Covad and Z-Tel to Use Line Splitting for Bundled DSL Services

Z-Tel Technologies with begin bundling its local and long distance services with the DSL broadband services it resells from Covad based on a process called line splitting. Through this process, Z-Tel will "split" the loop it buys from local phone companies to offer Z-Tel local, long distance and Covad's DSL service on the same line. Z-Tel will offer DSL services under its own name. Customers will receive one bill from Z-Tel for all telecommunications services, and Z-Tel will be the first point of contact for customer service. The new service will be available by the end of 2003.
http://www.ztel.com
http://www.covad.com

• In May 2003, Z-Tel Technologies signed a two-year, non-exclusive agreement enabling it to deliver broadband services using Covad's DSL network. Z-Tel will offer DSL services under its own name, so customers will receive one bill from Z-Tel for both voice and broadband services.

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Redback Releases NetOp Policy Manager Based on RADIUS

Redback Networks released a policy and service management software application based on the RADIUS protocol that enables Redback's existing SMS and SmartEdge platforms to provision and control revenue generating IP services. Redback's new NetOp Policy Manager is designed to work over residential and business broadband access technologies including DSL, Wi-Fi, cable modem, leased lines, ATM/Frame Relay and Ethernet. Service providers with existing Redback SMS and SmartEdge platforms could use the NetOp Policy Manager to automate the delivery of new services -- such as tiered bandwidth services and URL filtering for parental control or complex video and Wi-Fi services. For instance, Redback's NetOp Policy Manager could be used for broadband services priced and delivered based on the number of bytes used (volume-based), amount of time used (duration-based) or time of day. The NetOp Policy Manager could also be used for Wi-Fi services that use the same subscriber management infrastructure as an existing DSL or cable modem network. Redback noted that a major ISP in Korea is using the NetOp policy manager for a broadband URL Filtering service (parental control) that generates up to $2 in incremental income per month for each subscriber. Reback is offering multiple licensing options for this type of software. It can be licensed as run-time software with feature enhancements based on a feature roadmap, or the entire source code can be licensed which allows service providers the flexibility to customize the product.
http://www.redback.com

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SGI to Resell TeraBurst Optical Networking for Visualization Apps

Silicon Graphics Inc. (SGI) will begin reselling optical networking equipment from TeraBurst Networks, a start-up based in Sunnyvale, California. The Teraburst gear will be used for connectivity between SGI Reality Center facilities for distributed visualization applications. Teraburst's V2O platform converts the video signal from SGI systems to a standard telecom-ready signal for either OC3 or OC48 SONET-based optical networks. The optical network allows users to see the stereo frame rates and image quality generated by the SGI Onyx system, enabling a new level of remote, collaborative visualization. For example, multisite command-and-control teams can use the high-performance, high-resolution and long distance graphics distribution capabilities from TeraBurst to leverage the data fusion capabilities of an SGI Onyx system to interact with multiple remote high-resolution data and video streams in a 3D environment.
http://www.sgi.com/visualization/van/http://www.teraburst.com/

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Qwest and Sony to Offer Entertainment and Gaming for DSL

Qwest Communications signed an agreement with Sony Pictures Digital Networks to provide gaming and entertainment packages for Qwest's DSL customers. DSL customers purchasing MSN Broadband powered by Qwest within the next six months can select either a Broadband Games Pack from Sony, a retail value of $110, or a Broadband Entertainment Pack from Sony, a $169 retail value, as a value-added feature available at no extra cost.


The Broadband Games Pack includes online and/or downloadable games.


The Broadband Entertainment Pack includes Movielink movie downloads; music downloads from Sony Music; Video and music creation software tools from Screenblast; and a 30-day subscription to SoapCity Download, which provides downloadable episodes of daily soap operas.
http://www.qwest.com

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Seranoa Secures $9 Million for IP Edge Concentrator

Seranoa Networks, a start-up based in Boxborough, Massachusetts, secured $9 million in additional funding for its IP edge concentrators, which aggregate incoming TDM access circuits onto Gigabit Ethernet trunks. Participants in the funding round include Advent International, St. Paul Ventures, YankeeTek Ventures, FA Technology Ventures, Schoffstall Ventures, and private investors. Seranoa has now raised $25 million to date.
http://www.seranoa.com

• Seranoa's WANport T3 Edge Concentrator is an IP-aware layer-2 switch positioned as a lower cost alternative to edge router line cards. The company said the vast majority of edge router cost is tied up in line cards for subscriber aggregation. Seranoa's WANport concentrators aggregate up to 12 incoming channelized T3 access circuits onto redundant Gigabit Ethernet trunks for connectivity to popular edge routers. The Seranoa concentrators would front-end existing edge routers.

