Wednesday, September 8, 2004

The New Net: Intel and HP to Commercialize PlanetLab Initiative

"To be honest, the Net today is still pretty primitive. We're still in the stone age when it comes to serious networking, " said Vint Cerf, Chief Scientist at MCI, speaking at the Intel Developer's Forum in San Francisco. "There's a great deal more to done," he said, especially in terms of network architecture. To begin with, the Internet will need to scale to accommodate the other 5 billion people on the planet not yet connected. There will also be a far greater number of network-enabled devices and a whole new set of applications (entertainment, health care, financial, etc) putting additional demands on the network. Cerf contends that new capacity problems will soon emerge in terms of bandwidth and IPv4 address space. He warned of localized packet traffic jams as "flash" congestion occurs when too many users/devices converge.



In order to build the "New Net", the industry needs to create an overlay to current infrastructure, said Pat Gelsinger, Intel's CTO. This new "advanced services overlay" is needed, he said, to address capacity, reliability, security, accessibility, and regional regulatory requirements that limit the usefulness of the current Internet. Certainly, IPv6 provides some of the solution to these problems, said Gelsinger, but "it could take years" before the transition is complete.



Intel envisions a global overlay network based on work underway at the PlanetLab initiative. Over 440 nodes (including major carriers, corporations, Internet2 organizations and 150 universities) are currently operational on the PlanetLab network. PlanetLab uses a distributed set of "Services Virtual Machines" to share infrastructure services and end-user services across the global network. Applications run on PlanetLab are decentralized, with pieces running on many machines spread across the global Internet. They can also self-organize to form their own networks, and include some form of application processing inside the network (instead of at the edges), adding new intelligence and capabilities to the Internet.



"These new smart services could allow the Internet to detect and warn of worm attacks on its own, dynamically re-route network traffic to avoid delays and improve video web casting," Gelsinger said.



Gelsinger announced that HP is joining with Intel to commercialize PlanetLab services. The Public Broadcasting Service (PBS) is working with HP to use PlanetLab for the distribution of HD video content to its member stations. Intel and HP are encouraging further industry participation in PlanetLab. http://www.planet-lab.org

Taiwan's Chunghwa Selects Optibase for Live TV over DSL

Chunghwa Telecom, Taiwan's incumbent operator, selected Optibase encoders to enable the delivery of live TV services to 20,000 ADSL subscribers in Taipei. Optibase's MGW 5100 is being used to provide the head-end functionality of live encoding, transcoding and streaming of multiple digital TV channels over IP and ATM broadband networks. http://www.optibase.com

Adelphia Selects Level 3 to Expand Nationwide Network

Adelphia Communications, the fifth-largest cable television company in the U.S., awarded a multi-year agreement to Level 3 Communications to provide additional nationwide network services. Specifically, Adelphia will use multiple wavelength circuits to transport data and voice traffic to and from major cities throughout the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks.



Level 3's (3)Link Intercity Wavelength offering is an optical, point-to-point, unprotected service at 2.5 Gbps or 10 Gbps connecting 71 markets across the country. http://www.level3.com

YAK Communications Launches Broadband VoIP Services

YAK Communications launched a broadband VoIP service offering local numbers from 50 cities across Canada, the U.S., and overseas. YAK's WorldCity VoIP service, which is priced at $19.95 per month, offers 1,000 minutes of calling per month to the U.S., Canada, Hong Kong and China. The company said 911 service is available for customers who select a telephone number from one of 13 select Canadian cities so long as they reside in that particular city. http://www.yak.com

Covad and SBC Line-Sharing Agreement

Covad Communications and SBC Communications have agreed to resolve an outstanding issue relating to a pre-existing line sharing agreement between the parties. Line sharing allows competitive communications providers to deploy DSL on the same line customers use for their voice phone services.



As a result of the new agreement, Covad may continue to provide line sharing service to new subscribers through September 1, 2005 at existing contract rates. The pre-existing agreement sets forth the terms and conditions under which Covad is permitted to order line sharing from SBC at a $5.75 monthly recurring charge and $10 non-recurring charge per customer. http://www.covad.com

Telefonica de Argentina Deploys Lucent's IP DSLAMs

Lucent Technologies has completed the installation of 80,000 new ADSL access ports on behalf of Telefonica de Argentina. More than 60,000 of the new access ports deployed use Lucent's IP-based DSLAMs. Lucent also supplied Telefonica de Argentina with its Stinger MRT (Micro Remote Terminal) access concentrator. Lucent Worldwide Services provided engineering, installation and technical support services for the rapid execution of this project. http://www.lucent.com

Amino teams with Video Games Systems

Amino Communications, an IPTV set-top box (STB) vendor, is working with video game systems provider G-cluster to advanced video games across its range of set-top boxes. The Amino set-top box connects to G-cluster's grid of computer servers in the service provider's central office via broadband connection and receives game graphics and sound to display on the television screen in real time. Amino said the technology would enable service provider to offer on-line games as part of their strategy to reduce customer churn and increase broadband revenues. http://www.aminocom.com

