VoiceGenie and Data Connection offer VoiceXML-based Unified Messaging

VoiceGenie Technologies is collaborating with Data Connection to offer service providers a VoiceXML-based Unified Messaging solution based on commodity hardware. The co-marketing and technology partnership combines VoiceGenie's " NeXusPoint" VoiceXML-based framework with Data Connection's "MailNGen" next-generation messaging solution. NeXusPoint is an open, VoiceXML-based framework for the development, deployment and hosting of sophisticated speech or touch-tone services. MailNGen is a flexible, modular multimedia messaging solution providing a range of voicemail, email, webmail and fax message services through a single mailbox universally accessible from the phone or the desktop. The two companies reported that extensive testing of the joint offering has been successfully concluded. http://www.dataconnection.comhttp://www.voicegenie.com.

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KT Selects Redback's Next Gen SmartEdge

KT has selected Redback Networks' SE800 SmartEdge Service Gateway platform for managing broadband subscribers and services. KT has already deployed platforms from Redback for a significant portion of its existing ADSL networks and now plans to utilize Redback platforms in its expanding VDSL, Wi-Fi, and metro Ethernet networks. Redback's next-generation SmartEdge Service Gateway platforms with its NetOp Policy Manager will provide advanced subscriber management and edge routing functionality supporting KT's value-added services, including managed/integrated URL filtering offerings today and integrated home surveillance, tiered bandwidth and time-limit based services in the future. Financial terms were not disclosed. http://www.redback.com

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Siemens Offers Dual Stack Broadband Client for IPv4 and IPv6

Siemens Subscriber Networks announced dual stack IPv4/IPv6 functionality for its tango Access broadband client software for Windows. The end-user software client gives broadband service providers the flexibility to begin deploying IPv6 over their existing Point-to-Point Protocol over Ethernet (PPPoE) infrastructure. Siemens said its dual stack software approach is transparent to subscribers, except that their access to such advanced broadband services as video-on-demand, IP television, video conferencing, voice and video telephony and multiparty online gaming may be enhanced.



The Siemens tango software suite has more than 15 million installations worldwide. The company believes its dual stack architecture for the "Access" module can help to unlock the availability of IPv6 for mass markets. http://www.usa.siemens.com

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Cox Digital Telephone Receives J.D. Power and Associates Award

Cox Communications received the highest honor in the West in J.D. Power and Associates' 2004 Residential Local Telephone Customer Satisfaction Study for overall customer satisfaction. The local telephone service study rated overall customer satisfaction based on six factors: customer service, billing, performance and reliability, company image, cost of service and offerings and promotions.



In a separate study, Cox's bundled customers nationwide also ranked Cox highest for customer satisfaction in J.D. Power and Associates' 2004 Residential Long Distance Telephone Service. http://www.cox.com

• Cox first launched telephony service in Orange County, California in 1997. Since then, the company has expanded its telephony footprint to 12 additional markets and grown to become the 12th-largest telephone company in the country, with 1.1 million circuit-switched telephone customers over its cable infrastructure.

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Nortel Networks Joins Texas A&M Research Project on E9-1-1 for VoIP

Nortel Networks has joined a Texas A&M University research project focused on Enhanced 9-1-1 (E9-1-1) access for next generation Internet Protocol (IP) networks. The company has donated its Multimedia Communication Server (MCS) to the Texas A&M research project, which looks at what the industry has identified as the future 'third stage' of E9-1-1 deployment - emergency communications in a pure-IP environment.



Nortel Networks said the technology for E9-1-1 was originally designed for the traditional circuit-switched telephone network in which the telephones remain at a fixed location. In March, FCC Chairman Michael Powell urged the telecommunications industry to make the development of a nationwide VoIP E9-1-1 solution a top priority. Nortel Networks initially responded by submitting a detailed proposal to the National Emergency Number Association (NENA) to address key technology challenges.



