year-over-year increase in broadband subscribers, offset by a decline in US narrowband membership. http://www.timewarner.com/

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Infineon Acquires Taiwan's ADMtek for Home Gateway Silicon

Infineon Technologies agreed to acquire ADMtek Inc., a fabless, integrated circuit (IC) design company based in Hsinchu, Taiwan, for around EUR 80 million in cash. The deal enables Infineon to enter the home gateway market. Infineon will establish a new company, Infineon-ADMtek Co. Ltd, headquartered in Hsinchu, which will focus on developing broadband customer premise equipment (CPE) Ics. Infineon said it intends to offer a complete IC solution package for feature-rich, multimedia home gateways that support high-speed wireline and wireless advanced services. The deal represents Infineon's first acquisition of a controlling stake in an Asian semiconductor company.


As part of the transaction, Infineon has also signed a supply agreement to provide products to Accton Technology Corporation and its affiliate companies for broadband CPE solutions. http://www.infineon.com

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Net Insight Delivers 14-Cities Media Network in Germany

Germany's largest broadcaster, Westdeutscher Rundfunk (WDR), has chosen Net Insight's platform to carry all of its broadcast TV, data and telephony traffic between 14 cities. The project is described as the largest of its kind in Europe.


WDR's network will carry bursty IP traffic, telephony and mission critical TV contribution and distribution streams. A total of 13 services, each with strict QoS requirements, were specified for the network. The equipment will be delivered during 2004.


Net Insight said its video and data networking equipment is being used by other major broadcasters, including MSNBC, FOX, CBS, ABC, Savvis, KPN and UPC.
Thttp://www.netinsight.net

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VOOM Chooses NDS to protect HD content

VOOM, the new HDTV satellite service, and NDS, a News Corporation company, have launched a first-of-its-kind Electronic Programming Guide (EPG) built specifically for high-definition programming. VOOM is also transitioning its conditional access over to NDS's VideoGuard protection system. Using NDS's Digital Video Recorder content protection and storage technology, VOOM will also be able to offer its subscribers a secure networked DVR product that supports the safe distribution of content throughout the home. Financial terms were not disclosed.


Additionally, the collaboration will bring to market the first HDTV solution using a Motorola set-top box integrated with NDS conditional access technology.


The new agreement also builds upon an existing relationship with Cablevision whereby NDS provides conditional access solutions to many of its digital cable customers. http://www.nds.com

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Akamai Teams with Equinix on Content Delivery

Akamai Technologies is teaming with Equinix to expand its content and applications delivery platform in the U.S. and Asia. Akamai's "intelligent edge" platform for content, streaming media and applications delivery currently comprises more than 14,000 servers in more than 1,100 networks in over 70 countries. Akamai will now directly connect to networks within Equinix's Internet hubs via private cross-connects. Akamai will also utilize Equinix's GigE Exchange service in the Washington, D.C. and Silicon Valley area centers. Financial terms were not disclosed.ttp://www.equinix.comhttp://www.akamai.com

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Covad and Speakeasy offer 3.0 Mbps Consumer DSL

Speakeasy, a national broadband provider, introduced a consumer DSL service featuring maximum downstream speeds of 3.0 Mbps and upstream speeds of 768 kbps. The service is delivered over Covad Communications' national DSL network.


Speakeasy's Basic 3.0/768 residential service is offered for $69.95 per month for the first three months, $99.95 thereafter. Unlike some competitors, Speakeasy does not port block or limit bandwidth usage. Subscribers have the flexibility to run their own servers (including Linux and Macintosh); and have no restrictions on, or charges for, in-home wireless connections.


Speakeasy is also offering a "Gamers 3.0/768" package that includes at least two static IPs, 10mb of web space, eight email accounts and a year's free subscription to the Mercury FileShack gaming site. http://www.speakeasy.nethttp://www.covad.com

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Sprint Introduces Enterprise MPLS VPN

Sprint augmented its enterprise IP Virtual Private Network (VPN) services portfolio with several new offerings:

• the addition of an MPLS VPN solution to provide secure, any-to-any intranet connectivity. The Sprint MPLS VPN is a network-based solution that is compliant with the RFC 2547bis technical standard. It includes a suite of value-added features and services such as end-to-end Class of Service, VPN Multicast and Managed Network Services (MNS). Sprint provides a SLA with 100% credits for standard monthly recurring charges.



• the commercial availability of its peerless IP network, a native-IP backbone with no connectivity to the public Internet, which was previously available only to government customers.



• the availability of a Secure Socket Layer (SSL) remote access VPN to provide secure access to corporate data and applications for remote employees, business partners and customers.

Sprint said its MPLS service launch represents the initial step of a broader MPLS VPN strategy. Later this year Sprint will extend the MPLS VPN offering globally and integrate it with a full complement of value-added services, including network-based firewall and filtering, secure Internet access, integrated remote access and seamless Layer 2 internetworking. The MPLS services are implemented over Sprint's 100% Cisco Systems infrastructure. http://www.sprint.com

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Mindspeed Delivers 15% Revenue Growth

Mindspeed Technologies, a supplier of semiconductor solutions for network infrastructure applications, reported quarterly revenues of $26.7 million, up 15% from the preceding quarter and at the high end of the company's expectations set at the beginning of the quarter. There was a pro forma operating loss of $13.7 million, or $0.15 per share.


Mindspeed said revenue growth from T/E carrier transmission products, particularly DS3/E3, was primarily driven by increasing deployment of next-generation metro optical platforms. Revenue growth from multiservice access products was driven by increasing demand for VoIP, particularly from customers in the Asia-Pacific region, for use in telecommunications carrier equipment as well as for converged voice/data enterprise networks.


Mindspeed expects revenues from the current quarter to be up 10-15% sequentially yielding a revenue range of between $29.4 million and $30.8 million, the company's highest revenue level in ten quarters. The company expects overall gross margin to be roughly 68%.\http://www.mindspeed.com

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Conexant Grows Revenues 23 Percent Year over Year

Conexant Systems announced quarterly revenues of $177.3 million, up 23% over the same period last year and up 8% over the preceding quarter. Pro forma operating profit was $17.2 million, or 9.7 percent of revenues, compared to $0.5 million in the year-ago quarter. The company credited the growth to record unit shipments in its client-side ADSL, satellite set-top box and PC video businesses.


Gross margin for the first fiscal quarter was 44.6%, up approximately one percent from the previous quarter. http://www.conexant.comIn November 2003, Conexant and GlobespanVirata announced plans to merge.

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Alcatel Signs Multimillion Euro Optical Contract with Belgacom

Alcatel was awarded a multi-million EUR four year frame agreement by Belgacom to upgrade and expand its existing core and metro optical transport networks. Under the contract, Alcatel will supply its multi-service gateways and multi-service provisioning platform for delivering Ethernet and Gigabit Ethernet services. Alcatel will also supply its WDM equipment and its multi-service network element management platform. http://www.alcatel.com

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Focal Deploys General Bandwidth's G6 Platform

Focal Communications, a CLEC serving 23 U.S. metro markets, is deploying General Bandwidth's G6 platform to launch an enhanced Integrated Voice and Data (IVAD) service that delivers up to 32 voice channels while allowing up to 1.5 Mbps of data over a single T1 access line. Financial terms were not disclosed.



General Bandwidth's G6 Packet Telephony Migration Platform supports VoIP and Voice over ATM over a variety of packet architectures, including T1, DSL, hybrid fiber coax (HFC) and fiber-to-the-premises (FTTP). It supports voice services from existing Class 5 switches as well as next generation packet switches. http://www.genband.com/http://www.focal.com

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Quebec's Videotron to Boost Cable Modem Speeds

Videotron, which serves 1,423,000 million cable customers in Quebec, plans to boost its cable modem speeds as of 01-Apr-2004. For the basic residential Internet service, the speed of downloads will increase more than 32%, from 3.1 mbps to 4.1 mbps, and upload speeds will more than double, from 350 kbps to 820 kbps. For the "Extreme High-Speed Internet service," download speeds will be boosted more than 12%, from 4 mbps to 4.5 mbps, and upload speeds will increase more than 40%, from 640 kbps to 900 kbps.