CanalSatellite Expands TV-over-DSL Service with Harmonic Digital Headend

CanalSatellite, France's leading satellite distribution and direct-to-home broadcaster, has deployed Harmonic's high-performance digital video headend systems to deliver premium programming for the CANALSATDSL TV-over-ADSL service. Specifically, CanalSatellite is using Harmonic's DiviCom MV 100 platform to encode the CANALSATDSL premium channels into an MPEG-2 digital format. The headend is monitored and controlled by Harmonic's NMX Digital Service Manager to ensure video quality and service availability. CanalSatellite has also deployed a series of Harmonic network interface devices, such as the Broadcast Network Gateway (BNG) and MediaNode MN 20, to more efficiently stream the entire digital lineup generated by the headend over the IP and ATM transport networks. Financial terms were not disclosed.



The recently introduced CANALSATDSL service offers 80 channels of broadcast-quality television to ADSL subscribers via the IP and ATM backbone networks of their telecom partners. http://www.harmonicinc.comhttp://www.canalsatdsl.com
  • CanalSatellite, a 66% Canal+ Group subsidiary, is the leader in digital pay-TV in France with 2.83 million subscriptions at the end of June 2004. CanalSatellite offers over 260 channels.

UTStarcom Signs IP-DSLAM Contract with China Telecom

China Telecom Corporation (CTC) selected UTStarcom to deploy approximately 130,000 lines of its AN-2000 IB IP-DSLAM in six regions throughout mainland China. The deployment will occur in the Zhejiang, Jiangxi, Anhui, Guangdong, and Shangdong provinces, as well as the Tibet autonomous region in southwestern China. Financial terms were not disclosed.



UTStarcom noted that the number of Chinese Internet users at the end of June was 87 million, up 9.4% from the end of last year and 28% more than in June 2003, according to the China Internet Network Information Center. While approximately 51 million people in China still use dial-up connections, broadband connectivity has experienced tremendous growth this year. The number of broadband users grew to 31 million by the end of June, a 79% increase in subscribers from the start of this year. Despite this significant subscriber growth, broadband penetration in China is still at approximately three%. http://www.utstar.com
  • In August 2004, Alcatel Shanghai Bell announced a contract to supply 1.3 million Digital Subscriber Lines (DSL) to China Telecom in southern China. The contract covers the deployment of the Alcatel 7300 Advanced Services Access Manager (ASAM) by China Telecom's subsidiaries in 15 provinces and municipalities across southern China such as Shanghai, Zhejiang, Fujian, Guangdong and Guangxi.

FCC Designates Spectrum for Advanced Wireless Services

The FCC allocated and paired five-megahertz blocks of spectrum at 1915-1920 MHz with 1995-2000 MHz, and 2020-2025 MHz with 2175-2180 MHz for advanced wireless services (AWS), potentially including 3G services. The Commission redesignated the 1915-1920 MHz band for AWS from Unlicensed Personal Communications Services (UPCS) and pairs this five-megahertz block of spectrum with the five-megahertz block at 1995-2000 MHz (which was previously allocated for the Mobile Satellite Service (MSS)). An additional ten megahertz of spectrum at 2020-2025 MHz and 2175-2180 MHz -- previously allocated for MSS -- is to be made available as paired five-megahertz spectrum blocks. The Commission concluded that pairing the bands in this manner promotes a more efficient use of the spectrum and complements adjacent band operations.



"The 20 MHz of licensed spectrum we make available, in addition to the 90 MHz of spectrum previously made available, will help expedite the delivery of licensed broadband Internet wireless service to all consumers across the nation," said FCC Chairman Michael K. Powell. http://www.fcc.gov

FCC Report Highlights Growing Broadband Availability

Advanced telecommunication capabilities are being deployed on a reasonable and timely basis to all Americans, , according to a new 60-page report from the FCC. The study found that broadband deployment is accelerating across the U.S. in both rural and urban areas. Some key findings:

  • There were 28.2 million advanced lines (>200 kbps in at least one direction) as of December 2003.


  • Cable modem service represented 58% of these lines, with ADSL representing 34% of these lines as of year end 2003.


  • As of December 2003, only 6.8% of zip codes in the U.S. reported no high-speed lines, compared to 22.2% of zip codes with no reported lines in June 2001. There also has been a steady growth in the% of zip codes reporting four or more providers of high-speed lines, from 27.5% in June 2001 to 46.3% in December 2003.


  • As of May 2004, carriers have deployed FTTH to 128 communities in 32 states.


The 60-page report highlights the growth in Wi-Fi Internet access hotspots, WiMax, third-generation mobile phones, personal area networks, satellite technologies, fiber to the home, and broadband over power lines, in addition to more familiar cable modem and DSL services.



