Wednesday, May 5, 2004

MetroPhotonics Secures C$7.7M for Photonic ICs

MetroPhotonics, a start-up based in Ottawa, received a $7.7 million CDN investment from Technology Partnerships Canada (TPC), a Canadian government agency that provides funding support to Canadian companies for research and development, and pre-commercialization.



MetroPhotonics is building an integrated chip that simplifies optical system design and eliminates multiple components and fiber connections. These optical devices combine WDM components, passive waveguide circuitry, and active waveguide devices on a single chip, using a patented design process combined with standard indium phosphide (InP) semiconductor manufacturing technology. Its lead product, the SurePath Monitor is currently shipping to customers on a controlled availability basis, with full commercial availability this quarter on completion of Telcordia qualifications. http://www.metrophotonics.com

Ohio's Buckeye TeleSystem Extends Network with Mahi

Buckeye TeleSystem, a facilities-based carrier based in Ohio, has expanded its deployment of Mahi's Networks Mi7 platform to aggregate additional SONET rings utilizing the OSI/DCC management protocol. Systems utilizing the IP/DCC management protocol were initially cut over to the Mi7 in August 2003. This follow-on Mi7 build-out simultaneously terminates SONET rings from two other equipment suppliers supporting both IP/DCC and OSI/DCC operations management protocols. The companies said that they believe that the direct termination of SONET rings from two other vendors onto the Mi7 is a first in the industry.



Older SONET access multiplexers utilize an OSI/DCC protocol scheme for management while next generation MSPPs utilizes an IP/DCC protocol scheme. Mahi's Mi7 simultaneously supports operations management services for these two remote systems.



Mahi's Mi7 Metro Core Aggregation System (MCAS) combines switching, transport, and differentiated service and control features. http://www.mahinetworks.com

Mitel Completes $135 Million Financing Arrangement

Mitel Networks completed a $135M financing package consisting of equity investment, debt to equity conversion and expansion of its credit facilities, which significantly strengthens the company's balance sheet and provides additional capital to finance growth plans.



EdgeStone Capital Partners, one of Canada's leading independent private capital managers, led the equity round with a $20M investment. In addition to EdgeStone's investment, Mitel had previously raised over $50M of debt from its principal shareholder and other private investors, all of whom chose to convert their respective holdings into equity as part of this arrangement. This equity financing was augmented by new credit facilities.



Mitel Networks, which is headquartered in Ottawa, supplies IP telephony solutions. http://www.mitel.com

Marvell Unveils Embedded Wireless APs for Home Networks

Marvell introduced a new embedded wireless Access Point (AP) technology for home wireless networks. The key advantage of Marvell's LiveAP is an "on-demand" feature that keeps the AP active regardless of whether the host device is on or off. The technology uses an extremely low-power design that can utilize the "standby" current from the host device to remain fully active even when the device is off. LiveAP also supports the latest wireless security standards, such as WPA, WPA2, and 802.11i AES security extensions. It also supports QoS capabilities as defined in the upcoming IEEE 802.11e standard. http://www.marvell.com

Belgium's Telenet Selects Nortel for PacketCable VoIP

Telenet, a cable operator passing some 2.4 million homes in Belgium, has selected Nortel Networks to provide a PacketCable VoIP solution. The implementation will enable Telenet to offer residential and business IP telephony services and broadband Internet access over its DOCSIS 2.0-based ExpressNet network.



The VoIP network from Nortel Networks will be a hybrid solution integrated with Telenet's existing TDM infrastructure. The agreement includes Nortel Networks Succession* Communication Server (CS) 2000, the Passport Packet Voice Gateway (PVG), its Preside network management systems, and professional services ranging from network design to network operation and maintenance. Financial terms were not disclosed. http://www.nortelnetworks.com

ITU to Develop NGN Standards

The International Telecommunication Union (ITU) will begin its process of developing global standards for next generation networks (NGN). The ITU said the need for global standards is critical as most operators expect to move to an IP infrastructure.



One area to be addressed by the ITU effort is the concept dubbed "nomadicity," which will give fixed line and mobile users completely seamless communication. Simply put this means the underlying technology will be invisible to the user regardless of a multi-service, multi-protocol, multi-vendor environment. An ITU-T Focus Group plans to build on existing fixed/mobile convergence architecture (e.g. 3GPP/3GPP2 IP multimedia subsystem (IMS)) to provide transparency between fixed and mobile networks.



