Ericsson Cites Ongoing Component Shortages in Quarterly Report

Ericsson's sales in Q3 2010 were up 2% year-over-year and down -1% sequentially, as the company cited and industry-wide component shortage and supply chain bottlenecks. Ericsson said that although the situation has gradually improved, it remains a challenge to fully meet the demand for mobile broadband.


By segment, networks sales grew 6% year-over-year with a continued transition from voice to data related business. Mobile broadband sales, including radio, backhaul and packet core, increased in the quarter, especially driven by markets such as the US and Japan. Voice related sales remained slow. The company noted that demand for its multi standard radio base station RBS 6000 is at a high level and production levels are ramping up.


Global Services sales grew 3% year-over year and accounted for some 40% of total sales. In local currencies Professional Services sales grew 10%. The second half 2009 was negatively impacted by the reduced scope of a managed services contract in Italy. Network rollout sales decreased -8% year-over-year negatively impacted by supply chain bottlenecks as well as lower proportion of turnkey projects. During the quarter, 13 managed services contracts were signed of which eight were extensions or expansions of existing customer agreements. Year-to-date, 38 contracts have been signed, well above the number for full year 2009.


Multimedia sales declined -31% year-over-year. Managed Services sales in the quarter increased by 46% year-over-year. The year-over-year growth in Managed Services sales is primarily an effect of the added Sprint contract.


"We see continued growth opportunities in the market and the combined strength of our technology leadership, our scale advantage, along with global presence and skilled employees are our key assets," said http://www.ericsson.com

Read More

Verizon Reports Strong Cash Flow in Q3

Verizon Communications reported continued strong cash flow in the third quarter 2010, driven by wireless, FiOS and strategic business services. Verizon's total operating revenues were $26.5 billion in third-quarter 2010, a decrease of 2.9 percent compared with third-quarter 2009. Last year's results included revenues from operations that have since been divested.


"Verizon built on a strong second quarter with a stronger third quarter, resulting in improved earnings performance and substantial cash flow," said Chairman and CEO Ivan Seidenberg. "We are building momentum and are on track to achieve our goal of growing earnings in the second half of the year. We are excited by the opportunities we see to expand wireline margins and the growth we see related to the upcoming launch of next-generation wireless services."


Some highlights from the quarter:


Wireless


* Verizon Wireless added 584,000 retail postpaid and 447,000 total retail customers in the quarter, excluding acquisitions and adjustments.


* At the end of the third quarter, the company had 86.7 million retail customers, which represented 93 percent of the company's wireless customers, the largest number of retail customers of any U.S. wireless provider.

* The company also added 550,000 reseller customers in the third quarter.


* The total number of customers at the end of the quarter was 93.2 million.


* In addition, the company had 7.9 million other connections at the end of the quarter -- such as machine-to-machine and telematics -- adding 251,000 net other connections in the quarter. This brings the number of total wireless connections to 101.1 million at the end of the third quarter.


* Retail postpaid churn remained low at 1.07 percent. Retail and total customer churn levels were 1.43 percent and 1.36 percent, respectively.


* Retail service revenues in the quarter totaled $13.5 billion, up 5.0 percent year over year. Retail data revenues were $4.8 billion, up 22.8 percent. Service revenues in the third quarter were $14.2 billion, up 7.7 percent. Total revenues were $16.3 billion, up 6.0 percent year over year.


* Retail service ARPU (average monthly service revenue per user) grew 1.8 percent over third-quarter 2009, to $51.99. Retail data ARPU increased to $18.61, up 19.0 percent year over year.


* Wireless operating income margin was 29.9 percent, an increase of 220 basis points year over year. Segment EBITDA margin on service revenues (non-GAAP) was 47.2 percent, up 150 basis points over third-quarter 2009.


Wireline

* Verizon added 226,000 net new FiOS Internet customers and 204,000 net new FiOS TV customers, sequential improvements of approximately 17 percent and 19 percent, respectively, compared with second-quarter 2010. This is the largest net quarterly increase in FiOS customers in more than a year. By the end of the third quarter, Verizon had 3.9 million FiOS Internet and 3.3 million FiOS TV customers.


