Wednesday, March 31, 2004

White Rock Gains RUS Acceptance for SONET Products

White Rock Networks has gained RUS acceptance and RUS Buy American Status for its VLX2020 optical products from the Rural Utilities Service (RUS) Technical Standards Committee . The designation enables rural telecommunications service providers to obtain low-interest funds to deploy the VLX2020 for voice, data, and video applications over OC-3, OC-12, OC-48, and OC-192 survivable SONET networks. http://www.whiterocknetworks.com/

Net2Phone to Provide VoIP for Vietnam ISP

State-owned Vietnam Datacommunications Company (VDC), the largest provider of data services in Vietnam, is providing Net2Phone's VoIP services to its corporate and residential customers throughout Vietnam. Net2Phone has partnered with VITC, a U.S.-based communications firm with operations in Asia, to secure relationships with top Vietnamese ISPs, including VDC. Financial terms were not disclosed.



Net2Phone's hosted SIP platform provides partners with residential broadband telephony, calling cards, prefix dialing and enterprise services. http://www.net2phone.comhttp://vdc.com.vn

Global Crossing Signs Brazil's Largest Financial Extranet

Global Crossing was awarded a one-year contract to provide multimedia services to provide Rede de Telecomunicações para o Mercado (RTM), the largest financial extranet in Brazil. The contract covers international voice capacity through Global Crossing's Direct Dial Services (DDS). http://www.globalcrossing.com

USDA Offers $2.2 Billion in Loans for Rural Broadband

The U.S. Department of Agriculture's Rural Utilities Service (RUS) will offer no less than $2.211 billion in loans for FY 2004 as part of its Rural Broadband Access Loan and Loan Guarantee program. The funding includes $2.051 billion for direct cost-of-money loans, $80 million for direct 4% loans, and $80 million for loan guarantees. The official notice was published in the Federal Register Online: : March 29, 2004 (Volume 69, Number 60). http://www.usda.gov/rus/telecom/index.htmhttp://www.gpoaccess.gov/fr/index.html

Court Challenge to Cable Modem as "Information Service"

The U.S. Ninth Circuit Court of Appeals declined to review a lower court's ruling that had overturned the FCC's classification of cable modem service as an "information service." The case originally arose regarding whether local municipalities could require cable operators to open their networks to other ISPs.



In October 2003, the U.S. Ninth Circuit Court vacated the FCC declaratory ruling that had classified cable modem service as an "information service without a separate offering of a telecommunications service." The FCC promptly appealed the decision. The Ninth Circuit Court of Appeals has now declined to review the lower court's ruling.



The FCC's declaratory ruling, which was issued 15-March-2002, classified cable modem service as an "information service" rather than a "cable service." As an interstate information service, cable modem service would therefore be subject to FCC jurisdiction rather than state or local rules.



FCC Chairman Michael K. Powell expressed disappointment in the decision, saying the Court's failure to address the merits of the FCC's policy would only "prolong uncertainty to the detriment of consumers."



FCC Commissioner Michael Copps applauded the decision, saying "This is a good day for consumers and Internet entrepreneurs. I look forward to the start of a fresh dialogue on broadband service at the FCC."



The National Cable and Telecommunications Association (NCTA), which represents the cable TV industry, said "While we are disappointed with the Ninth Circuit ruling, we will urge the FCC to seek U.S. Supreme Court review. We believe that if and when the Ninth Circuit's decision is given a full substantive review by the Supreme Court, it will be reversed."



EarthLink said "Yesterday's decision by the Ninth Circuit confirms what EarthLink has been saying for over five years now, that cable modem service contains a telecommunications service. As the Court noted in its decision last October, ‘The practical result of such a classification is that cable broadband providers would be required to open their lines to competing ISPs.' Cable modem users deserve choice in high-speed Internet providers. Yesterday's ruling is another step towards finally affording them that choice."http://www.fcc.gov

Agilent Introduces SAN Tester for 4 Gbps FC

Agilent Technologies announced test capabilities for the 4 Gbps Fibre Channel standard. The Agilent 1733A SAN test module enables Fibre Channel traffic generation at wire speeds of 2 Gbps or 4 Gbps, with allowances for any combination of data, error, link, fabric control and fabric services test. It fits in the same Agilent platform as the company's existing 1 and 2 Gbps test modules. http://www.agilent.com

ADC Supplies FTTP in Florida

Home Town Cable Plus, an integrated service provider in Port St. Lucie, Florida is deploying ADC's OmniReach FTTP products to deliver voice, video, data, and Internet services to homes and businesses in its subscriber area. These services include POTS and long distance, 217 channels of switched digital video (SDV), gigabit Ethernet Internet service and enhanced home security service over the IP-based FTTP network. http://www.adc.com

Level 3 Acquires ICG's Wholesale Dial Access Business

Level 3 Communications has acquired the wholesale dial access business of ICG Communications for approximately $35 million in cash. The business unit provides dial-up Internet access to America Online, EarthLink, MSN, United Online and other leading ISPs.



Level 3 plans to migrate a majority of ICG's customer traffic onto its own network infrastructure over the course of the next two quarters. http://www.level3.com

BT Selects Alcatel's IP-based Service Delivery Platform

BT awarded a EUR 30 million contract Alcatel for an service delivery platform that enables advanced IP services and supports existing Number Translation and Network based Call Centre services. The contract, which is part of BT's 21st Century Network (21CN) strategy, covers the Alcatel 8690 Open Services Platform (OSP). Alcatel is working with Sun Microsystems and Ulticom to supply the IT platforms and signaling software, respectively.



The Alcatel 8690 OSP is part of Alcatel's Open Path to Enhanced Networking (OPEN) program for enhanced broadband services, which protects current voice revenues by using a staged migration to a converged packet infrastructure. http://www.alcatel.com

Spirent Adds VoIP Conformance Testing for IP Telephony

Spirent Communications rolled out a new bundle of Convergence Test & Measurement applications for the Abacus 5000 IP Telephony Test Migration System. The new features add SIP, H.323, MEGACO, MGCP, and SIGTRAN protocol conformance. Spirent's Abacus 5000 system provides a variety of test scenarios and unique capabilities, such as emulating a call agent (media gateway controller) and signaling gateway, the backbone of a VoIP network. By generating real voice and data traffic and Real-time Transport Protocol (RTP) packets, the Abacus 5000 with CTM-5000 tests interoperability among different equipment manufacturers and devices, allowing customers to easily pinpoint failures before new VoIP networks and services are deployed. http://www.spirentcom.com

SBC Offers Faster DSL -- 1.5 to 3 Mbps Downstream

SBC Communications launched higher speed consumer DSL tiers at up to twice the download speeds of its current flagship DSL offer.

Residential customers, who qualify, can get speeds of 1.5 to 3 Mbps downstream and 384 Kbps upstream - for $36.99 a month if they also subscribe to SBC Total Connections, which includes local, long distance and wireless service. If ordered online or as part of a qualifying bundle of SBC services, residential and business customers can receive the higher speed SBC Yahoo! DSL for $39.99 a month. When purchased separately with a one-year term commitment, it is available for $44.99 per month.



SBC Yahoo! DSL with download speeds of up to 1.5 Mbps remains available for $26.95 a month for SBC Total Connections customers. It can also be ordered online or as part of a qualifying SBC bundle for $29.95 a month. When purchased separately, SBC Yahoo! DSL is offered for $34.95 a month.



SBC is also charging a monthly FUSF (Federal Universal Service Fund) cost recovery fee to help cover charges for data transport, pursuant to state and federal telecom regulations. This fee is not a tax or government required charge. http://www.sbc.com

QUALCOMM's Push-to-Talk Claims Set-up Latency Under 1sec

QUALCOMM announced that its QChat push-to-chat solution achieves a call set-up latency of less than one second. At the IIR Push-to-Talk World Summit, QUALCOMM demonstrated its QChat technology running over a CDMA2000 1xEV-DO network (Release 0 with QoS software enhancements). http://www.qualcomm.com

Malaysia Equips Teachers with Wi-Fi

Malaysia's Ministry of Education has equipped 35,000 teachers with notebook PCs using Intel Centrino technology in the first phase of a five-year technology integration plan that also includes enabling all schools with Wi-Fi. http://www.intel.com

Foundry Switches to Power "FlashMob" Supercomputer

Foundry Networks is supplying its Layer 2/3 Ethernet switches for FlashMob I, a supercomputer to be created on 03-April-2004 at the University of San Francisco by hundreds of volunteers using their ordinary laptop PCs. The "FlashMob" computer uses the combined processing power of all the donated laptops to work on a single problem. The Foundry FastIron 1500 Layer 2/3 switches will be interconnected via 10 Gigabit Ethernet to enable a very high-speed switch fabric. http://www.flashmobcomputing.orghttp://www.foundrynetworks.com

Tuesday, March 30, 2004

FCC Commissioners Call for Negotiated Settlement on UNE-p

All five of the FCC Commissioners have signed a letter urging the nation's telecommunications carriers and trade associations to begin a period of "good faith" commercial negotiations on UNE-p resale rates. FCC Commissioners are encouraging the parties to utilize all means at their disposal, including a third-party mediator, to maximize the success of this effort.



To provide additional time for these negotiations, the FCC intends to petition the D.C. Circuit for a 45-day extension of the stay of its decision vacating its unbundling rules. The FCC will also request an extension of the deadline for seeking Supreme Court review.



The FCC has previously been split 3-2 on the issue of UNE-p unbundling rules. For this announcement, all five Commissioners agreed "to come together with one voice to send a clear and unequivocal signal that the best interests of America's telephone consumers are served by a concerted effort to reach a negotiated arrangement. "



Industry reaction:



SBC Communications said it is "greatly encouraged that the FCC sees the value in business- to-business negotiations and mutually acceptable, commercial agreements as a preferable alternative to government-mandated and -managed competition for consumers. " The company noted that it made an identical offer to wholesale customers three weeks ago.



AT&T said it "welcomes any opportunity to negotiate a fair, economically viable agreement with the Bell companies for access to the facilities they control." However, the company noted that "any such talks are inherently difficult given that the Bell companies control the sole supply of a needed good."



CompTel/ASCENT, which represents competitive carriers, accepted the FCC's request to enter negotiations but said it "is vital that the process governing these negotiations is transparent, so that all competitive carriers - large and small alike - are afforded the same considerations in a non-discriminatory fashion."

