Monday, June 28, 2004

Navini Raises $30 Million for Broadband Wireless Access

Navini Networks, a start-up based in Richardson, Texas, secured an additional $30 million in Series D funding for its non-line-of-sight, wireless broadband technology. Navini recently announced the expansion and opening of an office in China.



The new funding round was led by Lehman Brothers Venture Partners and include existing Navini venture investors Austin Ventures, Granite Ventures, Sequoia Capital and Sternhill Partners. Navini has now raised $115 million to date. http://www.navini.com/

Broadcom Offers Single Chip 802.11g Client/Router

Broadcom announced a new single-chip wireless LAN solution that it describes as the smallest and most cost-effective IEEE 802.11g solution on the market. The AirForce One 54g solution incorporates a high-performance 2.4 GHz radio, 802.11a/g baseband processor, medium access controller (MAC) and other radio components, reducing the size of typical Wi-Fi modules by 72%.



The new chip features built-in interfaces to GPRS, GSM and Bluetooth, which enables it to be used multi-band (WAN/PAN) devices such as smart phones,http://broadcom.com

NTELOS Upgrades Optical Transport with Tellabs

NTELOS, an integrated communications provider that operates in the mid-Atlantic region, is deploying the Tellabs 5500 NGX transport switch, the Tellabs 7120 NGX advanced transport node and the Tellabs 5320/L digital cross-connect. The equipment will be used for high-density bandwidth management and grooming. The Tellabs 5500 NGX transport switch is a metro edge device that integrates highly-scalable VT/STS (virtual tributary/synchronous transport signal) and M13 cross-connect technology, SONET transport, and highly-efficient data transport for Ethernet and Internet protocol (IP) traffic. The Tellabs 7120 NGX advanced transport node is an OC-192 next-generation SONET multiplexer that supports STS-1 cross-connect and Ethernet data transport capabilities. The Tellabs 5320/L digital cross-connect provides full non-blocking "any-to-any" connectivity for DS-1, E-1, STS-1e, and DS-3 interfaces and performs DS-0-level bandwidth management. Financial terms were not disclosed. http://www.tellabs.com

Tektronix to Acquire Inet for Communications Software

Tektronix has agreed to acquire Inet Technologies, a provider of communications software, for approximately $12.50 per share consisting of $6.25 per share in cash and approximately $6.25 per share in Tektronix' stock. After adjusting for Inet's $172 million cash balance as of March 31, 2004, the net purchase price is approximately $325 million.



Inet's products address next-generation networks, including 2.5G and 3G mobile data and voice-over-packet, and traditional networks. The company's "Unified Assurance" Solution and its diagnostics products help carriers manage their voice and data services at the network, service and customer layers. Inet is headquartered in Richardson, Texas and has 501 employees worldwide. It had 2003 sales of $104 million.



Tektronix said the acquisition will accelerate its delivery of products and solutions for network operators and equipment manufacturers seeking to implement next-generation technologies such as General Packet Radio Service (GPRS), Universal Mobile Telecommunications Systems (UMTS) and VoIP. Inet will become part of Tektronix' Communications and Video business. When combined with Tektronix' mobile protocol test business, sales from products addressing the network monitoring and protocol test markets are expected to exceed $200 million, making Tektronix one of the largest global providers of these solutions.



"Tektronix' strategy is to develop leadership positions in selected test, measurement and monitoring product categories that are large and growing. We believe that combining Inet with our mobile protocol business enables us to grow and enhance our leadership position in this market," said Rick Wills, Tektronix Chairman and CEO. http://www.tektronix.comhttp://www.inet.com/

3Com Commemorates 25th Anniversary

3Com Corporation is celebrating its 25th year in operations. The occasion also marks the one-year anniversary since it moved from Santa Clara, California to Marlborough, Massachusetts. http://www.3com.com

BigBand Closes CUDA Acquisition, Raises $25 Million

BigBand Networks closed its acquisition of the IP Cable Business Unit of ADC Telecommunications, including the Cuda and FastFlow product lines. The company also announced that it has completed a $25 million funding round. The financing brings the total amount of venture capital raised by BigBand Networks to more than $100 million. Investors included Charles River Ventures, Evergreen Investments, Meritech Capital Partners, Pilot House Ventures, Redpoint Ventures and Time Warner Ventures.