NENA has outlined a three-stage approach to resolving VoIP E9-1-1 issues. In its submission to NENA, Nortel Networks proposed a solution for the second stage - implementing a VoIP E9-1-1 solution that works with existing circuit-switched interfaces already deployed in the network. Mark Lewis of Nortel Networks is the leader of the NENA VoIP migration working group which focuses on migration of the current 9-1-1 network from TDM to VoIP.



In this new research project, Texas A&M will be focused on the third stage - E9-1-1 in a pure-IP environment, using Nortel Networks MCS system in the public safety answering points (PSAPs). The project scope includes creating a vision for the future of E9-1-1 and conducting a practical trial. The trial is scheduled for the first quarter of 2005.



Texas A&M is the official VoIP lab for the Internet 2 community, a consortium of 206 universities working in conjunction with the industry and government to develop advanced network applications. This research project has received funding from the 911 board of Texas and the State of Virginia. In addition, Texas A&M has applied for a grant from the National Telecommunications and Information Administration (NTIA), a Presidential advisory agency. http://www.nortelnetworks.com

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Lucent Reports Results for Third Quarter of Fiscal 2004

Lucent Technologies reported revenues of $2.19 billion for its third quarter of fiscal 2004, essentially flat sequentially and an increase of 11% from the year-ago quarter. The company recorded revenues of $2.19 billion in the second quarter of fiscal 2004 and recorded $1.96 billion in the year-ago quarter. Lucent reported net income of $387 million or 8 cents per diluted share, including several one time items that had a positive impact of about 4 cents per diluted share.



Some highlights for the quarter:

• On a sequential basis, revenues in the United States increased 7% to $1.4 billion, and revenues outside the United States decreased 10% to $785 million. Compared with the year-ago quarter, U.S. revenues and revenues outside the United States increased by 17% and 3%, respectively.



• Integrated Network Solutions (INS) revenues for the third quarter of fiscal 2004 were $715 million, a decrease of 3% sequentially and 12% compared with the year-ago quarter.



• Mobility Solutions revenues for the third quarter of fiscal 2004 were $986 million, an increase of 4% sequentially and 58% compared with the year-ago quarter.



• Overall gross margin for the quarter was 43% of revenues, which was the same as the gross margin rate for the second quarter of fiscal 2004.



• Operating expenses for the third quarter of fiscal 2004 were $598 million as compared with $623 million for the second quarter of fiscal 2004.



• As of June 30, 2004, Lucent had about $4.7 billion in cash and marketable securities, which represents an increase of more than $100 million from the previous quarter.



• Going forward, Lucent expects its annual revenues to increase on a%age basis in the mid-single digits for the 2004 fiscal year.

http://www.lucent.com

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Tellabs' Q2 Revenue Grows 30% to $304 Million

Tellabs reported Q2 revenue of $304 million, up 30% from $234 million in the second quarter of 2003. On a GAAP basis, Tellabs earned 12 cents per share or $50 million in the second quarter of 2004. Excluding net restructuring and other charges of one cent per share or $3.5 million, Tellabs' earnings were 13 cents per share or $53 million. Some highlights:

• Transport -- Revenue from transport systems, the company's core products, totaled $161 million, up 74% from $93 million in the second quarter of 2003, primarily driven by strong wireless demand.



• Managed Access -- Revenue from managed access systems was $76 million, down 10% from $85 million in the second quarter of 2003, primarily a result of lower sales of circuit-based cable telephony.



• Broadband Data -- Revenue of broadband data products was $2 million. The company recently introduced the Tellabs 8600 managed edge system, which shipped to its first customer this month.



• Voice Quality Enhancement -- Revenue from voice-quality enhancement and other systems amounted to $24 million, up 36% from $18 million in the second quarter of 2003.



• Services and Solutions -- Services and solutions revenue was $41 million, up 4% from $39 million in the second quarter of 2003.



• The company's proposed acquisition of AFC is on track.