In addition to setting standards for "nomadicity," other objectives of the Focus Group will be to develop specifications in the areas of Quality of Service in DSL, authentication, security and signalling.



The exact structure of the working groups will be decided next month. http://www.itu.int/newsroom/press_releases/2004/05.html

Alcatel Acquires Pirelli's Undersea Networking Units

Alcatel and Pirelli signed an agreement regarding their respective submarine telecommunication businesses. Alcatel will acquire certain Pirelli related assets and obtain intellectual property rights for EUR 52.5 million, while Pirelli will pay EUR 45 million to acquire a 5% shareholding in Alcatel's submarine business.



The companies said optical submarine networks continue to play an instrumental role in the development of the global Internet infrastructure by interconnecting continents and remote parts of the world with massive, hi-speed information highways. http://www.alcatel.comhttp://www.pirelli.com

Aegis Semi Secures $10 M for Active Film Optics

Aegis Semiconductor, a start-up based in Woburn, Massachusetts, secured a Series C round of financing for $10 million for its dynamic optical components and systems.



Aegis Semiconductor is delivering low-cost dynamic optical components based on its thin film technology. The company's "Active Thin Films" leverage the physical properties of semiconductor thin films, most significantly a refractive index which is highly dependent on temperature. Aegis can make tunable filters with application specific filter shapes, tuning ranges and with transmission wavelengths between 1 and 10 microns. The company has filed more than 20 patents on its technology.



The round of financing was completed with participation from all existing investors including St. Paul Venture Capital, Alta Partners, YankeeTek Ventures, Technology Venture Partners, Stata Venture Partners, and Megunticook Management. http://www.aegis-semi.com
  • Aegis Semiconductor is headed by company founder Matthias Wagner, who previously served as COO/CFO of Knite, Inc., an engine electronics company.

ECI Reports Revenue of $111 million, Narrows Loss

ECI Telecom reported Q1 revenues of $111 million. compared to $109 million in Q4 and $113 million in Q1 of 2003. The company recorded a net loss for Q1 of 2004 of $1.2 million or $0.01 per share, compared to a net loss of $13.6 million, or $0.13 per share, in Q4 and a net loss of $7.8 million, or $0.07 per share in Q1 of 2003.

  • Revenues of the Optical Networks Division were $52 million in Q1 of 2004 compared to $49 million in Q4 and $42 million in Q1 of last year.


  • The Broadband Access Division's revenues increased sequentially to $48 million, from $47 million in Q4 and as compared to $51 million in Q1 of 2003.


  • ECtel (58% owned by ECI), reported revenues of $3.3 million in Q1, compared to $5.6 million in Q4 and $10.0 million in Q1 of last year.


  • ECI's sales to Veraz Networks (of which ECI holds a 43% share) totaled $7 million in Q1, as compared with $6.4 million recorded in Q4 of 2003 and $9 million in Q1 of 2003.


"We see a clear pickup in our business. We expect continued revenue growth throughout 2004," said Doron Inbar, ECI Telecom's President and CEO. http://www.ecitele.com

Motorola Ships its 200,000th Residential Gateway

Motorola announced the shipment of its 200,000th whole-home Residential Gateway solution into the Telco TV market. The whole-home Residential Gateway performs as the delivery point for advanced services into the home and sets the stage for a user experience that supports multi-stream Digital TV, VOD, Pay-Per-View (PPV), and on-screen telephony features such as Caller ID and Message Waiting. The Residential Gateway also provides plug-and-play connectivity for VoIP and in-home wired and wireless networking solutions. http://www.motorola.com

USDA Announces $190 Million In Loans for Rural Broadband

The U.S. Department of Agriculture (USDA) announced the approval of 20 rural broadband and telecommunication loans totaling $190 million to expand access to advanced technology in 19 states. The rural broadband access program provides loans and loan guarantees for the construction, improvement, and acquisition of facilities and equipment for broadband service in eligible rural communities. Priority is given to applications that are proposing to serve areas where no residential broadband service currently exists.



