Thursday, July 31, 2008

FCC Rules Against Comcast in Net Neutrality Case

The FCC ruled that Comcast's management of its broadband Internet networks contravenes federal policies that protect the vibrant and open nature of the Internet. Specifically, the FCC concluded that by monitoring the content of its customers' traffic and selectively blocking certain peer-to-peer connections, Comcast unduly interfered with Internet users' right to access the lawful Internet content and to use the applications of their choice.

The issue was first brought to light by Comcast subscribers who noticed that they had problems using peer-to-
peer applications, such as BitTorrent, over their Comcast broadband connections. The FCC noted that when challenged on the issue Comcast recast its public position several times. Furthermore, evidence suggests that Comcast's practice of blocking traffic has been widespread and that it interferes with peer-to-peer traffic regardless of the level of overall network congestion at the time and regardless of the time of day.

The FCC also noted that Comcast has an anticompetitive motive to interfere with customers' use of peer-to-peer applications. Such applications, including those relying on BitTorrent, provide Internet users with the opportunity to view high quality video that they might otherwise watch (and pay for) on cable television. Such video distribution poses a potential competitive threat to Comcast's video-on-demand ("VOD") service.

The FCC said it intends to exercise its authority to oversee federal Internet policy in adjudicating this and other disputes regarding discriminatory network management practices with dispatch, and its commitment in retaining jurisdiction over this
matter to ensure compliance with a proscribed plan to bring Comcast's discriminatory conduct to an end. Under the plan, within 30 days of release of the Order Comcast must:

  • Disclose the details of its discriminatory network management practices to the

  • Submit a compliance plan describing how it intends to stop these discriminatory
    management practices by the end of the year

  • Disclose to customers and the Commission the network management practices that
    will replace current practices

To the extent that Comcast fails to comply with the steps set forth in the Order, interim injunctive relief automatically will take effect requiring Comcast to suspend its discriminatory network management practices and the matter will be set for hearing.

FCC Chairman Kevin Martin stated: "The specific practice Comcast was engaging in has been roundly criticized and not defended by a single other broadband provider. If we aren't going to stop a company that is looking inside its subscribers' communications (reading the "packets" they send), blocking that communication when it uses a particular application regardless of whether there is congestion on the network, hiding what it is doing by making consumers think the problem is their own, and lying about it to the public, what would we stop? Failure to act here would have reasonably led to the
conclusion that new legislation and rules are necessary."

In response, Comcast issued the following statement:

"We are gratified that the Commission did not find any conduct by Comcast that justified a fine and that the deadline established in the order is the same self-imposed deadline that we announced four months ago. On the other hand, we are disappointed in the Commission's divided conclusion because we believe that our network management choices were reasonable, wholly consistent with industry practices and that we did not block access to Web sites or online applications, including peer-to-peer services. We also believe that the Commission's order raises significant due process concerns and a variety of substantive legal questions. We are considering all our legal options and are disappointed that the commission rejected our attempts to settle this issue without further delays."

Huawei Shows Lower Energy Base Stations

Huawei Technologies is showcasing its "green" CDMA end-to-end solution. Huawei proposes that by adopting the latest 4th Generation Base Transceiver Stations (BTS' s) and ALL IP technology into the CDMA development area and by using "green" BTS' s, core networks with multi-network convergence design, green site accessory facilities solutions, and environment protecting energy solutions, operators are able to reduce CO2 emissions and the environmental impact of their CDMA systems. The company claims its CDMA solution uses 30% fewer BTS sites.

Sky Dayton to Leave Earthlink's Board

Sky Dayton will retire from Earthlink's Board of Directors in October. Mr. Dayton is EarthLink's founder and served on the Board of Directors of EarthLink (and its predecessor EarthLink Network) since 1994.

Brightcove Expands in Japan, Partners on Internet Olympic Coverage

Brightcove has appointed Hisashige Hashimoto as general manager of its Japan-based subsidiary.

Brightcove also announced that Web TV distribution giant, PRESENTCAST, has selected its Internet video platform for, the exclusive online video portal in Japan for coverage of the 2008 Beijing Olympic Games. is backed by all of Japan's commercial television broadcasters.

Mr. Hashimoto joins Brightcove after two years as president and chief executive officer of Paygent, a mobile auction escrow service he launched in 2006 and grew to 2,000 customers before leaving in 2008. Prior to Paygent, Mr. Hashimoto worked in three different senior management positions for Macromedia KK, helping lead the Education, Channel Marketing, and Platform Product Marketing divisions. Before Macromedia KK, Mr. Hashimoto spent 14 years with Mitsui & Co., Ltd.http://www.brightcove.com

Wednesday, July 30, 2008

Orange Reaches 174 Million Accesses

France Telecom group's consolidated revenues for the first half 2008 rose to EUR 26.304 billion, a 3.9% increase on a comparable basis following a 3.6% increase in the second half of 2007. This improvement concerned mature Western European markets, which were up 3.0% on a comparable basis. Revenues in developing markets were up by 11.2% in the first half 2008. On an historical basis, growth in the first half 2008 was 1.5%, including the unfavourable impact of exchange rates (-€336 million), the disposal of the mobile and Internet operations of Orange Netherlands, and the acquisition of in Spain on 31 July 2007.

For Q2 , France Telecom's consolidated revenues were €13.276 billion, a 4.1% increase on a comparable basis, compared with a 3.7% increase in the first quarter. Growth from mature Western European markets continued to improve, rising 3.4% in the second quarter 2008 compared with 2.5% in the first quarter.

Some highlights:

  • Personal Communication Services saw revenues climb 7.3% in the quarter on a comparable basis, higher than the 6.8% growth achieved in the first quarter, also on a comparable basis. The improvement in the second quarter was primarily related to strong growth in contract customers in France and the United Kingdom. At the same time, Poland and the emerging markets continued their steady growth, despite the impact of lower prices.

  • The Group had 113.8 million PCS (mobile) customers at 30 June 2008, excluding MVNOs, up 13.2% year on year on a comparable basis (13.3 million customers added).

  • The number of mobile broadband customers nearly doubled in one year to 21.0 million at 30 June 2008 (of which 9.0 million in France), compared with 10.8 million at 30 June 2007 (of which 5.2 million in France).

  • The MVNO customer base in Europe rose to 2.3 million at 30 June 2008 (of which 1.6 million in France), compared with 1.4 million one year earlier on a comparable basis (of which 1.1 million in France).

  • Home Communication Services (HCS) posted a 0.7% increase in revenues on a comparable basis, up slightly from the first quarter which itself was stable compared to the previous year. The continuous growth of ADSL broadband benefited Home Communication Services, particularly in France, rising to 12.2 million customers in Europe at 30 June 2008, with more than 500,000 new customers added in the first half 2008.

  • Revenues from ADSL broadband services4, up 29%, very largely offset the downward trend in traditional telephone services. ADSL broadband revenues represented 24% of total HCS revenues in the first half of 2008, compared with 19% in the first half of 2007.

  • The number of Liveboxes rose 42% in one year, with 7.1 million units leased in Europe at 30 June 2008, up from 5.0 million at 30 June 2007 on a comparable basis.

  • There were 5.7 million VoIP customers at 30 June 2008, up from 3.5 million at 30 June 2007, an increase of 61% year on year (figures on a comparable basis).

  • Revenues from traditional calling services dropped 17.9% on both an historical basis and a comparable basis, due to the rapid growth of Voice over IP services.

  • ADSL digital TV services (IPTV) had a total of 1.54 million subscribers in Europe at 30 June 2008, compared with 872,000 one year earlier, a 76% increase in one year.

  • Enterprise Communication Services revenues were up 3.9% in the second quarter 2008, after rising 2.0% in the first quarter (on a comparable basis). This reflects a gradual slowing of the downward trend that has characterized traditional telephony and data services. At the same time, sales of ICT services2 continued to grow steadily and were up 11.3% in the first half 2008, outperforming the market.

  • Capital expenditure on tangible and intangible assets (CAPEX) rose to €3.134 billion in the first half of 2008, a 5.6% increase on an historical basis and a 5.2% increase on a comparable basis.

Telefónica Group Now Serving 245 million Access Points

Telefónica reported financial results in line with the growth targets for both the Group as a whole and for the different geographic areas (Spain, rest of Europe, and Latin America), leaving it on track to meet the financial targets announced for 2008. Telefónica achieved overall revenues of EUR 28.149billion in the first six months of 2008, for a year-on-year increase of 1.2%. Changes in the consolidation perimeter subtract 2.8 percentage points to revenue growth, while the impact of foreign exchange rates reduced the growth by another 2.8 percentage points. Year-on-year revenue growth was 1.2% in the April-June 2008 period.

Some highlights:

  • Total accesses (wireless + wireline across all regions) rose 15.2% compared to June 2007 to 245.1 million, due to the high commercial activity recorded across markets. This growth was underpinned by the increase in wireless (+19%), broadband (+25.1%) and pay TV (+57.4%) accesses.

  • By type of access, Telefónica Group's mobile accesses stood close to 182.7 million at the end of June, with around 15 million additional customers (+54.3% year-on-year) in the six-month period. The main contributors were Brazil (nearly 7 million customers, around 3 million stripping out the incorporation of Telemig in April 2008), Mexico (1.6 million), Peru (1.3 million) and Germany (1.1 million).

