Alcatel Reports Q1 Sales of EUR 2.96 Billion, Soft Markets

Alcatel reported Q1 sales of EUR 2.961 billion, down 31.1% year over year and down sequentially by 34.3%. Loss from operations was registered at EUR 161 million and net loss at EUR 461 million, or a diluted loss of EUR 0.39 per share ($0.43 per ADS). Alcatel cited seasonality and currency exchange issues for the weaker performance. It also noted that carrier markets continue to be soft, and the economic and geopolitical environmental may add a few points to the 15% degradation it had previously predicted for 2003. The non-carrier market is better but for the same reasons may be a few points off from the expected stagnation. Overall Alcatel still expects the market in the second half of 2003 to be comparable to last year, at a constant exchange rate. Nevertheless, Alcatel anticipates that its restructuring programs will enable it to reach an operating breakeven target for the full year. Some highlights for the quarter:

• Revenue for fixed communications equipment decreased sequentially by 34.5% to EUR 1.317 billion. DSL sales were strong worldwide, but were offset by the weakness in the carrier data market. Optical networks decreased substantially, particularly terrestrial transmission where the good performance in traditional cross connects was offset by the continuing depressed WDM long-haul market, especially in the US.
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  Revenue for mobile communications decreased sequentially by 37.8% to EUR 798 million. Sales were hit by the temporary unavailability of color screens coupled with pricing pressures on mature monochrome models.
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  Revenues for private communications decreased sequentially by 28.4% to EUR 952 million, primarily due to declining space revenues in light of delivery schedules and soft underlying market conditions.
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  Gross margin improved to 29.7%, compared to 27.3% for Q4 2002.
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  Alcatel ended the quarter with 76,000 employees, down from 119,000 in Q4 2000. The company estimates it will have 60,000 employees at the end of this year.
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  Alcatel is targeting a breakeven point at quarterly sales of around EUR 3 billion per quarter at year end.

http://www.alcatel.com

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SpectraLink Offers 802.11b Wireless Phones

SpectraLink announced an 802.11b NetLink Wireless Deskset priced at $499 and incorporating a speakerphone, large display, and special feature keys. A docking station version will be priced at $299. In the docking station configuration, the user has the option of using the NetLink Wireless Deskset's traditional wired handset or the NetLink Wireless Telephone handset to roam throughout the enterprise.
http://www.spectralink.com

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Transparent Networks Ceases Operations

Transparent Networks, a start-up that was developing a 3D MOEMS (micro-opto-electronic-mechanical-system) mirror array switch, is ceasing operations and will liquidate its assets. The company's intellectual property includes optical signal processing and MEMS-based technology. A buyer is being sought. Transparent Networks was based in Milpitas, California.
http://www.transparentnetworks.com

• In March 2002, Transparent Networks previewed its 3D MOEMS mirror array integrated with high-voltage high-density VLSI electronics. The single chip array includes 1200 mirrors and could be scaled for use in optical switches with up to 18,000 ports. Transparent Networks' first product implementation allows field scalability of the optical switch from 8 to 1,024 bi-directional protected ports. The design would allow carriers to deploy the switch with a small number of active ports and then add more ports based on demand.
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  In February 2002, Transparent Networks secured $20 million in second round venture funding for its work in intelligent photonic switching systems. The company raised $30.2 million since its inception in June 2000. Transparent Networks is headed by Dr. Janusz Bryzek, who is considered one of the pioneers of the MEMS industry.

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Marvell Targets Gigabit Ethernet Switching for SMBs and SOHOs

Marvell is extending its Gigabit Ethernet (GbE) switch silicon to target the Small-to-Medium Size Business (SMB) and SOHO market segments. Marvell is introducing a single-chip Prestera-DX GbE packet processor solution for 24-, 16- and 8-port Gigabit Ethernet switches. The Prestera-DX devices achieve non-blocking performance and high integration by combining all of the Gigabit MACs, the packet buffer memory, a powerful switch engine, and SERDES in each port into a single chip. The Prestera chip supports enterprise-class QoS features as well as a Virtual Cable Tester technology that can detect cable problems. Marvell estimates that an unmanaged, 24-port Gigabit Ethernet built with its Prestera chip could have a street price of $600, placing the per-port cost of Gigabit Ethernet switching at around $25. The company noted that many PC motherboards and even notebooks now include Gigabit Ethernet as a standard feature.