Most of the funds for the program were authorized through the 2002 Farm Bill. To date, over $206 million in broadband loans have been approved in this program. http://www.usda.gov

Vivato Extends 802.11G with New Indoor Base Station

Vivato introduced an 802.11g Indoor Wi-Fi base station that employs the company's smart antenna technology to extend signals up to 12 times farther than industrial-grade access points. The unit is mountable in a corner or on a wall, making it perfectly suited for large-scale indoor deployments at warehouses, shopping malls, airport and train terminals, university auditoriums and libraries and sports venues, hotels and resorts. http://www.vivato.net

Hanoi Telecom Interconnects to T-Systems' VoIP Network

Hanoi Telecom, a newly licensed carrier in Vietnam, has interconnected with T-Systems' global VoIP network using equipment from VocalTec Communications. The turnkey interconnection service provided T-Systmens' "Jules" platform enables Hanoi Telecom to route its international voice traffic over T-Systems' global VoIP network.



In the initial phase of this deployment, T-Systems set up PoPs for Hanoi Telecom in nine key cities in Vietnam, with VocalTec's carrier-grade packet tandem equipment installed at each PoP in the new network for international long distance traffic. In addition, the turnkey installation includes training and support on a 'managed and transfer' basis. There are plans to extend the network into ten additional provinces in subsequent phases. Financial terms were not disclosed.www.t-systems.com/icsshttp://www.vocaltec.com

Tuesday, May 4, 2004

Charter Selects Cedar Point for VoIP

Charter Communications has selected Cedar Point Communications' SAFARI C³ Media Switching System for use in the strategic deployment of VoIP in select markets. The initial rollout will be in Charter's Northeast Operating Division. Financial terms were not disclosed. http://www.charter.comhttp://www.nortelnetworks.com
  • In April 2004, Cedar Point secured $20 million in additional funding for its integrated packet-based voice and multimedia switching platform for cable operators. Cedar Point's SAFARI C(Cubed) is a carrier class switch that incorporates all of the components in a PacketCable voice switching infrastructure. The new funding was led by JP Morgan Partners and included earlier investors Ascent Venture Partners, Battery Ventures, Charles River Ventures, Comcast Interactive Capital and STAR Ventures.


  • In February 2004, Cedar Point Communications and Motorola Broadband Communications Sector announced a strategic collaboration agreement to advance the deployment of packet-based cable telephony services. Specifically, Motorola will support the combined end-to-end voice- over-cable solution that includes Cedar Point's SAFARI C(3) integrated switching system, the Motorola Broadband Services Router (BSR) 64000 CMTS, Motorola SURFboard multi-terminal adapters (MTA), and the Motorola Advanced Provisioning System (MAPS). The companies have completed interoperability testing of the solution and will collaborate in marketing, sales and support.


  • Also this week, Nortel Networks announced that its cable VoIP solution had been selected for Charter's Midwest and Great Lakes operating divisions. The selection includes Succession Communication Server (CS) 2000-Compact softswitches. Charter also intends to deploy Nortel Networks' Multimedia Communication Server (MCS) 5200 in a 2004 market trial, giving both residential and business customers access to multimedia services independent of location.

Cisco Adds Wireless Capabilities to Catalyst 6500

Cisco Systems introduced Wireless LAN Services Module (WLSM) for its Catalyst 6500 Series switches. The new module enables enterprises to use their existing Catalyst wireline infrastructure without having to build a completely separate overlay wireless LAN network.



A single Catalyst 6500 Series WLSM deployed anywhere in the network supports up to 300 Cisco Aironet Series Access Points (AP) and up to 6,000 users. Cisco said its new Catalyst 6500 Series WLSM also delivers the industry's fastest, highly secure user roam times. Additionally, the Catalyst 6500 Series switch capabilities are transparently available to wireless LANs either natively through the Supervisor Engine 720 or through the addition of other service modules such as the Firewall Services Module, Intrusion Detection Services Module and VPN Services Module. The Catalyst 6500 Series WLSM has a U.S. list price of $18,000 for the base module which includes a license for support of up to 150 APs.



