Agere Reports Revenue of $439 million

Agere Systems reported quarterly revenue of $439 million, at the high end of the guidance range provided by the company in July. The company's revenues were $495 million in the June quarter and $504 million in the year-ago quarter. GAAP net loss for the quarter was $127 million or $0.07 per share, including $132 million in net restructuring and other charges. Agere reported a GAAP net income of $2 million or breakeven per share in the June quarter, and a GAAP net income of $11 million or $0.01 per share in the year-ago quarter.



"We are encouraged by the progress we have made over the last year: we increased revenues and gross margin, improved our bottom-line performance, and strengthened our cash position," said John Dickson, president and CEO, Agere Systems. http://www.agere.com

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Tellabs Revenues Rise to $284 million

Tellabs reported Q3 revenue of $284 million, up 16% from $245 million in the third quarter of 2003. On a GAAP basis, Tellabs earned 11 cents per share or $46 million in the third quarter of 2004, compared with a loss of $65 million or 16 cents per share in the third quarter of 2003. Tellabs' third-quarter earnings of 11 cents per share included a tax benefit of 2 cents from an IRS settlement. Some highlights:

• Transport -- Revenue from transport systems totaled $138 million, up 31% from $105 million in the third quarter of 2003, primarily driven by wireless demand.



• Managed Access -- Revenue from managed access systems was $73 million, down 10% from $81 million in the third quarter of 2003, primarily due to short-term issues in the relocation of international outsourced manufacturing to a lower-cost location.



• Broadband Data -- Revenue of broadband data products was $8 million, double $4 million in the third quarter of 2003.



• Voice Quality Enhancement -- Revenue from voice-quality enhancement and other systems amounted to $20 million, up 29% from $16 million in the third quarter of 2003.



• Services and Solutions -- Services and solutions revenue was $45 million, up 15% from $39 million in the third quarter of 2003.

Tellabs said it hopes to close its pending acquisition of AFC during Q4. http://www.tellabs.com

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Avaya Launches Service Provider-Delivered Solutions

Avaya launched new IP telephony and contact center communications solutions that enable service providers to offer hosted services through a usage-based monthly fee. The solutions are aimed at mid-sized companies with as few as 100 users that considering outsourced telephony options.



Avaya provides end-to-end support and management tools for its hosted IP telephony and contact center solutions that include building and testing at Avaya Labs and at service provider data centers to validate interoperability in the carrier environment. Avaya also supports these new solutions with new polling and rating tools developed specifically for the service provider market. The company also provides network assessment and implementation support for service providers and their customers through Avaya Global Services.



The new Avaya Service Provider Delivered Solutions complement the company's recent acquisition of Spectel, a provider of audio conferencing solutions for service providers.



Separately, Avaya and Philippines Long Distance Telephone Company announced a three-year agreement through which PLDT will market the Hosted Contact Center solution from Avaya to small and medium-sized enterprises in the Philippine market. The company is launching a new service called PLDT On-Call that offers Avaya-powered contact center capabilities, hosted in PLDT's data center and delivered over its network. http://www.avaya.com

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Avaya Sees Rise in Quarterly Revenue to $1.076 billion

Avaya reported quarterly revenue of $1.076 billion, up 11% from revenues of $971 million in the same period last year. The company said product sales increased 14 percent in the fourth quarter compared to the year ago period and all three business segments were profitable for the second consecutive quarter. Increased sales, as well as favorable channel and product mix contributed to gross margin of 50 percent, an increase from 48 percent in the third fiscal quarter. Net income was $100 million or earnings of 21 cents per diluted share. http://www.avaya.com

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Tekelec Posts Revenue of $106.6 Million

Tekelec reported Q3 revenue of $106.6 million, compared to $70.7 million in the third quarter of 2003. During the quarter, the company exceeded $100 million dollars of revenue for the first time in its history, with revenues increasing 12% sequentially and 51% year-over-year, and orders increasing 102% year-over-year. Tekelec noted $150.8 million of total orders generated during the quarter, surpassing its previous order record of $138.1 million achieved in Q4 2003. On a GAAP basis, Tekelec's net income for Q3 was $18.7 million, or $0.27 per diluted share, for the third quarter of 2004, compared to net income of $8.5 million, or $0.13 per diluted share, in the third quarter of 2003.



Tekelec said that its next-gen switching strategic initiative saw revenues increased 17% sequentially to $15.1 million, as it added 16 new bringing Tekelec's next-gen switching customer total to approximately 150. Revenue for Tekelec's Signaling Group was $81.1 million, up 43% year-over-year, marking the highest signaling revenue in the history of the company, driven by robust sales in the U.S. and continued global expansion. http://www.tekelec.com

• In September 2004, Tekelec acquired VocalData, a start-up offering a hosted IP telephony platform for business and residential customers, for approximately $27.5 million, consisting of $14.5 million of cash and approximately 780,000 shares of Tekelec common stock.

