Bill Gates Outlines "Seamless Computing" Vision at COMDEX

In his 20th annual COMDEX Las Vegas keynote address, Bill Gates outlined his vision for "Seamless Computing" -- where smarter software would address today's security problems. Gates showcased Microsoft SmartScreen Technology, an anti-spam filtering technology, and a new version of Microsoft's next-generation Internet Security and Acceleration (ISA) Server, an application-layer filtering security technology that defends enterprise networks from malicious attacks. The SmartScreen anti-spam technology has been implemented in Outlook 2003, MSN and Hotmail, and it will be integrated into Microsoft Exchange Server 2003. Gates also demonstrated the management and patching capabilities of Microsoft Systems Management Server 2003, which enables large enterprises to track the patch level of all machines in a network and to deploy new patches to all machines that need them. Gates said Microsoft has used its own product to achieve 100% patch compliance for 110,000 systems in just eight hours.
http://www.microsoft.com

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Nextel to Deploy Motorola's WiDEN Data Technology

Nextel Communications plans to deploy Motorola's WiDEN technology in its nationwide digital iDEN voice and packet data network. Motorola's WiDEN higher speed data technology is designed to quadruple data speeds. Nextel expects to deploy the network infrastructure equipment and software necessary to operate the WiDEN technology in the second half of 2004. Nextel said the capital expenditures for the deployment are already reflected in its current financial guidance.
http://www.nextel.com/

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Liberty Alliance Finalizes Phase 2 Specifications and Privacy Guidelines

The Liberty Alliance published its "Phase 2" specifications aimed at providing an open, standards-based way of delivering identity-based web services within and between trusted domains. The Liberty specifications, which build upon existing open industry standards such as SAML, SOAP, XML and WS-Security, are designed to enable individual implementers to choose the privacy policies and data management options that best fit their region, industry and company policy.
The specifications are now available for download to be used for Liberty-enabled product and service development.


Separately, the Liberty Alliance Project announced a new certification program today that will validate products and services that have successfully implemented its standards for federated network identity. The Liberty Alliance interoperability certification program will award usage of the Liberty Alliance interoperability logo to products and services that prove compatible with its standards.
http://www.projectliberty.org

• The Liberty Alliance was formed in September 2001 by thirty-three major companies in the networking, communications, finance and travel industries with the goal of creating a ubiquitous, single network sign-on that ensures decentralized authentication and open authorization from any device connected to the Internet, from traditional desktop computers and cellular phones to TVs, automobiles, credit cards and point-of-sale terminals.

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Cisco CEO Nets $38 Million in Stock Sale

John Chambers, CEO of Cisco Systems, exercised options on 2 million shares of Cisco stock at $3.45 and sold them on 13-Nov-03 at an average price of $22.59. The transaction netted him over $38 million.
http://www.cisco.com

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Tellabs Outsources International Manufacturing

Tellabs will outsource the manufacturing of its international products and transfer ownership of its Espoo, Finland, manufacturing operations to Elcoteq Network Corporation. The company also announced plans to trim its international R&D spending. Approximately 300 employees will be affected by the outsourcing and the R&D alignment. Tellabs said it will continue to focus on enhancing its IP/MPLS and next-generation SDH data capabilities.
http://www.tellabs.com

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Zhone Announces Staff Reduction Following Merger

Following the completion of its merger with Tellium, Zhone Technologies began trading on NASDAQ under the symbol ZHNE. In addition the company announced a headcount reduction of approximately 125 people affecting predominantly Oceanport, New Jersey based personnel (Tellium). The remaining Oceanport staff will continue current engineering efforts including development and support of the metro optical products.
http://www.zhone.com

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Carrier Access to Acquire Paragon Networks

Carrier Access Corporation agreed to acquire Paragon Networks, a start-up developing wireless transport systems. Financial terms were not disclosed. Designed specifically for wireless service providers (WSP), Paragon Networks' suite of backhaul solutions enable the rapid deployment of voice and data services and provide a migration path to 3G. Paragon's products focus on end-to-end cell site access and hub site aggregation, providing port capacities from DS-0 through OC-3 and a full range of functionality including SONET / SDH Add-Drop Multiplexing, Digital Cross Connect, and IP routing capability. The company said it has shipped over 100,000 ports to date to some 175 service providers worldwide. Carrier Access, which offers a range of products designed to optimize bandwidth efficiency for multiple T1s, E1s and DS3s, said the acquisition would position it to become a leading provider of wireless transport solutions to mobile wireless operators worldwide.