Cisco is also introducing a new version of its centralized Wireless LAN management system that detects and compensates for out-of-service APs as well as maintaining security policies by suppressing rogue APs through switch port shut-down. The system also automatically protects the radio frequency (RF) environment from unauthorized access with an intrusion detection system (IDS). The Auto RF Optimization capability also automatically adjusts AP radio transmit power and channel selection for optimal RF coverage. Other new features include warm standby redundancy and real-time client tracking and reporting. http://www.cisco.com

Fujitsu Debuts New SONET-based Ethernet Service Platform

Fujitsu Network Communications announced commercial availability of a new version of FLASHWAVE platform that simultaneously delivers Ethernet and DS1 services while extending the reliability of SONET directly to customer premises.



The FLASHWAVE 4020 ESP is available in an OC-3 or OC-12 version to fit into existing networks and accommodate a variety of subscriber bandwidth needs. The device can be configured for 1+1 protected, Unidirectional Path Switched Ring (UPSR) or unprotected network applications through a dual optical network interface.



Both the OC-3 and OC-12 versions of the FLASHWAVE 4020 ESP offer seven DS1 interfaces, plus four 10/100Base-T Ethernet ports, allowing service providers to provision advanced Ethernet over SONET (EoS) services. Additionally, the FLASHWAVE 4020 ESP supports Generic Framing Procedure (GFP), Link Capacity Adjustment Scheme (LCAS), and both high- and low-order Virtual Concatenation (VCAT), which enables service providers to transport Ethernet across existing SONET networks efficiently.



The FLASHWAVE 4020 ESP also provides sub-50 ms SONET protection switching, NEBS Level 3 compliance, extensive Operation, Administration, Maintenance and Provisioning (OAM&P) features, full Performance Monitoring (PM) support, and loopback capabilities for SONET, DS1 and Ethernet allow complete operational flexibility. It can be managed and provisioned using Telcordia TIRKS, NMA and Transport systems, as well as by the Fujitsu NETSMART 500 craft user interface and NETSMART 1500 Element Management System (EMS). An integrated Simple Network Management Protocol (SNMP) agent is also provided.



Separately, Fujitsu announced that Colorado-based Rye Telephone Company (RTC) is the first customer to purchase the new FLASHWAVE 4020 Ethernet Service Platform (ESP). RTC will deploy the FLASHWAVE 4020 ESP at remote edge locations and use an OC-12 Unidirectional Path Switched Ring (UPSR) to connect to central offices. Voice services and advanced broadband applications will be provisioned through the ESP's seven DS1 and four Ethernet interfaces respectively. The company plans to deploy additional FLASHWAVE 4020 ESPs over the next two years, using their existing FLASHWAVE 4100 and FLASHWAVE 4300 platforms as mini-Digital Cross-connect Systems (DCSs) to groom traffic between remote nodes. http://www.fnc.fujitsu.com

Terayon and Juniper Announce Cable Alliance

Terayon Communication Systems and Juniper Networks announced an alliance to deliver advanced cable broadband solutions. The alliance matches Terayon's DOCSIS-2.0-qualified BW 3500 CMTS (cable modem termination system) with Juniper Networks' high-performance IP edge routing platforms. The companies said they are developing a joint architecture to ensure seamless interoperability between the edge routing platforms and the CMTS, as well as validating new VPN (Virtual Private Network) services and application-based routing and tunneling capabilities. The architecture is currently in trials with several international cable operators. http://www.juniper.net
  • In August 2003, Juniper Networks announced a strategic partnership with ARRIS targeting solutions for Multi-Service Operators (MSOs). The co-marketing initiative combined Juniper's IP platforms with the ARRIS cable modem termination system (CMTS). As part of this partnering strategy, Juniper Networks also announced its intention to voluntarily discontinue its G-series CMTS product line from its PBC acquisition (below).


  • In November 2001, Juniper Networks agreed to acquire Pacific Broadband Communications, a start-up developing a next generation cable modem termination system (CMTS), for approximately $200 million in stock (Nov 2001 prices).

