Dell'Oro: Wireless Packet Core Market Grew 33% in Q2

Wireless packet core (WPC) market revenues grew 33% over the last year during the second quarter of 2011, according to a new report from Dell'Oro Group. Ericsson maintained its market share lead in revenues, followed by Huawei.


The report shows that 2Q11 revenues reached over $630 million. Equipment types that are included in the WPC market include Gateway GPRS Support Node (GGSN), Serving GPRS Support Node (SGSN), Packet Data Serving Node (PDSN) and Access Service Network (ASN) devices.


"Surging smartphone and tablet adoption is driving service providers to add wireless data subscriber management equipment," said Chris DePuy, Analyst at Dell'Oro Group. "While demand remains robust, we expect a handful of new vendors to challenge incumbent equipment providers as the market begins its transition to the next generation of equipment called Evolved Packet Core. At least four new packet core devices are in trials with service providers, with launch dates expected in the next several quarters. We expect to see some interesting shifts in the market's landscape when these new products ramp."


Equipment types that fall under the Evolved Packet Core (EPC) category include Mobility Management Entity (MME), Packet Data Node Gateway (PGW), Serving Gateway (SGW) and Policy and Charging Rules Function (PCRF).
http://www.delloro.com

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Apple Wins EU Injunction Against Sales of Samsung Galaxy Smartphones

A court in the Netherlands issued a injunction prohibiting the sale of Samsung Galaxy Smartphones in the EU beginning October 3. The preliminary ruling concerns three patent infringement claims brought by Apple. The merits of the case have not yet been decided.
http://www.apple.com
http://www.samsung.com

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Ericsson Acquires Telenor Connexion's M2M Platform

Ericsson has acquired Telenor Connexion's M2M (machine-to-machine) technology platform. The deal includes the transfer of ten employees who will continue to work with development of the service offering provided on Ericsson's Device Connection Platform. Telenor Connexion also becomes the first customer to Ericsson on the platform. No financial details about acquiring the assets have been announced.



Ericsson's M2M service, the Device Connection Platform, a service launched during the Mobile World Congress in February, offers telecom operators a way to set up tailored M2M services for enterprise customers and is brought to market with a 'software as a service' business model, providing a low initial investment in technology and a fast time to market. http://www.ericsson.com

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China Unicom Sees Growth in 3G and Broadband Bundled Services

China Unicom experienced continued growth in 3G subscriptions and in fixed broadband access during the first half of 2011 as the number of fixed line and PHS customers continued to decline, leading the company to report revenue of RMB 101.385 b billion, up by 22% over the same period last year. Profits came in at RMB 2.637 billion, down by 5.5% compared with the same period last year.


In the first half of the year, operating cash flow was RMB 34.352 billion, an increase of 10.5% over last year, and capital expenditure (CAPEX) was RMB 25.968 billion, a decline of 22.1% compared to last year.


Some highlights from the company's financial report:

Mobile (as of 30-June-2011)


the total number of subscribers reached 181.61 million, up 15.7% over last year.


3G penetration was 13.2% of the customer base


Overall ARPU reached RMB 46.8, up 9.3% over last year.


3G ARPU was RMB 117.5, a decrease of 11.7% compared to last year.


3G service revenue now accounts for 26.9% of total mobile revenue.


The total number of 3G basestations was 203,000, up 32.8% over last year.


The HSPA+ network cover 56 cities. It has a top downlink rate of 21 Mbps.


The total number of GSM basestations is 348,000, up 13.7% over last year.


The total 3G voice usage for the first half of the year was 66.21 billion minutes.


The total GSM voice usage for the first half of the year was 242.48 billion, up 5.5% over last year.


The number of mobile TV subscribers, mobile reading subscribers and mobile mailbox subscribers was 8.511 million, 7.925 million and 17.528 million, respectively.


Fixed Line


Added 5.098 million broadband subscribers in the first half, yielding a total of 52.322 million current subscribers, up 19.6% compared to last year.


Subscribers with 4 Mbps and above accounted for 35% of all broadband subscribers.


The number of broadband content and application subscribers reached 19.396 million, accounting for 37% of all broadband subscribers.


Service revenue for fixed broadband was RMB 17.172 billion, up 18.7% compared to last year.


Monthly ARPU for broadband was RMB 57.6, down 1.5% from last year.


The number of "WO Family" subscribers increased by 3.309 million to 3.697 million.


The loss of traditional local telephone subscribers was 1.177 million, leaving the company with 95.458 million.