For the SOHO market, Marvell is also introducing 5-port and 8-port integrated GbE switch silicon solutions. Marvell's new Link Street devices enable construction of a complete three-chip 5-port/8-port GbE switch with triple-speed 10/100/1000 Mbps support. The company said the advance of technology and the increase in the number of multiple-PC households and small offices would drive GbE into the SOHO market.
http://www.marvell.com/

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Project MESA to Define Standards for Wireless Public Safety Networks

Project MESA, an international partnership project between the European Telecommunications Standards Institute (ETSI) and the Telecommunications Industry Association (TIA), adopted an accelerated work plan to complete technical specifications for public emergency response networks by as early as the end of 2004. Project MESA said it recognized that completely new thinking in the field of radio technology and wireless networking is required to meet the advanced needs of users. The Project's work to date has involved the definition by the public safety organizations of their initial user requirements for future networks. These requirements include a self-establishing, self-healing broadband network operating in excess of 2 Mbps. A typical network of this sort would enable, for example, remote patient monitoring, the sending of a video shot from a helicopter to fire services personnel on the ground, or the use of robots to assist in the rescue of people from hazardous or inaccessible areas, or in the defusing of explosive devices.
http://www.projectmesa.org/http://www.tiaonline.org/

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Apple Launches the iTunes Music Store

Hoping to create the next great consumer application, Apple launched its iTunes Music store, an online service that lets customers download music for $0.99 per song, including the rights to burn songs onto an unlimited number of CDs for personal use, listening to songs on an unlimited number of iPods, playing songs on up to three Macs and using songs in any application on the Mac. The iTunes Music Store features over 200,000 songs from music companies including BMG, EMI, Sony Music Entertainment, Universal and Warner. Apple also introduced its third generation iPods, which hold up to 7,500 songs on a 30GB drive. A version of iTunes for Windows is expected by year's end.
http://www.apple.com

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Wanadoo tops 1.6 million broadband customers

As of 31-March-2003, Wanadoo had 8.786 million Internet access customers in Europe, including 1.613 million subscribers to ADSL and cable broadband service. Wanadoo added 251,000 new customers during Q1, of whom 239,000 signed up for broadband service. Broadband users represented 18.4% of the total Wanadoo user base. The Wanadoo portal service delivered 2.408 billion Web pages in March 2003, up 60% compared to a year earlier. Wanadoo, a subsidiary of France Telecom, is expecting revenue growth of 25 to 30% for 2003.
http://www.wanadoo.com

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Marconi Launches Multiservice IP VPN Solution

Marconi introduced a new multiservice IP VPN solution that uses Ethernet over MPLS with the IETF "Martini" draft standard on its ASX and TNX line of multiservice switch-routers. Marconi's solution supports multiple differentiated Ethernet services, such as VoIP, packetized video and real-time data transport simultaneously over the same Ethernet port. At the same time, Marconi's multiservice switch-router platform could also concurrently support Frame Relay, private line and ATM services. The solution is provided using a new four-port 10/100 Ethernet port card that plugs into Marconi's ASX and TNX multiservice switch-routers, either directly or through a network module carrier card for the ASX-4000 40 Gbps multiservice switch-router. Marconi's multiservice IP port card solution offers QoS guarantees using a standards-based implementation of IETF 802.1Q VLAN mapping and IETF 802.1p priority mapping on an MPLS Label Switch Path (LSP) or ATM Virtual Circuit (VC). Marconi said its solution is targeted for service provider deployment in multi-tenant, resale or Managed Network Services (MNS) markets.
http://www.marconi.com

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IDT Builds Octal Transceiver for High-Density Line Cards

IDT (Integrated Device Technology) introduced its new SuperJET family of J1/E1/T1 transceivers, including a monolithic octal density device designed for next-generation universal line-card designs in communications systems. IDT's new SuperJET transceivers, which integrate and expand upon its universal line interface unit and framer functionality, provide configuration flexibility, jitter performance and signaling support across octal, quad, dual and single densities. The IDT SuperJET devices target J1/E1/T1 interfaces in access concentrators, wireless base stations, integrated MSPPs, synchronization networks and broadband access equipment.
http://www.idt.com

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TI's Single-Chip ADSL Integrates Line Driver

Texas Instruments announce the integration of a complete ADSL router, including the 12V line driver, on a single chip. The chip is implemented in a 130nm copper CMOS process. By including the line driver, communications processor, power management and hundreds of passive components on a single device, TI estimates that it reduces the total system chip and passives count by up to 50% over competitive solutions. TI said its advanced process technology allows it to mix and match digital, analog, RF and memory components on a single device.
http://www.ti.com/dsl

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Occam and VocalData partner on IP Centrex Solution

Occam Networks and VocalData have created a joint solution enabling carriers to offer hosted IP telephony services. Occam's Ethernet & IP-based broadband loop carrier, which streamlines the access network by integrating the functionality of several types of network equipment, resides in the service provider network and acts as a voice gateway for VocalData's VOISS solution. VocalData's VOISS system can be configured to deliver hosted PBX, IP Centrex, business trunking, residential services, and enhanced applications such as conferencing, unified messaging and a Web portal.
http://www.occamnetworks.com
http://www.vocaldata.com

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Court Approves ICO's Globalstar Acquisition

A U.S. Bankruptcy Court approved the sale of Globalstar's assets to ICO Global Communications for an investment of $55 million. ICO will receive a 54% equity stake in the new operating company. The remaining equity will be distributed to Globalstar's creditors, which include Loral Space & Communications, Qualcomm Incorporated and holders of Globalstar L.P. bonds. It is estimated that $4 billion has been spent thus far on Globalstar and its mobile satellite communications network. ICO Chairman Craig O. McCaw said he believes that Globalstar can deliver useful services for governments, corporations and communities around the world. Most recently due to demand, Globalstar has expanded its service coverage in the Middle East. ICO is also currently deploying its own medium earth orbit MSS constellation (at 10,000 kilometers vs. Globalstar's 1,400 kilometer orbit) to provide global voice and data communications. ICO has contracted with Boeing and Lockheed/ILS to construct and launch its satellites.
http://www.ico.com

