FCC Adopts Satellite Spectrum Sharing Plan

The FCC adopted a spectrum sharing plan for low earth orbit satellite systems (Big LEOs) in the 1.6 GHz and 2.4 GHz bands. Key points include:

• In the 1.6 GHz or "L-band," mobile-satellite service (MSS) operators with satellite systems that utilize code division multiple access (CDMA) and time division multiple access (TDMA) technologies will share 3.1 megahertz of spectrum at 1618.25--1621.35 MHz. Previously, only CDMA MSS operators had access to this spectrum. The plan adopted today encourages CDMA and TDMA MSS operators to coordinate spectrum use amongst themselves.



• In the 2.4 GHz or "S-band," the Commission allocated the 2495-2500 MHz band to fixed and mobile except aeronautical mobile services, in order to provide additional spectrum to the 2500-2650 MHz band to accommodate the relocation of MDS channels 1 and 2.

http://www.fcc.gov

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FCC Issues New Rules for Broadband Radio Service

The FCC adopted more flexible rules governing the Multipoint Distribution Service (MDS) and Instructional Television Fixed Service (ITFS) in the 2495-2690 MHz band. The new rules:

• create a new band plan for 2495-2690 MHz, which eliminates the use of interleaved channels by MDS and ITFS licensees and creates distinct band segments for high power operations, such as one-way video transmission, and low power operations, such as two-way fixed and mobile broadband applications. By grouping high and low power users into separate portions of the band, the new band plan reduces the likelihood of interference caused by incompatible uses and creates incentives for the development of low-power, cellularized broadband operations, which were inhibited by the prior band plan.



• rename the MDS service the Broadband Radio Service (BRS), while maintaining the ITFS label for ITFS licenses and operations.



• expand the original MDS-ITFS band by adding to it five megahertz of additional spectrum from below 2500 MHz, which increases the total size of the band to 194 megahertz. This will provide room for the future relocation of MDS Channels 1 and 2, which are presently located in the 2.1 GHz band.



• allow for spectrum leasing under the FCC's secondary market rules, but grandfather all existing leasing arrangements between MDS and ITFS licensees.



• BRS and ITFS providers will have a three-year period during which they may propose transition plans for relocating existing facilities of all other licensees within the same Major Economic Area (MEA) to new spectrum assignments in the revised band plan.

FCC Chairman Michael K. Powell said: "The magnitude of today's ruling is apparent when one considers that this band is double the spectrum that sparked the WiFi explosion at 2.4 GHz and equivalent to the entire spectrum devoted to terrestrial mobile, wireless services. Until now, 2.5 GHz has failed to emulate the successes experienced by these other bands."http://www.fcc.gov

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Aurora Networks Introduces 100GHz DWDM

Aurora Networks, a start-up based in Santa Clara, introduced a new 100GHz DWDM optical networking platform for cable operators. The Aurora 100GHz DWDM optical networking platform, which supports up to 40 wavelengths, is comprised of several products that mount in the Aurora universal chassis, as well as modules for Aurora's nodes. Aurora's universal chassis reduces optical interconnect cabling through the use of integrated multiplexing capabilities. http://www.aurora.com

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Covaro Networks Introduces Two "Etherjack" Products

Covaro Networks, a start-up based in Richardson, Texas, introduced two products to help carriers deliver Ethernet services over fiber, copper or leased DS1s/DS3s. These services include 10/100/1000BT Ethernet, GbE, 100FX, Ethernet Metallic eXtensions (EMX), DS1, DS3 and OC-3/12 (STM-1/4). Covaro's "Etherjack" technology allows carriers (or enterprises) to transport and manage Ethernet services using traditional management methods for T1/T3 services. The system provides an Ethernet demarcation point, which allows in-service performance monitoring, and out-of service fault isolation and diagnosis for Ethernet services.



Covaro's new products include the CC-16000, which can reach customers from central office locations, co-located equipment spaces, outside cabinets and basement-located equipment in multi-tenant offices. For the customer premise, Covaro's CC-101 uses available copper facilities and bonding technology to deliver intelligent Ethernet services up to 18,000ft. - much farther than the 328ft. capabilities of 10/100BT interfaces. In addition to providing a solution for copper riser and outside plant applications, the CC-101 provides the demarcation point between a carrier and its customer.