Separately, Carrier Access Corporation filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 6,000,000 shares of common stock.
http://www.carrieraccess.com/http://www.paragon-networks.com/

• Paragon Networks is based in Brookfield, Connecticut. The company is headed by Russ Hawkins, who joined Paragon in 1996 as the VP of Sales & Marketing, becoming Paragon's President & CEO in 1998. Prior to 1996, Mr. Hawkins was Director of Business Development with Lucent Technologies.



• In December 2001, Paragon Networks announced $12.5 million in Series D funding led by Stephens Group, Inc., and joined by Axiom Venture Partners, Connecticut Innovations, MSA Venture Partners and existing investors, including Granite Ventures (previously-H&Q Venture Associates), JK&B Capital and the Quantum Fund (part of the Soros Private Equity Partners).

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Qwest Acquires Assets from Touch America and 360networks

Qwest Communications will acquire network assets from Touch America and 360networks, enabling it to expand its national data network. Qwest recently won the right to offer long- distance data services to enterprise customers within its 14-state territory. Qwest said the assets from Touch America would allow it to support hundreds of Frame Relay and ATM customers. The assets from 360networks include fiber routes from Seattle to Billings, Montana.; from Billings, Montana to Denver; from Denver to Colorado Springs, Colorado.; and from Billings, Montana to Minneapolis. Financial terms were not disclosed. The agreements put an end to all outstanding disputes between Qwest and Touch America and 360networks regarding these assets. The deal is expected to close this year, pending bankruptcy court approval.
http://www.qwest.com

• In June 2003, Touch America and all is subsidiaries filed voluntary Chapter 11 petitions in bankruptcy court. The company has received a commitment for a Debtor-in-Possession credit facility for $5 million from WLR Recovery Fund II, LP, a fund managed by WL Ross & Co. Touch America is undertaking various cost cutting measures, including staff reductions, and said it is planning for the smooth continuation of its business. At this time, Touch America also announced the sale of its Private Line and Dedicated Internet businesses to 360networks for $28 million. The sale proceeds will be used to pay pre- and post-filing obligations. 360networks is also financially backed by WL Ross & Co.



• In June 2000, Touch America acquired Qwest's wholesale, private line and retail long-distance business in its regulated 14-state region.



• Touch America, which is based in Butte, Montana, resulted from the formation in 1983 of a telecommunications subsidiary of a diversified electric utility.



• In November 2002, 360networks emerged from bankruptcy protection with more than US$100 million of cash and US$215 million of bank debt (reduced from a pre-filing debt level of approximately US$2.7 billion). WL Ross & Co., a private equity firm, purchased debt securities that represent approximately 10% of the new equity in 360networks and 13% of its new bank debt. 360networks subsequently acquired Group Telecom, another Canadian service provider with 17 metro fiber networks. 360networks also acquired Dynegy's North American intercity network, which spanned about 16,000 route miles. The two acquisitions extended 360networks' optical mesh fiber network to 33,000 route miles (53,000 km) reaching 60 major cities in North America.

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Hanaro Telecom Reports First Profit, Subscriber Growth Stalls

Hanaro Telecom, one of Korea's largest broadband Internet access and local call service providers, reported its first quarterly profit and said that had overcome an immediate cash requirement issue by securing significant foreign investment. Hanaro will issue US$500 million in common shares to a consortium led by Newbridge Capital and American International Group, which will hold approximately 40% stake in Hanaro. Additionally, the consortium is also raising $600 million via a syndicated loan for the Company to assist in debt service.


For the quarter ending 30-Sep-03, Hanaro reported net income result of KRW 5.7 billion (US$ 5.0 million) and operating profit of KRW 42.2 billion. EBITDA jumped to a record high of KRW 151.3 billion with an EBITDA margin of 42.9%. The company attributed the improvement to an overall cost reduction of 4.9% quarter-on-quarter, mainly resulting from a substantial drop in marketing costs.


The total broadband subscriber base at the end of 3Q03 was 2,975,338, representing a slight increase of 0.4% from 2,963,514 at the end of 2Q03, reflecting the discontinuation of promotional initiatives.


In 3Q03, the proportion of subscribers for products such as VDSL, Pro, Mid and Lite were 4.8%, 16.2%, 4.1%, and 74.9%, respectively.
http://www.hanaro.com

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NetTest Enhances its SDH/SONET Tester

NetTest introduced a new "Jitter and Wander" option for its SDH/SONET module, a component of the company CMA 5000 Multi Layer Test Platform. NetTest's Optical Transport Analysis (OTA) module is a field portable tester designed to help network engineers to minimize the effects of recurrent phenomenon such as network clock synchronization and wander and timing instabilities during the installation, commission and maintenance of broadband networks. In addition to testing jitter and wander from DS1/E1 up to OC-48/STM 16, the OTA module also provides automatic jitter tolerance measurements, jitter transfer measurements and test reports.
http://www.nettest.com

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Zhone and Tellium Complete Merger

Zhone Technologies completed its merger with Tellium. Immediately prior to the consummation of the merger, Tellium implemented a one-for-four reverse stock split. The combined company's shares will commence trading on the NASDAQ Stock Market under the symbol "ZHNE" effective 14-Nov-03.