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UTStarcom Plans Two-for-One Stock Split

UTStarcom intends to pursue a two-for- one stock split, to be effected in the form of a one-for-one stock dividend. Hong Lu, president and CEO of UTStarcom said the proposed stock dividend reflects confidence "in the long-term growth opportunities" for UTStarcom.
http://www.utstar.com

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Zarlink Ships its Latest Fast Ethernet Switching Chips

Zarlink announced volume availability of a new family of small Fast Ethernet switching chips featuring QoS capability. The six-device product family consists of eight-port Fast Ethernet switches with a Gigabit uplink, as well as five- and nine-port switches. Available in managed or lightly managed options, the switches provide full wire-speed forwarding at Layer 2 and classification at Layers 2 through 4. The Gigabit uplink versions are expandable to 16 ports. The designs are Zarlink's sixth generation of Ethernet switching chips.
http://www.zarlink.com

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Turk Telecom to Deploy Redback's SmartEdge 800 Service Gateway

Turk Telecom, Turkey's incumbent PTT network provider, has selected Redback Networks' SmartEdge 800 Service Gateway and its new NetOp Policy Manager platforms for the rollout of its nationwide broadband network. Redback's platforms are expected to be deployed in POPs throughout Turkey. The installation and support of these products will be handled by Meteksan, Redback's local solutions integration partner. The equipment will be use to provide broadband connectivity and value-added IP services to both businesses and consumers. Financial terms were not disclosed.
http://www.redback.com

• In June 2003, Redback Networks announced the integration of its subscriber management systems (SMS) technology in its SmartEdge platform. The combined feature set will allow service providers to utilize the same Redback network management, policy management, user profiles and billing systems in an edge platform with dynamic policy enforcement, carrier-class IP routing, ATM mediation, MPLS VPNs, multicast and QoS capabilities. At the same time, Redback is introducing the SmartEdge 400, a smaller version of its SmartEdge 800 platform. The new platform is designed for deployment in smaller central offices and POPs, whereas the SmartEdge 800 is positioned for larger POPs.

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CableLabs Certifies Gateways from NETGEAR and Scientific Atlanta

CableLabs awarded certified status for CableHome 1.0 compliance to two more products: residential gateways from NETGEAR and Scientific Atlanta. The CableHome standard builds on the DOCSIS standard to allow for the distribution of broadband service throughout a consumer's home.
http://www.cablelabs.com

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Japan Reaches 8 Million DSL Users and 458,000 FTTH Lines

Japan's Ministry of Home Management, Posts and Telecommunications posted official Internet access figures as of 30-Jun-2003. The report indicates a rapid rise in the number or DSL users over the past 12 months, an accelerating trend in FTTH deployments and continued growth in cable modem services.
http://www.soumu.go.jp/joho_tsusin/eng/Statistics/number_users030731.html

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NTT Group Adds 520,000 DSL and 109,000 Optical Access Lines in Q2

Over the past three months, the various division of the NTT Group have added a total of 520,000 ADSL lines and 109,000 optical access lines (B-FLETS service). Together, NTT East and NTT West now serve 3,069,000 DSL lines and 308,000 FTTH lines. Meanwhile, the numbers of ISDN lines served by NTT East and NTT West dropped by 75,000. Overall, the NTT Group reported consolidated revenues of 2,672 billion yen ($22 billion) for the quarter ending 30-June-2003.
http://www.ntt.co.jp

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Expand Networks Raises $9 Million for its WAN Compression

Expand Networks, a start-up based in Roseland, New Jersey with R&D in Israel, announced a $9.0 million round of financing for its WAN compression and acceleration appliances. The company claims its technology increases average network capacity of WAN links by 100-400%, with peaks of 1000+%, through a combination of byte-level caching, packet header reduction and adaptive packet compression. Expand Networks also uses advanced packet classification techniques to provide application-level control across WAN links. The company has shipped over 15,000 units to more than 600 customers including Motorola, Texas Instruments and the U.S. Department of Defense. The new funding was led by Tamir Fishman Ventures and included existing investors Weiss Peck & Greer, RBC Capital Markets, Comcast Interactive Capital, America Online, Inc., Omninet Capital, LLC and EURcom Holdings. Expand Networks has raised close to $40 million to date.
http://www.expand.com

