Thursday, September 23, 2004

BT Confirms 60% Lower Local Loop Unbundling Prices

By investing in new automated processes, BT has been able to reduce shared local loop unbundling (LLU) prices by a total of 60% since May 31 this year. Effective from September 30 the connection charge for the shared access service will go down to £37 (in May 2004 this had been £117), and annual rental will remain at £27.12 (was £53 in May 2004). BT said further price cuts are anticipated. http://www.btplc.com
  • Earlier this month, Cable & Wireless announced its intention to pursue the broadband market in the U.K. via local unbundling from BT. Cable & Wireless said its initial plans include a target to unbundle up to 400 exchanges by the second half of 2005 which will give Cable & Wireless access to approximately 30% of sites in the UK . The company's local loop unbundling capital investment is expected to be £40-50 million in the year to 31 March 2005. An additional £15 - 35 million will be required in the year to 31 March 2006, subject to the speed of subscriber growth.

Chelsio Hires Former Sun, Intel Executives

Chelsio Communications, a start-up offering 10-Gigabit Ethernet server adapters and protocol acceleration technology, announced the appointments of John Brennan, former Sun Microsystems engineering vice president, and Eric Taborek, former sales and marketing executive with Intel Corporation, to senior staff positions at the company, both reporting to Kianoosh Naghshineh, president and CEO.


Brennan comes to Chelsio from Sun Microsystems, where he was vice president of hardware engineering for Sun's midrange and high-end servers. He will oversee the hardware and software engineering teams at Chelsio.


Taborek joins Chelsio from Intel, where he most recently managed Intel's worldwide relationships with key industry partners, including Cisco Systems. Taborek joined Intel following its acquisition of VxTel, where he was vice president of sales and marketing. http://www.chelsio.com
  • In August, Chelsio Communications, a start-up based in Sunnyvale, California, introduced a 10 Gbps Ethernet NIC priced at $1,995. The new half-size PCI-X card is a streamlined version of Chelsio's T110 host bus adapter, which achieves high-performance and low-latency by providing protocol off-load in silicon. Chelsio also leverages a VLIW (very long instruction word) "Terminator" ASIC that can handle more than one million concurrent sessions, enabling the T110 cards to support up to 64,000 simultaneous connections.

Paid Movie Downloads Follow Digital Music's Lead

Through the first half of 2004, paid movie downloads accounted for only 0.35 of video units that were purchased or rented, including traditional channels and pay-per-view (PPV) and video-on-demand (VOD) services, like Movielink and CinemaNow, according to a new study from The NPD Group. From a demographic standpoint, 80% of those paying to rent downloaded movies during this time were male.


The NPD Group said its survey found that as with digital music, the young adult (18- to 24-year-old) age group is taking the lead in paid movie downloading. For January through June 2004, young adults represented 26% of all download rentals. By comparison, this age group represents only 16% of overall video/DVD buyers or renters. Just over half of those downloading movie rentals were younger than 35, while over 80% were younger than 45.


NPD data show that digital music customers tend to be heavier buyers of music CDs, and that pattern is echoed in digital movie rentals. Those consumers paying to rent digital movies from the Web are twice as likely to be heavy movie buyers (i.e., they purchased seven or more movies in the past three months) relative to consumers who acquire movies though PPV or VOD. In addition, 34% also reported being heavy renters (i.e., they rented seven or more movies in the past three months), which is significantly higher than those who used PPV or VOD.


In Q2 2004, Movielink, a broadband VOD service, boasted the largest share of the digital movie rental market with a 33% unit share, followed by MovieFlix with 13%. Compared to the average mix of genres that are rented or purchased, these consumers were much more likely to obtain videos from the Science Fiction/Fantasy genre. The most popular video downloaded during this quarter was "Independence Day," followed closely by "Matrix Revolutions," "Matchstick Men," "Harry Potter and the Sorcerers Stone," and "Star Trek Wrath of Khan."


