Thursday, September 9, 2010

Tellabs Opens Research Lab in Melbourne, Australia

Tellabs announced plans to open an R&D lab in Melbourne, Australia. The company has operated its Australian HQ in Melbourne since 2006.

Extreme Posts Revenue of $84 Million, up 26% YoY

Extreme Networks' net revenue increased 26 percent to $83.8 million for its first quarter of fiscal 2011, ended September 26, 2010. This compares with revenue of $66.3 million in the first quarter of last year. Previously issued guidance to investors was for net revenue of $81-$84 million.

Net income on a GAAP basis for quarter was $2.7 million or $0.03 per diluted share and compares to a net loss on a GAAP basis for the 2010 fiscal first quarter of $5.5 million or $0.06 loss per diluted share. In the 2010 fiscal fourth quarter, net income on a GAAP basis was $3.4 million or $0.04 per diluted share.

For the quarter, total net revenue in North America was $29.5 million, revenue in EMEA was $36.5 million, and revenue in APAC was $17.9 million. That compares to revenue of $36.3 million in North America, $36.8 million in EMEA, and $12.4 million in APAC in the 2010 fiscal fourth quarter.

"Both EMEA and APAC posted solid performance, as we benefited from improvement in orders for Service Providers in EMEA through our Strategic Alliance partners, and we closed large orders in Korea that we had mentioned on our fourth quarter earnings call," said Oscar Rodriguez, President & CEO of Extreme Networks. "While our over-all performance was solid, performance in North America did not meet our expectation, as we believe our decision to make changes in our sales organization affected our ability to execute within the quarter. We believe the changes we are making will result in a stronger North American sales organization."

MASERGY Files For IPO -- Virtualized Network Services

Masergy Communications, which provides managed, secure virtualized network services to enterprises, filed a registration statement with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of shares of its common stock. BofA Merrill Lynch and Deutsche Bank Securities Inc. will serve as joint book-running managers for the offering, with Stifel Nicolaus Weisel and Pacific Crest Securities LLC acting as co-managers.

Alcatel-Lucent Opens its Velocix CDN Platform to Strategic Partners

Alcatel-Lucent has established a strategic alliance program for its Velocix Digital Media Delivery Platform, which is a content delivery network (CDN) solution for service providers. Building an ecosystem helps ensure that service providers can benefit from a range of pre-integrated technology components to accelerate the deployment of multiscreen consumer solutions.

The program seeks to foster collaboration in four main focus areas:

  • Manage -- For Content Management, Ingestion and Encoding

  • Publish -- Players, EPG/UI and Feed Aggregation

  • Monetize -- Ad management, Revenue enablers, Transaction processing

  • Deliver -- Velocix Digital Media Delivery Platform provides the delivery capabilities.

Initial members of this alliance program include: 3Crowd, Adobe, Aspera, Blue Coat Systems, Clearleap, Elemental Technologies, Inlet Technologies, Microsoft, RGB Networks, Rights Tracker, thePlatform, and VidZapper.

Alcatel-Lucent noted that this program builds on its multi-industry ng Connect Program, which focuses on the development and rapid deployment of next generation broadband services over LTE.

FCC Chairman Sets "Consumer Empowerment Agenda"

In a speech to the Center for American Progress in Washington, D.C., FCC Chairman Julius Genachowski said focusing on the needs and concerns of consumers has been a top priority of his agenda, along with unleashing spectrum, and driving broadband deployment and adoption, and a thriving broadband ecosystem.

Focusing on consumers is critical because it is one of the FCC's core responsibilities and, he argued, because pro-consumer policies are pro-competition and pro-innovation.

So what is the Consumer Empowerment Agenda? Technology-driven transparency is at the core. This includes:

1. Broadband service transparency -- enabling consumers to know what broadband speeds are promised and actually delivered.

2. Fees and billing transparency -- dealing with "mystery fees" for unauthorized or undesired services on monthly billing statements. Examples include unauthorized data fees for mobile customers who do not have a data plan.

3. Bill Shock -- preventing bills from jumping unexpectedly by tens, hundreds, or thousands of dollars from one month to the next. Common cases are when a subscriber is charged for unknowingly exceeding his or her
allotments for voice, text or data, or gets hit with roaming charges that are unexpected.