Videotron plans to invest nearly $40 million (Canadian) in its broadband network and Internet infrastructure this year. The monthly download limit will be increased from 15 to 20 gigabytes and the upload limit from 5 to 10 gigabytes, for a total of 30 gigabytes.



Videotron currently serves some 430,000 Internet customers by cable modem and dial-up modem. http://www.videotron.com

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SBC Reports Improved Retail Access Line Trends

Growth in long distance and DSL, as well as improving retail access line trends, were the top positive trends reported by SBC Communications for Q4 2003. However, SBC's revenues and net income fell during the quarter and during the full 2003 overall. Revenues for Q4 totaled $10.1 billion, compared with $11.2 billion in the year-earlier period. For the full year 2003, revenues were $40.8 billion, compared with $43.1 billion in 2002. Net income for Q4 was $905 million, or $0.27 per diluted share, compared with $2.4 billion, or $0.71 per diluted share in Q4 of 2002.



Some highlights of the quarterly report:

• a gain of 2.9 million long distance lines companywide, including 1.7 million from Midwest launch, giving SBC a total of 14.4 million LD customers at year end.



• a gain of 377,000 DSL lines, marking the 8th consecutive quarter of accelerated DSL growth, giving the company a total of 3.5 million DSL customers, up 60% from fourth-quarter 2002 levels. For comparison, in Q3 2003 the company added 365,000 net DSL customers. SBC hopes to have 5 million DSL customers by year-end 2004. The DSL network currently reaches 75% of SBC customers and the company expects to reach 80% by year end 2004.



• a loss of 243,00 consumer primary access lines, marking the smallest sequential decline in nine quarters. SBC attributed the trend to its entrance in the LD market in the Midwest. For comparison, SBC lost 671,000 consumer primary access lines in Q4 2002.



• a gain of 120,000 wholesale lines (resale and UNE-P), down 63% from the increase in wholesale lines last quarter. SBC said its expects to benefit from a ruling early this year by Indiana regulators that increases by $3.57 per line the wholesale rate that competitor resellers in that state must pay SBC to lease its network.



• a 9.3% rise in quarterly data revenues by 9.3% to $2.6 billion, SBC's best year-over-year growth in more than two years. Data revenues represented 29% of SBC's total wireline revenues in the quarter. For the full year, SBC's data revenues totaled $10.2 billion, up 5.3% from 2002.



• a gain of 642,000 Cingular Wireless lines, ending the year with a total of 24 million. In addition to its ongoing GSM network conversion and the pending acquisition of additional spectrum, Cingular is launching a major construction and engineering effort to add cell sites, further strengthening its nationwide network. The company also launched a major customer service initiative during the quarter.



• Retail penetration of consumer bundles that combine local voice access with at least one other service grew to 44%, roughly double the penetration rate at the beginning of the year.



• For 2004, SBC's capital expenditures are expected to be $5.0 billion to $5.5 billion, excluding Cingular Wireless capital outlays - in line with 2003 spending. Cingular Wireless' capital spending is expected to be consistent with its 2003 total of $3.4 billion.

http://www.sbc.com

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Deutsche Telekom Reaches 4 Million DSL Subscribers

Deutsche Telekom surpassed the 4.0 million subscriber milestone for DSL, up 40% for 2003. In Q4 alone, Deutsche Telekom's T-Com division added more than 300,000 net DSL customers. The company also serves an additional 110,000 DSL customers in Eastern Europe.



Despite the strong uptake for DSL, demand for the Deutsche Telekom's T-ISDN service continues to grow. The number of ISDN channels operated by T-Com in Germany increased year-on-year from 20.7 to 21.5 million. However, Deutsche Telekom posted a slight decline in the number of standard analog lines it serves, which now stands at 27.2 million, down from 28.6 million a year earlier. The company attributed this loss to the migration from analog to T-Com's more advanced lines as well as to growing competition and regulatory action.



Some additional 2003 operational statistics for Deutsche Telekom:

• the number of mobile customers in the Group increased by 13% to 66.2 million



• T-Mobile USA added a record number of new subscribers in Q4 with 1.02 million. It now has more than 13.1 million subscribers



• T-Mobile Deutschland remains Germany's mobile market leader with 26.3 million subscribers



• T-Mobile UK added 1.2 million new subscribers in Q4



• T-Online increased its European customer base to 13.1 million

http://www.telekom.de

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Marconi's Group Sales Rise 5%

Marconi reported its fifth consecutive quarter of positive operating cash flow (before special charges). For the three months ending 31-December-2003, Marconi's Group sales rose 5% to £408 million compared to £389 million in the previous quarter.



Marconi said sales in Europe/Rest of World were driven by growth in Fixed Wireless Access and Value-Added Services. It also noted strong growth in Outside Plant & Power and North American Access sales, which were offset by an expected reduction in sales by the U.S. federal government.



Excluding the North American Access (NAA) division (which is being sold to AFC), Marconi's top ten customers for the quarter were (alphabetical order): AT&T, BT, E-plus (Germany), Metro City Carriers (Germany), O2, Telecom Italia, U.S. federal government, Verizon, Vodafone and Wind (Italy). These customer represented 47% of sales.



Group headcount was reduced to 13,025 at year's end, compared with 14,100 at 30-Sept-2003.



Marconi said it is maintaining a cautious market outlook and expects the current quarter's sales to be flat to slightly up. http://www.marconi.com

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AFC Reports Q4 Revenues of $84.8 million

AFC reported Q4 revenues of $84.8 million, compared to $85.2 million in Q3 2003 and $85.7 million in Q4 2002. Net income for the fourth quarter of 2003 was $5.7 million, or $0.06 per share, compared with $9.3 million, or $0.11 per share, in Q3 2003. Net income for Q4 2002 was $17.6 million, or $0.21 per share.



"In spite of the modest decline in annual revenues due to a challenging industry environment, we increased core business net income by 39% to $34.0 million in 2003 from $24.4 million in 2002," said John Schofield, chairman, president and chief executive officer at AFC. "Over the year we experienced growing demand for our broadband solutions. Our shipments of DSL lines in the fourth quarter were the largest ever, with 105,000 lines shipped. This gives us approximately 250,000 DSL lines shipped in 2003, another record for AFC."http://www.afc.com

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Broadcom Reports Q4 Revenue fo $479 Million, up 13% Sequentially

Broadcom reported record Q4 revenue of $479.1 million, an increase of 12.6% from the $425.6 million reported for the third quarter of 2003 and an increase of 61.9% from the $295.9 million for Q4 2002. Net income (GAAP) was $6.1 million, or $.02 per share (diluted).



Broadcom said the strong financial results were driven by gains across all its business groups. http://www.broadcom.com

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TiVo Acquires Strangeberry for Broadband TV Technology

TiVo has acquired Strangeberry, a start-up based in Palo Alto, California specializing in using home network and broadband technologies to create new entertainment experiences on television. TiVo said the acquisition would help it extend the TiVo service beyond digital video recording to include a much broader, richer entertainment experience for subscribers.



The deal includes Strangeberry's intellectual property assets and engineering staff in exchange for equity. Financial terms were not disclosed. http://www.tivo.comAt the Consumer Electronics Show in January 2004, TiVo announced development partnerships with digital photo and music companies XM Satellite Radio, Adobe, MoodLogic and Picasa to expand the features and capabilities of the TiVo service through its Home Media Option.

