Thursday, March 25, 2004

Bush Comments on National Broadband Goal

In a campaign speech in New Mexico that was otherwise mainly focused on home ownership trends, President George Bush issued a call for affordable high-speed internet access to be available for all Americans by 2007:



"This country needs a national goal for broadband technology, for the spread of broadband technology. We ought to have a universal, affordable access for broadband technology by the year 2007, and then we ought to make sure as soon as possible thereafter, consumers have got plenty of choices when it comes to purchasing the broadband carrier. See, the more choices there are, the more the price will go down. And the more the price goes down, the more users there will be. And the more users there will be, the more likely it is America will stay on the competitive edge of world trade."



Regarding the possibility of taxing Internet access, Bush also commented "Let me say one thing about broadband -- we don't need to tax access to broadband. The Congress must not tax access to broadband technology if we want to spread it around."



Some industry reaction



Michael K. Powell, Chairman of the FCC, said "The president has set out a bold vision for broadband investment and deployment over the next four years. I look forward to working with my commission colleagues, Congress and the administration to deliver on this vision for the American people. Universal and affordable access to broadband is vital to the health and future growth of our economy."



John Chambers, Cisco Systems' CEO, commented: "I applaud President Bush for his vision of universal, high-speed broadband access in the United States. The Administration understands that broadband is a key driver of productivity and a vital component of economic growth. http://www.whitehouse.gov/

Azea Networks Develops Submarine Optical System

Azea Networks, a start-up based in London, unveiled an upgrade solution for undersea cable systems that are nearing the "glass ceiling" of their original design capacity limits.



Cable systems deployed in the mid to late 1990s were designed for relatively low bandwidth -- typically between one and eight wavelengths at 2.5 Gbps per channel, yielding no more than 20 Gbps total capacity per fiber pair.



Azea said that because these cables employ no electrical regeneration, in principle higher capacities could be achieved by using more sophisticated terminal equipment. In practice, however, the legacy wet plant imposes significant transmission penalties when compared with state-of-the-art multi-terabit cables.



Azea said its advanced electronic and optical technologies, including forward error correction and dispersion management, overcomes these limitations to deliver multiple 10 Gbps channels over existing cables, enabling undersea cables to achieve upgrade capacities more than 10 times the original design. Azea's solution comprises the following elements:

  • the Azea NX10 Submarine Line Terminal Equipment (SLTE), which leverages modulation techniques, Forward Error Correction (FEC) coding, and end-to-end control loop optimization


  • the Azea Element Manager (EM) and Craft Terminal (CT) that integrate with existing Operational Support Systems; and


  • a set of pre- and post-deployment services.
http://www.azea.net
  • Investors in Azea include Accel Partners, Atlas Venture and Quester.

FTTH Council Urges Federal Funding for Rural Broadband Loans

The FTTH Council is lobbying Congress to ensure full funding of a federal program providing broadband loans for rural communities. The loan program, administered by the U.S. Department of Agriculture's Rural Utilities Service, was authorized by Congress in 2002 for a six-year period, but has been targeted for reduction by the Bush Administration.



A similar industry effort last year was successful in forestalling cuts to the program in Congress' FY 2004 appropriations legislation. http://www.ftthcouncil.org

Verizon Response to S&P

Verizon Communications issued an immediate response to Standard & Poor's ratings announcement:



"Despite the general industry issues cited by S&P, we do not believe this watch is warranted given our strong business results and progress with debt reduction. We have confidence in our business model, which continues to generate healthy cash flows, including $6.4 billion in free cash flow last year. We have already reduced total debt by more than $18 billion over the past two years," said Doreen Toben, Verizon CFO. http://www.verizon.com

Standard & Poor's Foresees Greater RBOC Risks

Citing changing wireline industry dynamics and lack of clarity regarding key regulatory and competitive issues for RBOCs, Standard & Poor's placed its long-term ratings for Verizon Communications on its CreditWatch list with negative implications. Verizon Network Funding Co. also was placed on CreditWatch with negative implications.



