Thursday, January 8, 2004

NTT DoCoMo Builds i-mode Disaster Message Board

NTT DoCoMo is launching an i-mode Disaster Message Board service that will allow subscribers in Japan to post personal messages for friends and relatives who might not otherwise be able to contact them in the immediate aftermath of a national disaster, such as a high-magnitude earthquake. NTT DoCoMo said that should a major disaster occur, its network will undoubtedly be extremely busy as -- in addition to the heavy traffic among administrative and relief agencies, ordinary users in the affected locale typically attempt outside contact to worried relatives and friends. In the event of severe network congestion, the new packet-based i-mode Disaster Message Board will be given sufficient priority to ensure that it continues to function. Each i-mode user in the disaster area would be able to click an on-screen menu enabling him or her to post up to 10 messages of 100 Japanese characters each. Someone wishing to check for a message left by a person in the disaster area would connect to the Disaster Message Board site, and input that person's cell phone number to display any registered messages.


There are currently more than 45 million DoCoMo cellular phone users in Japan. http://www.ntt.co.jp

RealNetworks and IBM Unveil On Demand Framework

RealNetworks and IBM formed a partnership to enable media companies, network operators, and other businesses to create, protect, and deliver on demand consumer digital audio and video services based on open standards. The joint solution would help corporate customers to more easily manage their digital assets through the combination of RealNetworks' Real 10 digital media platform and IBM's middleware software.


The solution, which is aimed at Internet-delivered TV programming, mobile music services, in-car digital music and other such services, is scheduled to be available worldwide in the first half of the year. It will be positioned to companies as an alternative to building their own infrastructure for digital media distribution and sales.


Additionally, the solution will include open APIs to enable third-party applications, such as customer support, subscription management, and security, to interface easily with the on demand digital media service. The Real 10 platform -- which includes RealPlayer 10, RealAudio 10, RealVideo 10, Helix DRM, and Helix Universal Server -- will be integrated with IBM WebSphere Digital Media Enabler, WebSphere Commerce and DB2 Content Manager. http://www.real.comhttp://www.ibm.com

Industry CEOs Set Sights on "3rd Wave Mobile for Europe"

The CEOs of fourteen key industry players set out a common vision to support and sustain the rollout of mobile networks and services across Europe. The joint proposal calls for action on research, standards, content, security, spectrum, international co-operation and regulation by both the industry as larges as well as by the European Commission and by EU Member States.


Companies represented in the discussion included Alcatel, Bertelsmann, LM Ericsson, Orange,
Hutchison 3G, Nokia, Royal Philips Electronics, Siemens, ST Microelectronics, Telefónica Móviles,
Telecom Italia Mobile, T-Mobile International, Vivendi Universal and Vodafone Group.


Erkki Liikanen, the European Commissioner for Enterprise and the Information Society, agreed that "the mobile sector is critical to Europe's competitiveness and future prosperity," and said that "as we move towards a converged environment it is essential that we harness the capabilities of all technologies to deliver growth."


The group noted that the number of mobile subscribers in Europe increased at a higher rate in 2003 than in 2002 (6%) and 81% of EU citizens now have a mobile telephone. The forecast for global handset sales is approx. 430 million in 2003.


There are currently over 500 000 subscribers of 3G services in Europe, with 3G services in five (including Sweden and Denmark) of the 15 Member States. Over 40 3G networks will be launched in Europe over the next 12 months, according to GSM Europe. http://europa.eu.int

Alcatel Supplies SDH for SingTel

Alcatel was awarded a multi-million US dollar contract to upgrade the high-speed transport network SingTel in Singapore. Alcatel is supplying its advanced multi-service SDH OMSNs, including the compact and cost-effective systems - 1642 Edge Multiplexer and 1662 SMC - designed for metro access applications. The OMSN products deployed in SingTel's network will also be equipped with the Integrated Service Adaptors (ISA) Packet Ring Edge Aggregator (PR_EA) that provides carrier class Ethernet switching capabilities and ISA-ATM, which is key for 3G mobile backhauling as well as for aggregated broadband DSL traffic. NCS Communications Engineering Pte. will undertake the design, project management, installation, commissioning and maintenance of the network. The first rings are already operational. Financial terms were not disclosed. http://www.alcatel.com