The FCC estimates that 30 million Americans have experienced bill shock in one form or another -- that's 1 in 6 mobile subscribers.

4. Early termination fees -- the FCC acknowledges that these can be legitimate but said that too often people are confused and don't have clear information about their choices -- such as whether or not they can buy phones without an ETF.

Vodafone Essar Outsources 3G Network to Nokia Siemens Networks

Vodafone Essar, one of India's leading cellular service providers, has selected Nokia Siemens Networks to supply, implement and manage its 3G network in six of the nine circles. Nokia Siemens Networks will provide network planning and project management. It will supply radio and core network technology, and it will also operate the 3G network for three years under a managed services contract. Nokia Siemens Networks will use its own NetAct network management system to monitor and optimize its network performance. Financial terms were not disclosed.

ADTRAN Posts Revenue of $162 Million, up 27%

ADTRAN reported Q3 sales of $162.9 million, up 27% over the $128.1 million for the same period last year. Net income increased 49% to $32.1 million.

ADTRAN Chief Executive Officer Tom Stanton stated, "During the quarter, we continued to benefit from our positioning with industry growth areas as we experienced increased revenues across all our carrier segments and all our enterprise channels. Increasing demand for high speed residential and enterprise network services coupled with accelerating growth in mobile demand all led to a record revenue performance. Our Broadband Access category led this increase achieving 53% growth over the prior year, setting a new record level. This was followed by our Internetworking category which posted 39% year over year growth, also achieving a record level. We believe the broad based increase in revenue we are seeing demonstrates the success of our strategies to sustain solid, long term growth for our company."

Bloomberg: Clearwire Considers Spectrum Auction for New Funding

Clearwire is considering bids for some of its spectrum in an effort to raise the additional funding needed to complete the buildout of its own network, according to Bloomberg. The report estimates that bids could bring in $2.5 to $5 billion and prospective purchasers include the leading U.S. wireless carriers.

ZTE Shows LTE-advanced with 1 Gbps Downlink

ZTE demonstrated a prototype LTE-advanced system delivering a peak downlink rated of 1 Gbps. LTE-advanced will leverage carrier aggregation, enhanced antenna, relay, coordinated multi-point Tx/Rx (CoMP) transmission and other key technologies to achieve these rates. ZTE said it expects to introduce commercial LTE-advanced products in 2012. The demonstration occurred at P&T/Expo Comm in Beijing.

NTT DOCOMO Tops 15 Million for iD Mobile Credit Payment Service

NTT DOCOMO has passed the 15 million subscriber mark for tis "iD" mobile credit payment service, which combines postpaid electronic money with DOCOMO handsets and compatible credit cards. The service was initially launched in December 2005 and reached 5 million subscribers in November 2007, 10 million in December 2008 and 15 million in August 2010.

The number of subscribers using handsets equipped with contactless IC chips (Osaifu-Keitai) compatible with iD has surpassed 37.5 million, representing over 60% of all DOCOMO subscribers. Currently, there are approximately 481,000 iD-enabled payment terminals across Japan, allowing users to make payments just by waving compatible mobile phones or cards over them. This includes more than 90% of all convenience stores in Japan, including all am/pm and Seven-Eleven stores. iD can also be used at McDonald's locations, Coca-Cola vending machines, and electronics retailers as well as in taxi cabs and shopping malls.

DOCOMO, which is offering a credit payment service known as "DCMX", and 67 credit card companies such as Sumitomo Mitsui Card Company, Limited are currently offering credit payment services via iD. A number of companies provide iD-enabled plastic credit cards in addition to Osaifu-Keitai handsets.

BT Wholesale Implements Cisco's Content Delivery System

BT Wholesale has selected a Content Delivery System from Cisco as the backbone for its video content delivery network. The Cisco Content Delivery System (CDS) using medianet technologies can cache content deep in the broadband network and so deliver it much closer to the end user -- avoiding congested areas of the network. Cisco said this, in turn, enables broadcasters to provide video content -- and in the future live TV - with an assured level of service from BT Wholesale all the way to the viewer, providing uninterrupted access even at peak times.

