FCC Proposes More Flexible 900 MHz Band

The FCC proposed to eliminate unnecessary regulatory restrictions in the 900 MHz spectrum band. The Commission's proposal would allow more flexible use of "white space" in the 900 MHz band and allow users in the band to respond to evolving market demands.


Specifically, the FCC proposed amendments to Part 90 of its rules to facilitate more flexible use of the 199 channels allocated to the Business and Industrial Land Transportation (B/ILT) Pools in the 896-901/935-940 MHz (900 MHz) bands. The Commission's proposal addresses a number of licensing, operational and technical issues, such as the appropriate band plan, the rights and obligations of incumbent site-based licensees, and competitive bidding procedures for new licenses in the 900 MHz band. The FCC proposes that the available spectrum in the 900 MHz band be licensed using a geographic licensing scheme. The FCC would license the channels in 19 blocks of 10 contiguous channels each, and one block of 9 contiguous channels.


The FCC said its proposal would give new license holders in the 900 MHz band the flexibility to provide any fixed or mobile service pursuant to the allocation for this spectrum, which includes commercial mobile radio services (CMRS). The proposal builds upon the flexibility afforded Private Land Mobile Radio Service license holders in the 900 MHz band when the Commission consolidated the Business and Industrial/Land Transportation (B/ILT) license categories, which allowed more 900 MHz licenses to be used for commercial services.
http://www.fcc.gov

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Tut Systems to Acquire Copper Mountain Networks

Tut Systems agreed to acquire all of the outstanding shares of Copper Mountain Networks in a stock-for-stock transaction valued at approximately $10 million.



Tut Systems said it is acquiring Copper Mountain Networks primarily for its product and engineering resources, which will be refocused to address the expanding IPTV market opportunities. Tut Systems plans to incorporate Copper Mountain's intellectual property and certain product elements into its growing video-centric product portfolio.



As a result of the transaction, Tut Systems will retain certain Copper Mountain employees from development centers in Palo Alto and San Diego and retain Copper Mountain's San Diego facility. Tut Systems also said it will honor Copper Mountain's existing customers' support agreements.



In a separate, previously announced merger, Tut Systems has also agreed to acquire CoSine Communications, Inc. in a stock-for-stock transaction, and if approved by the stockholders of CoSine and Tut Systems, Tut Systems would issue approximately 6.0 million shares of its common stock to the shareholders of CoSine. Each transaction is expected to close in the second quarter of 2005, and each is subject to applicable stockholder approvals, and other customary closing conditions.



"We have witnessed an acceleration of the IPTV market opportunities world-wide and we wanted to accelerate, enhance and broaden our Multi-edge video content processing solution portfolio," said Sal D'Auria, Chairman, President and CEO of Tut Systems.
http://www.tutsystems.com

• In January 2005, Copper Mountain Networks, a supplier of broadband access equipment, initiated actions to lay off most of its remaining employees by March 22, 2005, retaining a limited team of employees to provide customer support and handle matters related to the ongoing exploration of strategic alternatives. At the time, the company said it was still pursuing the potential sale of its intellectual property.



• Copper Mountain's VantEdge provides high-density interfaces for aggregation from T1/E1 for remote DSLAMs and access points, to OC-12/STM-4 and Gigabit Ethernet for video delivery to DSLAMs and PON OLT (Passive Optical Network Optical Line Termination) devices.



• In September 2004, CoSine initiated actions to wind down its operations. CoSine's management team and its Board of Directors concluded that "maintaining the company's existing employee headcount was not necessary for any of the strategic alternatives currently under consideration and the ongoing employee-related expenditures could potentially decrease total stockholder value." CoSine had developed a carrier IP service switch featuring B-RAS capabilities.

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France Telecom Tops 6.3 Million ADSL Lines

France Telecom reported strong growth in wireless and broadband services for full year 2004. Consolidated revenues increased 4.1% on a comparable basis to EUR 47.2 billion.


As of year end 2004, France Telecom had 6.3 million ADSL lines in France, including 2.9 million for its Wanadoo service. There were
5.1 million broadband customers for the group in Europe, and 260,000 Livebox home broadband gateways distributed in Europe.


France Telecom's "Ma Ligne tv" (TV over ADSL) service reached a total of 75,000 clients at year end, including 35,000 that were added in the month of December.


In wireless, the France Telecom Group had 63.3 million customers, up 13.9% for 2004, including 54 million Orange customers. In France, Orange remained the leading operator with a 47.7% market share.



