Sunday, July 22, 2012

Palo Alto Networks Rises 26.5% in IPO

On the first day of trading, shares in Palo Alto Networks (NYSE: PANW) rose 26.5% to close at $53.13.


This gives the company a market cap of $1.09 billion.

President and CEO Mark D. McLaughlin, joined by members of Palo Alto Networks’ leadership team, celebrated the company’s first day of trading by visiting the NYSE trading floor for the stock opening and ringing The Opening Bell.

President’s Council Recommends Opening 1,000 MHz for Shared Use

U.S. federal policy should shift in favor "Shared-Use Spectrum Superhighways" instead the current plan which is to first clear federal users from specific bands and then auction this spectrum for the exclusive use of the highest bidder, according to a new report issued by the President’s Council of Advisors on Science and Technology (PCAST). The report identifies 1,000 MHz of federal spectrum for sharing with the private sector.

The New Spectrum Superhighway plan (1) divides spectrum into substantial blocks with common characteristics (2) makes sharing by Federal users with commercial users the norm (3) measures spectrum effectiveness using a new metric (4) increases capacity by "1,000’s of times." 


A Presidential memorandum issued in June 2010 requires that 500 MHz of spectrum to be made available for commercial use within 10 years.  However, a recent NTIA Study found that clearing just one 95 MHz band will take 10 years, cost $18 billion, and cause significant disruption. Moreover, the net revenue for the Treasury from the last successful auction of 45 MHz realized a net income of just a few hundred million a year ($5.3 billion total).

The PCAST report said its vision of shared spectrum is viable using existing technologies and is not dependent on cognitive or "smart" radios. Instead, a geo-location database could be used the share spectrum much like how the FCC is using managing TV bands. The TV Whitespaces system could be used as a model. Technical standards would need to be implemented for coexistence of transmitters and receivers to enable flexible sharing.

To get things rolling, the PCAST report recommends that an incentive mechanism be created to encourage Federal agencies to begin sharing (e.g., Spectrum Currency). The existing Spectrum Relocation Fund, which is supposed to fund the migration of federal users out of certain bands, could be redeveloped into a "Spectrum Efficiency Fund." The system could be tested in a specific city before being extended nationwide.

Specifically, PCAST recommends beginning a pilot program involving spectrum sharing, supported by early release of funds from various sources, with three key elements: immediate sharing by new low-power devices in two existing Federal spectrum bands; formation of a Spectrum Sharing Partnership Steering Committee (SSP) of industry executives (e.g. CEOs) to advise on a policy framework to maximize commercial success; and creation of an urban Test City and a Mobile Test Service that can support rapid learning in spectrum management technology and practice.

The 192 page report is posted online.
http://www.whitehouse.gov/administration/eop/ostp/pcast

Reaction from AT&T: "While we are still reviewing the PCAST report, we are encouraged by the sustained interest in exploring ways to free up underutilized government spectrum for mobile Internet use. However, we are concerned with the report’s primary conclusion that 'the norm for spectrum use should be sharing, not exclusivity.' The report fails to recognize the benefits of exclusive use licenses, which are well known. Those licenses enabled the creation of the mobile Internet and all of the ensuing innovation, investment and job creation that followed.

“While we should be considering all options to meet the country’s spectrum goals, including the sharing of federal spectrum with government users, it is imperative that we clear and reallocate government spectrum where practical. We fully support the NTIA effort of determining which government bands can be cleared for commercial use, and we look forward to continuing to work with NTIA and other stakeholders to make more spectrum available for American consumers and businesses."

Reaction from CTIA: "Cleared spectrum and an exclusive-use approach has enabled the U.S. wireless industry to invest hundreds of billions of dollars, deploying world-leading mobile broadband networks and resulting in tremendous economic benefits for U.S. consumers and businesses. Not surprisingly, that is the very same approach that has been used by the countries that we compete with in the global marketplace, who have brought hundreds of megahertz of cleared spectrum to market in recent years."

Brazil Suspends New Mobile Line Sales Due to Poor Service

Brazil's National Telecommunications Agency (Anatel) has prohibited the nation's mobile operators with the worst customer service from selling new lines. The ban impacts the following carriers: TIM, Hi, and Clear in certain regions where their performance is the worst. The ban against TIM is the widest due to a spike in problems

Failure to comply with this order will result in a penaly of R$200,000 per day in each state in which the noncompliance is found.

In addition, the agency has ordered the operators to submit a National Action Plan with the next 30 days to explain who they will address the problem.

http://www.anatel.gov.br

CWA Negotiator Dies in Tragic Drowning


The Communications Workers of America is mourning the loss of Seth Rosen, vice president of Communications Workers of America District 4, who drowned in a tragic accident in North Carolina on Friday, July 20, 2012. He was 55.