  • Retail Internet broadband accesses stood at close to 11.5 million, with a year-on-year rise of 25.1%, driven by the growing penetration of voice, ADSL and Pay TV bundles. Accesses in Spain reached over 5 million (+18.3% year-on-year), 5.5 million in Latin America (+26.1% year-on-year), and 917,000 in Europe (+69.7% year-on-year). Net adds in the first half of 2008 totaled 1.1 million accesses, of which 390,923 were in Spain, 489,981 in Latin America and 247,026 in Europe.

  • Pay TV accesses stood at over 2 million at end of the first half of the year, up 57.4% on the prior year, due to net adds of close to 280,000 accesses in the first half (+25% compared to the same period of 2007). The Company currently offers Pay TV services in Spain, the Czech Republic, Peru, Chile, Colombia and Brazil.


Veraz Announces Restructuring

Veraz Networks announced a restructuring that involves reducing its overall headcount and streamlining operations. The company has reduced its workforce by approximately 160 employees and contractors and consolidated certain operations across all organizations, bringing worldwide headcount to approximately 300. The company said these initiatives, which will significantly lower Veraz's break-even point, will result in a third quarter pre-tax restructuring charge, excluding stock-based compensation, of approximately $1.2 million to $1.5 million consisting primarily of severance costs, equipment write-downs and facilities consolidation.

Motorola Posts Q2 Sales of $8.1 billion, Ahead of Expectations

Motorola exceeded market expectations by reporting Q2 sales of $8.1 billion and GAAP net earnings of $4 million. The company had positive operating cash flow of $204 million and ended the quarter with a net cash* position of $3.6 billion and a total cash position of $7.8 billion.

"Motorola's Home and Networks Mobility and Enterprise Mobility Solutions segments delivered strong results in the second quarter, driven by sales growth and operating margin expansion. These segments are well positioned to continue generating year-over-year sales and margin growth during the second half," said Greg Brown, Motorola president and chief executive officer.

Some highlights:

  • Mobile Devices segment sales were $3.3 billion, down 22 percent compared to the year-ago quarter. The segment reported an operating loss of $346 million, compared to an operating loss of $332 million in the year-ago quarter.

  • During Q2, Motorola shipped 28.1 million handsets, and maintained its share of the global handset market

  • Home and Networks Mobility segment sales were $2.7 billion, up 7 percent compared to the year-ago quarter. Operating earnings were $245 million, which represents an increase of 28 percent as compared to operating earnings of $191 million in the year-ago quarter.

  • Motorola experienced record sales in Home, driven by shipments of 4.9 million digital entertainment devices, due to continued strong demand for HD, HD/DVR and IPTV devices

  • Consumer demand for HD content continued to drive the uptake of MPEG-4. This quarter we added DirectTV, HBO LatAM and Starz to the lineup of programmers and service providers transitioning from MPEG-2

  • DOCSIS 3.0 momentum started to build with certification for multiple Motorola cable modems, bronze qualification for the BSR 64000 cable modem termination system edge route, as well as customer deployment with J-Com in Japan

  • Motorola now has 19 contracts for commercial WiMAX systems in 16 countries.

  • Enterprise Mobility Solutions segment sales were $2.0 billion, up 6 percent compared to the year-ago quarter. Operating earnings increased to $377 million, which represents an increase of 24 percent as compared to operating earnings of $303 million in the year-ago quarter.

NZ's TelstraClear Selects Juniper's E320

New Zealand's TelstraClear has upgraded its broadband network capacity and enhanced its service delivery capabilities with Juniper Networks E320 Broadband Services Routers and C-series Controllers. TelstraClear is using the C-series Controllers to manage service provisioning over a wide array of access types, including cable and retail and wholesale DSL.

Juniper said the upgrade ensures adequate capacity to address TelstraClear's fast-growing subscriber base and to support its increasingly rich mix of residential broadband access, business services and other advanced IP applications. The E320 router supports high subscriber density, high system capacity and high-density Gigabit Ethernet and 10 Gigabit Ethernet interfaces,.

Telekom Malaysia Expands Optical Net with Ericsson

Telekom Malaysia awarded a two-year contract to Ericsson for the nationwide expansion of its optical network. Specifically, the contract is for the supply of SDH and DWDM equipment, installation services and comprehensive maintenance. Deployment started in June 2008. Financial terms were not disclosed.

The included products for high-speed transport are the Marconi-branded Optical Multiservice (OMS) and MHL 3000 WDM product families.

Alcatel-Lucent Wins Submarine Cable Network Bid

Alcatel-Lucent was awarded a contract to deploy the Atlantic-Mediterranean segment of the 15,000 km (9,000 mile), Europe India Gateway (EIG) submarine cable system.

The planned Europe India Gateway (EIG) will connect three continents at a cost of more than US$700 million. The 15,000-kilometer (9,000-mile) cable network system is expected to be completed in 2010. Landings are planned in the United Kingdom, Portugal, Gibraltar, Morocco, Monaco, France, Libya, Egypt, Saudi Arabia, Djibouti, Oman, United Arab Emirates, and India. In addition to complementing existing high bandwidth cable systems in the region, the EIG cable system will provide much needed diversity for broadband traffic currently relying largely on traditional routes from Europe to India. Capacity is expected to scale to 3.84 Tbps.

Alcatel-Lucent will provide complete turnkey work for its portion of the EIG system. Alcatel-Lucent will have responsibility for the design, manufacture, installation and commissioning of the Atlantic-Mediterranean submarine segment, which spans 7,100 km. The company will also use the 1678 Metro Core Connect, and deploy its latest generation 1626 Light Manager DWDM (dense wavelength division multiplexing) transmission equipment to provide seamless connectivity across the two terrestrial links in the UK and Egypt at 40 Gbps.http://www.alcatel-lucent.com
  • In February 2008, a consortium of nine leading global telecom carriers met in Rome to sign a formal Construction and Maintenance Agreement for a new high-capacity fiber-optic submarine cable that will stretch from India to France via the Middle East. The cable system, known as I-ME-WE (India, Middle East, Western Europe) is the fifth in the series of similar cable systems which includes the SEA-ME-WE series. Parties to the agreement include Bharti Airtel (India), Etisalat (UAE), France Telecom (France), Ogero (Lebanon), PTCL (Pakistan), STC (Saudi Arabia), TE (Egypt), TIS Sparkle (Italy) and VSNL (India). The I-ME-WE cable system is being designed to provide up to 3.84 Tbps and span almost 14,000 kilometers. The companies hope to have the cable in service by late 2009.

Qualcomm Achieves 20 Mbps HSPA+ Data Call

Qualcomm completed the world's first data call using High-Speed Packet Access Plus (HSPA+) network technology. The call achieved a data transfer rate of more than 20 Mbps in a 5 MHz channel. The call was completed using Qualcomm's MDM8200 product, the industry's first chipset solution for HSPA+.

HSPA+, also known as HSPA Evolved, is designed to enhance the mobile broadband user experience and enable a wide range of services. Qualcomm estimates HSPA+ will allow operators to double the data and triple the voice capacity of their networks compared to current HSPA deployments. The latest evolution of WCDMA technology, HSPA+ Release 7, will offer downlink data transfer rates of up to 28 Mbps and uplink rates of up to 11 Mbps. Future HSPA+ releases are expected to support downlink peak rates of 42-84 Mbps and uplink peak rates of 23 Mbps by using a variety of advanced techniques, including multiple carriers for transferring data. HSPA+ is backward compatible with prior generations of WCDMA and does not require new spectrum for deployment. Operators can leverage their existing network and spectrum resources to offer next-generation wireless bandwidth and performance.

"Today's call represents another milestone for Qualcomm in the evolution of the HSPA road map," said Alex Katouzian, vice president of product management, Qualcomm CDMA Technologies. "End users will enjoy quicker connections to the Internet with HSPA+ while network operators will appreciate the opportunity to offer more services to their subscribers."

The technology delivers higher peak and average data rates, lower latency, better response times, longer battery life and an enhanced, always-on experience compared to the current generation of mobile networks.

Qualcomm's MDM8200 chipset is currently sampling. It supports deployments in existing frequency bands, as well as in the 900 MHz band and the 2.5 GHz IMT-2000 extension band.

Allot Cites Deployment by Global Tier 1 Operator

Allot Communications announced the deployment of its Service Gateway Omega by a global Tier 1 operator, which currently services more than 20 million subscribers. The customer name was not disclosed.

"The increasing adoption of Allot solutions by mobile operators worldwide is a direct outcome of the exploding growth of data bandwidth and services over mobile networks and their emergence as an additional platform to deliver broadband services," commented Allot CEO and president, Rami Hadar. "The Service Gateway, equipped with Subscriber Management and Quota Management capabilities, facilitates the shift towards offering tiered and Value Added services."

BT Reaches 13.0 Million Broadband End Users

Citing growth in managed solutions, broadband and convergence revenue, BT reported quarterly revenue of 5,177 million pounds, up 3 percent. EBITDA before specific items and leaver costs increased by 1 percent year on year. Earnings per share before specific items and leaver costs increased by 2 percent to 6.1 pence.

Some highlights:

  • BT reached 13.0 million wholesale broadband connections (DSL and LLU) at June 30, 2008, including 4.8 million local loop unbundled lines. This represents an increase of 1.8 million wholesale broadband connections year on year. There were 338,000 net additional broadband connections in the quarter.

  • BT remain the UK's number one retail broadband provider with a customer base of 4.5 million at June 30, 2008, which represents a market share of 35 percent.

