Thursday, April 30, 2009

Lightower Selects Juniper for IP/MPLS

Lightower Fiber Networks, a leading digital fiber network and broadband service provider in the northeast United States, has expanded its network with Juniper Networks MX Series Ethernet Services Routers. Based on lab tests performed in conjunction with Juniper, Lightower estimates that the use of optimized IP/MPLS in its Carrier Ethernet networks will provide transit times measurably faster than other approaches such as pure Layer 2, while also providing superior traffic management and resiliency. Fast transit times, recovery and high availability are crucial for Lightower customers, such as financial institutions, when network downtime or lags can result in significant expense or lost business. In addition, Lightower is using the virtualization capabilities of the MX Series to maintain separation between different types of services running on the same router, enabling convergence of network services and functionality, while maintaining the appropriate levels of administrative separation.

Korea's Hyosung ITX Deploys Juniper Ethernet Services Router

Hyosung ITX, a major Korean business solution provider, has deployed Juniper Networks' MX Series Ethernet Services Routers to support its content deliver network (CDN), enables the streaming of high-quality video, smooth downloads for online games and maintenance software, and the caching of other high-bandwidth content. To manage content effectively, Hyosung ITX operates six server farms nationwide and employs data mirroring techniques to route data via the fastest and most reliable path from server to user. The network is using Juniper's MX960 and MX480 routers. Additionally, the unique firewall capabilities within the MX Series' JUNOS Software helps protect Hyosung ITX from network threats including Distributed Denial of Service (DDOS) attacks. Financial terms were not disclosed.

Ceragon Posts Q1 Revenues of $43.9 Million, Down 7%

Ceragon Networks, a supplier of high-capacity LTE ready wireless backhaul solutions, reported Q1 2009 revenues of $43.9 million, down 7% from $47.2 million for the first quarter of 2008 and down 23% from $56.8 million in the fourth quarter of 2008. Net income (GAAP) was $0.2 million or $0.01 per basic and diluted share, compared to net income of $4.3 million in the first quarter of 2008, or $0.12 per basic share and $0.11 per diluted share.

"Underlying long term growth drivers remain in place and we are encouraged by improving demand from expansion of GSM networks in India to accommodate record subscriber growth as well as signs of improving demand in North America ," said Ira Palti, President and CEO of Ceragon. "At the same time, we are still cautious about the near term outlook due to poor visibility, lengthening sales cycles, and customers' continuing focus on retaining cash. In this environment, our emphasis will continue to be on controlling costs and remaining as flexible as possible in order to react quickly, while preserving our capability to respond effectively when the pace of orders picks up."

Tellme to Provide "One Button" Voice Access in Windows Mobile 6.5

Microsoft's Tellme service will provide "one-button" access for Windows Mobile 6.5 phones due out this fall. The new service puts many of the most popular phone functions behind a single button. Windows phone users just press the side button of their phone to do the following:

  • Send a text by saying "text" to open a text box, then speak the text message and say "send" to send it to anyone in their contact list

  • Initiate a call simply by saying "call" and then the name of anyone in their contact list

  • Search the Web with Microsoft Live Search by speaking your request, such as "weather in San Francisco, California," "pizza in Kansas City," "movies" or "Mother's Day gift ideas".

Microsoft's Tellme Advances its Voice-in-the-Cloud Platform

Microsoft's Tellme group announced three core speech and network innovations that advance its platform for cloud-based voice services. These advancements include the rollout of a VoIP carrier service that reduces customer transport costs, advanced speech services that improve automation of customer service calls, and a new "voice font" technology that delivers a more natural text-to-speech experience. Because Tellme operates as an on-demand service, the new capabilities are immediately available to enterprises across Tellme's platform.

Customer phone inquiries represents a multimillion-dollar expense for many Fortune 1000 companies, with telecom being one of the largest technology costs. The companies said that by using Global Crossing's VoIP service, enterprises can extend their VoIP strategy to customer service calls and eliminate transfer fees, lowering the average per-minute cost 60 percent per call and reducing transfer fees by 100 percent.

The new speech services, which are a result of collaboration between Tellme and Microsoft's Speech Components Group,
are also expected to advance natural user interfaces across other Microsoft products. The Tellme service lets telephone callers use their voice to run queries and access specific information. The service currently handles billions of calls every year and is used by more than 40 million people every month. Tellme provided Microsoft with tuning data from its billions and billions of calls. This is being used to develop new acoustic models, phonetic dictionaries and grammar products that increase the accuracy of every response. The teams built an "online adaptation" capability in which the system can adapt to a caller's acoustic patterns within the first three seconds of speaking. These new platform features make it possible to get the right answer to the caller more often.

In addition, Tellme is now using these technologies to power its mobile services, including the forthcoming Windows Mobile 6.5 application.

QLogic Acquires NetXen for 10GigE Datacenter Silicon

QLogic, a supplier of high performance network infrastructure, has acquired NetXen, a start-up specializing in 10 Gigabit Ethernet networking chips for enterprise datacenters for approximately $21 million in cash.

QLogic said the deal provides it with complementary networking products and intellectual property. The acquisition further expands QLogic's expertise in strategic areas of technology and enables the company to better address a wider range of emerging customer requirements for converged networks.

NetLogic to Acquire IDT's Search Engine Assets

NetLogic Microsystems agreed to acquire certain assets associated with Integrated Device Technology Inc.'s (IDT) network search engine products for $90 million, plus the costs of inventory on hand. The acquisition includes IDT's search accelerator, network search engine and route accelerator product families and related patents and intellectual property.

NetLogic said these products and technologies will complement and further expand its existing portfolio of knowledge-based processors, NETLite processors and network search engines, and will further strengthen the relationships with NetLogic Microsystems' customer base.

Wednesday, April 29, 2009

Agilent Teams with Datang on TD-SCDMA

Agilent Technologies and Datang Telecom Technology & Industry Holdings agreed to collaborate in the development of TD-SCDMA and related technologies in the test and measurement areas. As the initiator of the TD-SCDMA 3G mobile communication international standard, the owner of core patents, the driver of industry development and the leader of equipment market, Datang Holdings plays a key role in the creation and global deployment of TD-SCDMA and TD LTE. Agilent and Datang Holdings will work together to support the TD-SCDMA.

Acme Packet Acquires Covergence for Software SBCs

Acme Packet has acquired privately-held Covergence, a supplier of software-based session border controllers (SBCs), for approximately $22.8 million, consisting of approximately $22.2 million of Acme Packet common stock and an aggregate of $0.6 million in cash payments to stockholders of Covergence and tax withholding payments.

Covergence, which is based in Maynard, Massachusetts, supplies SBC functionality as hardened Unix-based software for Intel x86-class servers. Applications include VoIP/IP telephony, Unified Communications and Service-Oriented Architecture (SOA) applications within global 1000 enterprises.

Acme Packet said Covergence's products complement its existing Net-Net family of custom hardware-based SBCs by extending the low-end product range to address the needs of small and remote enterprise locations. The Covergence acquisition will also add four of the Fortune 25 to Acme Packet's growing base of enterprise customers.

Comcast's Revenue Grows 5% in Q1, All-Digital Transition Underway

Citing customer upgrades to digital and advanced video services as well as continued growth in high-speed Internet (HSI),
Comcast's revenue from its cable operations increased 5% to $8.3 billion for the first quarter of 2009 as compared to $7.9 billion in the first quarter of 2008. The gains were partially offset by video customer losses and lower advertising revenue. The monthly average total revenue per video customer increased 8% from $106.70 to $115.27, reflecting an increasing number of customers taking multiple services.

Some highlights for the quarter:

  • As of March 31, 2009, Comcast's video, high-speed Internet and voice customers totaled 46.1 million, reflecting 549,000 net additions during the first quarter of 2009.

  • Comcast now serves over 15,258,000, a gain of 329,000 in the quarter.

  • Total Revenue Generating Units reached 63,426,000, up 6% compared to last year and a gain of 837,000 in Q1

  • Comcast added 298,000 Digital Voice accounts in Q1, giving it a total of 6,769,000 customers.

  • 300 million on-demand views per month

  • Voice ARPU is $39 per month.

  • Voice penetration is 14%

  • Free Cash Flow totaled $1.4 billion in the first quarter of 2009 as compared to $702 million in 2008, a 95% increase.

  • Consolidated capital expenditures decreased 19% from the prior year to $1.2 billion, or 13.1% of total revenue, reflecting a decreased level of capital intensity at Comcast Cable.

  • In a conference call, Comcast executives said new additions weakened in March and April due to the overall economy and increased video competition.

  • DOCSIS 3.0 is now deployed in 35% of the footprint with a goal of reaching 65% by year end

  • Comcast also provided an update on its all digital conversion. a project that is expected to add more bandwidth than any other improvement to its network infrastructure. The all-digital conversion will add 250 to 300 MHZ of bandwidth by moving 40-50 analog channels to digital and leaving just the lifeline basic channels in analog. The bandwidth gain makes room for more HD channels and ethnic programming. The upgrade does not impact lifeline basic customers who will continue to receive analog service For the 72% of the customer based currently served by digital service, only secondary TV sets inside the home without STBs will need to transition to a digital adapter. For the 14% of the customer base currently purchasing the expanded basic tier, Comcast will provide digital adapters. About 5% of the network footprint has already made the transition. Portland was the first market. The upgraded network and the new digital adapters are performing well. Three quarters of customers are choosing to self-install the digital adapters, resulting in far fewer truck rolls than forecast. The company also foresees an upside as digital customers are more likely to take on an additional service or to choose pay-per-view. The transition is built into 2009 and 2010 budgets.

Motorola Posts Q1 Sales of $5.4 billion

Motorola reports Q1 2009 sales of $5.4 billion. The total GAAP net loss in the first quarter of 2009 was $231 million, or $0.10 per share, which includes net income of $0.03 per share from discontinued operations. The GAAP net loss from continuing operations was $291 million, or $0.13 per share. The GAAP net loss from continuing operations includes net charges of $0.05 per share from highlighted items, primarily related to cost-reduction initiatives.

