Wednesday, April 30, 2003

Verizon Cites Gains in Enterprise Data Services

Five months after announcing an ambitious plan to expand its high-speed data network nationally, Verizon Communications reported that 150 of the company's largest business customers have signed contracts for advanced services provided over the network. In the first phase of the expansion, Verizon built out infrastructure throughout the Northeastern US, specifically to connect states such as New York, Massachusetts and Pennsylvania, among others. In Q1, Verizon added long-distance connections in the Northeast for its Regional Frame Relay, SONET and ATM services. These long distance services are now available across New York, New Jersey, Pennsylvania, Massachusetts, New Hampshire, Rhode Island, Delaware, Maryland and Virginia, and the District of Columbia. In the coming months, Verizon plans to extend its services to more cities along the I-95 corridor and add MPLS support. Additional regional offerings will include Transparent Local Area Networking Service (TLS)/Ethernet, IP and optical networking services.
http://www.verizon.com
  • In November 2002, Verizon launched an initiative to deliver long distance data services to large enterprises and government agencies. The company had recently been granted FCC permission to offer long-distance voice and data service to roughly 90% of its customers. Verizon said its Enterprise Advance initiative will create a network with national reach. The new enterprise services arsenal will include transparent LAN, fast packet and IP services, optical networking and voice switching enhancements. The service will be based on an optical and IP backbone providing "any-to-any" transmission. Verizon initially is targeting business and government customers in the Northeast's I-95 corridor, reaching from Boston to Virginia. Verizon will then build out its IP backbone to further connect its national service territory in locations such as Dallas, Los Angeles, Seattle and Tampa. Verizon's Enterprise Advance will extend to 56 key US markets.


  • In July 2002, Verizon Communications decided not to reintegrate Genuity as part of the company. Genuity was created in 2000 when GTE Internetworking spun-off into an independent company as a condition for the approval of the merger between GTE and Bell Atlantic (now Verizon).

Net to Net Technologies Offers a 2-port Loop Bonding ADSL Modem

Net to Net Technologies introduced ADSL Loop Bonding technology that could be used for offering "Triple Play" services, especially IP TV. Net to Net's ANE8420-S modem allows telcos to bond two copper pairs together to deliver 21 Mbps out to 10,000 feet from the central office or remote terminal. At 15,000 feet, the technology supports 12 to 15 Mbps rates. The Loop Bonding is based on Net to Net's Ethernet-based IP DSL technologies,http://www.nettonet.com

Gilat to Provide Large-Scale Satellite Rural Telephony Network in Tibet

China Telecom selected Gilat Satellite Networks to provide a large-scale, satellite-based rural telephony network in Tibet. China Telecom initially will purchase a DialAway hub, 14 gateways and 1,300 VSAT terminals for public call offices to serve the region's remote villages. The tender indicates that the contract can be extended to a total of 5,000 VSATs. Each DialAway remote site supports up to six toll-quality voice channels on the network, providing as many as 4-5,000 voice lines. Gilat has already supplied such a satellite telephony system for China's remote Xinjiang region, as well as to Telkom South Africa, Peru's FITEL, Colombia's Compartel and India's TATA Teleservices.
http://www.gilat.com

BT Chooses CIENA as a Strategic Partner

BT has selected CIENA's LightWorks product portfolio as part of its new, next-generation network. The global three-year deal will place CIENA in the role of a strategic supplier of optical transport and switching equipment and network management software. Products covered by the contract include CIENA's CoreDirector, CoreStream, ONLINE Metro, ONLINE Edge and MetroDirector K2. Also, BT will use CIENA's ON-Center Management system, which combines element, network and service management capabilities, along with simple point-and-click provisioning.
http://www.ciena.com
http://www.bt.com
  • In April 2003, ADVA Optical Networking was awarded an additional three-year contract from BT for its Fiber Service Platform (FSP) 500 systems. This adds to a previous four-year deal, during which time BT standardized the FSP 500 as its multi-protocol platform for deployment of all LAN extension services. ADVA said its FSP 500 has enabled BT to sell more than 10,000 short-haul data circuits into approximately 1,600 enterprises in the U.K. over the past four years.