The Communications Workers of America, a trade union, applauded the FCC's move to encourage a negotiated settlement, saying the current policy has only stifled the rollout of broadband. http://www.fcc.gov
  • In early March, a three-judge panel in the D.C. Circuit Court of Appeals overturned the FCC's Triennial Review Order with regard to network unbundling rules. The FCC rules, which were announced in February 2003 but actually issued in August 2003, empowered state public utility commissions as the decision makers on issues regarding UNE-P unbundling and local competition. The Court of Appeals said the FCC erred by not providing unified, federal guidelines and by pushing many FCC decisions to the states. The court also upheld the Triennial Review Order's exemption provided to incumbent carriers from unbundling for certain fiber-fed loops and for line sharing. The ruling was applauded by ILECs but condemned at CLECs.

  • One day after the D.C. Circuit Court of Appeals overturned the FCC's Triennial Review Order with regard to network unbundling rules, SBC Communications issued a public offer to AT&T, MCI and other competitors, inviting the companies "to negotiate commercially reasonable UNE-P wholesale rates ."

FCC to Collect $273 Million in Fees, Spend $292 Million in Budget

The FCC expects to collect $272,958,000 in regulatory fees for Fiscal Year (FY) 2004. The fees collected to recover the regulatory costs associated with the Commission's enforcement, policy and rulemaking, user information, and international activities.



As for its budget for the coming year, the FCC is requesting that Congress authorize spending authority of $292,958,00, requiring a direct appropriation of $20,000,000. This represents an increased spending level of $19,000,000 or 6.9% over the previous fiscal year. The increased spending includes $13 million for upgrades to its labs, lifecycle replacement of enforcement vehicles and new equipment for those vehicles, and training programs for its staff. http://www.fcc.gov

Intoto Raises $11 Million for Security

Intoto, a start-up based in Santa Clara, California raised $11 million in new funding for its integrated security, wireless and voice software platform aimed at network equipment manufacturers. Intoto said it has licensed its iGateway software solutions to over 100 networking and communication equipment vendors. The Intoto software, which runs on a number of embedded microprocessors, SoC communications processors and network processors and is compatible with all major OS/RTOSs, provides functionality such as firewall, VPN, intrusion protection and wireless security. The new funding round was led by AsiaTech Management and a corporate partner. http://www.intoto.com

VON Keynote: ITXC Sees Unstoppable Momentum for VoIP

For the next two years, people will continue to purchase VoIP primarily for cost savings rather than for advanced feature sets, predicted Tom Evslin, Chairman and CEO of ITXC, in a keynote at the Spring VON conference in Santa Clara, California. To be really useful, advanced features require deployments at both ends of the call. Evslin figures that once penetration rates reach somewhere around 15% an inflection point will occur and people will start to buy VoIP in order to have the same advanced features as the early adopters.



In the mean time, momentum continues to build. Evslin presented a "Top 7" List of indicators that VoIP is hot again.



  • Jeff Pulver owns the VON show again


  • The stock prices of VoIP companies now have digits before the decimal


  • People at cocktail parties talk about Internet telephony


  • Industry consolidation is happening and will pick up pace


  • AT&T and MCI have joined the VON Coalition


  • The industry has gone from building networks to joining networks -- interconnecting VoIP networks is now the most pressing industry issue


  • Government wants to tax VoIP -- Regulators want to regulate it




A few years ago, Evslin predicted that by 2010 all calls would travel over IP for a portion of their route. Now, he says, this time frame "may be too pessimistic."



Evslin's presentation highlighted a number of industry pain points. "We don't really have plug-and-play interoperability between networks," he said, " even when both networks are using equipment from the same vendors." VoIP carriers are also caught in the middle of a protocol conversion from H.323 to SIP. Even when interoperability issues finally shake out, Evslin believes there will be an ongoing need to have a clear demarcation between networks. Routing, billing and security will continue to be issues wherever carriers exchange traffic. And the "n-squared problem" will prevent every carrier from peering and maintaining business relationships with every other carrier, thereby necessitating VoIP Interexchange Carriers, such as ITXC.



Evslin, who is an active participant in the VON Coalition, also argued in favor of a "light regulatory" touch. VoIP providers are not asking for a free ride on somebody else's network, he said, and traditional telecom regulations are not needed for the new VoIP world. Nevertheless, he believes that current economic forces that are driving VoIP are so strong, the technology could not be killed at this point even by really bad regulatory policy. Any unnecessary regulations, however, "would have high social costs." The VON Coalition advocates voluntary industry efforts to meet social needs like access for the disabled, access in rural areas, E-911 and CALEA.
  • In November 2003, Teleglobe International Holdings announced plans to acquire ITXC, the largest provider of international VoIP wholesale services with direct relationships with carriers in more than 175 countries. Teleglobe has been a major player in international telecommunications for well over 50 years and ranks among the top five providers of international wholesale voice, data, IP and mobile roaming services. Teleglobe's network reaches more than 240 countries and territories and is physically interconnected to approximately 275 fixed-line telecommunications operators and 360 mobile operators. After the merger, Teleglobe will be one of the top three international voice carriers. The company hopes to improve operational efficiency by the application of ITXC's automated technology to Teleglobe's older back-office processes.


  • For 2003, ITXC carried approximately 4.1 billion minutes of Internet telephony traffic versus approximately 3.1 billion minutes for 2002.

PacketExchange Signs Tellabs for MPLS Backbone

PacketExchange, an independent global carrier with POPs in London, Frankfurt, Amsterdam, Paris, Dublin, New York, Washington, Palo Alto and Dallas, has chosen the Tellabs 8800 Series of Intelligent Multi-Service Routers (MSRs) to expand its MPLS backbone. The deployment will enhance PacketExchange's ability to deliver future-proof services with specific Service Level Agreements (SLAs). Financial terms were not disclosed. http://www.tellabs.comhttp://www.packetexchange.net

PacketLight to Focus on Storage Transport

PacketLight Networks, a developer of metro multi-service optical transport and access systems, announced plans to focus on the growing storage transport market. PacketLight offers a range of products for storage over DWDM and SONET/SDH, using the latest GFP/VCAT and FC-BB standards. The company's new product line offers high-speed storage services, such as Fibre Channel, FICON, and ESCON over large distances--without performance degradation--using SONET/SDH and DWDM.



PacketLight also named Hezi Lapid as chairman of the board of directors. Lapid was one of the pioneers of SDH development in ECI Telecom and served as CEO of Innowave, an ECI company that was acquired by Alvarion last year. http://www.packetlight.com

Cogent Acquires Carrier1 Network Assets in Germany

Cogent Communications has acquired rights to the dark fiber and other network assets that were once part of Carrier1 International S.A., through a merger with Symposium Omega, Inc., which had raised $19.5 million from investors and acquired rights to this network. Symposium Omega acquired the network from GLH GmbH, a German company that purchased the assets directly from Carrier1 after Carrier1 filed for insolvency in Germany. As a result of the acquisition, Cogent will add 14 German markets to its pan-European network including, Berlin, Hamburg, Frankfurt and Munich, making Cogent's one of the largest network footprints in the region.



Cogent has already connected LambdaNet France and Spain to its U.S. based network and is completing the consolidation of all traffic to one Autonomous System number. U.S. customers have already been consolidated to AS174. Consolidation to one AS means no network hops for Internet traffic traveling anywhere on the Cogent network whether it is European- or American-bound. http://www.cogentco.com
  • In January 2004, Cogent Communications acquired LambdaNet Communications France and LambdaNet España. Financial terms were not disclosed. LambdaNet is the current trade name for what was previously Firstmark Communications, a large pan-European carrier's carrier offering point-to-point and Internet connectivity solutions to businesses. Immediately preceding Cogent's acquisition, LambdaNet Spain and LambdaNet France both received new equity investments from a group of private equity investors based in Europe and the U.S.. These investors will become shareholders of the combined company.

Microsoft Positions Windows CE for VoIP Phones

Microsoft announced new VoIP features for the upcoming release of Windows CE 5.0. Microsoft also announced a growing list of vendors that are delivering a wide variety of VoIP-based client devices and services -- such as desktop and wireless phones, IP set-top boxes, residential gateways and thin clients -- running the Windows CE operating system. Windows CE 5.0 is Microsoft's real-time embedded operating system designed for 32-bit smart, connected and small-footprint devices such as consumer electronics devices, gateways, industrial controllers, mobile handheld devices, IP set-top boxes, VoIP phones and thin clients.



Additional VoIP features coming in Windows CE 5.0 will enable increased productivity for customers via multiparty audio conferencing, Exchange Server integration with contact search and calendar functionality, and unified messaging. New features also include automatic provisioning and user identification, which would help IT departments simplify deployment and administration of IP phones and VoIP devices.



New device and equipment manufacturer partners developing IP phones and VoIP devices using Windows CE include Atrium C&I Co. Ltd., Bast Inc., Intermec Technologies Corp., Inter-Tel Integrated Systems Inc., LG Electronics, Mikasa Shoji Co. Ltd., NEC Infrontia Corp., Netsys Corp., Reddline Systems Inc., RV Technology Ltd., Uptech Ltd., Wooksung Electronics Inc. and ZTE Corp. System integrators including BSQUARE Corp., HCL Technologies Ltd., Datacraft Asia Ltd., Net2Com Ltd., TABLETmedia Inc. and Zinwell Corp. are using the Windows platform to provide deployment and integration support for enterprises and service operators around the world.



These new industry partners join previously announced manufacturers BCM Computers Co. Ltd., Casio Computer Company Ltd., Hitachi Ltd., Samsung Electronics Company Ltd., Symbol Technologies Inc. and Tatung Co., which are delivering innovative IP phones and VoIP-enabled devices running Windows CE. http://www.microsoft.com

Juniper Powers VPLS Between Hutchinson and KT

Hutchison Global Communications (HGC) and Korea Telecom (KT) are deploying Juniper Networks' M-series routing platforms to launch the world's first production inter-carrier Virtual Private LAN Service (VPLS) over Metro Ethernet between Hong Kong and Korea. The advanced VPN service, which will make its commercial debut in the first half of this year, harnesses the M-series VPLS capabilities based on the IETF draft standard draft-ietf-l2vpn-vpls-bgp-01.txt. Juniper Networks described the deployment as a global first for inter-city Metro Ethernet LAN connectivity based on BGP signaling, a proven and scalable protocol used by the world's largest service providers for inter-carrier routing and policy exchange.



Juniper Networks said BGP-based VPLS services deliver a high level of automation that dramatically reduces provisioning requirements and increases operational efficiency. The Juniper VPLS solution provides Inter-Autonomous Systems (Inter-AS) VPLS functionality between independent service providers. This means that service providers with limited geographical coverage can partner with complementary service providers to provide inter-metro VPLS services with global reach. For end-users, VPLS provides simple multipoint-to-multipoint Ethernet connectivity across geographically dispersed enterprise sites, delivering the high performance and low management costs of Ethernet. http://www.juniper.net

Monday, March 29, 2004

Brix Launches Self-Service VoIP Quality Testing Site

Brix Networks has launched TestYourVoIP.com -- a free, self-service, VoIP quality testing portal that enables users to independently measure the quality of their VoIP connections via a quick, user-initiated test call.


