Thursday, October 26, 2006

Avaya Launches Nationwide Mobile Truck Tour

Avaya is conducting a nationwide mobile bus tour to encourage businesses to develop contingency plans for communicating during and after a major disaster. The bus features technologies that help local businesses maintain critical communications during disasters, and when their communications systems fail, these technologies get lines of communications up and running within an hour.

NET Readies Multi-service, High-speed Switch for Naval Research Labs

Network Equipment Technologies has received initial advance orders for its NX5010 high-speed switching platform, to be shipped upon general availability of the product, which is expected shortly.

The new NX5010, which was jointly developed by NET and Bay Microsystems, is a compact, scalable, 10 Gbps multi-service aggregation and switching platform. The NX5010 enables geographically dispersed data centers to connect and enables multiple components currently required to perform SAN to WAN communications to be replaced and collapsed into a single system. Target customers include the government and financial sectors.

During testing, U.S. Naval Research Laboratory used the platform to transfer 60 terabytes of InfiniBand data over a distance of 4500 km in only 32 hours -- believed to be a record for the largest amount of InfiniBand data ever transferred per unit time over a wide area network.

The NX5010 utilizes Bay Microsystems' Biscayne and Montego programmable packet processors to enable line-rate multiservice protocol conversion and transport with hard QoS (Quality of Service) management capabilities.

Taiwan's Chunghwa Telecom Reaches 3.97 Million BB, 8.4 Million Mobile Users

Taiwan's Chunghwa Telecom 47,000 new ADSL subscribers and 53,700 new FTTB subscribers in the third quarter, bringing its total number of broadband subscribers to 3.97 million as of the end of September 2006.

Additional highlights for 3Q06:

  • Total revenue increased 2.2% QoQ to NT$47.38 billion, of which 34% was from fixed-line services, 40% from mobile services and 24% from Internet and data services. The increase in revenues was mainly driven by continued growth in the Internet and data businesses.

  • Internet & data and mobile revenues increased 3% and 2.3% QoQ, respectively

  • Net income increased 6.6% QoQ to NT$11.14 billion

  • At the end of September 2006, the company had 8.42 million mobile subscribers, with postpaid subscribers growing 4.2% YoY in the first nine months.

  • Chunghwa remains the leading mobile operator in Taiwan in terms of both 2G revenue and 2G subscriber market share with 35.6% and 41.1% respectively as of the end of September 2006.

  • Chunghwa added 188,000 3G subscribers in 3Q06, which brought the total to 597,000.

Conexant's STB Business Records 5th Consecutive Quarter of Double-Digit Growth

Conexant Systems reported revenues of $245.9 million for its fourth fiscal quarter, within the guidance range communicated at the beginning of the quarter, down 2.3 percent from third quarter fiscal 2006 revenues of $251.6 million, and up 14.4 percent from $214.9 million in the fourth quarter of fiscal 2005. Core gross margins in the fourth quarter of fiscal 2006 increased to 45.8 percent of revenues. Core operating income in the fourth quarter of fiscal 2006 was $20.7 million, compared to third quarter fiscal 2006 core operating income of $25.5 million.

Fiscal 2006 was another year of significant progress for Conexant," said Dwight W. Decker, Conexant chairman and chief executive officer. "Year-over-year revenues increased 34 percent, we achieved our highest-priority goal of delivering 10 percent core operating margins in the third fiscal quarter, two quarters ahead of schedule, and we remained solidly profitable on a core basis exiting the year. We also improved core gross margins as a percent of revenues by more than five points during the year."

Among the highlights, Conexant's Broadband Media Processing business, and its set-top box business, achieved record revenues and have now delivered five quarters of sequential double-digit revenue growth.

Schwarzenegger Forms California Broadband Task Force

California Gov. Arnold Schwarzenegger held a press event to announce a new task force for promoting broadband networking in California. The event highlighted the possibility of telemedicine.

Schwarzenegger signed an executive order designating one state agency -- Business, Transportation & Housing (BT&H) -- as lead coordinator for implementing the state's broadband policy. The agency will create a database linking private broadband companies with state transportation agencies, permitting companies to better coordinate fiber optic installation. It will also establish a pricing policy for private companies paying for "rights-of- way" access to state roads. Previously, charges to lay fiber varied widely--the order sets pricing based on actual costs incurred by the State.