With closure of the acquisition, BigBand's product portfolio now includes:

  • the BMR (Broadband Multimedia-Service Router), a high capacity platform with support for services, including: digital broadcast grooming for control of SDTV and HDTV programming with RateShaping to maintain video quality at maximum bandwidth efficiency; standards-based splicing of local advertising and programming with precise geographic targeting; Gigabit Ethernet transport of high quality video including enhanced service reliability from redundant facilities; dense edge modulation of VOD and broadcast programming; and switched broadcast to dynamically provision live programming in response to real-time subscriber demand


  • the Cuda CMTS for DOCSIS-based video, voice and data services


  • the BME (Broadband Multimedia-Service Edge), a high-density platform that terminates local and distant transport links by optical or electronic Gigabit Ethernet, and directs the right on-demand and broadcast programming towards the right subscribers with robust QAM modulation and RF upconversion.

  • the BRE (Broadband Real-Time Encoder), which provides digital encoding of analog programming


  • the BigBand Management Server Suite, software to control implementation, scaling and ongoing management of BigBand Networks services.


  • the FastFlow Broadband Provisioning Manager, which automates configuration and activation of DOCSIS / EURDOCSIS cable modems, PacketCable / EURPacketCable multimedia terminal adapters, and CableHome residential gateways for IP video, voice and data services.
http://www.bigbandnet.com
  • BigBand Networks is based in Redwood City, California.

Juniper Delivers IPv6 VPN / Security Solution

Juniper Networks announced availability of its NetScreen ScreenOS, the company's standard security products operating system, with production-ready support for IPv6. The IPv6-enabled ScreenOS provides IPv6 support for both stateful inspection firewall and IPSec virtual private network (VPN) capabilities for the NetScreen-5XT, -204, -208, -500 and -5200 appliances and systems, an industry first according to the company. It also complements Juniper Networks' other IPv6-enabled networking products. http://www.juniper.net

Alcatel Shanghai Bell Secures US$500M Export Loan

Alcatel Shanghai Bell, has secured a US$ 500 million buyer's credit loan through the China Export Import Bank (China Eximbank). The loan will facilitate the company's export of telecom solutions, voice and data network components, and overseas investment.



Alcatel Shanghai Bell, which is already a leading telecom solutions supplier in China, has recently announced a series of customer wins in Africa. http://www.alcatel.com

Infineon Appoints New Head for Wireline Group

Infineon Technologies appointed Professor Hermann Eul to take over the helm of its Wireline Communications Business Group, replacing Thomas Seifert. Dr. Eul began his professional career with Siemens AG in 1991 after completing his studies in electrical engineering, joining the company's Telecommunications Infrastructure Division. http://www.infineon.com

Cisco to Acquire Actona for Enterprise WAN Link Caching

Cisco Systems agreed to acquire Actona Technologies, a start-up developing software that facilitates data management across geographically distributed offices, for approximately $82 million in cash. The Actona ActaStor file caching solution enables storage consolidation across the WAN.
The file caching system utilizes sophisticated caching, compression and network optimization techniques to ensure efficient operation of standard file system protocols (Windows/CIFS, Unix/NFS) over low bandwidth, high latency network links.



Cisco currently offers a Full Service Branch solution that combines WAN connectivity with advanced network security, IP voice communications, and business application and video acceleration services. Cisco said Actona's technology will augment that offering by expanding the functionality of Cisco's branch office access router portfolio with intelligent network services that enable WAN-optimized file transfer and access. In addition, Actona will extend Cisco's solutions for Data Center Storage Consolidation to the branch office. http://www.cisco.com
  • Actona was founded in 2000 and has 48 employees in Los Gatos, California and Haifa, Israel. The company is headed by Randy L. Ditzler, who previously was a founder, CEO and Director of Telegis Networks, a global provider of hosting and managed services. Actona was founded by Dr. Ilan Kessler (previously VP of Technology at Qualcomm and co-manager of Qualcomm Israel), Dr. Israel Ben-Shaul (previously a faculty member at the Technion), and Prof. Israel Cidon (a professor of Electrical Engineering at the Technion).


  • In March 2004, Actona Technologies announced $10 million in Series C funding, bringing its total equity investment to $23 million. The most recent round of funding was led by Mayfield and included participation from current investors Sequoia Capital, Evergreen Partners, and the Fantine Group.

Kingston Deploys Marconi's Softswitch

Kingston Communications has deployed eight fully-configured Marconi SoftSwitches, providing the foundation of a next-generation network while supporting its existing voice and Virtual Private Network (VPN) business. Kingston's SoftSwitch network consists of eight platforms connected in a meshed configuration but located in separate geographical zones to improve security and reliability. Initially, the operator is using its Class 4 SoftSwitch deployment to support its existing Time Division Multiplexing (TDM) network, providing features such as Indirect Access, Number Translation Services and Carrier Pre-Select. During the second phase Kingston will employ SoftSwitch's next-generation features to support new services as they evolve. Financial terms were not disclosed.