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Avaya Reports Revenues of $971 Million, up 3%

Avaya reported quarterly revenues of $971 million, up 3% over the year ago period. Income from continuing operations was $30 million, o $0.07 per diluted share. These results compare to a loss of $125 million or a loss of $0.34 per share for the same period last year.



Avaya said the quarterly revenues were essentially unchanged from revenues in the preceding quarter, which reflected a seasonal revenue ramp-up associated with the end of the company's fiscal year. Avaya noted IP line shipments and IP revenues increased globally from the fourth quarter across large and small customers.



Gross margin in the quarter increased substantially to 46.1% from 41.9% a year ago. http://www.avaya.com

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Terayon Sees Q4 Revenue Rise 14% Sequentially, Announces Restructuring

Terayon Communication Systems reported $43.0 million, a 70% increase compared to $25.3 million for the same quarter a year ago, and a 14% increase compared to $37.6 million for Q3 2004. Net loss for the quarter was $6.0 million, or $0.08 per share.



Terayon also announced a corporate restructuring that involves a reduction in workforce of approximately 17%, or 70 employees; the consolidation of certain facilities; a write-off of certain assets; and a reduction in spending. Terayon said it is targeting profitability beginning in Q2 2004. http://www.terayon.com

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Procket Selected by Australia's National Research and Education Network

Australia's Research and Education Network (AARNet) selected Procket Networks' PRO/8812 and PRO/8801 routers for a backbone build-out supporting 37 Australian universities and Australia's Commonwealth Scientific and Industrial Research Organization (CSIRO). AARNet offers core internet transport as well as Voice and Video services over IP. Financial terms were not disclosed. http://www.procket.comhttp://www.aarnet.edu.au

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Zhone Introduces Line-Powered DSLAM

Zhone Technologies introduced a line powered DSLAM that enables carriers to extend ADSL services up to 38,000 feet from a central office using power supplied over the uplink's twisted pair. Zhone's compact Raptor 100 LP provides support for central office, remote terminal and non-powered wiring cabinet deployments. It is offered in a range of environmentally hardened shelf sizes including 7U, 3U and 1U, with a variety of line interfaces and uplinks from 10/100baseT to DS1 IMA and OC-12. http://www.zhone.com

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EarthLink Adds 248,000 Subscribers in Q4

EarthLink added 248,000 net subscribers in Q4 2003 and ended the year with approximately 5.2 million paying subscribers, an increase of 219,000 subscribers, or 4.4%, from a year ago. During the quarter, the company added 108,000 broadband subscribers, giving it a total of approximately 1.1 million broadband customers, up 36.2% from a year ago.



EarthLink also added 143,000 total narrowband subscribers in the quarter, which included 129,000 net new subscribers from PeoplePC Online, the company's value-priced narrowband service. EarthLink ended the year with approximately 4.0 million total narrowband subscribers, a decrease of 1.3% from a year ago. Total narrowband subscribers included 424,000 PeoplePC Online subscribers, up from 68,000 at the beginning of the year.



Monthly subscriber churn was 4.1% in the quarter, up from the prior year quarter's rate of 3.6%. The higher churn rate was attributed primarily to the continued migration of premium narrowband subscribers to other providers' broadband access services and the significant increase during the quarter in the number of new subscribers, which typically have high early-life churn.



EarthLink reported total revenues of $348.6 million in the quarter, an increase of 0.2% from Q4 2002. Net income for the quarter was $10.7 million, or $0.07 per share, an improvement from a net loss of ($36.9) million, or ($0.24) per share, in the prior year quarter. http://www.earthlink.net

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Agere Posts Quarterly Revenue of $516 Million, up 2% Sequentially

Agere Systems reported quarterly revenue of $516 million, up 18% from revenues in the year-ago quarter, and up 2% sequentially, exceeding the company's guidance. The company reported a GAAP net loss of $39 million, or $0.02 per share, which included a restructuring charge of $47 million, a majority of which was related to the decommissioning of Agere's former manufacturing facilities, and a purchased in-process R&D charge of $13 million related to the company's recent acquisition of TeraBlaze.



The company was profitable on a pro forma net income basis, with earnings of $22 million, or $0.01 per share.



Agere said the increase over the year-ago quarter was driven by a 33% growth in the company's Client Systems business, with strength in sales of chips for mobile phones, hard disk drives and other PC-related applications.



The Infrastructure Systems Group reported revenues of $118 million, down 13% from the year-ago quarter and 4% sequentially. The sequential decline was due to a decrease in revenues from intellectual property licensing and mature telephony products, partially offset by an increase in sales of the company's wireline and wireless infrastructure products. http://www.agere.com

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XACCT Releases Fifth-Generation Mediation Platform

XACCT released its fifth-generation mediation platform.Key features of XACCTusage 5.0 include:

• support for real-time and file-based modes of operations for traditional circuit-switch voice as well as packet data networks.



• support for Concurrent File-based and Real-time processing modes on the same system



• enhanced integrated Error Management System, which streamlines the recovery of the rejected and suspended CDRs to ensure the accuracy of billable data while minimizing manual processing and delays.


• new User configurable, generic CDR Parser and Formatter. The operator canconfigure new parsing rules to enable integration with downstream applications and a quick adaptation of the mediation interfaces to the BSS/OSS.



• task and Process Monitoring capabilities have been enhanced with new and dedicated visual screens.



• additional performance enhancements of up to 300% leveraging the system's distributed architecture and multi-threaded design. The system has been optimized to run on mid-frame, enterprise HP-UX and Sun Solaris operating systems.

XACCTusage 5.0 has already been deployed by LDCOM to unify its IP mediation functions onto a single system. http://www.xacct.com

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AT&T Selects Intrado's 9-1-1 for Residential VoIP

AT&T selected Intrado to develop an emergency calling solution for its soon-to-be-launched residential broadband VoIP service. Intrado's 9-1-1 infrastructure will provide AT&T's VoIP customers access to emergency services, will be available when AT&T launches its new residential VoIP service this spring. The Intrado solution allows AT&T to route 9-1-1-dialed calls from the AT&T IP network to public safety answering points (PSAPs), which handle emergency calls and dispatch services such as police, fire or medical personnel.



The companies said they are working with industry groups like the National Emergency Number Association (NENA) to standardize emergency response services for VoIP. http://www.intrado.comwww.att.com/voip

• AT&T has been running a trial of VoIP services since October in three states to test market a residential VoIP offering that promises to provide a rich array of new, enhanced information services, including advanced call-management capabilities and unique web-based features.

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New York's WRNN-TV Carrier Broadcast Video over IP Trunks

WRNN-TV, an independent regional television station and news network reaching approximately 5 million cable and satellite subscribers in the New York, has deployed Tut Systems' M2-400 video trunking system to encode and distribute video broadcast footage between its studio and broadcast TV facilities. The station is transporting MPEG-2 4:2:2 broadcast video between multiple locations. At the same time, it required the capability to utilize MPEG-2 4:2:0 in a low-latency mode for real-time interview capabilities between the studio anchors and reporters in the field. Tut System's M2-400 platform ensures low latency and fully synchronized audio/video channels over the IP network. In addition, the M2-400 eliminates the jitter and delay often associated with IP delivery platforms.



Tut Systems' M2-400 chassis is capable of holding multiple encoders, decoders, and DVB-ASI satellite interfaces over both IP and ATM networks. The M2-400 utilizes MPEG-2 video and MPEG-1 audio streams and processes both analog and digital content. http://www.tutsys.com

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Riverstone Unveils New VPLS / MPLS Solutions

Riverstone Networks introduced a new hardware module, upgraded MPLS routers and a software release all aimed at helping carrier's transition toward MPLS/VPLS-based Ethernet networks.