The event was held less than two weeks before the election.

Turin Acquires Assets of White Rock Networks

Turin Networks acquired the product portfolio and the majority of the material assets of White Rock Networks, a provider of next-generation optical transport products for metro networks, for an undisclosed sum. The deal expands Turin Networks' product portfolio and carrier customer base to over 300 customers worldwide.

White Rock Networks' product portfolio consists of the VLX 2020 Optical Transport System, the VLX 2006 Multiservice Access Platform, the VLX 300 and 400 Service Edge Concentrators and the VLXpert EMS.
  • In December 2002, White Rock Networks, a start-up based in Richardson, Texas closed $42 million in fourth-round venture funding for its next-generation optical transport systems for the local metro transport market. White Rock was focused on the Multi-service Provision Platform (MSPP) market as well next-generation SONET. White Rock tool a unique approach to the MSPP problem by breaking it into pieces - modular, stackable product elements. White Rock also featured a software-based control plane that transforms their modular "building-blocks" into a single network element. By that point, White Rock had raised $144 million since its inception in 1999. The new funding was led by Oak Investment Partners, and included all of White Rock's existing major investors: Oak Investment Partners, Mayfield Fund, Meritech Capital, Fremont Communications, Fremont Ventures, Investor AB (through its wholly owned subsidiary, Investor Growth Capital), Hook Partners, Gulf International Bank, and Pacesetter Capital Group. In additional, 3i, a leading international venture capital investment firm, joined the round.

  • White Rock Networks was founded in November 1999 and was headed by Lonnie Martin (previously President of ADC's Business Broadband Group).

Espial IPTV Makes Executive Appointments

Espial, a supplier of IPTV middleware and applications, named Brian Mahony as its new VP of Marketing and Bob Daly as CFO.

Mahony most recently served at Netcentrex (acquired by Commverse). Prior to Netcentrex, Mahony's roles included VP Marketing and Business Development at Tundo Corporation, Director of Business Development and Strategy at Unisphere (acquired by Siemens and Juniper Networks for $740M), and Business Development Manager at Nortel.

Mr. Daly is a Chartered Accountant and previously served as Vice President of Finance for JDS Uniphase. Other roles included CFO for Oprel Technologies and Controller for Cognos Incorporated.

NTT DoCoMo Reports Flat Revenue, Intense Competition

For the six months ended 30-Sept-2006, NTT DoCoMo reported operating revenue of Y2,383 billion, up 0.4% compared to the same period last year, while operating income was Y516 billion, down 7.4% compared to last year, and income before taxes was Y309 billion, down 17.8% compared to a year earlier.

NTT DoCoMo said it plans to increase CAPEX in the second half of its fiscal year in order to reinforce the quality of its FOMA network. Spending will rise to Y910 billion, up Y11 billion from initial plans. The company also plans to introduce more than 20 new handset models to respond to the increasingly fierce competitive environment.
  • In August, NTT DoCoMo launched HSDPA service in metropolitan Tokyo, offering downlink speeds of up to 3.6 Mbps, approximately ten times faster than current FOMA service.

NTT DATA to Sell U.S. Datacenter Business in NJ

NTT DATA will sell its U.S. datacenter service provider business to Quality Technology Services Holding LLC ("QualityTech"), a privately held provider of data center facilities and managed services. Financial terms were not disclosed. NTT DATA said will focus its resources on IT services.

Wednesday, October 25, 2006

Axtel to Acquire Avantel, Combining Networks in Mexico

Axtel agreed to acquire Avantel Infraestructura in a plan to create a fully complementary national telecommunications company in Mexico providing local, long-distance, broadband and data, in a transaction valued at $500 million. The deal combines AXTEL's hybrid wireline and fixed-wireless local access network, and 683 kilometers of metropolitan fiber optic rings, with Avantel's 7,700 route kilometers of long-haul fiber optic network and 300 kilometers of metropolitan fiber optic ring.

The merger would consolidate AXTEL's position as the second-largest fixed-line integrated telecommunications company in Mexico.

NETGEAR Posts Revenue of $151.6 million, 36% year-over-year growth

NETGEAR's Q3 net revenue increased to $151.6 million, 36% year-over-year growth and non-GAAP net income increased to $11.9 million, as compared to $9.1 million in the comparable prior year quarter, 31% year-over-year growth.