Kingston Communications is the first UK mainland operator to deploy Marconi's Softswitch. http://www.marconi.comhttp://www.kcom.com

Marconi Wins Four-Year £360 Million Contract with BT

Marconi has won a renewal of its cable services frame contract with BT estimated by the operator to be worth around £360 million over four years. The contract covers civil engineering, pole renewal and underground cabling works in England.



During 2003, Marconi Cable Services installed in excess of 3300 km of fibre, copper cabling and ducting for BT; as well as 20,000 telephone poles. http://www.marconi.com

Nortel Finalizes Outsourcing Deal with Flextronics

Nortel Networks reached an agreement with Flextronics regarding the divestiture of certain manufacturing operations and related activities in Calgary and Montreal (Canada) and Campinas (Brazil). It is also anticipated that Flextronics will acquire Nortel Networks manufacturing operations in France and Northern Ireland, subject to the completion of the required information and consultation process. Flextronics would also acquire Nortel Networks global repair services, as well as certain design assets in Ottawa and Monkstown related to hardware and embedded software design, and related product verification for certain established optical products.



The manufacturing outsourcing means that Nortel Networks will move towards a 100% variable cost structure for manufacturing, which the company said leads its major competitors. The company anticipates proceeds of approximately US$675--US$725 million in cash payments to be received in the fourth quarter of 2004 and during 2005 which is comprised of approximately US$475--US$525 million for inventory and equipment, dependent on the asset value at closing, and US$200 million for intangible assets relating to the design and engineering transfer.



As part of today's announcement, both companies would also enter into a four-year supply agreement for manufacturing services (whereby Flextronics will manage approximately US$2.5 billion of Nortel Networks annual cost of sales) and a three-year supply agreement for design services.



Approximately 2,500 Nortel employees would transfer to Flextronics. http://www.nortelnetworks.com
  • In January 2004, Nortel Networks first announced its plans to divest substantially all of its remaining manufacturing activities, including product integration, testing, and repair operations carried out at its facilities in Calgary and Montreal (Canada), Campinas (Brazil), Monkstown (Northern Ireland), and Chateaudun (France). At the time, Nortel confirmed discussions with Flextronics about the activities being considered for divestiture.


  • In June 2004, Flextronics announced plans to acquire Hughes Network Systems' entire ownership stake of fifty-five percent (55%) in Hughes Software Systems (HSS), a leading provider of software products and services to telecom infrastructure companies, for a total cash consideration of approximately US$226 million (Rs547 per share). HSS, which is based in India, provides convergent software solutions for fixed and mobile networks for both voice and data. Its products and services span a variety of domains, such as optical networks, wireless networks, satellite networks, switching systems, convergent networks and broadband networks. HSS' product portfolio includes protocol stacks and value-added frameworks and are comprised of licensable technologies focused on Voice over Packets (VoP), SS7, broadband and wireless (GPRS/UMTS) products that provide customers with open architecture solutions.

Nortel Networks Adds to its Enterprise Switching Line

Nortel Networks announced a number of enhancements to its convergence-ready data product portfolio, including three new BayStack Ethernet switches targeted at the SMB segment. Nortel said the switches are optimized to for latency-sensitive applications. A number of security enhancements are also being added to the BayStack products.



In addition, the company has bolstered the Nortel Networks Passport 8600 Routing Switches for the network core with new Routed-Split Multi-Link Trunking (RSMLT) capability. http://www.nortelnetworks.com

German Regulator Cuts Loop Access Charges

Germany's official Regulatory Authority for Telecommunications and Post (RegTP) announced two important decisions on charges for access to the local loop.



The first decision approved new one-off provisioning and termination charges, effective 1-July-2004. For the most frequently required variant, simple transfer of a two-wire copper pair without work at the end customer's, competitors will be required to pay a provisioning charge of EUR 47.97. The new fee represents a 15% drop from the previous rate and is 35% percent less than the charge Deutsche Telekom had filed for.



The second decision fixed the charges for shared access to the local loop, known as line sharing. From 1 July 2004 a monthly rental of EUR 2.43 will be payable for access to the higher frequency portion of the line, thus granting Deutsche Telekom's request.



Matthias Kurth, RegTP President, said "the significantly lower prices that today's decisions have brought about will further boost competition in the local market. In the last few months in particular, we have noticed a clear increase in the number of loop rentals."http://www.regtp.de/