The rollout includes three new access routers -- the RS 1100, 3100 and 3200 -- that are positioned as small, cost-effective VPLS platforms that build upon Riverstone's existing RS 1000 and 3000 routers. The new platforms offer additional intelligence to deliver granular QoS with rate limiting and shaping. Available interfaces including ATM, Packet over SONET/SDH and TDM, enabling a transition of existing services to Ethernet services based on MPLS/VPLS. The RS 1100 and 3100 are targeted at Ethernet-over-copper deployments with standard 10/100BaseT interfaces, while the RS 3200 is targeted at Ethernet-over-fiber deployments with SFP interfaces for 100BaseFX or 100BaseBX.



The new Advanced Services Module (ASM) for the RS routers provides bandwidth control, allowing Ethernet to emulate the service capabilities of Frame Relay and ATM. The ASM's traffic shaping and advanced MPLS capabilities allow service providers to offer their customers services like E-Line and E-LAN (defined by the Metro Ethernet Forum) as well as a choice in how much service they want to pay for.



A new release of RapidOS software adds MPLS OAM and SNMP support for Ethernet OAM. The new MPLS OAM capability helps troubleshoot problems at a specific layer of an MPLS network. The new SNMP support helps network operators to integrate Ethernet OAM functionality directly into their management platforms for improved fault isolationhttp://www.riverstonenet.com

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Overture Networks Introduces Edge Platform

Overture Networks, a start-up based in Research Triangle Park, North Carolina introduced a network edge platform designed for carrier Ethernet and TDM services. Like Overture's flagship ISG 5000 platform, the new ISG 2200 is a packet-based multi-service access platform for Ethernet-based private line, high-speed Internet access, virtual private LAN service (VPLS) and legacy T1/E1 voice/data/video. In addition to Ethernet services and transport, key features of the platform include "TDM pseudowire" and "Frame Relay pseudowire" capabilities over fiber rings. It also supports legacy OC-3, OC-12 and NxDS3 transport.


Overture's ISG 5000 provides four slots for either legacy or Ethernet interfaces. The platform has been installed in over 100 locations so far. The new ISG 2200 offers one interface slot. http://www.overturenetworks.com

• Movaz Networks resells Overture's platform as its RAYedge Multi-Service Access Platform for aggregation of Ethernet and TDM electrical services onto a variety of uplinks including OC12, Gigabit Ethernet and CWDM wavelengths. Overture also has a resale agreement with NEC Japan.



• Overture Networks is headed by Jeff Reedy, who formerly served as VP of Engineering at Larscom. The company has raised $18 million in two rounds of venture funding.

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Cable & Wireless Selects LayerOne to Maintain U.S. Links

Cable and Wireless plc will maintain its U.S. and international connections via an international point of presence (POP) with LayerOne. Cable & Wireless, which announced its intention to exit the U.S. domestic market last year, is also using LayerOne's services to maintain certain traffic flows to and from the United States and other international markets. LayerOne operates International Gateway POPs in Dallas, Los Angeles, Miami and New York. http://www.layerone.com

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SiGe Semiconductor Targets Cellular and Wi-Fi Modules

SiGe Semiconductor announced a product roadmap to build chip-scale RF front-end modules for multi-mode, dual-band Wi-Fi systems, and cellular handsets compliant to the GSM, CDMA, CDMA2000, GPRS and EDGE standards. Using its silicon germanium technology, the Ottawa-based company plans to build the world's smallest GSM RF front-end, and the industry's highest performance module for dual-band, multi-mode 802.11a/b/g WLAN systems. The roadmap also includes chip-scale solutions for 802.11b/g WLAN systems, quad-band CDMA handsets, and dual-mode GSM/WCDMA and GSM/CDMA2000 handsets. The front-end modules will integrate all of the RF circuitry required between the transceiver and the antenna, including the power amplifiers, power detectors, filters, switches, matching and bias components. http://www.sige.com

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Atheros Introduces Single-Chip 802.11g Solution

Atheros Communications introduced a single-chip 802.11g WLAN solution that integrates a Media Access Controller (MAC), baseband processor, and 2.4 GHz radio in a low-cost CMOS package. The new chip represents the company's third-generation 802.11g silicon. It was preceded by a three-chip solution launched in February 2003, and a two-chip solution launched in June 2003. Like the earlier designs, the new chip uses a multi-phase approach to signal processing, which extends the battery life of mobile devices by controlling the power of different sections of the wireless device according to the level of system and network activity. Atheros said this technique allows the chip to consume up to 98% less power than multi-chip WLAN solutions on the market today. It has the same range and throughput as the preceding Atheros multi-chip 802.11g solution. Pricing is $12 in 10,000 volumes. http://www.atheros.com

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Foundry Adds 40-port GigE Module to Switching Line

Foundry Networks released a new 40-port high density Gigabit Ethernet (GbE) fiber module and introduced two new modules for its flagship, terabit-capacity BigIron MG8 and NetIron 40G switches. The BigIron MG8 is Foundry's non-blocking 1.28 Tbps switch for enterprise applications requiring high-density Gigabit Ethernet and 10 Gigabit Ethernet (10GbE). The NetIron 40G is Foundry's non-blocking 1.28 Tbps Ethernet router designed for service providers. Foundry is introducing the following new modules for each switch to complement the currently shipping 4-port 10GbE (with XENPAK optics) and 40-port fiber-based GbE (with SFP Small Form Factor Pluggable Optics) modules:

• 40-port 10/100/1000 Mbps Gigabit Ethernet over Copper with RJ45 interfaces


• 2-port 10 Gigabit Ethernet with XENPAK optics

http://www.foundrynetworks.com

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Occam and Minerva Test IP TV

SureWest Communications, a provider of advanced communications products and services in the Sacramento, California region, has selected and successfully tested a combined IP television delivery platform from Occam Networks and Minerva Networks.


Minerva provides IP television headend equipment and middleware, as well as consulting and integration services. Occam offers an IP-based loop carrier platform that delivers both traditional and packetized broadband services from a single access network. Minerva is a member of the Occam Packet Access Network (OPAN) alliance. http://www.occamnetworks.comhttp://www.minervanetworks.com

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AMCC Offers Quad SONET/SDH Phys for System "Face-lifts"

Applied Micro Circuits Corp. (AMCC) introduced two new quad SONET/SDH physical layer devices designed for new high density line cards as well as the remodeling of legacy line cards. For reworking earlier system designs, the new quad OC3/12 SONET/SDH 8-bit transceiver requires only that customers update the optical front-end of the design, while the rest of the system, such as the framers, pointer-processors and software, can remain intact.


The first device (S1213) operates in either SONET/SDH OC-12 or OC-3 with a CDR feature, and can also be provisioned to support a combination of OC-3 and OC-12 data for individual channels. Features including diagnostic loopback, line loopback, serial clock loop timing and parallel loop back modes. It also provides customers with maximum flexibility and efficiency when adding new components to legacy systems.


The second device (S1212) consists of four CDR modules, all of which can run independently at the OC-12 or OC-3 data rate. It can also be provisioned to mix and match OC-3 and OC-12 data streams within the same device and configured in MII mode or non-MII mode. http://www.amcc.com

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voiceglo Deploys Acme Packet Session Border Controllers

voiceglo, a provider of consumer and business VoIP services based in Fort Lauderdale, Florida, is using Acme Packet's Net-Net session border controllers for both hosted IP service delivery and peering to IP-based PSTN termination networks. The Net-Net session border controllers enable voiceglo to interconnect with other IP networks. http://www.acmepacket.com

• voiceglo was founded by Michael Egan and Edward Cespedes. Egan is the Founder and former CEO of Alamo Rent A Car, which he directed to become one of the nation's largest car rental firms before selling it to Republic Industries. Cespedes is a former investment banker with JP Morgan and also serves as President of theglobe.com and voiceglo.

