Monday, September 6, 2004

Intel Sets Sights on WiMAX, Digital Home Initiatives

Intel's corporate strategy will increasingly focus on the convergence of computing, communications, and content technologies, said Paul S. Otellini, company president and COO, speaking at the Intel Developer's Forum in San Francisco. We will soon be approaching two new inflection points for the industry, predicted Otellini: pervasive broadband through WiMAX and pervasive parallelism at the processor level. Both of these trends ride onto top of Moore's Law, which continues to move the industry forward. By next year, Intel expects that greater than 90% of notebook computers will ship with Wi-Fi built-in. Intel is looking for the same viral effect with WiMAX, beginning in 2006. Otellini predicts that WiMAX could become to DSL and Cable what cellular is to wireline voice service -- a cheaper alternative that brings about pervasive utilization.



For Intel, another interesting industry barometer is the "Digital Effect", whereby the total amount of digitized content (music, photos, videos) on home and office PC is accelerating at rate significantly exceeding Moore's Law. Otellini said Intel's next platform will be centered around the "Digital Home." On this front, he highlighted several developments. The Digital Living Network Alliance Specification (1.0) was passed in June and the first products are due out in Q4. The first entertainment PCs are starting to ship now. And the issue of digital content protection inside the home is also being addressed with the new DTCP/IP specification. Products, such as a media adapter from Netgear, will use DTCP/IP to stream protected content from a home media server to various devices throughout the home. Intel has been working with Sony, Real Networks, Netgear, Movielink and others to enable the distribution of downloadable, premium content over home networks. Significantly, Microsoft has also agreed to support DTCP-IP as an important enabling technology in future Windows Media products. http://www.intel.com

1394 Trade Association Takes Steps to Wireless Firewire

The 1394 Trade Association today announced that it has approved the WiMedia Alliance's MAC Convergence Architecture (WiMCA) as a platform for a high-speed wireless 1394 protocol adaptation layer (PAL) development. The PAL permits IEEE 1394 devices and protocols to be used in a wireless environment at speeds up to 480 Mbps, while allowing compatibility with existing wired 1394 devices.



The 1394 TA also said it will collaborate with the WiMedia Alliance to develop interoperability test specifications and certification programs for wireless 1394. The association's Wireless Working Group and Compliance and Interoperability Working Group will direct collaboration.



In addition, the Trade Association will collaborate with the MultiBand OFDM Alliance SIG (MBOA) to coordinate the development of UWB and wireless 1394 specifications.



"The 1394 TA decision is further confirmation that the consumer electronics, personal computing and mobile industries are rallying together around a UWB platform," said Glyn Roberts, President of the WiMedia Alliance. http://www.1394ta.org


Tellabs and AFC Amend Merger Terms

Tellabs and AFC have amended the terms of their pending merger, which was first announced on May 20, 2004. Under the terms of the amended agreement, which was approved today by both companies' boards of directors, AFC stockholders will receive 0.504 shares of Tellabs common stock and $12.00 in cash for each AFC share. The original exchange ratio was 1.55 Tellabs shares and $7.00 in cash for each AFC share. Based on today's closing price for Tellabs' stock, the revised exchange ratio represents $16.60 in value per AFC share, or a total value of approximately $1.5 billion.

Upon completion of the transaction, Tellabs' stockholders will own approximately 90% of the company and AFC stockholders will own 10%. Including synergies, Tellabs expects the transaction to be accretive to full-year 2005 pretax income on a per-share basis, excluding amortization associated with acquired intangibles and other purchase accounting adjustments.

The companies said the need to amend the original merger agreement arose following AFC's release of its second-quarter results and outlook. http://www.tellabs.com/http://www.afc.com

SkyStream Collaborates with Alcatel on IPTV

SkyStream Networks will collaborate with Alcatel on IPTV and contribute to its integrated solution for delivery of broadcast video over DSL. SkyStream also announced that it has signed a reseller agreement with Alcatel, in which Alcatel will be offering SkyStream Networks' Mediaplex-20 video headend platform as part of its IPTV Open Media Suite of solutions to telecom operators worldwide.