UTStarcom Raises its 2004 Guidance

UTStarcom raised its revenue guidance for 2004. The new 2004 financial guidance is as follows:

  • Revenue of $2.5-$2.55 billion, an increase of $50-$100 million, versus previous guidance of $2.4-$2.5 billion

  • Gross Margin guidance remains 30%-32%

  • Increase in Operating Income of $15-$30 million

  • Impact of the equity offering -- 12.1 million additional shares -- Interest income of $7 million -- $0.10 EPS dilution

  • Increase in Net Income of $15-$25 million

  • GAAP EPS guidance of $1.87-$1.92 versus previous guidance of $1.92-$1.95
http://www.utstar.com
  • On 08-Jan-2004, UTStarcom agreed to sell 12.1 million shares of its common stock to Banc of America Securities. The company also granted Banc of America Securities an over-allotment option to purchase an additional 1.8 million shares of its common stock.

IPv6 Sees Role in Home Networking

The IPv6 Forum hosted an event at this year's Consumer Electronics Show in Las Vegas to demonstrate how IPv6 is becoming a reality for everyday applications. IPv6 enables a massive increase in available IP addresses, from 200 million or so assignable IPv4 addresses to trillions of trillions, as well as improving security, mobility, accountability through end-to-end addressing, and customizability through versatile, chainable packet headers. Some observations from the IP Forum:

  • Sony has mandated that all of its products be IPv6 enabled by 2005



  • the average home contains 250 devices that someday could be connected to the Internet via IPv6, according to Connexion by Boeing



  • 2004 will see 1.3 billion mobile phones, 750 million vehicles and tens of millions of other mobile platforms, all of which can be Net-connected through IPv6.



  • a new 6Wi-Fi standard is being developed to allow roaming between hotspots and cellular networks.
http://www.ipv6forum.com/

Covad Partners with ACN

Covad Communications Group announced a resale agreement with ACN, a competitive local, long distance, wireless, Internet access, gas and electricity service provider for consumers and small businesses. Under this new line-splitting agreement, Covad will supply ACN consumer and small business customers with DSL connectivity bundled as part of the ACN Advantage calling plan. ACN will purchase the local loop from incumbent phone companies and bundle its local and long distance services with Covad's DSL services. http://www.covad.com

Texas Instruments and Vonage Collaborate on Broadband Telephony

Vonage selected Texas Instruments as its technology partner to enhance its current software offering and evolve new VoIP services leveraging TI's VoIP technology. The partnership provides VoIP equipment designers and manufacturers with assurance that VoIP products they develop with TI technology will be compatible with the Vonage telephony network. TI said its VoIP solutions are already used in over 80% of the VoIP gateway and IP phone products in use or in development today.


The companies said their alliance would also spur the creation of new devices for consumers and small businesses to use in managing their voice services through WiFi, cable or DSL. http://www.ti.com/broadbandhttp://www.vonage.com

Wednesday, January 7, 2004

PRIMUS Canada Launches Broadband Phone Service

PRIMUS Canada introduced a consumer VoIP service for broadband users in Canada. Customers can select from Toronto, Ottawa, Hamilton, Montreal, Vancouver, Calgary and Edmonton local numbers. Operator services and 911 will not be offered at launch, however development is underway. The service is priced at $19.95 per month, 15% less on average than the basic service customers pay now for traditional residential phone service, according to the company. http://www.primustel.ca

Panasonic Shows Power Line Network for HDTV

Matsushita Electric Industrial (Panasonic) has developed a high-speed home power line IP networking technology capable of high-definition video transmission. The network enables the distribution of broadband connectivity to every room in a house via existing home power lines using an adapter about the size of an audiocassette tape. The device connects a broadband Internet link, such as ADSL or optical fiber, to the existing power lines in the home.


