Monday, September 18, 2006

Sycamore to Restate 2003-05 Results due to Stock Option Grants

Following its internal investigation into its stock option grants, Sycamore Networks reached a preliminary conclusion that the appropriate measurement dates for financial accounting purposes of certain stock option grants differ from the recorded grant dates of such awards.

Sycamore now plans to restate historical financial statements for 2003 to 2005 to record additional non-cash charges for stock-based compensation expense related to past option grants. The company has not yet determined the aggregate amount of additional non-cash charges for stock-based compensation expense, nor has it determined the resulting tax impact, if any, or which specific periods require restatement.

IEEE-SA Adopts Plan to Move 802.20 Broadband Wireless Standard Forward

Following a suspension in June, IEEE Standards Association Standards Board (SASB) announced a plans to enable the IEEE 802.20 Working Group to move forward with its work to develop a mobile broadband wireless access standard. The work had been suspended due to concerns that the working group had become highly contentious, appeared to lack transparency and showed evidence of possible "dominance" and other potential irregularities.

The plan calls for the working group's reorganization including the appointment of new officers as well as new balloting and balloting resolution committees. Key points include:

  • All of the IEEE 802.20 officers will be replaced in an effort to provide clearly neutral leadership and to eliminate perceptions of possible bias. The working group will remain suspended until at least a chair is approved by the SASB, which the SASB anticipates will take place on or before 12 November.

  • Members of the IEEE 802 Executive Committee (EC) will work with the new officers to identify and address any efforts to dominate the IEEE 802.20 working group and to submit a plan to ensure dominance does not occur.

  • All ballot and ballot resolution groups will be dissolved and reconstituted. The IEEE EC chair will determine when any balloting may begin. The plan preserves the right of the working group to move forward with the existing work product or consider alternative technology.

  • IEEE 802.20 working group participants will be required to disclose their true affiliations at each meeting. They must identify any person or organization that, directly or indirectly, has requested, paid for or otherwise sponsored his/her participation.

Cable and Wireless International Selects Sonus

Cable & Wireless International has selected Sonus Networks for its next-generation IP-voice network. Cable & Wireless International plans to deploy one of the world's largest IP-voice networks delivering primary line local, long-distance and international telephony service. Financial terms were not disclosed.

Operating in 34 countries around the world, including 14 islands in the Caribbean, Cable and Wireless will initially deploy its Sonus-based network to support the Caribbean Islands and Bermuda.

The deployment will include both the Sonus GSX9000 and GSX4000 Open Services Switch, the PSX Call Routing Server, the ASX Access Server, the Network Border Switch for IP-to-IP peering and security, and the Sonus Insight Management System for advanced OSS and billing support.

DSL Adds 46 million Subscribers Worldwide in 12 Months

Telecom operators worldwide added 46 million new DSL subscribers in the 12 months to 30-June-2006, pushing the total, global installed DSL base to 164 million, according to the latest data produced for the international DSL Forum by industry analyst Point Topic. This represents a growth of 38% in the 12 months.

Some key findings:

  • European Union (EU) countries added 18 million DSL accounts, a growth of 45% that reinforces the region's global leadership. There are more than 56 million DSL subscribers in the EU, accounting for more than one-third of the global total.

  • South and South East Asia increased its global market share of total DSL subscribers to 22%, adding more than 13 million new subscribers in the 12 months to 30 June 2006.

  • China contributed the bulk of this growth (up 11.6 million), and India began to establish its broadband society, adding more than 1.3 million subscribers to DSL, the fastest growing market worldwide. Latin America added more than three million DSL subscribers, with Brazil (up 1.19 million) and Mexico (up 939,000) leading the way. In the Middle East and Africa, growth was dominated by Turkey (up 1.3 million) -- the second fastest moving DSL subscriber market worldwide.

  • In North America, DSL is steadily increasing its share of the total broadband market and now accounts for more than 46% of the region's broadband subscribers. In the period, broadband DSL (up 6.36 million) added more subscribers than cable modem (up 5.45 million), with growth in Canada (DSL up 22.2%) and the USA (DSL up 32.7%) both far outstripping cable modem growth.

  • At 30-June-2006, 16 countries had passed the two million DSL subscriber mark -- Australia, Turkey and Mexico achieving that number in the period.

  • China extended its DSL population to 33 million, the largest of any country and more than 10 million subscribers ahead of the USA in second place. Of the emerging DSL nations, significant subscriber increases were seen in Vietnam (147% increase), the Czech Republic (143%), Morocco (141%) and Russia (130%).

  • In eight countries, over 25% of telephone lines are now delivering broadband services over DSL, rising to a third in France and almost 40% in Finland.

Broadcom's CFO Steps Down

Broadcom announced that William J. Ruehle, its Senior Vice President and Chief Financial Officer (CFO), has decided to retire, effective immediately. He has held the post since June 1997 and decided to accelerate his retirement as a result of Broadcom's previously-announced equity award review.