Some highlights from the quarterly report:

  • Mobile Devices segment sales were $1.8 billion, down 45 percent compared to the year-ago quarter.

  • During the quarter, Mobile Devices shipped 14.7 million handsets and estimates its share of the global handset market was 6.0 percent.

  • Motorola is aiming to deliver differentiated smartphone devices in the fourth quarter of 2009

  • During Q1, Motorola launched seven new phones, including three GSM devices, two 3G devices and two CDMA devices

  • Home and Networks Mobility segment sales were $2.0 billion, down 16 percent compared to the year-ago quarter.

  • Home and Networks Mobility shipped more than 4.3 million digital entertainment devices during Q1

  • Motorola introduced industry's first commercial receiver/decoder (IRD) to deliver three-channel MPEG-4 to MPEG-2 High Definition TV

  • Enterprise Mobility Solutions segment sales were $1.6 billion, down 11 percent compared to the year-ago quarter. GAAP operating earnings were $156 million, compared to operating earnings of $250 million in the year-ago quarter.

Equinix Opens Development Center in Singapore

Equinix announced the opening of a new global IT development center in Singapore. The facility will provide dedicated global application development support, database management and technical support services to all Equinix business units globally.

Verizon Enhances its Internet Security Suite

Verizon has enhanced its Internet Security Suite (VISS) for broadband subscribers with new Wi-Fi security capabilities. The VISS, which uses Radialpoint's ISP-delivered security and support technology, is available to Verizon FiOS Internet and Verizon High Speed Internet customers, as well as other broadband users.

The new Wi-Fi Security feature helps protect subscribers from hackers, eavesdroppers and other security threats associated with unsecured wireless networks and hot spots. When connecting to a wireless network, the service displays an alert if a network is unencrypted and, by providing simple how-to instructions, encourages users to set up encryption. When subscribers use public hot spots, Wi-Fi security can automatically turn off network discovery and sharing for increased security.

Other VISS capabilities include:

  • Virus Protection: Automatically safeguards customers from viruses,
    worms and Trojans. Simple to use, it offers automatic scans, updates
    and quarantines resulting in fewer support calls and a more secure

  • Spyware Protection: Detects and quarantines spyware before it attacks
    a PC. The service is automatically configured, updated and maintained.

  • Fraud Protection: Combats identity theft attacks and fraudulent
    campaigns conducted by e-mail, instant messaging (IM), blogs and Web
    hijacking techniques.

  • Firewall: Blocks unauthorized intrusions, malicious hackers and other
    hostile access attempts from both incoming and outgoing connections,
    with fully managed, automatically updated and customized firewall

  • Parental Controls: A secure, easy-to-use content-filtering program
    that allows subscribers to prevent their children from accessing
    inappropriate Internet content. Blocks millions of URLs, and also
    manages the use of online applications and the amount of time children
    spend online.

  • PC Optimizer: Offers subscribers a superior customer experience and
    maximized computer and Internet performance. With a full range of disk
    cleanup and optimization features such as defragmenting files, the
    service automatically improves system operation on a regular basis.

  • Pop-up & Ad Blocker: Helps ensure a faster and less cluttered browsing
    experience by blocking online ads such as pop-ups, pop-unders,
    banners, animations and tile ads.

  • Privacy Manager: Scans all outgoing communications for sensitive or
    identifying user information to help prevent its release without
    consent. It also provides control over how much information Web sites
    record about browsing habits, as well as a cleanup utility to
    automatically remove data traces left by browsers and programs.

Verizon sells f the security suite at a monthly price of $5.99 or as an annual subscription costing $59.99.

IBM Unveils Cloudburst Appliance

IBM introduced two new products to extend its service-oriented architecture (SOA) into a cloud services environment. These new offerings enable clients to easily create application environments that can be deployed and managed in a "private cloud". The goal is to combine the flexibility of SOA with the adaptability of the cloud. The new products include:

  • IBM WebSphere CloudBurst Appliance -- a new hardware appliance that provides access to software virtual images and patterns that can be used as is or easily customized, and then securely deployed, managed and maintained in a private cloud. The WebSphere CloudBurst, which IBM describes as the first hardware appliance of its kind, stores and secures WebSphere Application Server Hypervisor Edition images and patterns to be dispensed into a cloud. This helps customers develop, test and deploy business applications, ending the use of manual, complex or time-intensive processes associated with creating application environments. Once finished, resources are automatically returned to the shared resource pool and logged for internal charge-back purposes. WebSphere CloudBurst also manages individual user and group access, giving IT managers the right kind of access controls with optimal efficiency rates.

  • IBM WebSphere Application Server Hypervisor Edition -- a version of IBM WebSphere Application Server software optimized to run in a virtualized hardware server environments such as VMware, and comes preloaded in WebSphere Cloudburst.

As part of its public cloud initiatives, IBM is also announcing BPM BlueWorks, a cloud-based set of strategy and business process tools. BPM BlueWorks provides business users with the collateral they need to implement business strategies within their organizations based on industry-proven business process management techniques.

IBM noted a number of initiatives that allow customers to leverage its software in a cloud. IBM is working in collaboration with Amazon Web Services (AWS), a subsidiary of, Inc. to make IBM software available in the Amazon Elastic Compute Cloud (Amazon EC2). WebSphere sMash, Informix Dynamic Server, DB2, and WebSphere Portal with Lotus Web Content Management Standard Edition are available today through a "pay as you go" model for both development and production instances. In addition to those products, IBM is also announcing the availability of IBM Mashup Center and Lotus Forms Turbo for development and test use in Amazon EC2, and intends to add WebSphere Application Server and WebSphere eXtreme Scale to these offerings.

Obama Nominates Clyburn for FCC Commissioner

President Obama nominated Mignon L. Clyburn to serve as one of the five FCC Commissioners.

Since 1998, Mignon Clyburn has been a member of South Carolina's Public Service Commission, which regulates the state's investor owned public utilities, including providers of telecommunications services. The South Carolina General Assembly elected Clyburn as a Commissioner representing the Sixth Congressional District in May of 1998, and she has been re-elected three times. She chaired the Commission from 2002 to 2004. Clyburn is a past chair of the Southeastern Association of Regulatory Utility Commissioners. She is presently the chair of the Washington Action Committee of the National Association of Regulatory Utility Commissioners (NARUC).

Clyburn graduated from the University of South Carolina with a Bachelor of Science degree in Banking, Finance & Economics in 1984. Before her election to the Public Service Commission she spent fourteen years as the Publisher and General Manager of The Coastal Times, a weekly newspaper in Charleston, South Carolina.

One Minute Video: Test Authoring

Presented by:

Kingston Duffie, Founder and CTO, Fanfare Software

Defense Department's JITC Certifies Alcatel-Lucent's IP Routers

The U.S. Department of Defense's Joint Interoperability Test Command has certified the Alcatel-Lucent 7750 and 7710 Service Routers. The equipment will be added to the IPv6 Approved Products List.

IBM Global Finance Arranges up to $2 Billion to Support Stimulus

In a bid to support the rollout smart technology solutions tied to the American Recovery and Reinvestment Act (ARRA), IBM Global Financing is making up to $2 billion available to finance IT initiatives in key economic stimulus areas. The move will help US organizations move ahead with IT projects that could improve their infrastructure or competitive edge and point them in the direction of economic recovery. IBM noted that its consulting and technology business units are active in some of the key stimulus areas identified in the Act -- including the Smart Grid, Health Information Technology and Broadband Access.

Integrated Device Technology and Tundra Sign Merger Agreement

Integrated Device Technology (IDT) and Tundra Semiconductor signed a definitive acquisition agreement under which IDT will acquire Tundra for CDN$6.25 per share, for an aggregate purchase price of approximately CDN$120.8 million.

Gennum, which had made an earlier offer to acquire Tundra, declined to match the IDT bid.

"IDT is excited about the proposed acquisition of Tundra. We look forward to better serving our customers by utilizing the Tundra core strengths in serial switching and bridging using PCI Express, RapidIO and VME, with the existing IDT mixed signal product portfolio," said Dr. Ted Tewksbury, president and CEO at IDT. "We believe the result of this transaction will provide our customers with a broader product offering as well as improved service, support and future roadmap of serial connectivity innovations. This transaction reflects our commitment to extending our technology leadership in the communications end market, which is particularly critical in the current challenging economic environment."

"Tundra is excited to bring this opportunity to shareholders and customers," said Daniel Hoste, President and Chief Executive Officer of Tundra. "We believe that the combined technology innovation capability of the two companies will allow our customers better service, products, and support with their increasingly complex communications solutions."

Airtel Picks Alcatel-Lucent for Managed Services, Tops 96 Million Mobiles

Bharti Airtel and Alcatel-Lucent have formed a joint venture to manage Bharti Airtel's pan-India broadband and telephone services and help Airtel's transition to next generation networks. A new legal entity is being formed which will be operated by Alcatel-Lucent.

Under the joint venture, Alcatel-Lucent will design, plan, deploy, optimize and manage Bharti Airtel's broadband and telephone network across India. This managed services partnership will include all end-to-end activities -- service rollout, installation and fault repair, service continuity and transformation. It will support Bharti Airtel's transformation to next generation networks, offering advanced services like high-speed internet, triple play, media-rich VAS, MPLS, VPN for both retail and business customers. The partnership will also drive optimal capital investment and increase operational efficiency by moving voice and data traffic onto a single, 'packetized' infrastructure.

Separately, Bharti Airtel reported earlier this week that it now has over 96 million mobile users. The company's consolidated total revenues for the quarter ended March 31, 2009 of Rs. 9,825 crore grew by 26% and EBITDA of Rs. 4,001 crore grew by 23% on a year on year basis. Bharti Airtel estimates that it holds a 24% market share of all India wireless subscribers. This market share figure is up from 23.7% corresponding to the same period of last year.

