ClearPath Delivers Enterprise VPN Appliance / Service

ClearPath Networks introduced the first in a line of enterprise-class network security appliances for the small and medium business (SMB) market. ClearPath, which operates a nationwide MPLS/ATM backbone, offers managed network services that can integrate access links from various third-party carriers and provide an end-to-end QoS environment.



The company's new Secure Network Access Platform "SNAP" provides a range of capabilities, including: Secure Site-to-Site VPN connectivity, remote access VPN, firewall protection, Intrusion Detection & Prevention, antivirus scanning, content filtering, and network management, monitoring & reporting.



The SNAP VPN appliance leverages the company's web-based management and monitoring tool, which provides the ability to track bandwidth utilization to and from the device, latency, packet delivery, and jitter intervals. In addition, network settings may be adjusted, in real-time, through a graphic user interface (GUI) that provides visibility and control over the network environment from any Internet-enabled web browser.



The first two members of the SNAP VPN family -- the 1200 and 1400 series -- support 10 users/10 concurrent encrypted VPN tunnels and 25 users/30 tunnels, respectively. ClearPath is also introducing SNAP VPN usage based pricing. Per user pricing starts at $49 per month, and is discounted as additional users are added. The SNAP VPN equipment starts at $595 for the 1200 series, and $895 for the 1400 series. http://www.clearpathnet.com

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France Telecom Adds 770,000 DSL Lines in Q1

As of 31-March-2004, France Telecom was serving over 4.1 million ADSL lines, up from 3.3 million at 31-Dec-2003 and up from 1.8 million at the same time in 2003. This represents nearly 770,000 additional ADSL lines activated during Q1 2004.



Of the 4.1 million total ADSL lines, Wanadoo was serving 2.042 million lines; third party ISPs were serving 1.618 million lines, and 456,000 were being delivered over unbundled local loops.



France Telecom's consolidated Q1 2004 revenues were EUR 11.45 billion, compared to EUR 11.4 billion for Q1 2003 on a historical basis (EUR 10.9 billion on a comparable basis). This represents a 4.8% increase on a comparable basis (0.6% on a historical basis).



The increase in revenues was attributed to Orange and Wanadoo, which recorded increases of 12.1% and 15.3% respectively, on a comparable basis, and 9.9% and 12.2% on a historical basis. Revenues for the Fixed, Distribution, Networks, Large Customers and Carriers segment experienced a limited decrease of 0.6% on a comparable basis and of 0.7% on a historical basis. Revenues in France from ADSL were EUR 239 million for Q1 2004 (excluding unbundling), compared to EUR 157 million for Q1 2003, an increase of more than 50%.



Revenues from Consumer Services recorded a decline of 3.1% on a comparable basis (a decrease of 3.2% on a historical basis). The impact of lower prices (calls from fixed to mobile phones; unlisted number service free of charge since August 2003) and the continued decline in market share are partly compensated by fast-paced growth in ADSL service in France (sales to Wanadoo France).



Business Services recorded a 4.3% decline in revenues on a historical basis (a decline of 4% on a comparable basis) due to a decrease in revenues from voice calls, reflecting increased competition, particularly the development of alternative local loops in dense areas. Meanwhile, the growth in volume of business networks has continued, accompanied by fast migrations to new technology: the number of IP VPN accesses has more than doubled in one year, and represented 28% of Business Internet accesses at 31-March-2004, compared to 16% one year earlier.



Revenues from Networks and Carrier Services increased sharply compared to Q1 2003, rising 12.4% on a comparable basis and 12.3% on a historical basis, compared to an annual decline of 0.3% in 2003. This significant improvement was due mainly to strong growth in the installed ADSL base in France (wholesale services for third-party ISPs and operators), as well as to the unbundling of telephone lines.