The NPD Group said its VideoWatch report collects video acquisition information on a continuous basis from members of NPD's consumer panel of more than 2.5 million registered members. Detailed purchase information is collected from an average of 3,000 video buyers and renters each week. http://www.npd.com/videowatch.html

SBC Declares Third-Quarter Dividend

The board of directors of SBC Communications declared a quarterly dividend of 31.25 cents a share on the company's common shares. The third-quarter dividend is payable on Nov. 1, 2004, to stockholders of record at the close of business on Oct. 8, 2004. http://www.sbc.com

Avvio Extends 10 Gbps to 200km w/o Dispersion Compensation

Avvio Networks, a start-up based in Lowell, Massachusetts, announced that its "A1020G-X" extended reach OC192 SONET / 10GbEthernet regenerator with FEC encoding can now cover spans of up to 200 km of SMF-28 fiber without external dispersion compensation. It is available with fixed or widely tunable DWDM interfaces.


The A1020G is a 1RU device that can be configured as a network edge device or as an in-line regenerator. It can be used with Avvio's A1040 quad OC-48 to OC-192 multiplexer for a complete OC-48 to OC-192 network upgrade. http://www.avvionetworks.com

Alcatel Cites Gains in Satellite Broadband

Alcatel Space announced the selection of its "DSL in the Sky" broadband satellite system by a major Mid-East operator, as well as the launch of commercial service by Satlynx S.A., a supplier of high-speed two-way network services via satellite for Europe. The system has already been chosen by Divona Télécom in Tunisia, and by other operators in Asia.


Alcatel Space's "DSL in the Sky" solution comprises the Alcatel 9780 DVB-RCS platform plus associated terminals. It is based on the DVB-RCS standard (digital video broadcasting-return channel via satellite) and can be integrated in terrestrial DSL networks. The system supports downlinks of up to 45 Mbps and uplinks of up to 2 Mbps. http://www.alcatel.com

Mexico's Iusacell Selects Lucent for CDMA2000 Expansion

Mexico's Grupo Iusacell selected Lucent Technologies to expand its CDMA2000 1X network nationwide. Under the contract, Lucent will supply equipment, software and services for the network expansion, and will deploy new capabilities for Iusacell's Intelligent Network platform, enabling the introduction of prepaid voice and data services. Iusacell will continue to offer data services at up to 153 Kbps. Lucent Worldwide Services will provide network installation and maintenance. Financial terms were not disclosed. http://www.lucent.com
  • Earlier this month, Nortel Networks announced that Grupo Iusacell had migrated its circuit switches to a packet infrastructure using the Nortel Networks Succession Communication Server (CS) 2000 Superclass softswitch. Iusacell has also deployed Nortel Networks Passport 15000 and Passport Packet Voice Gateways in Mexico's main cities as the basis for its new IP-based core data infrastructure. The core VoIP network support the operator's long-distance traffic, and positions the carrier to expand and deploy 3G services. Financial terms were not disclosed.

AT&T Declares Quarterly Dividend

AT&T's Board of Directors today declared a regular dividend of $0.2375 (23.75 cents) per share, payable November 1, 2004, to AT&T common shareowners of record on September 30, 2004. http://www.att.com

Azul Systems Debuts Network Attached Processing

Azul Systems, a start-up based in Mountain View, California, introduced its "network attached processing compute solution" designed to provide grid-like power computing for Java and J2EE platform-based enterprise applications. The company is expected to unveil a new appliance that transparently redirects application workload to a "compute pool" of resources across a corporate network. The technology does not require any change to applications, or the existing infrastructure configuration. Compute pool appliances are simply connected to the network and Azul software is installed on the application hosts. Azul's technology is expected to work with J2EE platform products, including BEA WebLogic and IBM WebSphere application servers. http://www.azulsystems.com
  • Azul Systems is led by Stephen W. DeWitt, who previously was the Vice President and General Manager of Content Delivery and Edge Computing for Sun Microsystems, where he joined following the acquisition of Cobalt Networks. Prior to joining Cobalt, DeWitt served at Cisco Systems as Vice President and General Manager of the Enterprise Network Management Business Unit and Vice President of Enterprise Marketing.