Covaro said its products are in trials with 10 customers throughout North America. http://www.covaro.comIn February 2004, Covaro Networks raised $25.3 million in Series B funding for its Ethernet services management system. Covaro develops products that address hybrid networks containing both Ethernet and traditional T1/T3 based services. Covaro's unique Etherjack functionality allows carriers (or enterprises) to transport and manage Ethernet services using traditional management methods to reduce turn-up, test and maintenance costs. The new funding round was lead by Centennial Ventures -- a new Covaro investor with offices in Denver, Colo., and Austin and Houston, Texas. Participation also came from existing investors CenterPoint Ventures, InterWest Partners and Sevin Rosen Funds. This comes in addition to first-round funding that netted the company $16.7 million.

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Siemens Invests in Xingtone for Ringtones

Xingtone, a start-up based in Los Angeles and Amsterdam, announced secured a first round of institutional financing led by Siemens Mobile Acceleration. Xingtone has developed a software application that bridges personal computers and mobile phones, enabling MP3 and CD libraries on a PC to be used to create custom ringtone. Users can also upload content, such as images and games, to their own wireless handsets. Xingtone's software is compatible with all open networks, including Sprint PCS, Cingular, AT&T Wireless, and T-Mobile. Financial terms were not disclosed. http://www.xingtone.com

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FCC's Martin Drops Support for UNE Decision Appeal

FCC Commissioner Kevin J. Martin issued a statement saying that due to the Solicitor General's recent decision, he no longer supports an appeal to the Supreme Court of the recent court ruling that overturned the FCC's UNE-p policy.



Martin (a Republican) had sided with Commissioners Copps and Adelstein (both Democrats) on the 3-to-2 vote that granted state commissions a role in setting UNE rates. http://www.fcc.gov

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Bell Canada Suffers Fiber Sabotage in Eastern Canada

Two fiber optic cables were deliberately cut in Newfoundland & Labrador, which resulted in loss of service for close to 250,000 customers in the province. Both the main network
fiber cable and the backup cable were intentionally severed. This included underground and aboveground cables, indicating deliberate acts of sabotage by individuals who clearly knew
where these cables were located and their importance to Aliant's network. Investigations are underway. http://www.bell.ca

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net.com and Bridgewater Team on DSL TR-059

Bridgewater Systems and net.com announced a combined solution for the selection, provisioning and management of new services by DSL operators. The joint development is an implementation of the DSL Forum specification TR-059 for delivery of a "triple play" of voice, video and data over an existing DSL network. The solution combines net.com's SCREAM service creation platform and Bridgewater Systems' Dynamic Bandwidth Manager.



Net.com's SCREAM, a next generation broadband remote access server (BRAS) with IP edge routing and ATM switching functionality, provides advanced QoS capabilities for IP traffic on ATM access networks. It uses an Open Programming Interface (OPI) to integrate with Bridgewater Systems' Dynamic Bandwidth Manager, an on-demand policy management solution. http://www.net.comhttp://www.bridgewatersystems.com

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Cisco Collaborates with IBM on CRS ASICs

Cisco Systems collaborated with IBM on the design of the 40 Gbps ASICs for its new Carrier Routing System (Cisco CRS-1). The Cisco Silicon Packet Processor (SPP) features 38 million gates, approximately 185 million transistors and 188 high-performance programmable 32-bit RISC processors executing 47 billion instructions per second (BIPS). The 18.3-millimeter (mm) square chip -- along with nine additional ASICs designed by Cisco and built by IBM for the Cisco CRS-1 -- is the result of a strategic multi-year semiconductor technology development effort between the two companies. During the past three years, IBM and Cisco engineers worked closely to develop 10 new custom chips, which are being produced in IBM's state-of-the-art 300mm semiconductor manufacturing facility in East Fishkill, N.Y., and 200mm facility in Burlington, Vt. http://www.ibm.com/chipshttp://www.cisco.com/go/crs

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Allstream Launches Managed Mitel IP Telephony Solution

Allstream announced a managed Enterprise IP Telephony solution in partnership with Mitel Networks. The service combines the Mitel Networks 3300 Integrated Communications Platform with Allstream IP Connectivity and Infrastructure Management services, allowing organizations to collaborate and communicate using converged Web-and-voice-based technologies, including mobile and wireless devices. http://www.allstream.comhttp://www.mitel.com

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Marconi Selected for BT's 21CN Trials

Marconi confirmed that its SoftSwitch and Access Hub will be used in BT's 21CN trials to deliver voice services to up to 3,000 BT customers. The trial is expected to take place from October 2004 through September 2005 and will be used by BT to evaluate ways of transitioning its PSTN infrastructure to a next-generation network architecture.