The decline in fixed line revenues in 2004 was contained to 0.3%, versus a decline of 2.4% in 2003.



CAPEX for 2004 was EUR 5.1 billion, comparable to 2003. The CAPEX/revenue ratio was 10.9%, compared to 11% in 2003.



Operating income was EUR 10.8 billion, up 12.4% on a comparable basis.



There was EUR 5.8 billion in cash flow for 2004



Net debt at year end was EUR 43.9 billion, compared with EUR 44.2 billion a year earlier.
http://www.francetelecom.com

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France Telecom to Acquire 100% of Equant, Sell Stake in Directory

France Telecom signed a definitive agreement with Equant for the acquisition of all of the assets and liabilities of Equant for a total aggregate consideration of EUR 578 million for the portion not yet owned by France Telecom. The deal represents an implied share price to Equant shareholders of EUR4.30 per share.



Separately, France Telecom finalized the sale to institutional investors of 22,303,169 shares of PagesJaunes that it holds directly, representing 8% of the capital of PagesJaunes Groupe, through an accelerated placement. The placement was successfully completed at a price of EUR 19.75 per share.
http://www.francetelecom.com

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McLeodUSA Expands VoIP in 37 Markets

McLeodUSA has expanded its Preferred Advantage Dynamic Integrated Access to business customers in 37 markets across the company's 25 Midwest, Southwest, Northwest and Rocky Mountain state footprint. McLeodUSA first launched the VoIP service in the Denver, Dallas, Detroit and Chicago markets, which were launched late in 2004. http://www.mcleodusa.com

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FCC Not to Impose a Dual Carriage Requirement on MSOs

The FCC decided not to impose a "dual carriage" requirement on cable operators, which would have required them to simultaneously carry broadcasters' analog and digital signals. The FCC reasoned that mandatory dual carriage is not necessary either to advance the governmental interests as identified by Congress and the Supreme Court, or to achieve the digital television transition.



The FCC also affirmed its prior determination that cable operators are not required to carry more than a single digital programming stream from any particular broadcaster.
http://www.fcc.gov

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FCC Seeks Faster Rollout of Wireless Broadband

The FCC's Wireless Broadband Access Task Force issued a list of recommendations that the FCC could adopt to speed the deployment of wireless broadband services to consumers across America. These recommendations include:

• Promote voluntary frequency coordination efforts by private industry for license-exempt spectrum -- such as those already successfully underway in some of the more congested parts of the country -- to mitigate potential interference among users.



• Promote voluntary industry best practices among unlicensed users to maximize the potential opportunities for spectrum use.



• Facilitate reporting of violations of technical rules for license-exempt spectrum (e.g., improper power boosting and jamming) to ensure level playing field and minimize impermissible interference.



• Expedite the transition of the digital television (DTV) spectrum for advanced wireless services and public safety, given that the spectrum in the 700 MHz band is ideal for mobile broadband applications. In the meantime, the Task Force also recommends that the Commission consider additional mechanisms for allowing 700 MHz channels to be used for wireless broadband services before the completion of the DTV transition.



• Ensure that FCC rules are flexible enough to allow providers to pair spectrum asymmetrically to account for the unbalanced nature of broadband services, which typically requires a large amount of bandwidth for downstream communications, and less bandwidth for upload links. For mobile services, the Commission has traditionally paired two licenses of equal size, one for upstream and one for downstream communications.



• Apply a pro-competitive, innovative national framework for wireless broadband services -- one that imposes the fewest regulatory barriers at both the federal and state level -- to wireless broadband services. Such an approach would enable the greatest innovations, in terms of technologies and types of services, and would maximize consumer benefits. The Task Force recommended that the Commission consider several options for achieving this goal, including classifying wireless broadband either as an "information service" or an "interstate" service, or clarifying the scope of the deregulatory principles applied to Commercial Mobile Radio Services (CMRS) -- which enabled the rapid success of mobile voice and data services over the last decade.



• Continue to take a pro-active, forward looking approach to regulation as wireless broadband networks begin to be used in combination with other broadband service networks and services (e.g., regularly evaluate whether it is time to remove outdated rules, and accord an increasingly flexible regulatory environment for service providers to facilitate convergence).