  • Managed solutions revenue grew by 21 per cent to 1,408 million pounds, and broadband and convergence revenue increased by 4 per cent to 640 million pounds. Managed solutions includes revenue from our networked IT services, managed network solutions and MPLS. Broadband and convergence revenue includes revenue from broadband, LLU, mobility and convergence solutions.

  • The growth in managed solutions was mainly due to 17 per cent growth in networked IT services and 36 per cent growth in MPLS revenue. This revenue growth in the quarter was partially offset by a 6 per cent decline in revenue from calls and lines to 1,647 million pounds, together with a 7 per cent decline in revenue from transit, conveyance, interconnect circuits, WLR, global carrier and other wholesale products to 827 million pounds.

  • Revenue from major corporate customers increased by 12 per cent to 1,961 million pounds, reflecting the increased take up of our networked IT services, the impact of foreign exchange and recent acquisitions by BT Global Services.

  • Revenue from our business customers (comprising smaller and medium sized UK businesses) grew by 5 per cent to 661 million pounds, continuing the recent trend.

  • Revenue from consumer customer segments of 1,228 million pounds was broadly flat year on year, with the impact of call package price reductions and a decline in calls revenue being offset by growth in broadband revenue. The 12 month rolling average revenue per consumer household increased by 4 pounds in the quarter to 278 pounds, reflecting the increasing number of customers taking multiple services from BT. Increased broadband revenue and the growth of value added propositions per household, have more than offset the lower call package prices in the quarter.

  • Wholesale (UK and global carrier) customer revenue decreased by 7 per cent to 1,320 million pounds as a result of the impact of volume and price reductions on DSL broadband and the decrease in low margin transit revenue and conveyance volumes, which was partially offset by growth in managed network solutions revenue, migrations to local loop unbundling (LLU) arrangements, and growth in global carrier revenue of 19 per cent.

AT&T Announces New Managed Services Contract

AT&T announced a data services contract with American Nuclear Insurers (ANI), a joint underwriting association that provides liability insurance for nuclear facilities throughout the United States. Under the terms of the contract, AT&T will serve as ANI's primary data services provider, delivering AT&T Secure E-mail Gateway service and AT&T Web Security to the company's headquarters. Financial terms were not disclosed.

Cablevision Surpasses 2 Million Optimum Voice Lines

Cablevision Systems, which serves the NYC metropolitan area, has surpassed 2 million phone lines in service -- a company milestone. Cablevision offers small and medium-sized business customers up to 12 lines of Optimum Voice, up to four lines for residential customers.

Extreme Networks Posts Revenue of $98.3 Million, up 13% YoY

Extreme Networks reported quarterly net revenue of $98.3 million, compared to $87.1 million in the year-ago quarter, a 13% increase. Net income on a GAAP basis was $0.8 million or $0.01 per diluted share, compared to a net loss of $5.0 million or a loss of $0.04 per diluted share in the year-ago quarter.

"With revenue up 13% for the quarter and 6% for the year, we continue to gain momentum with our channels and end users," said Mark Canepa, president and CEO of Extreme Networks.

Tuesday, July 29, 2008

ITU Appoints BT Exec to Chair Climate Change Group

BT's Dr Dave Faulkner has been selected by the International Telecommunication Union (ITU) to chair a new Focus Group examining the impact of information and communication technology (ICT) on climate change.
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The new group will focus in particular on the reduction of ICT emissions and how ICTs can assist in cutting emissions in other industry sectors such as energy, transportation and buildings. The ICT sector is seen as a major part of the solution to climate change with the growth of teleconferencing and other e-communication services reducing the need for physical journeys and international travel.

"It is crucial that the ICT industry both acknowledges and seeks to reduce its role in climate change. Communications technologies can play a vital role in reducing carbon emissions worldwide. Developing global standards for reducing the energy requirements of networks and equipment will help make ICT an even more powerful tool for businesses to use in managing their greenhouse gas emissions and meeting their climate change targets," stated Dr. Faulkner.

Qwest Now Offering Verizon Wireless Services

Qwest Communications is now offering Verizon Wireless services to all new residential and business customers in its residential service area. The companies announced a five-year agent earlier this year.

Corning Announces $1 Billion Stock Repurchase Plan

Corning's board of directors and executive committee have approved the repurchase of up to $1 billion of common stock between now and the end of 2009. This is in addition to last year's $500 million repurchase authorization of which $125 million remains.

Separately, Corning reported Q2 sales of $1.69 billion, up 19% year over year. Earnings per share were $2.01, including a $2.429 billion net special gain primarily related to the release of U.S. deferred tax asset valuation allowances.

Telecommunications segment sales in the second quarter were $477 million, a 13% sequential increase and a 9% increase over a year ago. The increase was driven by strong fiber-to-the-premises demand as well as overall strength in optical fiber sales.

Tiscali International Network To Expand via Equinix's European Centers

Tiscali International Network (TINet), which specializes in wholesale IP-MPLS market, selected Equinix as a strategic partner for the expansionof its European network.

The expansion will occur initially from Equinix's Frankfurt and Paris Internet Business Exchange (IBX) data centers.

TINet offers IP Transit, MPLS lines and long distance Ethernet services to major service providers in North America, Hong Kong, Singapore and across Europe. TINet has an extensive network of close to 100 IP/MPLS PoPs.http://www.equinix.com

Crescendo Raises $9.5 Million for Web Application Acceleration

Crescendo Networks, a start-up based in Israel, secured $9.5 million in third round funding for its web application acceleration solutions. Crescendo Networks features a multi-tier application architecture that improves the operation of existing application infrastructure. The company was founded in 2002.

The Challenge Fund -- Etgar II L.P. participated in the current financing and joined current investors, Evergreen Venture Partners, Apax Partners, Magma Venture Partners, StageOne Ventures and Convergent Capital. The company has now raised $36.2 million to date.

Internet2 to Provide Dedicated 10Gbps to GENI Effort

Internet2 has agreed tol donate a 10 Gbps dedicated circuit on its national backbone to support the GENI Project Office (GPO), located at BBN, and its subcontractors as they build and test prototypes of the GENI system. GENI subcontractors and developers will be able to access the circuit at every connection point on the network to enable nationwide collaboration on GENI prototypes.

GENI is envisioned as a national data communications laboratory, supporting experiments on a wide variety of advanced research in communications, networking, distributed systems, cyber-security, networked services, and applications. It is sponsored by the National Science Foundation.

BBN is currently negotiating with potential subcontractors who responded to the GPO's solicitation earlier this year and expects to announce the subcontracts shortly.http://www.geni.net
  • The Global Environment for Network Innovations (GENI), a project managed by BBN Technologies, is funded by grants from the US National Science Foundation.

Australia's Foxtel Selects NDS to Power Quad Tuner HD DVR

FOXTEL, which delivers subscription TV via cable and satellite to more than 1.5 million homes in Australia, has selected NDS XTV DVR technology to power its new FOXTEL iQ2 High Definition quad tuner DVR. NDS has also developed a next-generation EPG for the FOXTEL iQ2 and carried out the systems integration for the launch of FOXTEL's HD services.

NDS XTV technology allows subscribers to pause, record, play back, rewind and fast forward their TV programs for viewing when they choose.

Verizon Business Wins Mobile Managed Service Bid

Verizon Business was awarded a new managed services contract to help the U.S. Department of Interior manage and track the expenses for more than 22,000 mobile devices. Under the two-year deal, worth up to $15 million if all three additional one-year optional extensions are exercised, Verizon Business will provide expense-management services for mobile phones, personal digital assistants and other wireless devices used by the Interior Department, which has eight bureaus nationwide. The bureaus are: the National Park Service, the U.S. Fish and Wildlife Service, the Bureau of Indian Affairs, the Bureau of Land Management, the Office of Surface Mining, the Minerals Management Service, the U.S. Geological Survey and the Bureau of Reclamation.httpp://

Harris Stratex Networks to Restate Financials, Trim Expenses

Harris Stratex Networks will need to restate prior period financial statements. The company also announced that the earnings release for the fourth quarter of fiscal 2008, which ended June 27, 2008, will be rescheduled.

The company noted strong revenue of approximately $188 million for the quarter. Total revenue for the year is expected to increase by approximately 10 percent compared to previously reported combined company results for fiscal 2007. All three business segments -- North America Microwave, International Microwave and Network Operations -- generated increased revenues in fiscal 2008 compared with fiscal 2007.

The company also reported record booking levels in the fourth quarter with a 1.6 book-to-bill ratio. Increased orders came from Africa, Europe, Middle East and Russia as well as North America. Demand for the company's Eclipse product line was particularly strong when compared with prior periods.

However, expense levels in the quarter increased by approximately $13 million to $14 million compared with previous estimates, as a result of higher orders-based sales compensation expense, increased allowance for doubtful accounts charges, project charges, and outside professional services. As a result, non-GAAP earnings per share for fiscal 2008 will not meet the company's previously announced target of $0.82 per diluted share.

Harris Stratex Networks also stated that it continues to focus on the acceleration of the transition from higher cost legacy products to lower cost next-generation IP-based technologies. This transition, which is underway at a pace faster than originally contemplated at the time of the merger, resulted in a charge of $11 million in the fourth quarter for integration related inventory impairment of raw materials and finished goods for some of the legacy products.