SkyStream's Mediaplex-20 is a single chassis, all-in-one video delivery system. It receives video content via satellite and analog channels for advanced MPEG-2 and MPEG-4 encoding. Mediaplex also provides video multiplexing and demultiplexing, video rate-shaping, transrating, stream replication, routing and ATM to IP conversion. Mediaplex-20 enables a new level of converged services over any last mile (ADSL, FTTH, and CATV) delivered with carrier-class security, reliability and scalability. http://www.skystream.com

Intel Develops WiMAX Silicon for CPE

Intel has begun sampling its "Rosedale" wireless broadband chip for WiMAX customer premise (CPE) products. The new "Rosedale" chip supports the newly ratified IEEE 802.16-2004 (previously known as IEEE 802.16REVd). Rosedale will include the 802.16-2004 MAC and OFDM PHY, an integrated 10/100 MAC, inline security processing and a TDM controller interface which enables applications such as broadband Internet streaming data and voice.

http://www.intel.com/pressroom

LightPointe Names Jim Cady as New CEO

LightPointe, a supplier of optical wireless products based on free-space optics (FSO), named Jim Cady as its new president and CEO. Previously, Cady was president and chief executive officer of WatchGuard Technologies, a leading provider of Internet security products and services. Prior to WatchGuard, he was president of Rio Digital Audio, a leading provider of digital audio products and services.



LightPointe is based in San Diego, California. http://www.lightpointe.com

China Unicom Awards $98M CDMA Expansion Project to Lucent

Guangdong Unicom awarded a US$98.5 million contract to Lucent Technologies for the phase III expansion of its CDMA network. Under the contract, Lucent will supply its CDMA2000 solutions and will provide services support. The new network is expected to improve the capacity and coverage in eight cities in Guangdong Province. http://www.lucent.com.cn

Lucent to provide Ultra Dense MEMS to DARPA

The Defense Advanced Research Projects Agency (DARPA) selected Lucent Technologies to develop an advanced microsystem that will make the design, engineering and fabrication of next-generation advanced silicon integrated circuits faster, more economical and with increased security for military applications such as transformational communications and homeland security.



Under the project, Lucent will design, develop and demonstrate micro electro mechanical systems (MEMS)-based Spatial Light Modulators (SLMs) that will enable maskless optical lithography. Lucent said the maskless lithography process using MEMS-based SLMs would allow manufactures to build circuits without the expense of individual masks. Lucent's unique SLMs enable such circuits to achieve smaller critical dimensions with higher throughput.



A MEMS SLM approach makes it possible to manipulate light in ways not previously possible in the fabrication of microdevices. In Lucent's MEMS SLM containing 100 to 200 nanometer features, extremely small mirrors are packed in an integrated multi-megapixel array that reduces requirement for the projection optics needed to achieve small, 50nm, critical dimensions of the next generation integrated circuits. The lower demagnification required for the smaller mirrors allows for a larger image area with the same optical element sizes and projector numerical aperture. This enables throughput that is 10 to 50-times faster than using other current maskless lithography processes, resulting in efficient and cost-effective fabrication.



The Lucent team includes Corning Tropel Corporation, DuPont Photo Masks Inc, Lincoln Laboratories. The work is performed in close partnership with ASML. http://www.lucent.com

Sun to Offer AdvancedTCA-Telecom Products

Sun Microsystems announced its intention to launch an Advanced Telecom Computing Architecture (AdvancedTCA)-compliant product family supporting both the Solaris operating system (OS) and Carrier-Grade Linux operating systems.



Sun's Netra AdvancedTCA systems will include UltraSPARC and AMD Opteron-based processor designs for telecom applications, such as 3G. Sun also unveiled an AC version of its UltraSPARC processor and Solaris OS-based Netra 440 system for telecom, defense and OEM customers. http://www.sun.com

ECI Telecom Offers IP-based Packet Access Solution

ECI Telecom introduced an IP version of its Hi-FOCuS access platform designed to help carriers migrate to IP-based broadband networks. The Hi-FOCuS access platform covers multi-service requirements, such as fiber, xDSL and Voice, and concurrently supports a multitude of service interfaces including VDSL, ADSL2+, Broadband PON (BPON), Gigabit PON (GPON) and POTS. In addition, a non-blocking backplane enables migration to multiple GBE and 10GBE network interfaces. ECI said its Hi-FOCuS) IP offers true packet optimization for the delivery of video, voice and data over packets whether in native Ethernet or MPLS and provides smooth inter-working schemes with ATM, TDM, MPLS and network services.



The Hi-FOCuS IP packet access solution has already been chosen for deployment within leading operators' networks. http://www.ecitele.com

Portugal Telecom Reaches 529,000 Broadband Users

As of the end of June 2004, Portugal Telecom was serving 529,000 broadband (cable modem and DSL) customers, including 293,000 wholesale ADSL accounts.



Portugal Telecom's operating revenue for Q2 increased 5.8% to EUR 1.494 billion (excluding the depreciation of the Brazilian currency this figure would have been 8.0%). Net income totaled EUR 161 million. CAPEX increased 12.4% to y-o-y to EUR 247 million. http://www.telecom.pt

Telecom Italia Tops 3 Million ADSL Subscribers

As of 30-June-2004, Telecom Italia was serving 3,273,000 ADSL subscribers, including 2,975,000 in its domestic Italian market (750,000 wholesale) and 298,000 in Germany, France and Holland. The carrier was serving 26 million lines. This figure does not include the 710,000 "silent" lines in order to provide greater consistency between the number of lines managed and business development. Revenues rose to EUR 8,684 million, up 1.3% compared with the first half of 2003.



