Thursday, May 1, 2003

Legra Systems Unveils WLAN Switch, Raises $8.5 M

Legra Systems, a start-up based in Burlington, Massachusetts, unveiled a stackable, WLAN switching architecture featuring an extensible Wireless Operating System, a "Smart Radio" technology, and upgradeable security. Legra said its platform supports tens of radios and hundreds of users per switch, enabling a WLAN to scale in step with a large enterprise.


Legra also announced the closure of $8.5 million in a Series A round of financing. Investors include Kodiak Venture Partners and Genesis Partners.
http://www.legra.com/
  • Legra Systems was co-founded by Israel Drori, the former CEO of MeetU (acquired by Polycom) and previously a Vice President of Wireless Access at BreezeCOM, and Tom Ermolovich, who previously was VP of Engineering at American Internet (acquired by Cisco Systems).

New Fraud Charges Against Enron Broadband Services Execs

The Securities and Exchange Commission (SEC) filed an amended complaint charging five additional former executives of Enron Broadband Services (EBS) with fraud and personally reaping more than $150 million in unlawful profits. Among the false statements identified by the SEC was the claim that the Enron Intelligent Network (EIN) contained built-in intelligence - a software control layer called the "Broadband Operating System" (BOS) - that allowed it to perform more sophisticated applications than other networks. The SEC alleges that the BOS and its predecessor, InterAgent, did not work as Enron claimed and were not able to perform the broadband delivery applications the company was touting. Linda Chatman Thomsen, the SEC's Deputy Director of the Division of Enforcement, said that "at a point when Enron's touted groundbreaking broadband technology was little more than a concept - and its business model was not commercially viable - these defendants played important roles in perpetuating the fairy tale that Enron was capable of spinning straw - or more appropriately, fiber - into gold." Defendants include Kenneth D. Rice, former CEO of EBS; Joseph Hirko, another former CEO; Kevin P. Hannon, former COO; Rex T. Shelby, former Vice President, and F. Scott Yeager, former Vice President.


Separately, the Department of Justice filed additional charges against former Enron Chief Financial Officer Andrew Fastow, his wife and seven other Enron officials. The grand jury also returned a 218-count superseding indictment expanding charges relating to Enron's failed Internet division, Enron Broadband Services. Previously, two EBS executives, Kevin Howard and Michael Krautz, were indicted for their roles in a transaction that allegedly enabled Enron to book more than $100 million in fraudulent revenues. The new, 218-count indictment, which includes securities fraud, wire fraud and money laundering charges, alleges that Rice, Hirko, Hannon, Yeager and Shelby orchestrated a long-running scheme to defraud the investing public and others through a series of false statements and press releases that portrayed EBS as a resoundingly successful business. In fact, the company never got beyond the development stage. The indictment charges that the executives knew they were deceiving the public and that they deliberately sold large quantities of stock, generating nearly $186 million in proceeds for themselves.
http://www.sec.gov/news/press/2003-58.htmhttp://www.usdoj.gov/opa/pr/2003/May/03_crm_268.htm

IBM Creates Electrically-controlled, Single-molecule Light Emitter

IBM has created an electrically-controlled, single-molecule light emitter using carbon nanotubes. Researchers at IBM engineered a carbon nanotube to be "ambipolar", so they could simultaneously inject negative charges (electrons) from a source electrode and positive charges (holes) from a drain electrode into a single carbon nanotube. When the electrons and holes meet in the nanotube, they neutralize each other and generate light. The researchers detected light with a wavelength of 1.5 micrometers, which is used in optical communications. The development is expected to spur further research in the use of carbon nanotubes in nanoscale electronic and photonic devices.
http://www.research.ibm.com/pics/nanotech/
  • Positive and negative charges are simultaneously injected into a carbon nanotube through the source and drain electrodes at its two ends to generate light with a wavelength of 1.5 micrometers. Source: IBM

Staccato Raises $7.5 Million for Ultra-wideband

Staccato Communications (formerly Discrete Time Communications), a start-up based in San Diego, raised $7.5 million in Series A funding for its development of Ultra-wideband (UWB) technology. The company has completed a silicon prototype of a new architecture for UWB that is both compliant with the FCC's regulations and enables high bit-rate UWB in CMOS for the first time. Investors include Bay Partners, Charles River Ventures, and Allegis Capital.
http://www.staccatocommunications.com
  • Staccato Communications (DTC) was formed in early 2002 by Roberto Aiello, former founder and CEO of Fantasma Networks, and other UWB veterans, to pursue a fabless IC business model.