"The company achieved significant top line growth in all segments in fiscal 2008, and our cash position has remained strong in the second half of the year," said Harald Braun, President and Chief Executive Officer of Harris Stratex Networks. "While the additional expenses incurred in the fourth quarter delayed the expansion of our earnings, the company is well-positioned for achievement of our growth objectives as we enter the new fiscal year. The company has added customers, achieved meaningful top line growth, and developed a significantly enhanced foundation for long-term competitiveness. We must, however, continue to take action to reduce costs and expenses in the business through increased product outsourcing activities and process related restructuring actions at certain global locations. This will have associated costs in order to implement, and we expect additional restructuring and integration charges to be incurred in fiscal 2009."

ARRIS Posts Q2 Revenues of $281.1 million

ARRIS reported Q2 revenues of $281.1 million, an increase of $7.6 million or 2.8% , as compared to first quarter revenues of $273.5 million. Second quarter 2008 gross margin was $92.9 million, or 33.0%, as compared to $85.2, or 31.2%, in the first quarter 2008 and $72.4 million, or 28.6%, in the second quarter 2007. Order backlog increased to $206.0 million at the end of the second quarter as compared to $147.0 million at the end of the first quarter. Book-to-bill ratio in the second quarter was 1.21. GAAP net income in the second quarter 2008 was $0.08 per diluted share, as compared to $0.21 per diluted share for the second quarter 2007.

Telecom Liechtenstein Deploys VDSL2 with Ericsson

Telecom Liechtenstein has selected Ericsson to upgrade and expand its ADSL network with VDSL2 technology. Ericsson will also provide support over the next three years. The deal will bring high-speed broadband to Telecom Liechtenstein subscribers across the country. Financial terms were not disclosed.

Comcast Revenue Rises to $8.6 billion, up 11%

Comcast reported Q2 revenue of $8.6 billion, an increase of 11% of the same period last year. Operating Income increased 19% to $1.8 billion. This growth was due to solid operating results at Comcast Cable and in the Programming segment, as well as the positive impact of cable acquisitions.

"We delivered solid results in the second quarter of 2008, highlighting the strength of our businesses even in a challenging economic environment. We continue to manage the business for profitable growth, resulting in healthy revenue, operating cash flow, earning per share, and free cash flow generation," stated Brian L. Roberts, Chairman and CEO of Comcast.

Some highlights for the quarter:

  • Basic video subscribers declined 138,000 or 0.6% during the second quarter.

  • Added 320,000 digital cable subscribers during the second quarter - 67% or 16.3 million video subscribers have digital service.

  • 7.0 million or 43% of digital cable subscribers have advanced services such as digital video recorders (DVR) and/or high-definition television service (HDTV).

  • Video revenue increased 3% to $4.7 billion in the second quarter of 2008 from $4.6 billion in 2007. The revenue increase reflects price increases for video services and growth in digital video customers, offset in part by an increasing number of customers in bundles and promotional offers, as well as a decline in basic video customers.

  • Basic cable subscribers decreased by 138,000 to 24.6 million during the seasonally-weak second quarter. This compares to a 101,000 subscriber decline in the second quarter of 2007. Year to date through June 30, 2008, basic subscribers decreased 195,000.

  • Comcast added 320,000 digital cable customers in the second quarter of 2008, below the 823,000 digital cable customers added in the same period one year ago. This deceleration was anticipated and reflects the significant deployment of digital boxes in the second quarter of 2007 in advance of a July 1st regulatory deadline. Year to date through June 30, 2008, Comcast added 814,000 digital cable customers. PPV revenue decreased 3% in the second quarter of 2008 primarily reflecting the absence of 2 major live events that contributed approximately $33 million to last year's second quarter. In the six months ended June 30, 2008, PPV revenue grew 9% compared to the same period in 2007.

  • Added 278,000 high-speed Internet subscribers during the second quarter -- penetration reached 29% of homes passed or 14.4 million customers.

  • High-speed Internet revenue increased 10% to $1.8 billion in the second quarter of 2008 from $1.6 billion in 2007 reflecting a 12% increase in subscribers and a 3% decline in average monthly revenue per subscriber to $42.01, reflecting the impact of additional bundling and the recent introduction of new offers and speed tiers.

  • Added 555,000 Comcast Digital Voice (CDV) customers during the second quarter -- penetration reached 12.5% of homes passed or 5.6 million customers.

  • Phone revenue increased 50% from $425 million to $640 million in the second quarter of 2008, reflecting significant growth in CDV subscribers and a decrease in average revenue per subscriber to $39.48, resulting from an increase in the number of customers receiving service as part of a promotional offer or in a new product package. The increase in CDV revenue was also partially offset by a $64 million or 96% decline in circuit-switched phone revenue as Comcast exits that product offering.

One Minute Video: What is E-Line?

One Minute Video presented by Dr. Hans-Juergen Schmidtke -- What is E-Line?

Jargon Buster

Monday, July 28, 2008

ST-NXP Wireless to Begin Operations

NXP -- the independent semiconductor company founded by Philips -- and STMicroelectronics announced the closing of the deal bringing together key wireless operations of both companies into ST-NXP Wireless, a deal they announced on April 10th, 2008. At the closing, STMicroelectronics took an 80% stake in the joint venture and contributed $1.55 billion to NXP, including a control premium. The new organization will start with a cash balance of about $350 million.

The joint venture launches as a solid top-three industry player with a complete wireless product and technology portfolio and as a leading supplier to major handset manufacturers who together ship more than 80% of all handsets.

"The wireless industry is undergoing a major change. Semiconductor companies are coming to play an ever more important role, contributing an ever larger share of the product value chain to handset makers, who expect us to deliver leading-edge solutions across the full spectrum of mobile applications," said Alain Dutheil, Chief Executive Officer of ST-NXP Wireless.

Hitachi and Airvana Enter Development Agreement for CDMA Femtocells

Airvana announced an agreement with Hitachi Communication Technologies to create and deliver customized versions of Airvana Femtocell products for the Japanese market. The solution will inter-work with Hitachi Com core network products.

Airvana's contribution to the solution includes its HubBub CDMA femtocell, which supports both 1x-RTT and EV-DO services; its Universal Access Gateway, a carrier-class femtocell network gateway; and its Femtocell Service Manager, a scalable auto-configuration and remote management system. Hitachi Com brings its carrier-grade Femtocell Convergence Server that allows operators to connect femtocells to an existing mobile switching core, leveraging features and supplementary services that operators have developed over the years to provide service parity between the macro-cellular and femto-cellular networks.

MRV Posts Revenue of $148 Million, up 45% YoY

MRV COMMUNICATIONS reported Q2 revenue of $147.6 million, above previously stated guidance and an increase of 45% over revenue of $102 million in the second quarter of 2007. Strong growth was driven by a 28% increase in the network equipment segment, a 17% increase in the network integration segment and 112% in the optical components segment. Revenue for the six months ended June 30, 2008 was $273.2 million an, increase of 43% from the six months ended June 30, 2007.

MRV said its Network Equipment segment posted the strongest growth in recent history and its best quarter ever with $33.6 million in revenue, compared with $26.4 million in the same quarter of the previous year. For the quarter ended June 30, 2008, MRV Network Integration reported $61.6 million in revenue and Optical Components reported $56.2 million in revenue.

"We are very pleased with our achievement of obtaining significant growth while improving the health of our operational structure," commented Noam Lotan, President and Chief Executive Officer of MRV. "Growth was driven by both our fiber optic group and strong growth for our network equipment division, which traditionally has been our higher margin business segment. We have an innovative product roadmap specifically focused on carrier access and aggregation, packet optical transport and wireless backhaul, which is clearly supporting our mission and contributing to our success."

Vonage Names Former Cingular Exec as CEO

Vonage has appointed Marc Lefar as its new CEO, replacing interim CEO Jeffrey Citron, who had assumed the additional role in April of 2007. Citron will assume the role of non-executive Chairman of the Board and serve as a consultant on long-term strategy. Lefar previously served as Chief Marketing Officer of Cingular Wireless, (now AT&T Mobility). After leaving Cingular, Lefar founded Marketing Insights, a technology and media consultancy. Prior to joining Cingular, Lefar was Executive Vice President, Marketing and Value-Added Services at Cable & Wireless Global.

BT Acquires Ribbit for Telco 2.0 Platform

BT has acquired Ribbit Corporation, a Silicon Valley-based start-up that developed a "voiceware" platform that combines telephony and the Internet, for $105 million in cash.

Ribbit's open platform which enables developers to create new and innovative voice applications and services. For example, using Ribbit, developers have integrated voice into and built voice applications that run directly from Facebook or iGoogle. Ribbit said it has attracted thousands of developers since its launch earlier this year. The company is currently testing a consumer application scheduled for general release later this year.

The foundation of the platform is the Ribbit SmartSwitch, a multi-protocol carrier-grade, CLASS 5 soft switch and an open Flash/Flex-based API .

BT said the acquisition will accelerate its strategy to transform itself into a next- generation, platform-based, software-driven services company. Specifically, the acquisition of the Ribbit platform will complement BT's existing capability in the software platform space with its award-winning Software Development Kit (SDK) initiative. BT's SDKs enable developers to integrate new applications with BT's services using a single line of code. Ribbit, which will maintain its management team and identity, will extend its global footprint by becoming part of BT.

Michael Boustridge, President, BT Americas said: "The Ribbit platform makes it simpler, cheaper and faster to build communications functionality into applications, enabling developers to introduce new revenue-generating voice services in hours, rather than weeks. By combining the Ribbit platform with BT's existing web services, we have the potential to deliver some of the world's finest applications for communications innovation benefiting consumers and businesses alike."