The combined company is named Zhone Technologies and will be headquartered in Oakland, California.
http://www.zhone.com/

• In July 2003, Zhone Technologies, a provider of next-gen local loop access solutions, first announced its plans to merge with Tellium, a developer of core optical switching systems. At the time, Mory Ejabat, current chairman and CEO of Zhone Technologies, said that combining the two businesses would create a comprehensive solution for local, metro and long distance service providers. Tellium would also contribute its $149.8 million in cash to the combined company, which would retain the name Zhone Technologies. Ejabat would continue as chairman and CEO of the combined operation. In the long term, the combined company plans to offer access and transport solutions that bridge existing copper-based loops and fiber optics. Zhone has acquired eight companies over the past four years.

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Myrio Raises $9 Million in New Investment

Myrio, a start-up based in Kirkland, Washington, raised $9 million in new funding for its middleware solutions for IP-based video services. Myrio has sold its software suite and associated managed services to 18 service providers worldwide.


New investors include Siemens Venture Capital, which led the round, and individual industry executives. The company's three existing venture capital investors -- Ridgewood Capital, NeoCarta Ventures and Alexander Hutton Venture Partners -- also invested in this round.
http://www.myrio.com

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Zhone Announces its Triple Play over Copper Solution

Zhone Technologies outlined its product suite for telcos delivering triple play services over their copper infrastructure. Zhone's Single Line Multi-Service product family now offers both copper or fiber interfaces, supporting TDM, IP or ATM protocols with uplinks including T1/E1 IMA, DS3, E3, OC-3, STM-1, OC-12, STM-4, 10bT, 100bT, and GigE. Line side services include G.SHDSL, ADSL, ADSL2, ADSL2+, VDSL and PON.


Zhone is also supplying a residential gateway that combines the functions of a DSL modem, router, Integrated Access Device and up to four video decoders. The device eliminates the need for set top boxes. It uses existing inside wiring (copper and coax) and existing TVs, peripherals and electronic devices for tuning.
http://www.zhone.com/

• In September 2003, Zhone Technologies unveiled a PON solution for its Single Line Multi-Service (SLMS) architecture, which is designed to enable telephone carriers to deliver the triple-play of voice, data and video services to their subscribers over a single network. Zhone is introducing new Multiple Access Line Concentrator (MALC) PON optical line termination (OLT) cards. Designed for CO, RT, outdoor cabinet or basement deployment, Zhone's MALC media- and protocol-agnostic packet loop carriers can be configured for traditional and next generation architectures, including ATM packet loop carrier, optical line termination unit, ATM/IP DSLAM and traditional DLC. Zhone's implementation supports the B-PON standard (G983.3). Zhone will also be introducing a PON Residential Gateway that serves as the ONT/ONU for connections directly to residential subscribers. The device delivers up to four POTS voice ports, fast Ethernet and RF video over a single fiber input. The unit also features the ability to distribute Ethernet over coaxial cable for homes where Cat 5 wiring is not available. The Ethernet signal is converted inside the ONT to an 802.11 RF signal which is then combined with the video signal on the coaxial cable.

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BT Reaches 1.5 million Wholesale ADSL lines

Citing a "challenging" regulatory environment and lower pricing, BT reported that its quarterly group revenues decreased by 2% year on year to GBP 4.568 billion. New wave initiatives, especially broadband and enterprise solutions generated a 25% increase in turnover in the quarter to GBP 761 million compared to the prior quarter . However, this strong growth was more than offset by a 6% decline in turnover from the group's traditional business. BT blamed a substantial proportion of the decline in traditional turnover on regulatory changes, especially reductions on fixed to mobile termination rates. Other regulatory changes affected private circuits and directory enquiries. Some major highlights:

• free cash flow improved 6% to GBP 585 million



• earnings per share improved by 19% to 4.4 pence



• BT was serving 1.5 million wholesale ADSL lines as of 31-October-2003, more than triple the number of connections 12 months ago.