  • In February, the FCC issued new rules to allow commercial use of UWB radios in 7500MHz of spectrum between 3.1GHz and 10.6GHz. Shortly following this ruling, the IEEE formed a standards committee, 802.15.3a, which is in the process of developing a standard specification for UWB for use in Personal Area Networks (PANs).


  • A new WiMedia Alliance has been organized to guarantee interoperability between various manufacturers much the same way that the WiFi Alliance does for 802.11 wireless LAN. http://www.wimedia.org

Telecommunications Association Predicts Uptick in Enterprise Networking

The Telecommunications Industry Association (TIA) is predicting an uptick in spending on enterprise voice and data equipment for 2003 with the growth-rate approaching a "high single-digit" rate over 2002. Key trends supporting the more optimistic outlook include the growing acceptance of IP in call centers and corporate PBXs, an increased need to manage Internet-based customer communications, new applications and products supporting new business processes, and hope of an improved business climate. Some major findings from the TIA's 2003 Telecommunications Market Review and Forecast include:

  • 4.8 million traditional PBX line shipments and 1.8 million IP PBX line shipments are expected in 2003, down 7.2 percent and up 80 percent from 2002, respectively. IP PBX shipments have more than doubled each year from 1999 through 2002.


  • $4.2 billion in total PBX revenues are expected in 2003, up 12 percent from 2002. Total PBX spending is expected to grow at a 7.2 percent CAGR from 2003-2006, following three straight years of decline.


  • Targeting the small and medium business market, centrex and IP centrex offerings will continue to increase the installed base through 2006, with overall growth at a 4.5 percent CAGR from 2003-2006. Competition from IP PBXs and those managed telecommunications service providers that are not centrex-based will lead to slower annual growth rates than in past years.
http://www.tiaonline.org/media/press_releases/index.cfm?parelease=03-56

ITU Approves Two Fiber Standards

The International Telecommunication Union (ITU) approved two new performance measurement standards aimed at making it easier for service providers to deploy Sealed Fibre Optics and Passive node elements. The global standards provide performance specifications for sealed optical closures in outside plant.

  • ITU-T Rec. L.51 contains a summary of parameters that are relevant for the performance of optical nodes. It describes environmental classes and installation conditions, as well as circuit separation and transient losses during network maintenance activities.


  • ITU-T Rec. L.13, focusing on sealed optical closures for outside plant, has been revised according to L.51. The new recommendation provides a performance specification and test plan. The user has the flexibility to select the applicable installation environment, the desired level of optical stability and a level of circuit separation.


The ITU expects to complete a similar recommendation on the performance of Optical Distribution frames (ODF) by the end of the year.
http://www.itu.int/newsroom/press_releases/2003/NP04.html

Wednesday, April 30, 2003

Verizon Cites Gains in Enterprise Data Services

Five months after announcing an ambitious plan to expand its high-speed data network nationally, Verizon Communications reported that 150 of the company's largest business customers have signed contracts for advanced services provided over the network. In the first phase of the expansion, Verizon built out infrastructure throughout the Northeastern US, specifically to connect states such as New York, Massachusetts and Pennsylvania, among others. In Q1, Verizon added long-distance connections in the Northeast for its Regional Frame Relay, SONET and ATM services. These long distance services are now available across New York, New Jersey, Pennsylvania, Massachusetts, New Hampshire, Rhode Island, Delaware, Maryland and Virginia, and the District of Columbia. In the coming months, Verizon plans to extend its services to more cities along the I-95 corridor and add MPLS support. Additional regional offerings will include Transparent Local Area Networking Service (TLS)/Ethernet, IP and optical networking services.
http://www.verizon.com
  • In November 2002, Verizon launched an initiative to deliver long distance data services to large enterprises and government agencies. The company had recently been granted FCC permission to offer long-distance voice and data service to roughly 90% of its customers. Verizon said its Enterprise Advance initiative will create a network with national reach. The new enterprise services arsenal will include transparent LAN, fast packet and IP services, optical networking and voice switching enhancements. The service will be based on an optical and IP backbone providing "any-to-any" transmission. Verizon initially is targeting business and government customers in the Northeast's I-95 corridor, reaching from Boston to Virginia. Verizon will then build out its IP backbone to further connect its national service territory in locations such as Dallas, Los Angeles, Seattle and Tampa. Verizon's Enterprise Advance will extend to 56 key US markets.


