Telstra Launches DVD Delivery Service by Mail

Telstra introduced a new "fetchmemovies" service that enables Australians to browse through an online catalog of more than 8,000 titles and then have the DVD delivered by the convential postal service. As DVDs are returned, more are mailed out.


Telstra said the DVD rental service helps it build marketing relationships with strategic partners. Telstra will source content from a variety of Australia's largest distributors including Warner Home Video, Fox Home Entertainment, Paramount, Columbia Tristar, Universal, AV Channel, Shock/Kaleidoscope, Buena Vista Home Entertainment and Roadshow. http://www.telstra.com

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Telstra Connects 500,000th broadband customer

Telstra activated its 500,000th ADSL customer. Over 1,000 of Telstra's central office exchanges in Australia have now been ADSL enabled. Telstra has set a target of one million broadband subscribers by the end of 2005 and $1 billion in revenue from broadband by the end of 2006http://www.telstra.com

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BT's ADSL Rollout Reaches 1,000 Central Offices

BT has now equipped over 1,000 of its central office exchanges with ADSL. More than 85% of UK homes and businesses can now get ADSL and this figure is expected to reach 90% by the summer. Since July 2002, BT has relied on a "trigger" scheme whereby a certain number of requests for broadband in a given community causes the company to install the required DSL equipment in the local exchange. More than 700,000 of these service requests have been received since July 2002.


On 23-January-2004, Prime Minister Tony Blair visited his local telephone exchange today to see it being upgraded for high speed broadband internet services. http://www.bt.com

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Time Warner Telecom Acquires Enron Net in Oregon

Time Warner Telecom was the successful bidder to acquire the fiber assets of Enron Broadband Services in the Portland, Oregon area. The asset purchase extends the Time Warner Telecom local fiber network to 158 route miles in Portland and the neighboring communities of Beaverton, Hillsboro, Tigard, and Vancouver, Washington. Financial terms were not disclosed. http://www.twtelecom.com

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Savvis to Acquire Cable & Wireless America

SAVVIS Communications was the winning bidder in a court-supervised sale of the network assets of Cable & Wireless USA and Cable & Wireless Internet Services (together CWA). Under the deal SAVVIS will acquire substantially all of the CWA assets for $155 million in cash and assume liabilities of approximately $12.4 million, subject to certain regulatory approvals. The U.S. Bankruptcy Court in Phoenix, Arizona approved the proposed sale on 23-Jan-2004.


SAVVIS was chosen as the winner among seven bidders at a two-day auction concluded on 22-Jan-2004, by CWA's financial advisor, The Blackstone Group.


SAVVIS' shareholders Welsh, Carson, Anderson & Stowe and Constellation Ventures, a Bear Stearns asset management fund, have committed to finance the purchase price and provide ongoing funding to support the acquired assets. In addition, SAVVIS has entered into a Letter of Intent with Du Pont Fabros Interests pursuant to which SAVVIS will sell its rights to acquire five of the CWA data centers to DuPont for $52 million, and to leaseback those data centers for 15 years.


SAVVIS said its purchase includes substantially all of CWA's assets:

• a Tier 1 IP Network, serving more than 2,000 enterprise customers, with a footprint encompassing 27% of all Internet routes and providing a range of IP network services from public Internet to private lines



• a comprehensive Hosting Service business with more than 1,000 enterprise customers, 15 data centers, a Fortune 500 focus, and a complete range of managed hosting, consulting and infrastructure services.

SAVVIS said the deal would make it one of the world's largest IP/hosting infrastructure providers. The acquired assets will add over 5,000 customers and the combined entity is currently projected to have annualized revenues of approximately $700 million by year end 2004. http://www.cwusa.comhttp://www.savvis.net

• On 08-Dec-2003, CWA announced that it had agreed to an asset sale with Gores Technology Group. As part of the deal, CWA filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Qualifying bidders then had an opportunity to submit higher and better offers for CWA's evaluation through a court-supervised competitive bidding process.