Ericsson Sees Limited Impact from Global Downturn, Sales up 5%

Ericsson's ales in Q1 2009 increased 12% year-over-year and 16% for comparable units, i.e. excluding Ericsson Mobile Platforms and PBX operations. Excluding currency exchange rate effects, growth amounted to 5% for comparable units.

"We have started the year with good growth ahead of the market and a positive margin trend but with a weaker cash flow," said Carl-Henric Svanberg, President and CEO of Ericsson. "Sales of network infrastructure are stable and the demand for professional services is growing. We have won several strategic contracts during the quarter, including 3G for China Unicom, 4G for Verizon Wireless and managed services for Vodafone UK."

"The effects of the global economic recession on the global mobile network market are so far limited. We have seen operators, in a few markets where local currencies have depreciated dramatically, postpone investments. Some operators are also more cautious with longer-term investments in fixed networks, such as rollout of fiber networks. Most operators, however, have healthy financial positions, there is a strong traffic growth and the networks are fairly loaded."

Ericsson noted that worldwide mobile subscriptions grew by some 181 million in the quarter to a total of 4.16 billion. The number of new WCDMA subscriptions is accelerating and grew by 27 million in the quarter to a total of 319 million. In the twelve-month period ending December 31, 2008, fixed broadband connections grew by 18% year-over-year to close to 400 million, adding nearly 60 million subscribers.

Some additional highlights from the quarterly report:

  • Ericsson's cost reduction activities are running according to plan, targeting annual savings of SEK 10 b. from the second half of 2010.

  • Networks sales increased by 12% year-over-year, positively impacted by a weaker SEK. Sales, excluding network rollout, were up with especially strong performance in China, India and the US. Sales of network rollout services decreased 38% sequentially, reflecting a lower proportion of turnkey projects. The increase in operating margin was a result of the weaker SEK, business mix and lower costs, despite a negative impact from the ongoing large rollouts in China and India.

  • Professional Services sales increased by 28% year-over-year. Growth in constant currencies amounted to 10%. Managed services continued to grow substantially and were up 34% year-over-year. The growing interest for managed services is driven by operators' increased focus on cost, especially in the current market environment. Operating margin in the quarter reached 15% (14%) due to continued efficiency gains.

  • During the quarter, five new managed services contracts were signed, including key contracts with T-Mobile and Hutch for their shared network in UK and with Vodafone UK. The total number of subscribers in managed operations is now 275 million, of which 60% are in high-growth markets.

  • Multimedia sales increased by 25% year-over-year for comparable units, i.e. excluding divestment of the PBX operations and Ericsson Mobile Platforms. Revenue Management and IPX (multimedia brokering) continued to show good growth. Some cable and satellite operators are postponing TV investments. Operating margin in the quarter for comparable units was 2% (-9%).

  • Ericsson's joint ventures, Sony Ericsson and ST-Ericsson, are affected by the economic downturn and the dramatic decline in consumer demand for handsets.

  • Sony Ericsson shipped 14.5 million mobile phones in the quarter were 14.5 million, a decrease of 35% year-over-year. Sales in the quarter were EUR 1,736 million, a decrease of 36% year-over-year. Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels. Gross margin declined both year-on-year and sequentially, reflecting a change in the product mix, material write-offs, and exchange rate volatility.

  • ST-Ericsson, which was formed in February 2009 by merging STMicroelectronics' wireless business and Ericsson Mobile Platforms, was significantly affected by the slowdown in the handset market and ongoing de-stocking among operators. A cost adjustment program of USD 250 m. was launched in the fourth quarter 2008, and is under execution. An additional cost reduction program of USD 230 m. has been launched to adapt to current market conditions.

  • In terms of regional patterns, Ericsson said Asia Pacific sales increased by 26% year-over-year. The company describes the mobile broadband rollout in China as the largest ever in the world and notes that it is being done in record time.

  • Deliveries are high also to India, Indonesia and Vietnam. The development is strong also in Japan, where operators are building mobile broadband networks and the consumer demand for subscriptions bundled with laptops has quickly created a new market. Operators in Bangladesh and Pakistan are slowing investments due to difficult local business environment.

  • Latin American sales increased by 5% year-over-year with continued expansions of 2G networks as well as rollout of mobile broadband. Brazil and Mexico showed good development while some countries in the region were slower. In addition, there is a growing demand for managed services across the region.

  • North American sales increased by 21% year-over-year. The rollout of mobile broadband continues and the underlying growth is good. The contract with Verizon Wireless for a nationwide 4G/LTE network was especially encouraging as Verizon Wireless is a new customer to Ericsson. Revenue from this contract will mainly affect 2010. There is an emerging interest for managed services also in this region.

TeliaSonera International Carrier Selects Infinera for US Network

TeliaSonera International Carrier, one of the leading pan-European wholesale providers of quality cross-border IP, voice and wholesale services, has selected Infinera to build a new nationwide network in the United States. Financial terms were not disclosed.

TeliaSonera International Carrier offers services on more than 43,000 kilometers (27,000 miles) of its own fiber optic network throughout the world. The carrier is upgrading its nationwide US network by deploying the Infinera DTN in order to support its vision of becoming "the global IP carrier of choice."

AMCC Licenses Elliptic's 3G Security

AppliedMicro (AMCC) has licensed Elliptic's SNOW 3G security engine in support of AppliedMicro customers implementing 3GPP LTE (Long Term Evolution) base stations. AMCC's Power Architecture family of processors is targeted at mobile base stations for the 3GPP LTE standard. The engine supports a high bandwidth SNOW 3G cryptographic core required by the new standard as well as direct memory access (DMA) capability. This DMA feature allows the security engine to act as a co-processor to the PowerPC processor and it can take full control of the system bus and independently process LTE traffic requiring encryption and authentication. This completely offloads the PowerPC from the security processing, allowing it to handle the other packet processing and management tasks required in the base station.

Tuesday, April 28, 2009

Quantenna Raises $14 Million for its 4X4 MIMO 802.11n Chipsets

Quantenna Communications, a start-up based in Fremont, California, raised $13.85 million in Series C funding for its 4X4 MIMO 802.11n chipsets designed for next gen home networking applications.

Quantenna leverages dynamic digital beamforming to deliver very high-speed wireless coverage throughout the whole home for sharing high definition (HD) video and multimedia content between home gateways and TVs. Quantenna's silicon is targeted at devices such as home residential gateways, set-top boxes, routers, HDTVs and consumer electronic devices, which all require high bandwidth and reliability to support whole home HD video distribution and networking over standard Wi-Fi networks.

The new funding was led by new investor Southern Cross Venture Partners, with participation from existing investors Grazia Equity GmbH, Sequoia Capital, Sigma Partners and Venrock Associates. In addition, Southern Cross Venture Partners Managing Director Dr. Larry Marshall has joined Quantenna's board of directors. With this latest round, total investment in the three-year old wireless semiconductor company now exceeds $42 million.
  • Quantenna's management team includes Dr. Behrooz Rezvani (founder, chairman and chief executive officer) and Dr. Andrea Goldsmith (co-founder and chief technology officer.) Prior to founding Quantenna, Dr. Rezvani founded Ikanos Communications in 1999 and served as chief technology officer through its successful IPO in 2005. Dr. Goldsmith is also a professor of electrical engineering at Stanford University and a recognized expert in the field of wireless communications and networks, with an emphasis on MIMO systems, adaptive transmission, and QoS for wireless applications.

Qwest's Revenue Declines 7% YoY as Wireless Transition Gets Underway

Qwest Communications reported Q1 revenue in the quarter was $3.2 billion, a decline of 7 percent compared to $3.4 billion in the first quarter of 2008 and a decline of 4 percent compared to the fourth quarter of 2008. In the quarter, net income was $206 million, an increase of 37 percent compared to $150 million for the first quarter of 2008. Earnings per share for the quarter were 12 cents, a 50 percent increase from the first quarter of 2008.

Total revenue for the first quarter of $3.2 billion reflects 5 percent year-over-year growth in data, Internet and video revenue, which was offset by a decline of 11 percent in voice revenue and lower wireless revenue. Data and Internet revenue growth was the result of strong service revenue growth in both Business Markets and Mass Markets. Voice revenue results reflect lower access lines and the company's efforts to improve the profitability of its wholesale long-distance business, while wireless results include the impact from the migration to the resale platform.

As expected, Qwest's move from a wireless MVNO model to a reseller model beginning in the third quarter of 2008 impacted reported revenue comparisons in the period. Excluding wireless MVNO services, revenues decreased 5 percent vs. the first quarter of 2008 and declined 3 percent sequentially. Qwest transitioned nearly 100,000 customers from its wireless MVNO operation to the Verizon Wireless resale platform in the quarter and reported 30,000 net wireless additions. Qwest has announced that it expects to terminate its wireless MVNO services in October of this year. Qwest also reported strong growth in video subscribers, adding 34,000 customers in the quarter through its partnership with DIRECTV.

Qwest said it is making steady progress on profitability goals with all segments reporting year-over-year and sequential improvement in segment margin percentages.

"Disciplined execution and focus on cost controls have produced a strong start to the year given the current economic climate", said Edward A. Mueller, Qwest Chairman and CEO. "We are seeing tangible results from our focus on our key strategies to perfect the customer experience, including demand for our leading data services and strong results from our partnerships. We continue to tightly manage spending and investments to preserve financial strength and mitigate near-term economic pressures."

Some additional highlights:

  • At the end of the first quarter, Qwest was serving 2.9 million broadband subscribers, which is an increase of 7 percent from the year-ago period.

  • The video subscriber base was 832,000 at the end of the period, an increase of 21 percent from the first quarter of 2008.
    Mass market access lines were 7.5 million at the end of the quarter and declined at an annual rate of 11.4 percent in the period.

  • The total wireless base at the end of the first quarter was 747,000, with about 60 percent of customers being served on the Verizon Wireless platform.