The local telephone business generated RMB 17.663 billion in revenue, down 15% compared to last year.
http://www.chinaunicom.com.hk

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Altera Ships Fastest FPGAs with 28 Gbps Transceivers

Altera has begun sampling the first FPGA featuring 28-Gbps transceivers. The Stratix V GT devices, which are the highest bandwidth and highest performance FPGAs released to date, are optimized specifically for use in the latest generation of 40G/100G applications and beyond. The devices support backplane, optical module and chip-to-chip applications through four 28-Gbps transceivers, 32 full-duplex, 12.5-Gbps transceivers, and up to 4x72-bit DIMM DDR3 memory interfaces supporting 2133 Mbps.


The 28-Gbps transceivers featured in Stratix V GT FPGAs meet the CEI-28G specification while consuming only 200 mW per channel, dramatically reducing a system's power-per-bandwidth profile.


"By leveraging a tailored 28-nm technology approach that includes the highest performance process and most advanced transceiver technology, we enable customers like JDSU to deliver the breakthrough bandwidth they need to bring the most cutting-edge systems to market quickly and with greater confidence," said Patrick Dorsey, senior director of product marketing at Altera. http://www.altera.com http://www.altera.com/stratix5

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Optical Internetworking Forum Launches Next Gen Interconnect Project

The Optical Internetworking Forum (OIF) members initiated a Next Generation Interconnect Framework project which explores various applications spaces for high speed optical and/or electrical interconnect and identifies the necessary elements for follow on implementation agreements (IA). Next gen interconnects are needed for very short reaches within the blade, longer reaches between blades (backplanes) and chassis-to-chassis. Implementations agreements interoperability between components from different vendors as well as significant investment across the ecosystem.


The OIF also started a new 100G project to address next generation integrated coherent receiver targeting lower cost, higher density applications. The Generation 2.0 Intradyne Coherence Receiver (Gen-2 ICR), will define a smaller 100G coherent receiver to satisfy the industry needs for size and cost reduction necessary to support the evolving 100G coherent DSP-based module standards. The project follows the OIF's Gen-1 ICR IA (OIF-DPC-RX-01.0 IA) that successfully enabled long haul applications using line card and large form factor transponder (e.g., MSA-100GLH) implementations.


In addition, the OIF has launched a third project addressing multi-link gearbox (MLG) for 100G client side signaling. The Multi-Link Gearbox (MLG), will enable a variety of applications where a group of 10GBASE-R virtual links are transported by a 4x25G physical link. It will define a 10:4 Mux MLG function to convert multiple (up to 10) independent 10Gb/s links into 4x25G lanes, and a 4:10 DeMux MLG function to convert the 4x25G lanes back to multiple (up to 10) independent 10Gb/s links. In addition, the MLG Project will define in-band coding that preserves 10GBASE-R physical lane-to-lane ordering and in-lane bit ordering to support synchronous and asynchronous 10G lanes. http://www.oiforum.com

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COMPTEL Lobbies for Amendment to ILECs' Intercarrier Compensation Plan

COMPTEL, which is an industry association representing competitive communications service providers and their supplier partners, filed comments with the FCC regarding universal service and intercarrier compensation (ICC) reform. Specifically, COMPTEL is proposing a Competitive Amendment to the ILECs' ABC Plan released in July. The amendment seeks to:

• Remove Uncertainty Regarding IP-to-IP Interconnection – Since the circuit-switched architecture of today's PSTN will ultimately be replaced with an IP architecture, it is vital that nondiscriminatory, cost-based IP interconnection agreements must replace the circuit-switched interconnection agreements that underlie today's PSTN so that the transition to an IP-based PSTN will be seamless. Modifications to the intercarrier compensation regime to facilitate an IP environment should also make clear that the basic legal framework for seamless interconnection – i.e., the competitive protections of Sections 251/252 – applies in a technology neutral manner. Addressing compensation without enforcing the appropriate legal framework will do nothing to promote a ubiquitous competitive broadband environment.



• Ensure Cost-Based Rates for All Transport as well as Termination – The COMPTEL Competitive Amendment would ensure reforms comply with the statutory mandate that all transport and termination rates for traffic under section 251(b)(5) be cost-based. Irrespective of their previous labels as interstate access, intrastate access, local, VoIP or any other categorization, all calls should be considered under the provisions of Section 255(b)(5) and the associated pricing regulations under 252(d)(2) should be applied with equal force to all transport and termination.

