Wednesday, October 24, 2007

Nokia Siemens Networks to Acquire Atrica for Carrier Ethernet

Nokia Siemens Networks will acquire Atrica, a supplier of Carrier Ethernet solutions for Metropolitan Area Networks, for an undisclosed sum. The acquisition will allow Nokia Siemens Networks to offer end-to-end Carrier Ethernet Transport solutions that reduce the cost and complexity of data-optimized transport networks - from access to the core network.

Atrica's product suite consists of its A-8100 Carrier Ethernet Core Switch, its A-4100 Carrier Ethernet Aggregation Switch and its A-2100 Carrier Ethernet Edge Switch, as well as the Atrica Service Platform for Ethernet Networks (ASPEN), an integrated service provisioning and management system. Earlier this year, Atrica introduced its A-1180 Multi-port Carrier Ethernet Demarcation Device, which enables end-to-end service delivery across third-party networks - as well as Atrica-based networks - with QoS control for each individual service.

Atrica has over 40 customers including Orange Business Services, KVH and Optimum LightPath.

Atrica is a privately-held company with headquarters in Santa Clara, California and R&D in Israel. Atrica has approximately 180 employees.

Atrica is the first company to be acquired by Nokia Siemens Networks.

  • Atrica was founded in February 2000 and has raised over $170 million. The company has been funded by industry notables, including 3Com, Vesbridge Partners, GunnAllen Venture Partners, Innovacom (the venture capital subsidiary of France Telecom), JK&B, Investor Growth, AT&T Corporation, Intel Capital, Bezeq, Saturn Venture Partners, and Telia.

Hibernia Offers 40 Gbps Wavelengths from Boston to Halifax

Hibernia Atlantic has begun offering native 40 Gbps capacity over a subsea span between Boston and Halifax, Nova Scotia.

Hibernia Atlantic has deployed Huawei Technologies' optical transmission gear to enable this service. Specifically, Huawei supplied a 192-channel, 40G system; increasing the capacity from 1.9 Tbps to 7.68 Tbps using 40G technology.

Huawei accomplished this upgrade with its internally developed, 40G integrated solution, which includes its patented DRZ/ODB technologies. Huawei's 40G transponder also features automatic electrical dispersion compensation, eliminating the need for DCM modules.
In addition, Anritsu supplied its network performance tester for the deployment test, as well as its 40G SDH/SONET analyzer.

Huawei Deploys IP Base Stations for China Mobile

Huawei Technologies has deployed what is described as the world's first IP-based base station system (IP BSS) commercial network for China Mobile. The installation uses Huawei's next generation base station controller, the BSC6000.

The IP BSS commercial network uses IP to transmit voice and data services avoiding the cost of TDM transmission, while meeting the requirements of increased data transmissions.

Huawei estimates that by adopting IP transmission, an operator's transmission costs can be reduced by 40% while relying on exiting E1 transmission resources.

Comcast Adds 450K Cable Modem Users, 662K VoIP in Q3

Comcast's cable segment revenue increased 11% to $7.4 billion for the third quarter of 2007 as compared to $6.7 billion in the third quarter of 2006. The company attributed the growth to consumer demand for its Comcast Triple Play offering.

Some highlights for Q3:

  • Revenue generating units (RGUs) increased 1.4 million, a decrease from the 1.5 million additions reported in the third quarter of 2006. The company ended Q3 with 55.8 million RGUs, a 13% increase from the 49.4 million reported one year ago.

  • Comcast added 489,000 digital cable customers compared to 559,000 digital cable customers added in the same quarter of 2006. This gives Comcast 14.7 million digital customers or 61% of basic cable subscribers compared to 50% one year ago. The digital cable customer additions in the third quarter of 2007 include 113,000 full digital cable and 376,000 digital starter subscribers.

  • 5.8 million or 40% of digital cable subscribers take advanced services such as digital video recorders (DVR) and high-definition television (HDTV) compared to 4.0 million or 33% one year ago.

  • added 450,000 high-speed Internet subscribers. Penetration is now at 27%. Comcast ended the quarter with 12.9 million high-speed Internet subscribers.

  • added 662,000 Comcast Digital Voice (CDV) customers during the quarter. Penetration has reached 9%. The service is now being marketed to 40 million homes representing 83% of Comcast's footprint. Phone revenue increased 86% to $472 million in the third quarter of 2007 from $253 million in 2006.

  • CAPEX increased 19% to $1.5 billion in the third quarter of 2007 compared to $1.3 billion in the same period a year ago.

Global Crossing Expands VoIP Network in USA, Mexico

Global Crossing announced the extension of its VoIP Local Service to 16 major metropolitan cities in Mexico and nearly 400 additional cities in the United States. The addition of Mexico brings to 21 the total number of countries worldwide where the service is offered. In the U.S., the company expanded availability of VoIP Local Service to nearly 400 additional cities, including Las Vegas, Salt Lake City, and Tucson, bringing that total to more than 1,400 nationwide.

