AT&T and Deutsche Telekom Withdraw FCC Application -- T-Mobile USA Merger in Doubt

AT&T and Deutsche Telekom withdrew their application to the FCC for transfer of licenses required for the proposed acquisition of T-Mobile USA by AT&T. Without FCC approval, the $39 billion acquisition cannot proceed.


In a joint statement issued on Thanksgiving, AT&T and Deutsche Telekom said they are still seeking to complete the deal and that their next step would be to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court for the District of Columbia. A new application to the FCC would be made as "soon as practical."


However, AT&T said is planning to recognize a pretax accounting charge of $4 billion ($3 billion cash and $1 billion book value of spectrum) in the 4th quarter of 2011 to reflect the potential break up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval.
http://www.att.com
http://www.telekom.com

• The U.S. District Court, District of Columbia has set a date of February 13, 2012 to hear the lawsuit brought by the U.S. Department of Justice to block AT&T's proposed acquisition of T-Mobile USA. The Department of Justice lawsuit, which was filed August 31, seeks to block AT&T’s acquisition of T-Mobile on the grounds that the deal would result in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services."

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AT&T and Deutsche Telekom Withdraw FCC Application -- T-Mobile USA Merger in Doubt

AT&T and Deutsche Telekom withdrew their application to the FCC for transfer of licenses required for the proposed acquisition of T-Mobile USA by AT&T. Without FCC approval, the $39 billion acquisition cannot proceed.


In a joint statement issued on Thanksgiving, AT&T and Deutsche Telekom said they are still seeking to complete the deal and that their next step would be to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court for the District of Columbia. A new application to the FCC would be made as "soon as practical."


However, AT&T said is planning to recognize a pretax accounting charge of $4 billion ($3 billion cash and $1 billion book value of spectrum) in the 4th quarter of 2011 to reflect the potential break up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval.
http://www.att.com
http://www.telekom.com

• The U.S. District Court, District of Columbia has set a date of February 13, 2012 to hear the lawsuit brought by the U.S. Department of Justice to block AT&T's proposed acquisition of T-Mobile USA. The Department of Justice lawsuit, which was filed August 31, seeks to block AT&T’s acquisition of T-Mobile on the grounds that the deal would result in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services."

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NSN's Restructuring Sees 17,000 Job Cuts, Renewed Focus on Liquid Net

Nokia Siemens Networks announced a major restructuring that will include the elimination of approximately 17,000 jobs worldwide and a renewed focus on mobile broadband. The cuts represent about 23% of NSN's current employees. The company is seeking to reduce its non-IFRS annualized operating expenses and production overheads by EUR 1 billion by the end of 2013, compared to the end of 2011. The savings are expected to come from the streamlined company size, real estate consolidation, cost synergies from the integration of Motorola's wireless assets, information technology, product and service procurement costs, overall general and administrative expenses, and a significant reduction of suppliers.




In a conference call, Rajeev Suri, chief executive officer of Nokia Siemens Networks, said the decision is to focus on mobile broadband rather than attempting to be an end-to-end player in network infrastructure. Optical is considered part of the mobile infrastructure offering, but wireline and other product categories would be considered non-core. NSN will either sell these non-core businesses or "manage them for value."


At this point, NSN is not disclosing where the job cuts will be made, apart from saying that the 17,000 eliminations by the end of 2013 is a global number.


Looking forward, Nokia Siemens Networks plans to leverage its Liquid Net and Liquid Transport strategies as key differentiators. The company will continue to invest and innovate in these areas, as well as to emphasize quality as a key value. Strategic interests include HSPA and LTE, signalling and data traffic management, cloud capabilities for mobile networks, OSS for mobile broadband, subscriber data management, M2M, multivendor network management, and outsourced network services.


"We believe that the future of our industry is in mobile broadband and services – and we aim to be an undisputed leader in these areas," said Rajeev Suri, chief executive officer of Nokia Siemens Networks. "At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market." http://www.nokiasiemensnetworks.com

• Earlier this month, Nokia Siemens Networks reached an agreement to sell its microwave transport business, including its associated operational support systems (OSS) and related support functions, to DragonWave in a transaction potentially worth up to EUR 110 million. The deal provides DragonWave with an existing microwave transport business serving many top carriers worldwide, a more extensive product portfolio, an on-going agreement under which its will become the preferred, strategic supplier to Nokia Siemens Networks of packet microwave and related products, and joint R&D work with NSN. The division has sales several times larger than DragonWave, its client base is much larger, and it has more employees (360), mainly based in Milan, Italy and Shanghai, China.




