Thursday, February 8, 2007

Alcatel-Lucent Reports Large Q4 Loss, Announces Further Job Cuts

In its first quarterly financial report as a combined company, Alcatel-Lucent reported Q4 2006 revenue of EUR 4,421 million, a decrease of 16% compared with revenue of EUR 5,249 million in the year-ago quarter (a decrease of 12% at constant at EUR/USD rate). For the quarter, net income (group share) was EUR (618) million, or EUR (0.27) per diluted share (USD (0.35 per ADS), which included the negative impact of EUR (0.26) per diluted share (EUR (577) million) for restructuring charges and impairment of intangible assets.

Citing "challenging market conditions," the company also announced plans to increase the number of layoffs by 3,500, bringing the total number of expected layoffs to about 12,500 over 3 years.

For the full year 2006 Alcatel-Lucent's adjusted pro-forma revenue was EUR 18,254 million, a decrease of 2%, compared with revenue of EUR 18,574(3) million for full year 2005, operating profit(2) was EUR 1,025 million, compared with EUR 1,411(3) million in full year 2005.

Patricia Russo, Chief Executive Officer of Alcatel-Lucent, stated:

"While the results for the fourth quarter are clearly disappointing, the positive long-term benefits of the merger and the growth potential of Alcatel-Lucent remain as envisioned. Since we began operating as a combined company on December 1, 2006, we have made progress against our integration plans, and we expect to increasingly recognize the benefits of our integration over the course of the year.

"Our newly combined company is focused on supporting the overall transformation occurring in our industry. This includes the transformation of networks to all-IP, video and multimedia content to enhance communication services, broadband mobility as well as high value services."

Some additional highlights include:

  • the access business registered a record quarter with 8.8 million DSL lines delivered (totaling 30.6 million lines for the full year 2006)

Cisco to Acquire Five Across for Social Networking

Cisco agreed to acquire Five Across, a start-up specializing in social networking software, for an undisclosed sum.

Five Across offers software that lets companies augment their websites with full-featured communities and user-generated content such as audio/video/photo sharing, blogs, podcasts, and profiles. The company was founded in 2003 and has 11 employees in San Francisco.

Cisco said social networking functions are of unique interest to media companies, sports leagues, affinity groups and any organization wishing to increase its interaction with its online constituency.

Wednesday, February 7, 2007

InnoPath Enhances its Mobile Device Management Suite

InnoPath Software announced a number of enhancements to its Integrated Mobile Device Management (iMDM) server and client suites, which enable seamless updates from the carrier to mobile phones. The new applications add to InnoPath's firmware, configuration, diagnostics, and security management capabilities across single or multiple operational domains serving both the consumer and business markets.

InnoPath said its iMDM platform, which is deployed at leading operators including Cingular, KDDI, and Sprint, demonstrate the value of MDM every day through tens of millions of successful transactions. Its client is deployed on over 170 handset models.

InnoPath's iMDM Software Management also permits the operator to preserve its place within the mobility value-chain, acting as a nexus for user software downloads, updates, and billing, thereby increasing data ARPU. This capability helps insure that the application running on the feature phone or smart phone is also secure, operates free of bugs, and is up-to-date, improving the subscriber quality of experience.

InnoPath Supplies Mobile Device Management for Samsung

InnoPath Software will supply its Integrated Mobile Device Management (iMDM) solutions to Samsung for deployment on Samsung mobile handsets. The InnoPath solution provides a seamless and efficient way to update handset software and firmware over-the-air. Financial terms were not disclosed.

InnoPath said its standards-compliant mobile device management client has been deployed on over 170 handset models by leading handset manufacturers including Samsung, Sony Ericsson, LG, and Sanyo.

NMS Communications Demos Mobile Apps

At 3GSM World Congress, NMS Communications is showcasing its set of mobile applications and developer platform solution. This includes:

  • Mobile Publishing --allows consumers to capture video through a mobile device and post the content to their own personalized web pages using 3G video calling.

  • Interactive 3G Mobile TV -- the application provides a high quality and highly interactive TV and streaming video for all 3G-UMTS handsets and networks.

  • "MyCaller" Ringback -- allows consumers to send a unique personalized message to everyone who calls them, by replacing the traditional "ring" sound callers hear with music clips, movie lines, sound effects or other audio.

  • Vision VoiceXML Server -- enables rapid deployment of interactive voice and video applications. The IMS-compatible Vision VoiceXML Server gives operators and application providers the ability to rapidly develop and deploy voice and video applications for IP, PSTN and 3G-324M networks.

  • "Open Access" MG 7000A -- an AdvancedTCA hardware platform offering high-speed packet handling, multiple Gigabit Ethernet interfaces, high-density DSP media processing power, IP and optional T1/E1/J1 interfaces.

Sensory Networks Raises $4.9M for Security Acceleration

Sensory Networks, a start-up developing acceleration technology for network security applications, closed US$4.9 million in new financing led by Accede Capital, formerly known as the Deutsche Bank Capital Partners Ericsson Deutsche Technology Fund. Existing investors Technology Venture Partners and the Individuals' Venture Fund also participated in the round.

