Wednesday, August 25, 2010

Taiwan's Chunghwa Sees Further FTTx Substitution for ADSL

Taiwan's Chunghwa Telecommunications reported total consolidated revenue for Q2 2010 of NT$49.7 billion up 3.3% year-over-year, of which 34.9% was from its domestic fixed business, 44.5% was from its mobile business, 12.2% was from its Internet business, 7.5% was from its international fixed business and the remainder was from other business segments. The company credited the year-over-year increase to Taiwan's economic recovery and its own marketing efforts. During the period, overall CAPEX spending was down 7.8% and the company saw continued migration of its broadband customers from ADSL to FTTx.

Some highlights:

  • Domestic fixed line business revenue decreased of 1.1% year-over-year. Of this, local revenues decreased by 2.2% mainly due to mobile and VOIP substitution. The 12.6% decline in domestic long-distance revenues was also due to mobile and VOIP substitution, and the interconnection fee adjustment at the end of 2009.

  • Broadband access revenue, including ADSL and FTTx, increased by 1.9% year over year to NT$5.0 billion. Although ADSL access revenue decreased as more ADSL subscribers migrated to fiber solutions, the decrease was fully offset by growth in FTTx access revenue. Chunghwa believes that this migration will continue as customers continue to demand increased bandwidth, and that broadband revenue will therefore increase over time.

  • Mobile revenue increased by 6.5% year over year to NT$22.1 billion, mainly due to growth in handset sales and mobile VAS revenue related to our smartphone promotion.

  • Internet revenue increased by 7.0% to NT$6.0 billion, mainly attributable to Internet services growth, which was driven by the increase in broadband subscribers and the migration of ADSL subscribers to fiber solutions.

  • International fixed line revenue decreased by 2.3% to NT$3.7 billion, mainly due to VOIP substitution and market competition that was partially offset by growth in leased line revenue.

  • Total capex for the second quarter of 2010 amounted to NT$5.2 billion, representing a decrease of 7.8% year-over-year. Of the NT$5.2 billion in capex, 63.1% was spent on the domestic fixed communications business, 23.1% on the mobile communications business, 6.8% on the Internet business, 4.8% on the international fixed communications business and the remainder was used for other purposes.

  • As of the end of June 2010, fixed-line subscribers totaled 12.4 million.

  • Total broadband subscribers amounted to 4.3 million as of June 30, 2010, accounting for 82.2% of market share. Chunghwa continued its efforts to migrate ADSL subscribers to FTTx solutions. By the end of the second quarter of 2010, there were 1.85 million FTTx subscribers, accounting for 42.8% of Chunghwa's total broadband subscriber base.

  • By the end of the second quarter of 2010, the number of ADSL and FTTx subscribers with a service speed greater than 8 Mbps reached 2.2 million, representing 50.9% of total broadband subscribers, compared to 48.8% at the end of the first quarter of 2010.

  • HiNet subscribers totaled 4.07 million at the end of the second quarter of 2010.

  • The MOD (IPTV) subscriber number is over 720 thousand up to now.

  • As of June 30, 2010, Chunghwa had 9.4 million mobile subscribers, an increase of 4.5% compared to 9.0 million at the end of the first half of 2009.

  • Chunghwa had 5.1 million 3G subscribers at the end of June 2010, accounting for 53.9% of its total subscriber base.

AT4 Wireless Establishes LTE Test Lab in Taiwan

AT4 wireless announced new testing services covering Release 8 (LTE) and Release 7 (HSPA+). The facility started operations in Taiwan last October 2009, and during 2010 obtained ISO 17025 accreditation and became GCF and PTCRB accredited laboratory for GSM, GPRS, EDGE, WCDMA and HSPA conformance testing, including Protocol and RF.

AT4 is based in Malaga, Spain and also has a lab in Herndon, Virginia.

Chile's Movistar Upgrades with NSN's HSPA+

Movistar Chile, a Telefonica Group company, has selected Nokia Siemens Networks' HSPA+ technology and services to upgrade its network. This will increase downlink speed to 21 Mbps and uplink speed to 5.8 Mbps peak data rates to devices like smart phones and data cards. It will also increase overall network capacity to accommodate the increased mobile broadband subscriber base. Financial terms were not disclosed.

Cisco to Acquire ExtendMedia for Video Content Management

Cisco agreed to acquire ExtendMedia, a privately-held company based outside of Boston with the majority of its employee base in Toronto, for its software-based Content Management Systems (CMS). Financial terms were not disclosed.

ExtendMedia's "OpenCASE" CMS is designed to manage the entire lifecycle of video content through monetization for pay media and ad-supported business models. Cisco said the technology will help service providers deliver multi-screen offerings as the market transitions to IP video.

"As the video market transitions and consumers expect multi-screen engagement, service providers are enhancing their infrastructure to manage and deliver video to any device while providing a rich user experience," said Enrique Rodriguez, senior vice president and general manager, Cisco's Service Provider Video Technology Group. "ExtendMedia will strengthen Cisco's position in the delivery of IP video services by enabling service providers to provide a more interactive and personal experience and to optimize quality for consumer viewing devices."

BT Confirms Selection of Huawei for Next Gen Access

BT's Openreach has selected Huawei as one of its strategic partners for deploying Next-Generation Access on a national scale as part of BT's £2.5 billion investment in fibre. Huawei will supply a number of access products for the rollout and has already been working with Openreach to support the launch of FTTC super-fast broadband services this year.

"We are proud to contribute to the construction of BT's pan-UK fibre deployment," said Chengdong Yu, president of Huawei Europe. "Huawei has extensive experience in designing and delivering optical access solutions around the world and we will apply this experience together with our strong innovation abilities, to collaborate with BT in achieving its strategic goals and bringing super-fast broadband to the UK."