• In September 2011, Nokia and Siemens agreed to each putting EUR 500 million in new capital into their joint venture, Nokia Siemens Networks, with the aim of further strengthening the company's financial position and setting the stage for strategic flexibility, productivity and innovation in areas such as Mobile Broadband and related services. In addition, Jesper Ovesen, 54, was appointed Executive Chairman of the Board of Nokia Siemens Networks, effective immediately, replacing Olli-Pekka Kallasvuo.




• In April 2011, Nokia Siemens Networks completed its acquisition of the majority of Motorola's wireless network infrastructure assets for US$975 in cash. The deal, which was first announced in July 2010, gave Nokia Siemens Networks incumbent relationships with more than 50 operators and strengthened its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone. Motorola's networks infrastructure business covered GSM, CDMA, WCDMA, WiMAX and LTE. Approximately 7,500 employees were expected to transfer to Nokia Siemens Networks from Motorola's wireless network infrastructure business, including R&D sites in the U.S., Russia, China and India.

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FCC Chairman Opposes AT&T + T-Mobile Deal

FCC Chairman Julius Genachowski signalled his opposition to AT&T's proposed acquisition of T-Mobile USA by informing fellow commissioners that he will seek to block the $39 billion deal. As of Tuesday night, a public statement on the issue had not yet been issued but media reports indicated that Genachowski will refer the issue to an administrative law judge rather than negotiate possible remedies with AT&T to overcome any points of contention.


A decision by the FCC not to approve the transfer of T-Mobile's licenses to AT&T would present a major obstacle to the proposed merger.


Larry Solomon, senior vice president of Corporate Communications, AT&T, issued the following statement:


"The FCC's action today is disappointing. It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both. At this time, we are reviewing all options."


The Communications Workers of America (CWA) issued their own statement:


"The action by the Federal Communications Commission on the AT&T/T-Mobile merger is a job killer at a time of 9 percent unemployment. Our T-Mobile members know that the path to secure jobs is through massive investment in a 4-G LTE network across America. T-Mobile management has clearly stated that the company doesn't have the scale to justify that investment. AT&T has promised to retain 23,000 call center, retail and technical workers who now have no clear employment path. Additionally, AT&T has committed to return 5,000 jobs to the U.S. from Asia and invest $8 billion in new capital and broadband buildout. The FCC's decision relegates the issue of good jobs to the bottom of the government's priorities."http://www.fcc.govhttp://www.att.comThe U.S. District Court, District of Columbia has set a date of February 13, 2012 to hear lawsuit brought by the U.S. Department of Justice to block AT&T's proposed acquisition of T-Mobile USA. The Department of Justice lawsuit, which was filed August 31, seeks to block AT&T’s acquisition of T-Mobile on the grounds that the deal would result in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services." In its conclusion, the DOJ said it was not convinced by AT&T's arguments that the proposed transaction would yield efficiencies benefiting consumers and outweighing adverse impacts on competition. The key finding was that AT&T could achieve the same network power and reach by deploying its own infrastructure rather than by eliminating a competitor.

AT&T and T-Mobile USA filed a 27-page response in U.S. District Court to the Department of Justice's lawsuit that seeks to block their proposed merger. In it, the carriers argue that the DOJ failed to appreciate how the efficiencies of the acquisition would lead to a healthier market for advanced wireless services, that the DOJ failed to understand the competitive dynamics currently at play in this industry, and that the DOJ failed to appreciate how the spectrum shortage they now face will lead to higher prices should their merger not go forward.


AT&T noted that T-Mobile USA has been losing customers, lacks the spectrum to deploy a true 4G network, and its parent company is unwilling to invest the funding needed to make it a viable competitor in the long term. In conclusion, the carriers state the "efficiencies more than outweigh any anticompetitive effect from this merger."

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NetLogic Stockholders Approve Acquisition by Broadcom

NetLogic Microsystems' stockholders approved the deal offer by Broadcom to acquire NetLogic for $50.00 per share in cash. The completion of the merger remains subject to the satisfaction of certain closing conditions, including the receipt of clearance by the Chinese Ministry of Commerce under the Chinese Antimonopoly Law.
http://www.netlogicmicro.com

• In September 2011, Broadcom announced plans to acquire NetLogic Microsystems in a deal valued at $3.7 billion ($50 per share) net of cash assumed.
  
