Thursday, January 31, 2008

Huawei Installs CDMA2000 network for Indonesia's Telkom

Huawei Technologies has supplied a CDMA2000 network for PT Telekomunikasi Indonesia (Telkom). The project that started in May 2007 and took just five months to complete. Currently, Huawei infrastructure covers over half of Telkom's national network, which encompasses the areas of Jakarta, West Java, Center Java and Sumatera. Financial terms were not disclosed.

Pirelli Labs Spins Out New Company Focused on Nanotech Photonics

Pirelli will soon incorporate a new company to focus on second generation photonics based on nanotechnologies. The company will be the result of integration between the photonics business unit of Pirelli Broadband Solutions and the Optical Innovation division of Pirelli Labs.

Pirelli said the new company will focus on innovative optical components, optical modules, and transportation systems. It has a growing product portfolio and significant know-how in research and technology thanks to its laboratories in Milan-Bicocca and to a network of international partnerships.

At the same time, Pirelli Broadband Solutions will concentrate its activity on the broadband access business, increasingly characterized by market and technology dynamics that are different from those of photonics. The company holds a consolidated portfolio of five product lines (access gateways, set-top boxes, extenders, dual-mode phones and remote management systems), has a leadership position in the Italian market, and is beginning to affirm itself in the rest of Europe.

FCC Amends Video Leased Access Rules

The FCC adopted rules aimed at promoting video programming diversity. Cable operators are required by statute to set aside channel capacity for commercial use by unaffiliated video programmers (leased access channels). However, in its most recent annual cable price survey, the FCC found that cable systems on average carry only 0.7 leased access channels.

The new Order tries to remove several obstacles that may be hindering the use of leased access capacity, including clarifying the information that cable operators must be prepared to provide in response to inquiries, and the time in which it must be provided.

In a statement, FCC Chairman Kevin Martin wrote: "Section 612 of the Communications Act requires the Commission to promote "competition in the
delivery of diverse sources of video programming." Unfortunately, however, our existing leased access rules were simply not achieving their intended purpose. For example, the Commission's most recent cable price survey found that cable systems on average carry only .7 leased access channels. The record suggests that the leased access regime has been extremely underutilized because of artificially high rates. Our order, therefore, is designed to increase the use of leased access channels and thereby enhance the diversity of programming."

FCC and USDA Launch Web Site for Rural Broadband

The FCC and the United States Department of Agriculture (USDA) have launched a new website for those in rural America looking to bring the benefits of broadband services to their communities. The site provides information on the different technology platforms that can be used to
provide broadband service, how to access spectrum necessary for delivery of wireless broadband services, government funding for broadband services, relevant FCC and USDA proceedings and initiatives, and data on broadband deployment. In addition, the site provides instructions on how to locate companies already licensed to provide wireless services in or near specific rural communities, as well as helpful links to other government and private resources related to encouraging broadband opportunities in rural America.

Ericsson: Mobile Sales Growth Slowed in 2007, 3.3 Billion Mobile Users Worldwide

During 2007, Ericsson experience a rapid build out of mobile communications in emerging markets along with a decline in network expansions and upgrades in mature markets, resulting in lower overall margins. The year-over-year sales for Q4 2007 were flat due to less spending from operators on network infrastructure and a continued weakened USD. About 50% of sales are USD related. For the full year, the sales increase amounted to 4%. In constant currencies, estimated organic growth was 8%.

Operating income amounted to SEK 7.6 (12.2) b. in the quarter and SEK 30.6 (35.8) b. for the full year. Operating expenses amounted to SEK 15.2 (13.2) b in the quarter as a consequence of seasonality and newly acquired companies.

Some highlights from the company's financial report:

  • Sales in Networks declined by 4% in the quarter, year-over-year. For the full year sales grew by 1%. During the second half of 2007, sales were affected by the shift from capacity expansions and software upgrades to new network buildouts. This shift in business mix, as well as the rollout of new switching technologies, has negatively affected gross margin. Network rollout services increased 61% sequentially, reflecting the higher proportion of large network buildout projects.

  • Redback has significantly increased its international sales over the year through leveraging Ericsson's global sales organization. In the US, however, Redback saw a decline in business from one major customer which impacted domestic sales. Redback full year sales grew slightly.

  • Sales in Professional Services grew by 15% in the quarter year-over-year and by 16% for the full year. Growth in constant currencies amounted to 19% and 16% respectively. Managed services and systems integration showed the fastest growth. Operating margins remained

  • Sales growth amounted to 7% in the quarter year-over-year and 14% for the full year. Operating margin in the quarter was negative 9% and just below break-even for the full year. Multimedia is in a build-up phase. It includes areas with good growth and healthy margins as well as new areas with significant investments, and sales and results fluctuate.

  • At the end of 2007, Ericsson had 74,000 employees worldwide, including 19,800 in Sweden. This compares with 63,800 at the end of 2006, including 19,100 in Sweden.

Ericsson estimates the Mobile Subscriptions worldwide grew by some 150 million in Q4 2997 to a total of 3.3 billion. 180 million are WCDMA subscriptions, up by close to 20 million in the fourth quarter.

There are now 197 WCDMA networks in 87 countries, of which the large majority is being upgraded to HSPA.

Uptake in data traffic accelerates quickly, and in 3G networks monitored by Ericsson total data traffic now exceeds voice traffic.

In the twelve-month period ending September 30, 2007, fixed broadband connections grew with 24% to some 320 million.