Overall, the TIM Group reported revenues or EUR 6,152 million, up by 11.2% compared to the first half of 2003 (+12.1% at equalized exchange rates). Revenues from international operations were up 29.8% compared to the first half of 2003, with Brazil revenues up by 47.1% compared to the first half of 2003 (+49.7% at equalized exchange rates). TIM's gross operating profit was EUR 2,918 million, up by 11.2% (+9.2% organic growth, that is at equalized exchange rates and excluding the effects due to the contribution for telecommunications). http://www.telecomitalia.it

France's Neuf Telecom Deploys Next-Gen Redback Platform

The Neuf Telecom Group (formerly LDCOM), one of the largest carriers in France, has selected and deployed Redback Networks next-generation SmartEdge platform for the expansion of its broadband network associated with strong growth in new subscribers. Neuf Telecom has been adding about 150,000 new subscribers each quarter. The shift to the SmartEdge platform represents an evolution from its existing Redback SMS 10000SL broadband subscriber management systems. The new platform adds greater performance, scalability and the ability to provide advanced subscriber services, including custom delivery of voice and video. Financial terms were not disclosed. http://www.redbacl.com

Sweden's B2 Selects Ericsson's Ethernet DSL

B2 Bredband AB, Sweden's second largest broadband service provider with a subscriber base of 275,000, has selected Ericsson's Ethernet DSL Access solution for their on-going nationwide roll-out of ADSL2plus based services in an Ethernet based network environment. Financial terms were not disclosed.



B2's services include fast broadband access (LAN and DSL), IP-telephony, Video-on-Demand and TV. http://www.ericsson.com/press

Thomson Extends Satellite Set-Top Box Agreement With DIRECTV Latin America

DIRECTV Latin America has extended its agreement under which Thomson supplies digital set-top boxes for all of DIRECTV Latin America's service territories. The agreement follows the global strategic supplier agreement signed between Thomson and News Corp in November 2003. For the past year, Thomson has been targeting growth within the News Corp family of operators as a key corporate priority and recently announced satellite set-top box agreements with DIRECTV, Sky Brasil and Sky Mexico. Thomson will leverage its MPEG 2 product design and the expertise of DIRECTV to deliver an advanced set-top box for DIRECTV Latin America.



DIRECTV Latin America now covers 28 countries including Argentina, Brasil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico, Trinidad and Tobago, Uruguay, Venezuela and several Caribbean island nations. http://www.thomson.net

iBasis and Hanaro Telecom Interconnect VoIP Traffic

Hanaro Telecom, Korea's second-largest fixed-line and Internet broadband operator, has established a direct IP interconnection with the iBasis Network for exchanging international voice traffic. iBasis operates a Cisco-powered network and Hanaro Telecom is using a softswitch manufactured by Xener Systems, a Korean manufacturer.



iBasis said it now has relationships with more than 250 carriers worldwide . http://www.ibasis.comhttp://www.xener.com

WebEx Selects Convedia Media Servers

WebEx Communications has deployed Convedia's CMS-6000 and CMS-1000 Media Servers in the WebEx MediaTone Network. Convedia Media Servers deliver IP media processing power for an integrated VoIP conferencing capability, allowing WebEx to deliver a seamless multimedia conferencing experience over a common, economical IP-based services infrastructure.

SureWest Deploys General Bandwidth's VoIP Media Gateway

SureWest Communications (SURW) will utilize General Bandwidth's G6 VoIP Media Gateway to deliver enhanced voice over IP services to residential and business broadband customers in the Sacramento/Roseville corridor. The G6 VoIP Media Gateway provides the capability to simultaneously support VoIP services from multiple softswitches, SIP-based feature servers as well as legacy class 5 switches. Financial terms were not disclosed.



SureWest is already serving more than 13,000 "triple play" customers over their DSL and fiber networks. http://www.surewest.com

Verizon Adds 3 Mbps/768 Kbps DSL Option in 12 States

Verizon Online began offering a new 3 Mbps/768 Kbps DSL service tier in 12 New England and mid-Atlantic states and in the District of Columbia. The company plans to offer 3Mbps DSL service later this year in the remaining 11 states where it now offers up to 1.5 Mbps DSL service. Pricing begins at $39.95 a month when purchased as part of a package of Verizon calling services. Verizon will continue to offer the 1.5 Mbps/384 Kbps to consumers in 23 states and the District of Columbia, for as low as $29.95 a month. http://www.verizon.com/news