  • Wholesale Markets segment revenue was lower in the quarter due to lower long-distance volumes and a decline in access revenue. Revenue was impacted by the company's continued focus on improving wholesale profitability.

  • Capital spending in the quarter was $334 million, a decrease of 20 percent from the year-ago quarter and 7 percent sequentially. The decline in capital expenditures was mostly due to project timing. A significant portion of capital investment continues to be focused on broadband expansion, including fiber to the node.

  • Qwest continues to expect full year 2009 adjusted free cash flow will be $1.4 to $1.5 billion. Full year adjusted EBITDA is expected to be $4.2 to $4.4 billion, inclusive of an expected increase in non-cash pension and OPEB expense of $200 million. Capital expenditures are expected to be $1.8 billion or lower.

LSI Posts Q1 Revenue of $482 Million, Down 27% YoY

LSI's first quarter 2009 revenues were $482 million, a 27% decrease year-over-year compared to $661 million reported in the first quarter of 2008, and down 21% sequentially compared to $610 million reported in the fourth quarter of 2008. First quarter 2009 GAAP net loss was $104 million or 16 cents per share, compared to first quarter 2008 GAAP net loss of $14 million or 2 cents per share. First quarter 2009 GAAP results compare to fourth quarter 2008 GAAP net loss of $606 million or 94 cents per share. First quarter 2009 GAAP net loss included a net charge of $86 million from special items, consisting primarily of $42.7 million of amortization of acquisition-related items, $25.2 million in net restructuring and other items and $18 million of stock-based compensation expense.

"Despite continued macroeconomic uncertainty, our first quarter revenues were above the midpoint of our guidance range with our storage semiconductor and networking businesses demonstrating strength late in the quarter," said Abhi Talwalkar, LSI president and chief executive officer. "We have also significantly lowered our operating expenses while continuing to invest in key opportunities which position us to grow at above-market rates coming out of the downturn."

Extreme's BlackDiamond Ethernet Switches Gain RUS Certification

Extreme Networks' Ethernet solutions, including its BlackDiamond Ethernet transport switches and certain Summit Series Ethernet switches, are now listed by the U.S. Department of Agriculture's Rural Development Telecommunications Program as acceptable for deployment by companies using USDA Rural Utilities Service (RUS) funding to build networks.

Wisconsin's Vernon Telephone Deploys Extreme Carrier Ethernet Switches

Vernon Telephone Cooperative, an independent local exchange carrier servicing customers in southwestern Wisconsin, has selected Extreme Networks' Carrier Ethernet solutions, including its recently announced BlackDiamond 20808, to deliver Triple Play services to its 7,000 customers in nine rural communities. Specifically, Extreme Networks has provided Vernon Telephone Cooperative with BlackDiamond 20808 metro Ethernet transport switches for the core, as well as Summit X450 aggregation switches for the edge. Financial terms were not disclosed.

CP Technologies Releases Portable 3G Wireless Router

CP Technologies introduced a portable 3G wireless router that lets the user share a UMTS, EV-DO, or HSDPA network with any Wi-Fi enabled device. The LevelOne MobileSpot Portable Wireless Hotspot (WBR-3800) provides CardBus slot for inserting a compatible broadband wireless data card. The Mac and PC compatible MobileSpot is 802.11b and 802.11g compliant and offers enhanced security features including WPA, WPA-PSK/WPA2-PSK authentication with TKIP/AES encryption as well as advanced firewall protection when connected to the Internet. It also provides port-forwarding, SSID enable/disable functionality, MAC address filtering and VPN pass-through of PPTP, L2TP and IPSec secured data connections.

The router comes equipped with a 10/100Mbps Ethernet switch with auto-negotiation and MDI/MDI-X support as well as a 10/100Mbps WAN interface for broadband Internet access with a DSL or cable modem.

The estimated street price of $149.

China Mobile Takes Stake in Taiwan's Far EasTone

China Mobile will acquire a 12% equity stake in Taiwan-based Far EasTone Telecommunications Co.. Specifically, China Mobile will acquire 444,341,020 new shares of Far EasTone, representing 12% of its enlarged issued share capital, for approximately NT$17.77 bn (approximately HK$4.08 bn) in total or NT$40.00 (approximately HK$9.17) per share.

China Mobile and Far EasTone also agreed to cooperate closely in a number of areas, including procurement, roaming services, data and value-added services, and network and technology advancement.

China Mobile said the strategic alliance will facilitate its expansion especially amongst customers doing business on both sides of the Taiwan straights.

"This cooperation is not only a strategic milestone in ramping up our business initiatives, but also a big leap for the Taiwan telecommunications industry. Throughout our corporate history, Far EasTone has benefitted from technological and strategic partnerships with leading global operators. We launched with AT&T and subsequently entered into strategic cooperation with NTT DoCoMo, SingTel and now China Mobile. This new partnership will provide us with a very strong platform to grow," said Mr. Douglas Hsu, Chairman of Far EasTone.

Goldman Sachs (Asia) L.L.C. and China International Capital Corporation Limited act as the financial advisers to China Mobile in this transaction.

Taiwan's Chunghwa Telecom Sees 3.6% Revenue Decline

Citing the global economic condition and the increasing market competition, Chunghwa Telecom reported that total revenue for the first quarter of 2009 decreased by 3.6% year-over-year to NT$49.1 billion, of which 26.7% was from fixed-line services, 35.8% was from mobile services, 25.4% was from Internet and data services, and the remainder was mainly from handset sales from Chunghwa's subsidiary SENAO on a consolidated basis.

For the mobile business, total revenue for the first quarter of 2009 amounted to NT$17.6 billion, representing a decline of 3.1% year-over-year. The Internet and data revenue slightly decreased by 0.5% year-over-year to NT$12.5 billion, mainly because of the tariff cut for ISP and ADSL services.

The fixed-line revenue totaled NT$13.1 billion, decreasing 8.9% year-over- year. The local and domestic long distance revenues were decreased by 6.2% and 10.1% respectively, for the first quarter of 2009. These decreases were mainly due to the overall economic downturn, mobile and VOIP substitution. The international long distance revenue was decreased by 14.4% year-over-year, as a result of the overall economic downturn, VOIP substitution and the market competition.

Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer of Chunghwa Telecom commented, "For the first quarter of 2009, we continued to executive on our strategic focus of maintaining market leadership for our core services as well as expanding our digital-converged services such as broadband and mobile value-added services, MOD/IPTV, and key enterprise solutions. As a result, we are able to stabilize our top-line performance under the current adverse economic situation."

Some highlights for the period:

  • The capex for the first quarter of 2009 amounted NT$4.7 billion, a 13.8% decrease compared to that for the same period in 2008. Among the NT$4.7 billion capex, 73.6% was for wireline and 17.0% was for wireless.

  • As of the end of March 2009, total HiNet subscribers decreased 0.4% year- over-year. Overall, the company had 4.3 billion broadband subscribers (including ADSL and FTTx subscribers) at the end of March 2009, representing a 0.6% growth year-over-year. By the end of the first quarter of 2009, FTTx subscriptions with an average service speed of 10Mbps reached 1.19 million, representing 27.7% of total broadband subscribers.

  • As of the end of the first quarter of 2009, Chunghwa had 686,000 MOD subscribers, equivalent to 57.6% year-over-year increase.

  • As of March 31, 2009, Chunghwa had 8.98 million mobile subscribers, up 2.9% compared to 8.72 million as of the first quarter of 2008.

  • Chunghwa remained the leading mobile operator in Taiwan. According to statistics published by the ROC National Communications Commission, the company's total subscriber market share (including 2G, 3G and PHS) was 35.1%, while the company's mobile revenue share was 34.0% as of the end of February 2009.

  • As of March 31, 2009, Chunghwa had 3.85 million 3G subscribers, representing a 48.9% increase as compared to that of the end of March 2008.

  • Mobile VAS revenue for the first quarter of 2009 was NT$2.05 billion, posting a 18.5% increase year-over-year. Of this increase, SMS revenue was up 12.9% and mobile Internet revenue increased by 49.6% year-over-year, respectively.

  • As of the end of the first quarter of 2009, the company maintained its leading fixed-line market position, with fixed-line subscribers totaling 12.66 million. According to statistics published by the ROC National Communications Commission, the company's fixed line subscriber market share was 97.3%.

ARRIS Reports Q1 Revenue of $254 Million

ARRIS expects Q1 2009 revenues of $253.5 million as compared to first quarter 2008 revenues of $273.5 million and as compared to fourth quarter 2008 revenues of $292.4 million. Non-GAAP net income in the first quarter 2009 was $0.18 per diluted share, as compared to the first quarter 2008 of $0.12 per diluted share and the fourth quarter 2008 of $0.25 per diluted share.

Order backlog at the end of the first quarter 2009 was $155.0 million and the Company's book to bill ratio in the first quarter was approximately 1.16. This amount compares to order backlog of $114.8 million and book to bill ratio of 0.90 for the fourth quarter of 2008.

"Although macro-economic conditions caused 2009 to start off somewhat slowly, we delivered a solid quarter with significantly higher earnings than a year ago," said Bob Stanzione, ARRIS Chairman & CEO. "During the quarter we have seen positive signs in our business that, coupled with the current plans of our customers, gives me cautious optimism that our business will gain momentum in the second quarter and beyond."

"We are off to a solid start to the year, particularly in light of the overall market conditions and I am pleased to see strengthening demand in the second quarter," said David Potts, ARRIS EVP & CFO. "As a result, we now project that revenues for the company in the second quarter 2009 will be in the range of $270 to $290 million with non-GAAP net income per diluted share in the range of $0.20 to $0.24 and GAAP net income per diluted share, in the range of $0.12 to $0.16."

Ixia Offers Testing for Virtualized Data Centers

Ixia announced its expansion into virtual network and virtualization testing. Legacy network resources are straight-forward to isolate, balance and test. However, new virtual infrastructure makes it extremely challenging to isolate the network functions and bottlenecks and data center managers need to evaluate system performance under load.