Australia's National Broadcaster Selects Ericsson for Digital Free-to-Air TV

Australia's national broadcaster, the ABC, has awarded a five-year contract to Ericsson to supply satellite video compression technology to expand the reach of high-definition and standard-definition digital TV programming across the country. As Australia undergoes the switch from analog to digital free-to-air TV, the Australian government is funding a new satellite service to provide digital television to viewers in remote areas where free-to-air digital TV can't be received by TV antennas. About 247,000 Australian households in these "digital black spots" will benefit from the initiative. The system uses a range of Ericsson head-end equipment including bandwidth-saving MPEG-4 AVC EN8190 HD and EN8130 SD encoders, Reflex statistical multiplexing for channel bitrate allocation and management, and nCompass Control and Monitoring. Deployment starts in December 2010. Financial terms were not disclosed.

Swisscom Appoints Head of Network & IT Division

Swisscom has selected Heinz Herren to take over as Head of its Network & IT Division effective 1-January-2011, replacing Guido Garrone, who has decided to return to Italy. Heinz Herren spent five years as Head of Marketing for Fixnet Wholesale Services, before taking over responsibility for the small- and medium-sized enterprises (SME) business at Swisscom in mid 2006.

At the same time, Roger Wüthrich-Hasenböhler, who currently works in Swisscom's Corporate Customer business, will replace Heinz Herren as Head of the Small and Medium-Sized Enterprises Division. Günter Pfeiffer, Head of Human Resources, is leaving Swisscom.

Bell Canada Buys into CTV -- Combining Content with the Network

BCE Inc. (Bell Canada) will acquire 100% of CTV, the leading Canadian television, digital media, conventional TV and radio broadcaster, for $1.3 billion from The Woodbridge Company Limited, the Toronto-based holding company of the Thomson family; Ontario Teachers Pension Plan; and Torstar Corporation.

The deal allows Bell to combine a premier video content business with its broadband network capabilities.

CTV operates Canada's No.1 television network with 27 stations across the country; 30 specialty channels, including TSN and RDS, the top English and French specialty channels; premium online video programming and properties such as,,,, and; and CHUM Radio, which operates 34 radio stations throughout Canada.

Bell already offers a nationwide DTH video service with about 2 million subscribers. It has a mobile TV offering and is in the process of launching its Bell Fibe IPTV service in major urban centres. Bell TV now represents
approximately 40% of total residential service revenues, surpassing traditional home phone revenues.

Bell promises to accelerate its wireline and wireless (HSPA+) video capabilities with significant new investments in broadband networks, including capital expenditures of almost $3 billion in 2010 alone.

The company said Canada's current regulatory and technological environment allows integrated players to
leverage content ownership for differentiated offers across all three screens, noting that Quebecor, Rogers and Shaw all already own video content businesses as part of their 3 screen strategies.

"Our industry is changing rapidly. Increasing vertical integration across the communications landscape, ongoing
technological advancement and key regulatory developments introduce new opportunities with the
ownership of high-demand content by Bell. Our acquisition of CTV more than levels the playing field in our
increasingly competitive industry," said George Cope, President and CEO of Bell Canada and BCE.

University of Tokyo, Fujitsu and NEC Demonstrate Quantum Cryptography

Researchers in Japan have achieved quantum cryptographic key distribution at a world-record distance of 50 km using transmission from a single-photon emitter. The University of Tokyo, Fujitsu Laboratories, and NEC collaborated to developed a 1.5 µm single-photon emitter suitable for long distance data transmission. This overcomes two obstacles in quantum cryptography -- previously, a single pulse from a light source would often emit two or more photons, which meant that eavesdropping might go undetected, and secondly, the distance required for any practical system.

With quantum cryptography, a quantum cryptographic key is transmitted one photon at a time, the smallest increment possible. If an eavesdropper is listening in on the transmission line, the basic principles of quantum theory mean that the act of eavesdropping will change the signal in a way that the intended recipient can immediately detect.

Fujitsu said this research can be considered the first in the world to bring together work in quantum-dot optical devices with quantum information technology. Future work will focus on making systems using single-photon emitters more efficient, with the goal of practical implementations in 5--10 years.

Nokia appoints Stephen Elop to President and CEO

Stephen Elop has been appointed President and Chief Executive Officer of Nokia as of September 21.