The system uses OFDM (Orthogonal Frequency Division Multiplexing) and Wavelet technology to reduce the noise caused by the interference down to one-fifth of typical noise levels. This creates a proprietary interference-resistant and ultra-high-speed modulation-demodulation method without use of additional filter circuitry. Panasonic also developed a new TDMA (Time Division Multiple Access) specification which implements efficient data transfer while accommodating varying transfer speed requirements. The company said these techniques enable it transmit data over home powerlines at rates of up to 190 Mbps.


The technology will be part of the HomePlug Powerline Alliance's next generation HomePlug AV specification for audio, video and data networking. If the specification is approved by summer, Matsushita plans to have adapters for both consumer and office ready by the end of 2004. The company will also sell its chip to other OEMs. http://www.panasonic.co.jp/global/top.html

UTStarcom Sells Shares to Banc of America Securities

UTStarcom agreed to sell 12.1 million shares of its common stock to Banc of America Securities. The company also granted Banc of America Securities an over-allotment option to purchase an additional 1.8 million shares of its common stock.


Shares of UTStarcom (UTSI) closed on 08-Jan-04 at $41.34.


The company said it intends to use the proceeds of this transaction (excluding any over-allotment option) from the offering for strategic and general corporate purposes such as, but not limited to, acquisitions, investments, working capital or capital expenditures. http://www.utstar.com

USCarrier Expands its Regional Network with Acquisition

USCarrier Telecom, an Atlanta-based wholesale carrier, will acquire Lightwave, an Alabama based fiber-optic network company for an undisclosed sum. The deal includes more than 5,000 fiber miles, SONET, DWDM multiplexing equipment and dark fiber. USCarrier is also purchasing additional points of presence from Mobile to Montgomery; Montgomery to Panama City; Panama City to Mobile and Montgomery to Columbus, Georgia. This will add to USCarrier's current Southeast footprint, making the total 11,800 fiber miles throughout Georgia, Alabama and Florida. http://www.uscarrier.com

Vodafone chooses Tellabs' Next-Gen SDH

Vodafone Hungary deploy Tellabs' integrated transport and access solutions under one unified management system. The next-generation SDH and access solution will be used for the mobile transport infrastructure. The network includes both the Tellabs 6300 managed transport and Tellabs 8100 managed access systems as well as the Tellabs 8100 network management system that provides end-to-end integrated network management. Financial terms were not disclosed. http://www.tellabs.com

MSN Adds Video for Broadband Users

Microsoft launched MSN Video, a new service that delivers free broadband video content to all MSN.com and My MSN visitors in the U.S. The service was launched with a range of content partners, including Discovery Communications, NBC News and NBC Entertainment, NHL.com and Showtime Networks. Microsoft is supporting the service with high-speed streaming video advertising. The spots are integrated with MSN Video's high-resolution news, sports, entertainment and other programming.


Initial content partners on the MSN Video service include NBC, Discovery Channel. Atom Films, Showtime, HGTV and others. http://www.microsoft.com

Bill Gates Highlights In-home Media Connectivity

"Our vision is to deliver the software that enables a seamless technology experience for people wherever they are -- in the home, in the office or on the go," said Bill Gates in a keynote address to the 2004 International Consumer Electronics Show. Gates emphasized the growing value of software services and highlighted some of the company's efforts to extend the reach of digital media beyond the PC. These include:

  • Windows Media Center Extender Technology, which enables consumers to access their digital entertainment, such as live and recorded television, photos, movies, and music that reside on their Windows XP Media Center Edition PC, from any room in the home. The technology allows devices throughout the home to utilize the full processing and storage capabilities of the PC. Alienware Corp., Dell Inc., Gateway Inc., HP, Samsung Electronics Co. Ltd., Tatung Co. and Wistron Corp. will incorporate the technology in a variety of hardware form factors, including set-top boxes and televisions, by the 2004 holiday season.


  • a demonstration of Portable Media Center devices, which lets people to take their favorite photos, music and home videos with them in a handheld player


  • increased capabilities of Microsoft TV Foundation Edition 1.5, which enhances the consumer digital cable viewing experience by providing fully integrated support for high-definition television (HDTV) and digital video recording (DVR).


