Monday, February 2, 2004

White Rock Supplies Next Gen Optical Transport for Telepak

Telepak Networks, a network service provider based in Mississippi, selected White Rock Networks to supply its VLX2020 Next Generation SONET and VLX1010 DWDM systems. The equipment is being used for a two-state expansion of Telepak's backbone transport network. The initial network, which spans over 500 miles, is a multi-wavelength design utilizing White Rock's VLX2020 OC-48/192 SONET add-drop multiplexer (configured with fully-tunable OC-192 optics), as well as White Rock's VLX1010 DWDM system. In order to meet the extended span distances, White Rock also supplied intelligent optical amplifiers as part of the overall solution. All elements of the network will be managed by White Rock's VLXpert Element Management System. Financial terms were not disclosed. http://www.whiterock.comhttp://www.telepaknetworks.com

European Commission Outlines Plan to Accelerate Broadband

The European Commission published a report underlining the importance of the electronic communication sector for the health of the European economy. The report singles out the implementation of the new regulatory framework for electronic communications, action to extend broadband coverage in underserved areas, stimulating demand and the successful role out of third generation mobile communications as top priorities. Some highlights of these four priority areas include:


Addressing regulatory challenges. Late or incorrect transposition by EU member states of the new regulatory framework for electronic communications is holding back competition and creating uncertainty. Infringement proceedings are underway against a number of EU member states who have failed to transpose the new measures.


Increasing broadband coverage in underserved areas. Each of the EU member states agreed to publish national broadband strategies that identify geographic areas that risk being placed in the slow lane of the information society because of insufficient demand to justify the roll out of broadband services. EU funding may play a role alongside action at a national, regional or local level.


Stimulating demand. While the majority of households in the EU can access broadband, only a fraction of them have chosen to do so. EU member states are urged to stimulate demand by bring more local and national government services online, such as health and education information. . This must be accompanied by further steps to address security, digital rights management and the interoperability of different services and devices.


Successfully launching 3G networks. There are currently around 500,000 3G subscribers spread across five EU member states. By the end of 2004 more than forty 3G networks should be providing commercial services.


The report can be found at: http://EURpa.eu.int/information_society/eEurope/2005/doc/highlights/whats_new/sector_com.pdfhttp://europa.eu.int/
  • In October 2003, The European Commission opened infringement proceedings against Belgium, Germany, Greece, Spain, France, Luxembourg, the Netherlands and Portugal for failure to implement the new EC framework for electronic communications in a timely manner. Member states of the European Union had agreed on the deadline of 24 July 2003 for the transposition of the main provisions of the new electronic communications framework into the national laws. As of 6 October 2003, seven countries had taken the necessary action to incorporate the Framework, Authorisations, Access and Universal Service Directives. These are: Denmark, Ireland, Italy, Austria, Finland, Sweden and the United Kingdom.


  • The new framework is designed for more ensuring more competitive markets and to accommodate converging electronic communications technologies.

Wanadoo Adds 382,000 Broadband Customers in Q4

Reflecting continued strong growth for DSL in Europe, France Telecom's Wanadoo division added 382,000 new broadband customers in Q4 2003 (including 131,000 in December), giving it a total of nearly 2.5 million broadband customers. The broadband net additions were 368,000 new ADSL service and 14,000 for cable modem Internet access. Broadband subscribers represented 26.8% of the Wanadoo customer base at year end, up from 23.3% 30-Sept-2003. Including narrowband, Wanadoo had 9.153 million Internet customers in Europe.

Wanadoo's regional breakdown, as of 31-Dec-2003, was as follows.

  • France: 1.816 million broadband customers, including 1.738 million ADSL customers. This represents an increase of 252,000 customers in Q4


  • UK: 158,000 broadband customers, up by 35,000 in Q4


  • Spain: 190,000 broadband customers, up by 42,000 in Q4


  • The Netherlands: 289,000 broadband customers, up by 54,000 in Q4
http://www.francetelecom.com/

Level 3 Offers New Technical Field Support Service

Level 3 Communications is offering a new technical field support service for its colocation and dark fiber customers in the U.S. and Europe. The services are provided exclusively by Level 3 technicians 24 hours a day across the entire Level 3 network footprint, including on-net customer-controlled facilities. Level 3 said a European PTT and the Corporation for Education Network Initiatives in California (CENIC) were among the initial customers of the (3)Tech service. http://www.level3.com

Zhone Acquires the Softswitch Assets of Gluon Networks

Zhone Technologies acquired the assets of Gluon Networks, a start-up based in Petaluma, California for approximately $7.0 million. Gluon had been developing next-generation converged switching systems for service providers.


