PMC-Sierra's Q3 Revenues Up 6% Sequentially to $130.9 million

PMC-Sierra reported Q3 2009 net revenues of $130.9 million, an increase of 6 percent compared to $123.2 million in the second quarter of 2009 and 6 percent lower than net revenues of $139.4 million reported in the third quarter of 2008. Net income (GAAP) was $27.8 million (GAAP diluted earnings per share of $0.12) compared with net income of $7.8 million (GAAP diluted earnings per share of $0.03) in the second quarter of 2009 and net income of $4.5 million (GAAP diluted earnings per share of $0.02) in the third quarter of 2008.


"In the third quarter of 2009, we benefited from improved demand in our Storage business, led by the continued ramp in our new 6Gb/s SAS RAID-on-Chip device at H-P, as well as growth in our Microprocessor business," said Greg Lang, president and chief executive officer of PMC-Sierra. "This past quarter, we achieved the highest level of non-GAAP operating income in the last nine years on revenue that was 6 percent below peak quarterly revenue last year."http://www.pmc-sierra.com

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Juniper Posts Preliminary Q3 2009 Financial Results

5Juniper Networks reported preliminary Q3 net revenues of $823.9 million, up 5 from $786.4 million reported in the second quarter of 2009 and down 13% on a year-over-year basis. The company posted GAAP net income of $83.8 million, or $0.16 per diluted share, and non-GAAP net income of $122.5 million, or $0.23 per diluted share for the third quarter of 2009.


"Juniper is driving execution and gaining momentum at a time when visibility in key areas of our business is beginning to improve,' said Kevin Johnson, Juniper's Chief Executive Officer. 'We are delivering on our R&D roadmap and customers are embracing our offer of integrated routing, switching and security on a common software platform -- JUNOS. Even as our optimism grows, macroeconomic conditions remain uncertain and we will continue to balance sound financial management with our investments in innovation and customer satisfaction.'
http://www.juniper.net

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ZyXEL Announces Multi-Service VDSL2, 802.11n Wireless Gateway

ZyXEL Communications introduced a VDSL2 gateway with embedded 802.11n wireless technology. The gateway can automatically switch between high-speed VDSL over PTM and legacy ADSL2+ over ATM, allowing operators to use the one device for subscribers both inside and outside the VDSL2 loop. It also features TR069 for remote management, 802.11n wireless, 4-port switch and firewall .
http://www.us.zyxel.com

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Overture Interoperates with Cyan's Packet Optical Transport Platforms

Overture Networks has completed interoperability testing between its UTS4000 Carrier Ethernet edge and aggregation solutions and Cyan's Z-Series multi-layer transport platforms. The Overture Intelligent edge enables fine-grain Ethernet service management and converged DS1 services to cell sites for 3G and 4G applications and to enterprise locations for IP and Ethernet service delivery. Cyan multi-layer transport platforms integrate DWDM, wavelength switching, and 1GigE/10GigE Ethernet switching into a large-scale transport and aggregation solution. The combined solution offers the following advantages:

• Converged Ethernet and DS1 pseudowire services over a Native Ethernet infrastructure



• Integrated Ethernet and DWDM transport/switching for increased CAPEX efficiency and scalability



• High scalability and CAPEX savings for Native Ethernet aggregation vs. standalone Ethernet switches or SONET

http://www.overturenetworks.com

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Metaswitch Confirms IP Routing Protocol Software at UNH-IOL Lab

Metaswitch Networks has successfully completed a further round of multi-vendor interoperability testing at the University of New Hampshire InterOperability Laboratory (UNH-IOL) for all of its unicast and multicast IP Routing network protocol products -- covering the OSPFv2, OSPFv3, ISIS, RIP, BGP, PIM and IGMP/MLD protocols.


"Since the last major test round at UNH-IOL, the standards have been evolving, and we have been adding features and additional support to our products. Our customers -- including every major equipment vendor in the industry -- look to us to ensure ongoing compliance with the latest industry specifications, so that their products, in turn, are ready for deployment in the real world," said Jon Berger, Core Development Manager in Metaswitch's Network Protocols Division. "Our collaboration with UNH-IOL is therefore important for the industry as a whole, as it provides an important validation of our technology in an independent, vendor-neutral environment."http://www.iol.unh.eduhttp://www.metaswitch.com

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IP Infusion Announces ZebOS Internet Route Server

IP Infusion announced its ZebOS Internet Route Server -- a Linux-based platform that will enable service providers to remotely view, monitor, filter and track routes on their networks, thus mitigating Border Gateway Protocol (BGP) hijacking and other DOS attacks.

