Deutsche Telekom: Revenues and Net Income Up, Debt Levels Down

Deutsche Telekom reported half-year revenues of EUR 27.2 billion, up by EUR 5.0 billion compared to last year. Net income also rose by EUR 5.0 billion to a positive EUR 1.1 billion.


Deutsche Telekom's Group debt stood at EUR 53 billion at the end of the quarter, down by approximately EUR 8.1 billion since the start of the first quarter and by EUR 11.3 billion since the end of September 2002. The company generated EUR 4.0 billion in free cash flow for the first half of the year. Some other highlights:

• T-Com's domestic fixed line business grew 13% in terms of access revenues, while call revenues declined 8%.


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  T-Mobile revenues increased to EUR 10.9 billion, up 19% compared to the first half of last year. T-Mobile USA now has 11 million subscribers, up by 652,000 this year. ARPU is $53, up by $3 compared to the previous quarter.


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  T-Systems recorded a 0.9% growth in revenues over last year to EUR 5.127 billion.


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  T-Online continued to focus on profitability, with gross margins now reaching 57.5% compared to 47% at this time last year. About 25% of T-Online subscribers are now using DSL.


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  T-DSL contracts sold reached a total of 3.7 million, up 48% from 2.5 million one year ago.

http://www.telekom.de

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Hanaro Loses Broadband Subscribers in Q2

The total number of broadband subscribers served by South Korea's Hanaro Telecom declined by 10,407 at the end of Q2 2003 to 2,963,514, compared to three months earlier. The company cited the discontinuation of promotional initiatives as the reason for the drop. Meanwhile, overall revenues increased 4.7% quarter-over-quarter to KRW 344.4 billion (US$289 million), while operating costs decreased slightly by 2.7% to KRW 326.4 billion (US$274 million). Some other highlights from Q2:

• the proportion of subscribers for broadband services such as VDSL, Pro, Mid and Lite were 3.62%, 16.92%, 3.77%, and 75.69%, respectively.


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  CAPEX increased by 99.4% quarter-over-quarter to KRW 139.6 billion from KRW 70.0 billion in Q1 due to a major buildout of VDSL.


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  Mr. Chang-Bun Yoon was named as the new CEO of Hanaro, following the resignation of its previous CEO in May. Yoon previously served as the President of the Korea Information Society Development Institute (KISDI), a leading think-tank and government research institute for policy development for the information technology sector in Korea.


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  Hanaro noted that aggressive broadband promotional campaigns in Korea, such as discounts and free trials, have been discontinued, in order "to promote healthy competition among the service providers, positively contributing to increased revenue generation."

http://www.hanaro.com

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Lucent Signs 5ESS Switch Contract with China's Shandong Netcom

Shandong Netcom, a subsidiary of China Netcom, awarded contracts valued at over US$50 million to Lucent Technologies to expand the carrier's 5ESS Switch-based personal handyphone system (PHS) network. The contracts cover four cities, Qingdao, Jinan, Weifang, and Yantai. These expansions bring the total capacity for these four cities to 2.7 million subscribers.
http://www.lucent.com

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Sprint Expands Global IP Network to Taiwan

Sprint announced the expansion of its global IP network to Taiwan. The company has secured a telecommunications business license in Taiwan and begun offering network-based and CPE-based VPNs, IP VPNs, Frame Relay, ATM, Private Lines, Security and Managed Network Services. Sprint also provides SprintLink Frame Relay, Packet Private Line and Virtual LAN services based on L2TPv3 technology. Sprint's regional headquarters is in Hong Kong. It also has a presence in Tokyo, Seoul, mainland China, Singapore, Sydney, Melbourne and Auckland.
http://www.sprint.com

• In January 2003, Sprint introduced three new services based on Layer 2 Tunneling Protocol Version 3 (L2TPv3): SprintLink Frame Relay, SprintLink Packet Private Line and SprintLink Virtual LAN Services. L2TPv3 supports IP encapsulation of numerous Layer 2 protocols and provides authenticated tunneling to allow Layer 2 traffic to securely traverse a native IP core. Sprint has implemented L2TPv3 across its entire IP network without having to re-engineer the network or change its architecture. The capability is supported in Cisco IOS. In the new Frame Relay service the packets ride over the SprintLink native IP core, versus a statically switched ATM network.