On 17-Feb-2004, S&P placed SBC Communications and BellSouth on CreditWatch with negative implications, following the announcement that Cingular had agreed to acquire AT&T Wireless. These companies remain on CreditWatch with negative implications due to the potential credit weakening associated with the debt that SBC and BellSouth (Cingular's respective 60% and 40% owners) will incur to fund the AT&T Wireless transaction ($41 billion in cash plus net debt assumption). In addition, Standard & Poor's said the CreditWatch listings for SBC and BellSouth now include the additional potential for a rating downgrade as a result of increased business risk for these companies' wireline businesses.



In a conference call and press statement, Standard & Poor's observed that while these RBOCs maintain solid business positions and dominant market shares in most of their wireline sectors, "it is clear that their business positions have weakened to some extent in recent years and are likely to continue to be under increasing competitive pressure." S&P said the main challenges to the RBOCs' historical core business are threefold:

  • continued loss of access lines to wholesale lessors;


  • wireless substitution; and


  • cable telephony.


"Standard & Poor's recognizes that the three investment-grade RBOCs will continue to demonstrate many solid business and financial characteristics. Their business positions, though weaker than in the regulated monopoly days, are still solid. They have strong balance sheets and significant free cash flow, which enables potential deleveraging. Each has a major ownership position in a strong, nationwide wireless company."http://www.events.standardandpoors.com

Bharti and IBM Announce Telecom Partnership

Bharti Tele-Ventures Ltd., India's leading telecommunications conglomerate, and IBM India announced a long term on demand business transformation agreement targeting the telecom industry. The deal encompasses three components:

  • an initiative to consolidate, transform and manage comprehensive Information Technology (IT) infrastructure and applications.


  • the joint development and marketing of IT and telecommunications solutions and services for India.

  • Bharti Tele-Ventures to be a preferred supplier of telecommunications services to IBM India.
http://www.bhartiteleventures.comhttp://www.ibm.com/services

Sprint and Truckstop.net Sign Wi-Fi Deal

Sprint entered into a bilateral Wi-Fi roaming agreement with Truckstop.net covering more than 500 Truckstop.net wireless-enabled truck stops and travel plazas in the United States and Canada. The deal will also allow Truckstop.net service subscribers to connect to Wi-Fi ZONES compatible with Sprint service nationwide at many airports, convention centers, hotels, shopping malls and other public venues. http://www.sprint.comhttp://www.truckstop.net

Wednesday, March 24, 2004

Brooktrout to Acquire SnowShore for Media Server

Brooktrout will acquire SnowShore Networks, a start-up based in Chelmsford, Massachusetts for approximately $10 million in cash. SnowShore supplies a line of media server and media firewall products aimed at service provider applications. Snowshore's media servers are designed to integrate rich content from the Web and distributed network databases into voice services enabling the creation of converged enhanced services. Capabilities include network announcements, auto-attendant, voice messaging, pre-paid calling, integrated voice recognition, IP Centrex, audio/Web conferencing, unified communications, voice portal and multi-media messaging functionalities.



Brooktrout is a supplier of products for media processing, network interfaces, call control and signal processing. The company is based in Needham, Massachusetts. http://www.brooktrout.com/http://www.snowshore.com
  • SnowShore Networks was founded in May 2000 and raised $35.6 million in two rounds of funding from Charles River Ventures, Matrix Partners, St. Paul Venture Capital and 3i.

Swedish Municipal Carrier Selects PacketFront

Mälarenergi Stadsnät AB, a council-owned power company in Västerås, Sweden has entered into a partnership with PacketFront to rollout FTTH connections. In 2000, Västerås was the first municipality in Sweden to form its own commercial company to build and operate an open urban network, and since then the company, Mälarenergi Stadsnät AB, has deregulated the broadband market.