BGP hijacking exploits the framework of BGP Internet routing protocol for bad configuration that allows propagation of illegal routing information through BGP signaling, resulting in "black-holing" and disruption of services. The ZebOS Internet Route Server solution, paired with support for anti-BGP hijacking, provides a low-cost, robust and flexible implementation to manage critical routing information exchange as well as reduce or eliminate these attacks.

The ZebOS Internet Route Server will include a fully configured, out-of-the-box server, which will be delivered with the route server application loaded and can be used for route-viewing, monitoring and policy controlled route transmission in the control plane. Implementation of the ZebOS Internet Route Server supports instantiation of a BGP view for multiple clients that will allow network operators to easily group their BGP peers based on their actual requirements and assign unified policies for both inbound and outbound traffic.

"As global Internet traffic moves across different, autonomous systems, it is extremely important to ensure that the routes are properly monitored, managed and filtered among provider peers," said Koichi Narasaki, president and CEO, IP Infusion. "With our innovative ZebOS Internet Route Server, IP Infusion now offers scalable services for BGP monitoring, tracking and filtering of various routes at Internet exchanges. The ability for IP Infusion to offer a solution that eases concerns over network stability will provide a competitive edge to Internet service providers in their deployment of new, state-of-the-art, converged services."http://www.ipinfusion.com

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Solera Provides Forensics for Simulated Cyber War

White Wolf Security, which organizes of live cyber warfare exercises, has selected Solera Networks to provide network forensics solutions for these simulated exercises.. Network forensics has become a key weapon in the cyber security arsenal, enabling rapid response in the event of a breach or attack. Acting like a camera in a bank, when a cyber attack occurs, network forensics solutions provide a complete record of all network activity to help determine the point of entry for the breach, what was affected, what data was compromised and the party that was responsible, often within hours.


Solera Networks supplies appliances that can capture and record all network traffic at 10 Gbps (as certified by Miercom Labs). This ensures a complete historical record of all network traffic. Solera Networks also offers a software-only version of its appliance for virtual environments and easy transport.
http://www.soleranetworks.com
http://www.whitewolfsecurity.com

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I.T.U. Approves Micro-USB Universal Phone Charger standard

The ITU approved an energy-efficient, Micro-USB one-charger-fits-all new mobile phone solution.
The standard is expected to significantly cut the number of chargers produced, shipped and subsequently discarded as new models become available, the new standard will mean users worldwide will be able to charge their mobiles anywhere from any available charger, while also reducing the energy consumed while charging.


The new UCS standard was based on input from the GSMA, which predicts a 50 per cent reduction in standby energy consumption, elimination of 51,000 tonnes of redundant chargers, and a subsequent reduction of 13.6 million tonnes in greenhouse gas emissions each year.


The ITU said it is seeking to have the essential role of information and communication technologies (ICTs) recognized in the draft Copenhagen Agreement as a key part of the solution towards mitigating climate change.
http://www.itu.int

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Ericsson Reports Fall in Network Equipment Sales, Rise for Professional Services

Ericsson reported Q3 sales of SEK 46.4 billion, down 4% year-over-year for comparable units, i.e. excluding Ericsson Mobile Platforms, and down 12% adjusted for currency exchange rate. Sequential sales decreased 11%, negatively impacted by currency exchange rate effects, seasonality and a reduced scope of the renewed managed services agreement in Italy. The lower year-over-year sales in Networks and Multimedia were partly offset by stronger sales in Professional Services.


Ericsson said the rapid growth in demand for mobile broadband continues although the growth does not yet offset this year's lower demand for GSM.


"Sales of network equipment declined due to lower demand in the current tougher market environment. Despite lower volumes, Network margins remain stable. The strong development in Professional Services continued," stated Carl-Henric Svanberg, President and CEO of Ericsson.


