Force10 Bridges SONET-to-Ethernet with POS Line Card

Force10 Networks introduced multi-rate packet over SONET/SDH (POS) capabilities for its TeraScale E-Series family of switch/routers, providing a means to bridge SONET and 10 Gigabit Ethernet networks. While new service provider deployments are using 10 GbE, there remains a technical challenge in bridging the transition from the installed base of SONET.



A new four-port multi-rate line card allows service providers to select between OC-3c/STM-1c, OC-12c/STM-4c and OC-48c/STM-16c speeds on a per port basis. Service providers can also select between SONET and SDH framing on a per port basis, as well as various encapsulation methods, to further simplify the architecture of transcontinental networks.



"By combining packet over SONET/SDH with a resilient, cost-effective Ethernet architecture, Force10 bridges the gap between legacy and next generation networks at a cost significantly lower than alternative solutions," said Sachi Sambandan, vice president of engineering for Force10 Networks.



The Force10 four-port OC-3c/OC-12c/OC-48c line card will be available in August at a list price of $100,000.

http://www.force10networks.com

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EC Approves Proposed Alcatel + Lucent Merger

The European Commission has cleared the proposed merger between Alcatel and Lucent Technologies. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. The main areas of concern had been in the sale of DSLAMs and optical networking equipment, where the combined company will hold considerable market shares. However, the EC concluded that network operators would be able to sufficiently constrain the merged entity through their countervailing power in bidding procedures that are a characteristic of the industry.http://europa.eu.int

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France Telecom Sells PagesJaunes to KKR

Following a competitive bidding process, France Telecom decided to sell its 54% stake in PagesJaunes Groupe to KKR (Kohlberg, Kravis Roberts & Co Ltd.), which is offering EUR 3.312 billion, representing a price per share of EUR 22. KKR intends to carry on PagesJaunes Groupe's strategy, which it believes has been successful since the IPO, relying on PagesJaunes Groupe' s management team and on the expertise and know-how of its employees. http://www.francetelecom.com

• In December 2005, Agilent Technologies completed the divestiture of its Semiconductor Products business to Kohlberg Kravis Roberts & Co. (KKR) and Silver Lake Partners for $2.66 billion.

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Telekom Austria selects Alcatel for Triple Play

Telekom Austria has selected Alcatel's IP-based network infrastructure and end-to-end video solution to support its recently launched aonDigital TV service to households in Vienna. The service offers more than 55 broadcast TV channels, video on demand and additional information service channels. The IP-based network infrastructure includes Alcatel's DSLAMs, IP routers and optical transport equipment. Alcatel also provided its end-to-end video solution, integrating other technology leaders in segments such as head-ends, set-top boxes and encryption systems. Financial terms were not disclosed.

http://www.alcatel.com

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Ixia Scales its Optixia Test Platform

Ixia introduced the next addition to its Optixia product line -- the Optixia XM test system and Optixia XM12 chassis -- featuring ultra-high Ethernet port density of 144 GbE or 36 10 GbE ports per 17.5 inch tall chassis. The new system delivers the highest test port density available today and maintains backward compatibility with previous Optixia systems and software.



Ixia said the new Optixia XM12 addresses the growing needs of equipment manufacturers and service providers to execute high performance, high density testing of Ethernet-based network equipment for rollout into metro networks.



In addition to high density Ethernet, the Optixia XM system supports common wide area network interfaces, including OC-3/12/48/192 POS, OC-3/12 ATM, Power over Ethernet, the Encryption Load Module for IPSec, and the Application Load Module for high performance application layer traffic.



"The Optixia XM is a significant evolution of the Optixia product line we introduced more than four years ago. The scalability and performance requirements of our customers continue to grow as larger networks are rolled out, and we have responded with a test platform that will take them into the future," said Errol Ginsberg, Ixia President and CEO. "Fundamental to the Optixia XM design is its adherence to our core design principles -- providing a single test platform for comprehensive Layer 2-7 testing, and maintaining compatibility with Ixia's existing products to ease customer migration without forklift upgrades."



The Optixia XM test system will be available in Q3 2006.

http://www.ixiacom.com

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Avaya Reports Revenue of $1.3 Billion, Lower Profits

Avaya's quarterly revenues increased 4.9 percent to $1.297 billion compared to $1.236 billion in the same period last year. Product sales worldwide rose 12 percent over the same period, with U.S. product sales rising 15 percent. The company's operating income for the quarter was $28 million. Avaya generated $181 million in operating cash flow and had $822 million in cash at the end of the quarter.