  • Ribbit Corporation was founded in February 2006 and funded by venture capital firms Alsop Louie Partners, Allegis Capital, KPG Ventures and Peninsula Ventures.

Alcatel-Lucent Posts Q2 Revenue of EUR 4.101 billion, up 6.1% sequentially

Alcatel-Lucent reported Q2 revenue of EUR 4.101 billion, up 6.1% sequentially but down 5.2% year-over-year. At constant Euro/USD exchange rate, revenues grew 1.7% year-over-year and 8.5% sequentially. The adjusted2 gross profit was EUR 1,433 million or 34.9% of revenues, compared to an adjusted2 gross profit of EUR 1,447 million or 33.4% of revenues in the year ago-quarter.

During the second quarter of 2008, the CDMA activity declined at a higher pace than the company had planned. This was due, to a large extent, to a strong reduction in the capital expenditure of a key customer in North America.

Some highlights from the period:


  • For Q2, revenues for the Carrier operating segment were EUR 2,811 billion compared to EUR 3,104 million in the year-ago quarter, a 9.4% decrease at current exchange rate and a 3% decrease at constant rate.

  • Fixed access revenue decreased at a double-digit rate, due to the ongoing decline in new subscribers to copper-based broadband access.

  • Alcatel-Lucent shipped 7.7 million xDSL ports in the quarter, down 20% from the demanding basis of the year-ago quarter but up 16% sequentially. The year-over-year decline in xDSL revenue was only partially compensated by the very strong growth in FTTx revenue.

  • In data networking, growth in edge routing was softer this quarter than in the first one, which is essentially attributable to a demanding year-over-year comparison as well as the timing of deliveries at certain large customers. The ATM switching business continued on its structural decline path in the second quarter 2008, albeit at a more moderate rate than in the first quarter.

  • Optical networking enjoyed strong double-digit growth this quarter, essentially driven by submarine activities and wireless transmission while terrestrial optical networks grew at a mid single-digit rate.

  • In mobile networks, the GSM business grew at a double-digit rate in the second quarter, which was driven by network expansions in China, India, the Middle East and Africa. W-CDMA revenue grew very strongly, benefiting from the ramp-up in revenues at several key clients, including AT&T Mobility, Bouygues and SFR and sustained growth at other accounts such as Orange, SKT and KTF. CDMA revenue declined sharply year-over-year, hurt by the significant reduction in the capital expenditure of a key customer in North-America.

  • Core switching activities contracted at a moderate rate in the second quarter, as the ongoing decline in legacy TDM voice was almost entirely offset by the strong, double-digit growth in Fixed and mobile NGN. It must be noted that our NGN activity is now close in size to our TDM activity.

  • Applications activities grew in excess of twenty percent the second quarter, a sharp contrast to the moderate growth rate achieved in the first quarter, due to a pick-up in revenues from Messaging applications and a stabilization in our legacy IN (Intelligent Networks) business.

Enterprise Operating Segment

  • Q2 revenues for the Enterprise operating segment were Euro 386 million compared to Euro 376 million in the year-ago quarter, an increase of 2.7%at current exchange rate and of 7% at constant rate. Adjusted2 operating income1 was Euro 29 million, or 7.4% of revenues compared to Euro 23 million or 6.1% in the year ago quarter.

  • Enterprise Solutions grew in the high single-digit range, with a particularly strong performance in data networking but also good growth in IP Telephony. The division also showed progress in Security solutions, driven by recent successes in firewalls and additional orders for its Laptop Guardian product. From a geographic standpoint, growth remained solid in North America and was strong in APAC.

  • Genesys, the contact centre software activity, enjoyed another quarter of double-digit growth, driven by a strong performance in Europe and good resilience in North America.

Services Operating Segment

  • Q2 revenues for the Services operating segment were Euro 818million compared to Euro 750 million in the year-ago quarter, an increase of 9.1% at current exchange rate and of 16% at constant rate. Adjusted2 operating income1 was Euro 71 million or 8.6% of revenues compared to Euro 29 million or 3.9% of revenues in the year ago quarter.

  • Operations grew very strongly, as a result of some of the very large contracts won in 2007 and in 2008. Alcatel-Lucent announced two large managed services contracts in the second quarter, including Reliance Communications in India and Sunrise in Switzerland.
    Network integration also enjoyed another quarter of very strong growth which was driven by several large and complex projects for the design, integration and optimization of networks in Asia and North America.

  • Growth in professional services -- which includes the integration of software applications either from Alcatel-Lucent or third parties - was more moderate this quarter than in the first one, which is mainly due to a much more demanding comparison basis. For the first half, however, this business grew in the high single-digit range. Finally, Maintenance returned to growth this quarter, due to sustained growth in multivendor maintenance combined with an unusually strong quarter in legacy maintenance.

  • The segment enjoyed a material improvement in profitability year-over-year, due to a very favorable mix, a material increase in the gross margin in Network operations, Network integration and Professional services and an overall better absorption of fixed costs.

NTT Communications Deploys Juniper T1600 Core Routers

NTT Communications (NTT Com) has deployed Juniper Networks' T1600 core routers to scale the capacity of its global IP network. Financial terms were not disclosed.

The companies said a key considerations for the T1600 selection included the non-disruptive upgrade path from the T640 to the multi-terabit capacity and energy efficiency advantages of the T1600.

NTT Com began its global IP network service in July 1997 with 45 Mbps bandwidth between Japan and the U.S. In 2000, NTT Com acquired a Tier-1 Internet service provider, Verio, and expanded the bandwidth between Japan and the U.S. to over 1 Gbps. NTT Com has been continuously upgrading its global Tier 1 IP backbone both in bandwidth to support end users' broadband Internet usage, and in direct connections to major ISPs in Asia, the U.S., Europe and the South West Pacific.

Christman, NTT America

1. What is
driving IPv6 in the U.S.?

2. What
IPv6 services are currently offered?

What does a typical IPv4-to-IPv6 migration look like?

Are there significant security concerns with IPv6?

What are the regional differences for IPv6

6. What
consumer applications will benefit from IPv6?

Peering Forum
2008, San Francisco

Juniper Names Vice President, U.S. Enterprise Sales

Juniper Networks Appointed Philip O'Reilly to the position of senior vice president of U.S. enterprise sales. A seasoned leader, Mr. O'Reilly joins Juniper Networks from Solunet, where he served as CEO. Prior to Solunet, O'Reilly was chief financial officer and vice president of business development for Datavon, a VoIP service provider in Texas.

Alcatel-Lucent Chairman Serge Tchuruk and CEO Pat Russo Resign

Alcatel-Lucent announced the resignations of its non-executive Chairman Serge Tchuruk and CEO Pat Russo.

Specifically, Serge Tchuruk has decided to step down on October 1, 2008 and Pat Russo has decided to step down no later than the end of the year. At the Board's request, she will continue to run the company until a new CEO is in place to effect a smooth transition and maintain the continuity of the company's business.

The company's Board will commence a search for a new non-executive Chairman and CEO immediately. The Board is also initiating a process to change the composition of the Board to a smaller group that will include new members. Henry Schacht also announced that he will resign from the Board immediately believing that, being a former CEO, he should not remain beyond the transitional stage of the merger. Mr. Schacht was the CEO of Lucent Technologies prior to Ms. Russo becoming CEO in January 2002.

"The merger phase is now behind us. I am proud that Alcatel-Lucent has become a world leader in a technology which is transforming our society. It is now time that the company acquires a personality of its own, independent from its two predecessors. The Board must also evolve and the Chairman should give the first example, which I have decided to do," said Serge Tchuruk.

"I am very pleased with the progress we are making especially in light of a difficult market environment," said Pat Russo. "Our strategy is taking hold and our results are demonstrating good operational progress. That said, I believe it is the right time for me to step down. The company will benefit from new leadership aligned with a newly composed Board to bring a fresh and independent perspective that will take Alcatel-Lucent to its next level of growth and development in a rapidly changing global market. I have every desire to ensure a smooth transition of leadership within the company and I have informed the Board of my determination to work closely with them until the end of the year or sooner if a successor is named, and we are in agreement on this approach. I have great confidence in Alcatel-Lucent and believe this to be a company with tremendous potential," said Russo.
  • Prior to the merger, Serge Tchuruk was Chairman and CEO of Alcatel, a position he held since 1995. Prior to joining Alcatel, from 1990 to 1995, Serge Tchuruk held the position of Chairman and CEO of Total, which he turned around into one of the world's leading oil and gas companies. From 1986 to 1990, Serge Tchuruk was Chairman and CEO of Orkem (previously called CDF-Chimie), a European chemical company involved in petrochemicals and specialty chemicals.

  • Prior to the merger of Alcatel and Lucent Technologies, Patricia Russo was Chairman and CEO of Lucent. She helped launch Lucent in 1996 and spent more than 20 years of her career managing some of Lucent's and AT&T's largest divisions and most critical corporate functions. She served as Lucent's CEO since January 2002. Before joining AT&T in 1981, Patricia Russo spent eight years in sales and marketing at IBM. Patricia also served as president and chief operating officer at Eastman Kodak Company before returning to Lucent as CEO.

Sunday, July 27, 2008

Chile's GTD Selects Alcatel-Lucent for GPON in Santiago

Chile's Gtd Group will begin deploying a fiber-to-the-home (FTTH) GPON network in in Santiago's prestigious Santa Mar�a de Manquehue district, with other neighborhoods of Chile's capital city following shortly after. Gtd Manquehue will deploy the Alcatel-Lucent 7342 Intelligent Services Access Manager Fiber-to-the-User (ISAM FTTU) and the Alcatel-Lucent 5520 Access Management System for element management. Financial terms were not disclosed.