The site is powered by the Brix System VoIP performance management solution, which consists of distributed hardware test points, called Verifiers, that communicate with, and are managed by, the BrixWorx central-site software application. The system tests signaling quality (signaling path performance), delivery quality (media transport performance), and call quality (overall call experience and voice clarity).


Visitors to TestYourVoIP.com execute a JAVA applet that initiates a test phone call using the Session Initiation Protocol (SIP) call-signaling protocol. Appliance-based Brix Verifiers emulate multi-line phones that answer these test calls and measure the quality of the "conversation." Verifiers are currently installed at locations in Boston and San Jose, with additional sites anticipated in the coming weeks.


Users are provided with a standard Mean Opinion Score (MOS) for call quality, as well as diagnostic latency, packet loss, and jitter metrics for each call. http://www.testyourvoip.com/

Global Crossing Expands its VoIP Portfolio

Global Crossing announced three new enterprise VoIP services that delivered over its private MPLS network. The new offerings include:

  • "VoIP Outbound": Global Crossing will accept enterprise outbound IP voice traffic for long distance and international long distance to more than 240 countries worldwide. The IP voice traffic will be transported across Global Crossing's private VoIP platform for off-net TDM completion via the local PSTN. The service will be available in the summer of 2004 in North America, with phased rollouts to other regions.


  • "VoIP Toll Free": Global Crossing will accept originating TDM Toll Free traffic, converting it to IP for transport across Global Crossing's private VoIP platform for IP completion to enterprise locations. The service will be available in the summer of 2004 in North America, with phased rollouts to other regions.


  • "VoIP On-net Plus": Enterprises will be able to connect all of their locations to Global Crossing and send IP or TDM on-net traffic for completion to more than 500 cities in 50 countries without traditional long distance and international long distance charges. Call detail records (CDRs), dial plan management and performance tracking will be available via Global Crossing's self-service online tool, "uCommand". Availability is slated for Q4 2004 in North America.


In addition, Global Crossing will manage the enterprise voice service within the premises router, administrating the customer's internal dial plan, and monitoring the quality and availability to meet the performance SLAs.



The new offerings enhance Global Crossing's existing VoIP On-net Transport service, which enable enterprises to use an IP VPN to eliminate traditional long distance and international long distance charges for their managed dial plans. This service has been available globally since May 2003. http://www.globalcrossing.com

Alcatel and Fujitsu Selected for Sea-Me-We 4 Cable

Alcatel and Fujitsu were chosen to build a new terabit capacity Sea-Me-We 4 submarine cable network, which will span nearly 20,000 km and link 14 countries from France to Singapore via Italy, Algeria, Tunisia, Egypt, Saudi Arabia, United Arab Emirates, Pakistan, India, Sri Lanka, Bangladesh, Thailand and Malaysia with 16 landing points.



Sea-Me-We 4 will have more than 32 times the initial capacity of the previous Sea-Me-We 3 system, which entered service in 1997. http://www.alcatel.com

Broadvox Deploys Sylantro for Consumer/Business VoIP

Broadvox is using Sylantro Systems' hosted VoIP communications solution to address the consumer VoIP market and the business IP Centrex market through the same platform. Broadvox, which deployed hosted communications services for business users in 2002, launched residential services in three cities in the Midwest earlier this month. Nationwide deployment is planned for 87 major markets by the end of 2004. Broadvox is the first announced Sylantro customer to deploy the consumer offering. http://www.sylantro.com

Netrake Upgrades Session Controllers for Residential Services

Netrake has enhanced its existing nCite session controller platforms to allow carriers to securely offer residential VoIP services. The new features in Netrake's nCite session controller include its new Hosted Firewall/NAT Traversal and User Mobility service. With the Hosted Firewall/NAT Traversal service, carriers who already have the nCite session controller deployed for carrier-to-carrier peering can now offer residential VoIP services on the same platform. The Hosted FW/NAT service recognizes registered residential end devices and performs the necessary security features to allow only authorized access to home VoIP networks. Netrake said its session controllers support high call processing volumes and over-subscription ratios required for a scalable residential voice service offering.



Level 3 Communications is using Netrake's platform for its wholesale, residential VoIP offering.



Netrake's User Mobility feature allows enterprise users to securely access their work VPNs and/or VoIP services while traveling, working from home, or on mobile devices. After performing deep packet inspection into the signaling and media, the Netrake nCite will recognize the user and securely authorize access back to the VoIP network. http://www.netrake.com
  • In January 2004, Netrake, a start-up based in Plano, Texas, secured $20 million in fourth round of funding for its session controllers for VoIP interconnection. Prism Venture Partners led the round with return funding support from existing investors TL Ventures, Austin Ventures and Trinity Ventures. Netrake has now raised more than $70 million in capital to date.

VocalData Hits the 20,000 Residential VoIP Subscriber Mark

VocalData announced that its customers are now delivering residential VoIP to more than 20,000 subscribers using the VocalData application server. VocalData's residential VoIP customers include Panasonic in cooperation with NTT COMWARE in Japan, which offers residential VoIP services to cable TV subscribers; PRIMUS Telecommunications Canada, which is making residential VoIP available in Canada via any high-speed Internet access connection; wholesale providers like Kancharla and regional providers like US Sonet and Ceristar in the United States. Additionally, new customers in Latin America, Australia and New Zealand have all begun to deploy residential services. http://www.vocaldata.com

Motorola to Acquire Quantum Bridge for FTTP

Motorola agreed to acquire Quantum Bridge Communications in an all cash transaction. Financial terms were not disclosed. Quantum Bridge is a supplier of FTTP solutions based in Andover, Massachusetts. Motorola said the acquisition complements its existing multiservice technologyhttp://www.motorola.comhttp://www.quantumbridge.com
  • Quantum Bridge was founded in 1998 and is headed by company founder Anthony Zona.

VON Keynote: Alcatel -- Migrating from VoIP to MMoIP

"We are at the dawn of the rich, media-connected world," said Vickie Yohie, Senior Vice President, Multimedia Services Delivery, Alcatel, speaking at the Spring VON conference in Santa Clara, California. But it is not just about VoIP, she said, as VoIP "is just one face of a larger market shift to user centric Multimedia over IP (MMoIP)" -- technology that is transforming the way enterprises and service providers communicate.



Why MMoIP? Yohie argues "because we can" and "because there is genuine market enthusiasm to do so." Over the past few years, the pain points inside most large enterprises have changed -- the corporate workers of today complain most about a new set of collaboration challenges, most of which are rooted in the lack of coordination between communications channels. These issues, argues Yohie, can be addressed by user centric business services delivered using MMoIP.



Consumers are also ready for value added services. While last year can be remembered as the Year of the Consumer Bundles, Yohie said tremendous pressure is now building among operators to differentiate those consumer bundles using unified messaging. Among broadband households with a home business, some 60% are interested in unified messaging, according to a survey commissioned by the company..

VON Keynote: The FCC Enters the Year of VoIP

"If last year was the year of spectrum, this is the year of VoIP," said Robert Pepper, Chief of Policy Development at the FCC. In the first three months of this year, the FCC has issued an historic declaratory ruling on VoIP (the Pulver.com petition), initiated a Communications Assistance for Law Enforcement (CALEA) rulemaking proceeding on VoIP, and launched a far-ranging Notice of Proposed Rule Making (NPRM) concerning "Everything over IP" (EoIP). In addition to the Pulver.com petition (now resolved), there are also at least five other declaratory rulings still pending on critical VoIP questions (AT&T, Level 3, Inflexion, Vonage and SBC).



This burst of regulatory action is not unexpected. Pepper said the FCC had been watching VoIP with interest for years but had decided not to jump into action in order to give the technology time to evolve. Its hand was forced however, when the state of Minnesota and others began their own regulatory actions against Vonage and other nascent VoIP providers.



Pepper said the policy basis for the current "light touch" regulatory approach rests on the strict legal definitions of "telecommunications," "telecommunications service" and "information service". But, as he pointed out, the really big questions remain. Who regulates the new broadband enabled IP world? What, if anything, gets regulated? How much should a local carrier be paid for terminating a call? How can the long standing social goals supported by past policies be preserved? What about the legacy economic model and cash flows? What implications are there for broadcasting rules or cable TV rules? What about rural issues? What about international jurisdiction?



Every year, the nation's universal service fund (USF) pays out approximately $673 million for low-income programs and about $3.0 billion to support high-cost rural services. There are additional programs to provide Internet access to schools and libraries, as well as to support rural health initiatives. The USF is paid for by taxes to interstate switched access minutes, which are now in rapid decline. Pepper said the old model is clearly not sustainable -- however, by his measure, VoIP is not principally to blame. Wireless substitution is having the largest effect. "Why would anyone pay for residential long distance service when you can make the call for 'free' using your mobile phone?"



"What we need now is to separate economic regulation and social policy," said Pepper, "and to find new ways to fund the social programs." A second critical policy step, he added, is to reform/rationalize the many regulated economic relationships between carriers.

VON Keynote: Jeff Pulver -- Nothing is Impossible

"It feels like 1999 all over again," said Jeff Pulver, describing what he said called a second coming of VoIP. Attendance at the Spring VON conference being held this week in Santa Clara, California is back to its pre-bubble days -- over 3,500 attendees are expected, including a majority of carriers. In his opening keynote address, Pulver observed that venture money is flowing back into VoIP start-ups again and there are even rumors that IPOs will be possible once again by early next year. The feelings of optimism can also be traced to the FCC's recent declaratory ruling, which found that Pulver's Free World Dialup service is an "information services" and not subject to traditional telecom regulation. It's clear that the FCC finally understands the issues involved. Meanwhile, major new VoIP products and services continue to hit the market every day.



Nevertheless, Pulver insisted that it is still "early days" for the VoIP industry. He noted that there currently exist fewer than 200,000 consumer VoIP accounts in the U.S. compared with some 23 million broadband users. The market has not yet "crossed the chasm" and the industry is still in the early adopter phase. Pulver commented that what the market really needs at this point is for someone like Steve Jobs to come up with a really great consumer iPhone -- something that is not just a plain old phone reworked for IP, but instead a breakthrough product for mainstream consumers.