Marconi's Access Hub has already gone live in BT's network under a three-year frame contract signed in August 2003. It is now providing ADSL services to BT's customers. http://www.marconi.com

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DSL Continues Record Growth -- Now 73.4 Million Lines Worldwide

DSL deployments continued to grow at a record pace worldwide during Q1 2004, adding 9.5 million subscribers in three months for a worldwide total of 73.4 million installed lines.
This marks the biggest quarterly deployment of DSL to date, according to the latest figures from the DSL Forum and analyst firm Point Topic, and the third consecutive quarter to produce a record-breaking subscriber increase. Installations are now occurring at roughly double the pace in 2003.



Three countries represented more than half of the new subscribers:

China added 2.85 million in the quarter and now has almost 14 million subscribers to DSL services - the largest DSL population in the world


• the U.S. added 1.18 million - a growth of 13% - significantly closing the gap on Japan, the second largest DSL country



• France was the fastest growing of the major DSL countries in the quarter adding 1.07 million, a growth rate of 35%.

Some 13 countries now have more than one million broadband DSL subscribers and 16 countries have more than 10% of phone lines delivering DSL services.



South Korea maintains its global lead of DSL market penetration, at 28.3% of all phone lines, and 6.85 million subscribers at the end of March 2004. Taiwan, ranked second in the world by penetration, was just 0.2% away from mass-market classification of 20% in the period.



Over the quarter, no less than six countries: France, Italy, The Netherlands, Norway, Spain and Switzerland, achieved more than 10% of total phone lines providing DSL services - half way to mass-market status (20% penetration to qualify).



The European Union, including the new accession states, is now fast approaching Asia Pacific's global market share. With for 28.18% of global subscribers, the European Union added 3.36 million subscribers in the quarter, an increase that accounted for more than one-third of the total new subscribers worldwide. http://www.dslforum.org

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Government Will Not Appeal Court Decision Overturning UNE Rules

The Office of the Solicitor General has informed the FCC that it has decided not to appeal the D.C. Circuit decision vacating the Commission's local telephone unbundling rules.



Some industry reaction:

• USTA: ""This is bold leadership from the Administration on American jobs, investment and economic growth. The Administration had a clear choice: Continue down a path of extreme government intervention in a competitive marketplace or embrace the free-market principles that make our economy strong. It chose the forward-looking path...As the strategy of 'delay-through-litigation' winds down, we are hopeful that all sides will focus more intently and constructively on a smooth transition to a commercial marketplace." USTA President and CEO Walter B. McCormick, Jr.



• CompTel/ASCENT: "Absent a Supreme Court stay and review of the D.C. Circuit decision, consumers and small businesses will see their phone bills rise and the nation's economy will suffer while a select few giant corporations reap all the windfalls." H. Russell Frisby Jr., CompTel/ASCENT CEO.



• AT&T: "In one stroke, and under intense lobbying pressure from entrenched monopolies, the Bush Administration has reversed its legal position in this case, and reversed the legal and policy position it has maintained since it took office... Failure to appeal this case could do lasting damage to the entire competitive telecom industry - and will lead inevitably to higher prices and fewer choices for Americans." Jim Cicconi, AT&T General Counsel



• Verizon: "We applaud the Bush Administration for making a tough call today, but one that will bring the benefits to consumers of stepped-up investment in advanced telecommunications networks by competing providers. When faced with a choice between reliance on market forces and government mandates, the administration has placed its faith in market forces." Tom Tauke, executive vice president - public affairs and communications for Verizon.



• SBC: "Allowing these unlawful rules to lapse will ensure a bright new era of stability in the highly competitive telecommunications industry that will benefit American consumers. SBC's wholesale services will continue as before without disruption." James D. Ellis, general counsel of SBC Communications.



• Voices for Choices: "One result of today's decision is already clear. Higher phone prices are going to hit like a rock. The Appeals Court ripped away one of the most important consumer protections in federal telecom law. The only reason calling prices dropped in recent years is because competition emerged to the Bell monopolies. Peter Arnold, Voices for Choices spokesman.



• MCI: " If the FCC's rules are allowed to lapse and wholesale rates rise MCI may be forced to raise prices in some markets and pull out of others." Stasia Kelly, MCI Executive Vice President and General Counsel.



• Sprint: "This is bad news for consumers, who will soon see some phone service prices go up. It is also bad news for the telecommunications industry, which will face continued investment uncertainty and an immediate splash of cold water on the local phone competition that was spurred by the Federal Communications Commission's UNE rules."

http://www.fcc.gov

• The Solicitor General, Theodore B. Olson, determines the cases in which Supreme Court review will be sought by the government and the positions the government will take before the Court. He was nominated by President Bush and confirmed by the U.S. Senate in 2001.