Global Crossing VoIP Local Service is an inbound local service that provides nationwide Direct Inward Dialing/Direct Dial Inward functionality through a single IP interconnection. The service lets customers originate traffic on the public switched telephone network in different countries. Traffic is then converted to VoIP on Global Crossing's network and delivered to the customer's IP network. VoIP Local Service also can eliminate traditional time division multiplexing, private line and foreign exchange service fees by providing a single IP connection to serve multiple markets. The service is delivered over Global Crossing's global, fully meshed MPLS-based network.

Internet2 and Level 3 to Offer Advanced Networking Awards

Level 3 Communications will sponsor a new "Wave of the Future" category as part of the Internet2 Driving Exemplary Applications (IDEA) Awards program.

Open to existing or proposed applications, the Internet2 IDEA awards are designed to showcase projects that apply the latest in advanced networking capabilities to enable transformational progress in research, to enhance teaching and learning, and to potentially increase the impact of next-generation networks around the world.

Through sponsorship provided by Level 3, the winning submission in the "Wave of the Future" category will receive a dedicated, point-to-point optical circuit of up to 10 Gbps on the new Internet2 network infrastructure between two connector sites for a one year period. The circuit will be provided specifically to support and enable the award-winning project.
  • Earlier this month, the Internet2 initiative completed the rollout of its new nationwide network infrastructure, which boasts an initial capacity of 100 Gbps nationwide and bandwidth-on-demand capabilities. Beginning in January 2008, the DCN will enable researchers to provision up to 10 Gbps of dedicated bandwidth on demand. The new infrastructure also enables long-term dedicated point-to-point optical circuits up to 10 Gbps on separate wavelengths as part of the organization's WaveCo service.

  • Level 3 is deploying Infinera's Digital Optical Networking equipment across the dedicated high capacity backbone to enable dynamic optical circuit provisioning for the Internet2 community. Internet2 has also partnered with Ciena Corporation to deploy their CoreDirector Multiservice Switch for switching and sub-wavelength grooming services which allows members to customize their connections from 10 Gbps down to 51 Mbps to meet their institutional networking needs. Internet2 will deploy its current Juniper T640 routers to provide advanced IP capabilities.

Vonage and Verizon Resolve Patent Dispute

Vonage and Verizon announced a settlement in their patent dispute. The terms of the resolution depend on how the Court of Appeals decides Vonage's pending petition for rehearing regarding two of the Verizon patents (the '574 and '711). If Vonage wins rehearing on either the '574 or '711 patent or if the injunction is vacated as to the '574 or '711 patent, Vonage will pay Verizon $80 million. If Vonage does not win rehearing on either the '574 or '711 patent, or if the stay is lifted reinstating the injunction, Vonage will pay Verizon $117.5 million.
  • Earlier this month, Vonage settled its pending patent dispute with Sprint and entered into a licensing arrangement valued at $80 million. The fee includes $35 million for past use of license, $40 million for a fully paid future license, and $5 million in prepayment for services.

Foundry Reports Q3 Sales of $160M, Growing Service Provider Sales

Foundry Networks reported Q3 revenue of $159.5 million, compared to $118.8 million in the third quarter of 2006, and compared to $143.2 million in the second quarter of 2007, an increase of 34.2% and 11.3% respectively. Net income was $27.6 million, or $0.18 per diluted share, compared to net income of $12.2 million, or $0.08 per diluted share, in the third quarter of 2006, and net income of $15.6 million, or $0.10 per diluted share, in the second quarter of 2007.

The company said North American commercial revenue represented 52.5% of total revenue while sales to Europe, the Middle East and Africa (EMEA) represented 12.2% of total revenue. Both geographies were down slightly from the prior quarter due to normal summer seasonality. Sales to Japan represented 5.4% of total revenue, a decrease from 5.7% of total revenue in the second quarter of 2007 but a slight increase in terms of absolute dollars. Sales to the U.S. Federal Government were seasonally strong, representing 22% of total revenue, an increase of over 100% from the second quarter of 2007.

Within the service provider market, Foundry Networks began shipping and recognizing revenue during the third quarter from its 32-slot routers, the XMR 32000 and MLX-32. The delivery of this new platform helped the overall router revenue grow to 17% of total revenue, a 40% increase from the second quarter of 2007. Overall, service provider revenue grew to approximately 25% of total revenue in the quarter.

Ikanos Posts Q3 Revenue of $27.3 million

Ikanos Communications reported Q3 revenue of $27.3 million compared with revenue of $25.7 million for the second quarter of 2007 and revenue of $36.7 million for the third quarter of 2006. GAAP net loss for the third quarter of 2007 was $13.0 million, or $0.45 per share, on 28.7 million weighted average shares and includes a charge of $3.5 million related primarily to the write-off of design tools and severance expenses. This compares with a net loss of $7.2 million, or $0.25 per share, on 28.4 million weighted average shares in the second quarter of fiscal 2007 and with a net loss of $3.6 million, or $0.13 per share, on 27.4 million weighted average shares in the third quarter of 2006.

"Solid demand from European and Japanese original equipment manufacturers (OEMs) resulted in a significant sequential increase in access port shipments," said Michael A. Ricci, Ikanos' president and CEO. "To accelerate our timeline towards profitable growth, we have reduced our expense structure going forward through an executive restructuring and outsourcing physical backend design. By taking these actions, we can focus on more efficiently delivering leading-edge broadband solutions to our customers worldwide."