Siemens Unveils Metro Ethernet for Carriers

At this week's Broadband World Forum in Korea, Siemens Information and Communication Networks (ICN) presented its Ethernet and MPLS-based access and metro network strategy for carriers. The first stage of the Siemens strategy is a partnership with Dasan Networks, an Korean manufacturer of Ethernet-based access products. ICN has acquired 40% of the shares in the network specialist Dasan, subject to approval by the relevant authorities and bodies. Dasan offers broadband access products such as DSLAMs and switches based on Ethernet. Siemens will market Dasan's products worldwide. The close cooperation with Dasan will also give ICN direct access to key accounts in the Asia/Pacific market. Dasan's customers in the region include the Korean carriers Hanaro and Dacom as well as the Japanese service provider usen.



Carrier Ethernet from Siemens will also encompass the second mile, where end user traffic is bundled and passed to the carrier's core network. The company said it would leverage a combination of Ethernet and MPLS.



In addition, Siemens is expanding its commitment in China with the foundation of Siemens Communication Networks Beijing (SNBC). http://www.siemens.com


Sprint Deploys CoManage for Improved OSS Data Integrity

Sprint has deployed CoManage Corporation's TrueSource data integrity management system to enhance the accuracy and efficiency of its Operations Support Systems (OSS) and service management processes. Financial terms were not disclosed.



CoManage's TrueSource combines an advanced discovery engine with a flexible reconciliation engine for continually updating a carrier's OSS databases with accurate information. The solution helps carriers contain operations expenses caused by provisioning failures and rework; reduce unnecessary truck rolls; recapture stranded assets and capacity; and prevent revenue leakage. http://www.comanage.net
  • CoManage has previously announced deployments of its network-driven data integrity management solution by AT&T Wireless, British Telecom, COLT, and Verizon.

FCC Seeks Public Input on Wireless Broadband Access

The FCC has formed a new Wireless Broadband Access Task Force with a mission to review applicable spectrum management policies and regulations. The Task Force is seeking comments from the public regarding wireless broadband policies and deployment. Specifically, input is sought on the following issues:

  • 1. To what extent are both licensed and unlicensed wireless broadband networks providing an alternative facilities-based platform to other broadband services, including cable and DSL? To what extent have wireless broadband service providers increased broadband access and competition in rural and underserved areas? If so, are regulatory changes needed to promote or advance these trends?


  • 2. Does the Commission currently provide sufficient spectrum suitable for wireless broadband networks? Is the relative availability of spectrum for licensed services or unlicensed devices appropriate? If not, how so?


  • 3. Do the services offered using unlicensed devices and those using licensed networks complement each other? If so, how?


  • 4. There are several different regulatory approaches that determine access to the spectrum for wireless broadband service providers. Service providers using networks composed of unlicensed devices do not pay for access to the spectrum, but must not cause interference and must share the spectrum with other operators of unlicensed devices, whereas access to other spectrum is obtained through licensing after successful bidding at auction. In addition, some spectrum has been made available on a first come, first served basis. Has the method for access to spectrum affected the development of wireless technologies and the provisioning of wireless broadband services? If so, how?


  • 5. Wireless broadband offers clear advantages over other broadband alternatives in terms of both portability and mobility. Do the Commission's rules effectively provide for or account for these capabilities? Could these rules be more flexible? If so, how?


  • 6. Are there regulatory incentives that would foster continued investment in and deployment of state-of-the-art technologies? If so, what are they? Are the incentives different for licensed services as compared with services offered using unlicensed devices?


  • 7. What is the extent and nature of the deployment of wireless broadband services (market penetration rates; the geographic distribution of wireless broadband services; the extent of competition in the areas in which wireless broadband is deployed; and whether licensed services, unlicensed devices, or a combination of both licensed service and unlicensed devices are used; and the types of technologies used in the networks deployed)?


  • 8. With the continued development of new technologies and network configurations, including mesh networks and integrated wireless broadband networks and devices that use both licensed and unlicensed spectrum, are there any rules that require review for updating or increased flexibility?


  • 9. What are the applications associated with wireless broadband deployment?


  • 10. What about wireless issues in specific communities, such as rural or urban, large or small, and in varied geographic regions?


  • 11. Are there ways in which federal wireless broadband policies could facilitate better available policy options for states and municipalities? If so, how?


  • 12. What barriers (information, infrastructure) to entry remain for WISP entrepreneurs particularly for unlicensed services? To the extent identified, how can government address these issues?


Comments are due by June 3. The Task Force will issue a report and its recommendations to the FCC in October 2004. http://www.fcc.gov/wbatf/