Monday, June 26, 2006

Broadcom Ships 100 Millionth 54g Wi-Fi Chipset

Broadcom has shipped its 100 millionth 54g chipset.

"802.11g is currently the most prevalent Wi-Fi technology because it offers the best price/performance ratio for consumers," said Michael Hurlston, Vice President and General Manager of Broadcom's Wireless LAN Business Unit

TeliaSonera Selects Siemens for DWDM Backbone

TeliaSonera selected the Siemens Communications Group to build a new DWDM backbone to serve as the foundation for the delivery of all TeliaSonera services. The first Siemens deployment in the TeliaSonera transport network was successfully completed in spring 2006. Financial terms were not disclosed.

Siemens' Surpass Transparent Optical Networks solution consists of the DWDM platforms Surpass hiT 7300, Surpass hiT 7500 and the management system TNMS.

Siemens said its solution yields lower costs due to its full-channel optical add/drop multiplexer capabilities and photonic cross-connects, enabling remote configuration of a path without the need to access the network while staying all-optical through multiple add/drop nodes. Another highlight of the solution is the simplification of installation, provisioning and maintenance operations compared to current systems. The Siemens system also features transponders that are tunable over the full wavelength band, resulting in quicker wavelength provisioning for customers as there is no need to custom order "colors" of light

Nortel Announces Job and Pension Cuts

Nortel announced significant changes to its North American pension programs as well as a net reduction of approximately 1,100 positions globally. Nortel also announced a series of new initiatives to create a world-class Operations organization.

The announcement is the latest in a series of actions Nortel is taking to achieve a targeted operating-margin expansion in excess of US$1.5 billion in 2008.

Changes to the pension program are expected to result in an estimated annual reduction of US$100 million in pension expense starting in 2008 and savings of more than US$400 million in cash by the year 2012. Specifically, Nortel employees currently in defined benefit pension plans will be moved to defined contribution retirement programs.
The defined contribution programs will have a new formula which is comprised of an automatic employer contribution equal to two percent of employees' eligible earnings. In addition, Nortel will provide a 50 percent match on employee contributions of up to six percent of eligible earnings, for a total maximum five percent employer contribution.

Current post-retirement healthcare benefits will be eliminated for employees who are not age 50 with five years of service on July 1, 2006. All future retirees who do not meet this age and service criteria will continue to have access to healthcare coverage at their own cost through Nortel's preferred provider, given they meet eligibility requirements when they retire.

Verizon Wireless Selects Lucent for CDMA2000 1xEV-DO Rev A

Verizon Wireless has selected Lucent to deploy CDMA2000 1xEV-DO Revision A (Rev. A) technology into its nationwide network. Lucent's Rev. A solution, which consists of incremental hardware and software upgrades to Verizon Wireless' existing Lucent-supplied base stations, will enable Verizon wireless to introduce a range of new services such as enhanced push-to-talk, messaging, and VoIP. Financial terms were not disclosed.

EV-DO Rev. A enables users to receive data (forward link) at speeds up to 3.1 Megabits per second (Mbps) and send data (reverse link) at speeds of up to 1.8 Mbps.

Marvell to Acquire Intel's Handheld Processor Business for $600 Million

Marvell Technology Group agreed to acquire Intel's communications and application processor business for $600 million in cash plus the assumption by certain liabilities. Intel has the option to take up to $100 million of the $600 million purchase price in Marvell common stock.

Intel's communications and application processor business develops and sells processors for handheld devices including smart phones and personal digital assistants. The business' processors, based on Intel XScale technology, include the Intel PXA9xx communications processor, codenamed "Hermon," which powers Research in Motion's (RIM) Blackberry 8700 device. The Intel PXA27x applications processor, codenamed "Bulverde," is used in the Palm Treo smart phone, the Motorola Q and other devices. The business is run by approximately 1,400 employees. It is expected that the vast majority of these employees will become employees of Marvell.

Marvell said the deal gives it a strong presence in the growing market segment for processors used in smart handheld devices.

Intel said the sale enable it to focus its investments on its core businesses, including high-performance, low-power Intel Architecture-based processors and emerging technologies for mobile computing, including Wi-Fi and WiMAX.

