Wednesday, April 14, 2004

IDT Acquires Zettacom for Advanced Switching

IDT announced plans to acquire ZettaCom, a start-up based in Santa Clara, California that developed a terabit-class hybrid switching fabric and companion OC-192 traffic manager silicon. The deal was valued at approximately $35 million in cash and is expected to close by the end of April.



ZettaCom will form the basis of a new serial switching division at IDT which will develop standards-based products based on Advanced Switching and PCI Express architectures. Daryn Lau, former ZettaCom CEO and president, will head up the new serial switching division as the vice president and general manager.



IDT said the acquisition would help accelerate the industry's shift from proprietary to standards-based serial switching and bridging semiconductor solutions. The company is in the process of developing its technology and product roadmap and over time plans to add internal and external resources to strengthen the new division. The first series of products will be unveiled later this year.



Advanced Switching, originally spearheaded by Intel Corporation, is an emerging technology for chip-to-chip, blade-to-blade and backplane designs. Advanced Switching was created to overlay the core of PCI Express technology, adding transaction-layer capabilities to enable flexible protocol encapsulation, peer-to-peer transfers, dynamic reconfigurations, multicast as well as other capabilities. http://www.idt.comhttp://www.zettacom.com
  • In July 2003, ZettaCom secured $19.2 million in its third round of funding. The round, jointly led by Norwest Venture Partners (NVP) and Investcorp, includes both existing and new corporate and financial investors. ZettaCom has raised $77.7 million since its inception in 1999.


  • Advanced Switching is a switched interconnect and data fabric technology based on the PCI Express architecture for joining components and system boards in low-to-midrange communications and embedded applications. The PCI Express architecture, builds on the highly successful PCI standard, is designed as a general-purpose chip-to-chip interconnect technology. It uses the same physical and link layers as the PCI Express architecture. However, at the transaction layer, Advanced Switching is optimized to provide an array of specialized communications features, including high-availability functions, peer-to-peer and multicast networking, congestion and system management, scalability, and support for virtually any networking protocol. Intel said announced plans to adopt the proposed Advanced Switching specification into a wide array of its communication products, including network and storage processors, Ethernet controllers and chipsets that support embedded Intel architecture. Other companies active in this area include Agere Systems, Alcatel, Altera Corp., EMC Corp., Fujitsu Limited, Hitachi Ltd., Huawei Technologies, National Semiconductor, Nokia, Petalynx, OSE Systems, PMC-Sierra, Siemens AG, Sun Microsystems Inc., Synopsys Inc., TeraChip Inc., Texas Instruments Inc., Vitesse Semiconductor Corp., and Xyratex.

Fujitsu Supplies Optical Core for Verizon's Enterprise Advance

Verizon is using Fujitsu's FLASHWAVE 7600 regional WDM system, FLASHWAVE 7200 transponders, and FLASHWAVE 4500 core transport MSPP system for the nine regional rings in the national network serving its Enterprise Advance initiative. Fujitsu's FLASHWAVE 4500 MSPP platform was also used extensively throughout the network as a Multi-Service Provisioning Platform (MSPP) to provide advanced services, like Ethernet over SONET, and aggregate traffic generated from Enterprise Advance business. Verizon is also using Fujitsu's FLASHWAVE 4500 core transport system, the FLASHWAVE 4300 aggregation system and the FLASHWAVE 4100 access system in their regulated network. The FLASHWAVE 4000 products feature advanced data functionality and traffic grooming to enable a wide range of multiservice solutions for metro interoffice and access applications. http://www.fnc.fujitsu.com

Alcatel Introduces Open Media Suite for Triple Play

Alcatel introduced its Open Media Suite for delivery of rich media in a triple play service mix (voice, data, video). The Alcatel Open Media Suite is an end-to-end portfolio of products and professional services, encompassing user interface customization, integration with third party equipment such as set top boxes and digital video head ends, as well as facilitating negotiations with content owners and suppliers. The portfolio includes the 5950 Open Media Platform, the 5950 Open Media Applications and the 5959 Open Media Content Management and Delivery system, including the 5959 Open Video Server.



The Alcatel 5950 Open Media Platform is a software middleware platform for managing and delivering broadband applications such as Broadcast TV, Video on Demand and Personal Video Recording, Web browsing and e-mail as well as support for third-party applications, such as gaming. Alcatel supports a choice of head-end, network, and CPE components.