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Alcatel to Resell WaterCove's Mobile Data Service System

Alcatel signed a strategic OEM agreement to resell WaterCove Networks' Mobile Data Service System (MDSS) as part of its expanded packet data portfolio for 2.5G and 3G networks. The WaterCove MDSS provides an extended billing solution that allows operators to offer a larger suite of high margin GPRS data services including mobile email, Internet access or multimedia messaging (MMS). Financial terms were not disclosed.
http://www.alcatel.com
http://www.watercove.com

• Orange UK is using the WaterCove Mobile Data Service System to provide prepaid data services billed in real time.


• 
  
  Key elements of the WaterCove architecture include an intelligent server that creates and manages subscriber profiles and network policies. It provides streamlined provisioning for subscriber data profiles by leveraging existing systems that contain this information, as well as open systems interfaces to third party and/or internally developed applications and services. WaterCove's Mobile Data Support Node performs switching, service delivery, subscriber aggregation and network resource management. Deep processing power enforces policies and for real-time metering.


• 
  
  In January 2003, WaterCove raised $20 million in third round financing. Charles River Ventures, Sprout Group, Orange Ventures and Bessemer Venture Partners participated in this round. The company has raised a total of $70 million of equity financing to date.


• 
  
  WaterCove Networks is led by Peter Lojko, previously VP and General Manager of Excel Switching, developers of programmable voice switches. Lucent acquired Excel Switching in August 1999 for $1.7 billion in stock.

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Tellabs Signs Distribution Deal with Russia's AMT Group

The AMT Group, a leading systems integrator based in Russia, will distribute Tellabs' managed access and next-generation optical networking equipment to telecommunications operators in Russia and the Commonwealth of Independent States (CIS). The agreement will extend the AMT Group's portfolio of telecommunications equipment by adding the Tellabs 6300 managed transport systems and the Tellabs 8100 managed access systems.
http://www.tellabs.com
http://www.amt.ru

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ECI Posts Q2 Results, Adds Former Deutsche Telekom Exec to Board

ECI Telecom reported Q2 revenue of $102 million compared to $119 million in Q1 2003 and $174 million in Q2 2002. Gross profit was $37.3 million (36.7% of revenues), compared to gross profit of $48.7 million (41.0%) in Q1 and $67.5 million (38.8%) in Q2 2002. The operating loss for the second quarter of 2003 was $34.3 million compared to an operating loss of $5.6 million in Q1 and an operating loss of $3.2 million for Q2 2002. The net loss for Q2 2003 was $35.0 million, or $0.32 per share. Some other highlights:

• ECI's Broadband Access Division (formerly the Inovia Broadband Access Division) recorded revenues of $45 million in Q2 compared to $51 million in the first quarter of 2003 and $73 million in the second quarter of last year. The division recorded improved gross margins for the quarter and announced the completion of the OSMINE process for Telcordia Systems Integration. The division also cited progress in "triple-play" services - voice, data and video -- including a key contract with the Cyprus Telecommunications Authority (CYTA) for tens of thousands of DSL lines.


• 
  
  ECI's Optical Networks Division (formerly the Lightscape Optical Networks Division which consisted of Lightscape and Enavis) recorded revenues of $40 million in Q2 compared to $42 million in Q1 and $60 million in Q2 last year. The division has released its new network management system to select customers and is on track to deliver Ethernet switching on the XDM during Q4.


• 
  
  ECtel, in which ECI holds a 58% stake, reported Q2 revenues of $10 million compared to $15 million in Q1 2003 and $24 million in Q2 2002.


• 
  
  Sales to Veraz Networks totaled $6.5 million in Q2 compared to $8.7 million in the first quarter. ECI holds 43% of privately-held Veraz. ECI manufactures and sells DCME (Digital Circuit Multiplication Equipment) and Voice over IP products to Veraz for resale.