Pulver also observed that the prospect of a re-write of Telecom Act of 1996 will be a two-edged sword for all of us. It is not evident how non-incumbent VoIP service providers can survive -- clearly it won't be on price alone. Major carrier are already coming to market with feature-rich VoIP offerings. Pulver also acknowledged the tough social policy issues raised by VoIP: CALEA cannot be ignored, E911 is critical, support for people with disabilities is necessary. He echoed calls for Universal Service to become Universal Broadband.



Pulver is proposing the concept of Globally Accepted Service Principles (GASP) to guide the industry. These would include the Four Freedoms outlined recently by FCC Chairman Michael K. Powell; a code of best practices for 911; a code of best practices for CALEA; and a vision of open peering with other service providers. To drive these principles forward, Pulver is establishing a global, non-profit organization to develop an IP Communications Memorandum of Understanding. The first meeting will be held this week at VON.
  • On 12-Feb-2004, FCC Commissioners voted 4-to-1 to approve a Declaratory Ruling that pulver.com's Free World Dialup (FWD) service is neither a “telecommunications service�? nor “telecommunications,�? and therefore not subject to traditional telephone regulation. The FCC also declared FWD to be an unregulated information service that is subject to federal jurisdiction.


  • Pulver's FWD allows users of broadband Internet access services to make VoIP or other types of peer-to-peer communications directly to other FWD members, without charge.


  • FCC Commissioner Michael K. Powell said the ruling "formalizes the Commission's policy of “non-regulation�? of the Internet and, in so doing, preserves the Internet as a free and open platform for innovation. Just as important, today's ruling removes barriers to investment and deployment of Internet applications and services by and ensuring that Internet applications remain insulated from unnecessary and harmful economic regulation at both the federal and state levels."


  • On 09-February-2004, Federal Communications Commission Chairman Michael K. Powell issued a challenge to high-speed Internet providers to adopt a set of four voluntary “Net Freedom�? principles:

  • Freedom to Access Content. Consumers should have access to their choice of legal content.

  • Freedom to Use Applications. Consumers should be able to run applications of their choice.

  • Freedom to Attach Personal Devices. Consumers should be permitted to attach any devices they choose to the connection in their homes.

  • Freedom to Obtain Service Plan Information. Consumers should receive meaningful information regarding their service plans.

Metaswitch and Wave7 Deliver VoIP over FTTP

Tennessee's Jackson Energy Authority (JEA) is partnering with Aeneas Internet & Telephone, the largest ISP in western part of the state, to offer voice services over FTTP to residential and business customers. Aeneas has selected MetaSwitch's VP3500 Next Generation Class 5 Switch for its VoIP services. JEA has chosen Wave7 Optics as its FTTP network vendor. http://www.metaswitch.comhttp://www.aeneas.net

VoicePulse Announces Plans for Encrypted Phone Service

VoicePulse, a broadband phone service provider, will use a telephone adapter from Sipura Technology to secure its customers' broadband phone calls using encryption. The encryption capability use technology built into the telephone adapter as well as modifications to VoicePulse's own softswitch, which was developed in house.



VoicePulse said that unlike other consumer VoIP offerings to date, its service will protect customer phone calls by encrypting the portion that travels over the public Internet -- a frequent request by its residential consumers and "an absolute requirement for business users."



VoicePulse is believed to be the first to announce plans to offer this level of VoIP security. The capability is expected to be implemented in Q2 2004. http://www.voicepulse.comhttp://www.sipura.com

SBC Teams with UPS to Launch Wi-Fi Service

SBC Communications plans to install its forthcoming "FreedomLink" Wi-Fi service in thousands of UPS store locations across the U.S.. The SBC Wi-Fi service will also be offered in domestic Mail Boxes Etc. stores, which are part of the UPS retail network. The deal is expected to bring the FreedomLink service to more than 1,500 The UPS Store and Mail Boxes Etc. locations by year-end, with installations continuing through 2005. Currently, there are approximately 3,300 The UPS Store locations, and the total U.S. network is projected to reach 5,000 by 2007. Pilot programs are also under way in Europe to assess the expansion of Wi-Fi hot spots at more than 1,100 Mail Boxes Etc. centers that are located outside the U.S.



SBC said it now plans to deploy more than 20,000 FreedomLink hot spots in 6,000 venues over the next three years and to create an integrated Wi-Fi and 3G wireless service.



SBC has also signed a Wi-Fi roaming agreement with Wayport, giving its customers access to roughly 800 more locations nationwide. Wayport is also assisting SBC companies with the deployment of FreedomLink service in The UPS Store and Mail Boxes Etc. locations.www.sbc.com/freedomlink

Level 3 Announces Wholesale VoIP Deal with 8x8

Level 3 Communications, is supplying its wholesale VoIP services to 8x8. Specifically, 8x8 has purchased the (3)VoIP Local Inbound and (3)Voice Termination services from Level 3. 8x8 serves residential and business customers through a suite of offerings under the Packet8 and Packet8 Virtual Office brands that include broadband telephone service for residential customers, consumer videophones and virtual office PBX solutions for small businesses.



(3)VoIP Local Inbound service, which rides Level 3's softswitch platform, enables VoIP service providers to establish a local presence in 73 markets across the U.S., while deploying and maintaining their application servers at a single location. The (3)Voice Termination service, originally launched in December 1999, enables PTTs, inter-exchange carriers, enhanced service providers, cable operators and other companies to terminate calls in the U.S. and abroad. http://www.Level3.com

iBasis DirectVoIP Service Simplifies VoIP Interconnections

iBasis introduced a service designed to simplify and accelerate carriers' implementation of direct VoIP interconnections to the iBasis global network for international voice service. The company said its new DirectVoIP service provides rapid interconnects with international VoIP deployments in a matter of days, in contrast to activation periods typically measured in weeks for interconnects to TDM telecommunication carriers. iBasis provides enhanced call signaling control using standards-based H.323 and SIP, allowing operability to multi-vendor gateways, gatekeepers, proxy servers, session border controllers, softswitches and IP phones. Network peering is provided using signaling interoperability through protocol proxies and session border controllers. http://www.ibasis.com

PointOne Selects Convedia's IP Media Servers

PointOne Telecommunications has deployed and standardized on Convedia's family of IP Media Servers. PointOne's pure VoIP network, which offers connections to 90 U.S. cities and several international markets, currently processes more than half a billion calls per month. Convedia's Media Servers are being used for PointOne's SIP-based Prepaid Calling Card Service and provide a comprehensive media processing platform for PointOne's other IP telephony enhanced services. Financial terms were not disclosed.



Convedia media servers consolidate the functions of traditional announcement servers, interactive voice response (IVR/VRU) units, conference bridges, messaging platforms and speech platforms into a multi-service, open standards compliant solution for network and enhanced services media processing. http://www.convedia.comhttp://www.pointone.com

Telica Names More Softswitch Customers

Telica named four new customers for its next generation softswitching platforms:

  • North Rock Communications -- a full-service fixed wireless CLEC that delivers a range of Internet, wireless, telecom and e-commerce products and services to both business and residential customers in Bermuda. North Rock also provides international long distance service to several other local carriers on the Island. Telica's platform supports both Class 5 local calling and Class 4 tandem trunking applications simultaneously. North Rock is Telica's 20th VoIP customer. In addition, they are one of more than 30 service providers utilizing Telica's softswitch to deliver Class 5 services to subscribers.


  • LataOne -- a California-based enhanced services provider (ESP), which offers services such as 800 calling, prepaid and postpaid calling cards, and other voice and data solutions targeted toward businesses.


  • GSC Telecommunications -- part of the Carolina Online family, which delivers a full range of service offerings, including local and long distance services, across both TDM and IP access to residential and business subscribers throughout North and South Carolina.


  • Socket Telecom -- a facilities-based communications provider, which offers local and long distance services to a range of businesses throughout Missouri.
http://www.telica.com

Net2Phone and Quintum Join Forces for Enterprise Solutions

Net2Phone and Quintum agreed to jointly market Net2Phone's VoIP enterprise services with Quintum's Tenor VoIP MultiPath Switches and gateways. Under the multi-year agreement, Net2Phone and Quintum will integrate VoIP services with enterprise VoIP MultiPath Switches and market the solution as a bundled telephony offering. The bundle will include a configuration "wizard" that can be used with new models of Tenor VoIP equipment to simplify the user experience and allow customers to easily set their gateways to offer low-cost calling over the Net2Phone network.



Quintum boasts 250,000 IP ports already deployed. It claims a distribution group of over 200 resellers spanning 70 countries. http://www.net2phone.comhttp://www.quintum.com

Callipso Selects Sonus Networks for VoIP

Callipso is deploying Sonus Networks' Open Services Architecture (OSA) in its national network to deliver a range of VoIP services, including origination and termination, as well as SIP-based enhanced services. Specifically, Callipso is implementing Sonus' core trunking solutions including the GSX9000 Open Services Switch, the Insignus Softswitch and the Sonus Insight Management System. Callipso is currently deploying the Sonus infrastructure in five cities throughout the U.S. to enable a SS7 interconnection capability that will support nationwide voice services as well as SIP-based enhanced services such as prepaid calling, web-based audio conferencing and, in later deployment phases, hosted IP Centrex and IP PBX offerings. Future network plans call for the deployment of Sonus' Network Border Switching solution, which will enable Callipso to interconnect or "peer" with other domestic and international carriers using VoIP rather than circuit switching. Financial terms were not disclosed. http://www.sonusnet.comhttp://www.callipso.com

CloudShield Raises $20 Million for Open Platform

CloudShield Technologies, a start-up based in Sunnyvale, California raised $20 million in third round venture financing for its multigigabit, open network services platform. CloudShield's open network services platforms eliminate the reliance on fixed-function ASIC-based appliances for network application and services delivery. The company said network solution developers, systems integrators, and network operators could port existing applications from network appliances and develop new applications to secure, monitor, measure, and control network traffic, by using its open platform.



Leading the round was first-time investor Foundation Capital. Additional investors include Paladin Capital Group, ComVentures and TPG Ventures . http://www.cloudshield.com
  • CloudShield was founded in October 2000 by Peder Jungck, who previously was CTO of yesmail.com (acquired by CMGI). The company is headed by Rusty Cumpston, who previously was CIO of ONI Systems.