The Alcatel 5959 Open Video Server provides video streaming over broadband IP, xDSL, cable, fiber and satellite networks. The platform supports multiple encoding standards, including ISO MPEG-1, 2, 4, and porting of other streaming codecs.. http://www.alcatel.com

MCI and Qwest Set Framework for UNE Negotiations

MCI and Qwest Communications have agreed to hold transparent and mediated negotiations regarding access to the public telephone network. These open negotiations will be monitored by Cheryl Parrino, former Chair of the Wisconsin Public Service Commission and former CEO of the Universal Service Administrative Company. http://www.mci.comhttp://www.qwest.com

Covad and Qwest Sign Commercial Line-Sharing Agreement

Qwest Communications and Covad Communications announced the completion of a three-year commercial line sharing agreement that provides Covad with access to local lines in the seven states within the Qwest region. Line sharing allows communications providers to deploy DSL on the same line customers use for their voice phone services. The deal takes effect in October of 2004 when current federal line-sharing unbundling obligations are phased out. Financial terms were not disclosed.



"Today's agreement demonstrates that the economics of line sharing are beneficial to both parties and that commercial agreements can be negotiated for this service," said Charles Hoffman, president and CEO of Covad. http://www.covad.comhttp://www.qwest.com
  • Last week, SBC Communications and Sage Telecom, the third largest CLEC in SBC territory, reached a seven-year commercial agreement for SBC to provide wholesale local phone services to Sage covering all 13 states comprising SBC's local phone territory. The deal is the first to be announced since the FCC's call last week for the industry enter into negotiations to end local access disputes.


  • 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. Later, all five of the FCC Commissioners 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.

Qwest to Expand Web Hosting Facilities in California and Ohio

Citing growing customer demand, Qwest Communications is expanding its web hosting facility in Sunnyvale, California and re-opening its web hosting center in Columbus, Ohio. The expanded Qwest CyberCenter in Sunnyvale will be adjacent to the existing Qwest facility, creating one large complex for Qwest Web hosting in Northern California. The Columbus, Ohio CyberCenter is reopening to meet growing customer demand in the Midwest and required minimal capital investment because Qwest is using its existing facility. http://www.qwest.com

FCC Proposes Rules for 3650 MHz Wireless Broadband

The FCC initiated a proceeding to foster the introduction of wireless broadband operations in the 3650-3700 MHz band. In response to requests by wireless internet service providers (WISPs), the FCC proposed to allow unlicensed devices to operate in some or all of the 3650 MHz band with higher power than currently authorized.



The FCC is proposing that unlicensed devices be allowed to operate in all, or part, of the 3650 MHz band at higher power levels than usually permitted for unlicensed services, which should enhance the utility of unlicensed devices and services in rural areas. These devices also would be subject to smart (or cognitive) requirements and other safeguards designed to prevent interference to the licensed FSS earth stations now resident in the band. Fixed unlicensed devices, for example, would be subject to a professional installation requirement and would be prohibited from being located with a defined protection zone surrounding each FSS earth station. Non-fixed, unlicensed devices would be subject to "listen-before-talk" requirements that would detect the presence of any FSS earth station in the vicinity, and make an appropriate decision of whether to transmit and to make appropriate adjustments to the transmit power. Unlicensed devices would also be required to emit a standardized identification signal which would possibly provide contact information, as well as location. http://www.fcc.gov

FCC Adopts New Rules for RFIDs

The FCC adopted new rules that allow for the operation of improved radio frequency identification (RFID) systems for use in conjunction with commercial shipping containers. The FCC's rules permit RFID systems to be operated on a number of frequency bands, subject to limitations on their maximum signal level and transmission duration. The new order increases the maximum signal level permitted for RFID systems operating in the 433.5-434.5 MHz band to facilitate more reliable transmissions with greater range than the rules previously allowed. The 433 MHz band is available for unlicensed operation in many countries around the world, thus enabling manufactures to produce a single model of a device for use in both the United States and other countries. The Order also increases the maximum permitted transmission duration for these RFID systems from one second to 60 seconds, resulting in a sixty-fold increase in the amount of data that can be transmitted, thus facilitating the scanning of the contents of an entire shipping container. http://www.fcc.gov

