Wednesday, July 28, 2010

IP Infusion Moves Ahead with MPLS-TP

IP Infusion is preparing to add MPLS-TP (MPLS-Transport Profile) functionality to its ZebOS Network Platform software, which is widely used by network equipment manufacturers. The forthcoming MPLS-TP specification, which is expected to be finalized next year, will enable carriers to extend their core IP/MPLS network to the edge of mobile networks. MPLS-TP will enable automated maintenance, administration, provisioning and bandwidth management functions in the mobile aggregation network.

IP Infusion said its ZebOS MPLS-TP will preserve the operation, administration and maintenance (OAM) and management characteristics allowing a full end-to-end integration with existing and future IP/MPLS infrastructures. By using IP/MPLS and MPLS-TP from ZebOS, OEMs will be able to provide a consistent way of provisioning, troubleshooting and managing the networks from edge to edge.

MPLS-TP has been engineered specifically for transport networks. It is a reliable connection-oriented, packet-switched transport layer technology that is aligned with existing circuit-switched transport networking. MPLS-TP overlays on existing MPLS networks to provide:

  • Standardized control plane functionality

  • Advanced Quality of Service (QoS)

  • End-to-end Operation, Administration and Maintenance (OAM)

  • Reduced network equipment footprint

  • OAM monitors and drives protection switching

  • Support for existing management processes and work procedures

Initially, IP Infusion will be supporting MPLS-TP static capabilities. This will be updated to full MPLS-TP capabilities as the specification is completed.

IP Infusion has also added support for G MPLS to ZebOS, which can be used as a dynamic control plane with MPLS-TP so that the network sets up Label Switching Paths (LSPs) and PseudoWires (PWEs). GMPLS is based on the TE extensions to MPLS (MPLS-TE). It may also be used to set up the OAM function and define recovery mechanisms.

IBM Acquires Storwize for Real-time Data Compression

IBM will acquire Storwize, a privately held developer of real-time data compression technology. Storwize can compress primary data, or data that clients are actively using, of multiple types -- from files to virtualization images to databases -- in real-time while maintaining performance. This is in contrast to other storage compression technologies that only compress secondary or backup data. The companies claim the technology can reduce physical storage requirements by up to 80% Financial terms were not disclosed.

Storwize , which is based in Marlborough, MA, claims over one hundred customers, such as Mobileye, Polycom Israel, Shopzilla, Inc. and Sumitomo Mitsui Construction.

Dell'Oro: WLAN Market to Exceed $7 Billion by 2014

Overall WLAN market revenues are expected to surpass $7 billion by 2014, according to a newly released market forecast report by Dell'Oro Group. The enterprise segment and the small office, home office segments will account for a majority of that growth, with enterprise revenues expected to expand more than 100 percent over 2009.

"The proliferation of Wi-Fi enabled devices and users' desire for constant access are fundamentally changing how network administrators accommodate the devices," said Loren Shalinsky, Senior Analyst of Wireless LAN research at Dell'Oro Group. IT departments actively seek ways to allow these mobile users to connect to the network, regardless of which client device is used, increasing the requirements for wireless networks. Previously, IT departments often only allowed corporate owned or approved devices to connect. "The increase in the number of Wi-Fi enabled devices will contribute to growth in all three WLAN market segments, as mobile users want access to the same information, regardless of where they are located. US Government spending, through programs like the Smart Grid Investment grants, the Broadband Investment Program, and the E-rate program also will contribute to WLAN growth," added Shalinsky.

SF Bay Area to Build Public Safety 700 MHz LTE Net with Motorola

Public Safety Agencies within the San Francisco Bay Area have selected Motorola's Enterprise Mobility Solutions
to build a 700 MHz LTE system.

As part of the Bay Area Regional Interoperable Communications System (BayRICS) plan, the system will serve multiple agencies across the greater bay area, including San Francisco, Alameda County/Oakland, Contra Costa County, as well as the cities of Santa Clara and Sunnyvale. This broadband system provides an overlay to the existing Project 25 standards based IP cores and networks.