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Slovenian Carrier Selects Juniper for TV-over-ADSL

SiOL, the leading Slovenian ISP, has deployed Juniper Networks' M-series routing platforms and E- series broadband aggregation platforms with the Juniper Networks SDX service deployment system to offer new advanced IP services such as broadband TV over ADSL.


Smart Com, Juniper Networks' partner in the Slovenian market, serves as systems integrator. Financial terms were not disclosed. http://www.juniper.net

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Orthogon Extends its Broadband Wireless to 130 km

Orthogon Systems, a start-up based in Ashburton, UK introduced a new wireless Ethernet bridge with high-gain external antennae that enable the system to span greater distances, even over large bodies of water, and overcome more challenging obstacles in its path. The company said its new OS-Gemini C product with external antennae provides a 400x increase in signal gain over its existing OS-Gemini I product (integrated antennae), connecting distances of up to 130 km (81 miles).


Orthogon noted that sending wireless signals across water has long posed seemingly insurmountable challenges. Called the ducting effect, the marine layer over water causes radio waves to bend, either sending the radio wave up into space or down into the water, ending the connection. With its combination of antennas and Orthogon's Multi-beam Space Time Coding technology, the OS-Gemini C mitigates the ducting effect of water.


Genesis Wireless, a wireless ISP and system integrator in Minnesota, is using the new OS-Gemini C for a wireless broadband link spanning 32 km (20 miles) downhill and over rivers with trees and large plateaus obstructing line-of-sight. The connection runs at 99.999% availability, with an average throughput of 28 Mbps, according to the company. http://www.orthogonsystems.com

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Boingo Wireless Adds First Wi-Fi Mesh Roaming Partner

Boingo Wireless signed a roaming agreement with Verge Wireless, which operates Wi-Fi mesh networks in key cities in the southern U.S. The agreement is the first for Boingo with a broadband Wi-Fi mesh- networking operator. An example of Verge's mesh network capabilities is its recent announcement of New Orleans' first mesh network in the Warehouse District. The company has also deployed service in Baton Rouge, LA. http://www.boingo.comhttp://www.vergewireless.com

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Canada's Allstream Launches Ethernet Private Line Service

Allstream (formerly AT&T Canada) introduced an Ethernet Private Line service that provides up to 1 Gbps connectivity within and between Montreal, Ottawa, Toronto, Calgary and Vancouver. The Ethernet Private Line is carried over a private connection on Allstream's optical network. Allstream said its new service is designed for applications such as server aggregation, synchronous database mirroring, VoIP, corporate data centre connectivity, multi-campus workgroups and data warehousing. The carrier will offer a 99.999% uptime availability option. Additional services to be rolled out shortly include Storage Area Network (SAN) channel service, Gigabit Internet, and High Bandwidth VLAN service. http://www.allstream.com

• Allstream has 29 CLEC networks and has some 537,940 access lines in service. Its fiber network spans some 18,800 kms across Canada.

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AFC Launches Marketing Campaign Focused on "Pure-Play Access"

AFC launched a marketing and advertising campaign to articulate the company's strategy as a "Pure-Play Access" supplier . The "AFC-The Acronym for Access" campaign touts the company's heritage in voice and broadband solutions and highlights the importance of the access portion of the network as the primary arena for differentiation and competition among carriers. Marketing initiatives include a redesigned web site and advertising. http://www.afc.com

• Earlier this month, AFC agreed to acquire Marconi's North American Access (NAA) business for $240 million in cash. Marconi NAA's major products include a fiber-to-the-curb (FTTC) platform and DLCs. The acquisition would also provide AFC with a greater ability to penetrate major RBOC accounts. Notably, Marconi's fiber-to-the-curb platform is deployed extensively at BellSouth, which has been pursuing a fiber-to-the-curb (FTTC) architecture since 1995. Nearly one million homes have been fiber-passed out of a market of 14 million homes in BellSouth territory. Meanwhile, AFC's fiber-to-the-premise (FTTP) solution was recently selected by Verizon.

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Hammerhead Secures $25M for Next Gen Edge Migration Switch

Hammerhead Systems, a start-up based in Mountain View, California, raised $25 million in Series B financing, bringing its total funding to $43 million. Hammerhead Systems is developing a next generation "edge migration switch" to help service providers transition Frame Relay/ATM services to an MPLS backbone. Hammerhead's platform is currently in trials with a Tier 1 RBOC and a leading U.S.-based network service provider. Product details have not yet been announced.


Pequot Ventures led the round with new equity participation and Pequot General Partner Greg Rossmann joins Hammerhead's board of directors. All first round VCs participated including Mayfield, Foundation Capital, and Enterprise Partners.


"We're initially targeting the sweet-spot of corporate data services -- the $20 billion Frame Relay/ATM market -- which represents the carriers' most profitable data services as well as the primary method for transporting mission critical applications among the Fortune 1000," said Joe Sigrist, Hammerhead's President and CEO. http://www.hammerheadsystems.com

• Hammerhead Systems was founded in January of 2002 by Rob Keil and John Yu. Keil previously served as VP of Marketing at optical networking start-up Zaffire, and before that spent 5 years working with the original StrataCom/Cisco engineering group. Dr. Yu previously was Director of Network Architecture at Zaffire and is credited as co-author of 10 IETF/OIF drafts on GMPLS and Optical UNI. Prior to Zaffire, Yu spent 4 years as the Principal Data Services Architect for SBC/PacBell's Frame Relay, ATM and ADSL service deployments.



• Hammerhead is headed by Joe Sigrist, who previously served as President of Lucent Technologies' Edge Access Systems division. Prior to the Lucent acquisition of Ascend, Joe was the Vice President of Product Management for Ascend's remote access business.

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Telstra Launches DVD Delivery Service by Mail

Telstra introduced a new "fetchmemovies" service that enables Australians to browse through an online catalog of more than 8,000 titles and then have the DVD delivered by the convential postal service. As DVDs are returned, more are mailed out.


Telstra said the DVD rental service helps it build marketing relationships with strategic partners. Telstra will source content from a variety of Australia's largest distributors including Warner Home Video, Fox Home Entertainment, Paramount, Columbia Tristar, Universal, AV Channel, Shock/Kaleidoscope, Buena Vista Home Entertainment and Roadshow. http://www.telstra.com

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Telstra Connects 500,000th broadband customer

Telstra activated its 500,000th ADSL customer. Over 1,000 of Telstra's central office exchanges in Australia have now been ADSL enabled. Telstra has set a target of one million broadband subscribers by the end of 2005 and $1 billion in revenue from broadband by the end of 2006http://www.telstra.com

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BT's ADSL Rollout Reaches 1,000 Central Offices

BT has now equipped over 1,000 of its central office exchanges with ADSL. More than 85% of UK homes and businesses can now get ADSL and this figure is expected to reach 90% by the summer. Since July 2002, BT has relied on a "trigger" scheme whereby a certain number of requests for broadband in a given community causes the company to install the required DSL equipment in the local exchange. More than 700,000 of these service requests have been received since July 2002.


On 23-January-2004, Prime Minister Tony Blair visited his local telephone exchange today to see it being upgraded for high speed broadband internet services. http://www.bt.com

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Time Warner Telecom Acquires Enron Net in Oregon

Time Warner Telecom was the successful bidder to acquire the fiber assets of Enron Broadband Services in the Portland, Oregon area. The asset purchase extends the Time Warner Telecom local fiber network to 158 route miles in Portland and the neighboring communities of Beaverton, Hillsboro, Tigard, and Vancouver, Washington. Financial terms were not disclosed. http://www.twtelecom.com

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Savvis to Acquire Cable & Wireless America

SAVVIS Communications was the winning bidder in a court-supervised sale of the network assets of Cable & Wireless USA and Cable & Wireless Internet Services (together CWA). Under the deal SAVVIS will acquire substantially all of the CWA assets for $155 million in cash and assume liabilities of approximately $12.4 million, subject to certain regulatory approvals. The U.S. Bankruptcy Court in Phoenix, Arizona approved the proposed sale on 23-Jan-2004.