After the close of the transaction, Intel intends to continue manufacturing products currently sold by this business for handheld devices and embedded applications, and to manufacture products that are being designed into upcoming devices. This arrangement is expected to continue while Marvell arranges other manufacturing resources. Intel and Marvell do not anticipate disruptions in the supply of these products due to this planned sale.

SafeNet Announces Client-Server IPSec and IKEv2 Security Toolkits for OEMs

SafeNet announced a major upgrade of its QuickSec IPSec VPN product for manufacturers of enterprise security gateways and client devices. The toolkit enables developers to add IKEv2 to enterprise security gateways, enterprise-class PBX systems, desktop VPN clients, and mobile VPN platforms.

This major release of QuickSec 4.0 Client and Server Toolkits is the first simultaneous release by SafeNet of compatible client-side and server-side development tools implementing the most current IPSec security features like IKEv2, stateful firewall, IPv6/IPv4 support, 64-bit platform support, and pre-integration with high-speed security processors for hardware acceleration.

Juniper Supplies Edge Routers to Sweden's Telge Energi

Juniper Networks announced that Telge Energi, a utility-based, government-owned communications provider in Sweden, has deployed its E320 Broadband Services Router and the SDX-300 Service Deployment System to create its new broadband access network for the delivery of Triple Play services. The network is secured by the Juniper Networks ISG-1000 with integrated intrusion detection and prevention (IDP) system, and was deployed by Juniper's local partner, Imtech Telecom.

Telge Energi maintains a broadband access network that provides its customers with access to multiple ISPs offering a range of advanced IP-based services including Internet/email, television (IPTV), video on demand, VoIP and online gaming; and Telge also provides its own broadcast TV content. Telge will use the E320 and SDX-300 combination to enable end-use customers to conveniently select and self provision services from a wide range of ISPs and network-based applications.

Redback Supplies Edge Routers in Chile, Kazakhstan

Telefonica del Sur (Telsur), the incumbent carrier in Chile's southern region, has chosen Redback's SmartEdge Multi-Service Edge Router to expand its next generation network and power its business and residential services. Already a Redback customer for five years, Telsur plans to leverage the combination of edge routing, Ethernet aggregation and subscriber management to simplify their network, to expand capacity, and to decrease the time to market for new services.

Kazakhtelecom, the incumbent fixed-line operator in Kazakhstan, has deployed Redback's SmartEdge Multi-Service Edge Routers. Financial terms were not disclosed.

BellSouth to Lab Test Alcatel's WiMAX

BellSouth plans to conduct a lab test of Alcatel's Evolium WiMAX solution. The agreement comes four months after Alcatel conducted a live demonstration of the newly ratified WiMAX IEEE 802.16e-2005 standard.

Cranite Systems Raises $11.5 Million for Network Security

Cranite Systems, a start-up based in Los Gatos, California, raised $11.5 million in venture funding for its network security products.

Cranite Systems has developed a product that delivers secure enterprise connectivity from hotspots, homes and other public spaces.
The technology encrypts all transmitted information -- including network addresses, applications, ports, and the data itself.

The new funding round led was by Warburg Pincus. Also participating in the round are existing institutional investors of Cranite: JK&B Capital, Diamondhead Ventures, BV Capital, Selby Ventures, Industry Ventures, and Pacifica Fund. Cranite plans to use the new funding to build out its existing product line and to expand its presence in the financial services, government and healthcare sectors.

VeriSign Receives Stock Option Subpoena

VeriSign received a grand jury subpoena from the U.S. Attorney for the Northern District of California requesting documents relating to VeriSign's stock option grants and practices. VeriSign also received an informal inquiry from the Securities and Exchange Commission requesting documents related to VeriSign's stock option grants and practices.

AMCC Receives Subpoena on Stock Option Grants

Applied Micro Circuits Corporation (AMCC) today received a subpoena from the U.S. Attorney for the Northern District of California requesting documents relating to the company's historical stock option practices. The company also announced that it has been contacted by the Office of the U.S. Attorney for the Southern District of California, which has opened its own investigation into AMCC's historical stock option practices.

Foundry Networks Receives Subpoena on Stock Option Grants

Foundry Networks received a grand jury subpoena issued by the U.S. District Court for the Northern District of California requesting documents related to the company's granting of stock options from 1995 through the present. The company has also received an information inquiry letter from the Securities and Exchange Commission requesting documents related to the same subject matter. Foundry said it intends to cooperate fully with both requests.