Cisco Extends Voice Media and Signaling Encryption to IP Phones

Cisco Systems announced new security features for its IP Communications system, including voice media and signaling encryption to IP phones. Specifically, the new and currently shipping Cisco CallManager 4.1 IP telephony system extends voice media and signaling encryption support for new 7940G and 7960G Cisco IP phones and over 2.5 million installed Cisco 7940G and 7960G IP phones. Cisco CallManager 4.1 now also interoperates with a wide range of Cisco Media Gateways, including the Integrated Services Router line, to provide voice media and signaling encryption support.



Cisco said media encryption support complements the Voice over Virtual Private Network (V3PN) and threat defense security capabilities of its Cisco Media Gateways. Media encryption on media gateways enhances voice privacy on Cisco IP phones in remote offices and provides more secure connectivity to legacy devices, including digital telephones and fax machines. In addition, Cisco is also announcing secure private messaging for Cisco Unity. http://www.cisco.com/go/IPCnew

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DOJ Approves Cingular / AT&T Wireless Merger

The U.S. Department of Justice approved the proposed acquisition of AT&T Wireless by Cingular Wireless, a joint venture of SBC Communications and BellSouth. Conditions for the approval include the divestiture by the merged firm of AT&T Wireless's mobile wireless services business, including spectrum and customer contracts, in parts of 11 states--Connecticut, Georgia, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, Michigan, Oklahoma, Tennessee, and Texas. The transaction is also subject to review by the FCC.



Cingular officials continue to expect the transaction to close later this quarter. http://www.usdoj.gov

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RF Magic Announces Investment From Comcast

RF Magic, a start-up based in San Diego with design offices in Nice, France, announced that Comcast Interactive Capital has completed an investment in the company. Financial terms were not disclosed. RF Magic is developing highly integrated system-on-a-chip ICs for cost sensitive consumer markets like set top boxes and wireless modems. The company specializes in Band Translation Switch technology for multi-channel Digital Broadcast Satellite (DBS) outdoor units. It also offers a transceiver chipset for WiMAX broadband wireless access. ST Microelectronics has also embraced RF Magic's broadband RF high performance tuner products for their set top box RF front-end solutions. http://www.rfmagic.com

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Orca Updates IPTV Middleware with PVR Functionality

Orca Interactive released an updated version of its IPTV middleware with new features such as RiGHTv XPVR (Personal Video Recorder), SUI SDK (Subscriber User Interface Software Development Kit for TV services customizations) and new capabilities to host 3rd party IPTV applications. Additionally, Orca announced that iVISJON, a Norwegian provider of triple play services over FTTH and DSL, and FiberCity, the leading IP solution provider in the Philippines, have purchased an upgrade license to RiGHTv 4.2. http://www.orcainteractive.com

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Walt Disney Internet Group Expands Wireless Business

The Walt Disney Internet Group announced a strategic expansion of its wireless business with the launch of Starwave Mobile, a licensing and publishing business that will focus on content licenses from third-party companies and non-Disney brands from within The Walt Disney Company. Starwave Mobile will leverage WDIG's established content and operations teams and global industry distribution relationships to a wide range of content beyond Disney-branded properties. http://corporate.disney.go.com/wdig/index.html

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Russian Operator Deploys Marconi for Data/SDH

OAO Bashinformsvyaz, the largest communications services provider in the Russian Republic of Bashkortostan (Bashkirian Republic), has deployed Marconi's next-gen optical technology to launch new data-over-SDH services to its customers. The new service has been enabled by Marconi's next-generation OMS1664 multiservice metro platform, supported by its MS1/4 SDH equipment and ServiceOn network management system. Financial terms were not disclosed. http://www.marconi.com

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Ciena Unveils New Marketing Identity

Ciena unveiled a new marketing identity and corporate logo positioning as the company as the "network specialist" and reflecting its significant organizational changes over the past two years.
Through a series of acquisitions and industry partnerships, Ciena has extended its focus beyond optical transport. The new go-to-market strategy has five areas of concentration, including :

• Access infrastructure upgrades for service delivery;



• Storage and Ethernet service value amplification;



• Network scaling for high-bandwidth applications like video and multimedia on demand;



• Core network convergence and automation; and,



• Packet network integration and optimization for enhanced new services.