The gross margin, was flat sequentially despite the lower sales, and decreased only slightly year-over-year to 36.2% (37.0%). The year-over-year change is largely attributable to the sales mix, with a higher proportion of network rollout and professional services, efficiency gains and some currency exchange rate effects.
http://www.ericsson.com

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FCC Adopts Draft Rules for Internet Openness

The FCC voted unanimously to adopt a draft set of rules to codify and supplement existing Internet openness principles while seeking public input on permanent regulations. Under the draft rules, a provider of broadband Internet access service may not:


1) prevent any of its users from sending or receiving the lawful content of the user's choice over the Internet;


2) prevent any of its users from running the lawful applications or using the lawful services of the user's choice;


3) prevent any of its users from connecting to and using on its network the user's choice of lawful devices that do not harm the network; or


4) deprive any of its users of the user's entitlement to competition among network providers, application providers, service providers, and content providers.


5) subject to reasonable network management, a provider of broadband Internet access service must treat lawful content, applications, and services in a nondiscriminatory manner.


6) subject to reasonable network management, a provider of broadband Internet access service must disclose such information concerning network management and other practices as is reasonably required for users and content, application, and service providers to enjoy the protections specified in this rulemaking.


These six principles would apply to all platforms for broadband Internet access, including mobile wireless broadband, while recognizing that different access platforms involve significantly different technologies, market structures, patterns of consumer usage, and regulatory history.


Reasonable network management is defined to include practices employed by a provider of broadband Internet access service such as:

• to reduce or mitigate the effects of congestion on its network or to address quality of-service concerns;



• to address traffic that is unwanted by users or harmful;



• to prevent the transfer of unlawful content, such as child pornography; and



• to prevent the unlawful transfer of content, such as to prevent copyright infringement.

The draft rules also permit other reasonable network management practices.

The FCC is seeking public comment on the need for rules concerning specialized or managed IP services, which might leverage broadband connections but be different from the public Internet. Such services could include voice and subscription video services, certain business services provided to enterprise customers, and
specialized applications like telemedicine, smart grid, or eLearning offerings.


The FCC also noted that nothing in its draft rules supersedes any obligation a broadband Internet access service provider may have -- or limits its ability -- to deliver emergency communications, or to address the needs of law enforcement, public safety, or national or homeland security authorities, consistent with applicable law.


"Given the potentially huge consequences of having the open Internet diminished through inaction, the time is now to move forward with consideration of fair and reasonable rules of the road, rules that would be enforceable and implemented on a case-by-case basis. Indeed, it would be a serious failure of responsibility not to consider such rules, for that would be gambling with the most important technological innovation of our time," stated FCC Chairman Julius Genachowski.
http://www.fcc.gov

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Broadcom's Revenue Rises 21% Sequentially, Down 3% YOY

Broadcom reported Q3 net revenue of $1.254 billion, up 20.6% compared with the $1.040 billion reported for the second quarter of 2009 and a decrease of 3.4% compared with the $1.298 billion reported for the third quarter of 2008. Net income (GAAP) was $84.6 million, or $.16 per share (diluted), compared with GAAP net income of $13.4 million, or $.03 per share (diluted), for the second quarter of 2009, and GAAP net income of $164.9 million, or $.31 per share (diluted), for the third quarter of 2008.


"This strong revenue growth is well above the semiconductor industry growth rate, and was driven by a combination of our target markets continuing to recover, new product ramps and the breadth of Broadcom's product line," said Scott A. McGregor, Broadcom's President and CEO.
http://www.broadcom.com

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Verizon's FiOS VOD Reaches 18,000 titles per Month

Verizon's FiOS TV service has increased its Video on Demand (VOD) collection to more than 18,000 titles per month. Verizon claims its VOD library is now nearly twice the size of the country's largest cable provider. In recent months Verizon also has added some 1,000 new high-definition titles to FiOS TV VOD -- expanding its collection by 70 percent -- to give subscribers a choice of more than 2,400 monthly VOD programs in HD.
http://www.verizon.com

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Nokia Files Patent Claims Against iPhone

Nokia filed a patent infringement lawsuit against Apple claiming that the iPhone infringes Nokia patents for GSM, UMTS and wireless LAN (WLAN) standards. The ten patents cover wireless data, speech coding, security and encryption. Nokia said the patents are infringed by all Apple iPhone models shipped since the iPhone was introduced in 2007.
http://www.nokia.com

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AT&T Adds 3.2 Million iPhones, 240K U-Verse TV Subscribers in Q3

AT&T added 2.0 million increase in total wireless subscribers in Q3 2009 to reach a total wireless customer base of 81.6 million, up 6.7 million over the past year. AT&T added 4.3 million postpaid 3G integrated wireless devices, the largest quarterly increase in the company's history. This included 3.2 million iPhone activations, also the company's largest quarterly total to date.