"Continuing strong demand for our products, combined with the benefits of restructuring and expense control, are driving growth and profitability at Tellabs," said Krish A. Prabhu, Tellabs president and chief executive officer. "We are making solid progress in new product development and customer fulfillment, which will strengthen Tellabs' position as a strategic, global supplier leading the industry shift to broadband."http://www.tellabs.com

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Sprint Sees Continued Momentum in Wireless

Sprint reported higher revenue, earnings and free cash flow driven by wireless customer growth. Some highlights:

• Sprint Wireless posted year-over-year revenue growth of 17% and reported a 19% increase in Adjusted EBITDA.



• Wireless ARPU was $62, a modest increase over both the year-ago period and the first quarter.



• PCS also continued to achieve solid subscriber gains with the total base increasing by 897,000 subscribers in the quarter. The subscriber gains included 505,000 direct additions and 392,000 additions from our wholesale and affiliate partners. Sprint also acquired 91,000 subscribers from an affiliate during the quarter. This acquisition is not reflected in either direct or affiliate additions.



• Wireless churn was 2.3% this quarter compared to 2.4% a year ago, and 2.9% in the first quarter of 2004.



• At the end of the period, nearly 6.9 million subscribers were using Sprint PCS data services, including five million Sprint PCS Vision subscribers. For the full quarter, data contributed over 7% to overall ARPU.



• Sprint local reported steady revenues. The company continues to expand its DSL footprint and now more than 5 million of its 7.8 million local access lines now DSL ready.



• Sprint local added 34,000 new DSL customers in the quarter and ended the period with a total base of 383,000.



• Sprint local total access lines declined 2.4% from the year-ago period. At quarter end, 54% of Local's residential customers were also using Sprint long-distance services and 45% were enrolled for a premium package of vertical services.



• Sprint long distance reported a revenue decline of 7%, which is again expected to be well below the rate of decline reported by other backbone competitors. Although Long distance profitability was impacted by pricing pressures in the quarter, Adjusted EBITDA* exceeded capital spending by more than $190 million and year-to-date the excess is nearly $480 million.



• In the quarter, total voice revenues decreased 6% from the year-ago period and 2% sequentially. Compared to the year-ago period, consumer voice revenues declined 15%, while business voice revenues, including wholesale and affiliates, declined by 4%. The decline in consumer is mainly driven by lower volumes, while the business decline is due to lower pricing.



• Data revenues decreased 6% from the second quarter of 2003 and 3% sequentially. In the quarter, Frame Relay and Private Line services declined compared to both the year-ago period and sequentially, while ATM and Managed network services increased. In the quarter, dedicated IP revenues were flat year-over-year and declined 4% from the first quarter. Overall IP revenues continue to be impacted by declining dial IP usage and Sprint's exit from the Web Hosting business.



• Sprint's overall net operating revenues were $6.869 billion, up by 6.3% compared with $6.463 billion for the same period last year.



• Fully diluted earnings per share on a GAAP basis were 16 cents versus break- even earnings in the second quarter of 2003.



• Free cash flow totaled $692 million and year-to-date free cash flow is $934 million.

http://www.sprint.com

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PointOne Provides Enhanced Network Access to 20,000 SIPphone VoIP Users

PointOne is providing the SIPphone network with local inbound access from the PSTN. SIPphone, which is the new company from MP3.com and Lindows founder Michael Robertson, has been providing its customers with a no-monthly-fee service to connect to other SIP-based phones. SIPphone previously enabled its customers to call PSTN numbers. Now PSTN users in 18 major markets will be able to dial into local numbers to make connections to SIPphone users who may be anywhere in the world, utilizing the IM Connect -- Instant Messenger Connect -- function of the PointOne Global Bridge network.



In the coming weeks SIPphone is also gearing up to provide a service in conjunction with PointOne that will allow customers to have dedicated phone numbers that they can take with them as they travel and connect from any broadband connection worldwide. http://www.pointone.comhttp://www.sipphone.com/

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Agere's Revenues Rise 7% Sequentially, Announces Reorg

Agere Systems reported quarterly revenues of $495 million, up 9% over the year-ago quarter, and 7% sequentially, driven by growth in sales of chips for mobile phones and wireless infrastructure, as well as an increase in revenues from intellectual property licensing. The company reported a GAAP net income of $2 million or breakeven per share, compared with the year-ago net loss of $78 million or $0.05 per share.