• 
  
  Gerd Tenzer, former Deputy Chairman of the Board of Management of Deutsche Telekom, has joined the ECI Board of Directors.

http://www.ecitele.com

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MCI Responds to AT&T's Claims

MCI fired back at AT&T with a public statement again accussing AT&T of attempting to obstruct its emergence from Chapter 11. Specifically:


MCI refuted the claim that national security has been compromised by routing government calls through Canada


MCI reiterated that least cost routing is an acceptable and legal industry practice santioned by the FCC and even used by AT&T


MCI stated that it routes only a small percentage of its traffic through Least Cost Routing companies, and only 0.5 percent of that traffic through Onvoy, yielding a savings to MCI of 0.02% of the company's total telecommunications expenses. MCI insists that the amount of money at issue in any such claim would be immaterial to plan of reorganization.

Separately, the U.S. bankruptcy court overseeing its case approved MCI's settlement with the Securities and Exchange Commission. The settlement calls for a civil penalty to the company of $2.25 billion to be satisfied by a $500 million cash payment and $250 million in common stock to shareholders and bondholders upon emergence from Chapter 11 protection.
http://www.mci.com

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Founder of MP3.com Launches SIPhone Promising Free Services

Michael Robertson, the founder and former CEO of MP3.com and current CEO of Lindows.com, launched a new company promising a free, worldwide SIP phone service. SIPphone plans to sell a SIP phone that would use a broadband Internet connection to automatically connect with the company's SIPhone directory. The company will assign a unique SIP number formatted to the standard numbering convention of a 3-digit area code (747) and a 7-digit phone number such as 555-1212. Users would be able to talk for free for as long as they like with other any other SIP user worldwide. SIP phone users are limited to calling other SIP numbers. A pair of SIP phones is priced at $129.
http://www.sipphone.com

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SBC to Deploy more than 20,000 Wi-Fi Hotspots

SBC plans to deploy more than 20,000 Wi-Fi wireless LAN hot spots in 6,000 venues over the next three years and create an integrated Wi-Fi and 3G service. The new Wi-Fi service will be marketed as "FreedomLink" throughout the SBC 13-state region. Where possible, SBC intends to use its public telephone infrastructure to establish access points and to use SBC DSL or T1 service as the backhaul. About 1,000 Wi-Fi hot spots are expected to be online in several hundred venues by year-end, more than 9,000 hot spots in 2,000 venues by the end of 2004 and more than 20,000 hot spots in 6,000
venues by the end of 2006.


Initially, the FreedomLink service will be offered to customers on a transactional basis with a one-time fee for daily sessions. SBC intends to offer deeply discounted pricing for customers who combine FreedomLink with other SBC services and packages, including SBC Yahoo! DSL and SBC Total Connections, the company's flagship bundle, which includes local, wireless, DSL and long distance (where available) service. SBC also intends to leverage its ownership interest in Cingular Wireless to build a seamless Wi-Fi + 3G service by late 2004 or early 2005. Cingular is currently deploying Enhanced Datarate for Global Evolution (EDGE) technology.


SBC has also entered into a roaming agreement with Wayport, giving it access to 650 locations across the U.S. Wayport will also provide services that include Wayport's access control and customized SBC splash pages. To give subscribers access to additional hot spots, SBC companies will also pursue roaming agreements with other Wi-Fi service providers.
http://www.sbc.com
http://www.ipass.com

• Wayport has now signed deals with SBC, Verizon Wireless, Sprint, McDonalds, MCI, AT&T Wireless, Boingo, iPass and GRIC.

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Cisco's Linksys Group Prices 5-port Unmanaged Gig Switch at $199

Linksys, a division of Cisco Systems, introduced a new family of compact desktop and rack mount unmanaged gigabit switches. Estimated street pricing for a 5-port, unmanaged 10/100/1000 switch is $199, an 8-port version is $279, a 16-port version is $959 and a 24-port, rack-mountable version with 2 mini GBIC uplinks is $1499.
http://www.linksys.com

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LightSand Raises $7 Million, Acquires SANcastle

LightSand, a start-up based in Milpitas, California, raised $7 million in new funding to support its high-end Fibre-Channel over SONET, DWDM or direct fiber gateway products. The new funds will also be used for the acquisition of SANcastle Technologies, another start-up offering FCIP gateways and inter-fabric switch (AR/DAT) technology. SANcastle products and employees will be integrated into LightSand, which is headquartered in Milpitas, California. The Company will retain the LightSand name and will be headed by Philip Black, LightSand's current CEO. Investors in this round include Baring Equity Partners Asia, Concord Venture Partners, Fremont Ventures and Genesis Partners Group. SANcastle was based in Irving, Texas with R&D in Israel.
http://www.lightsand.com
http://www.sancastle.com

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