List of Carriers Planning LTE Deployment Tops 100

There are now 101 firm LTE network deployments in progress or planned in 41 countries, according to the Global mobile Suppliers Association (GSA). This figure includes three LTE systems which have launched commercial service - in Sweden, Norway, and Uzbekistan. GSA anticipates up to 22 LTE networks will be in commercial service by end 2010. The report provides an update on LTE activities in each country.

Another 31 operators are engaged in various LTE pilot trials and technology tests (these are referred to as pre-commitment trials). Taken together, it means that 132 operators are now investing in LTE in 56 countries.

Alan Hadden, President, GSA said: "Our latest Evolution to LTE report shows how the pace towards LTE has quickened, which is easy to see from the increasing numbers of operator trials and announcements, and positive actions by several regulatory bodies around the world".

The updated GSA report notes that while the majority of LTE deployments today are using the FDD mode, there is significant operator interest in the TDD mode.

LTE FDD and LTE TDD are complementary technologies and standardized by 3GPP. A number of key technology milestones have been demonstrated in recent weeks which confirm how the LTE TDD system is maturing towards commercialization.

The GSA report is online.

Qwest Introduces Cloud-based Recovery Service

Qwest Communications introduced a cloud-based, Real-Time Application Recovery service to keep business operations running uninterrupted in the event of a system failure and at a much lower price point than conventional backup solutions. As a cloud service, it does not require capital expenses or in-house expertise.

The Qwest Real-Time Application Recovery service, which is offered in partnership with Geminare, a leader in the Recovery as a Service (RaaS) market, protects the most popular applications, including e-mail and databases. The solution is fully automated and requires no intervention on the part of the user or customer IT staff.

Qwest Real-Time Application Recovery offers true visibility into the protection and disaster recovery status by offering frequent, detailed and complete non-disruptive health checks.

"By combining Qwest powerful CyberCenter capabilities with Geminare's continuity solution, we're delivering a complete enterprise-grade solution. This cloud-based offering continues to enhance our portfolio with solutions that are attractive to the smaller-size company, yet robust enough for the largest corporation," stated Eric Bozich, vice president of Qwest Product Management.

FiberTech Networks Sold to Investor Group for $500 Million

FiberTech Networks, a privately-held company that operates metro networks in 24 cities in the eastern U.S., announced a changed in ownership. Court Square Capital Partners will acquire Fibertech from its original investors, Nautic Partners and the team at Ridgemont Equity Partners. This transaction will be financed through a combination of equity contributed by investment funds managed by Court Square, as well as investment by the senior management of Fibertech and new debt facilities.

News reports valued the deal at $500-535 million, although the company did not confirm this.

"This opportunity allows Fibertech to continue to operate as a private company, serving and supporting our customers in the way they've come to expect from us over the past decade," said John K. Purcell, President and CEO of Fibertech. "In addition, we have the flexibility to grow and expand our business with the support of a partner who has a long history of investment in the telecom and technology space, and of investing in profitable companies with strong growth potential. This new alliance represents the next stage of growth for Fibertech."
  • Fibertech is based in Rochester, New York. The company has core networks operational over 24 cities including Buffalo, Syracuse, Rochester, Binghamton, White Plains, and Albany, NY; Providence, RI; Pittsburgh, PA; Indianapolis, IN; Columbus, OH; Hartford, Stamford, Bridgeport, New Haven, New London and Danbury, CT; Worcester and Springfield, MA; Concord, NH; Montgomery County, MD; Wilmington, DE; Philadelphia, PA; and Newark and Camden, NJ.

eircom Wholesale Launches Carrier Ethernet Across Ireland

eircom Wholesale launched its NGN Ethernet wholesale telecom service, providing connectivity with speeds from 10 Mbps to 1 Gbps across Ireland. eircom Wholesale, which has over 500 exchanges served at launch, promises substantial cost savings to operators, compared to existing traditional connectivity solutions.
The carrier Ethernet could be used to support mobile broadband, videoconferencing, high-quality voice over IP, next generation cloud computing and bandwidth-intensive imaging services.

Regions which can now access 1Gbps fibre services include Youghal, Mullingar, Enniscorthy, Drogheda and Kilkenny, and dozens of other provincial towns.

Commenting on the announcement, John McKeon, Managing Director, eircom Wholesale said "NGN Ethernet delivers the data product our wholesale customers have been asking for, not just in terms of speed and capacity, but also in terms of reach and cost. We can directly serve over 500 exchanges across metropolitan, suburban and rural Ireland from today. This number will rise as the rollout progresses into 2011."

The NGN Wholesale Ethernet launch follows the announcement of open access Fibre to the Home (FTTH) trials in Sandyford and Wexford Town and an investment by eircom of more than EUR 1 billion over a three year period in network infrastructure, including the construction of the Next Generation Network.

Malaysia's Maxis Selects Huawei for FTTH

Malaysia's Maxis Berhad awarded a contract to Huawei to supply its Next-Generation High-Speed Internet network, including the building and managing of a full-service FTTx network using GPON technologies.

Under the deal, which was signed last week in Kuala Lumpur, Huawei will deliver an end-to-end turnkey services package that includes active and passive equipment, holistic ODN (Optical Distribution Network) designs, and construction management for Maxis' Next-Generation High-Speed Internet network. The project will link homes in Klang Valley, Penang and Johor Bahru using FTTH. In addition to designing and building the active network infrastructure, Huawei will also manage the FTTH network for three years. Financial terms were not disclosed.