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ATS and Verio Offer IPv6 Capabilities to Government Customers

Advanced Technology Systems, Inc. (ATS) and Verio began offering an IPv6 Gateway Service in the U.S. targeted at federal, state, and local government agencies through the General Services Administration's (GSA) Millennia Lite Contract Vehicle. Additionally, ATS is offering new bundled communications products and services, called ATS PowerHouse Hosting Solutions for government clients.


The IPv6 offering from ATS and Verio currently delivers service on the NTT/VERIO Global IPv6 Backbone network to customers in North America, as well as many countries in the Asia-Pacific region, including Japan, Korea, Malaysia, Taiwan, Hong Kong and Australia, as well as in Europe, including Great Britain, the Netherlands, France, Germany and Spain. NTT Com currently provides IPv6 to approximately 500 customers around the globe. http://www.atsva.comhttp://www.verio.com

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Netopia Announces Certification for Wi-Fi Phones

Netopia launched a certification program for Wi-Fi cordless phones. The company said its certification program is open to any Wi-Fi cordless phone manufacturer or developer that uses the 802.11b or 802.11g standards. The certification process seeks to verify Wi-Fi cordless phone interoperability and VoIP transmission with QoS through Netopia's 3-D Reach wireless DSL and broadband gateways. http://www.netopia.com

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ARRIS Cadant CMTS Passes One Million Line Milestone

ARRIS announced that its Cadant C4 cable modem termination system (CMTS) has now over one million live subscriber lines passing through its hardware and software. The Cadant C4 was launched in January 2002. Just under 400 C4s have been sold throughout the world to date. http://www.arrisi.com

• The ARRIS Cadant C4 CMTS is a PacketCable, DOCSIS 1.1 and Euro-DOCSIS 1.1 qualified carrier-grade edge router/CMTS.

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Lockheed Martin/Northrop Selected for Next-Gen Satellite System

A Lockheed Martin /Northrop Grumman team was awarded one of two industry contracts valued at approximately $472 million to enter the Risk Reduction and System Definition phase of the U.S. Air Force's Transformational Communications MILSATCOM (TCM) Space Segment. The two competing teams will conduct risk reduction demonstrations and system trade studies over a 27-month period. A single contractor is expected to be chosen in 2006 to build the next generation military satellite system.


The Lockheed Martin/Northrop Grumman team also includes Rockwell Collins, General Dynamics Advanced Information Systems, L-3 Communications, Stratogis, Cisco, C&H Associates, and ViaSat. Lockheed Martin Space Systems (Sunnyvale, CA) will serve as the prime contractor and systems integrator for the TCM Space Segment. Northrop Grumman will provide the satellites' transformational payloads, end-to-end communication systems engineering, and payload ground processing.


Lockheed Martin said TCM represents the next step toward transitioning the Department of Defense wideband and protected communications satellite architecture into a single network comprised of multiple satellite, ground, and user segment components. The system will network mobile warfighters, sensors, weapons, communications command and control nodes located on UAVs, piloted aircraft, on the ground, in the air, at sea or in space. TCM is one of several elements that make up the Transformational Communications architecture that the national security space community has developed over the last two years. http://www.lmco.com

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Boeing Team Selected for Next-Gen Military Satellite System

Boeing was awarded a $472 million contract by the Air Force Space and Missile Systems Center tp develop a system design and demonstrate critical technologies for a secure, high-capacity global communications network serving the U.S. Department of Defense, NASA and the intelligence community.


The Transformational Communications MILSATCOM Space Segment incorporates laser communications, next-generation processors and routers, internet protocol, information assurance, network management, and other advanced technologies into an architecture that is compatible with future and legacy space and ground network systems.


The contract, which extends through 2006, supports the government's network-centric operations vision. A single contractor will be chosen in 2006 and the next generation satellite system is slated for launch in 2011. The system is being designed to provide survivable, strategic communications services as well as new capabilities such as communications on the move for tactical users, and enhanced airborne intelligence, surveillance and reconnaissance connectivity.