The Public Safety LTE system will be installed this year and is expected to be operational in early 2011. This first phase includes an LTE core, 10 sites and 330 Motorola Public Safety LTE user modems to provide Bay Area responders access to a host of media rich applications delivered over the new broadband network for increased public safety information sharing.

"This agreement represents a first step in realizing the BayRICS vision for a unified, state-of-the-art, mission critical voice and broadband multimedia network," said Laura Phillips, general manager of the Bay Area UASI. "Combining a Public Safety hardened LTE overlay network with our Project 25 voice and data networks, we have the opportunity to equip our first responders with the advanced communications tools they need to better protect themselves and our communities."

Boeing Completes Acquisition of Narus

Boeing completed its previously announced acquisition of Narus, a leading provider of real-time network traffic and analytics software used to protect against cyber attacks and persistent threats aimed at large IP networks. Its NarusInsight system provides deep insight into multiple layers of IP network traffic in real time, enabling applications such as network cyber protection, traffic and application monitoring and capture for legal intercept, and traffic management via policy enforcement.

At the time the deal was announced, Boeing said the acquisition follows a successful partnership with Narus and advances its strategy to offer world-class, scalable, state-of-the-art cybersecurity solutions. Financial terms were not disclosed.

Motorola Reports Improving Financials

Motorola reported Q2 2010 sales of $5.4 billion and GAAP earnings of $162 million, or $0.07 per share, which compares to GAAP earnings of $26 million, or $0.01 per share, in the second quarter of 2009. Motorola generated positive operating cash flow of $242 million, reduced long-term debt through a $500 million tender offer and ended the quarter with a total cash position of $8.3 billion. For Q3, Motorola expects earnings will range from $0.10 to $0.12 per share.

Mobile Devices segment sales were $1.7 billion, down 6 percent compared with the year-ago quarter. GAAP operating earnings were $87 million, which included income from a significant legal settlement of $228 million, compared to an operating loss of $287 million in the year-ago quarter. The non-GAAP operating loss was $109 million, compared to an operating loss of $239 million in the year-ago quarter.

Home segment sales were $886 million, down 13 percent compared with the year-ago quarter. GAAP operating earnings were $29 million, compared to $18 million in the year-ago quarter. Non-GAAP operating earnings were $57 million, compared to $49 million in the year-ago quarter.

Enterprise Mobility Solutions segment sales were $1.9 billion, up 10 percent compared with the year-ago quarter. GAAP operating earnings were $181 million, compared to operating earnings of $141 million in the year-ago quarter. Non-GAAP operating earnings were $292 million, compared to $225 million in the year-ago quarter.

Networks segment sales were $967 million, down 2 percent compared with the year-ago quarter. GAAP operating earnings were $178 million, compared to $92 million in the year-ago quarter. Non-GAAP operating earnings were $191 million, compared to $147 million in the year-ago quarter.

France Telecom Reaches 182 million Customers Accesses

The France Telecom Group reported consolidated revenues of 22.144 billion euros for the first half of 2010, down 2.2% on a comparable basis. EBITDA was 7.745 billion euros for a margin of 35.0%, with the erosion limited to 0.9 points on a comparable basis. The company confirmed its ambition for organic cash-flow generation for 2010 and 2011.

Capital expenditure was 2.114 billion euros in the first half, for a CAPEX rate of 9.5% of revenues
organic cash flow of 3.989 billion euros in the first half of 2010.

Some highlights:

  • A total year-on-year increase in the customer base of 3.8%, with 182 million customers at 30 June 2010

  • There was a 6.6% growth in the mobile customer base to 123.1 million customers at 30 June 2010, driven by Africa and the Middle East with a combined total of 34.0 million customers at 30 June 2010, an increase of 18.4% year on year.

  • There was a 2.2% growth in ADSL broadband subscribers (13.2 million customers) and rapid growth of digital TV with 3.6 million subscribers at 30 June 2010, a year-on-year increase of 34%

  • In France, broadband ARPU grew by 4.6% to 36.6 euros per month. The company's Pay TV customer base reached 1,687,000 vs 1,619,000 at the end of March 2010. Orange Cinema Series + Orange Sport had about 752,000 subs.