Equant revenues decreased 4.2% on a comparable basishttp://www.francetelecom.com

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Siemens SURPASS Softswitch Gains PacketCable Status

Siemens' Surpass hiQ 8000 softswitch was awarded the PacketCable 1.0 qualification by CableLabs. The Siemens Surpass hiQ 8000 softswitch successfully completed an extensive series of interoperability tests as a Call Management Server (CMS). The CMS functions as a softswitch in the PacketCable architecture and performs many critical functions necessary for voice communications, including connection management, implementation of subscriber features, and call accounting. http://www.siemens.com

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Scientific-Atlanta Adds Viewership Measurement to Set-tops

Scientific-Atlanta introduced new Operations Support System (OSS) featuring tools to help cable operators insight into consumers' viewership habits and for proactive monitoring of set-top and network performance at the subscriber's TV set. The new "Retriever" application also includes automated backup, disaster recovery, revenue assurance and VoIP launch applications.



The viewership measurement tool collects data based on the consumer's "clicks" of the set-top remote - every time a new channel is selected, the activity is logged at the set-top for eventual relay to the headend data collection server. Scientific-Atlanta said that in order to protect the consumer's privacy and operate within the boundaries established by the Cable Communications Act of 1984, its application can aggregate the set-top viewership data it receives into a trends-based report for geographic node areas or by zip code. The viewership data is encrypted and stripped of customer-specific information before it is sent to a headend server for aggregation. http://www.scientificatlanta.com

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New Specifications Support ATM at Edge of MPLS Cores

The ATM Forum has released two new specifications to help service providers leverage the benefits of ATM at the edge of their networks while deploying MPLS as part of their core network consolidation.



The new specifications enable ATM routing and signaling (PNNI and AINI) to be extended among ATM networks attached to an MPLS core, thus maintaining the availability and resource efficiency of ATM services. MPLS can thereby be used as a transport for the existing ATM traffic without potentially costly changes being made to the network edge.



The new specifications describe how to continue supporting current ATM SVC & SPVC services, and other services that depend on them, together with ways to support ATM Quality of Service.



The two new specifications are available for download on The ATM Forum website:



ATM-MPLS Network Interworking, Version 2.0 ftp://ftp.atmforum.com/pub/approved-specs/af-aic-0178.001.pdf

ATM-MPLS Network Interworking Signalling Specification 1.0 ftp://ftp.atmforum.com/pub/approved-specs/af-cs-0197.000.pdfhttp://www.atmforum.com

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Extreme and Avaya Meet DoD Interoperability Requirements

Extreme Networks and Avaya demonstrated an IP telephony solution that was rigorously tested by the DoD's Joint Interoperability Test Command (JITC). Testing by the U.S. Department of Defenses' Joint Interoperability Test Command (JITC) have determined that Extreme Networks' switching solutions, when combined with Avaya's media servers, gateways and the Avaya Communication Manager, met the critical interoperability requirements for certification and use by national defense agencies. JITC certification is required for all products that support voice, data or video communications connecting to the Defense Switched Network. The combined solution leverages Avaya's IP telephony and Extreme's high-performance IP data network infrastructures. http://www.extremenetworks.com/http://www.avaya.com

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CWA Union Members Vote SBC Strike Authorization

Members of the Communications Workers of America working at SBC Communications voted overwhelmingly to give CWA leaders authorization to call a strike if they deem it necessary. The union reported that 90% of the 100,000 CWA-represented workers at SBC voted in favor of the strike authorization.



Contract negotiations currently are underway covering SBC operations in 13 states: Connecticut, Ohio, Indiana, Illinois, Michigan, Wisconsin, Arkansas, Kansas, Missouri, Texas, Oklahoma, California and Nevada.



For a strike to take place, the next step would be for CWA's 18-member executive board to authorize President Morton Bahr to set a strike date. http://www.cwa-union.org

• Earlier this month, The Communications Workers of America issued a 30-day notice that its union members working at SBC Communications may go on strike if a new contract is not reached. CWA's local unions at SBC will begin the strike authorization vote among their members, with the results to be announced on April 29. If members vote to strike, the next step would be for CWA's executive board to authorize CWA's president to set the strike date.



• The union alleges that SBC is not addressing workers' concerns about employment security, noting that CWA members are seeking limits on excessive subcontracting as well as gaining access for workers to jobs in growth areas of the company. SBC is outsourcing thousands of jobs in such areas as call centers, DSL tech support and others. Much of this work is being sent by contractors offshore to India and other countries. Health care is another issue.