Gluon's Converged Local Exchange (CLX) platform includes a switching and signaling gateway interface, supporting both North American and international standard variants. In addition to complying with federally mandated capabilities such as CALEA, LNP, and E911, the CLX supports Class 5 services, including Custom Local Area Signaling Services (CLASS), GR-303, TR-08 and direct host or remote-based copper termination for plain old telephone service (POTS). http://www.zhone.com
  • Gluon Networks had previously disclosed more than $76 million in venture funding since its formation in late 1999. Investors included JP Morgan Partners, New Enterprise Associates and U.S. Venture Partners.

Sprint Reports Wireless Growth, Improving Top-line Performance

Sprint PCS added over one million net customers in Q4, consisting of 390,000 net direct customer additions combined with 640,000 new customers from its wholesale and affiliate partners. As of the end of the year, Sprint PCS was serving a total of 20.4 million customers, an increase of more than 2.6 million, or 15%, from a year ago.


Driven by the wireless growth and other key metrics, Sprint reported Q4 operating revenues of $6.681 billion, up 2% compared to a year earlier. Net income for the fourth quarter was $38 million versus net income of $39 million for the same period last year. At year-end 2003, Sprint's cash on hand was $2.4 billion. Net debt was cut by $392 million and now stands at $16.7 billion.


Some additional highlights from the quarterly report:

  • Sprint's Local Division surpassed 300,000 DSL subscribers as of 31-Dec-2003


  • At the end of Q4, 66% of Sprint's local consumer customers have one or more services, such as long-distance, DSL, Sprint PCS wireless service or a premium package of vertical services.


  • During Q4, Sprint's Local Division successfully converted 20 additional switch complexes to packet technology and had converted a total of nearly 130,000 lines by the end of the year.


  • Total business revenues, including wholesale and affiliates, declined 3% from the year-ago period, but were up 1% sequentially. Consumer revenues were down 19% from the year ago period, and declined 7% sequentially.


  • Revenue declines in consumer long-distance are beginning to be partially mitigated by growing competitive local service revenues from Sprint Complete Sense. This revenue source surpassed $100 million for the year.


  • In Q4, total voice revenues decreased 8% compared to the year-ago period and 2% sequentially.


  • Data revenues increased 2% from the year-ago period but declined 1% sequentially. Compared to the year ago period, growth in Frame Relay, private line and managed network services was partially offset by lower ATM revenues. IP revenues declined 3% compared to Q4 2002.


  • During Q4, Sprint PCS experienced strong demand for data services, adding nearly 600,000 net new and existing customers for its PCS Vision services. At the end of the period, more than 3.2 million customers were subscribing to PCS Vision and more than 2.2 million customers subscribed to the company's first generation data services. Combined, more than a third of the direct customer base are now subscribing to data services. For the full quarter, data contributed nearly 5% to overall ARPU.


  • During Q4, Sprint PCS made substantial progress in deploying network capacity and enhancing network quality. Capital spending in the quarter was $939 million, bringing the full-year investment to $2.15 billion.


  • Sprint PCS added approximately 1,800 cell sites in 2003.
http://www.sprint.com

MCI to Deploy Movaz Optical Gear across its Global Network

MCI awarded a multi-year Global Master Purchase Agreement covering the rapid deployment of Movaz Networks' next generation optical transport solutions across its global network. Financial terms were not disclosed.


Movaz Networks' optical portfolio consists of the RAYstar, an integrated wavelength transport and switching platform, the RAYexpress flexible OADM which can be configured in both DWDM and CWDM configurations, and the RAYextender amplifier family for regional multi-span all optical reach. Software intelligence is provided through a fully integrated GMPLS optical control plane, supporting automated path setup and dynamic reconfiguration, as well as a graphical management system, the RAYtracer.