* FiOS Internet penetration (customers as a percentage of potential customers) was 31.0 percent by the end of the quarter, with the product available for sale to 12.5 million premises. This compares with 28.7 percent and 10.9 million, respectively, at the end of third-quarter 2009.


* FiOS TV penetration was 27.2 percent by the end of the quarter, with the product available for sale to 12.1 million premises. This compares with 25.1 percent and 10.4 million, respectively, at the end of third-quarter 2009.


* In more mature FiOS markets, penetration rates have been consistently growing and are more than 35 percent, with a few markets in excess of 40 percent. FiOS revenues, including FiOS Digital Voice, grew 29.2 percent year over year. FiOS revenues generated approximately 50 percent of consumer wireline revenues in third-quarter 2010, compared with approximately 40 percent in third-quarter 2009.


* Total wireline broadband and video revenues -- including FiOS Internet, FiOS TV and HSI (DSL-based high-speed Internet) -- were $1.8 billion in the quarter, up 20.8 percent from third-quarter 2009.


* Consumer revenues grew 1.1 percent compared with third-quarter 2009. Consumer ARPU for wireline services was $86.55 in third-quarter 2010, up 10.9 percent compared with third-quarter 2009. ARPU for FiOS customers was more than $146.


* Global enterprise revenues totaled $3.9 billion in the quarter. This is a decrease of 0.8 percent compared with third-quarter 2009, primarily due to foreign currency effects. Sales of strategic enterprise services -- such as security and IT solutions, as well as strategic networking -- increased 6.9 percent compared with third-quarter 2009 and now represent approximately 43 percent of global enterprise revenues.
http://www.verizonwireless.com

Read More

Deutsche Telekom Readies LTE Launch in 800 MHz band

Deutsche Telekom is preparing to launch commercial LTE service later this year in its home market using the "digital dividend" spectrum in the 800 MHz band, which was previously used for analog TV.


Deutsche Telekom selected Nokia Siemens Networks as one of its suppliers for hardware, software and services required to set up and maintain the LTE radio network across Germany. In addition, the operator has selected Nokia Siemens Networks as a future LTE supplier globally.


In its first phase, the roll-out began in rural areas, so called "whitespots" where no broadband access of any kind is available.


Nokia Siemens Networks is supplying its Single RAN solution with Self Organizing Network (SON) functionality based on its award-winning, energy-efficient Flexi Multiradio Base Station and network management & optimization software NetAct. In addition Nokia Siemens Networks will extend the existing subscriber data management platform for Deutsche Telekom to the LTE deployment, providing a single, unified view of all subscriber-related data.
http://www.nsn.com
http://www.telekom.de

Read More

ITU Officially Defines 4G IMT-Advanced

The ITU's Radiocommunication Sector (ITU-R) officially designated two technologies as 4G mobile wireless broadband or IMT-Advanced. These two technologies are "LTE-Advanced" and "WirelessMAN-Advanced". There were six candidate technologies but only these two are officially designated as 4G, having successfully met all of the criteria established by ITU-R for the first release of IMT-Advanced.


"LTE Advanced" is developed by 3GPP as LTE Release 10 and Beyond. "WirelessMAN-Advanced" is developed by the IEEE under 802.16.


"While the goals set for IMT-Advanced were considered by some to be very high, I am very pleased to see that all stakeholders in the mobile wireless industry have risen to meet the challenge," said Valery Timofeev, Director of the ITU Radiocommunication Bureau, in expressing his appreciation for this worldwide effort. "I look forward to the ITU-R Recommendation for IMT-Advanced that will have a profound effect on the development of state-of-the-art technologies for 4G mobile broadband."


Following the success of the ITU-defined IMT-2000 (3G) systems, ITU-R launched the IMT-Advanced (4G) initiative with its strategic IMT future vision in 2002. It subsequently established the services, spectrum and performance requirements for IMT-Advanced as well as a detailed evaluation process. In an on-going partnership with the industry, the six proposals received by ITU in October 2009 were individually subjected to a rigorous assessment, supported by the work of independent external evaluation groups that had been established around the world. Industry consensus and harmonization fostered by ITU-R among these six proposals have resulted in the consolidation of the proposals into the two agreed IMT-Advanced technologies. These technologies will now move into the final stage of the IMT-Advanced process, which provides for the development in early 2012 of an ITU-R Recommendation specifying the in-depth technical standards for these radio technologies.
http://www.itu.int/net/pressoffice/press_releases/2010/40.aspx