  
  NetLogic Microsystems, which is based in Santa Clara, California, adds a number of critical new product lines and technologies to Broadcom's portfolio, including knowledge-based processors, multi-core embedded processors, and digital front-end processors.
  
  
  The companies expect the deal to close in the first half of 2012. Broadcom currently expects the acquisition to be accretive to earnings per share by approximately $0.10 on a non-GAAP basis in 2012.
  

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FCC Chairman Opposes AT&T + T-Mobile Deal

FCC Chairman Julius Genachowski signalled his opposition to AT&T's proposed acquisition of T-Mobile USA by informing fellow commissioners that he will seek to block the $39 billion deal. As of Tuesday night, a public statement on the issue had not yet been issued but media reports indicated that Genachowski will refer the issue to an administrative law judge rather than negotiate possible remedies with AT&T to overcome any points of contention.


A decision by the FCC not to approve the transfer of T-Mobile's licenses to AT&T would present a major obstacle to the proposed merger.


Larry Solomon, senior vice president of Corporate Communications, AT&T, issued the following statement:


"The FCC's action today is disappointing. It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both. At this time, we are reviewing all options."


The Communications Workers of America (CWA) issued their own statement:


"The action by the Federal Communications Commission on the AT&T/T-Mobile merger is a job killer at a time of 9 percent unemployment. Our T-Mobile members know that the path to secure jobs is through massive investment in a 4-G LTE network across America. T-Mobile management has clearly stated that the company doesn't have the scale to justify that investment. AT&T has promised to retain 23,000 call center, retail and technical workers who now have no clear employment path. Additionally, AT&T has committed to return 5,000 jobs to the U.S. from Asia and invest $8 billion in new capital and broadband buildout. The FCC's decision relegates the issue of good jobs to the bottom of the government's priorities."http://www.fcc.govhttp://www.att.comThe U.S. District Court, District of Columbia has set a date of February 13, 2012 to hear lawsuit brought by the U.S. Department of Justice to block AT&T's proposed acquisition of T-Mobile USA. The Department of Justice lawsuit, which was filed August 31, seeks to block AT&T’s acquisition of T-Mobile on the grounds that the deal would result in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services." In its conclusion, the DOJ said it was not convinced by AT&T's arguments that the proposed transaction would yield efficiencies benefiting consumers and outweighing adverse impacts on competition. The key finding was that AT&T could achieve the same network power and reach by deploying its own infrastructure rather than by eliminating a competitor.

AT&T and T-Mobile USA filed a 27-page response in U.S. District Court to the Department of Justice's lawsuit that seeks to block their proposed merger. In it, the carriers argue that the DOJ failed to appreciate how the efficiencies of the acquisition would lead to a healthier market for advanced wireless services, that the DOJ failed to understand the competitive dynamics currently at play in this industry, and that the DOJ failed to appreciate how the spectrum shortage they now face will lead to higher prices should their merger not go forward.


AT&T noted that T-Mobile USA has been losing customers, lacks the spectrum to deploy a true 4G network, and its parent company is unwilling to invest the funding needed to make it a viable competitor in the long term. In conclusion, the carriers state the "efficiencies more than outweigh any anticompetitive effect from this merger."

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NetLogic Stockholders Approve Acquisition by Broadcom

NetLogic Microsystems' stockholders approved the deal offer by Broadcom to acquire NetLogic for $50.00 per share in cash. The completion of the merger remains subject to the satisfaction of certain closing conditions, including the receipt of clearance by the Chinese Ministry of Commerce under the Chinese Antimonopoly Law.
http://www.netlogicmicro.com

• In September 2011, Broadcom announced plans to acquire NetLogic Microsystems in a deal valued at $3.7 billion ($50 per share) net of cash assumed.
  
  
  NetLogic Microsystems, which is based in Santa Clara, California, adds a number of critical new product lines and technologies to Broadcom's portfolio, including knowledge-based processors, multi-core embedded processors, and digital front-end processors.
  
  
  The companies expect the deal to close in the first half of 2012. Broadcom currently expects the acquisition to be accretive to earnings per share by approximately $0.10 on a non-GAAP basis in 2012.
  

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Infonetics: Cisco Gains Share in IP Edge market

Cisco is gaining traction in the carrier routing and switching markets and taking market share from its competitors, according to Infonetics Research's third quarter 2011 (3Q11) Service Provider Routers and Switches report, which analyzes the IP edge router, IP core router, and carrier Ethernet switch (CES) market segments.


