Sprint Reaffirms Commitment to Nextel iDEN National Network

Sprint reiterated its continuing commitment to the Nextel iDEN National Network ,saying it intends to retain and rejuvenate this important asset. As part of that commitment, Sprint and Motorola have extended their long-term partnership to provide enhanced network and infrastructure support, including software upgrades, and to provide the best products and services to customers. Financial terms were not disclosed.




"The iDEN network is a key differentiator for Sprint, as it allows us to offer products and services no other carrier in the industry can match. We continue to build on our support for our industry-leading push-to-talk Nextel Direct Connect franchise through our aggressive marketing efforts which exploit the unique features and functionality of the iDEN network," said Dan Hesse, CEO of Sprint.


On Nov. 2, Sprint will launch the Motorola i576, and later this year, will debut the BlackBerry Curve 8350i smartphone. These devices allow customers to access national sub-second call-set-ups, as well as Bluetooth and GPS. In addition, Sprint plans to launch a total of eight new Nextel Direct Connect handsets as part of its new device portfolio in 2009, with five expected to launch during the first half of the year.


In addition, Boost Mobile, Sprint's prepaid business, is being refocused to compete aggressively for customers impacted by the current economic environment with a lower per-minute rate and other attractive pricing options. Boost Mobile offers phones and pre-paid services with no long-term contracts, credit checks or activation fees, primarily on the Nextel National Network.


In early 2009, Boost Mobile plans to introduce Boost Unlimited on the iDEN network, offering a nationwide home calling area for one monthly fee.http://www.sprint.com

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BT Trims Guidance Citing Weakness in Global Business Services

BT Group plc trimmed its guidance for the second quarter (ending 30-September-2008) of its 2008/9 financial year and for the full year. For the second quarter, the company now expects to report that group revenue that will be ahead of expectations but that EBITDA and earnings per share will be slightly below expectations. BT Retail, BT Wholesale, Openreach and Other activities will deliver results in line with or ahead of expectations.


However, the company said the performance of BT Global Services will be disappointing. Revenue growth in this division will remain strong, up 15 per cent year on year, but EBITDA of around £120 million will be significantly below expectations. The fall in EBITDA is due to slower than anticipated delivery of efficiency savings and the continued decline in higher margin UK business.


BT expects to report a year on year improvement in free cash flow for the quarter. The Board intends to declare an interim dividend of 5.4 pence per share in line with last year.


Ian Livingston, Chief Executive of BT, said: "BT is performing in line with or ahead of expectations in all but one of its divisions, so the results in BT Global Services are particularly disappointing. We acknowledge that the performance in this part of the group is unsatisfactory and are committed to taking decisive action to rectify the situation. BT Global Services already has a number of cost efficiency and margin improvement initiatives in place and we are now focused on speeding up the execution of these initiatives which will deliver margin improvement going forward. We intend to set new targets for this division as improved performance is delivered."


In addition, BT announced that François Barrault resigned as Chief Executive, BT Global Services and as a BT Group plc Board director on October 30th. He has been replaced by Hanif Lalani, currently Group Finance Director.http://www.btplc.com

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FCC Allows GlobalStar / Open Range to Offer MSS/WiMAX

The FCC granted in part a request by Globalstar to modify its authority for an ancillary terrestrial component ("ATC") to be operated in conjunction with the Globalstar Mobile Satellite Service ("MSS") system. Specifically, the FCC modified Globalstar's license to permit use of the WiMAX air interface protocol. Globalstar and its spectrum lessee, Open Range Communications, are now permitted to commence deployment of a broadband service consistent with a $267 million loan commitment from the Department of Agriculture's Rural Development Utilities Program.


According to the FCC order, Globalstar plans to collaborate with one or more "terrestrial partners" to offer MSS
bundled together with ATC broadband service. To that end, Globalstar has entered into a spectrum lease agreement with Open Range. Under the terms of the agreement, Open Range would construct and operate an ATC network using S-band spectrum leased from Globalstar. The two companies would provide MSS/ATC service to customers equipped with dual-mode handheld terminals, Open Range providing the ATC service and Globalstar providing the MSS component.


The first-generation mobile device for the Globalstar/Open Range rural broadband service offering would be a MSS/ATC handheld unit based on the same architecture as Globalstar's SPOT Satellite Personal Tracker.


For the initial rollout of the Globalstar/Open Range service offering, the existing SPOT device would be adapted to incorporate a WiMAX broadband modem for access to the Globalstar/Open Range ATC network through a standard USB connection to
laptop computers or connection to VoIP phones. Open Range plans to deploy these first-generation broadband ATC services beginning in the second quarter of 2009, first to approximately 2,500 customers in 5 markets in a "proof-of-concept
deployment." These customers will receive the first generation device with one-way only, low-data rate MSS capabilities, but will be offered an exchange upgrade when a newer device becomes available beginning in early 2010. The newer device will be upgradeable to include a chipset that is capable of supporting two-way high-speed MSS. This device would be deployed in approximately 189-217 markets. The chipset, to be manufactured by Hughes Network Systems, is scheduled to become available in production quantities in early 2011.http://www.fcc.gov

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Nortel Offers Energy Saving Incentive to Data Center Customers

Nortel introduced a promotion program that offers discounts based on three times the estimated annual energy consumption costs of a new Nortel data network solution to its customers in Europe, Africa and the Middle East (EMEA). With the promotion, Nortel is providing a price discount equivalent to three times the estimated current yearly power bill of the data network configuration purchased.


The discount value is calculated using the "Nortel Energy Efficiency Calculator". The energy efficiency tool was created by Nortel to enable decision makers to measure their energy consumption costs and identify the cost-saving opportunities of working with a Nortel data center solution. The Calculator enables customers to input various network deployment alternatives in network design and discover the potential energy cost savings of a Nortel solution, or even when a Nortel-for-Nortel upgrade will provide the return on investment.