  • In July 2002, Verizon Communications decided not to reintegrate Genuity as part of the company. Genuity was created in 2000 when GTE Internetworking spun-off into an independent company as a condition for the approval of the merger between GTE and Bell Atlantic (now Verizon).

Net to Net Technologies Offers a 2-port Loop Bonding ADSL Modem

Net to Net Technologies introduced ADSL Loop Bonding technology that could be used for offering "Triple Play" services, especially IP TV. Net to Net's ANE8420-S modem allows telcos to bond two copper pairs together to deliver 21 Mbps out to 10,000 feet from the central office or remote terminal. At 15,000 feet, the technology supports 12 to 15 Mbps rates. The Loop Bonding is based on Net to Net's Ethernet-based IP DSL technologies,http://www.nettonet.com

Gilat to Provide Large-Scale Satellite Rural Telephony Network in Tibet

China Telecom selected Gilat Satellite Networks to provide a large-scale, satellite-based rural telephony network in Tibet. China Telecom initially will purchase a DialAway hub, 14 gateways and 1,300 VSAT terminals for public call offices to serve the region's remote villages. The tender indicates that the contract can be extended to a total of 5,000 VSATs. Each DialAway remote site supports up to six toll-quality voice channels on the network, providing as many as 4-5,000 voice lines. Gilat has already supplied such a satellite telephony system for China's remote Xinjiang region, as well as to Telkom South Africa, Peru's FITEL, Colombia's Compartel and India's TATA Teleservices.
http://www.gilat.com

BT Chooses CIENA as a Strategic Partner

BT has selected CIENA's LightWorks product portfolio as part of its new, next-generation network. The global three-year deal will place CIENA in the role of a strategic supplier of optical transport and switching equipment and network management software. Products covered by the contract include CIENA's CoreDirector, CoreStream, ONLINE Metro, ONLINE Edge and MetroDirector K2. Also, BT will use CIENA's ON-Center Management system, which combines element, network and service management capabilities, along with simple point-and-click provisioning.
http://www.ciena.com
http://www.bt.com
  • In April 2003, ADVA Optical Networking was awarded an additional three-year contract from BT for its Fiber Service Platform (FSP) 500 systems. This adds to a previous four-year deal, during which time BT standardized the FSP 500 as its multi-protocol platform for deployment of all LAN extension services. ADVA said its FSP 500 has enabled BT to sell more than 10,000 short-haul data circuits into approximately 1,600 enterprises in the U.K. over the past four years.

Deutsche Telekom Tests "Basic" Public Telephones

In response to the declining use of public telephones in many locations, Deutsche Telekom is carrying out a national pilot test involving the implementation of "basic" public telephones until the end of 2005. The basic phones would allow emergency calls to be made, calling cards to be used or reverse charge calls to be initiated. However, they would not have coin and telephone card slots, which are susceptible to vandalism and represent an on-going cost to the company.
http://www.telekom.de

Remote Alaska Town Builds Satellite-Connected Wi-Fi Network

Coffman Cove, Alaska, a small town of 240 people that is accessible only by ferry or air, will install a municipal wireless hotspot with a 2-mile radius from its center. The community voted for SkyFrames' Satellite Broadband Services to install the 802.11 equipment with omni-directional antennas and provide a T1-equivalent network backhaul to the Internet. The city-run ISP has 55 customers willing to pay for the service.
http://www.skyframes.com

Sprint North Supply to Distribute SanteraOne Platform

Sprint North Supply was selected as the first nationwide wholesale distributor for Santera Systems' SanteraOne integrated voice and data switching platform. Sprint North Supply is a supply chain solution provider serving network service providers, manufacturers and resellers throughout North America.
http://www.santera.com
http://www.sprintnorthsupply.com

SureWest Turns a Profit, Cites Triple Play Success

SureWest Communications, an integrated communications provider based in Roseville, California, reported Q1 net revenues of $47.4 million and net income of $0.7 million, or $0.05 per share. The company has nearly 17,000 DSL subscribers and over 15,000 'triple-play' revenue generating units (RGUs). SureWest, which has 100% DSL availability in its service area, has a DSL penetration density of 17.8% of primary residential lines and 12.3% of ILEC access lines.


Consolidated capital expenditures related to operations totaled $11.3 million in the first quarter of 2003, compared to $10.8 million in the first quarter of 2002. Capital expenditures for the remainder of 2003 are expected to total about $50 million, including approximately $21 million for triple-play capital expenditures.
http://www.surewest.com
  • SureWest serves in excess of 135,000 access lines in its 83-square mile territory near Sacramento, California.