• Build upon and improve specific existing FCC outreach efforts (e.g., relationships with federal agencies and state & local governmental organizations).

http://www.fcc.gov

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FCC Considers Intercarrier Compensation Proposals

The FCC has begun evaluating several proposals aimed at replacing the outmoded system of intercarrier payments with a uniform regime suited for competitive markets and new technologies. The current system relies on per-minute intercarrier payments that distinguish between different types of carriers and services, such as local and long-distance, or wireless and wireline, even though these distinctions often have no bearing on the cost of providing service. Furthermore, new technologies, such as Internet telephony, and new service offerings, such as bundled flat-rate packages, have eroded these distinctions.


At its open meeting, the FCC reported that four common themes for reform have emerged from the record developed in the Commission's 2001 Intercarrier Compensation NPRM.

• First, any approach should encourage the development of efficient competition and the efficient use of and investment in telecommunications networks.



• Second, any approach must preserve universal service support, which ensures affordable rates for consumers living in rural and high-cost areas. Any proposal that would result in significant reductions in intercarrier payments should include a proposal to address the universal service implications of such reductions.



• Third, any approach must be technologically and competitively neutral. Given the rapid changes in telecommunications technology, new rules must accommodate continuing change in the marketplace, provide regulatory certainty and not impede novel technology.



• Fourth, an approach that requires minimal regulatory intervention and enforcement is consistent with the competitive deregulatory environment of the 1996 Telecommunications Act. Proposals that rely on negotiated agreements between carriers might be preferable to regimes requiring detailed rules and regulations.

The FCC is now seeking comment on seven specific reform proposals. These include submissions from:

• Intercarrier Compensation Forum (ICF) -- The group represents a diverse group of nine carriers. The plan would reduce most per-minute termination rates from existing levels to zero over a six-year period.
  
  
• Expanded Portland Group (EPG) -- The group is comprised of small and mid-sized rural LECs. Its two-phase plan would eventually convert per-minute intercarrier charges to capacity-based charges.



• Alliance for Rational Intercarrier Compensation (ARIC) -- ARIC represents small rural providers serving high-cost areas. Its Fair Affordable Comprehensive Telecom Solution (FACTs) plan would unify per-minute rates at a level based on a carrier's embedded costs.



• Cost-Based Intercarrier Compensation Coalition (CBICC) -- The coalition represents competitive local exchange carriers, or CLECs. The plan would create a cost-based termination rate in each geographic area for all types of traffic.



• Home Telephone Company and PBT Telecom (Home/PBT) -- Home and PBT are rural local exchange carriers. The plan would replace the current regimes with connection-based intercarrier charges.



• Western Wireless -- a wireless carrier that receives universal service support in 14 states. Its plan would reduce intercarrier charges in equal steps over four years to bill-and-keep.



• NASUCA -- the National Association of State Utility Consumer Advocates. NASUCA's plan would reduce certain intercarrier rate levels over a five-year period.

All of the proposals can be reviewed on the FCC website.
http://www.fcc.gov/wcb/ppd/

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8x8 Enhances Packet8 VoIP Service

8x8 announced the addition of three new calling features for its Packet8 residential broadband telephone and videophone services:

• Phone-Based Management for Call Routing and Voicemail Configuration --allows subscribers to manage the configuration of their account by phone following voice prompt instructions.



• Toll Free Service Plan -- subscribers can inexpensively acquire toll-free number service for business or personal use in conjunction with any calling plan. The Packet8 Toll Free Service Plan includes 100 minutes of inbound toll-free calls and 3.9 cents a minute thereafter for inbound calls, regardless of the caller's location. A monthly service fee of $4.95 and one-time activation fee of $9.95 applies.



• Directory Assistance -- 411 Directory Assistance and Reverse Directory Assistance is now available to Packet8 subscribers for a $.75 per call fee. Both local and national directory assistance are accessible by dialing 411.

http://www.8x8.com/

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WSJ: Verizon Floats Bid for MCI

Verizon Communications has floated an informal offer to acquire MCI for about $6.3, according to The Wall Street Journal. The bid is priced near the offer made recently by Qwest Communications, although the report concludes that Verizon is a stronger potential partner for MCI and therefore its bid is likely to be favored. Neither company has commented on the merger rumors.
http://www.wsj.com

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BT Adds 813,000 DSL Lines in Q4 2004

BT added a record 813,000 DSL connections in the three month period ending 31-December-2004, representing a new connection every 10 seconds of every day during the quarter. BT now expects to achieve 5 million broadband DSL connections a year ahead of its original target.