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MCI Holds Revenue Steady in June

MCI recorded $2.075 billion in revenue in June 2003, versus $2.034 billion in May 2003. Operating income in June was $146 million versus $116 million in May. MCI had net income in June of $84 million compared to net income of $46 million in May. The company ended the month with $4.6 billion in cash on hand, an increase of approximately $400 million from the beginning of the month.
http://www.mci.com

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ITXC Activates Cisco's Multiservice IP-to-IP Gateway

ITXC, which claims to operate the world's largest international VoIP network, has begun using Cisco Systems' new Multiservice IP-to-IP Gateway to provide the demarcation between VoIP networks for media, control, and management. The demarcation is required for the high-volume bilateral exchange of VoIP traffic between carriers. The new Cisco Multiservice IP-to-IP Gateway has enabled ITXC.net to quickly establish over a dozen new direct carrier-class VoIP connections between ITXC's wholesale VoIP network and wholesale and retail carriers worldwide. It provides support for each carrier's independent call accounting and secure settlement, network privacy and routing. ITXC.net is now exchanging approximately 85 million minutes per month with internetworked VoIP carriers, including earlier generation VoIP connections that are currently being upgraded to this new carrier-class model.


Previously, carriers with VoIP networks have generally converted back to circuit-switched for inter-carrier connections. Earlier generation VoIP to VoIP interconnections required case-by-case custom engineering because of equipment vendor and call control differences and also involved an ongoing technical interdependency that limited independent and secure evolution of each individual network.


The companies said that ITXC is also exploring how to use the Cisco Multiservice IP-to-IP Gateway for its ability to enable packet-based interconnection between ITXC.net and the broad installed base of Cisco AVVID enterprise networkshttp://www.cisco.com
http://www.itxc.net

• During Q2 2003, ITXC carried a total of 999 million minutes of IP telephony traffic, up from 778 million minutes in the second quarter a year ago and 884 million minutes in Q1 2003. Revenue per minute decreased from 9.2 cents in the first quarter to 8.4 cents in Q2 2003.

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CIENA Adds Ethernet multiplexing to ONLINE Edge CWDM

CIENA has added Ethernet multiplexing (EMUX) capabilities to its ONLINE Edge CWDM platform. New EMUX cards enable the ONLINE Edge to multiplex up to eight 10/100 Ethernet signals and a Gigabit Ethernet or Fibre Channel signal into one OC-48/STM-16 wavelength. CIENA said the new capabilities make it more cost-effective for carriers to offer Ethernet Private Line, Ethernet Virtual Private Line and Fibre Channel services on a single network. It also overcomes the inherent distance limitations of Fibre Channel with a distance extension technology that enables service providers to support Fibre Channel services up to hundreds of kilometers without loss in throughput.
http://www.ciena.com

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Hong Kong Broadband Launches its Triple Play

Hong Kong Broadband Network Limited, a subsidiary of City Telecom, launched a pay-TV service, forming the third pillar of its triple-play strategy. The carrier already offers broadband Internet access and local telephony on the same network. The pay-TV service initially is carrying 11 interactive channels, but has the capacity for up to 200 channels. HKBN said the visual quality is comparable to DVD quality. The service is priced at HK$98 monthly and the company is waving the cost of the set-top box and installation during a promotional period.
http://www.ctihk.com/http://www.hkbn.net/

• In July 2003, Nortel Networks announced that Hong Kong Broadband Network Ltd. is using its Succession VoIP solution for delivery of new multimedia and packet voice service bundles, including special packages of fixed-line, IDD (International Direct Dial) and broadband Internet services for Hong Kong residential customers. Nortel Networks describes the project as one of the largest VoIP networks in the world. Hong Kong Broadband Network is currently serving over 120,000 subscribers with packet-based telephony services. Nortel Networks solution for Hong Kong Broadband Network also includes the Nortel Networks Passport Packet Voice Gateway (PVG).

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SMC Prices Gigabit Ethernet Adapters at $30

SMC Networks began shipping a Gigabit Ethernet PCI network card with an MSRP of $29.99. Earlier in the month, SMC began shipping its new five and eight port EZ Switch 10/100/1000 switches, which carry MSRPs of $129.99 and $179.99, respectively.
http://www.smc.com

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Mahi Networks Hires VP of Worldwide Sales

Mahi Networks, a start-up based in Petaluma, California, named Terry White as vice president of worldwide sales. White previously was VP of global sales for Turnstone Systems. Prior to Turnstone, White spent nine years at ADC Telecommunications.
http://www.mahinetworks.com

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XO Reports Q2 Revenue of $286 Million