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Tunisie Telecom Selects Redback and Huawei

Tunisie Telecom has selected Redback Networks and Huawei as key suppliers for its nationwide broadband network. Redback is supplying its SMS 1800 broadband subscriber management systems. Huawei is supplying DSLAMs, a centralized network management system and DSL modems. Huawei is a global distribution partner for Redback. Financial terms were not disclosed. http://www.redback.comhttp://www.huawei.com

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Xspedius Selects Juniper/Lucent for Converged Core

Xspedius Communications, an integrated communications provider (ICP) based in Missouri, has migrated its ATM core network to an IP/MPLS core based on solutions from Lucent and Juniper Networks. The deployment includes the Lucent's 5E-XC switch, the Juniper Networks M-series routing platforms and Lucent's PacketStar (PSAX) 4500 Voice over Packet Media Gateways. Financial terms were not disclosed.



The multiservice network solution enables Xspedius to converge IP, ATM and Frame Relay Services on an MPLS core with the same quality of service as the ATM core network. In addition to data services, Xpedius will be providing its business customers with future VoIP applications such as voice virtual private networks, virtual contact centers, managed bandwidth services and unified communications, as well as traditional voice services. http://www.juniper.nethttp://www.lucent.com

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ECI Telecom Releases Mini MSPP

ECI Telecom introduced a miniature Multi-Service Provisioning Platform (MSPP) designed for cellular network applications. ECI's new XDM-50, which carries data over Ethernet, SDH/SONET and CWDM, can be used as a stand-alone system or it can be incorporated into a transmission network with the XDM-100.



The XDM-50 miniature shelf provides multi-ADM and cross-connect functionality in various topologies, including ring, mesh or star. http://www.ecitele.com

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Intrado Tool Lets Consumers Verify 9-1-1 Info

Intrado introduced a new tool that allows telephone subscribers to quickly and easily verify the accuracy of their 9-1-1 address information. The new Intrado 911Plus Info Check supports access to 9-1-1 service information related to wireless and VoIP phones. A large telecommunications carrier has agreed to partner with Intrado in a consumer trial of this system. Details of the trial will be announced at a later date. http://www.intrado.com

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UTStarcom Reports Third Quarter 2004 Results

UTStarcom reported Q3 net sales of $645.0 million, an increase of 10% over net sales of $584.4 million reported in the third quarter of 2003. GAAP net income for the third quarter of 2004 was $5.0 million, or $0.04 per share. This compares to net income of $59.1 million, or $0.46 per share, for the third quarter of 2003. Some highlights:

• Q3 gross margins were 21.3%



• Q3 international bookings of $200 million and $600 million September



• UTStarcom PAS subscribers in China reached approximately 34 million at the end of Q3, with total PAS subscribers in China estimated at approximately 60 million



• More than 6.5 million lines of IP-DSLAM have been deployed globally to date



• More than 55 million lines of mSwitch have been deployed globally to date.

http://www.utstar.com

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Verizon Wireless Tops 100 Million Downloads

Verizon Wireless has delivered more than 103 million "Get It Now" applications to its mobile phone customers since launching the service in September 2002. "Get It Now" provides ringtones, games and other applications for the users' mobile phone. Games and ringtones are the most popular downloads. Traffic volumes are now exceeding nine million downloads per month. http://www.verizonwireless.com

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Verizon Wireless and Yahoo! Team Up

Verizon Wireless is teaming up with Yahoo! to offer an extensive suite of e-mail, mapping, news, and weather-information applications through the Verizon Wireless Mobile Web 2.0 service. Customers can set up their personal preferences on Yahoo!, such as local weather or stock portfolio settings, this information is automatically accessed from their wireless phones each time they log on to Yahoo!. http://www.verizonwireless.comhttp://www.yahoo.com

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China Telecom Selects Lucent DWDM for National Backbone

China Telecom selected Lucent Technologies for upgrades to its national optical backbone network.
Under the project, Lucent will provide its WaveStar OLS 1.6T high-capacity DWDM system to build a transmission network spanning over 2,400 kilometers across China. The contracts were awarded as part of China Telecom's National Transmission Backbone Expansion Project. Financial terms were not disclosed. http://www.lucent.com

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Verizon Selects Motorola for Video Services over FTTP

Verizon awarded a multi-year contract for Motorola to provide video network infrastructure and video consumer premises equipment related to Verizon's launch of video services on the company's new FTTP next year. Motorola will also provide project integration and operational services through its newly-formed Telecom Access Solutions business unit. Financial terms were not disclosed.



"This exciting new network we're building will lead to a true convergence of voice, data and video services on one network," said Paul Lacouture, president-Network Services Group for Verizon. "We currently deliver voice and high-speed data over this new network, and the available bandwidth that fiber provides makes the addition of video services the next logical step. http://www.motorola.comhttp://www.verizon.com

• Earlier this month, Verizon announced expanded FTTP deployment to homes and businesses in Delaware, Maryland, Massachusetts, New York, Pennsylvania and Virginia -- bringing to nine the total number of states where work is under way. The company had previously announced FTTP deployment in California, Florida and Texas as part its plan to pass some 1 million homes and businesses with the new technology this year. Verizon plans to pass some 2 million additional homes and businesses with the new technology next year. Verizon expects to make an $800 million capital investment in FTTP this year. Verizon also announced plans to hire between 3,000 and 5,000 new employees by the end of 2005 to help build the network.