"The ILECs' proposal [also known as the ABC Plan] does nothing to promote deployment of next-generation IP networks because it further entrenches the greatest obstacle to such deployment: The refusal by most ILECs to negotiate interconnection agreements that comply with the critical competitive protections of Section 251 and 252 of the Act," COMPTEL's comments noted. "The ABC plan is designed to perpetuate and protect ILEC revenues, while dramatically reducing competitors' revenues and denying competitors access to cost-based transport as required by law. In contrast, the Competitive Amendment provides a framework that addresses the needs of the industry as a whole." http://www.comptel.com

• A coalition of six of the leading carriers in the U.S., submitted a proposal to the FCC for reforming the Universal Service Fund (USF) and the Intercarrier Compensation (ICC) system. Members of the group include AT&T, CenturyLink, FairPoint, Frontier, Verizon and Windstream -- which collectively serve the vast majority of U.S. wireline customers, including those residing in high-cost rural areas, which are the primary focus of USF support.


The big telcos said the key aim of their proposal is to speed broadband deployment to more than 4 million Americans living in rural areas. They also announced an agreement with three organizations that represent small carriers on a framework for complementary reform. Joining the companies in support of reform are the National Telecommunications Cooperative Association, the Organization for the Promotion and Advancement of Small Telecommunications Companies and Western Telecommunications Alliance.

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Vermont's Shoreham Deploys Positron's Aktino

Shoreham Telephone, a telecommunications company in Vermont, has deployed Positron's Aktino AK355 FlexStream platform to enable 45 - 100 Mbps of capacity over copper for Tier 1 wireless carriers. Positron said its solution was selected for its single span rate and reach. The company said it was the only solution provider to meet Shoreham's bandwidth expectations of up to 18 Kft with no repeaters (average 50 Mbps) and was unique in delivering 70 Mbps over a four mile loop with one FlexStream AIR regenerator. http://www.positronaccess.com http://www.shoreham.net

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Metaswitch Appoints CFO

Metaswitch Networks has appointed Thomas L. Cronan III as chief financial officer of the company. Stephen Halstead, currently in the role of chief financial officer, will report to Mr. Cronan.


Cronan previously served as chief financial officer of Aviat Networks. From 2003 to 2007, Mr. Cronan served as the senior vice president of finance and chief financial officer at Redback Networks Inc., where he worked closely with Kevin DeNuccio to create a period of sustained revenue growth and, ultimately, the sale of Redback in 2007 to Ericsson for $2.1 billion. Mr. Cronan has also served as the chief financial officer at Ooma. http://www.metaswitch.com

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Aviat Posts Revenue of $121 Million

Aviat Networks reported Q4FY11 revenue was $120.9 million, compared with $107.6 million in the year-ago quarter, which is at the high end of the company's prior guidance. The company reported a net loss, including discontinued operations, of $19.8 million or $(0.34) per share, compared with a net loss of $88.8 million or $(1.49) per share in the year-ago quarter. Loss from continuing operations was $6.2 million or $(0.11) per share compared with the loss from continuing operations of $80.7 million or $(1.35) per share in the year-ago quarter. The company's WiMAX business is counted as a discontinued operation.


Revenue in the North America segment was $42.2 million in the fourth quarter of fiscal 2011, compared with $38.0 million in the year ago quarter and $42.5 million in the prior quarter. International revenue was $78.7 million, compared with $69.6 million in the year ago quarter and $73.0 million in the prior quarter.


"In FY11 we focused on restructuring the company to achieve profitability and returned to our core competency of microwave transmission. We have created a more competitive cost base, improved operational processes, reinvigorated product development and realigned our company to execute on the next phase of our business strategy. Our customers are enthusiastic about our progress as demonstrated by renewed orders strength in North America and increased business with both new and existing customers in Africa," said Michael Pangia, president and CEO of Aviat Networks. http://www.aviatnetworks.com

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Gulf Bridge to Launch 100 Gbps Undersea Connections

Gulf Bridge International (GBI), the Middle East's first privately-owned submarine cable operator, is planning to launch 100 Gbps connections on some segments its new network. According to regional news sources, GBI is aiming to be among the first undersea systems to go live with wholesale 100 Gbps connections. http://www.gbiinc.com

• In March 2011, Gulf Bridge International (GBI), the Middle East's first privately-owned submarine cable operator, along with its partner, Vodafone Qatar, announced the landing of its new cable at Vodafone's international cable landing station just north of Doha.
  