Some highlights of BT's quarterly financial report:

• Group turnover was up 3%, excluding the impact of mobile termination rate reductions, at £4,584 million. Turnover was marginally up including the impact of mobile termination rate reductions



• New wave turnover was £1,135 million, up 35%, representing 25% of group turnover. New wave turnover is mainly generated from Information and Communications Technology (ICT) solutions and managed services, broadband and mobility. ICT turnover grew by 21% to £738 million. Broadband turnover increased by 98% to £253 million. Mobility turnover at £55 million achieved growth of 112%.



• Total consumer turnover in the third quarter was 6% lower (5%lower excluding the impact of reductions to mobile termination rates). New wave consumer turnover increased by 97%, driven by the continuing growth of broadband and mobility. Residential broadband connections increased by 90% and mobility connections increased to 179,000 at December 31, 2004 from 24,000 last year.



• Traditional consumer turnover declined 11% year on year. This decline reflects the impact of Carrier Pre-Selection (CPS) and broadband substitution.



• BT's estimated consumer market share declined by 1.3 percentage points compared to last quarter to around 63% whilst the estimated business market share declined by 0.5 percentage points to around 42%. BT's estimate of market share by volume of fixed to fixed voice minutes is based on its actual minutes, market data provided by Ofcom and an extrapolation of the historical trends.



• Wholesale (UK and Global Carrier) turnover increased by 7% (16%excluding the impact of reductions to mobile termination rates). UK Wholesale new wave turnover increased by 80% to £180 million mainly driven by broadband.



• Profit before taxation, goodwill amortisation and exceptional items of £545 million, up 4%.

http://www.btplc.com

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Sprint Outlines 2005 Plan

The U.S. telecom market is poised for growth in 2005, said Gary Forsee, Sprint's CEO, at the company's annual investment community meeting in New York, "particularly as consumers desire more and more data applications like gaming, special ringers and video streaming and as businesses increasingly insist upon an integrated communications experience in the office and on the go."

Sprint outlined the following financial expectations for 2005:

• Sprint continues to anticipate full-year low single-digit consolidated net operating revenue growth in 2005. Wireless revenues are expected to grow at a low double-digit rate driven by an increased customer base and continued strong average customer revenue.



• Local revenues are expected to decline at a low single-digit rate as strong growth in data services are expected to be offset by lower access lines.



• Long Distance revenues are expected to decline at a low double-digit rate on continuing lower yields.



• CAPEX for full-year 2005 is expected to be $4.0 billion to $4.2 billion. Approximately $2.7 billion to $2.9 billion is expected to be invested in Wireless as Sprint upgrades its network to EV-DO (Evolution Data Optimized) technology and focuses on expanding and strengthening its network coverage, deploying new services and supporting continued customer growth. Local has targeted capital of approximately $900 million to expand DSL coverage, add new retail outlets and continue its circuit-to-packet conversion. Long distance capital expenditures are expected to be approximately $300 million and include investments to maintain current facilities and enhance the voice network.

http://www.sprint.com

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Nokia Enables Localized Ads & Services on Smartphones

Nokia is introducing a Local Marketing Solution that will deliver localized and timed ads and services to customers' smartphones via short-range radio technologies, such as Bluetooth. The Nokia Local Marketing Solution enables mobiel operators and service providers to advertise their own and partner services in relevant places, at relevant times, on smartphones.


Nokia offered several examples of its Local Marketing Solution. For instance, in the morning, a user receives the bus schedule into her smartphone as she approaches the bus station. On her way to lunch, she passes by a local pizzeria, and receives the lunch menu with the day's special offering. In the pizzeria, she can check the local news from her smartphone. On her way home, she receives a bookmark from a video rental store, and decides to go in and rent a movie. Again, when approaching the bus station, she can easily buy the bus ticket with just a few clicks. Nokia said the information that the consumer receives would be filtered according to consumer's own pre-defined preferences.


The Nokia Local Marketing Solution consists of three elements: Nokia Local Info client software for the Nokia Series 60 devices, Nokia Service Point LMP 10 and Nokia Service Manager LMM 10 system. Service Points include several Bluetooth modules and a GPRS module, situated in selected service advertisement locations, for example in a store or on a street. A Service Point uses Bluetooth technology to transmit the service offerings to compatible smartphones that pass. The Service Manager system is centralized, and connected to Service Points via a GPRS network. Commercial availability is expected by Q3 2005.