Broadcom's Board of Directors has named Bruce E. Kiddoo to serve as Acting Chief Financial Officer on an interim basis. Mr. Kiddoo is Broadcom's Vice President and Corporate Controller.

Motorola to Acquire Symbol for Mobility+Scanning Integration

Motorola announced plans to acquire Symbol Technologies, a supplier of bar code and scanning technologies, for approximately $3.9 billion in cash.

Symbol designs, develops, manufactures and services products and systems used in end-to-end enterprise mobility solutions featuring rugged mobile computing, advanced data capture, radio frequency identification (RFID), wireless infrastructure and mobility management. The company holds 900+ patents in the areas of laser bar code scanning, imaging bar code scanning, RFID, laser projection displays, mobile computing technologies and wireless technologies, among others.

Symbol's product set also includes consumer memory scanners that might be used with all sorts of bar coded products, payments systems (POS) and wireless transaction terminals, mobile computers, handheld scanners, RFID readers and wireless access points.

Motorola said the acquisition of Symbol complements its vision to deliver seamless mobility solutions to the globe.

"Everything is going digital, and everything digital is going mobile -- this is especially evident in the way businesses are run today. Motorola and Symbol share the same vision of a digital, mobile world for enterprises that matches the world people enjoy at home and at play," said Motorola Chairman and CEO, Ed Zander.


Motorola Announces SIP-enabled Cable Modems

Motorola has expanded its family of voice-enabled cable modems with the introduction of its SIP-enabled SBV5100 series.

Motorola expects many cable operators will adopt SIP-based devices for their networks as a migration path toward PacketCable 2.0. SIP, along with Quality of Service (QoS) based on PacketCable Multimedia (PCMM), provides a foundation for the delivery of advanced services, including fixed-mobile convergence (FMC) -- allowing consumers to "hand off" a cellular call to a Wi-Fi network and landline phone, rich multimedia communications, such as interactive video sessions, secure signaling and encryption, and flexible Network Address Translation (NAT) and firewall traversal technologies like Simple Traversal of User Datagram Protocol (UDP) Through Network Address Translators (STUN).

The Motorola SBV5100 series, which is expected to be available by the end of 2006, supports full-featured primary VoIP telephone service for up to two telephone lines that are terminated in two RJ-11 connectors. In addition, its integrated cable modem connects to a computer through either a 10/100Base-T Ethernet or a USB data port.

Motorola Debuts GSM fixed Phone for the Latin America

Motorola introduced a GSM fixed wireless phone for the Latin American market. Following in the footsteps of the highly successful Motorola FX1900xg phone, the Motorola FX2000xg is sleeker and smaller than its predecessor and adds key features such as polyphonic ring tones, speaker phone, and multi-caller functionality including call waiting and conference call capabilities.

FCC Raises $13.9 Billion in AWS Spectrum Auction

The FCC concluded its auction of Advanced Wireless Service (AWS) spectrum licenses, raising total gross bids of nearly $13.9 billion. The top bidders were:

  • T-Mobile License LLC, which bid $4.182 billion;

  • Cellco Partnership d/b/a Verizon Wireless, which bid $2.808 billion;

  • SpectrumCo LLC; which bid $2.377 billion;

  • MetroPCS AWS, LLC, which bid $1.391 billion;

  • and Cingular AWS, LLC, which bid $1.334 billion.

More than half of the winning bidders in the auction certified their qualifications as small business entities, enabling them to use bidding credits. All winning bidders must make down payments on their licenses within ten business days.

In a statement, FCC Chairman Kevin Martin said "The first Advanced Wireless Services auction, which closed today, is the biggest, most successful wireless auction in the Commission's history. The spectrum offered was the largest amount of spectrum suitable for deploying wireless broadband ever made available in a single auction... Auction winners are expected to use this prime "spectrum real estate" to roll out new devices, which will allow consumers to access the Internet and dedicated video services wherever they want, whenever they want."
  • Wireless DBS, which was backed by DirecTV, News Corp, Fox, EchoStar, Rupert Murdoch, and EchoStar, withdrew from the auction.

  • AWS-1 bands are currently being used for a variety of Government and non-Government services and require relocating incumbent operations. The lower half of these paired frequencies, i.e., 1710-1755 MHz, is currently a Government band and is covered by a Congressional mandate that requires that auction proceeds fund the estimated relocation costs of incumbent federal entities. The upper half of these paired frequencies, i.e., 2110-2150 MHz band, is used by private (including state and local governmental public safety services) and common carrier fixed microwave services (“FS�?). The 2150-2155 MHz band is currently used by the Broadband Radio Service (BRS).

  • The FCC has completed 64 auctions in the 13 years since it was granted competitive bidding authority.