"We selected GPON technology so we can offer our customers unlimited triple play and advanced business services backed with a richer quality of experience, which we think will better serve our residential and business customers and give us a competitive advantage in this market", said Alberto Dom�nguez, General Manager of Gtd Manquehue. "Alcatel-Lucent's worldwide leadership in broadband and their experienced local services teams will help Gtd Manquehue successfully deploy this new fiber infrastructure, the first of its kind in Chile ".

Celeno Raises $16 Million for WiFi Silicon

Celeno Communications, a start-up based in Israel, raised $16 million in Series C funding for its semiconductors for multimedia WiFi home networking applications.

Celeno's high-performance, standards-based WiFi System on a Chip enables robust, whole-home multimedia and entertainment distribution over wireless home networks. Celeno said its unique technology boosts standard WiFi performance, achieving improvements of up to 10 times the range and as much as twice the throughput of 802.11n draft 2.0 solutions. Celeno's system-on-a-chip (SoC) leverages Beam Forming MIMO and "Channel Aware" technologies, enabling interference-free, HD-quality video throughout the entire home.

The funding was led by Cisco. Miven Venture Partners and the company's previous investors, Greylock Partners and Pitango Venture Capital, also participated in the oversubscribed round. Total investment in the three-year old company now exceeds $30 million.

XO Holdings Secures $780 Million in Financing

XO Holdings has raised $780 million through the issuance of two new series of preferred stock in order to retire senior debt, fund future growth initiatives and provide ongoing working capital for the business. XO Holdings is the parent company of XO Communications and Nextlink.

As a result of this fundraising, all the company's indebtedness for borrowed money, amounting to approximately $395 million under its Senior Secured Credit Facility as well as approximately $78 million under its $75 Million Senior Note issued in March 2008 (both figures inclusive of accumulated interest), has been retired in full. The remaining $307 million of proceeds, plus any proceeds from shares purchased by minority stockholders and reduced for transactional expenses, will be used to fund the company's long-term strategic growth plan which will accelerate revenue growth and improve operational efficiencies, as well as provide working capital for its businesses.

Alcatel-Lucent and Airvana to Develop CDMA IMS-Femtocell

Airvana and Alcatel-Lucent are collaborating on an IP Multimedia Subsystem (IMS) femtocell for CDMA/EV-DO network operators. Femtocells are cellular access points that use a subscriber's existing broadband connection to provide enhanced voice, video and data services, especially in the home, using existing mobile devices.

Under a new development agreement, Airvana will enhance its femtocell offerings with new interfaces to enable smooth integration with Alcatel-Lucent's IMS core. This agreement builds on demonstrations of combined, femto-based, in-building solutions by Alcatel-Lucent and Airvana at the CTIA Wireless 2008 trade show and exhibition in Las Vegas earlier this year.

The combined solution -- which integrates IMS core network elements from Alcatel-Lucent with Airvana's HubBub femtocell access point -- can support seamless inter-working between the CDMA macro network and the IMS-supported femtocells, and will help minimize any impact on the existing network in terms of performance, complexity and the costs associated with managing the network.http://www.airvana.com

Atheros Posts 13th Consecutive Quarter of Revenue Growth

Atheros Communications reported Q2 revenue of $121.5 million, compared with $114.5 million reported in the first quarter of 2008 and $100.8 million reported in the second quarter of 2007. GAAP net income was $10.1 million or $0.16 per diluted share. This compares with GAAP net income of $3.4 million or $0.06 per diluted share in the first quarter of 2008. GAAP net income in the second quarter of 2007 was $9.3 million or $0.16 per diluted share. Total cash, cash equivalents and marketable securities were $276.6 million at June 30, 2008, up $21.1 million from the prior quarter.

"We are pleased to report another very strong quarter, our 13th consecutive quarter of revenue growth," said Craig Barratt, president and CEO. "We experienced broad-based growth across our PC OEM, Networking and Consumer channels and continued growth of our Ethernet and Mobile WLAN product revenues. Revenue from our 11n products grew more than 50 percent sequentially, while our 11g products continued to be a significant contributor to our overall results," Dr. Barratt said.

Motorola to Acquire AirDefense for Wireless LAN Security

Motorola agreed to acquire privately held AirDefense, which specializes in WLAN security, for an undisclosed sum.

AirDefense, which is based in Atlanta, Georgia, develops Wireless Intrusion Prevention Solutions (WIPS) and premium software applications. The solutions enable corporations to secure their networks against wireless security threats and comply with regulatory and industry standards. AirDefense capabilities include rogue wireless detection, policy enforcement and intrusion prevention, both inside and outside an organization's physical locations and wired networks. The company claims nearly 800 government agencies and blue chip customers.

"WIPS solutions have gained significant traction as Wireless LANs have become pervasive in industries from the federal government to financial services," said Sujai Hajela, vice president and general manager, Motorola Enterprise Wireless LAN division. "Industry compliance requirements such as Payment Card Industry Data Security (PCI DSS) and heightened security awareness have fueled the need for comprehensive compliance, enforcement, forensics and reporting, which is offered by AirDefense solutions. This transaction is a tremendous opportunity for Motorola to enhance its WLAN portfolio by utilizing AirDefense's relationships and further integrating WIPS security solutions into our WLAN infrastructure offering. Together, we are a leader in helping businesses truly realize the vision of a secure and reliable all-wireless enterprise."http://www.motorola.com

Reliance Globalcom Upgrades Metros with Juniper MX-Series

Reliance Globalcom is upgrading its metro networks in the U.S. with Juniper's MX-series Ethernet Services Routers and M120 Multiservice Edge Routers to support 10 GbE services. Specifically, Reliance Globalcom is deploying the Juniper Networks MX-series Ethernet Services Routers with its Managed Metro Ethernet service to seamlessly link multiple enterprise LANs within a single metro over Ethernet-based metropolitan fiber networks. The MX-series delivers up to 960 Gbps of switching and routing capacity to Reliance Globalcom's network. Financial terms were not disclosed.

The upgrade extends MPLS and Virtual Private LAN Service (VPLS) to the network edge, improving network performance and ensuring scalability to address forthcoming demands for additional capacity.

Reliance Globalcom has been using Juniper gear as a key part of its core network in all international PoPs. The new Juniper equipment will be integrated into the existing Juniper-based global Ethernet VPLS platform. The network is capable of scaling to support VoIP, high-definition video conferencing, backup and recovery, electronic trading and other multi-media business applications. The new network also ensures carrier-class service reliability, which is essential to enterprise and financial services customers.


1. About Reliance Globalcom

2. Synergy of recent
international acquisitions

3. Market presence and service

4. Network architecture

5. Expansion strategy, $2 billion
network upgrade and key technology partners

6. Bandwidth pricing trends per

Verizon Sees Strength in Wireless, DSL Declines as FiOS Grows

Verizon Communications reported total operating revenues of $24.1 billion in the second quarter 2008. This is a 3.7 percent increase compared with the second quarter 2007, or an increase of 4.9 percent when adjusted for the spin-off of the Wireline segment's non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont (non-GAAP). Total operating expenses increased 2.4 percent to $19.6 billion, comparing second quarter 2008 with second quarter 2007. Verizon reported 66 cents in diluted earnings per share (EPS) in the second quarter 2008, compared with 58 cents per share in the second quarter 2007.

At the end of Q2, Verizon's total debt was $43.1 billion, compared with $35.8 billion at the end of the first quarter 2008. In the second quarter, the company made final payments of approximately $8.5 billion for licenses won in the Federal Communications Commission's 700 MHz spectrum auction and purchased $4.8 billion of Alltel Corp. debt in connection with the pending acquisition of Alltel.

Some highlights for the quarter:


  • Verizon Wireless reported 1.5 million total net customer additions, essentially all were retail post-paid. Retail gross customer additions were up 3.2 percent over the prior year.

  • Total churn was down year over year at 1.12 percent, a record low for the company. Among the company's retail post-paid customers, churn was even lower at 0.83 percent, also a record low.

  • Wireless continued its double-digit revenue growth, with total revenues of $12.1 billion, up 11.8 percent year over year. Service revenues were $10.5 billion, up 11.6 percent year over year, driven by customer growth and demand for data services. ARPU levels (average monthly revenue per customer) increased year over year for the ninth consecutive quarter. Total service ARPU of $51.53 was up 0.9 percent year over year driven by total data ARPU, which was up 31.3 percent.

  • Verizon Wireless' data revenues grew 45.3 percent over the prior year, contributing nearly $2.6 billion. The company had 49.6 million retail data customers in June (approximately three-quarters of its retail customer base), a 25.6 percent increase over the prior year.


  • Verizon Wireline expanded penetration of FiOS services. Sales penetration rates (percentage of potential customers who buy the service) increased for both FiOS Internet (available for sale to nearly 8.4 million premises) and FiOS TV (available for sale to 7.0 million premises).

  • Verizon's FTTP network, which delivers FiOS Internet and FiOS TV services, passed 11.0 million and 9.6 million premises, respectively, throughout the company's entire service territory by the end of the quarter.

  • FiOS Internet penetration averaged 23.5 percent across all markets, up from 18.7 percent in last year's second quarter. FiOS TV penetration averaged 19.7 percent across all markets, up from 13.3 percent.

  • Verizon added 176,000 net new FiOS TV customers, for a total of nearly 1.4 million FiOS TV customers as of the end of the quarter.