"Of the top five vendors, only Cisco increased its overall carrier router and switch revenue in the third quarter of 2011, up 3% from the previous quarter to $1.43 billion. Since Alcatel-Lucent, Huawei, Juniper and ZTE all saw double-digit percent declines in their carrier router and switch revenue in the same period, Cisco rises back up to over 40% market share for the first time this year," notes Michael Howard, principal analyst for carrier networks at Infonetics Research.


Howard adds: "In the critical IP Edge segment (edge routers and carrier Ethernet switches), which now makes up 79% of the carrier router and switch market, Cisco expanded its lead to 36.2% on the strength of its recently refreshed carrier Ethernet switch portfolio and its ASR 9000. Cisco's share gain is at the expense of its top competitors, particularly Huawei. With Huawei posting the largest sequential drop in IP edge market share in 3Q11, from 17.2% to 12.3%, Cisco's IP edge share now nearly triples Huawei's."


Some highlights:

• The global service provider router and switch market, which includes IP edge routers, IP core routers, and carrier Ethernet switches (CES), is down 7.1% sequentially to $3.5 billion, following a 14.3% increase the previous quarter



• Year-over-year, the carrier router and switch market is up 4.5%



• In 3Q11, the IP edge segment (IP edge routers and CES), is down 6.7% sequentially but up 4.3% from the year-ago third quarter



• Top vendors posting gains in the IP edge segment in 3Q11 over 2Q11: Alaxala, Cisco, Ericsson, NEC, and Nokia Siemens



• Regionally, North America led the downward trend in 3Q11 with the largest decline in carrier router and switch revenue (-15% from 2Q11), despite all the concerns about the Euro zone



• The EMEA and Asia Pacific regions each posted 6% declines, while Central and Latin America (CALA) is the only region that posted an increase, led by Brazil.

http://www.infonetics.com

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Devicescape: 82% Smartphone & Tablet Users Look to Wi-Fi

An overwhelming majority of smartphone and tablet users say Wi-Fi connectivity is very important, according to a new survey from Devicescape, which works with device manufacturers and service providers to enable easy Wi-Fi connectivity. Devicescape has seen its Virtual Wi-Fi Network grow by 74% from last quarter, as the company now counts more than four million hotspots around the world. Mobile operators leverage Devicescape's Virtual Wi-Fi Network to extend their network and allow for data offloading from cellular to Wi-Fi.


The survey queried 1,040 Devicescape users, a cross-section that includes a variety of professionals and students. Some key findings include:

• Almost 82 percent of respondents say that Wi-Fi is very important when it comes to using a smartphone or tablet.



• Wi-Fi takes the lead over cellular networks, with 88 percent of respondents agreeing that rich media such as video runs much faster on Wi-Fi.



• A staggering 82.9 percent of respondents expect their service provider to provide them with a bundled Wi-Fi network service.



• Twenty-six percent of respondents are not aware that many service providers are data capping smartphone plans.
  


• Wi-Fi hotspots are clearly in demand, with 78.7 percent of respondents relying on Wi-Fi hotspots for connectivity needs while roaming.



• Most consumers (58 percent) are indifferent to who provides their Wi-Fi service. But for those who are loyal to their Wi-Fi provider, it is mostly due to the number of access points available. Whether their brand has an international footprint proved to be inconsequential in comparison.

"Wi-Fi has the ability to take our mobile society into the future — benefiting both operators and consumers by its inherent ability to help keep performance issues and high operational costs at bay," said Dave Fraser, CEO of Devicescape. "It's exciting to watch Wi-Fi's growth and popularity reflected in the pervasiveness of our Virtual Wi-Fi Network." http://www.devicescape.com

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Microsoft Acquires VideoSurf for Content Discovery Technology

Microsoft has acquired VideoSurf, a start-up based in San Mateo, California, that scans videos to make it easier for users to search, discover and watch online videos. Financial terms were not disclosed.


VideoSurf developed patent-pending computer vision algorithms and a web crawler bot for searching, indexing and aggregating video content across the web.


Microsoft said it plans to integrate this technology across its entertainment platform to augment the Xbox 360 ecosystem and evolve search and discovery of entertainment content on Xbox LIVE.