"The Nokia Local Marketing Solution brings relevant services to consumers at the right time, and in the right place. This is focused marketing, and it all happens on the consumer's own terms", said Sakari Kotola, Director, Nokia Ventures Organization. "From the point of view of operators and service providers, the solution brings revenues through increased usage of services and network, with minimum investment."http://www.nokia.com

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Nokia Previews Fixed/Mobile Convergence at 3GSM

Nokia is launching a number of new products at next week's 3GSM World Congress in Cannes, including many aimed at fixed/mobile convergence based on the IMS architecture. These products include:

• The Nokia Telecommunications Application Server (TAS), a SIP application server that makes possible the convergence of legacy voice and SIP-driven VoIP communications by providing mobile telephony services independent of access. The TAS could be used to offer fixed and mobile VoIP end-users the same kind of telephony services as in today's mobile networks, such as Caller ID and SMS, as well as Intelligent Network features such as Prepaid. The Nokia TAS is built upon the 3GPP Rel 4 compliant Nokia MSC Server system. Its functionality can be added to any existing Nokia MSC Server with an upgrade. Nokia said trial deployments are already underway.



• Nokia is also launching its Dual Transfer Mode (DTM), a 3GPP-specified technology that enables simultaneous voice and data connections in GSM/EDGE networks. DTM enables new applications like video sharing, while enhancing service continuity when operators introduce WCDMA. The Nokia DTM end-to-end solution requires only a software upgrade to Nokia GSM/EDGE radio networks. The solution will be available for operator testing in Q4 2005 and commercially available in first quarter 2006.



• The Nokia Flexi Intelligent Service Node is a new product for helping operators of packet data networks to flexibly introduce and manage new data services for the mobile mass market and thus increase data service usage. It allows operators to control service access, charging, quality, and usage in a flexible and intelligent way when delivering advanced packet-based services. It supports a broad choice of charging models suited to a range of user traffic. It supports multi-access such as WLAN, Enhanced GPRS (EDGE), WCDMA 3G, and circuit-switched data. The Nokia Flexi ISN is available now.



• The Nokia Intelligent Content Delivery System release 3 increases the service and subscriber awareness of the Nokia intelligent Packet Core. As part of the release, the Nokia Intelligent Service Configurator (ICS) and Nokia Profile Manager (NPM) are introduced as pre-integrated elements of the ICD system. The Nokia ICS lets operators define, provision, and manage end-user services consisting of multiple service components, while the NPM allows IP services to be activated and charged on a subscription basis, plus it allows both operators and subscribers to create and modify personalized end-user profiles. Nokia Intelligent Content Delivery System release 3 also includes Double Wallet functionality, enabling business customers to charge work-related and personal data service usage to different accounts under the same subscription. The Nokia Intelligent Content Delivery System has already been deployed in 36 networks globally. Release 3 will be available in third quarter 2005.



• Nokia Push to talk over Cellular (PoC) Solution release 1.5 adds new features such as dial-out group calling, which allows users to initiate group calls to temporary groups, as well as MSISDN dialing, which lowers barriers for GSM subscribers by allowing them to use their normal mobile numbers for push to talk. The release also includes interface enhancements to allow the interconnection of PoC services between operators, an important feature as the market moves towards wider adoption of push to talk services. The release is available in second quarter 2005.



• Nokia Presence Solution 2.0 brings support for SIP, which allows operators to apply Presence to SIP-based applications, such as PoC. This will allow PoC users to see whether another mobile user is available for a PoC call before initiating the call. Release 2.0 will be available in second quarter 2005.

http://www.nokia.com

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BinOptics Receives $10 Million in Series B Funding

BinOptics, a start-up based in Ithaca, New York, $10 million Series B funding for its development of integrated microphotonic chips for datacom, telecom, and optical storage applications. BinOptics products are manufactured using a proprietary etched facet technology, which the company said significantly reduces the cost of production, testing, and handling compared to conventional laser processing. The technology also enables monolithic integration of multiple functions on a single chip because of its flexibility and high yield. The company's products include edge-emitting lasers with optional integrated monitoring detectors as well as the industry's first horizontal-cavity surface-emitting laser (HCSEL). The HCSEL is a high power, high reliability surface-emitting laser operating at the important 1310 and 1550 nm wavelengths, where vertical cavity surface emitting lasers (VCSELs) are not effective. The company plans to offer a HCSEL integrated with a high-speed detector to create a fully integrated optical transceiver chip for passive optical network (PON) systems in 2005.


Investors include FA Technology Ventures and ArrowPath Venture Capital, along with previous investors Draper Fisher Jurvetson and Cayuga Venture Fund II.
http://www.binoptics.com

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