TTI Telecom and T-Systems Join Forces on OSS

TTI Team Telecom International, a supplier of OSS and Business Support Systems (BSS) for telecom service providers and T-Systems, today announced the signing of a cooperation agreement whereby both companies will offer a joint solution to service providers in Europe and pursue joint sales and marketing activities. T-Systems is Europe's second largest IT service provider and a group division of Deutsche Telekom. http://www.tti-telecom.com

PMC-Sierra Sees Revenues Rise 11% Sequentially

PMC-Sierra reported Q1 revenue of $78.7 million compared with $70.6 million for Q4 of 2003 and $55.4 million for the same period a year ago. This represented an increase in revenues of 11.4 percent sequentially and 42.1 percent on a year-over-year basis. Networking revenues in the first quarter of 2004 increased 12.6 percent compared with networking revenues in the prior quarter. The Company did not have any non-networking revenue in the first quarter of 2004 compared with $0.8 million in non-networking revenue in the fourth quarter of 2003.



"PMC-Sierra recorded its fifth consecutive quarter of growth in revenues and profitability as we benefited primarily from improved service provider related spending," said Bob Bailey, president and CEO of PMC-Sierra. "We experienced a broad-based improvement in demand for our devices serving the broadband access, multi-service switching and metro transport markets."http://www.pmc-sierra.com

Hong Kong's City Telecom Leverages Cisco Optical Core

Hong Kong Broadband Network Ltd, a subsidiary of the City Telecom Group, has deployed a Cisco Optical Core network as the foundation for new digital pay-TV service. The deployment includes the Cisco ONS 15454 SONET/SDH Multiservice Provisioning Platform (MSPP); Cisco Catalyst 6500, Catalyst 4500, Catalyst 3350, and Catalyst 2950 series switches; and Cisco 2600XM Series routers. Cisco's ONS 15454 MSPP enables the carrier to converge its legacy voice and data services and its new pay-TV service into a single platform, and at the same time offer Layer 2 and 3 IP services using Resilient Packet Ring (RPR)-ready ML Series line cards.



The network enables HKBN to deliver up to 200 digital pay-TV channels via MPEG-2 at 4.5 Mbps to 10 Mbps with DVD visual quality. Its service also features interactive pay-TV elements and enables PC or TV connection with the aid of a set-top box.



The project was initiated in early 2003 by Macroview Telecom, a systems integrator in Hong Kong, and is expected to be completed by December 2004. http://www.cisco.com
  • In August 2003, Hong Kong Broadband Network Limited launched a pay-TV service, forming the third pillar of its triple-play strategy. The carrier already offers broadband Internet access and local telephony on the same network.


  • Also in August 2003, Hong Kong's incumbent carrier, PCCW Limited, launched its own pay-TV service delivered over its broadband ADSL network using IP multicast technology.

Intel Announces Next-Generation Audio Final Spec

Intel released its High Definition Audio specification (version1.0) for PCs, handhelds and other consumer electronics. Intel High Definition Audio is expected to replace the aging AC'97 specification developed nearly a decade ago. Higher-quality is made possible by an upgraded architecture and increased bandwidth that allows for 192 kHz, 32-bit, multi-channel audio. Audio input is enhanced with increased support for multi-channel array microphones, dynamically allocated bandwidth, and audio device configuration flexibility. The HD Audio architecture is aligned with Microsoft's Universal Audio Architecture (UAA). http://developer.intel.com

Western Iowa Telephone Deploys MetaSwitch

The Western Iowa Telephone Association has selected the MetaSwitch VP3500 to augment and eventually replace its existing legacy switches in eight exchanges serving residential and business customers in western Iowa. The MetaSwitch VP3500 is a next generation class 5 switch that offers support for VoIP, VoATM and GR-303, as well as advanced Web-based subscriber services. The platform scales from 400 to over 250,000 subscribers in a single rack. Vantage Point Solutions, Inc., a telecommunications engineering and consulting firm, provided engineering services for the Western Iowa Telephone project. Financial terms were not disclosed. http://www.metaswitch.com

C-COR to Acquire Lantern for 10 GigE and RPR Transport

C-COR.net announced plans to acquire all of the assets of Lantern Communications, a start-up developing metro optical packet-based transport solutions. Financial terms were not disclosed. C-COR anticipates that in fiscal year 2005 the Lantern acquisition will add approximately $20 million in net sales and contribute to earnings.