Deutsche Telekom Tests "Basic" Public Telephones

In response to the declining use of public telephones in many locations, Deutsche Telekom is carrying out a national pilot test involving the implementation of "basic" public telephones until the end of 2005. The basic phones would allow emergency calls to be made, calling cards to be used or reverse charge calls to be initiated. However, they would not have coin and telephone card slots, which are susceptible to vandalism and represent an on-going cost to the company.
http://www.telekom.de

Remote Alaska Town Builds Satellite-Connected Wi-Fi Network

Coffman Cove, Alaska, a small town of 240 people that is accessible only by ferry or air, will install a municipal wireless hotspot with a 2-mile radius from its center. The community voted for SkyFrames' Satellite Broadband Services to install the 802.11 equipment with omni-directional antennas and provide a T1-equivalent network backhaul to the Internet. The city-run ISP has 55 customers willing to pay for the service.
http://www.skyframes.com

Sprint North Supply to Distribute SanteraOne Platform

Sprint North Supply was selected as the first nationwide wholesale distributor for Santera Systems' SanteraOne integrated voice and data switching platform. Sprint North Supply is a supply chain solution provider serving network service providers, manufacturers and resellers throughout North America.
http://www.santera.com
http://www.sprintnorthsupply.com

SureWest Turns a Profit, Cites Triple Play Success

SureWest Communications, an integrated communications provider based in Roseville, California, reported Q1 net revenues of $47.4 million and net income of $0.7 million, or $0.05 per share. The company has nearly 17,000 DSL subscribers and over 15,000 'triple-play' revenue generating units (RGUs). SureWest, which has 100% DSL availability in its service area, has a DSL penetration density of 17.8% of primary residential lines and 12.3% of ILEC access lines.


Consolidated capital expenditures related to operations totaled $11.3 million in the first quarter of 2003, compared to $10.8 million in the first quarter of 2002. Capital expenditures for the remainder of 2003 are expected to total about $50 million, including approximately $21 million for triple-play capital expenditures.
http://www.surewest.com
  • SureWest serves in excess of 135,000 access lines in its 83-square mile territory near Sacramento, California.

IDT Terminates Bid to Acquire ITXC, Comments on Global Crossing

IDT Corporation terminated its proposal to acquire all outstanding shares of ITXC and said it will enter into negotiations with the company. IDT said it would not take any action to acquire the shares of ITXC for the next thirty days without ITXC's consent. It gave no assurance that a deal would be reached.


Separately, IDT reiterated its desire to purchase Global Crossing following Hutchison's decision to drop its bid. IDT has long been a vocal critic of the proposed Asian investment in Global Crossing, arguing that it poses "grave and unnecessary national security risks." IDT urged members of Congress and other governmental bodies to continue their scrutiny of Singapore Technologies and its continued bid for Global Crossing.
http://www.idttelecom.com
http://www.itxc.com
  • On 10-April-2003, IDT publicly announced a proposal to acquire ITXC Corp. in a stock-for-stock transaction that would provide a 15% premium to the stockholders of ITXC, based on the closing price of ITXC's stock on the previous day. ITXC rejected the offer.


  • On 25-February-2003, IDT publicly announced a bid to acquire Global Crossing that would “at least�? match the offer submitted last August by the Hong Kong-based conglomerate Hutchinson Whampoa Ltd and state-controlled Singapore Technology Pte Ltd. The offer was rejected.

SMC to Support Wi-Fi Protected Access by June

SMC Networks announced that its portfolio of wireless networking products will include support for the new Wi-Fi Protected Access (WPA) by June. WPA is an extension of the Wired Equivalent Privacy (WEP) technology.
http://www.smc.com

Cable & Wireless and CODETEL Deploy Nortel Networks' Passport

Cable & Wireless Jamaica and CODETEL (the Dominican Republic's main telecommunications services provider) have each deployed Nortel Networks' Passport 20000 Multiservice Switches. Both carriers will use the Passport 20000 as a core switching platform for voice and data traffic. The Passport 20000 also positions CODETEL to increase capacity for ATM, Frame Relay, private line and other existing services, while introducing IP VPNs and Layer 2 VPNs. Financial terms were not disclosed. Nortel Networks said the installations mark the first deployment of Passport 20000s in the Caribbean or Latin America.
http://www.nortelnetworks.com