Ixia said its new IxVM product enables data center managers to assess virtual infrastructure performance and capacity. IxVM builds on the company's library of layer 2-7 performance test tools that discover, manage and automate testing in large virtualized environments. The IxVM products can test layer 2/3 virtual network resources and layer 4-7 virtual applications.

IxChariot VM, a component of IxVM, uses software endpoints -- small software components that run on each virtual machine -- that send and receive test traffic, while measuring performance. This makes it possible to source traffic from virtual servers in the same manner as the supported applications. IxExplorer VM uses software endpoints to generate layer 2/3 traffic to test features such as VLAN and QoS.

IxVM allows:
  • performance testing of thousands of VMs simultaneously with real world application traffic

  • independent measurement and convergence testing of VM migration

  • tuning of virtual resources such as servers and NICs

  • measurement of key performance indicators like delay, jitter or packet loss through virtual switches

  • testing of network performance variances when running applications over different operating systems

Sonus Joins Avaya DevConnect Program for SIP Trunks

Sonus Networks has joined the Avaya DevConnect program to accelerate the rapid deployment and use of SIP based IP business trunks. Avaya's program supports the development, compliance-testing and co-marketing of innovative solutions that are compatible with standards-based Avaya solutions. Sonus IP Business Trunks replace legacy TDM voice circuits, making it easier for carriers and enterprises to connect disparate locations, overlay new services and reduce operating costs by eliminating duplicate PRI circuits for voice and data.

Verizon Business Launches De-Duplication Remote Backup for Corporate Networks

Verizon Business is launching a Remote Backup and Restore managed service for corporate servers and PCs -- without overburdening corporate networks. Using "de-duplication" technology, Verizon's new offering employs "variable block size" analysis, a specialized feature that automatically identifies new data for storage and greatly reduces the amount of data transmitted daily. This eliminates the backup of redundant data, reducing network bandwidth and storage capacity requirements for enterprises.

Verizon Business said that unlike many other backup and restore services that can tax a network and slow delivery of mission-critical applications, its Remote Backup and Restore service operates in the background at a low priority.

The new software-as-a-service (SaaS)-enabled capabilities consist of hosted, secure backup and restore solutions for both PCs and servers. Verizon Remote Backup and Restore -- PC is now available in the U.S. and Europe, and will be available in the Asia-Pacific region later this year. This offering joins the Verizon Remote Backup and Restore -- Server service, which has been available in the U.S. since 2006 and is now available to enterprise customers in Europe and the Asia-Pacific region.

Pricing is usage-based, so that enterprises pay for the amount of data stored.

Verizon Business noted that it already offers e-mail, anti-virus, server monitoring and conferencing applications, as well as wide-area network reporting tools, via a SaaS delivery model. The company's SaaS focus is part of a long-term strategy to offer customers flexibility and choice when purchasing IT solutions. These SaaS capabilities leverage Verizon Business' expansive data center footprint spanning 22 countries and one of the most expansive global IP networks, setting the stage for additional SaaS deployments.

NSN Launches High-Density hiT 7080 Optical Transmission Platform

Nokia Siemens Networks has launched version 4.2 of its hiT 7080 multi-service optical network platform. As a metro/core platform, the hiT 7080 is capable of supporting switching capacities of 40G low order and 340G high order as well as multiple interfaces including: Fast Ethernet, Gigabit Ethernet and 10G Ethernet connections. In addition, the platform offers a high degree of automation as well as remote management features.

With a higher port density than previous versions -- 16 versus eight -- the new hiT 7080 reduces the number of extra cards and platforms required, resulting in considerable operational savings in terms of space and power consumption. It is a Multiservice provisioning platform offering direct interworking with DWDM via colored interfaces and OTU2 interfaces (ODU1 multiplexing into ODU2 is supported), providing operators with more choice in networking design and enhanced application possibilities.

"As they gear-up to cope with the 100-fold growth in global data traffic we expect to see between now and 2015, our customers are demanding a platform which provides the opportunity to evolve towards more efficient, packet networking of converging fixed and mobile networks", said Mikko Lavanti, head of Nokia Siemens Networks' business line Next Generation Metro.

NSN noted that its Next Generation Metro portfolio has a strong installed base with more than 150 customer networks in over 100 countries.

Aricent and the IMS Forum Offer NGN Testing Resources

Aricent and the IMS Forum have teamed up to launch a new web resource to serve as industry-wide collaborative platform of comprehensive test cases for the validation of IMS and NGN equipment and services.

The site offers community-based, open repository for NGN testing that allows network equipment manufacturers and service providers to significantly reduce the time, complexity, and cost required to introduce next generation networks and services, including equipment such as multimedia gateways, home subscriber and application servers, and services including voice and multimedia over IP, converged Web-telephony services and IPTV.

The repository will allow equipment manufacturers and service providers to download, post and share global testing experiences, quickly creating a high value knowledge base. This approach will help minimize the time spent on test case development, planning, writing and preparation, and accelerate the testing cycle for NGN architectures while reducing complexity and time to market.

The IMS Forum's TestNGN and Interoperability Working groups are focused respectively on the product interoperability, reliability and operational and management issues associated with converged IMS and NGN applications and services delivered over wireless (3G, LTE), wireline (DSL, optical) and cable broadband. The groups ensure that converged applications and the vehicles which deliver such services will be timely and well supported from a provisioning, billing and management systems perspective.

Aricent has developed an extensive NGN testing practice, employing more than 1,600 test engineers and test consultants. The practice has over 70,000 test cases for wireless, VoIP and IMS, all designed to speed the worldwide delivery of Next Generation Networks.

Monday, April 27, 2009

Tellabs Reports Q1 Revenue of $362 Million

Tellabs' first-quarter 2009 revenue totaled $362 million, down 22% compared with $464 million in the first quarter of 2008. Tellabs earned $7 million or 2 cents per share on a GAAP (U.S. generally accepted accounting principles) basis, compared with $17 million or 4 cents per share in the year-ago quarter.

GAAP gross profit margins were 44.2% in the first quarter of 2009, higher than in any quarter since the third quarter of 2006.

"Tellabs continues to focus on improving profitability - both our customers' and our own - by helping customers generate new revenues, reduce capital expenses and cut operating expenses," said Rob Pullen, Tellabs president and chief executive officer. "

For the first quarter of 2009, broadband segment revenue was $178 million, transport segment revenue was $130 million and services segment revenue was $54 million.

Compared with the first quarter of 2009, Tellabs expects second-quarter revenue to be flat to up by a high-single-digit percentage. Non-GAAP gross margin is expected to be flat, plus or minus a point or two, as a result of product mix.

Level 3 Reports Post Q1 Revenue of $980 million, 150 Job Cuts

Level 3 Communications reported consolidated revenue of $980 million for the first quarter 2009, compared to consolidated revenue of $1.09 billion for the first quarter 2008. Total Communications Revenue for the first quarter 2009 was $962 million, versus $1.07 billion for the first quarter 2008.The net loss for the first quarter 2009 was $132 million, or ($0.08) per share, which compared to a net loss of $190 million, or ($0.12) per share for the first quarter 2008. Net income for the fourth quarter 2008 was $43 million, or $0.03 per basic share and ($0.03) per diluted share.

"Despite the challenging economic climate and the expected pressure on top line growth, we saw improvement in Adjusted EBITDA," said James Crowe, CEO of Level 3. "We believe the fundamental demand for applications like video over the Internet and wireless data remain solid, and we are well positioned to take advantage of future market growth."

"While we remain cautious, we are seeing trends that point to stabilization in our Core Communications Services revenue base. We expect revenue pressure to continue in the second quarter although at a significantly moderating rate. Our funnel of future sales opportunities remains strong and our quoting and proposal activity has increased, particularly in our Business Markets Group. Customers who were delaying purchases are starting to place orders, and our signed order volume has trended upward. Our churn trends also began to show improvement late in the first quarter.

"We continue our focus on cost improvements and expect to reduce headcount by approximately 150 during the second quarter. This will result in a $6 to $7 million severance charge in the second quarter. Our capital expenditures of $78 million in the first quarter are a good indication of the quarterly trend for the year," said Patel.

Comcast Launches 50 Mbps DOCSIS 3.0 in Boston

Comcast has launched DOCSIS 3.0 service for small- and medium-sized businesses in the Greater Boston area, offering speeds of up to 50 Mbps.

Starting this week, Comcast will offer two new tiers of wideband service - Deluxe at 50 Mbps ($190 per month) and Premium at 22 Mbps ($100 per month) -- to small and medium-sized businesses in more than 300 communities in Massachusetts and Southern New Hampshire.

Online Video Surges 11% in March over February

U.S. Internet users viewed 14.5 billion online videos during the March, representing an increase of 11 percent versus February, according to the latest data from the comScore Video Metrix service.

In March, Google Sites once again ranked as the top U.S. video property with 5.9 billion videos viewed (40.9 percent online video market share), with accounting for more than 99 percent of all videos viewed at the property. Fox Interactive Media ranked second with 437 million videos (3.0 percent), followed by Hulu with 380 million (2.6 percent) and Yahoo! Sites with 335 million (2.3 percent). March represented the first time Hulu has cracked the top three in the ranking of videos viewed.

Nearly 150 million U.S. Internet users watched an average of 97 videos during the month. Google Sites eclipsed the 100 million online video viewer threshold once again, after first achieving the milestone in December 2008. Fox Interactive ranked second with 55.2 million viewers, followed by Yahoo! Sites (42.5 million) and Hulu (41.6 million).

Other notable findings from March 2009 include:

  • 77.8 percent of the total U.S. Internet audience viewed online video.

  • The average online video viewer watched 327 minutes of video, or nearly 5.5 hours.

  • 99.7 million viewers watched 5.9 billion videos on (59.1 videos per viewer).