Lantern Communications, which is based in Sunnyvale, California, offers a Metro Packet Switch (MSP) system that incorporates advanced bandwidth management and QoS techniques to enable the delivery of deterministic services over an all packet edge infrastructure. The platform supports both 2.5 Gbps and 10 Gbps ring topologies. It also features an Ethernet VLAN stacking capability that enables a service provider to tunnel a customer's VLANs across the wide area, preserving the integrity of the customer's Ethernet traffic. Lantern was a founding member of the Resilient Packet Ring (RPR) Alliance. C-COR said it expects to use the platform as the foundation for a new generation of C-COR's digital video transport product line.



C-COR is a provider of optical, digital video transport, and RF telecommunication products; end-to-end fiber-to-the-premise systems; operation support software solutions; and high-end technical field services.



Separately, C-COR announced that its quarterly net sales will be between $58 and $58.5 million. The company also anticipates that diluted earnings per share will be somewhat higher than its previous guidance of $0.06 to $0.08. http://www.c-cor.nethttp://www.lanterncom.com
  • Lantern Communications was founded in early 1999 by Nasser Hiekali, a co-founder of CellAccess Technology, an ATM company acquired by FORE Systems in 1995; and Nader Vijeh, formerly a Director of Engineering and Principal Architect at FORE Systems.

BelAir Offers Optical Feed for Metro Scale Wi-Fi Networks

BelAir Networks, a start-up based in Kanata, Ontario, announced an optical line interface for feeding into a metro-scale Wi-Fi networks. BelAir Networks will offer two intermediate reach optical LIM interfaces compliant to the IEEE 802.3u 100BaseFX fast Ethernet standard.



The BelAir200 is a four-radio, modular platform available in multiple configurations that can be used to build Wi-Fi networks for a single private building or scale up to carrier grade, city-wide networks. The BelAir100 is a two-radio cellular LAN platform that accepts the same radio modules as the BelAir200 and can be used to terminate the mesh or as a mesh edge node. Both systems are designed for outdoor use and can be mounted directly on light poles in parking lots or city streets. http://www.belairnetworks.com
  • In March 2004, T-Venture, the venture capital arm of Deutsche Telekom AG, made a $2 million investment in BelAir Networks.


  • The BelAir Networks cellular LAN solution combines WLAN and cellular technologies. It integrates wireless access and a patented, multiple point-to-point mesh wireless backhaul in a single system to provide more coverage and capacity for data, video and voice services than current wireless networking options. The company has raised $24 million to date.


  • BelAir Networks is headed by Bernard Herscovich who previously was the President of Breezecom and Vice President of Wireless at Newbridge Networks.

Sovereign Bank Selects Lucent's Management Software

Sovereign Bank, one of the largest financial institutions in the U.S., has installed Lucent's network management software to support its network linking approximately 535 community-banking offices, nearly 1,000 ATMs, and about 8,300 employees throughout the northeast. The bank is using Lucent's VitalSuite Performance Management software system, to manage network and application performance for the multi-vendor network. The bank is also using Lucent's VitalQIP for Domain Name System (DNS), Dynamic Host Configuration Protocol and IP address management. http://www.lucent.com

PRIMUS Acquires Magma, a Canadian ISP

PRIMUS Telecommunications has acquired Magma Communications, an ISP serving corporate, government and residential customers in Toronto, Ottawa and Montreal. PRIMUS is paying approximately C$16 million (half in cash and half in stock) for 100% of the issued stock of Magma. The acquisition adds approximately 30,000 customers to PRIMUS Canada's existing Internet customer base of over 70,000. http://www.primustel.com
  • In January 2004, PRIMUS Canada introduced a consumer VoIP service for broadband users in Canada. Customers can select from Toronto, Ottawa, Hamilton, Montreal, Vancouver, Calgary and Edmonton local numbers.

DSL.net Names Buddy Pickle as CEO

DSL.net named Kirby G. "Buddy" Pickle as its new CEO, replacing company founder David F. Struwas who is resigning to pursue other interests. Pickle comes to DSL.net having completed the financial restructuring of Velocita Corporation, where he served as president and chief executive officer. Pickle also is a former president and chief operating officer for business-to-business data and telecommunications providers Teligent and UUNet Technologies. In addition, Pickle was one of the original senior leaders at MFS Communications, prior to its sale to WorldCom. http://www.dsl.net