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BellSouth Rejects AT&T Proposal

BellSouth quickly rejected AT&T's UNE-p proposal, describing it as "a desperate attempt to perpetuate the regulatory scheme that was vacated by the D.C. Circuit Court on March 2, 2004."



BellSouth also announced the signing of long-term commercial agreements with three carriers including Dialogica Communications Inc., International Telnet and CI2 for the provisioning of wholesale local phone services throughout the nine-state BellSouth region. BellSouth further noted that since the FCC's call for the negotiation of commercial agreements, it has executed nondisclosure agreements with over 60 telecommunications carriers. These non-disclosure agreements set the framework for ongoing, private negotiations of commercial terms. http://www.bellsouth.com

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Foundry Networks Reports Revenue of $104 Million

Foundry Networks reported Q1 revenue of $104.0 million, compared to $91.1 million in the first quarter of 2003. Foundry earned net income of $19.9 million, or $0.14 per diluted share in the first quarter, compared to net income of $13.4 million, or $0.11 per diluted share, in the first quarter of 2003.



"We saw several positive signs during the quarter. Our domestic business improved, sales to the Federal Government remained strong and continued to represent more than 30% of our revenues, and most regions performed to our expectations. However, our revenues in Japan, which reached record levels in 2003, were below our expectations in the first quarter. We believe this was due to the timing of several service provider follow-on orders through our largest customer/reseller in Japan, Mitsui," said Bobby Johnson, President and CEO of Foundry Networks. http://www.foundrynetworks.com

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MCI Trims 2004 Earnings Guidance

MCI issued new financial guidance for 2004, saying it now expects to generate revenue at the lower end of previous guidance of $21 billion to $22 billion. In 2003, the company reported revenue of $27.3 billion, which included $3.0 billion from Embratel. MCI announced in March 2004 its plans to sell its Embratel interest and, accordingly, will classify Embratel as a discontinued operation in the second quarter of 2004. The projections for 2004 exclude the operations of Embratel. Some main points:

• revenue from the company's global, high-end enterprise and government markets businesses to decline approximately 7% versus 2003, outperforming the overall Business Markets segment, which remains exposed to a challenging wholesale pricing environment. Overall Business Markets revenue is expected to decline 12% to 14% compared to 2003 revenue of $14.1 billion.



• International revenue is expected to decline 2% in 2004, reflecting stable volumes in the Europe, Middle East and Africa region (EMEA), new entries into emerging markets and an assumed favorable effect of foreign currency exchange. In 2003, International revenue (excluding Embratel) was $3.9 billion. MCI continues to operate the largest facilities-based network, with the highest number of Company-owned points-of-presence of any international carrier.



• Mass Markets revenue is expected to decline 20% to 25%, reflecting the negative impact of Do Not Call legislation, increasing wireless substitution and ongoing pricing pressure. To offset these challenges, the company's Mass Markets group will continue to focus on U.S. local services and expects to launch a VOIP initiative this year. In 2003, MCI's Mass Markets revenue was $6.4 billion.



• capital expenditures for 2004 are expected to equal approximately 5% of revenue. MCI is expanding its MPLS footprint that supports the convergence of voice and data, as well as investing in network security products and advanced applications features.

Further details were also provided. http://www.mci.com

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Level 3 Reaffirms 2004 Business Outlook

Level 3 reported Q1 revenue of $899 million, compared to $988 million for Q4 2003. Communications revenue was $389 million versus $399 million for the previous quarter, and information services revenue was $494 million compared to the seasonally strong fourth quarter revenue of $565 million. The net loss for Q1 2004 increased to $147 million or $0.22 per share compared to a net loss for the previous quarter of $121 million or $0.18 per share. Included in the net loss for Q1 2004 was a $23 million gain on the sale of the company's remaining investment in Commonwealth Telephone Enterprises, Inc., or $0.03 per share. Included in the net loss for the previous quarter was a $37 million gain on extinguishment of debt and a $38 million tax benefit.



