Wednesday, October 15, 2008

Limelight Networks Exceeds Two Terabit Per Second Global Capacity

Limelight Networks' global content delivery network has exceeded two terabits per second (Tbps) capacity. The company calculates that 2 Tbps is roughly the raw capacity required to deliver content to the equivalent of four Nielsen ratings points of audience. Even taking network overhead into account, this milestone means Limelight's capacity could support delivering broadcast-quality content to over two million simultaneous Internet users.

Limelight's CDN approach is to store a publisher's entire content library logically close to the end user, so content is delivered without traversing the congested public Internet. This is accomplished by directly connecting over eight petabytes of storage to over 900 last mile access networks, through a fiber-optical connection maintained by the company.

"This milestone of two terabits per second of network capacity represents the beginning of a new era in the content delivery industry. While Limelight Networks' architecture has always ensured a broadcast quality experience, today's milestone demonstrates that we can deliver broadcast quantity entertainment -- thousands of programs to global Internet audiences that are measurable in Nielson ratings points," said Nathan Raciborski, chief technical officer, Limelight Networks.

Limelight Networks is hosting a Digital Media Innovation Forum this week in Phoenix, Arizona.

Nokia Siemens Networks Inaugurates Chennai Facility

Nokia Siemens Networks inaugurated a new facility for the manufacture and distribution of mobile communications infrastructure at Oragadam near Chennai. NSN plans to invest INR 300 Crore (approximately US$70 million) over the next three years and to generate 400 new jobs.

The new Oragadam facility will manufacture Nokia Siemens Networks mobile Base Station Controllers, Nokia Siemens Networks Flexi EDGE BTS, Microwave Radio and Access line-card products, as well as other telecom equipment. The first deliveries of Radio Access products manufactured and distributed from the site to customers in India are planned for later this month.

Acme Packet Cites Role in Nearly 100 IMS Projects

Acme Packet cited its involvement in nearly 100 IMS projects around the world. In part, the company noted:

  • European deployments lead the way: European service providers account for 50% of Acme Packet's IMS projects, followed by 22% in Asia-Pacific, 15% in Central & South America and 13% in North America.

  • Interoperability with all major IMS vendors proven: Acme Packet SBCs are deployed with IMS core infrastructure (e.g., S/I-CSCF, HSS, application servers, etc.) provided by eight different major communications equipment vendors.

  • Wireline service delivery commands attention: Nearly two-thirds of Acme Packet's IMS projects (65%) deliver services only to wireline access networks. Both wireline and wireless networks are supported by 26% of the projects and wireless-only networks by 9%. These findings support our observation that wireline access networks are moving more rapidly to IP for voice service delivery than wireless access networks. All IP 4G networks such as mobile WiMAX and LTE present future new opportunities for IMS.

  • Access border is the SBC focus: Given the initial focus by service providers on delivering services to their own subscribers, SBCs are initially being used to protect and control the access border in 80% of Acme Packet's IMS projects. In another 13% of the projects, SBCs are being used at both the access and interconnect borders, and in the remaining 7% of projects at the interconnect border only. Interconnecting these networks to one another and non-IMS VoIP networks is an additional future opportunity.

  • Integrated SBC architecture prevails: Acme Packet's integrated SBCs, which control both SIP signaling and media, have been selected, on average, for nine out of ten projects. The other projects are using an Acme Packet's decomposed SBC solution -- a border gateway controlling just media under the direction of another vendor's SIP signaling element. In contrast with the decomposed SBC architecture, the integrated SBC provides superior border control functionality and performance, and is field-proven in hundreds of Acme Packet customer networks and in networks with hundreds of border points. The integrated SBC solution simplifies the network by eliminating the need for the H.248 control protocol between elements and greatly eases troubleshooting and support by consolidating border control in one system from a single vendor.

Harmonic Supplies Transcoding for 3 Italia Mobile TV

Harmonic's Rhozet Carbon Coder video transcoding solution has been selected by 3 Italia as part of its cross-media strategy, designed to deliver mobile TV over its DVB-H network. Harmonic said its solution was chosen to provide media transcoding due to its extensive format support, the high quality of its format output, as well as its transcoding speed and automated features. Financial terms were not disclosed.

In 2006, 3 Italia was the world's first mobile operator to offer a DVB-H mobile TV service. Since the service launch, 3 Italia's DVB-H mobile TV subscriber count has grown substantially to over 850,000. 3 Italia is currently implementing its mobile TV and Internet cross-media strategy, which brings broadcast TV, thematic channels, TV 2.0 and social networking to the mobile handset. Rhozet Carbon Coder is used to quickly and automatically transcode this content and make it available to 3 Italia's DVB-H network.http://www.harmonicinc.com

PMC-Sierra Posts Q3 Revenue of $139.4 Million, up 19% YoY

PMC-Sierra,reported Q3 2008 revenue of $139.4 million, an increase of 19% compared with net revenues in the third quarter of 2007 of $117.5 million. The company reported net revenues of $139.8 million in the second quarter of 2008.