In the same quarter last year the company reported net income of $194 million or 40 cents per diluted share. These results include the net favorable impact of $123 million related to the settlement of certain tax matters and other deferred tax adjustments.



Avaya said its results were affected by $22 million in restructuring charges primarily in its EMEA region and a $29 million asset impairment charge partially offset by a $22 million benefit resulting from a favorable non-income tax settlement. The net negative pre-tax impact of these items was $29 million. The company also received a tax benefit totaling $21 million as a result of a transfer pricing adjustment and non-U.S. audit settlement.



"We delivered another solid quarter of product sales growth. Driven by a 23 percent increase in IP line shipments, overall product sales rose 12 percent, U.S. product sales increased 15 percent, and we shipped our 10 millionth IP line," said Garry K. McGuire, chief financial officer, Avaya. "While we are encouraged by these positive trends, higher costs and expenses during the quarter affected operating results. We remain focused on improving our cost and expense profile across geographies and businesses, particularly in Europe."http://www.avaya.com

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Spirent Partners with Anue Systems

Spirent Communications and Anue Systems, a provider of network emulation solutions for Ethernet, SONET/SDH, and Fibre Channel environments, announced a partnership to address Quality of Service (QoS) and Quality of Experience (QoE) issues across converged networks.



Anue's network emulators can be used with the Spirent TestCenter or Spirent Abacus test systems to simulate network delays, jitters, and other impairments. By running critical applications through an emulated environment, customers can accurately assess and ensure performance of their network services, equipment, and applications prior to service launch, thereby reducing in-service issues and network downtimes.



Spirent said its solution helps address several key challenges: voice, video and data applications load testing; voice and video quality measurements; Real-Time Protocol (RTP) with IPTV tests; testing of content such as unicast and multicast video and channel change times; Dynamic IP network impairment tests; and testing of all elements of Carrier Ethernet infrastructure. The Spirent solution also enables large-scale emulation of IP Telephony systems; customer premise devices (CPE) such as set-top-boxes, cable/DSL modems, and passive optical network (PON) optical network units (ONUs)/optical network terminals (ONTs); and other devices.

http://www.spirentcom.comhttp://www.anuesystems.com

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Cingular Adds 1.5 Million Subs, Reaches 57.3 Million Total

Cingular Wireless added 1.5 million net new customers during the second quarter of 2006 and served a total of 57.3 million subscribers at the end of June.



Some highlights:

• Postpaid customer additions were more than 1.0 million for the quarter, a 9.2 percent year-over-year improvement.



• Overall monthly subscriber churn for the quarter was a record-low 1.7 percent and postpaid churn was also the lowest- ever at 1.5 percent.



• Q2 revenues were $9.2 billion, an improvement of 7.1 percent over the same quarter a year ago and up 2.7 percent sequentially.



• Average revenue per user (ARPU) improved sequentially in the quarter to $48.84, but declined 3.3 percent from the year-ago second quarter. The year-over-year decline in ARPU is primarily the result of the increase in the number of lower ARPU wholesale customers in Cingular's base.



• Retail subscriber ARPU improved year-over-year on growth of data services. Data ARPU continued its growth trajectory in the second quarter of 2006, increasing 38.7 percent to $5.77 year-over-year and up 10.5 percent sequentially.



• For the second quarter of 2006, normalized operating income before depreciation and amortization (OIBDA) margin was 32.6 percent, up 370 basis points compared to the second quarter of 2005.

http://www.cingular.com

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BellSouth Adds 128,000 DSL and 63,000 DirecTV Customers, Loses 251,000 Residential Access Lines

BellSouth reported normalized revenues (including its 40% share of Cingular) of more than $8.8 billion for the second quarter of 2006, representing normalized revenue growth of 3.4 percent. Earnings per share (EPS) from continuing operations were 49 cents, up 14.0 percent compared to the second quarter of 2005.



"Three consecutive quarters of double-digit earnings growth reflects the strength of our broadband and wireless businesses," said Duane Ackerman, Chairman and Chief Executive Officer.



Some highlights for Q2 include:

• For the second quarter of 2006, operating free cash flow (defined as net cash provided by operating activities less capital expenditures) was $980 million.



• CAPEX for Q2 was $950 million, including approximately $130 million of incremental expenditures for Katrina restoration efforts.



• Communications Group revenues were $4.7 billion, a 1.0 percent increase over the second quarter of 2005. Growth in the mass-market and stabilization in the large business customer segments contributed to the improved results. Revenue streams for broadband data and long distance in these segments outpaced declines in the traditional voice business. Communications Group operating margin improved significantly to 24.9 percent, an increase of 130 basis points year-over-year and sequentially as the Company continued to focus on cost controls and held revenues stable.