Sunday, March 28, 2004

VON Keynote: AT&T -- Services over IP (SoIP) Transforms the Network

The AT&T network is designed to drive innovation at a fast pace, said Hossein Eslambolchi, President of AT&T Global Networking Technology, in a keynote address at the Spring 2004 VON conference in Santa Clara, California. Eslambolchi kicked off his presentation with a "Top Ten" list of technology trends and predictions affecting his network:



  • 1. IP is a PacMan and will eat everything in its path for the next 25 years

  • 2. Broadband is becoming common, driving traffic onto the backbone

  • 3. The Wireless Internet will be big -- look for 4G and 5G over the next 3-5 years to really shake things up

  • 4. Sensor networks will be everywhere -- RFIDs and IPv6s will add vast numbers of endpoints to the network

  • 5. Convergence of communications and computing is happening now

  • 6. Death of Locality -- your ID is bound to an IP address rather than a geographic location

  • 7. Security needs to be everywhere

  • 8. Next gen distributed computing is growing -- grid computing will tap into the huge amount of PC cycle time

  • 9.Home LANs will proliferate -- Wi-Fi will top 100 Mbps

  • 10. Data mining -- petabytes of data crossing the network need to be analyzed to deliver better intelligence


Eslambolchi said AT&T has embarked on a plan to retire its legacy TDM equipment over time, d replacing its workhorse circuit switches with a pure IP/MPLS architecture that runs over an intelligent photonic mesh core. His design goals are to transform the network to be provide the lowest cost, the greatest scale, and the greatest flexibility in service offerings. Two key elements of this architecture will include a multiservice access box and multiservice edge box -- not a "God box", said Eslambolchi, but an "AT&T" box, which will be introduced into the network in Q2. The multiservice edge box will tie into the IP/MPLS core. An application aware network layer will run on top of all this hardware, supporting consumer services such as the CallVantage offering, integrated messaging and e-communications. Nevertheless, Eslambolchi acknowledged that TDM is not going away any time soon and that we are going to be living in a hybrid environment for at least a decade.



AT&T has been working on a number of VoIP security issues, including ways to prevent the fradulent use of VoIP services, methods to guard against denial of service attacks, and ways to deter the evesdropping of VoIP packets along the media path. Rather than voice over IP, Eslambolchi prefers the term "Services over IP" (SoIP) to describe the next wave of networking.

VON Keynote: Siemens -- Moving to 2gIP

Kids take to instant messsaging by sheer intuition, teaching us that the "advanced" communications of today are merely the basics tools of tomorrow's workforce, said Bernd Kuhlin, President Enterprise Networks, Siemens ICN, in a keynote address at the Spring 2004 VON conference in Santa Clara, California. Kuhlin believes that the industry has emerged from the "Telecom Winter" to a Spring where service providers are realizing the economic value of upgrading their networks. Another hopeful sign of warmer weather, said Kuhlin, is the FCC's decision to take a "light touch" with regard to VoIP. He expects this new policy will be a precedent followed by countries around the world.



Kuhlin observed that the U.S. economy has experienced remarkable productivity gains in recent years, which can be argued were based on the first generation of VoIP technology. To push productivity gains even further, Kuhlin believes we need to create a SIP-based "unified domain" centered on applications and that bridges wireline, wireless, public and private networks. Kuhlin avoids the term "VoIP," prefering instead "Second Generation IP" (2gIP) to encompasses the richer possiblities that will result when communications are embedded into a workflow process. Siemens is teaming up with partners to integrated its HiPath solutions to other platforms, including IBM's WebSpher, Microsoft's .net and SAP's enterprise portals. http://www.siemens.com

IPCC Forms Working Groups

The International Packet Communications Consortium (IPCC) has formed the following working groups to further its 2004-2005 initiatives:

  • The Service Provider Packet Interconnection Group: captures interconnection rules and procedures for public VoIP networks. This group will focus on the challenges of interconnecting VoIP islands nationally and globally.


  • The Service Provider Application and Services Interoperability Group: liaises between service providers and other industry forums to accelerate the interoperability and conformance testing of multi-vendor VoIP and packet solutions.


  • The Session Boarder Controllers Group: works with vendors and service providers to define security and interconnectivity requirements for VoIP networks.


  • The Government and Regulatory Issues/Opinions Group: works with government organizations such as, the FCC, the FBI, the European Union (EU), and the ANSI T1S1.. The group also provides education and opinions to governmental bodies such as FCC and FBI/CALEA.


  • The Enterprise and Customer Premise Group: works with access providers and vendors to define and establish interconnectivity between the access layer and the core packet transport layers.


  • The Industry Resources and Education for VoIP and Packet Solutions Initiative: ensures communications between industry organizations and individual companies.
http://www.packetcomm.org

AT&T Launches its Consumer "CallVantage" VoIP

AT&T launched the first phase of its residential VoIP service at a price of $39.99 per month. The service, which initially is available in New Jersey, uses a telephony adapter connected to a broadband service. AT&T said consumers should be able to self install the service in under 10 minutes. AT&T is offering promotional pricing of $19.99 for the first six months of service. AT&T plans to introduce the service in the 100 top markets across the U.S. during the course of the year.



AT&T CallVantage features list includes unlimited local and long-distance domestic calling, call waiting, three-way calling, call forwarding, call logs, do not disturb, personal conferencing, locate me and online voice mail.



AT&T is currently supporting a limited 911-type service that will connect an emergency call to either the public safety answering point (PSAP) or local emergency service personnel for the address listed when registering for the service. The limited 911 service will not work if the telephony adapter fails, if the power fails, if the broadband service fails, or if a billing dispute has interrupted service. http://www.att.com/CallVantage
  • In February, AT&T launched a $200 million advertising campaign focused on integrated networking services.

MCI Trims Workforce, Cites Do-not Call Effect

MCI is reducing its workforce by approximately 4,000 employees as part of its ongoing cost reduction program. The majority of this reduction comes from closing three consumer call centers and reducing staffing in three others, in large part due to the effects of "Do Not Call" telemarketing laws. http://www.mci.com

Alcatel Bolsters IP Telephony R&D

Alcatel will reinforce its Research and Development (R&D) activities focused on IP telephony. The company announced plans to bolster its R&D teams by 100 employees in Europe - - 60 of
which will join the R&D teams at three French sites : Brest, Colombes and Illkirch. Alcatel will also create a software maintenance center in India. http://www.alcatel.com

Global IP Sound Releases VoIP Quality Enhancements

Global IP Sound released a new set of software modules for enhancing the audio quality of VoIP calls. The modules include functionality to add comfort noise during silence and automatically adjust audio levels.



Global IP Sound's Voice Activity Detector (VAD) classifies every frame as active speech frame or non-active speech frame. Non-active frames are passed to the comfort noise encoder that encodes the parameters of the background noise. The Discontinuous Transmission (DTX) defines the packet size and packet interval for the background noise parameters to obtain a decrease in bit rate. On the receiving side, the Comfort Noise Generator (CNG) decoder analyzes the background noise parameters and generates a comfort noise signal. Collectively the modules makes it possible to maintain a high perceived sound quality while reducing the average transmitted data rate during silent periods of speech. The VAD can operate in several modes depending on the usage scenario. http://www.globalipsound.com
  • Global IP Sound's sound processing software is designed to provide better than PSTN quality sound for calls over packet networks. Instead of using buffers, which can add to latency, Global IP Sound's approach is to encode input speech into a series of sound descriptions that are separately transmitted to build a “sound profile�? that aids in lost packet compensation. The speech quality processing is thereby provided at the edge of the network, rather than at the core. The software can be implemented in IP phones, softphones, media gateways, and wireless VoIP on PDAs. The company claims better than PSTN quality VoIP even in adverse network conditions of up to 30% packet loss.

Shanghai Metro Selects Lucent Optical

Shanghai Metro has selected Lucent Technologies' optical networking solutions for the second phase of its transmission network project involving Line 4 of the city public transit system. Lucent's optical solutions are already being used to link subway stations on one route of Shanghai's metropolitan subway system and to improve its multiservice network.



Shanghai Posts and Telecommunications Equipment (PTIC), a Lucent Business Partner that has worked with Shanghai Metro and Lucent on the project for the transportation agency's Line 1 operation since February 2003, will provide post-sales support for this project as well. http://www.lucent.com/solutions/metro_optical.html

BroadSoft Announces Ten New Service Provider Customers

Ten new service provider customers have chosen BroadSoft's BroadWorks network communications platform to support hosted VoIP services for the enterprise and residential broadband markets. The announced customers include: Broadvoice, Broadweave Networks, DRD Communications PLC (United Kingdom), Eureka Networks, Inflexion Communications, ISN Communications, RealConnect, Ultimate Medium Communications, XIPTEL and WorldxChange Communications (New Zealand). http://www.broadsoft.com

T-Com Selects Siemens/ADVA for Metro Optical

T-Com, the fixed network division of Deutsche Telekom, awarded Siemens Information and Communication Networks (ICN) a two-year, worldwide master contract to supply, install, and maintain optical transport equipment in metropolitan area networks. The metro optical transport project will use ADVA Optical Networking's DWD systems, including its Fiber Service Platform (FSP) 3000, along with the Siemens Telecommunications Network Management System (TNMS). Financial terms were not disclosed. http://www.siemens.com/networks/http://www.advaoptical.com

Level 3 Announces Two Residential VoIP Phone Services

Level 3 Communications introduced two wholesale, residential VoIP services for cable operators, ISPs, enhanced service providers, IXCs and others:

  • (3)VoIP Enhanced Local Service is aimed at service providers who are seeking to offer residential voice services but prefer to operate their own switching infrastructure. It allows companies to develop voice services using Level 3 provided building blocks, including local phone numbers, interconnection with the traditional telephone network for local and long distance services, local number portability and E911 emergency services. Service availability is expected in Q2.


  • HomeTone is a turnkey, hosted VoIP alternative to traditional residential local and long distance phone service. It offers the benefits and functionality of (3)VoIP Enhanced Local service, plus calling features such as voice mail, call waiting, and three-way conferencing. In addition, HomeTone includes advanced calling features such as unified messaging, and a personal locator function that forwards the call until it reaches the designated party. Service availability is expected in Q2.
http://www.level3.com

Packet8 and FreeWorld Dialup Offer Unlimited Calling Between Users

8x8 and FreeWorld Dialup (FWD) have interconnected their VoIP networks and are now providing unlimited calling between the two services. The companies see the interconnection of VoIP networks as a trend that will continue. http://www.packet8.net

NEC Selects Kagoor for Global Session Border Control

NEC Corporation signed a global Value Added Reseller (VAR) agreement covering Kagoor Networks' Session Border Control solutions. Kagoor offers a scalable family of Session Border Controllers, including a high capacity, fault tolerant carrier grade model (VF-3000), a VoIP service provider or carrier edge model (VF-1000) and a CPE solution (VF-200). The VoiceFlow platforms deliver 5 essential VoIP applications: Network-hosted NAT traversal and VPN aggregation, network protection, carrier peering and enterprise border control. http://www.kagoor.com

Polycom Demos Integrated Voice/Video/Web SIP & H.323

Polycom is demonstrating integrated voice, video, and web applications across H.323 and SIP.T he technology demo uses a broad array of Polycom endpoints, software, and bridges -- recreating the enterprise challenge of connecting personal desktop and mobile systems with conference rooms and the network core. http://www.polycom.com

Legerity Integrates Line Testing in Packet Voice Interfaces

Legerity introduced its VoiceEdge architecture for integrating advanced line testing functionality into carrier-class packet voice equipment. Legerity's programmable VoicePort chips provide a functional line interface for short and medium loop applications. Key features include: high voltage switching regulator, self-test, line test capabilities, integrated ringing (up to 140-Vpk), worldwide software programmability, wide band mode, flexible signal generator with tone cadencing and integrated unbalanced ringing.