• BT's market share of fixed to fixed voice minutes declined from the first quarter by 0.8% points to 41.2% with this level of decline being similar to the experience in the first quarter.

http://www.btplc.com

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SkyStream Debuts MPEG-4 Encoding and Transcoding

SkyStream Networks announced MPEG-4 encoding and transcoding capabilities for its Mediaplex-20 platform, which provides delivery of video content over IP and ATM networks in low-bandwidth environments. At this week's TelcoTV 2003 conference in Las Vegas, SkyStream is showing the Mediaplex-20 encoding digital video in dual MPEG-4 formats -- ASP and H.264 -- out of the same chassis. The new Video Repurposing (VRP) architecture of the Mediaplex-20 enables transcoding from MPEG-2 video to MPEG-4 format, MPEG-4 encoding of analog video, transrating from one video bit-rate to another, video stream replication for delivery of streams to different platforms simultaneously, and bandwidth rate reduction with bandwidth policing.
http://www.skystream.com

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Metalink's QAM VDSL Shipments to Korea Top 200K

Metalink has now shipped over 200,000-ports of its QAM VDSL chipset to South Korea. The company said its four-band QAM VDSL products are being used by Korean operators to deliver 50 Mbps IP-VDSL over single-pair copper wires. The chipsets support the ITU, ETSI, Chinese, and ANSI band allocation plans.
http://www.metalinkBB.com

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StarBand Cleared to Exit Chapter 11

StarBand, a provider of two-way satellite Internet services, received approval from a U.S. bankruptcy court to emerge from Chapter 11 protection by the end of the month. The company said its capital structure has significantly improved with the conversion of approximately $113 million of bank debt to equity. In addition, approximately $90 million of debt to Gilat Satellite Networks Ltd. will convert to equity and a $14 million post-emergence note. Further, StarBand and Gilat have entered into a new technology and hardware supply agreement providing for $7.5 million in additional financing.


StarBand has recently launched new residential price plans for its two-way satellite service with monthly fees starting at $39.99.
http://www.StarBand.com

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Broadstream Offers Outsourced Video Headend

Broadstream Communications, a start-up based in Seattle, announced a turn-key video headend service for telcos planning to offer triple-play services. Broadstream will outsource the head-end infrastructure so that telcos pay only a monthly fee, avoiding the cost of building their own headend facilities. The Broadstream service will also provide the digital TV programming -- including broadcast network content, specialty channels, movies, sports and local programming -- as well as digital music programming. Broadstream initially plans to offer over 100 video and audio programs through agreements with major broadcasters across the country. Broadstream will commence its service in Q1 2004.


Broadstream's edge platform -- located typically at the telcos Central Office -- will incorporate SkyStream Networks' Mediaplex-20 Video Delivery Platform -- a multi-channel, high-density switched video headend system that provides advanced encoding with built-in pre-processing, video multiplexing and de-multiplexing, video rate-shaping, transrating, stream replication, DVB to IP gateway and ATM to IP and DVB/ASI conversion, in a single chassis. Broadstream and SkyStream have formed a strategic alliance targeting the U.S. telco triple play market.
http://www.broadstream.tvhttp://www.skystream.com

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Amino, Kasenna and Minerva Launch NetVision

Minerva Networks, a supplier of video networking infrastructure, Kasenna, a supplier of video management and delivery software, and Amino Communications, a specialist in set-top boxes, unveiled a joint solution for the delivery of interactive television services over broadband networks. The new "NetVision" platform combines service management software (middleware), video management and delivery software, client software and a set-top box.


The back-office management software (Minerva iTVManager) and the video management and delivery software (Kasenna MediaBase XMP) run on Linux servers. The middleware client component has been optimized for the Amino set-top box. The solution supports live TV, VOD, NVOD, SVOD, Pay-per-View, Caller ID, e-mail and Web access. Amino, Kasenna and Minerva are working closely together to add advanced features such as Time-shifted Television and Personal Video Recording (PVR).


SureWest Communications has selected the NetVision solution for its triple-play services.
http://www.kasenna.com
http://www.minervanetworks.com

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Cisco and Paradyne Tests IP Video over DSL

Cisco Systems and CC&I Engineering, which specializes in switched digital video systems integration, have built what is described as one of the largest IP test beds for consumers video services over DSL. The test bed at Cisco's Customer Proof-of-Concept Lab (CPOC) in San Jose uses Cisco's Catalyst switches and Paradyne's IP-based DSLAMs connected over a fiber ring using Gigabit Ethernet.


The companies said their tests showed that Paradyne's compact (1U) GranDSLAM 4200IP maintained "excellent video quality" even when the combined multicast video and best-effort Internet traffic offered to the network was at 185% of capacity. In addition to measuring processing capability, the network was tested for jitter - a critical signal synchronization condition - that was shown to be less than 1 millisecond, nearly 50 times better than CC&I's design.
http://www.paradyne.com
http://www.cci-eng.com

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