Ciena will continue to target four customer segments - service providers, cable operators, government agencies, and large enterprises. The company said it would not try to "be all things to all customers" but would concentrate on applications that deliver greater service and value in the network. Ciena also emphasized its strong net cash position ($769 million, as of Q1 2004) compared to other Tier One network equipment suppliers, as well as its established customer base of leading carriers globally. http://www.ciena.com

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NETGEAR Debuts 108 Mbps Wireless USB 2.0 Adapter

NETGEAR introduced an 108 Mbps Wireless USB 2.0 Adapter based on Atheros Communications' silicon and Extended Range technology. The adapter, which is about the size of a pack of chewing gum and has a list price of $79, also provides hardware-based 40/64 and 128-bit WEP encryption, as well as WPA-PSK encryption. http://www.netgear.com

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Clearwire to Deploy WiMax, Partners with Intel

Intel and Clearwire announced a partnership to jointly develop and deploy wireless broadband capabilities using WiMAX. As part of the collaboration, Clearwire intends to deploy WiMAX using equipment from NextNet Wireless (a Clearwire subsidiary) that includes future Intel silicon products. Intel Capital has also agreed to make an equity investment in Clearwire. Financial terms were not disclosed.



Intel said the collaboration with Clearwire is the next step in its continued development of WiMAX technology beyond "Rosedale," its upcoming wireless broadband chip for WiMAX products based on the IEEE 802.16-2004 standard (previously known as IEEE 802.16REVd). Rosedale is Intel's first "system-on-a-chip" solution for CPE supporting that early standard. http://www.intel.com/capitalhttp://www.clearwire.com

• Clearwire, a start-up based in Kirkland, Washington, was created by Craig McCaw, the founder of McCaw Cellular which was later purchased by AT&T Wireless.



• In August 2004, Clearwire launched services in Jacksonville, Florida, delivering up to 1.5 Mbps to residential users.

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Cogent Acquires Aleron, its Sixth Acquisition this Year

Cogent Communications acquired the assets of Aleron Broadband Services, formally known as AGIS Internet, including its customer base and network. Financial terms were not disclosed. As part of Cogent's sixth acquisition of the year, Cogent will retain all 25 Aleron employees nationwide and will relocate Aleron offices from Virginia to Cogent's Georgetown headquarters.



Cogent repor$18 million in cash to be used for a variety of purposes including network expansion, marketing and sales activities in the U.S. and abroad, and the potential acquisition of additional assets. Ken Peterson of Columbia Ventures Corporation will join Cogent's board as a result of the transaction. Further details were not disclosed.

• In July 2004, Cogent Communications named Reed Harrison as its new President and Chief Operating Officer. Harrison most recently served as AT&T's Senior Vice President - Network Engineering & Operations.

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WilTel Teams with Nortel , EMC for Storage Services

WilTel Communications is working with Nortel Networks and EMC Corp. to offer a storage extension service that enables enterprises to implement network-based business continuity, disaster recovery, server and storage consolidation. Offered by WilTel in more than 100 cities throughout the U.S. and featuring an end-to-end service-level agreement (SLA), StorageXtend is a fully managed solution, bundling Nortel Networks Optical Metro 3500 SONET platform with WilTel Protected Private Line service and implementing virtual concatenation. StorageXtend is interoperable with the market leading EMC Symmetrix DMX and EMC CLARiiON CX families of networked storage systems and leading EMC SRDF (Symmetrix Remote Data Facility) and EMC MirrorView software for remote data replication.



WilTel's StorageXtend is a storage-over SONET service and provides scalable bandwidth in 50 Mbps increments. http://www.wiltel.com

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AFC Reports Q3 revenue of $119.6 million

AFC reported Q3 revenue of $119.6 million, as compared with $85.2 million for the same period last year, an increase of 40%. GAAP net income for the third quarter of 2004 was $17.3 million, or $0.19 per share, compared with $9.3 million, or $0.11 per share, for the same period last year.



"Although our revenue was slightly below our previous guidance, we exceeded our operating profit goals in a challenging spending environment," said John Schofield, chairman, president and chief executive officer at AFC. "The third quarter was characterized by record DSL shipments, growth in FTTP sales to both large and small carriers, and the launch of several new initiatives designed to strengthen our efforts in the IOC market.



Separately, AFC announced that it has scheduled a special stockholders meeting for November 30 to vote on its previously announced merger with Tellabs. http://www.afc.com

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AudioCodes Reports 21% Sequential Growth in Revenue

AudioCodes reported Q3 revenues of $23.1 million compared to $19.1 million for the second quarter ended June 30, 2004 and $11.8 million for the third quarter ended September 30, 2003. Q3 revenues grew 21% sequentially and increased 95% compared to Q3 2003. Net income for Q3 2004 was $1.6 million, or $0.04 per share, compared to a net loss of $1.6 million, or $(0.04) per share, for the corresponding period last year. The company cited strong demand across its portfolio of VoIP enabling technology and media gateway and server products. http://www.audiocodes.com

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Mahi Names Bill Cadogan as Chairman and CEO

Mahi Networks named Bill Cadogan as Chairman of the Board and Interim CEO, replacing Chris Rust, who is returning to the venture capital business and will continue to serve on Mahi's Board of Directors. Bill Cadogan is the former Chairman and CEO of ADC Telecom. http://www.mahinetworks.com

• In June 2004, Mahi announced its acquisition of Photuris, another start-up based in New Jersey. It developed an automated optical transport system for high-capacity metro and regional DWDM networks. Its platform features a “Versicolor�? capability that integrates four functions on a single optical line card: WDM demux/mux at the system input/output; fully flexible, reconfigurable OADM wavelength switching (any wavelength to any port, independent of any other wavelength); per-wavelength power balancing; and real-time per-wavelength optical power monitoring.