  • 47.4 million viewers watched 349 million videos on (7.4 videos per viewer).

  • Hulu accounted for 2.6 percent of videos viewed, but 4.9 percent of all minutes spent watching online video.

  • The duration of the average online video was 3.4 minutes.

Green Packet and GCT Semiconductor Target Wi-Fi-WiMAX Roaming

GCT Semiconductor, which supplies mobile WiMAX silicon, and Green Packet, adeveloper of next generation mobile broadband and networking solutions, announced a strategic collaboration to offer a seamless solution for wireless devices to roam between WiFi and WiMAX networks.

The solution includes GCT's single-chip supporting both mobile WiMAX IEEE 802.16e Wave 2 and WiFi 802.11 b/g, and Green Packet's Intouch Connection Manager (CM) software. Green Packet's software combines intelligent connection management, seamless connectivity between different network environments, and lifestyle value added services into a single client.

Target applications include netbooks, smartphones, mobile Internet devices (MIDs), etc.

Juniper Networks and IBM Extend Alliance

Juniper Networks and IBM announced plans to broadden their relationship. Specifically in the data center, IBM has included Juniper Networks switching, routing and security products into their data center network portfolio with IBM serving in the role of systems integrator.

The two companies have recently demonstrated how enterprises can seamlessly extend their private data center clouds. The demonstration between Silicon Valley and Ireland showed a use case where customers could take advantage of remote servers in a secure public cloud to ensure high priority applications are given preference over the lower priority ones when computing resources become constrained. IBM and Juniper are installing these advanced networking capabilities into IBM's nine worldwide Cloud Labs for customer engagements. Once installed in the nine worldwide Cloud Labs, IBM and Juniper will be able to seamlessly move client computing workloads between private and publicly managed cloud environments, enabling customers to reliably deliver on service level agreements.

For the past year, IBM and Juniper have been working together on the Stratus Project, Juniper's initiative to create a single data center fabric that will deliver a quantum jump in scale, performance and simplicity, with the flexibility to support fully converged and virtualized data center environments. The Stratus Project will address the modern mega data center's pain points and endeavors to enable cloud computing to fulfill its maximum potential.

Furthermore, the companies are jointly researching cloud computing security models to highlight how customers can mitigate attacks on corporate data and computer systems.

IBM to Resell Brocade Enterprise IP Networking Portfolio

IBM has agreed to rebrand and sell the Brocade enterprise IP networking family of products through the IBM global sales force and authorized IBM Business Partners. The OEM deal extends the existing relationship between Brocade and IBM for storage area networking (SAN) products. Initially, IBM plans to sell the following Brocade IP networking product families under the OEM agreement, with additional products to be added over time. IBM will offer multiple models in each product family:

  • Brocade NetIron MLX Series as IBM m-series Ethernet routers

  • Brocade NetIron CES 2000 Series as IBM c-series Ethernet switches

  • Brocade FastIron SX Series as IBM s-series Ethernet switches

  • Brocade FastIron GS Series as IBM g-series Ethernet switches

  • The products were initially developed by Foundry Networks, which Brocade recently acquired.

    "This agreement supports IBM's view of networking as an integral component of our dynamic infrastructure initiative, which helps customers manage the convergence of business and IT infrastructures," said Barry Rudolph, vice president, IBM System Storage. "IBM is focused on providing its customers with the best networking choices and options, which is why we're pleased to expand our relationship with Brocade."

    IBM currently rebrands and sells a broad portfolio of Brocade data center networking products and technologies, including the multiprotocol Brocade DCX Backbone along with Fibre Channel directors, standalone and embedded switches, host bus adapters, and related software.

    Bytemobile Releases Unison Mobile Internet Platform

    Bytemobile announced the general availability of its new Unison Mobile Internet Platform for processing all data traffic for Bytemobile applications deployed in mobile networks. The latest Unison release includes Bytemobile's new Media Optimization, Widget Bar and MobileMatch applications.

    Key features ofthe Bytemobile product portfolio on the Unison platform include:

    Optimization and Services Node (OSN)

    • The OSN Web Optimization application reduces network data volumes to increase capacity for growth in internet traffic and users, enabling operators to manage their operating and capital costs and enhance the user experience with significant download speedup.

    • The WebGate Service, an optional application of the OSN, provides a single service control point within the network for all data traffic, which enables operators to deliver innovative new services such as parental controls, fair-use policies and captive portal applications to their customers while controlling data flow through intelligent service selection.

    • The MobileMatch Service, an optional application of the OSN, supports the selection and delivery of the most relevant value-added services for individual consumers, using real-time analysis of both contextual and behavioral data.

    Web Fidelity Suite

    • The Web Fidelity Suite Content Adaptation application dynamically and transparently transcodes web, Flash and multimedia content for interactive use on all mobile devices, while retaining the functionality and integrity of the original PC experience.

    • The Widget Bar application provides operators with a direct communication channel to the mobile user, empowering them to deliver portal content to all off-portal pages and to influence and simplify the browsing experience by suggesting useful and relevant content, applications and widgets.

    • The Ad Insertion application enables operators to serve highly relevant advertisements to consumers, thereby opening substantial new revenue streams while enhancing the customization and personalization of the user's mobile browsing experience.

    Media Fidelity Suite

    • The Media Fidelity Suite Media Optimization application enables operators to manage the impact of escalating video traffic on their network operations and dramatically increase quality of service to users through data reduction and control of effective bandwidth utilization.

    ADVA Selects Xelerated's Network Processor to Extend Carrier Ethernet

    ADVA Optical Networking is using Xelerated's X11 network processor unit (NPU) in the ADVA FSP 3000 Wavelength Division Multiplexing (WDM) system, which enables service providers to extend Carrier Ethernet services into fiber access and aggregation networks.
    The X11's architecture guarantees deterministic, low latency packet behavior, regardless of packet size, traffic pattern or number of instructions used per packet.

    Fujitsu Supplies FLASHWAVE 9500 to South Dakota's SDN

    SDN Communications, a regional fiber optic networking provider owned by 18 South Dakota independent telephone companies, has selected the Fujitsu FLASHWAVE 9500 Packet Optical Networking Platform (Packet ONP) for its statewide network. SDN is using the platform for high-capacity, SONET and Ethernet transport and cross-connecting between interexchange carriers and its member companies.

    SDN will continue to use the Fujitsu NETSMART 1500 Element Management System (EMS) to manage its network of Fujitsu network elements, and reduce the time and complexity of day-to-day operations and maintenance tasks. This software allows SDN to use features such as end-to-end SONET/SDH and Ethernet service provisioning, real-time fault isolation and resolution, and distributed network element software updates to reduce operating expenses. Financial terms were not disclosed.

    The FLASHWAVE 9500 Packet ONP provides the modular integration of Ethernet, ROADM, and SONET transport technologies into a single addressable optical networking class element. The platform's pluggable ROADM option and universal switch fabric allow both SONET/SDH and Ethernet traffic to be transported in its native format to create a universal optical infrastructure. Integrated connection-oriented Ethernet transport technology delivers private-line quality packet aggregation and connectivity services with the proven operational robustness of optical networking, including transport-class software and database management, management interface functionality, and precision fault sectionalization.

    DigitalBridge Signs WiMAX Distribution Agreement with NRTC

    DigitalBridge Communications Corp. (DBC), a private operator of WiMAX 4G broadband networks in underserved regions, has signed a distribution agreement with the not-for-profit National Rural Telecommunications Cooperative (NRTC).

    The agreement gives NRTC members the opportunity to expand next-generation broadband service to underserved and unserved areas in rural America. NRTC has also made a significant investment in DigitalBridge, the terms of which are not being disclosed. With the investment in DBC, NRTC acquires a seat on the company's board of directors.

    "The Administration and Congress have made the expansion of broadband a national priority, and it's a goal that we embrace," said Bob Phillips, NRTC President and Chief Executive Officer. "Our nearly 1,500 members have a commitment to improving the quality of life in the communities they serve and have demonstrated the ability to deliver advanced technologies to their consumer members. It was an NRTC investment that delivered DIRECTV satellite television service to rural America in places where there was no cable or other alternative to ‘rabbit-ears' on top of the TV or an antennae on the roof. It was NRTC that provided the urgently-needed funding to get the WildBlue satellite Internet service off the ground."

    "Broadband is now a utility -- like electricity and phone service. Expanding the availability of high-speed Internet access is key to closing the digital divide, creating jobs and spurring economic development in rural America," said Phillips. "WiMAX can also provide a solution for electric cooperative members who are implementing smart grid technologies that rely on enhanced communications capabilities," he added.

    Nokia Realigns Services Group, Cuts 450 Jobs

    Nokia announced a realignment of its Services unit with the goal of creating a more simplified user experience and deeper and greater opportunities for third parties. Further, Nokia will focus investments on fewer initiatives and increase the use of common enablers across certain services. As part of the announced changes, all mobile games will now become available through the Ovi Store, in addition to through their existing channels. Nokia also announced plans to streamline its internal IT and Compatibility & Industry Collaboration activities in the Corporate Development Office unit, resulting in the elimination of about 450 positions.

    Cablevision Introduces 101 Mbps Internet Service

    Cablevision Systems, which passes 5 million homes in the New York metropolitan area, introduced a 101 Mbps downstream Internet access service over its DOCSIS 3.0 infrastructure. The service, which delivers upstream speeds of up to 15 Mbps, will be offered across the company's entire service area starting May 11. The new level of Internet service will be available for $99.95 per month and includes up to 15 email addresses with 1GB of storage each.

    Cablevision now claims to offer the fastest residential Internet service in the U.S. The basic level of Optimum Online delivers speeds of up to 15 Mbps downstream and 2 Mbps upstream.

    Cablevision also announced that it was doubling the downstream speed of its Optimum WiFi wireless Internet service, to up to 3.0 Mbps -- beating the downstream capacity of many cellular data services.