SAVVIS was chosen as the winner among seven bidders at a two-day auction concluded on 22-Jan-2004, by CWA's financial advisor, The Blackstone Group.


SAVVIS' shareholders Welsh, Carson, Anderson & Stowe and Constellation Ventures, a Bear Stearns asset management fund, have committed to finance the purchase price and provide ongoing funding to support the acquired assets. In addition, SAVVIS has entered into a Letter of Intent with Du Pont Fabros Interests pursuant to which SAVVIS will sell its rights to acquire five of the CWA data centers to DuPont for $52 million, and to leaseback those data centers for 15 years.


SAVVIS said its purchase includes substantially all of CWA's assets:

• a Tier 1 IP Network, serving more than 2,000 enterprise customers, with a footprint encompassing 27% of all Internet routes and providing a range of IP network services from public Internet to private lines



• a comprehensive Hosting Service business with more than 1,000 enterprise customers, 15 data centers, a Fortune 500 focus, and a complete range of managed hosting, consulting and infrastructure services.

SAVVIS said the deal would make it one of the world's largest IP/hosting infrastructure providers. The acquired assets will add over 5,000 customers and the combined entity is currently projected to have annualized revenues of approximately $700 million by year end 2004. http://www.cwusa.comhttp://www.savvis.net

• On 08-Dec-2003, CWA announced that it had agreed to an asset sale with Gores Technology Group. As part of the deal, CWA filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Qualifying bidders then had an opportunity to submit higher and better offers for CWA's evaluation through a court-supervised competitive bidding process.

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ATS and Verio Offer IPv6 Capabilities to Government Customers

Advanced Technology Systems, Inc. (ATS) and Verio began offering an IPv6 Gateway Service in the U.S. targeted at federal, state, and local government agencies through the General Services Administration's (GSA) Millennia Lite Contract Vehicle. Additionally, ATS is offering new bundled communications products and services, called ATS PowerHouse Hosting Solutions for government clients.


The IPv6 offering from ATS and Verio currently delivers service on the NTT/VERIO Global IPv6 Backbone network to customers in North America, as well as many countries in the Asia-Pacific region, including Japan, Korea, Malaysia, Taiwan, Hong Kong and Australia, as well as in Europe, including Great Britain, the Netherlands, France, Germany and Spain. NTT Com currently provides IPv6 to approximately 500 customers around the globe. http://www.atsva.comhttp://www.verio.com

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Netopia Announces Certification for Wi-Fi Phones

Netopia launched a certification program for Wi-Fi cordless phones. The company said its certification program is open to any Wi-Fi cordless phone manufacturer or developer that uses the 802.11b or 802.11g standards. The certification process seeks to verify Wi-Fi cordless phone interoperability and VoIP transmission with QoS through Netopia's 3-D Reach wireless DSL and broadband gateways. http://www.netopia.com

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ARRIS Cadant CMTS Passes One Million Line Milestone

ARRIS announced that its Cadant C4 cable modem termination system (CMTS) has now over one million live subscriber lines passing through its hardware and software. The Cadant C4 was launched in January 2002. Just under 400 C4s have been sold throughout the world to date. http://www.arrisi.com

• The ARRIS Cadant C4 CMTS is a PacketCable, DOCSIS 1.1 and Euro-DOCSIS 1.1 qualified carrier-grade edge router/CMTS.

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Lockheed Martin/Northrop Selected for Next-Gen Satellite System

A Lockheed Martin /Northrop Grumman team was awarded one of two industry contracts valued at approximately $472 million to enter the Risk Reduction and System Definition phase of the U.S. Air Force's Transformational Communications MILSATCOM (TCM) Space Segment. The two competing teams will conduct risk reduction demonstrations and system trade studies over a 27-month period. A single contractor is expected to be chosen in 2006 to build the next generation military satellite system.


The Lockheed Martin/Northrop Grumman team also includes Rockwell Collins, General Dynamics Advanced Information Systems, L-3 Communications, Stratogis, Cisco, C&H Associates, and ViaSat. Lockheed Martin Space Systems (Sunnyvale, CA) will serve as the prime contractor and systems integrator for the TCM Space Segment. Northrop Grumman will provide the satellites' transformational payloads, end-to-end communication systems engineering, and payload ground processing.


Lockheed Martin said TCM represents the next step toward transitioning the Department of Defense wideband and protected communications satellite architecture into a single network comprised of multiple satellite, ground, and user segment components. The system will network mobile warfighters, sensors, weapons, communications command and control nodes located on UAVs, piloted aircraft, on the ground, in the air, at sea or in space. TCM is one of several elements that make up the Transformational Communications architecture that the national security space community has developed over the last two years. http://www.lmco.com

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Boeing Team Selected for Next-Gen Military Satellite System

Boeing was awarded a $472 million contract by the Air Force Space and Missile Systems Center tp develop a system design and demonstrate critical technologies for a secure, high-capacity global communications network serving the U.S. Department of Defense, NASA and the intelligence community.


The Transformational Communications MILSATCOM Space Segment incorporates laser communications, next-generation processors and routers, internet protocol, information assurance, network management, and other advanced technologies into an architecture that is compatible with future and legacy space and ground network systems.


The contract, which extends through 2006, supports the government's network-centric operations vision. A single contractor will be chosen in 2006 and the next generation satellite system is slated for launch in 2011. The system is being designed to provide survivable, strategic communications services as well as new capabilities such as communications on the move for tactical users, and enhanced airborne intelligence, surveillance and reconnaissance connectivity.


Boeing and its industry team members are contributing innovations on other transformational DoD systems such as Future Combat Systems, Joint Tactical Radio System, and Family of Advanced Beyond Line-of-Sight Terminals. http://www.boeing.com

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French ISP Selects IBM/Cirpack for Consumer VoIP

Free, a subsidiary of the Iliad Group, the second largest French ISP, is using a joint solution from IBM and Cirpack to deliver a consumer VoIP service over unbundled DSL lines. The residential VoIP is provided as an add-on to the company's ADSL service in the areas where Free has deployed its own DSL infrastructure. The service is available in about 20 metropolitan areas in France (Paris, Lyon, Grenoble, Aix, Nice, Marseille, Toulouse, Bordeaux, Nantes, Rennes, Caen, Rouen, Lille, Nancy, Strasbourg, and to be added soon Dijon, Besançon, Montpellier).


Subscribers pay EUR 29 per month for a 2Mbps ADSL line including free phone services (including national PSTN termination) and free TV Channels. http://www.cirpack.comhttp://www.free.fr/

• In October 2003, CIRPACK and IBM Global Services announced a partnership focusing on next generation telecom voice solutions in ETSI compliant countries: Europe, Middle East, Africa, and most Asian and Latin American countries. IBM Global Services will provide the support services and systems integration expertise for CIRPACK SoftSwitch solutions enabling telecom operators to deploy new voice services while maintaining legacy services.



• CIRPACK's softswitch platform can host a range of high-density network interfaces (IP, ATM, TDM) and supports multiple local signaling protocol variants simultaneously (ISDN, SS7, VoIP, VoATM). It can be configured to manage voice transit services (Class-4) as well as subscriber services (Class- 5), handling up to 5 millions BHCA (Busy Hour Call Attempts), and 180,000 simultaneous voice channels over any type of legacy and packet networks.