  • the release of high-definition video for Windows XP users, with 16 feature films being released as high-definition movies on DVD discs by a variety of publishers using Microsoft Windows Media 9 Series. (The movies offer video resolution of up to approximately six times that of today's DVD video.)


  • "Media Variations," a new tool under development at Microsoft Research that offers a novel way for people to explore large amounts of connected information.


  • "MSR Media Browser," another tool under development at Microsoft Research that offers a consistent and seamless interface that helps people find and work with "clusters" of photos and video on the PC, a digital picture frame or other device based on when the photos were taken, who they feature and other attributes.
http://www.microsoft.com

Equant Unveils New Strategy

Equant announced a five point reorganization to better meet the new communications needs of multinational companies. Going forward, Equant's services expertise will be centered around five business practices: consulting; project management; service management; integration services; and managed services.


The new focus is also aimed at reinforcing Equant's Data and IP solutions. The company already serves 1,000 global businesses with IP VPNs. Equant plans to further strengthen its leadership in Europe, and increase its presence in North America. The company said its strategy is also to expand leadership in new market segments, in particular on mobility and enhanced voice offerings as part of its integrated and customized solutions.


The reorganization include the appointment of five new executives to Equant's Executive Committee: Didier Duriez, Head of Network, Managed Services & Security; Alex Gouvea, Head of Customer Care & Integration Services; William Priest, Head of Products & Solutions; Stephane Rougeot, Head of Business Development, Marketing & Communications and Mack Treece, Head of Business Operations & Services. http://www.equant.com

Nortel Networks and Avici Enter Partnership

Nortel Networks will integrate, sell and support Avici Systems' carrier-class core routers under a three-year strategic agreement. As part of this agreement, Avici and Nortel Networks plan to engage in joint marketing activities, solutions development and technology collaboration. These activities will initially be focused on the service management and operations integration necessary to deliver seamless convergence of multiservice networks over an IP/MPLS core, along with associated support for new IP/MPLS services. Avici products will be integrated under Nortel Networks Preside Management system for basic operations, administration, maintenance and provisioning support (OAM&P).


As part of the deal, Avici has granted Nortel Networks a warrant to purchase 800,000 shares of Avici common stock at a formula exercise price, which approximates US$8.00 per share. The warrant is exercisable after seven years, but the right to exercise the warrant may be accelerated if Nortel Networks achieves certain performance milestones. http://www.avici.com
  • In June 2003, Avici Systems and Huawei Technologies have entered into an OEM agreement under which Huawei will sell Avici's routing products in China.

Verizon Wireless Announces National 3G Rollout

Verizon Wireless announced the nationwide expansion of its BroadbandAccess service which is based on Evolution-Data Optimized (EV- DO) 3G technology. The BroadbandAccess commercial service, which delivers average user speeds of 300-500 kbps, is expected to be available in many major U.S. cities this summer.


Since October 2003, Verizon's BroadbandAccess service has been deployed in Washington D.C. with Lucent Technologies, and in San Diego with Nortel Networks.
http://www.verizonwireless.com

Broadcom Ships its 11 Millionth 802.11g Chipset

Broadcom has shipped more than 11 million of its 54g wireless LAN chipsets, its implementation of the IEEE 802.11g wireless LAN standard. The company estimates that its share of the US retail market for 802.11g products has recently risen to 78%. Broadcom introduced its 54g product in November 2002. http://www.broadcom.com

MCI Sees Improved Cash Position

MCI plans to reduce the size of its Debtor-in-Possession Credit Facility to $300 million from $1.06 billion. The credit facility was arranged at the time the company filed for reorganization under U.S. bankruptcy laws. Since then, MCI has accumulated cash balances which currently are in excess of $5 billion. With no currently expected need to borrow funds, MCI has elected to decrease the credit facility and thereby reduce the commitment fees it is paying. MCI anticipates the reduced size credit facility will only be used when necessary to provide letters of credit. At present, the Company has approximately $80 million of outstanding letters of credit. http://www.mci.com