"Despite a challenging market environment, we are pleased with our market share gains and customer wins, including the government sector, as well as our improved operating margins in the first quarter," said James Q. Crowe, CEO of Level 3. "Consistent with the past few quarters, Level 3 continues to focus on launching new services and is gaining momentum in our addressable markets. We are encouraged by the initial response from our distribution partners and their customers, and expect to benefit from the continued migration of voice from traditional circuit-switched services to softswitch-based VoIP services."http://www.level3.comIn April 2004, Level 3 Communications 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.

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AT&T Proposes Roadmap to Facilities-based Competition

AT&T issued a public proposal to the each of the four Bell companies offering a new roadmap to facilities-based local competition. AT&T is proposing increases in the price of UNE-P by at least $3 in phases over the next 2 1/2 years so as to impose a financial penalty on competitors that continue to rely on UNE-P. In exchange, however, competitors would be able to obtain operational and economic access to "last-mile" loop facilities on terms that are reasonable and fair.



AT&T said it would support UNE-P price increases in exchange for reasonable reductions in the costs and necessary improvements in the provisioning required to support facilities-based competition. The framework also provides incentives for AT&T to accelerate deployment of its own facilities.



If the agreement is accepted, AT&T would enter into long-term commercial wholesale agreements with the Bell companies that will accelerate facilities deployment by addressing operational barriers associated with the provisioning of unbundled loops, increasing prices for UNE-P facilities, and reducing costs associated with the use of unbundled loops.



As part of its public proposal, AT&T also published a term sheet for negotiations. http://www.att.com

• FCC Chairman Michael Powell issued a statement applauding AT&T's effort to move forward on the contentious issue of access to local phone network elements. Powell stated "In the long run, the transition to facilities-based competition holds out the best promise of real benefit to America's telephone consumers."

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Spirit Telecom Selects Alcatel IP Service Router

South Carolina-based Spirit Telecom will migrate its data network to an IP/MPLS backbone using Alcatel's IP service router. Specifically, Spirit will use the Alcatel 7750 Service Router (SR) and the Alcatel 5620 network management portfolio to converge the carrier's national network onto a single network. Financial terms were not disclosed. http://www.alcatel.comhttp://www.spirittelecom.com

• Earlier this month, Alcatel unveiled a number of hardware and software enhancements for its Alcatel 7750 IP/MPLS edge routing platform, including a new hierarchical QoS model, greater scalability and support for VPLS, new traffic engineering capabilities, channelized DS3 and OC-12 interfaces, new CALEA capabilities, a new mid-range chassis, CWDM capabilities, and support for 1000BaseTX SFP.

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Verilink to Acquire Larscom

Verilink Corporation agreed to acquire Larscom for approximately 6 million shares of Verilink common stock, with each Larscom share being converted into 1.166 Verilink shares, subject to certain adjustments. The deal is valued at about $26.5 million.



Larscom offers a range of metro access products, including optical edge access multiplexers for both TDM and Ethernet over SONET, integrated access devices (IADs), inverse multiplexers and CSU/DSUs. Larscom is based in Newark, California.



Verilink provides customer premises voice and data access solutions to service providers, strategic partners and enterprise customers. Its product line encompasses voice over packet and voice over TDM IAD solutions including VoIP, VoDSL and VoATM. Data only offerings include access routers, probes, CSU/DSUs, DACS and network monitoring solutions. Verilink is based in Madison, Alabama. http://www.verilink.comhttp://www.larscom.com

• Earlier this month, Larscom announced a significant software upgrade for its Orion 7400 Ethernet over SONET (EoS) multi-service access platform. New capabilities include: 1) Ethernet "Q-in-Q" VLAN Tagging support, 2) Advanced Ethernet Performance Management for Service monitoring, and 3) Dynamic WAN bandwidth allocation using LCAS capability. Additionally, the Orion 7400 Release 2 software breaks new ground by providing a full suite of SONET performance parameters for its 10/100 and Gigabit Ethernet interfaces, enabling providers to support a variety of Service Level Agreements (SLAs) by utilizing performance reporting capabilities.



• In June 2003, Larscom acquired VINA Technologies, a start-up supplier of integrated access devices.

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