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Data Connection Enhances MeetingServer Web Conferencing

Data Connection released a new version of its MeetingServer web conferencing solution, which enables service providers to host their own self-branded web conferencing service, rather than reselling the services of a third-party provider. MeetingServer uses a reservationless scheduling model, where participants are invited to the meeting using a click-to-invite function. The latest release includes voting and polling functions and high-performance presentation up/download. It can be integrated with audio bridges, and the user interface is fully customizable to allow rebranding. Service provider licensing the product include BT. It is also OEMed by equipment vendors and conferencing providers including Latitude Communications (now owned by Cisco), Spectel and Documentum. http://www.dataconnection.com

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Trapeze Names Ex-Nortel Exec as CEO

Trapeze Networks, a start-up based in Pleasanton, California named James W. Vogt as its new president and CEO. Prior to joining Trapeze, Vogt was president and CEO at Ingrian Networks, where he led the privately held secure appliance firm through two rounds of funding. He also was president of the Nortel Networks small business solutions group, and before that, served as vice president of product management for Bay Networks' desktop products group.


Trapeze Networks offers a wireless LAN Mobility System. http://www.trapezenetworks.com

• Trapeze Networks offers a WLAN Mobility System that allows enterprise users to login once, roam and retain their access privileges and policies wherever they go on the corporate network. Seamless roaming is a key enabler for time-sensitive applications like Voice over Wireless IP (VoWIP). The Trapeze system preserves existing network engineering -- VLAN and subnet assignments, authentications and ACLs -- while enabling the deployment of new services like prioritization, access controls, roaming policies, location tracking and usage metrics on a per-user basis from wired to wireless. The Trapeze WLAN Mobility System includes the Mobility Exchange, Mobility Points, Mobility System Software and a tool suite. The Mobility Exchange System offloads Extensible Authentication Protocol (EAP) processing, session consolidation, and hardware-accelerated encryption and key generation from AAA servers. This reduces 802.1X authenticators by 20-to-1, according to the company. Trapeze also supports standard WLAN cryptography, including Wi-Fi Protected Access (WPA), the Temporal Key Integrity Protocol (TKIP), the Advanced Encryption Standard (AES), and dynamic Wired Equivalent Privacy (WEP) with rotating broadcast/multicast keys.

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Marconi Supplies Access Hub to Versatel Deutschland

Versatel Deutschland is deploying Marconi's Access Hub Multi Service Access Node (MSAN) platform to support its rollout of broadband access services to private customers. Specifically, Marconi is supplying its AXH600 and AXH2500 platforms, alongside its Distributed Multiservice Platform (DMP). The combined platforms will enable Versatel to offer broadband access services, including ISDN and xDSL. Financial terms were not disclosed. http://www.marconi.com

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Rogers Cable to Launch 5 Mbps Home Service

Canada's Rogers Cable is planning to launch a new, 5 Mps Internet service in Ontario and New Brunswick. This new service will be in addition to the current offering with speeds up to 3Mbps (already faster than the DSL competitor) provided to existing Rogers Hi-Speed Internet customers. http://www.rogers.com/

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BellSouth Adds 127,000 DSL Subs in Q4

Long distance and DSL revenue growth offset access line declines at BellSouth during 2003, holding the company's communications revenues nearly flat at $18.4 billion compared to 2002. For Q4, BellSouth reported consolidated Q4 revenues of $5.7 billion, an increase of 0.9% compared to the same quarter of the previous year. Net income was $787 million compared to $574 million in the same quarter a year ago. Operating free cash flow totaled $5.3 billion for the full year. Over the last seven quarters, the company has increased its quarterly dividend 31.6% to 25 cents per common share. Some additional highlights:

• CAPEX: Capital expenditures for 2003 were $3.2 billion, a reduction of 15.5% compared to 2002. The 2003 CAPEX to revenue ratio was 14.2%. For reference, CAPEX in 2001 peaked at $6.0 billion and the CAPEX to revenue ratio was in the mid-20s.



• Debt: Total debt at December 31, 2003 was $15.0 billion, a reduction of $2.4 billion since the first of the year.



• Service Bundling: In Q4, BellSouth Answers packages increased to more than 3 million, which represents a 24% penetration of primary access lines. Answers combines customers' local, long distance, Internet and wireless services all on one bill. BellSouth Unlimited Answers contributed to the growth in package customers with subscribers exceeding 1 million at the end of fourth quarter. Unlimited Answers allows customers to call anywhere in the United States anytime for a flat monthly fee.



• Long Distance: BellSouth added approximately 3 million long distance customers during 2003, for a total of 3.96 million customers and almost 30% penetration of its mass-market customers by year-end. During Q4, about 40% of new customers included international long distance in their calling plans.



• DSL: BellSouth added 126,000 net DSL customers in Q4, bringing its end of year total subscribers to 1.46 million.



• Data: Led by DSL, data revenues of $1.1 billion grew 4.0% in Q4 2003 compared to the same quarter of 2002. DS1 and DS3 circuits continue to account for about 60% of BellSouth's wholesale data revenues. In Q4, DS1 units grew 1.3% and DS3 circuits were flat.



• Access lines: Total access lines of 23.7 million at December 31 declined 3.6% compared to a year earlier, impacted by the economy, competition and technology substitution. Residence and business access lines served by BellSouth competitors under UNE-P increased by 199,000 in Q4.



• Domestic Wireless: Cingular Wireless added 642,000 net cellular/PCS customers in Q4, ending the year with more than 24 million cellular/PCS customers.By the end of 2003, the company's GSM/GPRS network was available to 93% of its potential customers and with approximately 57% of subscriber minutes traveling on this upgraded network.

http://www.bellsouth.com

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Tellabs' Q4 Revenue Up 14% to $279 Million

Tellabs reported Q4 revenue of $279 million up 14% from $245 million in Q3 2003, marking the fourth increase in sequential revenue in the past five quarters. Tellabs International generated 40% of the quarter's overall revenue. The company recorded a net loss of $23 million or 6 cents per share. Excluding previously announced restructuring charges of $44 million, Tellabs earned 3 cents a share or $12 million in Q4 2003. Some highlights:

• Optical Networking -- Sales of optical networking systems, which include Tellabs' strategic North American products, were $117 million, up 11% from the third quarter. About 2% of Tellabs' overall revenue came from new products in North America.



• Next-Gen SDH and Managed Access Services -- Sales of next-generation SDH and managed access systems totaled $74 million, up from $70 million in the third quarter. About 6% of Tellabs overall revenue came from new products in international markets; sales of these new products surged 48% to $16 million from $11 million in the third quarter. This increase came largely on the strength of the Tellabs 6350 switch node, for which the company has now received more than 300 orders. Among customer wins announced in the quarter were T-Mobile, Vodaphone, Embratel, and Beijing Zhetong for the Beijing Olympics.



• Other Products -- Voice-quality enhancement, telephony distribution solutions, data and other revenue amounted to $51 million, up 65% from $31 million in the third quarter.



• Services -- Services revenue was $37 million, basically flat with $39 million in the third quarter.

http://www.tellabs.com

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IBM Releases Linux Platform for Telecom Applications

IBM released a new Linux-based Carrier Grade Open Framework (CGOF) Reference Implementation platform for telecom service providers. The platform includes CGOF compliant hardware and middleware components and services. The Carrier Grade Open Framework (CGOF) Reference Implementation is available through IBM Global Services.


The Linux framework is being supported by various network equipment manufacturers and IBM business partners, including Cirpack, jNETx, Lucent, Snowshore, Sylantro, and Ubiquity.


IBM said its Carrier Grade Open Framework would address three of the key factors that challenge telecom service providers:

• how to combat the increasing costs of network operation;


• how to decrease the complexity of introducing change into a network infrastructure;


• and how to reduce the cycle time of implementing new packet-based services to meet growing customer demand.