Net income in the third quarter of 2008 on a GAAP basis was $16.2 million (GAAP diluted earnings per share of $0.07) compared with a GAAP net loss in the third quarter of 2007 of $5.9 million (GAAP net loss per share of $0.03).

"In the third quarter, we experienced solid growth in our WAN infrastructure business primarily due to strength in Asian telecom network build-outs," said Greg Lang, president and chief executive officer of PMC-Sierra. "We believe that we are well positioned in the WAN infrastructure, enterprise storage, and FTTH markets where we see new product cycle opportunities occurring over the next two years."

Cisco Launches Global Talent Acceleration Program in Bangalore

Cisco has launched a Global Talent Acceleration Program in Bangalore aimed at creating local engineering and sales talent in India and other emerging countries. India is the third country to be selected for the Cisco GTAP initiative, following the establishment of facilities in Amman, Jordan, and Johannesburg, South Africa.

Through the GTAP in India, Cisco plans to train Indian engineering students at the CCIE level, the highest stage professional certification offered by Cisco. Cisco Learning Solutions Partners, Datacraft, Fast Lane Global Knowledge, and NIIT will act as Cisco's initial primary partner delivery organizations in India.

Maxim Acquires Mobilygen for H.264 Silicon

Maxim Integrated Products agreed to acquire Mobilygen, a privately held, fabless semiconductor company specializes in H.264 video compression, for an undisclosed sum. Maxim said the acquisition will position it to become a key supplier to the $2B video security semiconductor market.

Mobilygen' MG3500 family of H.264 Codecs provide High Definition (HD) or Multi-Channel SD encoding, HD or Multi-Channel SD decoding in System On Chip (SOC) solutions. The MG1264 coprocessor provides a low power solution for Standard Definition (SD) encoding, decoding or full duplex applications. The company is based in Santa Clara, California.

Vijay Ullal, Maxim Group President, commented: "Video security is an important growth market for Maxim. The overwhelming majority of security cameras installed today are analog, whereas recording, storage, analytics, and IP streaming are digital. Video compression is therefore a strategic technology for Maxim in the analog-to-digital video signal path."http://www.maxim-ic.com
  • Mobilygen is headed by Chris Day (President and CEO), who previously was General Manager of Media Processing at Philips Semiconductor (now NXP), where he led Philips Trimedia DSP efforts into security, PMP, video-over-IP, automotive, and display markets. Before Philips, Chris was Senior Marketing Director for C-Cube Microsystems.

    The company's technical team is led by Sorin Cismas (CTO and founder), who previously was the Chief Scientist at Zoran Corporation.

Ceragon Confirms Q3 Guidance for 30% YoY Growth

Ceragon Networks, a supplier of Ethernet and TDM wireless backhaul solutions, confirmed its Q3 2008 financial guidance.

Ceragon expects revenues for the third quarter of 2008 to be approximately $58 million, an increase of about 30% from Q3 of 2007 and in-line with the company's previous guidance.

Gross margin is expected to dip to approximately 31% to 32% in Q3, primarily as a result of a spike in OEM-related revenues to about 43% of total revenues, compared with 31% of total revenues in Q2, as well as a less favorable geographic mix. Gross margin was 36% and 34% in Q3 of 2007 and Q2 of 2008, respectively.

As a result of the lower than expected gross margin in Q3, GAAP net income is expected to be approximately $3.2 to $3.6 million, or $0.08 to $0.09 per diluted share, compared with $3.7 million, or $0.11 per diluted share in Q3 of 2007.

"The Asia Pacific region continued to lead our growth during Q3," said Ira Palti, President and CEO of Ceragon. "As we expected, the EMEA region returned to more typical revenue levels in Q3 after a temporary dip in Q2, and we were pleased to see modest sequential growth in North America.... Our book-to-bill ratio of one in Q3 indicates healthy demand continues and we are targeting 35% growth in 2008 over 2007, but tempering our expectations for exceeding that target due to the level of global economic uncertainty. Meanwhile, the feedback from the field remains uniformly encouraging."