    Cablevision noted that its Optimum Online has achieved a broadband market share in Cablevision's service area of more than 75 percent, and is the most highly-penetrated high-speed Internet service in the country, used by more than 52 percent of the homes passed by Cablevision's fiber optic network.

    Sunday, April 26, 2009

    Packet Design's Route Explorer Adds IPv6 Support

    Packet Design has added IPv6 support to Route Explorer, its network management system that gives enterprises and service providers visibility into routing operations on their IP networks. With the new IPv6 capability, Route Explorer, which works by passively "listening" to routing protocol exchanges and computing a real-time, network-wide layer-3 topology, will now be able to monitor and analyze IPv6 networks, as well as those running IPv4.

    The company said its solution enables network engineers to quickly identify and resolve problems, perform effective network maintenance, and do accurate change planning on increasingly complex networks that incorporate both versions of the protocol.

    Route Explorer's IPv6 support is initially available for BGP (Border Gateway Protocol) and IS-IS (Intermediate System to Intermediate System), two routing protocols used widely by service providers. Support for IPv6 on the OSPF (Open Shortest Path First) routing protocol will be added later this year, followed by Cisco's enterprise-oriented EIGRP (Enhanced Interior Gateway Routing Protocol) in 2010.

    IPv6 support for the IS-IS and BGP protocols is available immediately as a $5,000 option with version 7.5 of the Route Explorer software.

    Tundra Receives Higher Acquisition Bid from IDT

    Integrated Device Technology has bid to acquire Tundra Semiconductor for Cdn $6.25 per share in cash, representing an aggregate purchase price of approximately Cdn $120.8 million. The IDT Offer is not subject to any due diligence condition, and IDT has indicated that the purchase price payable under its offer will be funded from IDT's cash balance.

    On March 19 Gennum Corporation make an offer to acquire Tundra. Under the agreement (which was amended on April 16), Gennum agreed to acquire all of the issued and outstanding shares of Tundra for consideration of, at the election of the holder, a cash price of Cdn $5.81 per share or 1.1679 common shares of Gennum or a combination thereof, subject to pro ration.

    The Tundra Board of Directors has determined that the IDT Offer constitutes a "Superior Proposal" but is obliged to consider any counter proposal from Gennum.

    IDT said the strength of Tundra in serial switching and bridging using PCI Express, Rapid IO and VME, would reinforce its leadership in interconnect solutions for the communication, computing, and embedded segments.

    Alcatel-Lucent Signs US$1.7 Billion Deals with China Mobile, China Telecom

    Alcatel-Lucent announced two framework agreements valued US$1.7 billion in total with China Mobile and China Telecom.

    Under an agreement valued approximately US$1 billion with China Mobile Alcatel-Lucent will provide its GSM/EDGE solutions, TD-SCDMA wireless networking equipment, optical, microwave and IP transmission offerings, IP service routers, application platforms and related services.

    In a comparable agreement with China Telecom, valued at approximately US$700 million, Alcatel-Lucent will supply its 3G CDMA/EV-DO networking equipment, application platforms, optical and IP transmission platforms, IP service routers and network maintenance services to support the rollout of the company's 3G wireless broadband network.

    China Mobile and China Telecom were granted 3G licenses in January 2009, for TD-SCDMA and CDMA/EV-DO technologies, respectively. The agreements were secured through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent's Chinese flagship company.

    The contracts were signed today in Washington D.C. in the presence of Li Yue, Vice President of China Mobile, Wu Andi, Chief Financial Officer of China Telecom and Mary Chan, President, Alcatel-Lucent's 4G/LTE end-to-end solutions and Dave Geary, President of Alcatel-Lucent's Wireline networks activities.

    At the end of 2008, a consortium led by Alcatel-Lucent Shanghai Bell and Datang Mobile won the largest share in China Mobile's tender for the second phase of its TD-SCDMA mobile network trial.

    Also in 2008, China Telecom selected Alcatel-Lucent Shanghai Bell for a US$230 million upgrade of its CDMA mobile network.

    In addition, China Unicom, a leading fixed and mobile service provider in China, recently selected Alcatel-Lucent to deploy 3G W-CDMA networks in 14 Chinese provinces.

    Oclaro (Bookham + Avanex) Makes Debut

    Bookham and Avanex Corporation, both suppliers of optical networking components, completed their merger and officially launched a new company -- Oclaro. Oclaro, with headquarters in San Jose, California, will leverage proprietary core technologies and vertically integrated product development to provide innovative optical devices, modules and subsystems.
    The company's stock will trade on the NASDAQ Global Market with the stock symbol "OCLR," beginning at the start of trading on April 28, 2009.

    "The closing of this merger is a significant milestone in our quest to be a predominant force in the fiber optics industry," said Alain Couder, president and CEO, Oclaro. "By uniting the best components expertise of Bookham with the modules and subsystems best expertise of Avanex, Oclaro has the necessary products and technologies under one roof to become a market setter in the future of the fiber optic market."

    Separately, Oclaro reported quarterly revenues of $47.0 million, compared to $50.2 million in the prior quarter and $59.7 million in the same period last year. The figures represent the results of Bookham. Revenues include $1.9 million recognized upon collection of cash from shipments made to Nortel Networks and a related contract manufacturer. An aggregate of $5.4 million in revenue related to shipments to these customers (including the $1.9 million recognized in this quarter), had been deferred from recognition as revenues as payment was not deemed to be collectable at the time of shipment.

    Gross margin for the third quarter of fiscal 2009 was 23 percent, compared to gross margin of 17 percent in the prior quarter. Net loss was $13.3 million, or a net loss of $0.13 per share.

    "Despite the lower third quarter revenues that were driven by the economic downturn, we held our adjusted EBITDA close to break even," said Alain Couder, president and CEO of Oclaro, Inc. "We continued to execute throughout our business as we positioned ourselves towards achieving our goal of profitability. Moving forward, we expect the merger with Avanex Corporation, which closed today, to further accelerate our progress towards profitability. Under our new corporate name, "Oclaro," our combined companies are well positioned to leverage our complementary product portfolios, operational synergies and strong balance sheet to accelerate our progress to our long-term financial model."

    Qualcomm Posts Revenues $2.5 Billion

    A day after announcing its settlement with Broadcom, Qualcomm reported quarterly revenue of $2.46 billion, compared to $2.61 billion in the prior year and $2.52 billion in the prior quarter.
    While the quarterly revenues were at the high end of prior guidance, strong operating results were offset by costs related to a settlement and patent agreement with Broadcom. In addition, results for the quarter were adversely impacted by other-than-temporary impairments to marketable securities.

    There was a net loss of $289 million, compared to net income of $766 million in the prior year and $341 million in the prior quarter. Diluted loss per share of $0.18, compared to diluted earnings per share (EPS) of $0.47 in the prior year and $0.20 in the prior quarter.

    "Global demand for 3G-enabled products and services remains strong despite the current economic environment," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "While the business environment remains uncertain and the continued distress in global financial markets resulted in additional impairments to our marketable securities, we believe the CDMA inventory channel has stabilized, and we are seeing some replenishment of products driven primarily by emerging markets. We continue to grow key research and development programs to further our technology leadership and drive future growth, while closely managing SG&A expenses. Demand for CDMA-based products and services remains healthy, and our calendar year 2009 device shipment estimate remains unchanged."

    General Dynamics Taps Juniper for U.S. Army WIN-T Program

    Juniper Networks is providing network routing hardware, software, technological expertise and engineering support to General Dynamics C4 Systems, the prime contractor developing the U.S. Army s Warfighter Information Network-Tactical (WIN-T) program. WIN-T is the U.S. Army s fully mobile, tactical communications network system, designed to provide reliable, secure and seamless video, data, imagery and voice services that enable decisive, on-the-move (OTM) information sharing among deployed forces. Specifically, Juniper has been working with the General Dynamics WIN-T program team on integrating Juniper router technology into a solution that supports the WIN-T program s need for Increment 2 OTM communications between commanders, staff, and functional units via line-of-sight, satellite, air-to-ground, and ground-to-ground networks. Juniper's collaboration with General Dynamics has included the definition of interfaces between routers and radios necessary to support OTM functionality that will enable secure network access for defense personnel and their IP-related assets (live video, voice, data and other transmissions) in real time as they move from one operational theater to another. Financial terms were not disclosed.

    Orange Business deploy Cisco TelePresence for Single Buoy Moorings

    Orange Business Services will supply a Cisco TelePresence solution for Single Buoy Moorings, a multinational group of companies that provides systems and services to the oil and gas industry. An all-inclusive Cisco TelePresence implementation managed by Orange Business Services will help Single Buoy Moorings improve productivity by allowing employees to collaborate effectively on projects and capitalize on the talent it has across the organization irrespective of location. Orange Business Services is providing a fully-managed solution including project management, consultancy, deployment, network services, and operational management. Single Buoy Moorings' telepresence traffic will be carried on the Orange IP VPN, the world's largest Telepresence-enabled network, which holds Certified Cisco TelePresence Connection (CCTC) status, which is based on stringent performance requirements vital to a successful Telepresence experience. The deployment includes the Cisco TelePresence System 3000 in Houston (USA), Kuala Lumpur (Malaysia), Monaco, and Schiedam (Netherlands).

    NTT Com Expanding in Russia, Europe and India

    NTT Communications (NTT Com) is establishing subsidiaries in St. Petersburg, Russia; Brussels, Belgium and Neemrana, India/ The Brussels branch will be set up by NTT Europe Limited, an NTT Com subsidiary that already manages branch offices in other European cities. NTT Com also operates a representative office in Moscow.

    The Indian branch will be located in the first Japanese-exclusive industrial park in India, Neemrana Industrial Area, which was built by the state government of Rajasthan with cooperation from the Japan External Trade Organization (JETRO). NTT Com expects to support Japanese enterprises that are setting up operations in the surrounding region.