• Network data revenues grew to $1.3 billion, a 10.0 percent increase over the second quarter of 2005. Retail data revenues growth of 18.7 percent year- over-year was driven by a 40.9 percent increase in retail DSL revenues and continued momentum from emerging retail data services indicative of market growth in IP broadband services.



• 3.3 million DSL customers -- up by 128,000 new customers for the quarter.



• 7.5 million long distance customers and at quarter-end served more than 60 percent of its mass-market customer base with long distance.



• Approximately 63,000 customers added DIRECTV service to their BellSouth bundle, resulting in a total of 691,000 customers who have included DIRECTV service in their communications packages.



• As of June 30, 2006, total access lines were 19.3 million, down 460,000 compared to March 31, 2006. Residential access line loss in the second quarter reflects seasonal loss patterns, wireless substitution and competition from cable telephony providers.



• Retail residential access lines were down 251,000. Retail small business access line gains were nearly 25,000, offset by a 48,000 decline in retail large business access lines that was predominantly driven by the loss of a single customer.



• Wholesale lines resold by BellSouth competitors declined 181,000 compared to March 31, 2006.

http://www.bellsouth.com

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SaskTel Selects 2Wire as Exclusive Supplier

SaskTel, the incumbent carrier in Canada's Saskatchewan province, has named 2Wire to be the exclusive provider of broadband connectivity and home networking equipment to all new SaskTel broadband subscribers. SaskTel currently offers 2Wire's ADSL residential gateways to its HomeNet service customers. Under the terms of the expanded alliance, SaskTel will also provide new subscribers with 2Wire's ADSL2+ residential gateways.

http://www.2wire.com

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SingTel to Test Alcatel's GPON Solution

Singapore Telecommunications has selected Alcatel for a Gigabit Passive Optical Networking (GPON) trial in the Asia Pacific region and the first residential Metro Ethernet trial in Singapore.



In March 2006, Singapore announced plans to create a Next Generation National Infocomm Infrastructure (Next Gen NII), which aims to evolve to a nation-wide platform for information sharing and communication. The Next Gen NII will be capable of delivering ultra-high speeds of 100 Mbps to 1 Gbps as early as 2008, enabling triple play services.



For the Metro Ethernet aspect of the trial, Alcatel is providing its 7450 Ethernet Service Switch and 5620 Service Aware Manager. http://www.alcatel.com

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Installed Sonus Equipment Carries 61 billion VoIP Minutes in Q2

Sonus Networks reported that in Q2, its customer deployed equipment drove nearly 61 billion minutes of IP voice traffic. In the month of June alone, Sonus-based networks carried 22 billion minutes of IP voice traffic, representing a nearly 70% increase compared to June 2005. In the month of June alone, Sonus-based networks carried 22 billion minutes of IP voice traffic, representing a nearly 70% increase compared to June 2005.



Sonus attributed the dramatic growth in traffic to a combination of factors including a number of new Sonus customers bringing their networks live, as well as the decision by major incumbent network operators to migrate more of their traffic from their traditional network infrastructures onto their Sonus-based network.

http://www.sonusnet.com

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Verizon Wireless Adds 1.8 Million Subscribers in Q2

Verizon Wireless added 1.8 million subscribers in Q2, all of which are retail customers, that is those customers that the company directly serves and manages. Verizon Wireless believes, based on publicly available information, that it has the most retail customers of any wireless carrier, with 52.6 million retail customers of its total 54.8 million customers.

http://www.verizonwireless.com

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BT to Provide Services to Philips in 40 Countries

Dutch electronics giant Philips awarded a 5-year contract to BT to provide services in more than 40 countries in EMEA (Europe, Middle-East and Africa) as well as global data infrastructure and access services. Financial details of the transaction were not disclosed.



Under the terms of the contract, BT will handle the management of Philips' MPLS-based network in EMEA together with voice services, managed mobility and certain metropolitan area networks within the region.



BT will also be providing Philips with global data access services including security services, firewalls, remote access services, IP address management and DNS management as well as conferencing services and Philips' intercontinental MPLS infrastructure.

http://www.bt.com

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Infinera and Internet2 Target 100 Gbps Services

Infinera announced an agreement with Internet2 covering the development, testing and deployment of 40 to 100 Gbps services. Key areas of technology development will include: lab and network-wide tests of super-lambda services including 40 and 100 Gigabit Ethernet service; advanced network service management and delivery leveraging GMPLS technology; and advanced virtual private network (VPN) services based on Layer One VPNs.