NETGEAR launched a total of 10 new products in the third quarter, with the most important being NETGEAR's SSL VPN Concentrator 25 and Skype Wi-Fi Phone.

Net revenue from service providers reached 23% of total revenue in the third quarter

AT&T U-verse VOD to Include Warner Bros. Movies

AT&T reached a distribution deal with Warner Bros. Home Entertainment to include the studio's current and catalog titles as part of the AT&T U-verse TV video-on-demand (VOD) programming lineup. Financial terms were not disclosed.

"Warner Bros. has always been focused on providing our content to consumers when and where they want to view it," said Deanne Lewis, director, On-Demand Sales of Warner Bros. Home Entertainment Group. "We are pleased to join with AT&T to offer our award-winning movies as part of the U-verse on-demand library. AT&T U-verse TV not only allows us to continue to extend our reach but also provides consumers with more viewing options."

AT&T Offers Remote Home Monitoring Video Service

AT&T introduced a new home monitoring service that enables customers to use both personal computers and Cingular wireless devices to access high-quality, streaming digital video and other real-time data and information from their homes. The service combines live and recorded video (non-audio) capabilities with a range of environmental sensor options. Users can customize alerts and actions.

For example, a user can program the service to send a text message alert to a cell phone when motion is detected in an area of the home, while at the same time automatically turning on lighting and recording video of the same area.

AT&T is offering a $199 starter package that includes:

  • A pan-and-tilt IP camera

  • Two power modules that enable device connectivity via home power outlets

  • A wireless door/window sensor

  • A wireless gateway for connecting equipment to a home network

Thereafter, the service is provided for $9.95 a month.

Comcast Credits Triple Play for Growing Momentum

Citing increased demand for its Triple Play service bundle, Comcast reported that revenue increased 12% to $6.6 billion in the third quarter of 2006 (results are presented as if the acquisition of Susquehanna Communications and the Adelphia/Time Warner transactions were effective on January 1, 2005.)

Some operational highlights for Q3:

  • Revenue generating units (RGUs) increased 1.486 million in the third quarter of 2006 or 82% from prior year net additions.

  • Added 558,000 new digital subscribers during the quarter. Digital penetration now exceeds 50%.

  • Video revenue increased 9% to $4.2 billion in the third quarter of 2006, reflecting growth in digital customers and increased demand for new digital features including ON DEMAND, digital video recorders (DVR) and HDTV programming, as well as higher basic cable rates and subscribers.

  • Basic video subscribers increased by 10,000 subscribers to 24.1 million during the third quarter of 2006 compared to a decline of 44,000 subscribers in the third quarter of 2005.

  • Comcast ended the quarter with 12.1 million or 50% of video subscribers taking digital services, a 1.6 million or 16% increase from one year ago.

  • Growth in video revenue and digital cable subscribers also reflects increasing consumer demand for new digital features including ON DEMAND, driving a pay-per-view revenue increase of 31% in the third quarter of 2006 from the same time in 2005.

  • Added 536,000 high-speed Internet subscribers during the quarter - the most quarterly additions in two years. Comcast now has 11.0 million high-speed Internet subscribers or 24% penetration of available homes.

  • Added 483,000 Comcast Digital Voice (CDV) customers during the quarter, for a total base of 2.1 million phone customers. There was a loss of 102,000 circuit-switched customers. CDV service now marketed to 31 million homes or 65% of Comcast's footprint.

  • Capital expenditures of $1.25 billion in the third quarter of 2006 were 25% higher compared to the third quarter of 2005 driven by an 82% increase in RGU net additions over the same time period.

Time Warner Supplies 1 Gbps "Quilt" Connections for U.S. Universities

Time Warner Telecom has deployed Gigabit Ethernet Internet connections to the Indiana GigaPoP, located at IUPUI (Indianapolis University-Purdue University Indianapolis), and the University of Minnesota. The two universities are among the first to contract for Internet connectivity from Time Warner Telecom, after the company was named a preferred provider of high performance network services for The Quilt CIS project. The Quilt provides network service to more than 200 Internet2 universities and thousands of other educational institutions across the U.S.