    Etisalat and Nokia Collaborate on Mobile Apps

    Etisalat and Nokia announced a joint collaboration to provide advanced mobile Internet based services based on the Ovi platform in the Middle East. These services include maps, navigation and games on Nokia devices.

    In the first phase of the collaboration, Etisalat's UAE mobile customers will gain access to Ovi Maps and N-Gage Games on their Nokia devices through a payment mechanism linked to their Etisalat account. The payment will be directed to their account automatically, if chosen accordingly, while customers will also have the existing option of paying through their credit cards.

    The United Arab Emirates will be the first country in the Middle East and Africa to roll out this service during Q2, 2009, while the cooperation will be extended to other Etisalat operations in the Middle East and Africa in due course.

    Etisalat operates in 18 countries across Asia, the Middle East and Africa, servicing over 74m customers. It also has Points of Presence (PoP) in New York, London, Amsterdam, Frankfurt, Paris and Singapore providing a truly global reach. In addition to being the UAE's telecom provider, Etisalat has now expanded to manage and operate telecom companies in Saudi Arabia, Egypt, Sudan, Pakistan, Tanzania, Benin, Burkina Faso, Gabon, Niger, Togo, Republic of Central Africa, Ivory Coast, Nigeria , Indonesia, Iran and Afghanistan.

    ZigBee Alliance Sees SmartGrid Integration with IP Networks

    The ZigBee Alliance plans to Internet Engineering Task Force (IETF) standards into its specification portfolio of low-power wireless networking in order to accelerate the growth of Smart Grid applications. ZigBee Smart Energy products will enhance their application capabilities with native IP support, allowing seamless integration of Internet connectivity into each product.

    The ZigBee Alliance said that through cooperative efforts with the IETF, its members will create additional innovative solutions for wireless sensor and control networks as part of the new specification.

    Internet connectivity is currently provided by existing ZigBee specifications; however, the addition of native IP support will offer tighter integration from wireless devices all the way to large scale utility IT networks.

    The resulting specification will further broaden ZigBee's suite of low-power wireless network solutions to meet the diversified needs of companies in the home, automation, healthcare, commercial building automation, telecommunications and consumer markets.

    ZigBee Smart Energy enables wireless communication between utilities, energy service providers and common household devices such as smart thermostats and appliances. It improves energy efficiency by allowing consumers to choose interoperable products from different manufacturers giving them the means to manage their energy consumption more precisely using automation and near real-time information. It also helps utility companies implement new advanced metering and demand response programs to drive greater energy management and efficiency, while responding to changing government requirements.

    The ZigBee Alliance estimates that there are 30 million ZigBee equipped smart meters currently in various stages of deployment in North America.

    Texas Instruments Endorses ZigBee + IP for SmartGrid

    Texas Instruments announced its strong endorsement of the ZigBee Alliance's plan to integrate Internet Protocol (IP) and open standards. The plan to incorporate IETF standards will allow continued growth of smart grid applications beyond the smart meter.

    "The ZigBee Alliance decision to expand its leading wireless networking standard to incorporate IP standards will solidify and accelerate developments and innovation of rapidly growing smart grid applications," said Laurent Giai-Miniet, general manager of TI's Low-Power RF business. "TI is a leading supplier in this market segment and will continue to invest in solutions for smart energy. TI is also the only supplier that can deliver solutions for ZigBee in all market segments with ZigBee PRO, RF4CE, Smart Energy profile and IP."

    Verizon Sees Continued Growth in Wireless Despite Economy

    Despite the general economic climate, Verizon Communications' reported strong sales for its wireless services along with continued growth for its FiOS and strategic business initiatives. Verizon's total operating revenues grew 11.6 percent to $26.6 billion, compared with the first quarter 2008, as the company added revenues from its acquisition of Alltel Corporation in early January 2009. On a pro forma basis (determined by consolidating the operating results of Verizon and the former Alltel as though the acquisition had occurred on Jan. 1, 2008), revenue growth was 3.3 percent. EPS came it at 58 cents in the first quarter 2009, up 1.8 percent from 57 cents per share in the first quarter 2008. On an adjusted basis (non-GAAP), first-quarter 2009 earnings were 63 cents per share, up 3.3 percent from first-quarter 2008 earnings of 61 cents per share.

    "In this challenging economic environment, we remain focused on delivering value to customers and on returning cash to our shareowners, with an attractive dividend. Verizon is in a unique position. We are tapping into new market opportunities in wireless, broadband, video and global enterprise, and we already have the assets and capabilities to sustain our cash flows and grow total shareholder returns," stated Verizon Chairman and CEO Ivan Seidenberg.

    Some highlights from Q1:


    • Wireless retail (non-wholesale) gross customer additions (excluding customers acquired in the Alltel acquisition) were strong, up 32.5 percent over the prior year. On a pro forma basis, retail gross
      customer additions were up 4.3 percent.

    • Verizon Wireless had 86.6 million customers at the end of the quarter, an increase of 28.8 percent year over year. This includes 13.2 million net total customer additions, after conforming adjustments,
      from the Alltel acquisition.

    • Verizon Wireless is the largest wireless company in the U.S. in terms of total customers and revenues.

    • Verizon Wireless added 1.3 million net retail customers (excluding customers acquired in the Alltel acquisition) for a total of 84.1 million retail customers.

    • Verizon Wireless had industry-leading retail post-paid churn of 1.14 percent; total churn was an industry-leading 1.47 percent.

    • Revenues totaled $15.1 billion, up 29.6 percent year over year and up 9.0 percent on a pro forma basis. Service revenues were $13.1 billion, up 28.9 percent year over year and up 10.5 percent on a pro forma basis, with continued growing demand for data services.

    • Data revenue was $3.6 billion in the first quarter 2009, up 56.2 percent,
      or 36.8 percent on a pro forma basis, from the first quarter 2008. Service ARPU decreased 0.3 percent from the similar period a year ago, to $50.74. Total data
      ARPU grew by 20.8 percent to $14.16. On a pro forma basis, service ARPU increased 1.1 percent, and total data ARPU increased 25.2 percent.

    • During the quarter, Verizon Wireless customers sent or received an average of 1.4 billion text messages each day, totaling more than 127 billion text messages in the first quarter. Customers also sent nearly 2.1 billion picture/video messages and completed 48.6 million music and video downloads during the quarter.


    • Wireline's total first-quarter operating revenues were $11.6 billion, a decline of 3.8 percent compared with the first quarter 2008. A 0.7 percent increase in mass market revenues was offset by declines in global enterprise, global wholesale and other services. Wireline total operating expenses were $10.9 billion, a decline of 1.0 percent compared with the first quarter 2008.

    • Verizon added 299,000 net new FiOS TV customers. The company had 2.2 million FiOS TV customers, an increase of 83.8 percent compared with the first quarter 2008.

    • FiOS TV sales penetration (sales as a percentage of potential customers) increased to 22.9 percent, compared with 18.7 percent in the first quarter 2008. FiOS TV service was available for sale to 9.7 million premises by end of the quarter.

    • Verizon added a record 298,000 net new FiOS Internet customers. The company had nearly 2.8 million FiOS Internet customers, an increase of 55.5 percent compared with the first quarter 2008.

    • FiOS Internet sales penetration increased to 26.8 percent, compared with 23.0 percent in the first quarter 2008. FiOS Internet was available for sale to 10.4 million premises by the end of the quarter.

    • Broadband and video revenues from consumer customers in wireline mass markets totaled $1.3 billion in the first quarter 2009 -- representing year-over-year quarterly growth of 36.3 percent.

    • Revenue growth from broadband and video services drove consumer ARPU to $69.97 in the first quarter 2009, a 13.7 percent increase compared with the first quarter 2008.

    • Sales of strategic business services -- such as IP, managed services, Ethernet and security solutions -- generated $1.5 billion in revenue in the quarter, up 7.5 percent from the first quarter 2008.

    • There were 8.9 million total broadband connections in the first quarter, a net increase of 252,000 over the fourth quarter 2008 and 7.8 percent year over year. This includes a decrease of 46,000 DSL-based Verizon High Speed Internet connections, which was more than offset by the increase in FiOS Internet customers.

    Saturday, April 25, 2009

    Qualcomm and Broadcom Settle Their Disputes

    Qualcomm and Broadcom reached a settlement and signed a multi-year patent agreement that ends the long-running legal dispute between the companies.

    The agreement will result in the dismissal with prejudice of all litigation between the companies, including all patent infringement claims in the International Trade Commission and U.S. District Court in Santa Ana, as well as the withdrawal by Broadcom of its complaints to the European Commission and the Korea Fair Trade Commission.

    Under the deal, the companies have granted certain rights to each other under their respective patent portfolios. Qualcomm will pay Broadcom $891 million over a four-year period. The terms of this agreement will not result in any change to Qualcomm's 3G (e.g., CDMA2000, WCDMA and TD-SCDMA) and 4G (e.g., LTE and WiMAX) licensing revenue model.

    Other terms outlined by the companies include:

    • Broadcom and Qualcomm agree not to assert patents against each other for their respective integrated circuit products and certain other products and services;

    • Broadcom agrees not to assert its patents against Qualcomm's customers for Qualcomm's integrated circuit products incorporated into cellular products;

    • Qualcomm's customers do not receive rights to any of Broadcom's patents with respect to Qualcomm integrated circuit products incorporated into non-cellular products and equipment;

    • Qualcomm agrees not to assert its patents against Broadcom's customers for Broadcom's integrated circuit products incorporated in non-cellular products;

    • Broadcom customers do not receive rights to any of Qualcomm's patents with respect to Broadcom integrated circuit products incorporated into cellular products and equipment;

    • Qualcomm will pay Broadcom $891 million in cash over a period of four years, of which $200 million will be paid in the quarter ending June 30, 2009. The agreement does not provide for any other scheduled payments between the parties.

    "We believe that this resolution is positive for both Qualcomm and Broadcom, our customers, our partners and the overall industry," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, and Scott A. McGregor, president and CEO of Broadcom.