Boeing and its industry team members are contributing innovations on other transformational DoD systems such as Future Combat Systems, Joint Tactical Radio System, and Family of Advanced Beyond Line-of-Sight Terminals. http://www.boeing.com

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French ISP Selects IBM/Cirpack for Consumer VoIP

Free, a subsidiary of the Iliad Group, the second largest French ISP, is using a joint solution from IBM and Cirpack to deliver a consumer VoIP service over unbundled DSL lines. The residential VoIP is provided as an add-on to the company's ADSL service in the areas where Free has deployed its own DSL infrastructure. The service is available in about 20 metropolitan areas in France (Paris, Lyon, Grenoble, Aix, Nice, Marseille, Toulouse, Bordeaux, Nantes, Rennes, Caen, Rouen, Lille, Nancy, Strasbourg, and to be added soon Dijon, Besançon, Montpellier).


Subscribers pay EUR 29 per month for a 2Mbps ADSL line including free phone services (including national PSTN termination) and free TV Channels. http://www.cirpack.comhttp://www.free.fr/

• In October 2003, CIRPACK and IBM Global Services announced a partnership focusing on next generation telecom voice solutions in ETSI compliant countries: Europe, Middle East, Africa, and most Asian and Latin American countries. IBM Global Services will provide the support services and systems integration expertise for CIRPACK SoftSwitch solutions enabling telecom operators to deploy new voice services while maintaining legacy services.



• CIRPACK's softswitch platform can host a range of high-density network interfaces (IP, ATM, TDM) and supports multiple local signaling protocol variants simultaneously (ISDN, SS7, VoIP, VoATM). It can be configured to manage voice transit services (Class-4) as well as subscriber services (Class- 5), handling up to 5 millions BHCA (Busy Hour Call Attempts), and 180,000 simultaneous voice channels over any type of legacy and packet networks.

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Data Connection Enhances MeetingServer Web Conferencing

Data Connection released a new version of its MeetingServer web conferencing solution, which enables service providers to host their own self-branded web conferencing service, rather than reselling the services of a third-party provider. MeetingServer uses a reservationless scheduling model, where participants are invited to the meeting using a click-to-invite function. The latest release includes voting and polling functions and high-performance presentation up/download. It can be integrated with audio bridges, and the user interface is fully customizable to allow rebranding. Service provider licensing the product include BT. It is also OEMed by equipment vendors and conferencing providers including Latitude Communications (now owned by Cisco), Spectel and Documentum. http://www.dataconnection.com

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Trapeze Names Ex-Nortel Exec as CEO

Trapeze Networks, a start-up based in Pleasanton, California named James W. Vogt as its new president and CEO. Prior to joining Trapeze, Vogt was president and CEO at Ingrian Networks, where he led the privately held secure appliance firm through two rounds of funding. He also was president of the Nortel Networks small business solutions group, and before that, served as vice president of product management for Bay Networks' desktop products group.


Trapeze Networks offers a wireless LAN Mobility System. http://www.trapezenetworks.com

• Trapeze Networks offers a WLAN Mobility System that allows enterprise users to login once, roam and retain their access privileges and policies wherever they go on the corporate network. Seamless roaming is a key enabler for time-sensitive applications like Voice over Wireless IP (VoWIP). The Trapeze system preserves existing network engineering -- VLAN and subnet assignments, authentications and ACLs -- while enabling the deployment of new services like prioritization, access controls, roaming policies, location tracking and usage metrics on a per-user basis from wired to wireless. The Trapeze WLAN Mobility System includes the Mobility Exchange, Mobility Points, Mobility System Software and a tool suite. The Mobility Exchange System offloads Extensible Authentication Protocol (EAP) processing, session consolidation, and hardware-accelerated encryption and key generation from AAA servers. This reduces 802.1X authenticators by 20-to-1, according to the company. Trapeze also supports standard WLAN cryptography, including Wi-Fi Protected Access (WPA), the Temporal Key Integrity Protocol (TKIP), the Advanced Encryption Standard (AES), and dynamic Wired Equivalent Privacy (WEP) with rotating broadcast/multicast keys.