  
  The GBI cable system is a high-capacity, fiber optic cable that will connect all the countries of the Gulf region to each other and provide onward connectivity to Europe, Africa and Asia. The GBI cable system deploys several state-of-the-art technologies, such as new dual-stage repeaters and wavelength monitoring units. The architecture offers 128 x 10 Gbps wavelengths per fiber pair to achieve a total system design capacity of 2.56 Tbps. It will incorporate Optical Add Drop Multiplexing (OADM) undersea branching units to reduce upgrade costs, and increase reliability and system resiliency with the ability to by-pass a branch.

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Avago Sees Continued Revenue Gains

Avago Technologies reported net quarterly revenue of $603 million, an increase of 8 percent compared with the previous quarter, and up 10 percent from the same quarter last year. Gross margin was $297 million, or 49.3 percent of net revenue. This compares with gross margin of $275 million, or 49.1 percent of net revenue last quarter, and gross margin of $263 million, or 47.8 percent of net revenue in the same quarter last year.


"During the third quarter of fiscal 2011, our four target markets performed as we expected and we outperformed these markets as our revenue growth for the quarter came in at the high end of guidance," said Hock Tan, President and CEO of Avago Technologies Limited. "While uncertainties prevail in the global economy today, we continue to believe revenue will grow for the balance of the fiscal year due to share gains with certain wireless and wired OEMs."http://www.avagotech.com

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WSJ: Sprint to Sell iPhone from October

Sprint will begin selling the iPhone 5 in mid-October, according to The Wall Street Journal. AT&T and Verizon Wireless are expected to get the device in the same time frame. None of the companies commented directly on the report. http://www.wsj.com

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Motorola Spins Out Orthogon and Canopy Businesses as Cambium Networks

Motorola Solutions announced a deal to sell its Point-to-Point (PTP or Orthogon) and Point-to-Multipoint (PMP or Canopy) Wireless Broadband Networks businesses to Vector Capital, a leading global private equity firm. Financial terms were not disclosed.


The Motorola PTP and PMP businesses will operate as an independent company under a new name -- Cambium Networks.

The new Cambium Networks will continue to supply unlicensed and licensed solutions that address key industry verticals. Motorola Solutions plans to continue to purchase products from Cambium Networks to meet the broadband needs of its key direct public safety and federal accounts.


"We are pleased to have reached this agreement, which will further streamline the Motorola Solutions portfolio and position PTP and PMP for even greater success," said Greg Brown, chairman and CEO, Motorola Solutions. "Vector Capital has a strong track record in growing technology businesses, and we believe its continued targeted investment and oversight will best position these industry-leading brands to serve their distinct customer bases." http://www.motorolasolutions.com http://www.vectorcapital.com/

• In April 2011, Motorola Solutions completed the sale of its Networks business to Nokia Siemens Networks for approximately $975 million in cash. The deal included Motorola Solutions' GSM, CDMA, WCDMA, WiMAX and LTE products and services. As part of the deal, responsibility for supporting 50 operators across 52 countries, as well as approximately 6900 employees, will transfer to Nokia Siemens Networks. In addition, Nokia Siemens Networks is acquiring a number of research and development facilities including sites in the United States, China, Russia, India and the UK.

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Siklu Brings its Millimeter Wave Radios to North America

Siklu Wireless, a start-up based in Petach Tikva, Israel, announced its entrance into the North American market.


The flagship Siklu EtherHaul E-band radio operates in the licensed 71-76/81-86GHz portion of the spectrum and delivers 1 Gbps capacity. http://www.siklu.com

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Spreadtrum Cites Leadership in TD-SCDMA

Having secured design wins for its TD-SCDMA chips with both tier-1 OEM handset manufacturers and independent design houses serving the Chinese market, Spreadtrum Communications announced that it has achieved a leadership position in China's TD-SCDMA market. The company claims to have more than 50% market share of TD-SCDMA shipments in the first half of the year, according to numbers from IHS iSuppli. Spreadtrum expects TD-SCDMA uptake to accelerate in the second half of 2011, bringing the overall market from 34 million units shipped in 2010 to more than 50 million units shipment this year.


"Our advanced 40nm platform enables us to deliver a superior 3G experience on handsets," said Dr. Leo Li, president and CEO of Spreadtrum. "The low power consumption of our TD-SCDMA baseband solutions enables up to 15 hours talk time and 17 days standby time off of 1000mAh batteries."