Sensory Networks offers a line of antivirus and IPS solutions to security appliance vendors serving the SMB market. Sensory's product line includes a range of high-performance content scanning (PCI) acceleration cards, third party appliances and malware signature update services.

Sensory Networks is based in Palo Alto, California, with offices in Sydney, London and Beijing.

Wind River, RadiSys and OpenClovis Supply ATCA for Airvana

Airvana, a supplier of mobile broadband infrastructure products, has adopted a comprehensive, pre-integrated hardware and software solution, jointly developed by the three vendors, as the foundation for its Advanced Telecommunications Computing Architecture (ATCA)-based networking applications. The integrated, commercial-off-the-shelf (COTS), 10G ATCA-based solution is comprised of Wind River's Platform for Network Equipment, Linux Edition, the RadiSys Promentum family of ATCA hardware platforms and OpenClovis Application Service Platform (ASP).

"These COTS products underscore the industry's drive towards hardware and software standardization that will allow infrastructure providers like Airvana to focus its efforts on introducing innovative services to the market in the most timely and cost-effective manner possible," said Frank Chen, vice president of engineering strategy & architecture, Airvana.

Telefónica and Alcatel-Lucent Test Mobile TV Applications

Alcatel-Lucent and Telefónica announced a pilot project for mobile interactive multimedia services in Spain. The pilot project, which started in October 2006 and will run for 6 months, include interactive TV, radio and music services for mobile handsets.

Alcatel-Lucent's Mobile Interactive solution will provide Telefónica's end-users with a new way to hear radio on a mobile phone, allowing them to select different FM radio channels and to browse the Electronic Program Guide of these channels. In addition, interactive services will be linked to the content selected by the operator, that spans voting, alerts and interactive advertising services.

Alcatel-Lucent's "Unlimited Mobile TV" solution uses a 3G-friendly hybrid satellite and terrestrial infrastructure based on the forthcoming DVB-SH broadcast mobile TV standard in the S-Band (2.2 GHz). It enables the delivery of an unlimited number of TV channels to an unlimited mobile audience with unlimited coverage.http:/

Sprint Selects Samsung for WiMAX in Wash. DC

Sprint Nextel has selected Samsung Electronics, a leading provider of telecommunications network systems and handsets, to help develop Mobile WiMAX wireless broadband network infrastructure for the Washington D.C. and Baltimore, MD markets.

Washington D.C. and Baltimore, MD are the first markets awarded to Samsung since Samsung and Sprint Nextel agreed last August to work together on the major US carrier's 4G wireless broadband initiative which will use the Mobile WiMAX (IEEE 802.16e TDD OFDMA) technology standard.

Sprint Nextel is currently planning the network infrastructure for this market, with plans to initially deploy Mobile WiMAX base stations covering Washington D.C., Baltimore, and northern Virginia.

Beginning on December 7, 2006, and using Samsung network equipment and devices, Sprint made the first live Mobile WiMAX data calls in this market which is now demonstrating the delivery of high-speed data and streaming video. Sprint expects to start commercial service in the region in late 2007.

Samsung has committed to delivering six WiMAX- capable devices, including Ultra mobile PCs and personal media players. Samsung also plans to enter the WiMAX chipset business.

BT Adds 697,000 DSL Connections in Q4

BT added 697,000 DSL connections in Q4 2006, giving it a total of 10 million wholesale broadband connections (DSL and LLU) at December 31, 2006, including 1.3 million local loop unbundled lines. BT Retail's share of the net additions in the quarter was 34 percent.

Over 50 per cent of all UK homes now subscribe to broadband services.

BT Group revenue was 5 percent higher at 5,126 million pounds in the quarter with continued strong growth in new wave revenue more than offsetting the decline in traditional revenue.

The strong growth in new wave revenue continued and at 1,880 million pounds was 17 percent higher than last year. New wave revenue accounted for 37 percent of the group's revenue compared to 33 percent in the third quarter of last year. New wave revenue is mainly generated from networked IT services and broadband. Networked IT services revenue grew by 8 percent to 1,117 million pounds, and broadband revenue increased by 39 percent to 520 million pounds.

Revenue from the group's traditional businesses declined by 1 percent, an improvement on recent trends.

Verizon Business Wins Contracts with California's State and Local Governments

Verizon Business announced service agreements covering state and local government entities in California, including state agencies, cities, counties and school districts. The agreements, for five years with the option of two one-year extensions, provide for IP services -- including Hosted VoIP, Private IP and Managed Services -- as well as broadband fixed wireless access.