PacketFront's ASR 4000 broadband routers and its BECS control and provisioning system will be installed in all of Mälarenergi's new connections. Mälarenergi will eventually be replacing its existing equipment so that in the future it will have only one system, regardless of access technology (fiber, cat 5, VDSL or ADSL), in its network. http://www.packetfront.com

DoD Selects Lucent to Rebuild Iraq's Communications

The U.S. Department of Defense (DoD) awarded a two-year, $75 million contract to Lucent Technologies to rebuild, restore and modernize communications systems in Iraq. As the prime contractor, Lucent will work under the direction of the Program Management Office (PMO) of the Coalition Provisional Authority as part of the overall Iraq Infrastructure Reconstruction program. The contract has options that could extend it for five years.



Lucent recently completed installation of 13 switching, optical and network management systems in and around Baghdad under a separate subcontract to Bechtel. http://www.lucent.com

Deloitte & Touche Sees Major Off-shoring Trend for Telecom Jobs

By 2008, five percent of the telecom industry's 5.5-million labor force, or 275,000 positions, will be off-shored to countries with lower labor costs, according to a survey 42 global telecommunications operators that was conducted by Deloitte & Touche's Research division. The survey included 10 of the world's top 20 operators on a revenue basis and the survey sample represents approximately 30% of total industry revenues - based on 2002 results.



Although the off shoring trend in the telecom industry currently lags behind high tech and financial services, Deloitte & Touche believes off shoring is fast becoming one of the industry's most significant business trends.



The Deloitte & Touche study found the following benefits from off-shoring across all operators:

  • Cost savings for early adopters are expected to range between 20% and 30%, with additional savings expected.


  • Industry's move toward advanced data-oriented services will fuel the off-shoring trend by increasing the need for affordable support staff with strong technical skills.


  • Enhanced competitiveness, as multiple time zones allow teams to work around the clock to reduce time-to-market for application development.


  • Top processes being off-shored include IT services, call centers, accounting and finance, operations and application service development.


  • India is the destination of choice for off-shoring, but countries such as China, Estonia and Argentina are coming online as off-shoring sites.


  • The ability to off-shore varies. For example one operator waited 118 days to set up an IP VPN with India - this company only realized 5% cost savings;

  • Currently 30% of operators are off-shoring; slightly over half of all operators have no current policy, or have decided not to off-shore at present

  • Cost savings for operators that had undertaken off-shoring were typically in the range of 20% to 30%, with some operators attaining in excess of this.


Deloitte & Touche also identified several risks for telecom operators to consider. These include operational complexity and loss of control; language barriers, cultural differences and the protection of intellectual property; objections from home country groups, such as trade unions, as well as anti-globalists and internal employee resistance; and business disruption and security, driven by political instability or immature operations.



Deloitte & Touche is offering advice to operators that are considering an off-shoring strategy. The company forecasts cost savings for the industry to have reached $14 billion per annum by 2008. http://www.deloitte.com/research

Mirra Secures $8 Million for Personal Servers

Mirra, a start-up based in Mountain View, California secured $8 million in Series B funding for its digital content protection and management solutions for consumers. The company offers a Linux-powered personal server designed to provide hands-free, continuous backup, secure remote access and sharing from any Internet-connected PC. The new funding was led by Sequoia Capital and included existing investors Venture Strategy Partners and Sunrise Capital.



In addition, Mirra announced the appointment of Jonathan M. Harris as vice president of sales. Harris joins the company from Roku, where he was vice president of sales. http://www.mirra.com

Irish Broadband Deploys 3.5 GHz System from Navini

Irish Broadband is using Navini Networks' Ripwave platform to deploy one of the first next generation, non-line-of-sight (NLOS) wide-area wireless broadband networks in the European Union at 3.5GHz. The rollout will begin by covering 100% of Dublin. http://www.navini.comhttp://www.irishbroadband.ie

Alcatel and Intel Enter Alliance for WiMAX

Alcatel and Intel announced a strategic alliance for the definition, standardization, development, integration and marketing of WiMAX end-to-end solutions. This alliance will deliver solutions by the second half of 2005. http://www.alcatel.comhttp://www.intel.com
  • Earlier this month, Intel and Siemens announced a partnership for the development of WiMAX base-station infrastructure equipment as well as end user subscriber station devices.