Canada's Microcell Emerges from Chapter 11, Eliminates C$1.6 Billion in Debt

Microcell Telecommunications, a Canadian wireless service provider, completed the bankruptcy reorganization process, reducing its total debt obligations by approximately C$1.6 billion and its annual interest obligations by a range of C$160 million to C$200 million. The company emerges with approximately C$125 million in cash and C$25 million in credit. Microcell operates a GSM network and serves one million customers across Canada.
http://www.microcell.ca

Tuesday, April 29, 2003

RealNetworks Reaches One Million Internet Media Subscribers

RealNetworks became the first company to reach one million subscribers for a paid Internet media content subscription service. The company said its RealOne SuperPass, which featured live video of the war in Iraq, became one of the most popular news sources during April. News content delivered grew five fold in the first several days of the conflict.
http://www.realnetworks.com

Microsoft Targets Web Services, Wi-Fi and Bluetooth for Cars

At the second annual Microsoft European Automotive & Telematics Conference held this week in Munich, Microsoft outlined plans for Web services, Wi-Fi and Bluetooth connectivity in cars. The Windows Automotive software platform is already being used in the BMW 7 Series for controlling the GPS-enabled navigation system, electronic and entertainment systems, mobile phones and vehicle diagnostics. The Windows operating system will appear in new cars from Honda, Volvo, Fiat and Citroën. In Japan, Toyota is using Microsoft's Windows Automotive for its G-BOOK telematics system, which will be a standard feature even for cars priced at about US$10,000. Microsoft predicts three trends that will drive telematics to mass adoption. First, interoperability between consumer electronics system and Bluetooth connectivity will enable the car to automatically detect mobile phones and share information with PDAs and Pocket PCs. Tablet PCs could be used in the car as a "no compromise" navigation screen. Wi-Fi connected gas stations or a home garage might download music to the stereo. The second need for telematics that Microsoft sees is safety -- potentially, speech recognition applications could aid the driver without causing too much of a distraction. The third trend is cost reduction. Microsoft argues that a common OS for all the vehicle systems will eventually lower the cost of the whole car.
http://www.microsoft.com/presspass/features/2003/apr03/04-30telematics.asp

Tekelec and Santera Combine their Next Gen Switching Businesses

Tekelec and Santera Systems agreed to combine their next-generation switching businesses. Tekelec is a developer of telecommunications signaling solutions, packet-telephony infrastructure, network monitoring technology, and value-added applications. Santera Systems offers an integrated voice and data switching platform for delivering Class 4/5 services, PRI offload, packet/cell switching and voice over broadband services. The SanterOne platform features both TDM and packet switching fabrics. The combined company's product portfolio will also include media gateways, media gateway controllers, signaling gateways and element management systems for migrating from circuit to packet networks. Under the deal, Tekelec will contribute $28 million in cash and its existing packet telephony business. Santera's current investors will contribute its assets and an additional $12 million in cash. Initially, the division will be 52% owned by Tekelec. Tekelec will also have the ability to increase its ownership percentage in the new subsidiary up to 62.5% and has the option to purchase the entire remaining interest from 01-July-2005 through 31-December-2007. The new business will be called Santera, a Tekelec company. David Heard, CEO of Santera Systems will serve as president of the new subsidiary. The transaction is expected to close before the end of Q2.
http://www.tekelec.com
http://www.santera.com

Nortel Networks, Redback Networks Settle Lawsuit

Nortel Networks and Redback Networks reached a settlement in their pending lawsuits. The case goes back to December 2001, when Redback sued Nortel Networks seeking to invalidate five patents. As part of the settlement, Nortel Networks and Redback entered into a patent cross-licensing agreement and Redback agreed to pay Nortel an undisclosed fee.
http://www.nortelnetworks.com
http://www.redback.com

Hutchison Withdraws its Proposed Global Crossing Acquisition

In light of a new probe by the U.S. government's Committee on Foreign Investment, Hutchison Telecommunications decided to withdraw its proposed acquisition of a 30.75% stake in Global Crossing. Singapore Technologies Telemedia will exercise its rights to acquire Hutchison Telecommunications' planned stake in a newly constituted Global Crossing. Specifically, ST Telemedia will increase its original investment from $125 million to a total $250 million for 61.5% ownership interest in the reorganized Global Crossing upon its emergence from Chapter 11. Global Crossing said the new arrangement would not change distributions to creditors under its existing Chapter 11 Plan of Reorganization filed with the courts.