• In September, Verizon Communications hired Terry Denson, former vice president of programming for Insight Communications, the ninth-largest cable operator in the country, to manage entertainment content and marketing strategies. As vice president of video programming and content marketing and strategy for Verizon, Denson will guide video product packaging, pricing and marketing strategies; video content acquisition and distribution agreements; and customer education, acquisition and retention planning.



• In February 2004, AFC signed a definitive agreement with Verizon to provide its FiberDirect solution for the carrier's FTTP initiative. Under the terms of the agreement -- which extends through 2008 -- AFC's FiberDirect solution will provide Verizon with the central office and premises electronics, or "active" elements.

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Bandwidth.com Launches Business VoIP with Level 3

Bandwidth.com launched a hosted VoIP local and long distance service for businesses through a partnership with Level 3 Communications.



Bandwidth.com currently serves as an intermediary between telecom providers and businesses wishing to purchase Internet access. http://www.bandwidth.com

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Broadcom Names McGregor as President and CEO

Broadcom named Scott A. McGregor as President and Chief Executive Officer, effective January 3, 2005, succeeding Alan E. "Lanny" Ross, who is retiring.



McGregor has served as President and CEO of Philips Semiconductors since September 2001. He joined the Philips Semiconductors group in February 1998 as head of its Emerging Business unit, leading it to profitability and nearly $1 billion in sales before being named President and CEO of Philips Semiconductors in September 2001. Prior to Philips, Mr. McGregor held senior management positions at the Xerox Palo Alto Research Center, where he was involved in designing software for the first personal computers employing graphical user interfaces, and at Microsoft, where he was the architect and development team leader of the original version of Microsoft Windows. Additionally, he served in senior positions at Digital Equipment Corporation (now part of HP), where he led the UNIX workstation software group and was one of the architects of the X Window System, and the Santa Cruz Operation Inc. (SCO), a provider of network computing solutions, where he helped pioneer open software standards. http://www.broadcom.com

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FCC Votes to Approve Cingular/AT&T Wireless Merger

The FCC voted to approve the proposed merger of Cingular Wireless subject to several conditions, including business unit divestitures in 16 markets, limits on Cingular's acquisition of spectrum in an upcoming auction, and additional spectrum divestitures.



FCC commissioners concluded that the proposed merger will serve the public interest and that the public benefits of the merger outweigh the potential public interest harms. http://www.fcc.gov

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Cingular Completes Merger with AT&T Wireless

Cingular Wireless completed its $41 billion acquisition of AT&T Wireless. Shareholders of AT&T Wireless will be paid $15 cash per share by SBC Communications and BellSouth. The newly combined company is the nation's biggest wireless carrier with more than 46 million customers.



Cingular will now start opening access to both the Cingular and AT&T Wireless GSM networks to further improve coverage, allowing customers of both companies to use the new, combined network without roaming charges. Customers also will have the ability to make unlimited mobile-to-mobile calls to any Cingular or AT&T Wireless customer.



SBC Communications said the pending acquisition of AT&T Wireless by Cingular Wireless positions SBC for stronger growth in one of the hottest sectors of telecom today. Specifically, SBC expects:

• the combination of the two wireless companies will increase proportionate revenues from Cingular Wireless from less than 20 percent of SBC's total revenues to more than 30 percent.



• the overall number of U.S. wireless subscribers to increase from 155 million at the end of last year to 200 million by the end of 2008.



• to introduce new SBC products and services that utilize the improved Cingular wireless position to be more competitive across all of the companies' business lines. Details of the new wireless/wireline products have not yet been announced.



• AT&T Wireless' existing strength among large businesses to boost SBC's relationship with these customers.



• the merger of the two wireless companies' networks and spectrum will boost consumer service coverage, call quality and other improvements.

http://www.cingular.comhttp://www.sbc.com

• SBC holds a 60% stake in Cingular, while BellSouth holds 40%.

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AT&T Settles Shareholder Class Action Lawsuit

AT&T reached an agreement to settle a shareholder class action lawsuit underway in U.S. District Court for the District of New Jersey, three weeks after the trial began. The lawsuit sought damages of approximately $2.4 billion for purchasers of AT&T common stock from December 6, 1999 to May 1, 2000.



AT&T categorically denied any wrongdoing by itself or its officers, but agreed to pay the class $100 million, about four percent of the amount being sought at trial. The payment will be shared equally by AT&T and its former broadband subsidiary, which was spun off in 2002, under the terms of the separation agreement between those entities. In addition, AT&T intends to seek reimbursement from its insurers for the amounts to be paid.



The settlement is subject to final court approval. http://www.att.com

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