  • Intel has previously announced plans to supply IEEE 802.16 compliant Wi-MAX silicon to Alvarion, Airspan Networks and Aperto Networks.

Tekelec Names Chief Operating Officer

Tekelec appointed Lori Craven as Chief Operating Officer (COO). She will continue to support the company's Global Sales and Marketing Group as well as assume responsibilities for the Santera Next-Generation Switching Business Unit. David Heard has left Santera to pursue other interests.



Craven joined Tekelec in January 2002 as the Vice President and General Manager of the Network Systems Division and has been leading Tekelec's Global Sales and Marketing Group since August 2003. She previously served with Lucent Technologies as Vice President, Mobility Solutions Development. http://www.tekelec.com

AudioCodes Introduces Media Server for VoIP and VoATM

AudioCodes introduced a media server offers up to 2,016 low-bit-rate VoIP/VoATM channels of media processing. AudioCodes new IPmedia 3000 media server could be used to provide centralized announcements, conferencing, vocoding, IVR media transcoding, IP multicasting / IP forking, record & playback, Web-based playback and other media server functions.



AudioCodes said its platform can address small to mid-density applications deployed in IP, ATM or mixed IP/ATM core networks. It also offers an optional optical PSTN interface. The IPmedia 3000 supports a variety of wireline and wireless vocoders, standards-compliant signaling and call control, state-of-the-art Echo Cancellation, and T.38 fax transmission. http://www.audiocodes.com

Ixia Enables Ethernet over SONET Testing with GFP

Ixia announced support for Generic Framing Procedure (GFP) on its OC-48c Packet over SONET (POS) interface test module. The new feature targets the testing of Metro Ethernet devices and services by generating and analyzing wire-speed Ethernet over SONET traffic for verification of transport networking equipment, multi-service provisioning platforms (MSPPs), and edge routers.



GFP is the ITU-T G.7041 standard which defines a set of methods for framing different Layer 1 and Layer 2 data traffic types -- such as Ethernet, PPP, IP, Fibre Channel, ESCON, and DVB -- into a common structure for transport over SONET networks. The protocol is used in deploying metropolitan Ethernet services and bridging customer-facing Ethernet connections with the carrier-facing SONET network.



Ixia's GFP option generates wire-speed Ethernet or PPP traffic, frame-maps the Ethernet or PPP traffic into GFP, and transports the GFP frames over an OC-48c POS interface. Statistics provide monitoring of GFP-specific functions, while trigger and filter functions enable capture and analysis of GFP frames. http://www.ixiacom.com

Juniper Networks Secures GSA Contract

The U.S. General Services Administration (GSA) has awarded a Multiple Award Schedule contract (GS-35F-0330J) to immixGroup covering Juniper Networks' products. The contract enables government agencies to more easily purchase Juniper's IP products, including the E- M- and T-series routing platforms.



The immixGroup is a government business consulting firm. http://www.juniper.net

AT&T Names Kevin Crull to Head Wireless Initiatives

AT&T named Kevin Crull as senior vice president and general manager-wireless services. Prior to his appointment, Crull was senior vice president of marketing and sales at AT&T's consumer division. http://www.att.com

Connexion by Boeing Sets Pricing for In-Flight Internet

Connexion by Boeing announced pricing details for its in-flight Internet service, which scheduled to become commercially available this spring on certain airlines. The company is offering two initial pricing plans, which will vary depending on flight length:

  • Flat Rate Pricing Option: (Unlimited access to the Internet) $29.95 for long-haul flights (more than six hours); $19.95 for medium-haul flights (between three and six hours); and $14.95 for flights less than three hours.


  • Metered Pricing Option: 30-minute starter package for $9.95 with rates of $0.25 per minute thereafter.


Lufthansa will be the first airline to launch the Connexion by Boeing service on commercial flights originating from Germany this spring. Connexion by Boeing also has service agreements with Scandinavian Airlines System (SAS), Japan Airlines and ANA. Singapore Airlines and China Airlines also have expressed their intent to install the service in subsequent months. http://www.connexionbyboeing.com