XO Communications reported Q2 revenue of $283.9 million, compared to $286.1 million reported for Q1 2003, and $325.5 million reported in Q2 2002. Of the Q2 revenue total, approximately $150.0 million was generated from voice services, which includes revenue from local, long distance and other enhanced voice services, $97.3 million was attributable to data services, which includes Internet access, network access and web hosting and $36.6 million resulted from integrated voice and data services. The company said it has increased its direct sales force by 46% since the beginning of the year to pursue new sales opportunities.
http://www.xo.com

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Moscow Cellular Communications Chooses Lucent's CDMA2000

Moscow Cellular Communications will deploy Lucent Technologies' Flexent CDMA2000 1X base stations, PacketStar PSAX Multiservice Media Gateways, and Metropolis next-generation SDH optical products in Moscow and surrounding suburbs. The equipment for this network expansion will be delivered by Verysell Telecom of Verysell group, a Lucent business partner. Financial terms were not disclosed.
http://www.lucent.com

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China Telecom Selects Siemens for Optical Net in Gansu

China Telecom selected Siemens IC Networks to upgrade its optical network in Gansu province. Siemens will be supplying its new SURPASS hiT multi-service provisioning platform (MSPP), which will enable the carrier to offer data services based on Ethernet in the metro domain alongside traditional SDH-based voice services. The contract is the first for the Surpass hiT solution in China. Financial terms were not disclosed.
http://www.siemens.com

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ADC Names Robert E. Switz As President and CEO

ADC named Robert E. "Bob" Switz as its new President and CEO, following the departure of Rick Roscitt, who has accepted the position of President and COO at MCI. Switz has served as ADC's Chief Financial Officer since 1994. Separately, John A. "Gus" Blanchard III was named as non-executive Chairman of the Board.
http://www.adc.com

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Sony Pictures Digital Networks Adopts Portal for Content Billing

Sony Pictures Digital Networks will use Portal Software's platform as the underlying technology for pricing, billing, and subscriber and revenue management of its premium online services. In the past six months, Sony Pictures Digital Networks has launched two new subscription-based services, SoapCity Download and Screenblast.com's premium online creativity service.

• SoapCity Download provides current day, full-length, commercially uninterrupted episodes of "The Young and the Restless," "Days of our Lives," and "As the World Turns" to broadband users on a pay-per-episode or subscription basis.


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  Screenblast.com helps consumers create, enhance, and share their digital images, video and music. The recently introduced and enhanced Screenblast online creativity service makes it easier and more entertaining for consumers to share their "life moments" digitally.

Portal software will enable Sony to charge for online content using one-time, transaction-based, subscription, prepaid, and postpaid pricing models. Other Portal content customers include Reuters, Terra Lycos, AOL Time Warner, and Vivendi.
http://www.portal.com

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UK's National Health Service to Deploy IP Bedside Devices

The National Health Service (NHS), which serves the healthcare needs of the UK, will adopt an IP communications solution implemented by Central Telecom (a leading systems integrator) and the Wandsworth Group (a healthcare communications specialist). The project features a bedside communication appliance that incorporates television, interactive movies, audio books, radio, telephone, messaging and high-speed Internet access functionality. Patients would be able to access Tele-Call, a touch-screen IP-based entertainment and information system. The Tele-Call system also has the ability to connect to the existing hospital IT network to provide clinical access at the bedside for electronic patient records, digital images and administrative information. The technology underlying the Tele-Call voice services is based on Mitel Networks Your Assistant, a PC-based communications management application. Deployment is anticipated at approximately 55 NHS Trust sites across the UK encompassing approximately 22,000 hospital beds. Financial terms were not disclosed.
http://www.mitel.com
http://www.centraltelecom.co.uk

• In March 2003, Central Telecom announced a £2 million deal to supply an IP communications systems for use at 24 NHS Trust sites and 11,300 beds across the UK.

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Leucadia to Buy Out Remaining Interest in WilTel

Leucadia National Corporation announced a deal to acquire outstanding shares in WilTel Communications at a 13.3% premium to WilTel's stock price, based on the respective closing prices of the common stock of Leucadia ($37.56 per share) and WilTel ($14.06 per share) on 11-August-2003. At this exchange ratio, if all of the publicly held WilTel shares are acquired by Leucadia, the former public stockholders of WilTel would own approximately 15.8% of Leucadia. Leucadia currently holds a 47.4% interest in WilTel. Following the acquisition, WilTel would become a wholly owned subsidiary of Leucadia.
http://www.wiltelcommunications.com/

• In October 2002, Williams Communications emerged from Chapter 11 proceedings and changed its name back to WilTel Communications Group, a Nevada corporation. The company emerged with a new $375 million credit facility and no other substantial debt obligations other than those related to its headquarters building. Previous shares of WCG stock were cancelled. The company then issued 50,000,000 WilTel Communications shares for distribution, approximately 54% of which were issued for distribution to unsecured creditors and 44% of which were issued to Leucadia National Corporation, which invested $150 million in the company and purchased the claims of The Williams Companies for $180 million. Separately, the company announced that Howard Janzen has resigned as president, CEO and as a director.