"VideoSurf's content analytics technology will enhance the search and discovery of entertainment content across our platform," said Alex Garden, director of Xbox LIVE for the Interactive Entertainment Business at Microsoft. "This holiday we will launch voice search across our entertainment partners on Xbox LIVE. Over time, as we integrate VideoSurf's technology into our system, we are excited about the potential to have content tagged in real time to increase the speed and relevance of the search results." http://www.microsoft.com http://www.videosurf.com

• Microsoft unveiled its Xbox 360 online entertainment service boasting content and support from nearly 40 leading TV partners, including Bravo, Comcast, HBO GO, Verizon FiOS and Syfy in the U.S.; BBC in the U.K., Telefónica in Spain; Rogers On Demand in Canada; Televisa in Mexico; ZDF in Germany; and MediaSet in Italy. Content providers already on the Xbox include AT&T, Netflix and Hulu Plus in the U.S., TELUS in Canada, BSkyB in the U.K., Canal+ in France, Vodafone Portugal, VimpelCom in Russia, and FOXTEL in Australia.



• In April 2011, Videosurf for its video discovery technology. VideoSurf holds a patent for a technology that analyzes all frames within a video to visually identify prominent objects at a speed not previously possible. This analysis occurs 10 times faster than the speed of video playback and enables VideoSurf to know more about the video content. The company said it now has over 20 million unique users per month searching for video content. The new funding came from Pitango Venture Capital.



• VideoSurf's founders include Lior Delgo, Professor Achi Brandt, Dr. Eitan Sharon, and Shai Deljo.

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NeoPhotonics Doubles Production of Tunable Lasers for 40G & 100G Transport

NeoPhotonics is in the process of doubling capacity for production of narrow linewidth tunable lasers.


“Our narrow linewidth tunable lasers are key components for coherent transport in telecommunications systems, which we believe is rapidly emerging as a dominate architecture for 40 and 100 Gbps networks,�? said Tim Jenks, CEO of NeoPhotonics. “We believe there is currently a shortage of these critical products while demand continues to grow. We are in the process of more than doubling our production capacity of narrow linewidth tunable lasers with minimal expected additional capital expenditures. We anticipate our added capacity to be on-line in the first quarter of 2012.�?


NeoPhotonics offers these lasers in an OIF MSA standard ITLA form factor and the products are designed to provide the low noise and narrow linewidths required for 40 and 100 Gbps coherent applications.
http://www.neophotonics.com

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Infonetics: 2011 Carrier Ethernet Market Worth $32 Billion

The global carrier Ethernet equipment market will reach $32.0 billion for 2011, up 15.7% over last year, following a 30.5% hike in 2010, according to a new Carrier Ethernet report from Infonetics Research. The market is now forecast to reach $40.2 billion by 2015.


"The carrier Ethernet equipment market continues to grow strongly, so much so that we've increased our long-term forecast from $37.5 billion to $40.2 billion by 2015. Some market segments are growing faster while others are slowing faster than we originally anticipated. The largest downward changes are in the Ethernet microwave and VDSL equipment segments, and the largest upward change is in the hot carrier Ethernet switch segment," explains Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research.


Some highlights from the report:

• Service provider investment in carrier Ethernet equipment continues to outpace overall telecom capex, which Infonetics expects to be up 6% in 2011



• The carrier Ethernet equipment market is being driven chiefly by the move to packet-based IP next-generation networks and growing consumer, business, and mobile backhaul traffic, particularly video traffic



• The carrier move to packet depends heavily on IP, MPLS, and Ethernet, as operators gradually employ the use of Ethernet transport instead of SONET/SDH



• Mobile backhaul continues to be a particular growth area for carrier Ethernet, with IP/Ethernet equipment expected to make up 95% of all mobile backhaul spending by 2015



• The largest carrier Ethernet investments are in routers, carrier Ethernet switches (CES), and optical gear, which together make up more than two-thirds of the total carrier Ethernet market



• Cisco leads the carrier Ethernet switch market with 45% of global revenue, with no close competitors



• ADVA and Ciena lead the fast-growing global Ethernet access device (EAD) market.

http://www.infonetics.com

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Australia's NBN Co. Hires BT Exec to Serve as COO

Australia's NBN Co named Ralph Steffens as its first Chief Operating Officer. He will have overall responsibility for construction of the National Broadband Network as well as deployment planning, network operations and IT.


Born in Germany, Mr Steffens joins NBN Co from the UK where he was, until recently, Managing Director, Service Delivery, for BT Group plc, where he oversaw the upgrade of Britain's broadband infrastructure. Prior to this, at COLT Telecom, he delivered a 15,000km Pan European telecommunications network across 12 countries.
http://www.nbncom.com

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Telefónica and China Unicom to Use Each Other's POPs

Telefónica and China Unicom reached a strategic agreement to use Points-of-Presence (POPs) on each other's networks. Specifically, Telefónica will be able to use PoPs on China Unicom's network in Hong Kong, Japan, Singapore, Australia, France, and Sweden. China Unicom in turn will be able to enhance their network with PoPs set up on Telefónica's network in Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Panama, Peru, Venezuela, Mexico, USA, Puerto Rico, Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Morocco, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland.