Elop currently heads Microsoft's Business Division, and previously held senior executive positions in a number of US-based public companies, including Juniper Networks, Adobe Systems and Macromedia Inc. He holds a degree in computer engineering and management from McMaster University in Hamilton, Canada, which is his home country.

Elop replaces Olli-Pekka Kallasvuo, who has been with the company for thirty years. Kallasvuo will continue to chair the Board of Nokia Siemens Networks in a non-executive capacity. In accordance with the terms and conditions of his service contract, Kallasvuo is entitled to a severance payment consisting of 18 months gross base salary and target incentive which totals approximately 4.6 million euro. He will also receive as compensation the fair market value of the 100 000 restricted Nokia shares granted to him in 2007, which vest on October 1, 2010.

As of September 10, 2010, the Nokia Board will consist of the following members: Jorma Ollila (Chairman), Dame Marjorie Scardino (Vice Chairman), Lalita D. Gupte, Bengt Holmström, Dr. Henning Kagermann, Per Karlsson, Isabel Marey-Semper, Risto Siilasmaa, Keijo Suila.
  • Nokia appointed Olli-Pekka Kallasvuo as President and Chief Operating Officer effective October 1, 2005, and President and CEO from June 1, 2006. He replace Nokia President, Pekka Ala-Pietila, who resigned to pursue personal interests.

Vodafone Announces Reorganization

Vodafone Group Plc has simplified its organizational structure with a goal of focusing on its key commercial and financial priorities: customer and commercial strength, leadership in data, brand advocacy, cost efficiency and shareholder returns. Accountability for the Group's operating companies will be brought into two operating regions', to reflect the different nature of assets/geographies and different development of the sector in various economies:

  • Europe: comprising all of the existing controlled businesses in Europe, plus the Czech Republic, Hungary, Romania and Turkey. Michel Combes will continue to be the Regional CEO in charge of the Europe Region.

  • Africa, Middle East and Asia Pacific: comprising all emerging economies in Africa, the Middle East and Asia, plus Australia, New Zealand and Fiji. Nick Read will be the Regional CEO in charge of this Region.

The Group CEO, CFO and Strategy & Business Development Director will be responsible for effecting strategies to maximize shareholder value from Vodafone's investments: Verizon Wireless, SFR, Polkomtel and Bharti Holding, which will no longer be held within the regional structures.

Group Marketing, Vodafone Business Services, Vodafone Global Enterprise, Partner Markets, and other commercial units will be combined into a new organization, Group Commercial, which will be responsible for all commercial activity. This unit will be headed by Morten Lundal as Group Chief Commercial Officer (CCO) and he will report to the Group CEO.

All Technology functions in Vodafone's operating companies will report into Group Technology. Steve Pusey, as Group CTO, will report directly to the Group CEO.

Earlier last week, Vodafone announces plans to sell its entire 3.2% interest in China Mobile and the continuation of commercial and technology cooperation between the companies. Vodafone expects the cash consideration to be approximately £4.3bn before tax and transaction costs. The company plans that approximately 70% of the net proceeds will be returned to shareholders by way of a share buyback with the remainder used to reduce the Group's net debt.

Verrex Partners with MASERGY on Videoconferencing over MPLS

MASERGY will deliver comprehensive videoconferencing solutions with Verrex, which provides global systems integration and management services for enterprises. The services will run over MASERGY's native IP MPLS network, which has guaranteed quality of service and strong service level agreements.

MASERGY said its network is able to deliver 100% in-sequence packet delivery, maximum latency variation (jitter) of 1ms, and sub-1 second fast fail-over (network recover).

Indonesia's Telkomsel Tests LTE with ZTE

Telekomunikasi Selular (Telkomsel), Indonesia's largest mobile operator, is rolling out an LTE trial network with ZTE. As the leading supplier for Telkomsel's UMTS networks, ZTE's advanced Software Defined Radio (SDR) technology will seamlessly upgrade the 2G/3G service to LTE.

Telkomsel currently serves 92 million mobile subscribers (more than 50% market share in the country).

ZTE noted that it has now rolled-out seven LTE commercial networks and over 50 LTE trials in Europe, North America, the Middle East and Asia Pacific areas.