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  In January 2003, WilTel announced a deal to supply SBC Communications with 10 Gbps OC-192c transport for building out its national IP network. WilTel described the contract as the largest in its history.


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  Leucadia National Corporation is a holding company engaged in a variety of businesses, including telecommunications (principally through its 47.4% interest in WilTel), banking and lending (principally through American Investment Bank, N.A.), manufacturing (through its Plastics Division), real estate activities, winery operations, development of a copper mine (through its 72.8% interest in MK Gold Company) and property and casualty reinsurance.

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Turkey Telecom Selects NEC for DSL

Turkey Telecom Industries (TTI) selected NEC for DSL broadband infrastructure and services. The initial order is for 60,000 lines, with a further 200,000 in the near future. The equipment is being provided through Turkish-based systems integrator Meteksan. Financial terms were not disclosed. With this contract, NEC achieves a milestone of exports of five million DSL lines. The company is on track to reach the seven million line milestone by Q1 2004.
http://www.nec.com/global/prod/pro-cm.html

• NEC recently announced DSL wins with SingTel and Malaysia Telekom.


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  NEC's Multi-Service Access DSL platform is designed and developed by the company's Global DSL Broadband Design Centre in Melbourne, Australia.

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Asia Netcom and NEC Team on IPv6 Multicast Video Streaming

Asia Netcom and NEC are launching an IPv6 multicast video streaming solution aimed at businesses and government agencies in Japan. The NEC solution is delivered over Asia Netcom's pan-Asian fiber infrastructure and features end-to-end IPv6 support, including network deployment, content delivery and service provisioning. According to NEC, IPv6 multicast video applications include:

• Video broadcast to multiple locations for corporate seminars, presentations, etc;


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  New service and product training to multiple office locations and franchisees;


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  Security monitoring of factories and branch offices in multiple sites across Japan; and
  
  Local information distribution and public announcements from government sources to locally set up kiosks across Japan.

The companies said that the use of IPv6 solves issues related to duplication of IPv4 private addresses which may occur in the expansion of a VPN network to many sites. NEC and Asia Netcom expect total sales of IPv6 solutions to reach JPY5 billion in three years in Asia, including Japan.
http://www.asianetcom.com
http://www.nec.com

• In July 2003, Asia Netcom launched a wholesale, VoIP-based voice transport and termination service. Asia Netcom's Carrier Voice service utilizes the company's extensive sub-sea and IP networks leveraging its capability to offer five classes of service over IP VPN. The company uses traffic policing and shaping to provide toll quality voice solutions with PSTN connectivity. Asia Netcom said it operates one of the largest Cisco Powered (Carrier Voice) networks in Asia Pacific.


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  In June 2003, Asia Netcom launched a new MPLS-based, corporate IP VPNs featuring five classes of service (CoS) combined with the option for usage-based pricing. The service provides city-to-city connectivity across the Asia Pacific region with additional connectivity available into mainland China and to major markets in the Americas and Europe. Asia Netcom's CoS offerings are defined by Service Level Agreement (SLA) parameters, including jitter, latency, packet loss and service availability. The company offers connection speeds from Nx64 Kbps to Gigabit Ethernet (1000 Mbps). Asia Netcom's core network backbone is being migrated to 2.5 Gbps trunks. A fully meshed MPLS-TE (multi-protocol label switching traffic engineered) native IP network enables both any-to-any and hub-and-spoke configurations.


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  Asia Netcom was officially launched on 11-March-2003.


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  Asia Netcom, a company organized by China Netcom (Hong Kong) on behalf of a consortium of investors that includes Newbridge Capital and Softbank Asia Infrastructure Fund, acquired substantially all of Asia Global Crossing's operating subsidiaries, excluding Pacific Crossing.

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MCI Names Richard Roscitt as President and COO

MCI named Richard R. Roscitt as its president and chief operating officer, reporting to chairman and CEO Michael Capellas. Roscitt previously served as chairman and CEO of ADC, president of AT&T Business Services and president and CEO of AT&T Solutions. Roscitt will oversee MCI's core operating units and will be based in the company's corporate headquarters in Ashburn, Virginia.
http://www.mci.com

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