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Marconi Supplies Access Hub to Versatel Deutschland

Versatel Deutschland is deploying Marconi's Access Hub Multi Service Access Node (MSAN) platform to support its rollout of broadband access services to private customers. Specifically, Marconi is supplying its AXH600 and AXH2500 platforms, alongside its Distributed Multiservice Platform (DMP). The combined platforms will enable Versatel to offer broadband access services, including ISDN and xDSL. Financial terms were not disclosed. http://www.marconi.com

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Rogers Cable to Launch 5 Mbps Home Service

Canada's Rogers Cable is planning to launch a new, 5 Mps Internet service in Ontario and New Brunswick. This new service will be in addition to the current offering with speeds up to 3Mbps (already faster than the DSL competitor) provided to existing Rogers Hi-Speed Internet customers. http://www.rogers.com/

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BellSouth Adds 127,000 DSL Subs in Q4

Long distance and DSL revenue growth offset access line declines at BellSouth during 2003, holding the company's communications revenues nearly flat at $18.4 billion compared to 2002. For Q4, BellSouth reported consolidated Q4 revenues of $5.7 billion, an increase of 0.9% compared to the same quarter of the previous year. Net income was $787 million compared to $574 million in the same quarter a year ago. Operating free cash flow totaled $5.3 billion for the full year. Over the last seven quarters, the company has increased its quarterly dividend 31.6% to 25 cents per common share. Some additional highlights:

• CAPEX: Capital expenditures for 2003 were $3.2 billion, a reduction of 15.5% compared to 2002. The 2003 CAPEX to revenue ratio was 14.2%. For reference, CAPEX in 2001 peaked at $6.0 billion and the CAPEX to revenue ratio was in the mid-20s.



• Debt: Total debt at December 31, 2003 was $15.0 billion, a reduction of $2.4 billion since the first of the year.



• Service Bundling: In Q4, BellSouth Answers packages increased to more than 3 million, which represents a 24% penetration of primary access lines. Answers combines customers' local, long distance, Internet and wireless services all on one bill. BellSouth Unlimited Answers contributed to the growth in package customers with subscribers exceeding 1 million at the end of fourth quarter. Unlimited Answers allows customers to call anywhere in the United States anytime for a flat monthly fee.



• Long Distance: BellSouth added approximately 3 million long distance customers during 2003, for a total of 3.96 million customers and almost 30% penetration of its mass-market customers by year-end. During Q4, about 40% of new customers included international long distance in their calling plans.



• DSL: BellSouth added 126,000 net DSL customers in Q4, bringing its end of year total subscribers to 1.46 million.



• Data: Led by DSL, data revenues of $1.1 billion grew 4.0% in Q4 2003 compared to the same quarter of 2002. DS1 and DS3 circuits continue to account for about 60% of BellSouth's wholesale data revenues. In Q4, DS1 units grew 1.3% and DS3 circuits were flat.



• Access lines: Total access lines of 23.7 million at December 31 declined 3.6% compared to a year earlier, impacted by the economy, competition and technology substitution. Residence and business access lines served by BellSouth competitors under UNE-P increased by 199,000 in Q4.



• Domestic Wireless: Cingular Wireless added 642,000 net cellular/PCS customers in Q4, ending the year with more than 24 million cellular/PCS customers.By the end of 2003, the company's GSM/GPRS network was available to 93% of its potential customers and with approximately 57% of subscriber minutes traveling on this upgraded network.

http://www.bellsouth.com

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Tellabs' Q4 Revenue Up 14% to $279 Million

Tellabs reported Q4 revenue of $279 million up 14% from $245 million in Q3 2003, marking the fourth increase in sequential revenue in the past five quarters. Tellabs International generated 40% of the quarter's overall revenue. The company recorded a net loss of $23 million or 6 cents per share. Excluding previously announced restructuring charges of $44 million, Tellabs earned 3 cents a share or $12 million in Q4 2003. Some highlights:

• Optical Networking -- Sales of optical networking systems, which include Tellabs' strategic North American products, were $117 million, up 11% from the third quarter. About 2% of Tellabs' overall revenue came from new products in North America.