Last month, in a joint release with Level 3 Communications, Internet2 announced its aggressive plan to develop and deploy a new advanced nationwide research network to provide enhanced IP services as well as brand new experimental optical services to its members. Level 3 will deploy Infinera's Digital Optical Networking equipment across its infrastructure in support of Internet2's new network so that Internet2's users can provision optical circuits dynamically. The network will initially provide the research and education community with 100 Gbps of bandwidth, a tenfold increase over its previous network.

http://www.internet2.eduhttp://www.infinera.com

• The Internet2 Hybrid Optical and Packet Infrastructure (HOPI) is a national network testbed that allows researchers to experiment with new optical technologies, including dynamically provisioned wavelengths, circuit switched environments, and new transport protocols. The HOPI testbed uses facilities from Internet2's Abilene Network, the National Lambda Rail (NLR) network, the MANLAN exchange point, and regional optical networks. Each HOPI node consists of an Ethernet switch with 10GigE capabilities, a fiber cross connect switch, and servers to control HOPI's network infrastructure and measure network performance, all designed to model future optical infrastructures.



• The HOPI testbed is using HP's ProLiant DL360 G4 servers to provide monitoring and control plane capabilities.



• Force10 Networks is supplying its Force10 E-Series family of switch/routers for Internet2's Hybrid Optical and Packet Infrastructure (HOPI) project.



• In February 2006, National LambdaRail (NLR), a consortium of leading U.S. research universities and private sector technology companies, reached fully-operational status, providing advanced optical, Ethernet and IP connectivity over more than 15,000 miles of fiber across the United States. NLR has deployed nine Cisco CRS-1 Carrier Routing Systems across the country. The project is also using Cisco Systems' 15808 and 15454 optical transmission platforms.

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SteelBox Raises $10 Million for Video Switching

SteelBox Networks, a start-up based in Atlanta, has received $10,000,000 in venture funding from Sierra Ventures of Menlo Park, California and existing investors. SteelBox's initial market focus centers on intelligent switching, storage and high speed access for large scale video surveillance applications and networks.



SteelBox's video-over-IP switching equipment has been deployed in large-scale surveillance networks in terminals and mass transit venues. SteelBox has installations in the US, Europe and Asia where systems have been deployed to monitor highway and subway systems, and to help guard high security areas at seaports.

SteelBox Networks was founded in 2003 by executive and engineering veterans of Cisco Systems, Scientific Atlanta and Nortel Networks.

http://www.steelbox.com

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SOFTBANK Tests WiMAX (802.16e-2005) with Motorola

Motorola is supplying an end-to-end WiMAX (802.16e-2005)trial system including access points, an access network, and prototype WiMAX mobile handheld devices to SOFTBANK for testing in Tokyo. Expected to begin in September 2006, the five-month trial will focus on performance of WiMAX in the 2.5GHz spectrum with regards to throughput and range, as well as the speed of network handovers between access points.



Motorola will be deploying five WiMAX access points and 25 prototype WiMAX mobile handheld devices. The trial will also showcase MIMO (multi-input, multi-output) capabilities of Motorola's WiMAX solutions in supporting multi- antenna telecommunications systems as well as enabling greater data throughput and range. http://www.motorola.com

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Quake's SFP+ PHY Chips Slashes Cost of 10 GigE

Quake Technologies announced the availability of the industry's first integrated physical layer IC for all SFP+ 10 Gigabit Ethernet (10GE) applications. Quake's QT2035S is the first silicon device to integrate a standard XAUI-interface 10G Ethernet PHY, with complete SFP+ signal processing support.


SFP+ modules, by virtue of being 40% smaller than XFP modules, allow for full-density 48-port designs. Elimination of redundant electronics in the module reduces power consumption by at least 500mW per port while dramatically lowering end-user costs.



"The signal processing problem for SFP+ presents a significant challenge," said Stan Blakey, Quake's director of product architecture. "For SFP+, the PHY must provide equalization not only for various grades of installed-base fiber, but also for circuit board impairments. The programmable Electronic Dispersion Compensation engine in our QT2035S device is the first solution to provide the performance headroom required in SFP+ applications."



Quake estimates that the advanced signal processing technology in its new chip will reduce the cost of 10G optics to less than a quarter the price of today's solutions. By reducing silicon in the optical modules to a minimum and through economies of scale between FibreChannel and Ethernet production volumes, the cost of SFP+ modules is significantly lower than larger form factors.



"Today, the wholesale cost for a typical XFP module for short-reach 10G Ethernet is approximately $350. Using Quake's new QT2035S and SFP+ technology, the cost of a module for this same reach can be reduced to below $100," said Mitch Kahn, Quake's vice president of marketing.