The Indiana GigaPoP will deploy and manage 1 Gbps of Internet connectivity to Indiana University Bloomington, IUPUI and Purdue University's West Lafayette campus, as well as the vast majority of higher education institutions throughout the state of Indiana as part of the I-Light project that launched in 2001.


Extreme Reports Revenue of $83.4 Million

Extreme Networks reported quarterly revenue of $83.8 million, compared to $97.9 million in the same period last year and compared to $82.4 million in the preceding quarter. Because the company is conducting a review of its historical practices for stock option grants and accounting for option grants, it did not provide GAAP metrics.

Revenues in the U.S. were $34.2 million in the quarter, representing 40.9 percent of total consolidated revenue, compared to $45.1 million or 46.1 percent of revenue in the same quarter a year ago, and compared to $35.0 million or 42.4 percent of revenue in the fourth quarter of fiscal 2006. International revenues were $49.6 million or 59.1 percent of total revenues, compared to $52.8 million or 53.9 percent of total revenues in the first quarter of last fiscal year, and compared to $47.4 million or 57.6 percent of revenue in the fourth quarter of fiscal 2006

Verizon Business Connects SuperJANET5 Research Network

Verizon Business has supplied a state-of-the-art, fibre-optic network for SuperJANET5, the U.K.'s new national research and education network. SuperJANET5 will link 19 regional educational networks across England, Northern Ireland, Scotland and Wales, supporting a potential user base of up to 18 million users.

Verizon Business supplied an autonomous network backbone, with a dedicated, geographically diverse fiber infrastructure. The network can scale to terabit-per-second capabilities.


Vitesse Releases PMD devices for BPON, EPON and GPON

Vitesse Semiconductor announced the general availability of its "PON PRO" family of physical media dependent (PMD) devices for BPON, EPON and GPON applications. To date, PON PRO products have won over twenty designs worldwide with module manufacturers designing Optical Line Termination (OLT) and Optical Network Unit (ONU) applications for the FTTH market, mostly in Asia.

Riverbed Adds 300 Customers in Q3

Riverbed Technology reported Q3 revenue of $24.6 million, which represents a sequential increase of 36% from the immediately preceding quarter and a year-over-year increase of 247% from the third quarter of last year. The net loss on a GAAP basis for the third quarter of 2006 was $3.1 million, or $0.16 per share, compared to a net loss of $6.1 million in the second quarter of 2006 and a net loss of $3.9 million in the third quarter of 2005. Riverbed's third quarter of 2006 GAAP results included $2.1 million of non-cash stock-based compensation expenses related to employee stock options.

Riverbed added approximately 300 new customers in Q3, bringing its cumulative customer total to over 1,300 since it began shipping Steelhead wide-area data services (WDS) appliances in mid-2004.

Global Crossing to Acquire Impsat for Latin American Presence

Global Crossing agreed to acquire Impsat, a provider of private telecommunications network and Internet services in Latin America, for $336 million, consisting of $95 million in cash and assumption of $241 million of debt.

Impsat currently provides services to more than 4,500 national and multinational clients, and has operations in Argentina, Colombia, Brazil, Venezuela, Ecuador, Chile, Peru and the United States.

The companies have had a commercial relationship since 2000, when Global Crossing selected Impsat as one of its providers of Point of Presence (PoP) facilities for Global Crossing's Latin American network, known as South American Crossing.

Global Crossing said Impsat's extensive IP-based intercity network, 15 metropolitan networks and 15 advanced hosting centers will provide a greater breadth of services and coverage to its Latin American operations. Global Crossing expects the acquisition to contribute annual revenue of more than $270 million, and to yield annual Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of more than $70 million after operational synergies are fully realized.

  • In August 2006, Global Crossing announced a cash offer to acquire all of the issued and to-be-issued shares of Fibernet Group Plc , a UK-based provider of specialist telecommunications networks, for approximately $96.1 million (50.6 million British pounds sterling). Fibernet serves a marquee roster of UK corporate enterprise and carrier customers, including the Bank of England, Citigroup, IBM and Carphone Warehouse. provides its services from a national fiber network in the UK and also from its metropolitan networks in London, Bristol, Birmingham, Edinburgh, Frankfurt, Glasgow, Leeds, Manchester and Reading. The company has more than 100 points of presence in the UK and an additional 12 in Frankfurt, Germany.