Lockheed Martin to Build Navy's Next Gen Satellite System

Lockheed Martin was selected to lead a team to build the U.S. Navy's Mobile User Objective System (MUOS), a next-generation narrowband tactical satellite communications system. The new satellites, which will deliver simultaneous voice, data and video in real time to mobile terminals around the globe, will replace the current narrowband tactical satellite communications system known as the Ultra High Frequency Follow-On (UFO) system. Anticipated launch date for the first MUOS satellite is planned for 2010.


Lockheed Martin is the prime contractor and systems integrator for the MUOS program, and its A2100 bus will serve as the MUOS spacecraft platform. General Dynamics C4 Systems will lead the user-entry and integrated ground segments of the MUOS program, supplying a secure ground network, satellite control and network management, and a JTRS-compliant terminal solution. Work will begin to build to produce the first two satellites and associated ground control elements. The contract also provides for options on three additional spacecraft. With all options exercised, the contract for up to five satellites has a total potential value of $ 3.26 billion. http://www.lmco.com

Wednesday, September 22, 2004

Cisco to Invest US $32 Million in China R&D

Cisco Systems will invest US$32 million over the next five years to open a research and development center in Shanghai, China. The company expects to hire approximately 100 employees over the next 18 months to focus on research and development. http://www.cisco.com

AMCC Trims Financial Expectations

Applied Micro Circuits Corporation (AMCC) trimmed its financial forecast for the quarter ending September 2004 and now expects quarterly revenue to be in the range of $61 million to $62 million. This range represents a sequential decline of approximately 9% from the previous quarter's revenues of $67.4 million.



"We believe that the revenue decline is due to two primary factors. First, we've experienced lower-than-expected orders from several of our key customers who are adjusting their own inventories. Secondly, we've seen some softness in our Asia revenue primarily due to reduced demand in China's end markets," said Tom Tullie, AMCC's chief operating officer. http://www.amcc.com

Altitude Telecom to Build WiMax Network in France

Altitude Telecom, a private and independent telecommunications operator, selected Alvarion to build a nationwide network across France using licensed 3.5GHz spectrum. Altitude Telecom will deploy Alvarion's BreezeMAX platform, which is based on WiMax Forum profiles. Initially Altitude Telecom's BreezeMAX network will be rolled out in four counties, the first to be Vendee (Vendee department) with plans for additional counties within a year. Financial terms were not disclosed. http://www.altitudetelecom.fr

Matsushita and Comcast Agree to License OCAP Middleware

Matsushita Electric Industrial Co. and Comcast have agreed to license Panasonic's Open Cable Application Platform (OCAP) compliant middleware for the U.S. cable market. This middleware was developed by Panasonic and will be installed in digital cable set top boxes (STBs) to be built for Comcast, and also used in consumer devices that will be available at retail. Financial terms were not disclosed.



The two companies also have an existing agreement for Comcast to purchase Panasonic-designed and -made OCAP-compliant STBs. Panasonic and Comcast are also working on a certification system for OCAP-ready devices and digital TV. Panasonic plans to introduce an OCAP-compliant set-top cable box to the U.S. market in 2005.



Open Cable Application Platform (OCAP) ensures interoperability with digital interactive cable-ready digital TVs and cable STBs. An OCAP-ready digital television application that works with one cable operator in one area can also work with another cable operator in another area. Until now, cable operators have determined their own proprietary delivery systems, requiring different cable set-top boxes to receive and decode signals from their propriety systems. http://www.panasonic.co.jp/

NETGEAR Ships Low-Cost 48 Port Gigabit Smart Switch

NETGEAR launched its first 48 Port Gigabit Smart Switch aimed at small to medium sized businesses. The switch provides 48 10/100/1000 ports in a 1U package, and offers optional fiber connectivity through four hot-swappable SFP GBIC slots. It includes performance monitoring, port configuration, VLANs, port trunking, and Class of Service (CoS) capabilities. The product has a list price of $1750, equating to just over $36 per port. http://www.netgear.com

IDT Provides International LC for Cablevision's VoIP

IDT Telecom signed an agreement to provide international long distance phone service to Cablevision Optimum Voice digital voice-over-cable customers. The new service also includes a remote calling feature that allows customers to make international calls from any location in the U.S., Puerto Rico or U.S. Virgin Islands.