"As other countries place their eggs in the basket of one, typically dominant supplier of broadband, we are committed to broadband deployment over multiple platforms. Deployment of multiple broadband platforms is the best way to meet the President's goal of universal and affordable access to all by the year 2007," wrote FCC Chairman, Michael K. Powell.



In a dissenting opinion, FCC Commissioner Michael Copps wrote: "The history of great infrastructure developments in this country is a tale of private sector - public sector partnership. In broadband, business will lead the way, as it should. But there is a role for government too -- a statutorily mandated role totally in keeping with how this country historically built its infrastructure. When we find ourselves eleventh in the world, something has gone dreadfully wrong. When Congress tells us to take immediate action to accelerate deployment, we have an obligation to do it. When the highest reaches of government aim for universal broadband by 2007, we need a strategy to meet that goal. I see none here."http://www.fcc.gov
  • In August 2004, Nielsen//NetRatings reported that broadband connections for the first time reached 51% of the American online population at-home during the month of July, up from 38% of the online population a year ago.

    The research company reported a plateau in the overall growth of Internet access in the U.S..

    Sixty-three million Web users connected to the Internet via broadband during July 2004 as compared to 61.3 million accessing the Internet through narrowband. Overall growth for broadband connections rose 47% year-over-year, while narrowband dropped 13% annually.

BellSouth Confirms Falling Trend in New UNE-p Activity

BellSouth has seen fewer UNE-p line losses following AT&T's decision to leave the consumer market, said Ron Dykes, Chief Financial Officer at BellSouth, speaking at Morgan Stanley's Ninth Annual Media & Communications Conference in New York. BellSouth expects that it will be able to win back many of the local voice customers that left to UNE-p competitors. UNE-p line number trends are expected to be announced in the company's next quarterly financial report.



Dykes also said the transition from circuit to packet is moving "very quickly", creating new opportunities and new competitors. BellSouth's strategy is to look for growth its broadband and wireless platforms. Dykes said the prospects of IP video is very especially interesting. More than half of BellSouth households are now served by fiber-fed, short copper loops (<5000ft). IPTV lab tests are underway and look promising, he said, and the company's next steps will be a field trial, followed by an economic validation of the business case. Meanwhile, BellSouth's DirecTV offer has been extended to all of its retail channels. http://www.bellsouth.com
  • On July 22, AT&T announced an historic decision to shift its focus away from traditional consumer wireline telephony.

Verizon Sells Directory Operations in Canada

Verizon Communications will sell its directory operations in Canada to Bain Capital, a global private investment firm, for US$1.54 billion. The directory operations, SuperPages Canada, is the country's second largest directories publisher and is the official TELUS directory publisher in Western Canada, where its directories enjoy strong market share positions and loyal customer relationships. Online directory operations are also included in the transaction. An affiliate of Verizon Information Services, SuperPages Canada had revenues of US$293 million in 2003. After the transaction, the company will continue to use the SuperPages brand name. http://www.verizon.com

Verizon Sees Decrease in UNE-p Activity, FTTP Project on Track

Starting in July, Verizon Communications began to experience a significant decrease in the number of new UNE-p lines it provides to competitors, said Doreen Toben, CFO of Verizon Communications, speaking at Morgan Stanley's Ninth Annual Media & Communications Conference in New York. The trend was especially noticeable in the residential market, reflecting AT&T's decision to exit this segment. Verizon currently has a base of 6 million UNE-p lines in service. Toben said the company is increasing its marketing efforts in hopes of winning back these customers.



Toben reaffirmed Verizon's commitment to its FTTP initiative, saying that the company sees huge opportunities for new services and substantial network cost savings through an FTTP infrastructure. However, Toben said the company is still in the very early stages of the project and thus cannot yet financial guidance on how FTTP will affect the company's financial future. Before being able to share the business case for FTTP with investors, Toben said she needs more data on actual installation times, customer take-rates, ARPU, and network operation costs. Verizon remains on track to pass one million homes with its FTTP network this year. The Capital cost for this phase of the project is $800 million. Next year, Verizon is targeting an additional two million homes. Toben promised to carefully scrutinize the business case before deciding whether or not to accelerate the initiative beyond the announced plans.



Verizon Wireless continues to outpace the industry in growth. Toben said the company has been successful in attracting premium customers, thus driving up ARPU. The EVDO launch is moving ahead as planned and further market rollouts are imminent. http://www.verizon.com
  • Earlier this summer, Verizon began offering its "Fios" FTTP service in Keller, Texas and other select locations in California and Florida. Verizon "Fios" will consist of three consumer Internet access tiers: 5 Mbps/2 Mbps for $34.95 a month as part of a calling package, or $39.95 a month stand-alone; 15 Mbps/2 Mbps for $44.95 a month as part of a calling package, or $49.95 a month stand-alone ; 30 Mbps/5 Mbps at pricing to be announced later


  • Verizon plans a Fios video offering to give consumers an alternative to cable TV in 2005.