• In March 2004, a three-judge panel in the D.C. Circuit Court of Appeals overturned the FCC's Triennial Review Order with regard to network unbundling rules. The FCC rules, which were announced in February 2003 but actually issued in August 2003, empowered state public utility commissions as the decision makers on issues regarding UNE-P unbundling and local competition. The Court of Appeals said the FCC erred by not providing unified, federal guidelines and by pushing many FCC decisions to the states. The court also upheld the Triennial Review Order's exemption provided to incumbent carriers from unbundling for certain fiber-fed loops and for line sharing.

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MCI Launches On-Demand Application Service

MCI introduced a managed On-Demand Application Service that helps businesses distribute software to multiple locations and hundreds or thousands of end-users via MCI's global IP network. MCI said the service helps companies to more easily distribute software releases and patch updates, better control software licenses and track software usage under a pay-as-you-go model. Data is hosted at an MCI data center and centrally streamed over the company's global IP network.



MCI is using technology from Endeavors Technology, a provider of on-demand software tools. http://www.mci.com

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France Telecom Moves to Unlimited Fixed Line and VoIP

France Telecom launched unlimited usage plans (flat rate) for its fixed line and VoIP services.
Beginning this month, France Telecom will offer:

• Unlimited usage call plans starting at EUR 9 per month, including a contact management application, to 3 fixed line or national numbers after 6pm and on weekends. Pricing scales up for the unlimited calling based on the number of destination lines selected and whether the plan is evenings/weekends or 24/7.
  
  
• 24/7 unlimited VoIP for Internet users, priced at EUR 5 per month and then 13 cents per call



• 2 Mbps broadband Internet access, at EUR 39.90 per month and 1,024 Kbps from EUR 29.90 per month



• a domestic multi-service gateway

Beginning in August, France Telecom will offer:

• Unlimited VoIP for its Wanadoo clients priced at EUR 10 per month for the first year and EUR 20 thereafter. The service covers all local and national calls to fixed lines.



• 2 Mbps internet access at EUR 34.90 per month. ADSL will be available to 90% of the French population by end 2004.

http://www.francetelecom.com

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BT Sees Majority of PSTN Services on IP by 2008

BT outlined a five-year timetable for migrating its circuit-based voice services to IP. The mass migration of customers from PSTN to IP will begin in 2006 and, by 2008, BT expects a majority of the transformation will be completed. BT's 21CN initiative aims to migrate the company's existing multiple, service specific networks to a single converged multi-service IP based network. It includes work towards increasing the bandwidth of services provided over the copper access network as well as the trials of FTTP.



Key elements of BT's 21st century network (21CN) initiative include:

• Over the next five years 21CN will transform BT's business and its cost base, removing duplication across the current multiple service specific networks and creating a single multi-service network. The first stage of the migration will involve the bypass of the core PSTN network link between two major network nodes at Cambridge and Woolwich. An extension is planned later to Faraday exchange in London.



• An initial 1,000 customers served by local exchanges connected to Cambridge and Woolwich will trial end to end voice and data services over the core IP network link. From October 2004, BT will divert voice calls between these network nodes to the 21CN specific IP network. Calls will be carried using IP. The switch-over will be seamless from the customer's perspective and service quality will be "the same or better than on the PSTN."



• The next stage of this pilot involves the installation of new equipment at 18 exchanges in South East London, Kent and East Anglia - which are connected to the network nodes in Cambridge and Woolwich. This equipment, known as multi service access nodes (MSANs), will carry voice and data services onto the core IP based network, initially for 1,000 customers by January 2005.
  
  
• Total capital spend on 21CN transformation will be within the previously announced BT capital expenditure envelope of £3 billion per annum. From this year about two thirds of the annual spend is directed to 21CN and other new and intermediate technologies and this proportion is expected to increase.



• BT expects the converged network will deliver cash savings of £1 billion per annum by 2008/9.



• BT is committed to making broadband available from exchanges serving 99.6% of the population by summer 2005.

BT has selected the following companies to support the PSTN to IP pilot:

• Marconi is supplying core network Softswitches and multi-service access nodes (MSANs) for voice services.
  
  
• Alcatel is providing IP Ethernet switching equipment.
  
  
• Siemens is supplying metro media gateways and Juniper core and edge routers.

BT is formally launching the procurement process to select long term suppliers for 21CN, which may not necessarily be those involved in the trials and early implementation stages. Contracts for the main rollout phases will be awarded following a formal competitive tendering process that will be concluded by the end of 2004.