Last week, Mr, Rosen was working to finalize a tentative agreement for CWA members at AT&T Midwest. He was elected CWA vice president in 2005, and was a leader in organizing, bargaining and many areas of the union.

http://www.facebook.com/seth.rosen.memorial

AT&T and Unions Reach Tentative Deals in Two Regions


The Communications Workers of America District 4 and CWA’s Telecommunications and Technologies Sector announced tentative deals with AT&T Midwest and AT&T Legacy. The tentative settlement provides for wage increases, improvements in employment security and improvements in work and job issues limits on forced overtime and changes to unfair attendance policies.


District 4 covers about 15,000 CWA members at AT&T operations in Ohio, Indiana, Illinois, Michigan and Wisconsin. AT&T Legacy covers about 5,500 workers at locations nationwide.



Separate negotiations are continuing with AT&T West, which has 18,000 CWA members throughout California and Nevada, and with AT&T East, which has 4,000 CWA members in Connecticut.  CWA said its 24,000 District 3 members throughout the Southeast are keeping up their mobilization efforts as the clock ticks down to the Aug. 4 contract expiration.

China Telecom Adds 17.7 Million Mobile Subscribers in 1st Half


China Telecom added 17.71 million mobile subscriptions in the first half of 2012, 0f which 14.6 million were 3G accounts, giving it a total of 144 million subscribers.


China Telecom remains on a steady pace of adding over one million broadband lines per month.


Local access lines continue to drop due to mobile substitution, broadband substitution, as well as competition.


In June, ZTE announced a contract for 40% of China Telecom’s 2012 broadband equipment procurement project -- the largest share of any vendor participating on the project. The contract covers procurement of PON OLTs, FTTB MDUs, and broadband terminals. It includes for over 21 million units valued at approximately RMB4 billion (approximately US$629 million).

ZTE said this is the largest broadband procurement project in the world in 2012.

VMware Hits Revenue of $1.12 Billion, up 22% YoY

VMware reported Q2 revenue of $1.12 billion, an increase of 22% from the second quarter of 2011, and 23% measured in constant currency. Net income for the second quarter was $192 million, or $0.44 per diluted share, compared to $220 million, or $0.51 per diluted share, for the second quarter of 2011. Non-GAAP net income for the quarter was $296 million, or $0.68 per diluted share, compared to $235 million, or $0.55 per diluted share, for the second quarter of 2011.

License revenues for the second quarter of 2012 were $517 million, an increase of 11% from 2011. Service revenues, which include software maintenance and professional services, were $606 million for 2012, an increase of 33% from 2011.

"The quarter’s strong performance reflects the continued confidence customers have in our solutions," said Paul Maritz, chief executive officer, VMware. "Our products, amplified by the recent acquisitions, including Nicira, are providing the means for our customers to transform IT as we move into the Cloud Era."http://www.vmware.com

Riverbed Enhances WAN Optimization with Inbound QoS

Riverbed introduced an inbound QoS capability to its Steelhead WAN optimization appliances.

The inbound QoS is increasingly needed to ensure the performance of public cloud services, such as SaaS, that may compete with recreational traffic such as Facebook and YouTube.

Riverbed said its Steelhead already offers advanced traffic classification and outbound QoS capabilities, so its appliance is the right place to ensure inbound QoS as well.

Riverbed developed advanced QoS capabilities that use a combination of proprietary classification methods, simplified configuration and unique scheduling techniques to efficiently allocate minimum and maximum bandwidths and prioritize latency-sensitive applications for both incoming and outgoing traffic.
http://www.riverbed.com


IEEE Forms 802.3 BASE-T Study Group


IEEE has established a new 802.3 Next-Generation BASE-T Study Group to measure industry interest and needs in the next generation of Ethernet transmission over twisted-pair cabling.

Current IEEE 802.3 BASE-T typically runs at Gigabit Ethernet and 10 Gigabit Ethernet speeds and is used in data centers.

"Because of the ability of current IEEE 802.3 BASE-T technologies to interoperate with legacy versions via the standard’s autonegotiation’ feature and thereby support cost-effective infrastructure upgrades, extension to 40 Gigabit Ethernet and higher speeds will be required in coming years,” said Bill Woodruff, chair of the IEEE 802.3 Next-Generation BASE-T Study Group and associate product line director with Broadcom. “IEEE 802.3 BASE-T continues to be one of the most successful technologies within the greater IEEE 802.3 family, and our new study group will gauge the timing and needs of extending the standard to support industry needs for server connectivity and other applications."

http://www.ieee.org