CompTel/ASCENT Calls on FCC to Preserve Access to DS-1 Loops

The CompTel/ASCENT alliance published a letter to FCC Chairman Michael Powell asking the FCC to preserve access to DS-1 loops and DS-1 EELs as UNEs pending adoption of final rules. In the letter, CompTel/ASCENT notes that in the past, all 5 FCC commissioners supported continued availability of cost-based access to DS-1 loops because of overwhelming evidence of impairment. However, it is believed that the FCC is currently considering an automatic 15% price increase for existing DS-1 loops and DS-1 EELs that would go into effect in six months, even if the FCC has not issued final UNE-p rules in that timeframe. The CompTel/ASCENT alliance argues that such changes would be devastating for competitive carriers. http://www.comptelascent.org

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i-mode Users Outside Japan Exceed 3 Million

NTT Docomo reported that i-mode users of its alliance partners outside of Japan exceeded the 3 million mark as of the end of June. This announcement comes just four months after the figure reached 2 million. Services are currently available through eight i-mode operators outside Japan: BASE (Belgium), Bouygues Telecom (France), E-plus (Germany), Far EasTone (Taiwan), KPN Mobile (The Netherlands), Telefonica Moviles (Spain), WIND (Italy) and COSMOTE (Greece). Telstra also plans to offer i-mode services later this year. http://www.ntt.co.jp

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Corning Sells Frequency Control Business to Vectron

Corning agreed to sell its frequency control business to Vectron International, a supplier of crystal and Surface Acoustic Wave (SAW) products. Corning Frequency Control (CFC), part of Corning's telecommunications segment, was acquired in 2000 as part of Corning's purchase of Oak Industries. CFC designs and manufactures precision crystal oscillators, resonators, and filters that serve as stable frequency references for a broad range of wireless and wireline communications technologies. Financial terms were not disclosed. http://www.corning.com

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THUS Selects Nortel's Succession VoIP

THUS plc, a UK national alternate operator, has selected Nortel Networks' Succession VoIP communications portfolio. Specifically, THUS plans to deploy Nortel Networks Multimedia Communication Server 5200, Succession Communication Server 2000-Compact superclass softswitches and Nortel Networks Passport Packet Voice Gateway for toll quality voice. Financial terms were not disclosed.



THUS expects to offer a rich suite of next generation voice applications, enabling customers to customize their communications to fit individual needs and to consolidate services like teleworker and work phones onto a single number or address.



Separately, Thus announced an agreement to sell its Contact Centre business to Response Handling Limited (RHL), one of the UK's leading contact centre and customer management companies and a subsidiary of Murray International Holdings, one of Scotland's largest private companies. The Contact Centres provide outsourced inbound and outbound calling capability to a wide variety of major companies based in the UK. http://www.nortelnetworks.com

• In October 2003, THUS plc launched an MPLS-based VPN service using Ethernet as the access technology. THUS's MPLS IP VPN service is available with Ethernet connections at 10 Mbps, 100 Mbps and 1 Gbps. THUS operates a Cisco-powered MPLS network.

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CableLabs Issues 3 PacketCable Qualifications, One Certification

CableLabs awarded PacketCable qualification status to three companies and PacketCable certification status to one company that participated in its recently concluded Certification Wave 29. Motorola received certification for an embedded multimedia terminal adapter (E-MTA) and qualification for a PacketCable 1.1 cable modem termination system (CMTS). Qualification status for a media gateway (MG) was awarded to both AudioCodes and General Bandwidth.



The media gateway is a critical element in the PacketCable network architecture. It serves as an interconnection point where IP voice calls originating from a cable subscriber are terminated and handed off to the public telephone network. http://www.cablelabs.com

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Citizens to Use Cash Flow for Dividends, Replaces CEO

After a review of its financial and strategic alternatives, the Board of Directors of Citizens Communications determined that the best alternative for enhancing shareholder value is to capitalize on the company's strong free cash flow by returning significant cash to shareholders by paying a special dividend of $2 per common share and instituting a regular annual dividend of $1 per common share which will be payable quarterly. The company also reaffirmed its previously announced financial guidance for 2004, excluding the charges referred to below. The annual dividend of $1 per share represents a pay out of approximately 73% of expected free cash flow for 2004 excluding such charges and assuming conversion of all of the company's equity units and EPPICS (which would result in a total of approximately 338 million common shares outstanding, using the mid-point of the range of the conversion price of the equity units).

Separately, Dr. Leonard Tow has decided to step down from his position as chief executive officer, effective immediately, and resign his position as chairman of the board by the end of the year. The Board of Directors has named Rudy J. Graf, currently a director and former president and chief operating officer of Citizens, to serve as CEO and President on an interim basis. http://www.czn.net

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