Legerity's new architecture is comprised of more than 20 new products, including the VE790 series interface chips for central office equipment, DSLAMs and DLCs; and the VE880 series one- and two-channel interface chips for consumer applications such as voice-enabled cable and DSL modems.

The VE790 analog line interface chipsets integrate the advanced line testing functionality into the silicon, which until now was performed by expensive dedicated hardware called test heads. This integration allows for the elimination of test heads in mid to high line count systems and provides line test functionality in low line count systems for the first time. The new chipset is also the first ever to integrate all the functionality required to control and manage multiple telephone lines on a single line card. Functions such as ring sequencing, caller ID sequencing and call progress tone are handled within the chipset, thus dramatically reducing the engineering effort to add voice to DSLAM systems.



Legerity said the new capabilities would enable service providers to solve most customer issues from the office by executing remote line test measurements, thereby eliminating truck rolls and shortening the response time to the customer. http://www.legerity.com

Peer1 and Pulver.com Launch VOIP Acceleration Project

Peer 1 Network and Pulver.com are launching a "VoIP Acceleration Project" that will subsidize new VOIP companies in their bandwidth and co-location needs. The companies said that would provide "provide a launching pad for VOIP entrepreneurs with the vision, but not necessarily the financial backing, to take VOIP to the masses."http://www.pulver.com/colo

UTStarcom Announces $85.7 Million in China Netcom Contracts

UTStarcom has been awarded approximately $85.7 million with China Netcom Corporation (CNC) to expand and upgrade its IP-based PAS (Personal Access System) networks in Beijing and the Heilongjiang province.



UTStarcom also announced that as a result of the strong demand for its PAS infrastructure and handsets, the company is guiding to slightly higher revenues, slight gross margin pressure, and reiterates GAAP EPS guidance for the first quarter of 2004. http://www.utstar.com

Precision I/O Raises $10 Million

Precision I/O, a start-up based in Palo Alto, California raised $10 million in venture funding to bring to market a new high-performance server I/O architecture based on Ethernet. The company said its architecture would "open up the server-to-network bottleneck that has plagued enterprises in their efforts to bring the benefits of high-speed networking to data-center and high-performance computing applications." Product introductions are expected in mid-2004. Lead investors are Advanced Technology Ventures (ATV), 3i, and Foundation Capital.



Precision I/O was spun out from Packet Design in March 2003. Judy Estrin serves as chairman and acting CEO. http://www.precisionio.com

Secure Video Processor Initiative Promotes Open Content Standard

NDS and STMicroelectronics announced the joint development of a content protection solution for consumer electronics that is compliant with the Secure Video Processor (SVP) initiative.



The Secure Video Processor (SVP) logic could be embedded in a wide range of chips for CE devices including digital TVs, set-top boxes, digital video recorders (DVRs), portable players and other mobile devices. http://www.svp-cp.orghttp://www.nds.com

Convedia and Netrake Integrate Media Servers and Session Controllers

Convedia and Netrake announced a partnership agreement combining Convedia's carrier-class IP media processing platforms and Netrake's session controllers for VoIP interconnection. In the integrated Convedia/Netrake solution, the Netrake nCite system will seamlessly control Convedia media server products to provide adjunct transcoding of media streams with incompatible encoding, providing a scalable, carrier-class solution that encompasses both signaling and media mediation.



Convedia media servers offer a range of media processing features, including transcoding between voice and video IP packets encoded in different formats. Convedia media servers support a broad range of codec standards - including G.711, G.723.1A, G.726, and G.729AB - with a variety of wireless voice and IP video codecs.



Session controllers are network elements that control and anchor both signaling and media across network domains and borders, performing the peering functions required for real time communications. Netrake's nCite product family provides transparent signaling protocol mediation between H.323, SIP-T and SIP networks, allowing voice and video IP messaging to be seamlessly translated between carrier-to-carrier and carrier-to-enterprise IP networks. http://www.convedia.comhttp://www.netrake.com

Priority Call Management Delivers Support for IP

Priority Call Management, a supplier of enhanced calling and messaging solutions, is extending full IP-support for its "ORYX" platform, which is widely installed in service provider networks globally to support enhanced calling and messaging applications such as call answering, IVR, unified messaging, personal one-number, and prepaid calling.



The ORYX Messaging Application for VoIP extends an existing ORYX with SIP and H.323 capabilities. New services are provided by Priority Call's next generation Application Server that controls other network elements via SIP. The company is also introducing a software toolkit based on XML and HTTP for service creation. http://www.atosorigin.com
  • Priority Call Management is a division of Atos Origin is an international information technology (IT) services company.

World Wide Packets Selected in Virginia

World Wide Packets has been selected to supply its LightningEdge Ethernet access solution by the Lenowisco Planning District Commission, a central planning agency for three counties in southwestern Virginia. The municipal broadband initiative will provide business and residential services. Financial terms were not disclosed. http://www.worldwidepackets.com

California's Arrival Communications Deploys Metaswitch

Arrival Communications, a CLEC based in Bakersfield, California is deploying the MetaSwitch VP3500 Next Generation Class 5 Switch to deliver broadband voice service to business customers. The installation will complement Arrival's legacy Lucent VCDX Class 5 switching system in its existing markets, and also enable more flexible expansion into new markets. Arrival has over 12,000 subscriber lines serving small and medium-sized businesses in Tier 2 and 3 markets in California. Financial terms were not disclosed. http://www.metaswitch.comhttp://www.arrival.com

MetaSwitch Expands VoIP Capabilities with SIP and IP Centrex

MetaSwitch announced a series of enhancements for its VP3500 Next Generation Class 5 Switch, including support for IP Centrex and Session Initiation Protocol (SIP) v2.0. Support for SIP extends the MetaSwitch VP3500's interoperability to a wider range of devices including SIP phones and SIP-based feature servers.



MetaSwitch's SIP softswitch implementation provides back-to-back user agent (B2BUA) and registrar functionality integrated with an SS7 signaling gateway and media (trunk) gateway with ATM, IP and TDM interfaces. The MetaSwitch VP3500 already supports a full range of IP Centrex and VoIP subscriber services over MGCP and NCS gateway control protocols. The addition of a SIP feature server interface allows these to be augmented by custom-developed features or off-switch services. MetaSwitch is working on pre-integrating solutions with a range of such feature servers, including Data Connection's MailNGen unified messaging and MeetingServer conferencing applications, and IP-based platforms for traditional services such as pre-paid calling.



The MetaSwitch VP3500 SIP-enabled software release is available now. The company said many of MetaSwitch's 40+ deployed switches have already been seamlessly upgraded. http://www.metaswitch.com

Excel Switching and Mediaring Enter VoIP Partnership

Excel Switching Corp. announced successful interoperability lab tests between its PSTN to IP gateway and MediaRing's VoizBridge session controller. The joint solution enables carriers to expand their offerings of IP services such as VoIP wholesale (prepaid and postpaid), VoIP calling cards, enterprise VoIP and IP conferencing and fax. Both solutions seamlessly interoperate between H.323 and SIP, thereby protecting a carrier's investment in legacy equipment while allowing the carrier to expand into the burgeoning VoIP market. http://www.xl.comhttp://www.mediaring.com

Thursday, March 25, 2004

Bush Comments on National Broadband Goal

In a campaign speech in New Mexico that was otherwise mainly focused on home ownership trends, President George Bush issued a call for affordable high-speed internet access to be available for all Americans by 2007:



"This country needs a national goal for broadband technology, for the spread of broadband technology. We ought to have a universal, affordable access for broadband technology by the year 2007, and then we ought to make sure as soon as possible thereafter, consumers have got plenty of choices when it comes to purchasing the broadband carrier. See, the more choices there are, the more the price will go down. And the more the price goes down, the more users there will be. And the more users there will be, the more likely it is America will stay on the competitive edge of world trade."



Regarding the possibility of taxing Internet access, Bush also commented "Let me say one thing about broadband -- we don't need to tax access to broadband. The Congress must not tax access to broadband technology if we want to spread it around."



Some industry reaction



Michael K. Powell, Chairman of the FCC, said "The president has set out a bold vision for broadband investment and deployment over the next four years. I look forward to working with my commission colleagues, Congress and the administration to deliver on this vision for the American people. Universal and affordable access to broadband is vital to the health and future growth of our economy."



John Chambers, Cisco Systems' CEO, commented: "I applaud President Bush for his vision of universal, high-speed broadband access in the United States. The Administration understands that broadband is a key driver of productivity and a vital component of economic growth. http://www.whitehouse.gov/

Azea Networks Develops Submarine Optical System

Azea Networks, a start-up based in London, unveiled an upgrade solution for undersea cable systems that are nearing the "glass ceiling" of their original design capacity limits.



Cable systems deployed in the mid to late 1990s were designed for relatively low bandwidth -- typically between one and eight wavelengths at 2.5 Gbps per channel, yielding no more than 20 Gbps total capacity per fiber pair.



Azea said that because these cables employ no electrical regeneration, in principle higher capacities could be achieved by using more sophisticated terminal equipment. In practice, however, the legacy wet plant imposes significant transmission penalties when compared with state-of-the-art multi-terabit cables.



Azea said its advanced electronic and optical technologies, including forward error correction and dispersion management, overcomes these limitations to deliver multiple 10 Gbps channels over existing cables, enabling undersea cables to achieve upgrade capacities more than 10 times the original design. Azea's solution comprises the following elements:

  • the Azea NX10 Submarine Line Terminal Equipment (SLTE), which leverages modulation techniques, Forward Error Correction (FEC) coding, and end-to-end control loop optimization


  • the Azea Element Manager (EM) and Craft Terminal (CT) that integrate with existing Operational Support Systems; and


  • a set of pre- and post-deployment services.
http://www.azea.net
  • Investors in Azea include Accel Partners, Atlas Venture and Quester.

FTTH Council Urges Federal Funding for Rural Broadband Loans

The FTTH Council is lobbying Congress to ensure full funding of a federal program providing broadband loans for rural communities. The loan program, administered by the U.S. Department of Agriculture's Rural Utilities Service, was authorized by Congress in 2002 for a six-year period, but has been targeted for reduction by the Bush Administration.