IBM said its intends to further its commitment to the telecommunications industry with the introduction of a modular, CGOF compliant product offering -- the IBM eServer Integrated Platform for Telecommunications (IPT) in 2004. The IPT offering will include a variety of IBM eServer systems including BladeCenterand the new BladeCenter T, which will also be available later this year. IBM also plans to offer expanded software solutions including IBM Director for systems management, IBM middleware and services that address both the NGN and Telecommunications back office requirements support for Linux with OSDL specified Carrier Grade Linux features. http://www.ibm.com

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Global Crossing Stock Begins Trading on NASDAQ

Global Crossing's new common stock began trading on the NASDAQ National Market on 22-January-2004, under the trading symbol GLBC. The company's stock had been trading in the over-the-counter market under the symbol GLBCF since Global Crossing's emergence from Chapter 11 on 09-December-2003. http://www.globalcrossing.com

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Nortel Networks/Flextronics to Evolve Supply Chain

Nortel Networks will divest substantially all of its remaining manufacturing activities, including product integration, testing, and repair operations carried out at its facilities in Calgary and Montreal (Canada), Campinas (Brazil), Monkstown (Northern Ireland), and Chateaudun (France). It will also divest itself of certain related activities, including the management of the supply chain and related suppliers for these locations.


Nortel Networks is in discussions with Flextronics about the activities being considered for divestiture. The company said that a successful completion of these discussions could result in Flextronics undertaking and managing in excess of US$2 billion of Nortel Networks annual cost of sales on a go forward basis and involve the transfer from Nortel Networks to Flextronics of more than US$500 million of manufacturing and inventory assets. In return Nortel Networks anticipates receiving from Flextronics proceeds in excess of US$500 million in cash, over a nine-month period, for primarily inventory and certain manufacturing assets, as well as an additional amount for certain intangible assets. At this stage, however, Nortel Networks said there can be no assurances that these discussions will lead to a binding agreement.


A deal with Flextronics could affect up to approximately 2,500 Nortel Networks employees. http://www.nortelnetworks.com

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Vitesse Returns to Profitability

Vitesse Semiconductor reported quarterly revenues of $50.3 million, compared to $35.7 million in the same period last year and $42.8 million in the preceding quarter. On a GAAP basis, net loss for the first quarter of fiscal 2004 was $8.0 million or $0.04 loss per share. Pro-forma net income for the first quarter of fiscal 2004 was $172,000 or $0.00 income per share. http://www.vitesse.com

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UTStarcom Reports 16th Consecutive Quarter of Revenue Growth

UTStarcom reported Q4 net sales of $643.6 million, an increase of 114% over net sales of $301.1 million reported in the fourth quarter of 2002. Full-year net sales increased to $1.96 billion, an increase of 100% over net sales of $981.8 million reported in 2002. Net income for the fourth quarter of 2003 was $66.4 million, or $0.52 per share.


The period marked the 16th quarter of record revenues and profitability since the company's IPO in March 2000.


Backlog at the end of 2003 was $1.06 billion, an increase of 75% over the $605.4 million backlog reported at the end of 2002.

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MCI Provides 2004 Guidance.

MCI is on-track to emerge from Chapter 11 bankruptcy protection in February 2004. The company issued the following financial guidance for full-year 2004:

• revenue is expected to be between $21 billion and $22 billion, a decline of approximately 10 to 12% versus expected 2003 results, primarily reflecting overall industry conditions and continued declining trends in the consumer market.



• operating income is expected to be between $1.1 billion and $1.3 billion, which includes depreciation and amortization of $1.7 billion and restructuring charges of approximately $100 million, resulting in an increase of $300 million to $400 million versus expected 2003 results.



• net operating cash flow is expected to exceed $1 billion, after capital expenditures of 6 to 8% of revenues, but including proceeds from the sale of certain non-core assets.



• business Markets revenue, which includes sales to U.S. domestic enterprise customers, is expected to decline 6 to 8% versus 2003, due to continued competitive pricing pressure, especially in Small and Medium-sized Business and traditional long-distance services.



• International revenue is expected to decline at similar levels to Business Markets.



• revenue, or sales to domestic U.S. consumers, is expected to decline 20 to 25% versus 2003. This reflects continued long-distance industry revenue declines primarily due to wireless substitution, intensified competitive conditions and the impact of national Do Not Call legislation.



• MCI will launch a consumer VoIP initiative in 2004.

http://www.mci.com

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AT&T Wireless Evaluates Acquisition Bids

AT&T Wireless confirmed market reports that it is currently entertaining acquisition bids from several industry players. The company postponed its annual analyst meeting and said there can be no assurance that a transaction will occur.

Separately, AT&T Wireless posted Q4 services revenue of $3.904 billion, up 4.4% from the year-ago quarter. For the fourth quarter, net loss per share (EPS), was ($0.03) per share.


ARPU for Q4 was $58.70, down 2.2% from the same period last year. Steady ARPU was supported by data revenues, international toll, and higher regulatory fees, while offset by continued pricing pressure and less breakage from wireless minute buckets.


Churn for the year was 2.6%, matching 2002's full year level and reflecting the company's long-term strategy of improving the profitability of the overall subscriber base. Fourth quarter churn was 3.3%, driven by a high number of contract expirations of the prior year's holiday contract signings, systems-related impacts on customer care, and LNP.


Net subscriber additions were 128,000 for Q4 and 1.060 million for the year, bringing the company's total consolidated customer base at the end of 2003 to 22.0 million, an increase of 5.4% over 2002. http://www.attwireless.com

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AT&T Posts Double Digit Revenue Decline

AT&T cited increasing pricing pressures and predicted declining overall revenues for 2004. The company reported Q4 2003 consolidated revenue of $8.1 billion, which included $5.9 billion from AT&T Business and $2.2 billion from AT&T Consumer. This represented a consolidated revenue decline of 12.8% versus Q4 2002, primarily due to continued declines in long distance (LD) voice revenue, partially offset by the continued success of AT&T Consumer's bundled local and LD offering, as well as growth in several key markets of AT&T Business. Net income from continuing operations was $340 million and earnings per diluted share were $0.43. Free cash flow was $0.7 billion for Q4. The company met its 2003 financial guidance. Some highlights for the quarter:

• Q4 revenue for AT&T Business was $5.9 billion in the fourth quarter of 2003, a decline of 10.9% from the prior-year. AT&T blamed Pricing pressure, LD voice competition, demand weakness in data and retail LD voice, as well as overall weakness in telecommunications spending for the decline.



• AT&T Business long distance voice revenue declined 13.1% on a quarter-over-quarter basis, reflecting a shift from retail to wholesale services. Volumes grew nearly 7% on a quarter-over-quarter, also reflecting the same wholesale shift.



• AT&T Business local voice revenue grew 15.0% from the prior year Q4. Local access lines totaled nearly 4.5 million at the end of 2003, representing an increase of almost 136,000 lines from Q3.



• AT&T Business data revenue declined 6.7% from the prior-year quarter and 4.6% for the full year. Growth rates were negatively impacted by pricing pressure, particularly on high-capacity bandwidth circuits, as well as weak retail demand.



• AT&T Consumer revenue was $2.2 billion for Q4, representing 18.9% compared to Q4 2002. Declines were driven by lower standalone LD revenue as a result of the continued impact of competition, wireless and Internet substitution, and customer migration to lower-priced products and calling plans, partially offset by pricing actions. These revenue declines were also partially offset by growth in bundled revenue, which grew nearly 65%.


AT&T also announced the following expectations for 2004:


• Consolidated revenue decline between 7-10%;


• Consolidated operating income margin between 6-8%;


• AT&T Business revenue decline between 4-7%;


• AT&T Consumer revenue decline between 15-17%;


• Capital expenditures of approximately $2.5 billion, compared to $3.4 billion for 2003.

http://www.att.com

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