Nortel said its gear consume up to 40 percent less power that similar offerings from a major competitor, based on independent third-party tests conducted by the Tolly Group.


The 'Nortel Powers Your Network Promotion' runs until December 31, 2008 and is available via Nortel's EMEA channel of accredited resellers.
http://www.nortel.com

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Cisco Boosts Investment in VMware

Cisco will acquire an increased equity stake in VMware. Specifically, the company will purchase 500,000 shares of VMware Class A common stock currently held by Intel Corporation for approximately $13.3M. Upon closing of the investment, Cisco will own approximately 1.7% percent of VMware's total outstanding common stock.


Cisco said its purchase is intended to build on the strong inter-company collaboration between Cisco and VMware in the adoption of the companies' virtualization products and solutions that address the intersection of virtualization and networking technologies.

http://www.cisco.com

• In September, 2008, Cisco and VMware announced several joint initiatives in the data center virtualization market including the launch of the The Cisco Nexus 1000V distributed virtual software switch, enhanced professional services and reseller certification training.

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NTT DOCOMO Outlines Plans for Next Gen Services

NTT DOCOMO outlined a wide-ranging plan to be implemented between 2008 and 2012 that will transform the company from being primarily a mobile voice operator in a mature market into a provider of a advanced services that enrich people's lives.


After a period of rapid expansion, the Japanese mobile communications market has entered a mature phase. Now that total subscriptions exceed 100 million, it is difficult to expect further growth on a significant level unless breakthroughs are made. In addition, customers' values have diversified and their demands have become increasingly sophisticated.


DOCOMO believes that the market has potential for significant growth if services that take advantage of unique mobile properties -- such as real-time immediacy, personal authentication and geo-location -- can be developed in conjunction with the evolution of networks and handsets. The increasing adoption of open-platform handsets and entry of new global players will produce new services that transcend conventional boundaries and thereby propel further advancements and diversification in the market.


Perceiving this as an opportunity, DOCOMO said it intends to drive innovation in collaboration with a wide range of partners on a global scale, committing the company to taking on the challenge of creating new value by leveraging the virtually unlimited potential of mobile phones.


Given the high level of market saturation and competition, DOCOMO is also undertaking steps to strengthen its core business. Chief among these is an effort to boost packet ARPU by expanding the uptake of video services and pushing flat-rate plans for packet access. The company will expand the uptake and usage of smart phones and data cards, etc., which are expected to see a growth in demand in line with the expansion of the market for second-phones used mainly for data access, etc.


DOCOMO will also trim expenses by 10 percent. This will include a nationwide optimization of customer call centers and
bill collection operations, as well an an improved supply chain management and nationwide optimization of logistics operations. The company will implement measures to reduce greenhouse gas emission from its network facilities by introducing solar power systems and adopting other natural energy sources under the "Green NTT" initiative.


In terms of growing its network, DOCOMO plans to roll-out LTE from 2010, as one of the first adopters in the world. It also expects LTE to be adopted as the mainstream strategy of other global operatos. In March 2008, NTT DoCoMo demonstrated a downlink transmission rate of 250 Mbps over a high-speed wireless network in an outdoor test of an experimental Super 3G system for mobile communications. The "Super 3G" system trial has been underway using an actual wireless environment near its R&D labs in Yokosuka, just south of Tokyo, since February.

In terms of next-gen handsets, DOCOMO plans to adopt open platforms supporting enhanced hardware and software. It envisions a wide diversification of designs and user interfaces. DOCOMO will contribute to a globally common handset platform leveraging the technical/service advancements achieved through the commercial introduction of Linux/Symbian handsets, and bundling DOCOMO-specific software in a package. DOCOMO will aim to advance services by optimizing the allocation of functions between the handset and network. For example, by partially dispersing the processing load to the network leveraging its high-speed, low-latency and large-capacity characteristics, it becomes possible to deliver extremely rich services. An example of this could be a natural language translation service between Japanese and French. The handset would have only a thin client. Japanese would be spoken into the handset for translation processing in the network. A full translation into French would be delivered.


DOCOMO seeks to expand geographic coverage and improve the quality of roaming service by leveraging the CONEXUS alliance, which includes as its members KT, smart, FarEasTone, Hutchinson, BSNL, indosat, etc.


In terms of investments, DOCOMO will will make investments in or form alliances with content providers, especially video content providers that add value to the network. DOCOMO is also willing to invest in companies developing elemental handset-related technologies required to realize various advanced services and to reduce costs.


DOCOMO is also setting its sights on larger, social goals. The company will expand its research aimed at creating an infrastructure that contributes to the development of society. It can do so by leveraging such things as traffic data, GPS location and other information from the mobile population. Such data could be useful to predict future trends and aid in the development of safe and environmentally-friendly cities. DOCOMO said it is conduct ing such reseach in collaboration with national/local governments and various industry partners.


A 27-page PowerPoint presentation is online.http://www.nttdocomo.com/pr/2008/001419.html

• Last month, NTT DOCOMO has selected Fujitsu to provide Nokia Siemens Networks' core technology for its Super 3G / Long Term Evolution core network. Fujitsu and Nokia Siemens Networks have agreed to cooperate on jointly developing the Service Architecture Evolution (SAE) Gateway, including the Serving Gateway and the PDN Gateway, for the Super 3G project's Long Term Evolution (LTE) core. Financial terms were not disclosed. The selection of SAE Gateway vendors means NTT DOCOMO is on track to be among the world's first operators to introduce LTE into its network.

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