The deal represents a further step forward in the strategic alliance signed by the two companies in 2009http://www.telefonica.com

• In January 2011, China Unicom and Telefónica will deepen their cooperation by investing the equivalent of US$500 million in the other party through the purchase of each party's shares.



• In 2009, China Unicom and Telefonica invested US$1 billion in the other party's shares and entered into a Strategic Alliance Agreement.

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Brocade Reports Upturn for its Ethernet Business

Brocade reports financial results for its fourth fiscal quarter ended October 29, 2011: .revenue of $550 million, representing an increase of over 9% quarter-over-quarter and up slightly year-over-year, and resulting in a diluted loss per share of $(0.01) on a GAAP basis and diluted earnings per share of $0.16 on a non-GAAP basis.


"Brocade achieved outstanding results in Q4 that were led by record revenues for our Ethernet business, fast adoption of our 16 Gbps Fibre Channel products, improvements in profitability, and a record cash flow quarter from operations," said Michael Klayko, CEO of Brocade. "These strong performances demonstrate that we are executing well on our long-term strategy. Looking at FY 12, we plan to leverage this momentum along with our highly differentiated innovation strategy, expanding product portfolio, and our strong routes to market."


During the fourth quarter, Brocade generated strong operating cash flow of $206 million, repurchased 46.5 million shares of common stock, over 9% of the outstanding shares, valued at approximately $200 million, and paid down $50 million on its existing term loan balance.


Revenue for Brocade's Storage business, including products and services, was $361.3 million in the fourth quarter, up 8% sequentially and down 4% year-over-year. The higher sequential revenue for Storage reflected strong demand across all Storage product families including the ramp of its next-generation 16 gigabit-per-second (Gbps) Fibre Channel products which reached approximately $40 million in the quarter.


Revenue for Brocade's Ethernet business, including products and services, was a record $189.2 million in the fourth quarter, an increase of 12% quarter-over-quarter and an increase of 11% year-over-year. The year-over-year growth in Ethernet was driven primarily by Service Provider and Enterprise customers, with revenues from those customers up 18% from the prior year. The Federal Ethernet business was down 14% year-over-year, but up 39% sequentially, as Federal orders improved in the fourth quarter. Revenue for the Ethernet business for the full fiscal year 2011 was a record $670 million, up 11% compared to fiscal 2010, driven by growth in Service Provider and Enterprise customers.
http://www.brocade.com

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CableLabs Opens in San Francisco

CableLabs opened a new office in San Francisco. The new office will serve as a base of operations for specific engagements aligned with the intersection of IP communications and broadband application technologies.


Comcast Senior Vice President of Engineering John Carney, who is working on behalf of CableLabs through 2012, is assisting in the establishment of the office and is leading programs related to the new facility. Working closely with Carney is CableLabs' Senior Vice President of Technology Development Jean-François Mulé, who will lead the San Francisco office's technical staff in support of these and other CableLabs programs. CableLabs expects to add software engineers and technology specialists to this office through the remainder of the year and into 2012. http://www.cablelabs.com

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Sprint Wholesale Offers 4G Fixed Business Access

Sprint Wholesale Solutions announced the availability of 4G Fixed Business Access, a business grade solution that MVNOs can offer to SMB customers. Sprint 4G averages download speeds between 3-6 Mbps, with bursts of over 10 Mbps and is available to 120 million people in 71 markets across the United States.


“We are the first national wireless carrier in the U.S. to offer this solution to our wholesale customers, allowing them to embolden their customer base of SMB and home offices with data access at 4G speeds.�?
Small branch or remote offices can enjoy the power and security of a business-class router and convenience of a wireless connection to the Internet, without on-site IT management. Sprint Wholesale MVNO customers can deliver corporate security policies, failover technology and 3G/4G access for virtually anytime Internet connectivity to small, remote and temporary offices at a fraction of the cost of most current solutions.http://sprint.com/wholesale

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Mobile Applications to get a Rating System

On Tuesday, CTIA-The Wireless Association will announce a mobile application rating system with the Entertainment Software Rating Board (ESRB). http://www.ctia.org

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