A similar industry effort last year was successful in forestalling cuts to the program in Congress' FY 2004 appropriations legislation. http://www.ftthcouncil.org

Verizon Response to S&P

Verizon Communications issued an immediate response to Standard & Poor's ratings announcement:



"Despite the general industry issues cited by S&P, we do not believe this watch is warranted given our strong business results and progress with debt reduction. We have confidence in our business model, which continues to generate healthy cash flows, including $6.4 billion in free cash flow last year. We have already reduced total debt by more than $18 billion over the past two years," said Doreen Toben, Verizon CFO. http://www.verizon.com

Standard & Poor's Foresees Greater RBOC Risks

Citing changing wireline industry dynamics and lack of clarity regarding key regulatory and competitive issues for RBOCs, Standard & Poor's placed its long-term ratings for Verizon Communications on its CreditWatch list with negative implications. Verizon Network Funding Co. also was placed on CreditWatch with negative implications.



On 17-Feb-2004, S&P placed SBC Communications and BellSouth on CreditWatch with negative implications, following the announcement that Cingular had agreed to acquire AT&T Wireless. These companies remain on CreditWatch with negative implications due to the potential credit weakening associated with the debt that SBC and BellSouth (Cingular's respective 60% and 40% owners) will incur to fund the AT&T Wireless transaction ($41 billion in cash plus net debt assumption). In addition, Standard & Poor's said the CreditWatch listings for SBC and BellSouth now include the additional potential for a rating downgrade as a result of increased business risk for these companies' wireline businesses.



In a conference call and press statement, Standard & Poor's observed that while these RBOCs maintain solid business positions and dominant market shares in most of their wireline sectors, "it is clear that their business positions have weakened to some extent in recent years and are likely to continue to be under increasing competitive pressure." S&P said the main challenges to the RBOCs' historical core business are threefold:

  • continued loss of access lines to wholesale lessors;


  • wireless substitution; and


  • cable telephony.


"Standard & Poor's recognizes that the three investment-grade RBOCs will continue to demonstrate many solid business and financial characteristics. Their business positions, though weaker than in the regulated monopoly days, are still solid. They have strong balance sheets and significant free cash flow, which enables potential deleveraging. Each has a major ownership position in a strong, nationwide wireless company."http://www.events.standardandpoors.com

Bharti and IBM Announce Telecom Partnership

Bharti Tele-Ventures Ltd., India's leading telecommunications conglomerate, and IBM India announced a long term on demand business transformation agreement targeting the telecom industry. The deal encompasses three components:

  • an initiative to consolidate, transform and manage comprehensive Information Technology (IT) infrastructure and applications.


  • the joint development and marketing of IT and telecommunications solutions and services for India.

  • Bharti Tele-Ventures to be a preferred supplier of telecommunications services to IBM India.
http://www.bhartiteleventures.comhttp://www.ibm.com/services

Sprint and Truckstop.net Sign Wi-Fi Deal

Sprint entered into a bilateral Wi-Fi roaming agreement with Truckstop.net covering more than 500 Truckstop.net wireless-enabled truck stops and travel plazas in the United States and Canada. The deal will also allow Truckstop.net service subscribers to connect to Wi-Fi ZONES compatible with Sprint service nationwide at many airports, convention centers, hotels, shopping malls and other public venues. http://www.sprint.comhttp://www.truckstop.net

Wednesday, March 24, 2004

Brooktrout to Acquire SnowShore for Media Server

Brooktrout will acquire SnowShore Networks, a start-up based in Chelmsford, Massachusetts for approximately $10 million in cash. SnowShore supplies a line of media server and media firewall products aimed at service provider applications. Snowshore's media servers are designed to integrate rich content from the Web and distributed network databases into voice services enabling the creation of converged enhanced services. Capabilities include network announcements, auto-attendant, voice messaging, pre-paid calling, integrated voice recognition, IP Centrex, audio/Web conferencing, unified communications, voice portal and multi-media messaging functionalities.



Brooktrout is a supplier of products for media processing, network interfaces, call control and signal processing. The company is based in Needham, Massachusetts. http://www.brooktrout.com/http://www.snowshore.com
  • SnowShore Networks was founded in May 2000 and raised $35.6 million in two rounds of funding from Charles River Ventures, Matrix Partners, St. Paul Venture Capital and 3i.

Swedish Municipal Carrier Selects PacketFront

Mälarenergi Stadsnät AB, a council-owned power company in Västerås, Sweden has entered into a partnership with PacketFront to rollout FTTH connections. In 2000, Västerås was the first municipality in Sweden to form its own commercial company to build and operate an open urban network, and since then the company, Mälarenergi Stadsnät AB, has deregulated the broadband market.



PacketFront's ASR 4000 broadband routers and its BECS control and provisioning system will be installed in all of Mälarenergi's new connections. Mälarenergi will eventually be replacing its existing equipment so that in the future it will have only one system, regardless of access technology (fiber, cat 5, VDSL or ADSL), in its network. http://www.packetfront.com

DoD Selects Lucent to Rebuild Iraq's Communications

The U.S. Department of Defense (DoD) awarded a two-year, $75 million contract to Lucent Technologies to rebuild, restore and modernize communications systems in Iraq. As the prime contractor, Lucent will work under the direction of the Program Management Office (PMO) of the Coalition Provisional Authority as part of the overall Iraq Infrastructure Reconstruction program. The contract has options that could extend it for five years.



Lucent recently completed installation of 13 switching, optical and network management systems in and around Baghdad under a separate subcontract to Bechtel. http://www.lucent.com

Deloitte & Touche Sees Major Off-shoring Trend for Telecom Jobs

By 2008, five percent of the telecom industry's 5.5-million labor force, or 275,000 positions, will be off-shored to countries with lower labor costs, according to a survey 42 global telecommunications operators that was conducted by Deloitte & Touche's Research division. The survey included 10 of the world's top 20 operators on a revenue basis and the survey sample represents approximately 30% of total industry revenues - based on 2002 results.



Although the off shoring trend in the telecom industry currently lags behind high tech and financial services, Deloitte & Touche believes off shoring is fast becoming one of the industry's most significant business trends.



The Deloitte & Touche study found the following benefits from off-shoring across all operators:

  • Cost savings for early adopters are expected to range between 20% and 30%, with additional savings expected.


  • Industry's move toward advanced data-oriented services will fuel the off-shoring trend by increasing the need for affordable support staff with strong technical skills.


  • Enhanced competitiveness, as multiple time zones allow teams to work around the clock to reduce time-to-market for application development.


  • Top processes being off-shored include IT services, call centers, accounting and finance, operations and application service development.


  • India is the destination of choice for off-shoring, but countries such as China, Estonia and Argentina are coming online as off-shoring sites.


  • The ability to off-shore varies. For example one operator waited 118 days to set up an IP VPN with India - this company only realized 5% cost savings;

  • Currently 30% of operators are off-shoring; slightly over half of all operators have no current policy, or have decided not to off-shore at present

  • Cost savings for operators that had undertaken off-shoring were typically in the range of 20% to 30%, with some operators attaining in excess of this.


Deloitte & Touche also identified several risks for telecom operators to consider. These include operational complexity and loss of control; language barriers, cultural differences and the protection of intellectual property; objections from home country groups, such as trade unions, as well as anti-globalists and internal employee resistance; and business disruption and security, driven by political instability or immature operations.



Deloitte & Touche is offering advice to operators that are considering an off-shoring strategy. The company forecasts cost savings for the industry to have reached $14 billion per annum by 2008. http://www.deloitte.com/research

Mirra Secures $8 Million for Personal Servers

Mirra, a start-up based in Mountain View, California secured $8 million in Series B funding for its digital content protection and management solutions for consumers. The company offers a Linux-powered personal server designed to provide hands-free, continuous backup, secure remote access and sharing from any Internet-connected PC. The new funding was led by Sequoia Capital and included existing investors Venture Strategy Partners and Sunrise Capital.



In addition, Mirra announced the appointment of Jonathan M. Harris as vice president of sales. Harris joins the company from Roku, where he was vice president of sales. http://www.mirra.com

Irish Broadband Deploys 3.5 GHz System from Navini

Irish Broadband is using Navini Networks' Ripwave platform to deploy one of the first next generation, non-line-of-sight (NLOS) wide-area wireless broadband networks in the European Union at 3.5GHz. The rollout will begin by covering 100% of Dublin. http://www.navini.comhttp://www.irishbroadband.ie

Alcatel and Intel Enter Alliance for WiMAX

Alcatel and Intel announced a strategic alliance for the definition, standardization, development, integration and marketing of WiMAX end-to-end solutions. This alliance will deliver solutions by the second half of 2005. http://www.alcatel.comhttp://www.intel.com
  • Earlier this month, Intel and Siemens announced a partnership for the development of WiMAX base-station infrastructure equipment as well as end user subscriber station devices.


  • Intel has previously announced plans to supply IEEE 802.16 compliant Wi-MAX silicon to Alvarion, Airspan Networks and Aperto Networks.

Tekelec Names Chief Operating Officer

Tekelec appointed Lori Craven as Chief Operating Officer (COO). She will continue to support the company's Global Sales and Marketing Group as well as assume responsibilities for the Santera Next-Generation Switching Business Unit. David Heard has left Santera to pursue other interests.



Craven joined Tekelec in January 2002 as the Vice President and General Manager of the Network Systems Division and has been leading Tekelec's Global Sales and Marketing Group since August 2003. She previously served with Lucent Technologies as Vice President, Mobility Solutions Development. http://www.tekelec.com

AudioCodes Introduces Media Server for VoIP and VoATM

AudioCodes introduced a media server offers up to 2,016 low-bit-rate VoIP/VoATM channels of media processing. AudioCodes new IPmedia 3000 media server could be used to provide centralized announcements, conferencing, vocoding, IVR media transcoding, IP multicasting / IP forking, record & playback, Web-based playback and other media server functions.



AudioCodes said its platform can address small to mid-density applications deployed in IP, ATM or mixed IP/ATM core networks. It also offers an optional optical PSTN interface. The IPmedia 3000 supports a variety of wireline and wireless vocoders, standards-compliant signaling and call control, state-of-the-art Echo Cancellation, and T.38 fax transmission. http://www.audiocodes.com

Ixia Enables Ethernet over SONET Testing with GFP

Ixia announced support for Generic Framing Procedure (GFP) on its OC-48c Packet over SONET (POS) interface test module. The new feature targets the testing of Metro Ethernet devices and services by generating and analyzing wire-speed Ethernet over SONET traffic for verification of transport networking equipment, multi-service provisioning platforms (MSPPs), and edge routers.