The company also announced it will simplify its organization structure to focus more sharply on its four key markets: mobility, storage, enterprise and networking, and telecommunications. The reorganization eliminates the Infrastructure Systems and Client Systems structure, which removes a layer of management.



The Mobility division, which will include the company's mobile phone, Wi-Fi, voice over IP and mobile entertainment device ICs, will be led by Luc Seraphin, who has spearheaded the company's growth in mobile phones. The Storage division will continue to be led by Joe O'Hare, who has expanded Agere's storage IC leadership into one-inch drives. Enterprise and Networking will include custom solutions, modem ICs and computer I/O products and will be led by Necip Sayiner, who has successfully grown the company's custom silicon business. Telecommunications, which will include all standard solutions for wireless and wireline infrastructure, will be led by Denis Regimbal, who has extensive experience in programmable devices and DSPs. http://www.agere.com

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Comcast Enters Broadband Content Deal with ABC News and Disney

Comcast, ABC News, and the Walt Disney Internet Group (WDIG) announced a wide-ranging broadband content distribution deal for Comcast's 5.7 million cable modem subscribers. Under the deal, ABC News on demand video and ABC News Live, 24/7 live streaming news programming will be available to Comcast's cable modem customers at no additional cost to the end user. Comcast also plans to launch an online Kids Channel using Disney's content for kids aged 3 to 1. http://www.comcast.net

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Catalyst Keynote: Network and Telecom Strategies, New Rules

Disruptive IP technologies have reached critical mass and, as a result, enterprise networks are increasingly being affected by consumer/residential trends, according to Dave Passmore, Research Director at the Burton Group. Speaking at the Burton Group's Catalyst 2004 Conference in San Diego, Passmore outlined five new rules to help enterprise network managers understand and benefit from these trends.



Five New Rules

• 1. Telephony will be assimilated into the network. For instance, voice is already being integrated into SIP-based instant messaging. IM buddy lists will become the directory, and eventually, no phone numbers will be need.



• 2. Wireless broadband access will be everywhere -- including ubiquitous 802.11 WLANs, 2.5G/3G/4G mobile data, WiMax, Bluetooth personal-area networks, etc.. There will also be UWB, ZigBee, self-organizing meshes, software-defined radios, RFID, and other forms of wireless connectivity. One outcome of all this activity will be a devaluation of spectrum.



• 3. IP network globalization is unstoppable, with exponential growth of broadband now occurring worldwide. China already has more DSL users than any other country with over 14 million. And because the decentralized architecture of the Internet requires no central control or authority, government efforts to restrict Internet use and content are likely to fail.



• 4. Empowered network users are driving change. Networks used to be administered in a top-down fashion. But now, users choose and deploy their own applications, as seen in P2P file sharing, Skype, SIP-based calling and online gaming. Endpoint encryption is being routinely applied, giving more power to users.



• 5. Separation of Content from Transport, which permits 3rd parties (such as Vonage) to host services. Yet technology permits transport providers to block or rate-limit specific types of network traffic, filter spam and viruses. This is leading to a technological "arms race" between carriers and content/service providers.

Based on these five new rules, Passmore predicts that enterprise networks will see a much wider choice of service providers for network transport, network-based applications and content.



Regarding enterprise WAN connectivity, Passmore expects that increasing numbers of businesses will ask themselves whether the public Internet is now good enough for interconnecting their sites, especially since the price per unit of Internet access bandwidth is typically 10X-100X less than Frame Relay. Because not many applications require guaranteed SLAs and since most ISP networks are now over-provisioned, he expects that Internet services substitution using encryption and VPNs will become a realistic alternative for many enterprises and network applications. For more demanding applications, he also expects there will always be a market for premium VPN services independent of the public Internet. In planning future WAN infrastructure or services, Passmore said the old advice still holds true: "don't ever bet against Ethernet or IP."http://www.burtongroup.com

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