  • Verizon added 187,000 net new FiOS Internet customers. The company had nearly 2 million FiOS Internet customers at the end of the quarter, nearly doubling the number of FiOS Internet customers since the end of second quarter 2007. Verizon added its 2 millionth FiOS Internet customer earlier this month.

  • Total broadband connections were 8.3 million, a net increase of 54,000 over the first quarter 2008. This includes a decrease of 133,000 DSL-based Verizon High Speed Internet connections, which was more than offset by the increase in FiOS Internet customers. The 8.3 million is an 11.5 percent year-over year increase, excluding broadband connections in 2007 in the three New England states that have since been spun off.

  • Wireline data revenues -- which now represent 41.8 percent of total wireline revenues -- were $5.1 billion, an increase of 16.1 percent compared with the second quarter 2007. This includes revenues from consumer broadband services, wholesale data transport and Verizon Business data services.

  • Broadband and video revenues from consumer customers totaled more than $1.0 billion in the second quarter, representing year-over-year growth of 52.9 percent.

  • Growing revenue from broadband and video services drove consumer ARPU in legacy Verizon wireline markets (which excludes consumer markets served by the former MCI) to $63.76, a 10.4 percent increase compared with last year's second quarter. The ARPU among FiOS customers was more than $130 per month.

  • Verizon Business had total revenues of $5.3 billion, or growth of 0.9 percent compared with last year's second quarter.

  • Sales of strategic services -- such as IP, managed services, Ethernet and optical ring services -- continued to drive growth at Verizon Business. These services generated $1.5 billion in revenue, up 18.7 percent from second quarter 2007.

  • Wireline total operating revenues were $12.1 billion, a 1.8 percent decrease compared with the second quarter 2007. Wireline total operating expenses decreased 1.7 percent over the same period.

Reliance Globalcom Video: Global Reach and Ethernet Scalability

One Minute Video: What is NGN?

One Minute Video presented by Laura Howard, ECI Telecom -- What is NGN?

Jargon Buster

Thursday, July 24, 2008

Meru Networks Develops "RF Barrier" to Defend WLAN Perimeters

Meru Networks introduced IEEE 802.11-based "RF Barrier" technology for proactively defending wireless networks against eavesdroppers and "parking lot" attackers who attempt to record and observe network traffic from outside a building's perimeter. The system uses specially adapted WLAN radio at the network's edge to block specific radio-frequency (RF) signals from the corporate network as they exit the building, without disrupting internal WLAN operation. This limits an attacker's ability to eavesdrop on data and perform offline analysis.

Meru's RF Barrier is formed by placing the company's wireless access point along the inside perimeter of a building, and an advanced external antenna outside the perimeter. RF Barrier technology inspects the traffic in real time to determine which part belongs to the WLAN (and is therefore designated as sensitive) and uses the external antenna to block outbound traffic at the RF layer. Would-be attackers are limited in their ability to see useful packet information about the internal network. Because RF Barrier uses directional antennas and selective enforcement technology, it has no impact on signals within the building or from other networks.

RF Barrier builds on Meru's existing security solution, which provides security across all four of the major areas subject to active wireless threats: perimeter defense, connection defense, network defense and remote threat defense. Other components of the Meru security portfolio are:

  • Rogue prevention, which detects and identifies rogues based on the wired network to which a rogue is connected as well as its over-the-air signaling.

  • AirFirewall, based on Meru physical security technology that can eliminate, rather than just contain or mitigate, rogue access points and evil twins attackers

  • Per-user, per-application stateful firewall to allow policy enforcement based on both the user's identity and the nature of the traffic

  • Signature-based firewalling, for enforcing policies on peer-to-peer applications such as Skype, as well as application flows within end-to-end encrypted VPN tunnels

  • Location-based policy enforcement, which implements security decisions based on the location from which an unauthorized user is accessing the network

  • Voice and video security, which prevent the introduction of local or network-wide vulnerabilities in the presence of voice, video or heavy data traffic

  • FIPS 140-2-certified algorithms, with military-grade encryption and key negotiation, including EAP-TLS and AES-CCMP using 802.11i

  • Secure remote access points, which extend enterprise security policies and network to the home offices of telecommuters and hotel rooms for mobile employees.

SingTel Signs Major US studios for Early Content Release

Singapore Telecommunications (SingTel) has signed deals with three major U.S. studios -- Disney-ABC International Television, Twentieth Century Fox and Warner Bros. International Television Distribution - that will make it possible for its mio TV service to screen over 50 top U.S. series as early as 24 hours after their U.S. premiere.

SingTel claims its will be the first IPTV operator in the world to offer such a volume of top US series within a day of their US telecast on a subscription-based model, and this will provide the first exhibition of such licensed series in Singapore.

This service, called Season Pass, will launch this September and the availability of programming will follow the US TV calendar. mio TV will offer the latest seasons of popular American TV series debuting in US from September this year such as Grey's Anatomy, Lost, Criminal Minds, Prison Break, Bones, 24, Ugly Betty, Without a Trace, Terminator: The Sarah Connor Chronicles, Supernatural, Samantha Who? and many more.

SingTel had 45,000 mio TV customers as at 30 June 2008.
  • In September 2007, Alcatel-Lucent announced that it provided key network integration services for SingTel's recently launched pay TV service, mio TV, which debuted on 20-July-2007. mio TV is based on a combination of Alcatel-Lucent's services integration solution and the Microsoft Mediaroom IPTV and multimedia platform. Alcatel-Lucent also provided a complete services integration solution that brings together the network infrastructure, software platforms and integration skill sets.

Huawei Develops 100G WDM Prototype

Huawei Technologies announced a 100 Gbps WDM prototype platform. Huawei said its design will support a transmission distance of up to 2,000 km without using electrical regenerators, while offering a migration path from 10G/40G technologies. Commercial availability dates were not disclosed.

"The successful development of 100G WDM technologies reflects Huawei's strength in the optical network domain," said Christian Chua, president of Huawei' s Transport Network Product Line. "Huawei will continue to invest in long-haul high-speed transport technologies, promote the development of 100G WDM technologies, and will strive to alleviate the bandwidth pressure facing telecom operators today."

UK's City University Installs Nortel Ethernet Routing Switch 8600

City University, which has over 10,000 students at its campus in London, has installed the Nortel Ethernet Routing Switch 8600 (ERS 8600) at the core its new LAN. The switch supports up to 384 one-gigabit or 24 ten-gigabit ports. The ERS 8600 provides QoS capabilities as well as non-stop operation through Nortel's Split Multi-Link Trunking (SMLT) technology, which provides sub-second redundancy for link and switch. Nortel Ethernet Switch 5520 is used for the server stacks and edge devices providing high-density Gigabit desktop connectivity and Power over Ethernet (PoE) capability.

Nortel Secure Network Access allows students to use their normal windows login but actually be authenticated to the University network at the same time. Nortel Enterprise Network Management System enables network administrators to identify and resolve problems and performance bottlenecks before they impact network services.

SES ASTRA Selects Harmonic's Electra 7000 Encoders

ASTRA Platform Services GmbH (APS), a subsidiary of SES ASTRA , has selected Harmonic's DiviCom Electra 7000 high definition (HD) encoders and DiviTrackIP statistical multiplexing for a network upgrade designed to substantially enhance and expand its HD MPEG-4 AVC (H.264) service.

APS operates one of Europe's most modern satellite broadcast centers, transmitting over 200 television and audio channels to subscribers throughout Europe from its headend in Germany.

SES ASTRA is Europe's leading satellite broadcaster, delivering services to more than 117 million direct-to-home and cable households. Harmonic's high performance encoding and IP-based statistical multiplexing solutions enable APS to combine multiple MPEG-4 AVC HD channels in a single pool, resulting in more efficient use of network capacity and reduced operational complexity. In addition, APS is now able to multiplex standard definition (SD) and high definition channels together in a shared statistical multiplex pool, resulting in greater flexibility and scalability of the channel line-up.

Fujitsu Expands Manufacturing Capacity in Texas

Fujitsu Network Communications is expanding manufacturing capacity at their Richardson, Texas, headquarters. Fujitsu is shifting manufacturing of key optical and electronic components from Europe and Japan to the U.S. In the process, 67 new professional and production jobs will be created in North Texas.

Fujitsu said it is transferring manufacturing of optical and electronic assemblies for its FLASHWAVE 4500 Multiservice Provisioning Platform (MSPP) and FLASHWAVE 7500 Re-configurable Optical Add/Drop Multiplexer (ROADM) from Japan. Manufacturing of broadband and fiber access products from Europe are also being transferred to Richardson. In addition, hard disk drive logistics are being consolidated from a third party vendor. The transfer process for these manufacturing processes began in the first quarter of 2008, and is expected to be completed by the end of this year.

Fujitsu is currently the eighth-largest employer in Richardson with approximately 1,500 employees on its 143-acre campus.

Metalink Considers its Strategic Options, Including Possible Sale

Metalink, a supplier of DSL and 802.11n silicon solutions, said it is evaluating number of strategic and financial options for the future, including a potential sale of the company. In parallel, Metalink is implementing measures to reduce its ongoing operating expenses. Metalink is also actively involved in capital raising activities, including through a private placement. This is Metalink's second cost reduction plan, following a plan which was announced in March 2008. The current plan aims to reduce operating expenses to approximately $6.5 million in the fourth quarter of 2008 (excluding one time charges, such as restructuring and severance costs, and stock-based compensation expenses).