Third-quarter revenues totaled $30.9 billion, net income attributable to AT&T was $3.2 billion, diluted earnings per share totaled $0.54 and cash from operating activities totaled $9.7 billion.



The company said its ongoing cost controls, strong wireless gains, further expansion of AT&T U-verse services and continued double-digit growth in revenues from strategic business products offset declines in voice, legacy data and print advertising products. Versus the second quarter of this year, consolidated revenues were up 0.4 percent, marking the company's second consecutive quarter with a sequential revenue increase. Consistent with results in the third quarter and year to date, AT&T expects consolidated revenues for the full year 2009 will be slightly below 2008 results.


Some highlights of the Q3 quarterly report:

Wireless

• Retail postpaid net adds totaled 1.4 million -- the second highest third-quarter total in the company's history, behind only the third quarter of 2008, which included a strong iPhone 3G launch -- and were up 20.1 percent versus results in the second quarter of this year.



• Total wireless average monthly subscriber churn reached a record low of 1.43 percent, down from 1.69 percent in the year-earlier quarter. Postpaid churn improved from 1.22 percent in the year-earlier quarter to 1.17 percent.



• Over the past year, the number of postpaid integrated devices on AT&T's network more than doubled, and at the end of the third quarter, 41.7 percent of AT&T's 63.4 million postpaid subscribers had integrated devices. The average ARPU for integrated devices on AT&T's network continues to be 1.8 times that of the company's nonintegrated-device base.



• Forty percent of iPhone activations are new customers for AT&T.



• Wireless data revenues -- from messaging, Internet access, access to applications and related services -- increased $916 million, or 33.6 percent, from the year-earlier third quarter to $3.6 billion, more than double the company's total in the third quarter two years earlier.



• Data represented 29.4 percent of AT&T's third-quarter wireless service revenues, up from 24.2 percent in the year-earlier quarter and 18.4 percent in the third quarter of 2007.



• Wireless text messages on the AT&T network exceeded 120 billion, nearly double the total for the year-earlier quarter.



• ARPU increased 3.8 percent versus the year-earlier quarter to $61.23. This compares with 2.3 percent year-over-year growth in the second quarter of this year and marks the seventh consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. On a sequential basis, postpaid ARPU was up 1.7 percent. Postpaid data ARPU reached $18.37, up 25.0 percent versus the year-earlier quarter and up 3.7 percent sequentially.



• 2009 wireless network initiatives include adding about 2,000 new cell sites; adding about 100,000 new circuits for backhaul -- doubling number of fiber-served cell sites; expanding 3G to about 4,400 sites, covering more than 370 markets by end of year; completing the 850 MHz spectrum conversion to 3G; and increasing Wi-Fi connections up 4X over 3Q08 -- >20,000 U.S. hotspots, 125,000 globally.

Wireline

• AT&T U-verse TV subscribers increased by 240,000 -- versus a net gain of 232,000 in the year-earlier third quarter -- to reach 1.8 million, up more than 1.0 million over the past year.



• At the end of the third quarter, AT&T's U-verse deployment passed more than 20 million living units. Companywide penetration of eligible living units was above 12 percent, and across areas marketed to for 24 months or more, overall penetration now exceeds 20 percent.



• AT&T U-verse broadband had a net subscriber gain of 252,000 subscribers, offseting declines in traditional DSL connections for a 90,000 net gain in wireline broadband connections. Total broadband connections, which include wireline subscribers and wireless customers with 3G LaptopConnect cards, increased by 138,000 in the quarter to reach 17.1 million.



• Broadband, U-verse TV and U-verse Voice now represent 32.4 percent of AT&T's consumer wireline revenues, up from 23.2 percent in the year-earlier third quarter and 18.7 percent in the third quarter of 2007.



• AT&T had 45.7 million total consumer revenue connections at the end of the third quarter, compared with 46.3 million at the end of the second quarter of 2009 and 47.5 million at the end of the third quarter of 2008, reflecting declines in traditional voice access lines partially offset by increases in broadband, TV and VoIP connections.