• Next-Gen SDH and Managed Access Services -- Sales of next-generation SDH and managed access systems totaled $74 million, up from $70 million in the third quarter. About 6% of Tellabs overall revenue came from new products in international markets; sales of these new products surged 48% to $16 million from $11 million in the third quarter. This increase came largely on the strength of the Tellabs 6350 switch node, for which the company has now received more than 300 orders. Among customer wins announced in the quarter were T-Mobile, Vodaphone, Embratel, and Beijing Zhetong for the Beijing Olympics.



• Other Products -- Voice-quality enhancement, telephony distribution solutions, data and other revenue amounted to $51 million, up 65% from $31 million in the third quarter.



• Services -- Services revenue was $37 million, basically flat with $39 million in the third quarter.

http://www.tellabs.com

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IBM Releases Linux Platform for Telecom Applications

IBM released a new Linux-based Carrier Grade Open Framework (CGOF) Reference Implementation platform for telecom service providers. The platform includes CGOF compliant hardware and middleware components and services. The Carrier Grade Open Framework (CGOF) Reference Implementation is available through IBM Global Services.


The Linux framework is being supported by various network equipment manufacturers and IBM business partners, including Cirpack, jNETx, Lucent, Snowshore, Sylantro, and Ubiquity.


IBM said its Carrier Grade Open Framework would address three of the key factors that challenge telecom service providers:

• how to combat the increasing costs of network operation;


• how to decrease the complexity of introducing change into a network infrastructure;


• and how to reduce the cycle time of implementing new packet-based services to meet growing customer demand.

IBM said its intends to further its commitment to the telecommunications industry with the introduction of a modular, CGOF compliant product offering -- the IBM eServer Integrated Platform for Telecommunications (IPT) in 2004. The IPT offering will include a variety of IBM eServer systems including BladeCenterand the new BladeCenter T, which will also be available later this year. IBM also plans to offer expanded software solutions including IBM Director for systems management, IBM middleware and services that address both the NGN and Telecommunications back office requirements support for Linux with OSDL specified Carrier Grade Linux features. http://www.ibm.com

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Global Crossing Stock Begins Trading on NASDAQ

Global Crossing's new common stock began trading on the NASDAQ National Market on 22-January-2004, under the trading symbol GLBC. The company's stock had been trading in the over-the-counter market under the symbol GLBCF since Global Crossing's emergence from Chapter 11 on 09-December-2003. http://www.globalcrossing.com

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Nortel Networks/Flextronics to Evolve Supply Chain

Nortel Networks will divest substantially all of its remaining manufacturing activities, including product integration, testing, and repair operations carried out at its facilities in Calgary and Montreal (Canada), Campinas (Brazil), Monkstown (Northern Ireland), and Chateaudun (France). It will also divest itself of certain related activities, including the management of the supply chain and related suppliers for these locations.


Nortel Networks is in discussions with Flextronics about the activities being considered for divestiture. The company said that a successful completion of these discussions could result in Flextronics undertaking and managing in excess of US$2 billion of Nortel Networks annual cost of sales on a go forward basis and involve the transfer from Nortel Networks to Flextronics of more than US$500 million of manufacturing and inventory assets. In return Nortel Networks anticipates receiving from Flextronics proceeds in excess of US$500 million in cash, over a nine-month period, for primarily inventory and certain manufacturing assets, as well as an additional amount for certain intangible assets. At this stage, however, Nortel Networks said there can be no assurances that these discussions will lead to a binding agreement.


A deal with Flextronics could affect up to approximately 2,500 Nortel Networks employees. http://www.nortelnetworks.com

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