  • The company experienced stable first half 2010 revenues compared with the first half of 2009 excluding the effects of regulation, an improvement after the 0.9% downturn recorded in the second half of 2009:

  • There was a very strong growth of 8.0% in Africa and the Middle East driven mainly by the 29% increase from new operations.

  • Growth of operations in France (+0.3%, including +4.0% growth in mobile services), Spain (+2.5%, including +3.7% growth in mobile services), Poland (an improvement of 1.8 points to -3.4%, following -5.2% in the second half of 2009) and the other European countries (+0.9%), led by Belgium.

  • France Telecom will propose a dividend of €1.40 per share for the fiscal years 2010, 2011 and 2012, subject to a vote in favour of these payments by shareholders at the relevant Annual General Meetings.

BT Revenue Declines as Profit Increases

BT Group reported quarterly revenue of £5,006 million, down 4%, and adjusted EBITDA of £1,399 million, up 6%, as total group operating costs, before specific items, decreased by 6% to £4,424m, primarily due to reductions
in total labour costs and the delivery of other cost savings by all lines of business. Adjusted profit before tax was £446 million, up 17%.

"We have made an acceptable start to the year, delivering improved financial results while investing in the future of the business. In TV we are offering great value premium sports packages and can now compete on a more even playing field. We hit the first major milestone in our fibre roll out, passing over 1.5m premises, and we are now running at an average rate of around 100,000 premises passed every week. In BT Global Services we continue to win significant contracts due to our ability to deliver a world class service to our customers," stated Ian Livingston, Chief Executive.

For BT Retail, revenue decreased by 7%. This decline was largely due to the ongoing reduction in calls and lines revenue. Excluding the one-off revenue benefit last year, our Consumer revenues were down 6%. Business revenues were down 4%. Consumer ARPU increased to £314, up £5 over the previous quarter, principally due to increasing take up of broadband. Broadband net additions were 96,000 in the quarter and BT's retail market share was 40%. Since the launch in January of BT's "Infinity" fibre based broadband service has seen order levels accelerate.

For BT Wholesale, revenue declined by 10%. Excluding the £44m reduction in low margin transit revenue, primarily due to mobile termination rate reductions, revenue declined by 2%. This decline reflected in part continued reductions in broadband and circuits revenue of £69m. Managed network services (MNS) revenue grew by 19% to £199m and now represents 24% of external revenue (Q1 2009/10: 19%). 42% of external revenue is now underpinned by long term contracts (Q1 2009/10: 34%).

For Openreach, revenue declined by 8%. Growth in Ethernet volumes stimulated by lower prices and other connection revenues offset the continued migration from WLR to lower priced MPF. Net operating costs reduced by 17% partly due to changes in the internal trading model offsetting the revenue decline and lower leaver costs. Capital expenditure increased by 16% due to the increased investment in the fibre roll.

AT&T Selects Alcatel-Lucent, Cisco, and Juniper for IP/MPLS/Ethernet/EPC Domain

AT&T has selected Alcatel-Lucent, Cisco, and Juniper Networks as its Domain Suppliers for IP/MPLS/Ethernet/Evolved Packet Core equipment needed for its industry-leading IP-based network. Financial terms were not disclosed.

"After conducting an extensive review of multiple IP/MPLS/Ethernet/Evolved Packet Core equipment suppliers, we're pleased to extend long-standing relationships with Alcatel-Lucent, Cisco, and Juniper Networks," said Tim Harden, President of AT&T's Supply Chain and Fleet Operations organization. "AT&T's selection of these three industry-leading suppliers as Domain Suppliers showcases our ongoing commitment to meet the quality expectations of our customers today, while preparing for the demands of tomorrow."

AT&T said its Domain Supplier program, launched in September 2009, facilitates a more collaborative relationship with its equipment and software suppliers. The company noted that its network carries 18.7 petabytes of IP and data traffic on an average business day, the equivalent of transporting the entire digitized Library of Congress more than 250 times. This traffic volume has doubled over the last four years. The network includes more than 880,000 route miles of fiber-optic cable.

AT&T in January announced total 2010 capital expenditures are expected to be between $18 billion and $19 billion, a level framed by the expectation that regulatory and legislative decisions relating to the telecom sector will continue to be sensitive to investment.