Read More

Itron Picks Sierra Wireless M2M Module

Itron has selected Sierra Wireless' AirLink Raven X and Raven XE Intelligent M2M Gateways to provide the primary cellular connection in its ChoiceConnect fixed network platform, which facilitates the collection of electric, gas, and water meter data. Itron's advanced meter data collection system provides real-time two-way communication, time-synchronized interval data collection, on-demand meter reads, and data integration with in-home displays - giving both utility providers and their customers timely access to usage information. The Sierra Wireless AirLink intelligent M2M gateways enables connectivity over widely available public cellular networks.
http://www.sierrawireless.com

Read More

HP Completes $1.5 Billion Acquisition of ArcSight

HP completed its previously announced acquisition of ArcSight, a provider of network security and compliance management company, in a deal valued at $1.5 billion.


ArcSight, which is based in Cupertino, California, provides a platform for gaining visibility and critical insights into IT infrastructure across all users, networks, data centers and applications. The company has over 1,000 corporate and government customers.


HP said integrating ArcSight's security platform into its portfolio will allow organizations to converge millions of events across IT operations and security, providing deeper context than either platform alone.
http://www.hp.com

Read More

CenturyLink and Qwest Reach Deal with Unions on Merger

CenturyLink and Qwest Communications reached a deal with the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) regarding their proposed merger. The unions have agreed that the merger between CenturyLink and Qwest is in the public interest and will withdraw all opposition in any remaining state and federal regulatory proceedings.


The agreement covers employment levels, call center stability, investments in broadband and employee healthcare benefits. The companies also agreed to honor all existing collective bargaining agreements.


"We are very pleased the CWA and IBEW acknowledge the public interest benefits of the proposed merger," said Glen F. Post III, chief executive officer and president of CenturyLink. "CenturyLink values our positive relationships with our employees and unions. We rely on each and every employee to deliver an exceptional communications experience to our customers, and we will continue to work toward meeting their evolving communications needs."

Some key points on the merger:


As of June 30, 2010, CenturyLink served approximately 2.3 million broadband customers, 6.8 million access lines and 594,000 video subscribers.


As of June 30, 2010, Qwest served approximately 2.9 million broadband customers, 9.4 million access lines, 950,000 video subscribers and more than 980,000 wireless customers.


The combined company will have a national 180,000 route mile fiber network.http://centurylinkqwestmerger.com

Read More

AT&T Reports 8.5 Million Emerging Devices on Net

More than 4.5 million connected devices -- including eReaders, tracking devices, photo frames, meter readers, etc. -- have been added to the AT&T network in the past four quarters.


The total number of emerging devices, including postpaid and prepaid embedded computing devices, connected to the AT&T network -- both for consumers and businesses -- now exceeds 8.5 million.
http://www.att.com

Read More

AT&T Notes Growing Wi-Fi Offloads

There were 106.9 million connections on AT&T's U.S. Wi-Fi network during Q3 2010, exceeding the total 85.5 million connections made during the entire year in 2009. Due to the rapid adoption of Wi-Fi enabled smartphones, Wi-Fi use has been increasing significantly each quarter, with third-quarter 2010 connections up more than 320 percent versus third-quarter 2009. AT&T now has 23,000 Wi-Fi hotspots in operation across the U.S..


AT&T said it will continue to expand the number of Wi-Fi hotzones in dense urban areas. During Q3, AT&T activated Wi-Fi hotzones in downtown Charlotte, N.C., and Chicago's Wrigleyville, near Wrigley Field. The company has reported better-than-expected customer response and usage at its first hotzone in New York City's Times Square.


"We chose to invest in expanding our Wi-Fi footprint and capabilities because early on, we recognized that Wi-Fi technology had numerous applications and far-reaching potential," said Angie Wiskocil, senior vice president, AT&T Wi-Fi Services. "In addition to smartphones, we saw that more and more devices like tablets, eReaders and netbooks were becoming Wi-Fi enabled and realized that Wi-Fi would play a major part in our ability to mobilize everything for our customers. Now, our Wi-Fi services are a significant asset for AT&T and for the consumers and businesses we serve.
http://www.att.com

Read More