• Revenues from new-generation Ethernet, VPNs, hosting, IP conferencing and application services grew 16.6 percent versus the year-earlier third quarter and were up 5.2 percent sequentially.



• Business IP data revenues grew 6.8 percent versus the year-earlier third quarter and were up 3.1 percent sequentially. This compares with 5.8 percent year-over-year growth and a slight sequential decline in the second quarter of this year.



• AT&T's IP data gains continue to be led by high-teens percentage growth in VPN revenues. More than 60 percent of AT&T's frame customers have made the transition to IP-based solutions, which allow them to easily add managed services such as network security, hosting and IP conferencing on top of their infrastructures. In the third quarter of 2009, IP revenues represented 31.7 percent of AT&T's total business data revenues, up from 29.3 percent in the year-earlier quarter and 26.1 percent in the third quarter of 2007.

http://www.att.com

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Tellabs Acquires WiChorus for $165 Million for Packet Core

Tellabs agreed to acquire WiChorus, a start-up offering a mobile packet core platform for $165 million in net cash. The transaction is expected to be dilutive to Tellabs' earnings in 2010, then additive to Tellabs' non-GAAP earnings in 2011 and beyond.


WiChorus' platform, which has been selected by Clearwire for deployment in its WiMAX network, provides subscriber management on a per application, per subscriber, per flow basis at line rate. WiChorus also provides advanced charging features, enables operators to adopt new business models that leverage Internet-based services. These include content-based charging, mobile advertising and revenue-sharing partnerships. In addition, the advanced stateful Layer 7 capabilities are coupled with SmartCore's knowledge of the wireless topology to allow operators to ensure fairness in network bandwidth consumption, and optimize scarce spectral and backhaul resources.


The WiChorus HSPA GGSN is currently in trials with mobile operators.


In addition, WiChorus said its "SmartCore" mobile packet core platform 8 times more throughput, 4 times more simultaneous Internet connections and active users, compared with competitive platforms in gateway applications.It can be used to deliver new and differentiated applications such as Internet offload and as a distributed LTE gateway. WiChorus calculates that its SmartCore platform can offload as much as 70% of traffic at the network edge, increasing core network efficiency and improving user experiences.


"As we expand logically into an adjacent market with the SmartCore platform, Tellabs and WiChorus can help mobile customers succeed by revolutionizing the mobile Internet," said Robert W. Pullen, chief executive officer (CEO) and president of Tellabs. "Our customers are excited about this combination, since they can deliver rich, distinctive personalized user experiences such as mobile Internet, video and commerce. This move complements, differentiates and advances our growth solutions portfolio including Tellabs Mobile, Optical and Business Solutions."


WiChorus is based in San Jose, California. On completion of the transaction, Rehan Jalil will head a newly formed Tellabs IP and mobile Internet group, as senior vice president, reporting to Pullen.


The combined Tellabs + WiChorus company will employ about 3,250 people.


Investors in WiChorus include Accel Partners, Mayfield Fund, Redpoint Ventures and Pinnacle Ventures.
http://www.wichorus.com
http://www.tellabs.com

• In November 2008, WiChorus secured $18 million in series C funding for its scalable platforms for Smart 4G Networks. Pinnacle Ventures led the oversubscribed up-round, which included existing investors Redpoint Ventures, Mayfield Fund and Accel Partners. This brought total funding in the company to $43 million.



• WiChorus was founded by Rehan Jalil, who previously served as chief architect of WiMAX for Aperto Networks.

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Level 3 Launches Wireless Tower Access Service

Level 3 Communications launched a new service that offers direct wireless tower connectivity to the Level 3 network.


Level 3 Tower Access provides wireless carriers with new options for wireless backhaul in metropolitan and rural locations. The first phase of this initiative will target unserved and underserved markets focusing on areas with the greatest concentration of end-user demand. Wireless towers could be place on or near existing Level 3 network facilities.


The company said it has identified more than 300 tower-ready network sites with the geography and right-of-way access to support the addition of wireless towers. Level 3 is working with multiple partners to erect wireless carrier-neutral towers directly on the Level 3 network in these locations.


Level 3 Tower Access also offers shared infrastructure for wireless carriers to expand their wireless networks without the expense of costly fiber builds or dedicated tower access. Shared infrastructure creates an open platform for network connectivity that supports a broad range of technologies, regardless of the carrier or service.
http://www.level3.com

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