GFP is the ITU-T G.7041 standard which defines a set of methods for framing different Layer 1 and Layer 2 data traffic types -- such as Ethernet, PPP, IP, Fibre Channel, ESCON, and DVB -- into a common structure for transport over SONET networks. The protocol is used in deploying metropolitan Ethernet services and bridging customer-facing Ethernet connections with the carrier-facing SONET network.



Ixia's GFP option generates wire-speed Ethernet or PPP traffic, frame-maps the Ethernet or PPP traffic into GFP, and transports the GFP frames over an OC-48c POS interface. Statistics provide monitoring of GFP-specific functions, while trigger and filter functions enable capture and analysis of GFP frames. http://www.ixiacom.com

Juniper Networks Secures GSA Contract

The U.S. General Services Administration (GSA) has awarded a Multiple Award Schedule contract (GS-35F-0330J) to immixGroup covering Juniper Networks' products. The contract enables government agencies to more easily purchase Juniper's IP products, including the E- M- and T-series routing platforms.



The immixGroup is a government business consulting firm. http://www.juniper.net

AT&T Names Kevin Crull to Head Wireless Initiatives

AT&T named Kevin Crull as senior vice president and general manager-wireless services. Prior to his appointment, Crull was senior vice president of marketing and sales at AT&T's consumer division. http://www.att.com

Connexion by Boeing Sets Pricing for In-Flight Internet

Connexion by Boeing announced pricing details for its in-flight Internet service, which scheduled to become commercially available this spring on certain airlines. The company is offering two initial pricing plans, which will vary depending on flight length:

  • Flat Rate Pricing Option: (Unlimited access to the Internet) $29.95 for long-haul flights (more than six hours); $19.95 for medium-haul flights (between three and six hours); and $14.95 for flights less than three hours.


  • Metered Pricing Option: 30-minute starter package for $9.95 with rates of $0.25 per minute thereafter.


Lufthansa will be the first airline to launch the Connexion by Boeing service on commercial flights originating from Germany this spring. Connexion by Boeing also has service agreements with Scandinavian Airlines System (SAS), Japan Airlines and ANA. Singapore Airlines and China Airlines also have expressed their intent to install the service in subsequent months. http://www.connexionbyboeing.com

ADC to Acquire the KRONE Group

ADC agreed to acquire the KRONE Group, a global supplier of copper- and fiber-based cabling products, from GenTek Inc.. The deal was valued at approximately $350 million, of which ADC will pay cash of approximately $291 million and assume certain defined liabilities consisting principally of KRONE's pension obligation for its German workforce.



ADC said the KRONE acquisition makes "a perfect fit" with its new strategic initiative to become the leader in global network infrastructure solutions and services. The combined company is expected to have a worldwide market leadership position in copper and fiber central office infrastructure cabling solutions, as well as a leading market share position in enterprise structured cabling systems.



KRONE has more than 2,000 employees, eight factories and five research and development centers around the world. Based on unaudited numbers, KRONE had sales of $316 million, operating income of $13 million before restructuring and impairment charges, and depreciation and amortization expense of $14 million in the year ended 31-Dec-2003 compared to 2002 annual sales of $267 million resulting in an operating loss of $10 million before restructuring and impairment charges, and depreciation and amortization expense of $14 million. http://www.adc.comhttp://www.krone.com

Visual Networks Introduces Application Performance Visibility

Visual Networks introduced a new "Visual UpTime Select" capability for verification of application delivery across both high-speed (OC-3) and international (E1) IP networks. Visual Networks' performance management system now provides real-time and historical network and application visibility across high- bandwidth networks employing mixed or homogeneous MPLS, private IP, Frame Relay and ATM circuits.



Visual Networks said its Analysis Service Elements (ASEs) enable highly scalable data collection with local storage to eliminate the need for frequent polling, thereby significantly reducing management traffic overhead. In addition to collecting network performance data used for event monitoring, troubleshooting, traffic capture, and planning and reporting purposes, the new OC-3 and E1 ASEs support IP service level agreements (SLAs) so that Visual UpTime Select customers can monitor availability, throughput and round-trip delay metrics. In addition, the new ASEs can track multi- protocol activity and gather SLA data for IP Class of Service (CoS) traffic. http://www.visualnetworks.com

ARRIS Achieves Interoperability with Nortel's Softswitch

Interoperability testing has been completed between ARRIS PacketCable and DOCSIS 1.1 qualified Cadant C4 CMTS and Touchstone MTAs and Nortel Networks' PacketCable qualified Succession Communication Server (CS) 2000 superclass softswitch series.



The Cadant C4 CMTS and Touchstone MTAs provide customer premise termination for cable VoIP. Nortel Networks' softswitch and associated core products deliver the features and call control functionality. Together, the platforms could be used by cable operators for full-featured primary line residential phone service. http://www.arrisi.com

Tuesday, March 23, 2004

Dialpad Claims VoIP Service Profitability in Q4 2003

Dialpad Communications, a privately-held provider of VoIP-based services, announced that it reached profitability in Q4 2003 and was EBITDA positive for the six month period ending 31-December-2003. The company had originally anticipated attaining profitability by December 2004.



Dialpad launched its Internet telephony service in 1999 and quickly grew to over 14 million users for its PC-based calling service. However, Dialpad filed for Chapter 11 protection in 2001, due to the decline in online advertising. The company then appointed Craig Walker as its new CEO and the business was transformed from a free to a pay service. http://www.dialpad.com

Broadcom Ships "Good Neighbor" 802.11g Afterburner

Broadcom is shipping an enhancement technology that enables its 54g wireless LAN products to provide up to 40% greater throughput than typical standard 802.11g systems without impacting the performance of neighboring wireless LANs.



Broadcom described its "Afterburner" technology as a "good neighbor" enhancement because it boosts wireless throughput without interference to other Wi-Fi networks and while remaining compliant with the 802.11g channel requirements limiting transmissions to a single wireless channel. In contrast, Broadcom said current alternative technologies that promise 108 Mbps performance violate the standard's channel requirements and occupy all usable channels in the 2.4 GHz band, thus causing significant interference to neighboring Wi-Fi networks and other wireless devices in the band, such as cordless phones.



Linksys has incorporated the technology into its new family of SpeedBooster products, while Belkin, Buffalo and others will promote the technology as "125 High Speed Mode."http://www.broadcom.com

Holland's SURFnet Upgrades with Nortel, Avici, Telindus

SURFnet, the educational and research network organization in the Netherlands, selected Nortel Networks, Avici Systems and Telindus to build a hybrid optical and packet switching infrastructure. The deployment will use Nortel Networks' recently launched Optical Multiservice Edge 6500 and Avici Systems' Stackable Switch Routers (SSR). SURFnet plans to continue to evolve the network over a seven-year period with the most up-to-date features and products from Nortel Networks and Avici Systems. Telindus, a pan-European network integration specialist, will provide the installation and on-site maintenance services support throughout the seven-year period. Financial terms were not disclosed. http://www.nortelnetworks.comhttp://www.surfnet.nl/en

Verizon Offers Consumer Online Backup Service

Verizon Online introduced a new "My Storage Place" service for its residential broadband customers. Storage "lockers" are being offered in four sizes:

  • 50 MB -- $4.95 per month

  • 100 MB -- $6.95 per month

  • 500 MB -- $9.95 per month

  • 1 GB -- $19.95 per month


Verizon Online is using BigVault Storage Technologies to manage its private, expandable storage and backup services. http://www.verizon.com

U.S. Supreme Court Rules that States Can Bar Municipal Telecom

The U.S. Supreme Court overturned a lower court ruling in a case of whether the federal Telecommunications Act of 1996 can pre-empt state and local laws that expressly prohibit municipal bodies from offering telecommunications service.



In 1997, the General Assembly of Missouri passed legislation that barred political subdivisions within the state from offering telecommunications services. The Missouri Municipal League then petitioned the FCC for an order declaring the state law unlawful and preempted by the federal Telecom Act. The FCC refused to declare the state law preempted, although it denounced the Missouri law as a matter of public policy. The Missouri Municipal League then appealed to the Eighth Circuit court, which reversed the FCC decision.



The U.S. Supreme Court has now overturned the Eighth Circuit, allowing the Missouri state law that bars municipalities from offering telecom service to stand. http://www.supremecourtus.gov/

QUALCOMM Shows MSN Mobile Services

QUALCOMM and Microsoft introduced MSN Mobile services enabled through QUALCOMM's BREW solution for CDMA phones. Mobile operators that deploy MSN Mobile services for BREW can enable users to access MSN Hotmail and MSN Messenger services using a range of CSMA handsets.



Microsoft noted that there are currently more than 170 million active MSN Hotmail and 120 million MSN Messenger customers worldwide. http://www.qualcomm.com

Japan's KDDI Tops 1 Million ADSL Subscribers

Japan's KDDI has surpassed one million subscribers for its DION ADSL service. KDDI is offering a number of ADSL options, including a 40 Mbps service, a low-cost 1 Mbps service and a plan that bundles IP phone services.



In November 2003, KDDI launched "Sesame BB," a broadband content program aimed at families. http://www.kddi.co.jp

LSI Logic to Acquire Velio for $20 Million

LSI Logic will acquire Velio Communications, a start-up developing high-end networking silicon, for $20 million in cash. Velio supplies high-speed interconnect and switch fabric application specific standard products (ASSPs) to network systems companies. The product portfolio includes high-bandwidth data switch fabric, TDM STS-1 switch fabric and related SerDes devices, high-performance interconnect for SAN and engineering services. Velio is based in Palo Alto, California.



LSI Logic also announced the acquisition of the assets of privately held CrossLayer Networks, a provider of Gigabit Ethernet switch ASSPs. CrossLayer's highly integrated solution complements LSI Logic's existing 10/100 Ethernet Switching solutions targeted for Desktop Gigabit connectivity and networking. Financial terms of the CrossLayer acquisition were not disclosed. http://www.lsilogic.com
  • In December 2003, Rambus agreed to acquire certain high speed signaling assets from Velio, a start-up based in Milpitas, California. The deal, which was valued at under $13 million, includes related Velio's patent portfolio, the existing Velio licensing business, and a number of Velio personnel. Rambus said that by adding Velio's high-speed signaling technologies to its serial interface offerings, it would accelerate its ability to deliver advanced chip-to-chip interface solutions.


  • Velio Communications had raised over $95 million in three rounds of funding since its inception in October 2000. Investors included Redpoint Ventures, Sequoia Capital, Institutional Venture Partners, Global Catalyst Partners, Capital Research Group and HarbourVest Partners.