IDT Terminates Bid to Acquire ITXC, Comments on Global Crossing

IDT Corporation terminated its proposal to acquire all outstanding shares of ITXC and said it will enter into negotiations with the company. IDT said it would not take any action to acquire the shares of ITXC for the next thirty days without ITXC's consent. It gave no assurance that a deal would be reached.


Separately, IDT reiterated its desire to purchase Global Crossing following Hutchison's decision to drop its bid. IDT has long been a vocal critic of the proposed Asian investment in Global Crossing, arguing that it poses "grave and unnecessary national security risks." IDT urged members of Congress and other governmental bodies to continue their scrutiny of Singapore Technologies and its continued bid for Global Crossing.
http://www.idttelecom.com
http://www.itxc.com
  • On 10-April-2003, IDT publicly announced a proposal to acquire ITXC Corp. in a stock-for-stock transaction that would provide a 15% premium to the stockholders of ITXC, based on the closing price of ITXC's stock on the previous day. ITXC rejected the offer.


  • On 25-February-2003, IDT publicly announced a bid to acquire Global Crossing that would “at least�? match the offer submitted last August by the Hong Kong-based conglomerate Hutchinson Whampoa Ltd and state-controlled Singapore Technology Pte Ltd. The offer was rejected.

SMC to Support Wi-Fi Protected Access by June

SMC Networks announced that its portfolio of wireless networking products will include support for the new Wi-Fi Protected Access (WPA) by June. WPA is an extension of the Wired Equivalent Privacy (WEP) technology.
http://www.smc.com

Cable & Wireless and CODETEL Deploy Nortel Networks' Passport

Cable & Wireless Jamaica and CODETEL (the Dominican Republic's main telecommunications services provider) have each deployed Nortel Networks' Passport 20000 Multiservice Switches. Both carriers will use the Passport 20000 as a core switching platform for voice and data traffic. The Passport 20000 also positions CODETEL to increase capacity for ATM, Frame Relay, private line and other existing services, while introducing IP VPNs and Layer 2 VPNs. Financial terms were not disclosed. Nortel Networks said the installations mark the first deployment of Passport 20000s in the Caribbean or Latin America.
http://www.nortelnetworks.com

Canada's Microcell Emerges from Chapter 11, Eliminates C$1.6 Billion in Debt

Microcell Telecommunications, a Canadian wireless service provider, completed the bankruptcy reorganization process, reducing its total debt obligations by approximately C$1.6 billion and its annual interest obligations by a range of C$160 million to C$200 million. The company emerges with approximately C$125 million in cash and C$25 million in credit. Microcell operates a GSM network and serves one million customers across Canada.
http://www.microcell.ca

Tuesday, April 29, 2003

RealNetworks Reaches One Million Internet Media Subscribers

RealNetworks became the first company to reach one million subscribers for a paid Internet media content subscription service. The company said its RealOne SuperPass, which featured live video of the war in Iraq, became one of the most popular news sources during April. News content delivered grew five fold in the first several days of the conflict.
http://www.realnetworks.com

Microsoft Targets Web Services, Wi-Fi and Bluetooth for Cars

At the second annual Microsoft European Automotive & Telematics Conference held this week in Munich, Microsoft outlined plans for Web services, Wi-Fi and Bluetooth connectivity in cars. The Windows Automotive software platform is already being used in the BMW 7 Series for controlling the GPS-enabled navigation system, electronic and entertainment systems, mobile phones and vehicle diagnostics. The Windows operating system will appear in new cars from Honda, Volvo, Fiat and Citroën. In Japan, Toyota is using Microsoft's Windows Automotive for its G-BOOK telematics system, which will be a standard feature even for cars priced at about US$10,000. Microsoft predicts three trends that will drive telematics to mass adoption. First, interoperability between consumer electronics system and Bluetooth connectivity will enable the car to automatically detect mobile phones and share information with PDAs and Pocket PCs. Tablet PCs could be used in the car as a "no compromise" navigation screen. Wi-Fi connected gas stations or a home garage might download music to the stereo. The second need for telematics that Microsoft sees is safety -- potentially, speech recognition applications could aid the driver without causing too much of a distraction. The third trend is cost reduction. Microsoft argues that a common OS for all the vehicle systems will eventually lower the cost of the whole car.
http://www.microsoft.com/presspass/features/2003/apr03/04-30telematics.asp