MCI began field deployment of the Movaz RAY product suite in 2002 and is already carrying live traffic in major metropolitan regions for a variety of applications including carrier-to-carrier, enterprise and core infrastructure applications. http://www.movaz.com

TI Unveils 6.25Gbps CMOS Serial Link Technology

Texas Instruments introduced its first 6.25 Gbps CMOS serial link product. The device has eight 6.25Gbps bi-directional serial data channels on the sharp end and sixteen 3.125Gbps serial data channels on the blunt end, providing 100 Gbps data throughput. TI said its design could extend the life span of today's XAUI (10G Ethernet) backplanes by increasing port densities, thus preserving technology investments made by the system manufacturers. http://www.ti.com

Sprint's Local Phone Division Teams with EchoStar

Sprint and EchoStar announced a marketing and sales agreement to provide DBS service to Sprint's Local Telephone Division customers. Sprint will sell the DISH Network services in 18 states where it is the incumbent local telephone provider. Customers can add DISH Network programming to their Sprint bundle by making one call to Sprint. http://www.sprint.comhttp://www.echostar.com

Equant Holds its Revenues Steady in 2003

Equant reported full-year 2003 revenues of $2,949 million, in line with the company's financial guidance and approximately 1% below 2002. Network Services direct revenues grew by 8.3% and now represent 46% of the company's total revenues. Revenues from SITA were $641 million in 2003 declining from $714 million in 2002, mainly due to the expiry of the minimum revenue commitment. Full results are expected on 11-February-2004. http://www.equant.com

Charter Expands VoIP Deployments with ARRIS

Charter Communications placed new orders for ARRIS' Cadant C4 Cable Modem Termination System (CMTS), Touchstone Telephony Modems and G2 IMS Management Platform. Charter launched VoIP in its Wausau, Wisconsin network a year ago using ARRIS equipment and currently serves 3,000 customers with primary line PacketCable Telephony over IP. The new shipments of ARRIS VoIP equipment are scheduled to be deployed in two additional markets. The deployments are expected to result in the addition of tens of thousands of carrier-grade VoIP lines during 2004. Financial terms were not disclosed. http://www.arrisi.com

ARRIS Posts Revenue of $128 Million, up 13% Sequentially

ARRIS reported Q4 revenues of $127.8 million, 13% sequentially. There was a GAAP net income (loss) was $(8.4) million or $(0.11) per share. Revenues for the full year 2003 were $434.0 million, down $217.9 million from the 2002 level of $651.9 million.


Broadband product revenues were $87.3 million in the fourth quarter up 16.4% from the third quarter 2003 level of $75.0 million. Supplies product revenues were $40.5 million in the fourth quarter, up 6.3% compared to $38.1 million in the third quarter of 2003. http://www.arrisi.com

Cisco Reports a 6% Sequential Rise in "Solid" Quarter

Reflecting a strengthening market for networking equipment, Cisco Systems reported continued sequential and year-over-year growth in revenue and net income. Quarterly sales were $5.4 billion, an increase of 14.5% compared with $4.7 billion for the same period a year earlier and an increase of 5.8% compared with $5.1 billion for the preceding quarter. Net income was$1.3 billion or $0.18 per share. Some highlights of the quarter for Cisco:

  • Product sales were approximately $5.4 billion while service sales were $848 million


  • Routers represented 26% of sales compared with 25% a year ago; switches represented 39% compared with 42% a year ago; advanced technology products represented 15% compared with 10% a year ago; services represented 16% compared with 17% a year ago


  • Regional sales breakdown was: U.S. 45%, EMEA 30%, Asia/Pac 12%, Japan 7%, Americas International 6%


  • Product gross margins were 68.7%


  • Cisco generated $1.7 billion in cash flow from operations and now has $19.8 billion in cash and investments on hand.


  • Employee headcount at the end of the quarter was 34,093 compared to 34,987 a year ago


  • Linksys revenues were up 39% sequentially


  • Storage revenues were up 70% sequentially


  • Security revenues were up in the high single digits sequentially


  • Enterprise IP telephony orders were up 20% sequentially


  • Optical revenue was up over 10% sequentially


  • Cisco CEO John Chambers maintained his "cautiously optimistic" view about future directions of the market.
http://www.cisco.com

CIENA Trims Financial Guidance

CIENA lowered its financial guidance for its fiscal quarter ended 31-January-2004, saying it now expects to report revenue of approximately $66.4 million for the quarter. CIENA expects that under Generally Accepted Accounting Principles (GAAP), its loss per share for the fiscal first quarter will be reported in a range of $0.17. The company attributed the change in guidance to the timing associated with a single order. Full results will be reported 19-February-2004. http://www.ciena.com