Spreadtrum further expects that shifts in China Mobile's purchasing strategy will help drive faster growth. As more phone models have become available, China Mobile's purchasing has shifted from central procurement tenders, in which the head office negotiates for certain models and volumes, to purchasing through local distribution channels. http://www.spreadtrum.com

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LightSquared Signs Another LTE Wholesale Customer - InterGlobe

LightSquared announced a multi-year wholesale agreement with InterGlobe Communications, a business integrated service provider primarily serving the New York, New Jersey and Pennsylvania region.


InterGlobe, a Competitive Local Exchange Carrier (CLEC), will become a wholesale customer on LightSquared's 4G-LTE network. InterGlobe will add high-speed mobile data and satellite services to its range of business communications solutions that include VoIP, high-speed Internet, video teleconferencing and IP telephony services offered to its growing number of business clients throughout the Mid-Atlantic region. http://www.LightSquared.com

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Xtera Selected for GOKI Pacific Cable System

AT&T has contracted Xtera Communications and Kokusai Cable Ship Co. to build the GOKI (Guam, Okinawa, Kyushu, Incheon) submarine cable system.


Xtera will provide project management, system design, system integration and the Submarine Line Terminal Equipment (SLTE). Kokusai Cable Ship Co., Ltd. (KCS) will recover and re-lay portions of Transpacific-5 (TPC-5) and a retired regional submarine cable, as well as supply new cable and submerged equipment that will become part of the new solution.


Xtera and KCS will partner to build the 4200 km GOKI system by combining approximately 1,300 km of redeployed cable with remaining sections of the TPC-5 and a retired regional submarine cable. The new system will be fitted with Xtera's Nu-Wave XLR regional repeatered SLTE to maximize capacity. http://www.xtera.com http://www.k-kcs.co.jp/english

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Alaska's Matanuska Telephone Deploys ADTRAN

Matanuska Telephone Association, a leading provider of communications services for south-central Alaska, has selected ADTRAN for its network. The initial deployments were focused on the delivery of voice, high-speed data and IPTV services, followed soon thereafter by FTTP for delivery of high-bandwidth services for schools and residential customers.


"As a service provider in a very competitive market, the ability to add new and advanced services easily can be the difference between growing our business or handing it over to the competition," said Eric Anderson, vice president of engineering and planning, Matanuska Telephone Association. "As with many service providers, our network had several vendors' equipment installed; supporting different applications. ADTRAN is allowing us to transition to a single platform for all access needs, which saves capital as well as operational expenses."
http://www.adtran.com

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China Telecom Sees Faster Growth in Mobiles, Steady Growth in Fixed Broadband

China Telecom reported a surge in 3G subscriptions, continued fast growth in fixed line broadband and a steady loss of traditional access lines. Growth in mobile subscriptions is about 3X the growth in wireline broadband lines. The growth rate in mobile revenue (50%) is even higher than for fixed Internet access (13%)For the first six months of 2011, China Telecom posted operating revenues of RMB 120.1 billion, up by 11.7%.


"In the first half of 2011, we captured the valuable opportunities arising from the accelerated development of social and economic information to deepen strategic transformation, amidst the rapid technological advancement in mobile Internet," stated Wang Xiaochu, China Telecom's chairman. "We proactively implement our strategic positioning as 'a leader of intelligent pipeline, a provider of integrated platforms, and a participant in content and application development', adhering to integrated differentiated operation."


Some highlights:


The total number of mobile subscribers reached 108 million, representing a net addition of 17.85 million from the end of last year, up by 19.7%, of which 3G mobile subscribers was 21.54 million, representing a net increase of 9.25 million from the end of last year, up by 75.3%.


The total number of broadband subscribers reached 70.09 million, representing a net addition of
6.61 million from the end of last year, up by 10.4%.


The total number of access lines in service was 172 million, representing a net decrease of 2.83
million from the end of last year, down by 1.6%.


Mobile service revenue increased by 36.8% over the same period of last year, reaching RMB 31,139 million,
and further rising to 25.9% as a percentage of operating revenue.


In the first half of the year the monthly compound growth rate of 3G handset Internet traffic exceeded 12%.


Revenue from wireline broadband services increased by 13.1% from the same period last year, reaching a total of RMB29,755 million, further rising to 24.8% as a percentage of the operating revenue.


Revenue from wireline voice amounted to RMB26,462 million, accounting for 22.0% of the total revenue.


China Telecom's mobile ARPU is RMB52.2
http://www.chinatelecom-h.com

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