BT is also launching a 21CN FTTP trial that will reach up to 1,500 homes and businesses at Martlesham Heath, Suffolk; at Kents Hill, the Bolbeck Park and Walnut Tree developments in Milton Keynes; and at the Waterfront Studios business centre, at Silvertown in London's Docklands. BT is looking at FTTP especially for new build and greenfield site developments. The trial will begin in October 2004 and run through September 2005.



ECI is supporting the FTTP trials by supplying optical network units for use at customer premises and optical line termination equipment at the exchange. http://www.btplc.com

• In May, BT announced "Project Bluephone" -which targets handset convergence. Project Bluephone would remove the need to own more than one phone, as customers would be able to use a single device that can switch seamlessly between networks, giving more convenience, a better service with more guaranteed coverage and lower overall costs. Whenever customers are within reach of a BT wireless access point in their home or office, they will be able to connect at the best available speed and quality, through the BT network. If they move out of coverage range, they will seamlessly link to a partner's cellular GSM or 3G network for voice and data, giving them the best available connection wherever they are. Project Bluephone has undergone successful trials with 50 users over the past two months. A 'soft launch' involving more than 1,000 users is planned for this summer, with a full launch later this year. Alcatel has been selected as prime contractor for Bluephone. It is working with Ericsson, Motorola, Norwood Systems, IVT, Inventel and MBT on the project.



• In April 2004, BT awarded a EUR 30 million contract Alcatel for an service delivery platform that enables advanced IP services and supports existing Number Translation and Network based Call Centre services. The contract, which is part of BT's 21st Century Network (21CN) strategy, covers the Alcatel 8690 Open Services Platform (OSP). Alcatel is working with Sun Microsystems and Ulticom to supply the IT platforms and signaling software, respectively.

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Voiceglo Chooses CIENA/Laurel to Support VoIP

Voiceglo has deployed a joint CIENA/Laurel multiservice edge solution to support its GloPhone VoIP service. CIENA DN 7100 multiservice edge switches and Laurel ST200) service edge routers provide the voice switching, Internet routing and peering, QoS, subscriber management and interface flexibility for the network. http://www.ciena.comhttp://www.voiceglo.com

• voiceglo, a provider of consumer and business VoIP services, is based in Fort Lauderdale, Florida. voiceglo provides free SIP-to-SIP calling to other voiceglo members and charges for calls off the network.



• voiceglo was founded by Michael Egan and Edward Cespedes. Egan is the Founder and former CEO of Alamo Rent A Car, which he directed to become one of the nation's largest car rental firms before selling it to Republic Industries. Cespedes is a former investment banker with JP Morgan and also serves as President of theglobe.com and voiceglo.



• voiceglo is also using Acme Packet's Net-Net session border controllers for both hosted IP service delivery and peering to IP-based PSTN termination networks.

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Cingular Announces $100 Million Expansion in Texas

Cingular Wireless announced a $100 million network expansion program in south Texas. The campaign will add more than 80 new cell sites in 2004, almost doubling the number of sites added last year. Cingular's plan for South Texas is part of the company's national focus to invest $3 billion during 2004 -- adding more cell sites, circuits and switches -- for an enhanced wireless experience.



Cingular invested more than $200 million last year implementing GSM/GPRS and improving coverage and capacity throughout the region. http://www.cingular.com

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Siemens Confirms Softswitch Deployment by BellSouth

BellSouth has signed an agreement to deploy the IP-based Siemens SURPASS Business Connection next-generation network solution. The deployment will support BellSouth's recently announced business VoIP services. Financial terms were not disclosed.



The SURPASS Business Connection solution is part of Siemens SURPASS portfolio of next-generation, standards-based IP solutions for carriers and service providers. Elements of the portfolio include the SURPASS hiQ softswitch and the SURPASS hiG media gateway. http://www.siemens.com

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Virtela Manages DSL Connections in 100 Countries

Virtela Communications, a global network solutions company based in Denver, is now able to provide managed global DSL connectivity to its private network from 100 countries. Virtela has doubled the number of access provider relationships since its launch of Global DSL services last year. Through its partners, Virtela now can provide managed DSL access from Indonesia, the Philippines, Saudi Arabia, South Africa, Taiwan and Thailand, among others.



Virtela also announced that Pitney Bowes, a global provider of integrated mail and document management solutions, is using its managed network services, including global DSL, to connect branch offices throughout the Asia Pacific region.htttp://www.virtela.net

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