• Also in June 2004, Mahi Networks closed $70 million in new funding.

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AT&T Announces New Corporate Customers

Randstad North America, a provider of professional employment services, has signed an estimated $25 million, three- year contract with AT&T for an integrated networking solution supporting approximately 500 locations across the United States and Canada. The contract includes local, long-distance, teleconference services and VoIP supported by AT&T's fully managed, dedicated Internet access.



AT&T also announced a separate, multimillion contract under which United Rentalshttp://www.att.com

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Conexant Unveils Video Encoder for Intel-Developed sDVO Interface

Conexant Systems introduced a line of video encoders for notebook and desktop personal computers that are fully compliant with Intel's new serial digital video output (sDVO) front-end interface. The high-performance CX2590X encoder family combines an integrated dual digital visual interface (DVI) transmitter with standard and high-definition TV-out and VGA outputs that are capable of operating simultaneously and independently from one another through the Intel Graphics Media Accelerator 900 in the Intel 915G Express Chipset. http://www.conexant.com

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Akimbo Launches Internet-to-TV VOD Service

Akimbo Systems, a start-up based in San Mateo, California, rolled out its Internet-to-TV video-on-demand (VOD) service in the U.S. and announced a partnership with Amazon to sell its Akimbo Player. The service offers consumers 50 categories of content, including mainstream, classic and independent films, foreign language, news, health and fitness, sports, children's programs, education and more.



The Akimbo Player, which is available in the Amazon.com Electronics store for $229.99, is a set-top box that can store up to 200 hours of video, and provides consumers with viewing controls such as pause, rewind and archive. After a 3 month promotional period, the Akimbo service costs $9.99 per month. http://www.akimbo.comAkimbo is funded by Draper Fisher Jurvetson, Sprout Group and Zone Ventures.

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BellSouth Adds 134,000 DSL Users in Q3

BellSouth reported Q3 consolidated revenue from continuing operations of $5.1 billion and income from continuing operations of $852 million, compared to $894 million in the same quarter a year ago. Earnings per share (EPS) from continuing operations were 46 cents compared to 48 cents in the third quarter of 2003. Normalized EPS was 49 cents in the third quarter of 2004 compared to 50 cents in the same quarter a year ago. Some highlights:

• total access lines of 21.6 million declined 3.9 percent compared to a year earlier. UNE-P access lines resold by BellSouth competitors decreased by 54,000 in the third quarter compared to an increase of 188,000 in the same quarter a year ago.



• added 134,000 net DSL customers during the third quarter of 2004, for a total of approximately 1.9 million at quarter-end.



• data revenue was $1.1 billion, an increase of 3.7 percent compared to the same quarter of 2003, driven by DSL.



• added 532,000 mass-market long distance customers, ending Q3 with approximately 5.7 million customers.



• 90,000 customers have signed up for BellSouth's DIRECTV bundled offer.



• Cingular Wireless added 657,000 net cellular/PCS customers, bringing its nationwide customer base to 25.7 million. More than 80 percent of net additions were postpaid. Churn remained flat year-over-year at 2.8 percent.



• Cingular's proposed purchase of AT&T Wireless is on track. BellSouth's portion of the acquisition funding is approximately $14.5 billion, which will be funded with cash on hand, proceeds from asset sales and incremental debt.

http://www.bellsouth.com

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Qwest Launches Wholesale IP Voice Termination Services

Qwest Communications announced a IP voice termination service for wholesale customers. The service allows wholesale customers to hand over IP voice traffic directly to Qwest, which will transport it across its OC-192 network and terminate the calls to the public phone network. Qwest manages all the gateway equipment and provides an additional level of protection from malicious users. Key features include:

• Domestic and international termination in more than 250 countries



• Fast re-route capabilities on Qwest's IP network



• Session border control for increased security



• Service level agreements for transport services



• 24x7 network monitoring and management

http://www.qwest.com

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TOM Online to Offer Co-Branded Skype Service in China

TOM Online launched a co-branded TOM-Skype service in China. TOM Online operates one of the most successful Internet portals in China. The company provides a range of services such as SMS, MMS and WAP, and is the largest player of wireless interactive voice response services (IVR services).



Since its launch a little more than a year ago, Skype's user base has grown to more than 13 million worldwide, with up to one million concurrent users. http://skype.tom.com/http://www.skype.com/

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