Verizon Adds Interactive Features for FiOS TV in NY

Verizon introduced a number of interactive features for FiOS TV service in New York. These include:

  • Streaming of Recorded HD Video -- Verizon's Home Media DVR now allows customers to stream recorded high-definition (HD) programs to six other TV sets throughout the home equipped with HD set-top boxes. The feature, which has been available for standard-definition programming,includes the ability to watch three separately recorded shows on three sets at the same time, plus pause recorded programming in one room and continue watching in another.

  • New channel sorting options -- Verizon FiOS TV customers now can create two separate lists of favorite channels for family members.

  • "Wait for Me" -- Customers can pause live programming, change channels, and then return to the paused program and pick up where they left off.

  • New free widgets -- including: daily national news and sports headlines; community news, based on the customer's zip code; daily horoscopes; What's Hot on FiOS TV.

  • Instant Upgrades -- Customers can watch VOD offerings from HBO, Cinemax and more by subscribing to these premium channel packages straight from the VOD menu. Customers who subscribe to a DVR can instantly upgrade to Verizon's Home Media DVR, bundled with the free Media Manager service, without calling Verizon to sign up.

  • Free casual games -- With the remote control, a customer can access chess, solitaire, wordplay and Sudoku from the FiOS TV Main Menu and play any one of them, at any time.

  • VOD Performance Enhancement -- Faster response times will enable customers to search and select VOD titles more quickly than before.

Verizon will also launch several other new features before year-end, including:

  • Fantasy Football -- FiOS TV customers who are registered users of ESPN Fantasy Football will have instant on-screen access to personalized NFL statistics, including rosters, box scores, scoring leaders and player information. FiOS TV customers will be able to access ESPN Fantasy Sports through FiOS TV widgets or games.

  • "My Videos" -- Customers will be able to access personal videos stored on their home computers and enjoy them on their TV sets. This feature is accessed through Verizon's Media Manager service, which already allows customers to stream personal music and photographs from their PCs to their TVs.

  • Remote DVR Programming -- Customers who subscribe to FiOS TV's Media Manager service will be able to remotely program their FiOS TV DVRs and set their Parental Controls through select Verizon Wireless handsets and through Verizon's FiOS TV Central Web site.

Nokia Posts Q3 Sales Decline, Mobile Shipments Rise

Nokia's third quarter 2008 net sales decreased 5% to EUR 12.2 billion, compared with EUR 12.9 billion in the
third quarter 2007. At constant currency, group net sales would have increased 1% year on year and
decreased 7% sequentially. The company said despite the global economic condition, it was able to achieve solid margins and operating cash flow of EUR 1.3 billion for Q3 because of its scale and low-cost structure. Some highlights of the report:

  • Nokia net sales of EUR 12.2 billion, down 5% year on year and down 7% sequentially (up 1% and down 7% at constant currency).

  • Devices & Services net sales of EUR 8.6 billion, down 7% year on year and down 5% sequentially (down 1% and 5% at constant currency).

  • Services and software net sales of EUR 115 million (billings of EUR 140 million).

  • Estimated industry mobile device volumes of 310 million units, up 8% year on year and up 2% sequentially.

  • Nokia mobile device volumes of 117.8 million units, up 5% year on year and down 3% sequentially.

  • Nokia estimated mobile device market share of 38%, down from 39% in Q3 2007 and down from 40% in Q2 2008.

  • Nokia mobile device ASP of EUR 72, down from EUR 74 in Q2 2008.

  • Devices & Services gross margin of 36.5% up sequentially from 36.1% in Q2 2008.

  • NAVTEQ net sales of EUR 156 million and non-IFRS operating margin of 18.5%.

  • Nokia Siemens Networks net sales of EUR 3.5 billion, down 5% year on year and down 14% sequentially (flat and down 14% at constant currency). Nokia Siemens Networks reported gross profit increased 4% to EUR 1.1 billion, compared with EUR 1.0 billion in the third quarter 2007, with a gross margin of 30.8% (28.3%).

The company issued the following guidance:

  • Nokia expects industry mobile device volumes in the fourth quarter 2008 to be up sequentially.

  • Nokia expects its mobile device market share in the fourth quarter 2008 to be at the same level or slightly up sequentially.

  • Nokia expects industry mobile volume will be approximately 1.26 billion in 2008, up from approximately 1.14 billion units Nokia estimated for 2007.

  • Nokia continues to target an increase in its market share in mobile devices in 2008.

  • Nokia and Nokia Siemens Networks continue to target for Nokia Siemens Networks market share to remain constant in 2008, compared to 2007.

  • Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007.

  • Nokia and Nokia Siemens Networks continued cost synergy target for Nokia Siemens Networks is to
    achieve substantially all of the EUR 2.0 billion of targeted annual cost synergies by the end of 2008, as
    previously announced.