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Celite Introduces DSL Headend for In-building Ethernet

Celite Systems, a start-up based in Austin, Texas, introduced its DSL Headend technology for multi-dwelling units. The Celite box would enable local exchange carriers and building owners to deliver broadband services to an entire apartment or condominium complex, office high rise, hotel or other multi-dwelling unit with one installation process at the telephone equipment room. Celite runs Ethernet over existing building wiring, without requiring line splitters or filters. DSL lines are multiplexed for the trunk back to the network.
http://www.celitesystems.com

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Agere Offers Two New Integrated VoIP Phone Chips

Agere Systems introduced two new VoIP chips for residential and enterprise IP phones. The new devices include both dual and single Ethernet-port system-on-a-chip solutions. The VoIP chips support wide-band codecs for enhanced voice quality, three-way teleconferencing, and full-duplex speakerphone capability with self-adaptive Acoustic Echo Cancellation. Both single-chip solutions couple Agere's DSP 1600 core with an ARM940T microcontroller, allowing manufacturers to use the same software for a range of IP phone designs. Agere said its IP Phone chips are also compatible with its WaveLAN wireless networking components. The single port device is offered at approximately $12 in quantities of 50,000. The dual-port device is priced at approximately $18 in production quantities of 50,000.
http://www.agere.com

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Nortel Networks Announces Visitor-Based Networking for Hotels, Convention Centers

Nortel Networks introduced a package of integrated network solutions for hotels, convention centers, airports and other enterprises looking to provide travelers and mobile PC workers with temporary connectivity needs. Nortel Networks said its Visitor-Based Networking could help hotels turn their IT costs into a profit center. The line-up includes elements from Nortel Networks Passport, Shasta and Baystack product lines, as well as its new wireless LAN portfolio. A special visitor-based Internet portal enables users to access the service and create member accounts without loading software clients.
http://www.nortelnetworks.com

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Sprint and Nortel Chosen for Mandalay Resort Network

The Mandalay Resort Group, which owns 16 hotels and casinos -- including the Mandalay Bay, Excalibur and Circus Circus, selected Nortel Networks and Sprint to build a seamless network across four states. Sprint has deployed Nortel Networks' Optical Ethernet solution, including Passport 8600 Routing Switches, as well as its Shasta 5000 Broadband Service Node, the Passport 8000 Ethernet Switch series, WLAN-Access Point 2220, WLAN-Security Switch 2250 and the Baystack portfolio of Ethernet switches. Financial terms were not disclosed.
http://www.nortelnetworks.com
http://www.sprint.com

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MCI Issues Monthly Operating Results, Comments on CAPEX Trend

MCI recorded $2.03 billion in revenue for February and $2.1 billion for March. Operating income was $44 million in February and $84 million in March. MCI's capital expenditures for February were $36 million, including $18 million for PP&E and $18 million for related software. Capital expenditures for March were $51 million, including $18 million for PP&E and $33 million for related software. The company said it is comfortable with the projected capital spending levels on its core IP backbone, and that it would try to gain efficiencies by consolidating legacy networks, eliminating redundant systems and standardizing its billing systems.
http://www.mci.com

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Jury Rules in Favor of CIENA in Patent Case vs. Corvis

A jury of the U.S. District Court for the District of Delaware issued its verdict in favor of CIENA in its litigation against Corvis Corporation for patent infringement. Corvis' CorWave system was found to infringe on CIENA's patent titled "WDM Optical Communication System With Remodulators." CIENA plans to move for an injunction prohibiting sales of infringing products.
http://www.ciena.com

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IPv6 Forum Creates Acceptance Standard With 'IPv6 Ready' Logo

The IPv6 Forum launched a logo branding program called "IPv6 Ready" to designate products that have passed a set level of interoperability. The IPv6 test and conformance bodies providing the certification include the University of New Hampshire InterOperability Lab, the TAHI Test Event, the ETSI IPv6 Plugtest, IRISIA and Connectathon. IPv6 products have been shipping for some time and the new logo program is expected to reinforce that message in the market.

http://www.ipv6forum.com

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Air Force Command and Control Network Expands with net.com's Promina

Network Equipment Technologies was awarded a $5 million contract by General Dynamics Decision Systems for expansion of the United States Air Force's voice, video and data command and control network. The USAF's Theater Deployable Communications (TDC) Integrated Communications Access Packages (ICAP) Program network, which is currently composed of net.com's Promina 400 platforms, is being expanded by another 40 Promina 400 nodes and will additionally incorporate a Promina 800 node at each of five larger sites. The TDC ICAP network nodes are all transit-case mounted for easy mobility. Within 30 minutes of landing in deployed areas, USAF technicians are able to establish communications with Internet gateway, secure IP, and voice (NAPR, SIPR and DSN) services.
http://www.net.com

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