Thursday, October 26, 2006

Avaya Launches Nationwide Mobile Truck Tour

Avaya is conducting a nationwide mobile bus tour to encourage businesses to develop contingency plans for communicating during and after a major disaster. The bus features technologies that help local businesses maintain critical communications during disasters, and when their communications systems fail, these technologies get lines of communications up and running within an hour.

NET Readies Multi-service, High-speed Switch for Naval Research Labs

Network Equipment Technologies has received initial advance orders for its NX5010 high-speed switching platform, to be shipped upon general availability of the product, which is expected shortly.

The new NX5010, which was jointly developed by NET and Bay Microsystems, is a compact, scalable, 10 Gbps multi-service aggregation and switching platform. The NX5010 enables geographically dispersed data centers to connect and enables multiple components currently required to perform SAN to WAN communications to be replaced and collapsed into a single system. Target customers include the government and financial sectors.

During testing, U.S. Naval Research Laboratory used the platform to transfer 60 terabytes of InfiniBand data over a distance of 4500 km in only 32 hours -- believed to be a record for the largest amount of InfiniBand data ever transferred per unit time over a wide area network.

The NX5010 utilizes Bay Microsystems' Biscayne and Montego programmable packet processors to enable line-rate multiservice protocol conversion and transport with hard QoS (Quality of Service) management capabilities.

Taiwan's Chunghwa Telecom Reaches 3.97 Million BB, 8.4 Million Mobile Users

Taiwan's Chunghwa Telecom 47,000 new ADSL subscribers and 53,700 new FTTB subscribers in the third quarter, bringing its total number of broadband subscribers to 3.97 million as of the end of September 2006.

Additional highlights for 3Q06:

  • Total revenue increased 2.2% QoQ to NT$47.38 billion, of which 34% was from fixed-line services, 40% from mobile services and 24% from Internet and data services. The increase in revenues was mainly driven by continued growth in the Internet and data businesses.

  • Internet & data and mobile revenues increased 3% and 2.3% QoQ, respectively

  • Net income increased 6.6% QoQ to NT$11.14 billion

  • At the end of September 2006, the company had 8.42 million mobile subscribers, with postpaid subscribers growing 4.2% YoY in the first nine months.

  • Chunghwa remains the leading mobile operator in Taiwan in terms of both 2G revenue and 2G subscriber market share with 35.6% and 41.1% respectively as of the end of September 2006.

  • Chunghwa added 188,000 3G subscribers in 3Q06, which brought the total to 597,000.

Conexant's STB Business Records 5th Consecutive Quarter of Double-Digit Growth

Conexant Systems reported revenues of $245.9 million for its fourth fiscal quarter, within the guidance range communicated at the beginning of the quarter, down 2.3 percent from third quarter fiscal 2006 revenues of $251.6 million, and up 14.4 percent from $214.9 million in the fourth quarter of fiscal 2005. Core gross margins in the fourth quarter of fiscal 2006 increased to 45.8 percent of revenues. Core operating income in the fourth quarter of fiscal 2006 was $20.7 million, compared to third quarter fiscal 2006 core operating income of $25.5 million.

Fiscal 2006 was another year of significant progress for Conexant," said Dwight W. Decker, Conexant chairman and chief executive officer. "Year-over-year revenues increased 34 percent, we achieved our highest-priority goal of delivering 10 percent core operating margins in the third fiscal quarter, two quarters ahead of schedule, and we remained solidly profitable on a core basis exiting the year. We also improved core gross margins as a percent of revenues by more than five points during the year."

Among the highlights, Conexant's Broadband Media Processing business, and its set-top box business, achieved record revenues and have now delivered five quarters of sequential double-digit revenue growth.

Schwarzenegger Forms California Broadband Task Force

California Gov. Arnold Schwarzenegger held a press event to announce a new task force for promoting broadband networking in California. The event highlighted the possibility of telemedicine.

Schwarzenegger signed an executive order designating one state agency -- Business, Transportation & Housing (BT&H) -- as lead coordinator for implementing the state's broadband policy. The agency will create a database linking private broadband companies with state transportation agencies, permitting companies to better coordinate fiber optic installation. It will also establish a pricing policy for private companies paying for "rights-of- way" access to state roads. Previously, charges to lay fiber varied widely--the order sets pricing based on actual costs incurred by the State.

The event was held less than two weeks before the election.

Turin Acquires Assets of White Rock Networks

Turin Networks acquired the product portfolio and the majority of the material assets of White Rock Networks, a provider of next-generation optical transport products for metro networks, for an undisclosed sum. The deal expands Turin Networks' product portfolio and carrier customer base to over 300 customers worldwide.

White Rock Networks' product portfolio consists of the VLX 2020 Optical Transport System, the VLX 2006 Multiservice Access Platform, the VLX 300 and 400 Service Edge Concentrators and the VLXpert EMS.
  • In December 2002, White Rock Networks, a start-up based in Richardson, Texas closed $42 million in fourth-round venture funding for its next-generation optical transport systems for the local metro transport market. White Rock was focused on the Multi-service Provision Platform (MSPP) market as well next-generation SONET. White Rock tool a unique approach to the MSPP problem by breaking it into pieces - modular, stackable product elements. White Rock also featured a software-based control plane that transforms their modular "building-blocks" into a single network element. By that point, White Rock had raised $144 million since its inception in 1999. The new funding was led by Oak Investment Partners, and included all of White Rock's existing major investors: Oak Investment Partners, Mayfield Fund, Meritech Capital, Fremont Communications, Fremont Ventures, Investor AB (through its wholly owned subsidiary, Investor Growth Capital), Hook Partners, Gulf International Bank, and Pacesetter Capital Group. In additional, 3i, a leading international venture capital investment firm, joined the round.

  • White Rock Networks was founded in November 1999 and was headed by Lonnie Martin (previously President of ADC's Business Broadband Group).

Espial IPTV Makes Executive Appointments

Espial, a supplier of IPTV middleware and applications, named Brian Mahony as its new VP of Marketing and Bob Daly as CFO.

Mahony most recently served at Netcentrex (acquired by Commverse). Prior to Netcentrex, Mahony's roles included VP Marketing and Business Development at Tundo Corporation, Director of Business Development and Strategy at Unisphere (acquired by Siemens and Juniper Networks for $740M), and Business Development Manager at Nortel.

Mr. Daly is a Chartered Accountant and previously served as Vice President of Finance for JDS Uniphase. Other roles included CFO for Oprel Technologies and Controller for Cognos Incorporated.

NTT DoCoMo Reports Flat Revenue, Intense Competition

For the six months ended 30-Sept-2006, NTT DoCoMo reported operating revenue of Y2,383 billion, up 0.4% compared to the same period last year, while operating income was Y516 billion, down 7.4% compared to last year, and income before taxes was Y309 billion, down 17.8% compared to a year earlier.

NTT DoCoMo said it plans to increase CAPEX in the second half of its fiscal year in order to reinforce the quality of its FOMA network. Spending will rise to Y910 billion, up Y11 billion from initial plans. The company also plans to introduce more than 20 new handset models to respond to the increasingly fierce competitive environment.
  • In August, NTT DoCoMo launched HSDPA service in metropolitan Tokyo, offering downlink speeds of up to 3.6 Mbps, approximately ten times faster than current FOMA service.

NTT DATA to Sell U.S. Datacenter Business in NJ

NTT DATA will sell its U.S. datacenter service provider business to Quality Technology Services Holding LLC ("QualityTech"), a privately held provider of data center facilities and managed services. Financial terms were not disclosed. NTT DATA said will focus its resources on IT services.

See also