"An additional benefit of the EDC performance of the QT2035S is that is allows us to use lower performance transmit optics, such as those for FibreChannel, and run them at 10G," continued Kahn. "The EDC engine compensates for the limited transmitter bandwidth; enabling over time a 10G short-reach SFP+ module with a cost very close to that of a FibreChannel SFP. At around $50, that's a 10x savings over today's technology."



Quake said SFP+ is not an entirely new technology; rather it is the natural evolution of SFP small form factor optics developed for 1G Ethernet and 1G, 2G, and 4G FibreChannel. SFP+ has been defined to support both 8G FibreChannel and 10G Ethernet. This will drive the same economies of scale that allowed for significant cost savings in the previous generation of 1/2/4G FibreChannel and 1G Ethernet.



Migration of the SFP form factor from 4Gbps to 10Gbps in SFP+ requires advanced signal processing in both receive and transmit directions. Quake's new QT2035S device is the first silicon solution to integrate a standard, XAUI-interface, 10G Ethernet PHY with complete SFP+ signal processing support.

http://www.quaketech.com

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Vyatta Releases its Open Source Enterprise Router

Vyatta, a start-up based in San Mateo, California, announced the availability of its enterprise-grade open-source router platform.



The Vyatta Open Flexible Router (OFR) is positioned as open-source alternative to today's expensive, inflexible closed-source solutions. The platform is designed for mid-sized enterprises or branch offices of large enterprises. The OFR software is available for free download from the Vyatta web site.



Vyatta is offering a software subscription service that enables enterprise customers to receive software updates and professional technical support.



It supports standard routing protocols, offers high availability features and security features, along with the ability to customize and add new features in an open source environment. The Vyatta Community, a public forum (linked from the Vyatta website) for Vyatta users and developers, features tools, discussions, blogs, newsfeeds, and provides an interactive resource for getting started with the OFR.

http://www.vyatta.com

• Vyatta is headed by Kelly Herrell, who previously was the SVP of Strategic Operations at MontaVista Software, an embedded Linux supplier. Its technical team is headed by Robert Bays, who previously was the CTO at Infiniroute Networks.



• "Vyatta" is a Sanskrit word meaning "open."

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Florida's FDN Communications Chooses Calix

FDN Communications, a 250,000-line CLEC based in Florida, has selected the Calix C7 multiservice access platform (MSAP) to help transform its network in the face of a changing regulatory environment and accelerating consumer expectations. FDN Communications will initially deploy the Calix C7 in its 170 central office collocations.



Founded in 1998, FDN Communications currently provides a full suite of voice and data services to over 70,000 business and residential customers and has more than 250,000 access lines. In addition, FDN provides web hosting, collocation, and application services throughout its operating footprint in the Southeast US.



Calix said that with UNE-P (unbundled network element--platform) availability and pricing being changed in line with FCC regulatory modifications, CLECs everywhere are looking for multiservice access platforms that maximize the range of services that can be delivered and provide greater network flexibility.
www.fdn.com.

http://www.calix.comhttp://www.fdn.com

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DragonWave to Provide Wireless Ethernet Backhaul for EarthLink's Muni Wi-Fi Networks

EarthLink has selected DragonWave's AirPair solution for licensed wireless Ethernet backhaul for their municipal wireless network deployments. EarthLink has already been selected as the operator in Philadelphia, New Orleans as well as Anaheim and Milpitas, California. The DragonWave solution provides a wireless backhaul solution, allowing Earthlink to roll out new high-bandwidth services such as free Internet access in some parks and public spaces, roaming capabilities for providers of hot spot access and daily or weekly access for occasional users across the United States. Financial terms were not disclosed.



DragonWave's AirPair product operates within both licensed and unlicensed radio frequencies of 11-to-38-GHz range, ensuring
interference-free performance for customers' traffic and EarthLink will deploy the solution in the backhaul layer of the company's wireless networks. The DragonWave solution provides scalable, ultra-low latency, wire-speed native Ethernet connectivity up to 500 Mbps full duplex.



DragonWave is headquartered in Ottawa, Canada.

http://www.dragonwaveinc.comhttp://www.earthlink.com

• In January 2006, Earthlink signed a contract with Motorola for it to provide wireless equipment, design, installation and system integration for the initial five major cities where EarthLink will deploy municipal Wi-Fi Internet access networks. Financial terms were not disclosed. Motorola will provide its MOTOwi4 portfolio of products, including its Canopy high-speed backhaul and Wi-Fi mesh network equipment supplied to Motorola by Tropos Networks.

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