Hutchison Telecommunications is a subsidiary of Hutchison Whampoa, a multinational conglomerate based in Hong Kong. ST Telemedia is a major shareholder in Singapore's second largest telecommunications company, StarHub; Indonesia's second largest telecommunications operator, PT Indosat; and Equinix, which provides Internet exchange and infrastructure services in the US and the Asia-Pacific region.


The Committee on Foreign Investment is managed by the Treasury Department and includes input from a number of Defense Department and Justice Department agencies.
http://www.hutchison-whampoa.com
  • In February, IDT, a multinational carrier, announced a bid to acquire Global Crossing, arguing that national security issues were raised by the proposed deal with Hutchinson and Singapore Telemedia.


  • On 17 December 2002, a U.S. bankruptcy court confirmed Global Crossing's Chapter 11 plan of reorganization. Global Crossing said that it expected to emerge from Chapter 11 as a reorganized company during the first half of 2003. Various regulatory agencies need to review and approve the transaction for it to take effect.


  • In August 2002, Hutchison Telecommunications (Hutchison) and Singapore Technologies Telemedia Pte. Ltd. (ST Telemedia) announced plans to invest a total of $250 million for a 61.5% majority interest in a newly constituted Global Crossing. The agreement was approved by the bankruptcy court in New York and has the support of Global Crossing's major creditor groups. Global Crossing's banks and creditors would receive 38.5% of the common equity in the newly constituted Global Crossing, $300 million in cash and $200 million of new debt in the form of senior notes. In January 2002, Hutchison Whampoa and Singapore Technologies Telemedia had initially bid a total of $750 million cash for a joint majority stake in Global Crossing's equity.

Alcatel Integrates iMagicTV for TV over DSL

Alcatel completed its acquisition of iMagicTV, a developer of software for delivering multi-channel digital television over broadband networks. Alcatel said the acquisition provides it with a ready-to-deploy solution for triple play (TV, Internet and Telephone) broadband services. iMagic also provides back-end service provisioning capabilities. iMagicTV will be marketed under the name Alcatel 5950 Media Manager. The final exchange ratio used to exchange iMagicTV shares for Alcatel ADS shares was 0.158517 which equates to a value of US$1.30 per iMagicTV share. Alcatel acquired 20,826,362 of common shares, representing 84% of the capital. It now holds 100% of the company.
http://www.alcatel.com

EC Approves Some Network Sharing for 3G Licensees

The European Commission approved 3G mobile network infrastructure sharing in the UK, ruling that site sharing in itself does not raise competition concerns. More specifically, 3G site sharing between operators does not restrict competition if such agreements are limited to sharing basic network infrastructure such as masts, power supply, racking and cooling. The EC investigation into the infrastructure sharing also found that national roaming between licensed network operators benefits consumers by allowing the operators involved to offer better and quicker coverage, especially in less built-up and more remote areas. Roaming will not include the top ten cities in the UK and is limited to smaller cities and rural areas. National roaming in smaller cities can benefit from an exemption form the antitrust rules until 31-December-2007. For rural areas the exemption expires on 31-December-2008. The case arose following an infrastructure sharing agreement between T-Mobile and mmO2.http://europa.eu.int

MCI Adds Windows Messenger to its Converged Communications Service

MCI is adding Microsoft Windows Messenger to its MCI Advantage (formerly known as the WorldCom Connection) converged communications service. Both Windows Messenger and the MCI Advantage support SIP. With the new Windows Messenger capability, MCI Advantage business users can complete and receive voice calls, participate in real-time chat sessions and share information with colleagues directly from their desktop or any SIP enabled device. Users can also take their MCI Advantage service and calling features with them to any location by connecting to an MCI IP network.
http://www.mci.com