To activate international calling, Optimum Voice customers must visit the web portal and register using either a credit or debit card with a minimum initial payment of $10. http://www.idt.net/
  • In August, Cablevision Systems reported 115,050 cable VoIP customers, up 44,235 from March 2004.


  • In November 2003, Cablevision announced the availability of its digital voice-over-cable telephony across its footprint of nearly 4 million homes in the New York metropolitan area.

Marconi to re-sell Newport Networks' Session Controller

Marconi agreed to resell Newport Networks' carrier-class Session Border Controller (SBC) as part of its next-generation SoftSwitch platform. Newport Networks' 1460 Session Controller is designed for Tier 1 service providers and can handle around 70,000 simultaneous calls, corresponding to around 700,000 subscribers. SBCs can be located at two areas within the Next-Generation Network (NGN): between the user and the SoftSwitch; and between different service providers' networks. http://www.marconi.com/http://www.newport-networks.com/
  • Newport Networks was founded in September 2000 by Terry Matthews, Chairman, and John Everard, CEO.

QUALCOMM Licenses Microsoft's Windows Media Streaming Codec

QUALCOMM has licensed Microsoft Windows Media technology and will integrate the Windows Media Audio and Video codecs into QUALCOMM's Qtv video decoder solution. Handset manufacturers will be able to leverage this capability to offer consumers access to Windows Media content. Support for this Windows streaming capability will be available starting in Q1 2005 beginning with QUALCOMM's MSM6250, MSM6500 and MSM6550 Mobile Station Modem wideband CDMA (WCDMA) and CDMA2000 1x EV-DO chipset solutions.



"The goal of this agreement between Microsoft and QUALCOMM is that high-quality video on mobile phones will soon provide the streaming video experience consumers get with their high-speed wired connections at home," said John Stratton, vice president and chief marketing officer for Verizon Wireless. http://www.qualcomm.comhttp://www.microsoft.com

California Public Utilities Commission Raises UNE Rates by 20%

The California Public Utilities Commission (CPUC) approved a proposal that will increase wholesale rates for SBC's California service territory by 20 percent. The newly adopted rates for the most frequently discussed UNEs are:

  • Average 2-wire Loop: $11.93


  • Average DS-1 Loop: $57.42


  • Average DS-3 Loop: $573.20


  • 2-wire port: $3.35


  • UNE-Platform: $16.53


The Commission said SBC must adjust, or "true-up" the interim rates it charged for its UNEs to the new rates adopted today. In other words, SBC must calculate whether the previous interim rates were higher or lower than these newly adopted rates, and whether it has over or under-collected the appropriate revenues for any UNE it sold at interim rates.



The action also suspends further review of SBC's UNE prices by the California PUC until February 2007.



*** Some Reaction ***



Ken McNeely, President, AT&T California: "Today's action will not help create new jobs or spur investment in the state, but rather, simply signals the end of local phone competition and choice for Californians and higher prices for phone service. As the now uncontested and largest provider of local, long distance, wireless and DSL services in the state, this vote gives SBC the green light to re-monopolize telecommunications and provide less service at higher rates."

Paul Fadelli, Executive Director of Californians for Telecommunications Choice (CTC), said "The CPUC has also doomed all California consumers to a return to the monopoly era where we have no choices, higher rates, and poor service."http://www.cpuc.ca.gov/

France's Completel Selects Nortel for VoIP Migration

Completel, an alternative carrier serving the enterprise market in France, selected Nortel Networks to transition its network to VoIP. The network roll-out will start in Q4 2004 so that new service offers will be available at the beginning of 2005. The network will deliver basic voice, along with value-added IP Centrex-type services (PBX outsourcing), virtual call centers, video conferencing, etc. Financial terms were not disclosed.



Completel is using fiber access for main sites and on DSL access for the other sites on a national scale. http://www.nortelnetworks.comhttp://www.completel.com