AT&T Plans $400 Million Fiber Investment in Alabama

AT&T announced plans to invest approximately $400 million over the next several years in fiber network upgrade in Alabama. The announcement follows a recent decision by the Birmingham City Council to approve an agreement with AT&T that will enable AT&T to provide these IP services to local consumers. That same day, the Jefferson County commission approved a similar agreement. They join 34 communities across the state in approving similar agreements with AT&T, including Hoover, Bessemer, Midfield, Helena, Bay Minette, Vestavia Hills, Clanton, Tuscaloosa County, Jasper, Madison and Albertville.

Wednesday, July 23, 2008

Thomson Appoints Alcatel-Lucent Exec as CEO

Thomson announced the appointment of Frédéric Rose as its new CEO. He will also join the Board of Directors.

Prior to joining Thomson, Mr Rose has been President of Alcatel-Lucent's Europe, Asia and Africa Region and a member of Alcatel-Lucent's Executive Committee. Prior to that, he was President of Alcatel-Lucent's Asia Pacific region, Mr. Rose managed a diverse team of 15,000 staff operating across 18 countries and led the region to achieve double-digit growth during his tenure. He also held the position of President of Alcatel Shanghai Bell.

NextWave to Sell Some AWS Spectrum for $150 Million

NextWave Wireless signed agreements with four parties to sell a portion of its AWS license portfolio, representing 63% of its total AWS MHz-pops, for a total of $150.1 million.

The agreements call for NextWave to sell 599 million MHz-pops of AWS spectrum at an average price of $0.25 per MHz-pop.

NextWave said its cost basis for the licenses being sold is $75.2 million or $0.126 cents per MHz-pop.

NextWave's remaining U.S. spectrum assets include 2.8 billion MHz-pops of 2.3 GHz WCS spectrum, 972 million MHz-pops of 2.5 GHz BRS/EBS spectrum, and 348 million MHz pops of AWS spectrum. In addition the company has 5.9 billion MHz-pops of spectrum in Europe, Canada, and South America.
  • In July 2008, NextWave Wireless signed agreements with four parties to sell a portion of its AWS license portfolio, representing 63% of its total AWS MHz-pops, for a total of $150.1 million.

    The agreements call for NextWave to sell 599 million MHz-pops of AWS spectrum at an average price of $0.25 per MHz-pop.

    NextWave said its cost basis for the licenses being sold is $75.2 million or $0.126 cents per MHz-pop.

    NextWave's remaining U.S. spectrum assets include 2.8 billion MHz-pops of 2.3 GHz WCS spectrum, 972 million MHz-pops of 2.5 GHz BRS/EBS spectrum, and 348 million MHz pops of AWS spectrum. In addition the company has 5.9 billion MHz-pops of spectrum in Europe, Canada, and South America.

  • In April 2008, NextWave announced that it had retained Deutsche Bank and UBS Investment Bank to sell its U.S. spectrum assets. The company has also retained Canaccord Adams to sell its Canadian spectrum assets.

  • Also in April, NextWave Wireless announced its NW2000 Wave 2-ready family of second-generation mobile WiMAX chipsets designed for high-volume, small form-factor wireless broadband subscriber stations, including CPE modems, PC card modems, laptops, multimode/smartphone handsets and mobile multimedia terminals.

Deutsche Telekom Activates Ericsson's 40 Gbps DWDM

Deutsche Telekom has commercially started Ericsson's Marconi MHL 3000 multihaul WDM solution in its German core network. This step follows in-depth testing, optimization and systems integration. Ericsson's Marconi MHL 3000 MultiHaul WDM platform is now deployed nationwide with 40 Gbps functionality. Financial terms were not disclosed.

Ericsson has been one of Deutsche Telekom's suppliers of WDM equipment since 2005.

Ericsson said its Marconi MHL 3000 solution enables Deutsche Telekom to implement a highly efficient IP network with 40 Gbps connections on the existing ROADM infrastructure. The platform can deliver up to 80 channels. Different modulation formats are used to provide the optimum cost performance depending upon the network application.

Juniper Appoints Kevin Johnson as CEO

Juniper Network appointed Kevin Johnson as its new CEO, replacing Scott Kriens who will continue as chairman of the board and will remain active in the areas of strategy and leadership development.

Johnson joins Juniper Networks from Microsoft, where he served in a range of strategic executive assignments over the course of his 16-year tenure, most recently as president of the Platforms and Services Division. Under his leadership, the division achieved record breaking results with over $20 billion in revenue in fiscal year 2008. In addition to leading the Windows business, Mr. Johnson focused on building Microsoft's position as a leader in online advertising and evolving its "software + services" strategy.

"The Juniper team has been at the heart of the success we have realized since the founding of the company in 1996, and Scott has been at the center of that team with me since those early days," commented Pradeep Sindhu, founder and chief technology officer of Juniper Networks.

Ixia Reports Q2 Revenue of $45.9 Million, Record Bookings

Ixia posted Q2 revenues of $45.9 million, which compares to $41.7 million in the immediately preceding first quarter of 2008 and $43.0 million in the second quarter of 2007. Net income (GAAP) was $1.8 million, or $0.03 per diluted share, compared to net income of $1.4 million, or $0.02 per diluted share, for the second quarter of 2007.

"We are very pleased with our second quarter results, especially given the ongoing uncertainty with the economy. We achieved record bookings this quarter, driven by our worldwide accounts as we continued to diversify and grow our customer base. We increased bookings over the first quarter in all of our major geographic regions and customer segments due in part to the recent investments we have made in our sales and marketing teams," commented Atul Bhatnagar, Ixia's President and Chief Executive Officer.

Telefónica Selects Ericsson as Prime Integrator for Latin America

Telefónica's has selected Ericsson to serve as its prime network integrator for its fixed and mobile operations across Latin America. Under the agreement, Ericsson will provide business consulting services including financial-risk evaluation and revenue assurance life-cycle management, supported by technical analysis. Ericsson will also provide systems integration services such as design, adaptation and integration of customized Revenue Assurance solutions for Telefónica's Latin American operations. Financial terms were not disclosed.

Ericsson said its services will enable Telefónica to gain greater control of its operations and prevent the recurrence of inconsistencies that adversely affect revenue.

Qualcomm Reports Revenues $2.8 Billion, up 19% YoY

Qualcomm reported quarterly revenue of $2.8 billion, up 19 percent year-over-year and 6 percent sequentially. Net income reached $748 million, down 6 percent year-over-year and 2 percent sequentially. Diluted earnings per share came in at $0.45, down 4 percent year-over-year and sequentially.

The company held cash, cash equivalents and marketable securities of approximately $11.2 billion at the end of the third quarter.

"We are pleased to report another strong quarter as the migration to 3G-enabled products continues to accelerate," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "We delivered record revenues, up 19 percent year-over-year, and our pro forma earnings per share were at the high end of our prior estimate.

Nokia and Qualcomm Reach Agreement, Settle All Litigation

Nokia and Qualcomm reached an agreement covering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies. The agreement will result in settlement of all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission.

Under the terms of the new 15 year agreement, Nokia has been granted a license under all Qualcomm's patents for use in Nokia's mobile devices and Nokia Siemens Networks infrastructure equipment.

Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's technology into Qualcomm's chipsets.

The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.

"We believe that this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies," said Olli-Pekka Kallasvuo, CEO of Nokia Corporation. "The positive financial impact of this agreement is within Nokia's original expectations and fully reflects our leading intellectual property and market positions."

Separately, Qualcomm issued a statement raising its fiscal 2008 revenue and earnings guidance. Qualcomm now anticipates its Q4 revenues to be approximately $2.5 to $2.7 billion, with pro forma diluted earnings per share (EPS) to be approximately $0.49 to $0.51. The company anticipates the shipment of approximately 84 to 87 million Mobile Station Modem (MSM) chips during the quarter, compared to approximately 68 million MSM chips shipped during the year ago quarter. We estimate June quarter shipments of approximately 114 to 118 million CDMA devices (CDMA2000 and WCDMA) at an estimated average selling price of approximately $215 per unit. Approximately 89 million CDMA devices were shipped in the year ago quarter.

"Global demand for 3G continues at a rapid pace as consumers, operators and manufacturers benefit from a wide variety of competitively priced, feature-rich devices," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "In calendar year 2008, we continue to see approximately 30 percent year-over-year growth for CDMA-based device shipments. The fundamental drivers of our business remain strong, and we are raising our fiscal 2008 revenue and earnings per share estimates."

Level 3 Reports Communications Services Growth of 9% YoY

Level 3 Communications reported Q2 consolidated revenue was $1.09 billion for the second quarter 2008, an increase of 4 percent compared to $1.05 billion for the second quarter 2007. First quarter 2008 consolidated revenue was $1.09 billion. The net loss for the second quarter 2008 was $33 million, or $0.02 per share, including a $96 million, or $.06 per share gain on the sale of the company's Vyvx advertising distribution business.

Core Communications Services revenue, which includes Core Network Services and Wholesale Voice Services, was $972 million in the second quarter 2008, an increase of 9 percent over $888 million in the second quarter 2007.

"Our strong second quarter results reflect Core Network Services growth and our continued focus on reducing network costs and operating expenses," said James Crowe, president and CEO of Level 3. "We generated positive Free Cash Flow and now expect to be Free Cash Flow positive for the remainder of the year. And as previously announced, we expect to be Free Cash Flow positive for the full year 2009."11 million.