QUALCOMM and Huawei Showcase MBMS Mobile TV

At the 3GSM World Congress 2007 in Barcelona, QUALCOMM and Huawei Technologies will demonstrate Multimedia Broadcast Multicast Service (MBMS) mobile TV technology. The collaborative demonstration, which follows the completion of successful interoperability testing between the companies, will include a handset based on QUALCOMM's Mobile Station Modem) (MSM) MSM7200 chipset receiving TV programs at 256 Kbps from Huawei's UMTS/HSPA network. The MSM7200 chipset, which is expected to be commercially available in handsets and Smartphones starting the second quarter of 2007, supports 7.2 Mbps HSDPA and up to 5.76 Mbps HSUPA.

Motorola and Freescale Extend 2G/3G Supply Deal to 2009

Motorola has extended its strategic relationship with Freescale Semiconductor as a preferred supplier of 2G and 3G chipset platforms through 2009. Under the supply agreement, Freescale plans to deliver baseband, power management, RF transceivers and power amplifier technologies for incorporation across multiple Motorola handset designs. Additionally, Motorola expects Freescale to deliver several new chipset solutions for next-generation EDGE, 3G and multimedia handsets.

Broadcom Posts Q4 Revenue of $924 Million

Broadcom reported Q4 2006 revenue of $923.5 million, an increase of 2.3% from the $902.6 million reported for the third quarter of 2006 and an increase of 12.5% from the $820.6 million reported for the fourth quarter of 2005. Net income (GAAP) for Q4 was $45.1 million, or $.08 per share (diluted), compared with GAAP net income of $110.2 million, or $.19 per share (diluted), for Q3 2006, and GAAP net income of $186.7 million, or $.32 per share (diluted), for Q4 2005.

"The year 2006 exemplified the ever-changing nature of the semiconductor industry, as strength in the first half of the year was followed by a slowdown in the second. However, on the whole, 2006 turned out to be a very good year for Broadcom as we increased our revenue by 37% and increased our cash and marketable securities by more than $900 million," said Scott A. McGregor, Broadcom's President and Chief Executive Officer.

Cisco Teams with SES Americom on IP-Prime for Rural Telcos

Cisco and SES AMERICOM announced a marketing and systems integration agreement that combines Cisco expertise and solutions with SES AMERICOM's "IP-PRIME" IPTV outsourced service for rural telcos.

The companies said the fully-managed SES IP-PRIME solution combined with the Cisco IP NGN architecture creates a complete end-to-end IPTV service with encoding, encapsulation, third-party middleware, scrambling/descrambling, satellite receivers, conditional access, set-top boxes, service management and integration services. More than 30 television programmers and networks representing more than 290 channels have signed IP-PRIME transport agreements to date.

RLECs that select the combined offering also have a choice of IPTV set top boxes, including a full complement of devices from Cisco.

Cisco Updates Mobile Content Services Gateway

Cisco introduced the second generation of its he Content Services Gateway (CSG2) for delivering intelligent service control and enablement at the edge of the mobile internet.

The Cisco CSG2 platform enables mobile content billing, content filtering, service control, traffic analysis, and data mining for mobile network operators. Deployed on a Cisco 7600 line card, the Cisco CSG2 system can simultaneously manage several hundreds of thousands of active mobile users, process more than a million concurrent sessions per second, and manage several gigabits per second of bandwidth.

The Cisco CSG2 system provides two major new functions that providers need to manage and monetize mobile content services:

  • Dynamic mobile content examination and access control - which enables mobile service providers to meet the needs of customers for parental control, satisfy corporate usage policies, and comply with social and regulatory requirements; and

  • Flexible, application-aware billing - which enables providers to offer differentiated charges for services by volume, duration, byte, event and other parameters.

Cisco said the new CSG2 platform can be used to apply advanced processing of IP flows through dynamic application-layer content examination, subscriber service access control, subscriber account balance enforcement, and content filtering.

The Cisco CSG2 platform will be available starting in March 2007 at a list price ranging from $55,000 to $245,000 USD depending on the level of functionality needed.

Cisco Develops Mobile Transport over Pseudowires

Cisco introduced a Mobile Transport over Pseudowires (MToP) solution that runs circuit-emulation-over-packet shared port adapters (SPAs) on Cisco 7600 Series Routers. The MToP solution is positioned as an alternative to dedicated TDM or ATM circuits in RAN backhaul operations. Two models of circuit-emulation SPAs are available: the one-port channel OC-3/STM-1 and the 24-port T1/E1/J1. This solution ensures scalable support for 2G, 3G and 4G services and applications.

Cisco said that by using circuit emulation to carry TDM traffic directly over converged IP/MPLS and Ethernet networks, mobile operators can achieve the cost savings and flexibility of Ethernet while preserving the critical clocking signal required for seamless handoffs as users move between aggregation sites. Wataniya Telecom of Kuwait is using the solution.

Mike Volpi Steps Down as GM of Cisco's Routing and Service Provider

Mike Volpi has resigned his position as senior vice president and general manager of Cisco's Routing and Service Provider Technology group. The company said he is leaving to pursue other career opportunities.

Following the announcement, Cisco announced several executive appointments and some organizational changes. Senior vice presidents Tony Bates and Pankaj Patel will take over management of the renamed Service Provider Technology group, while several other related operations will now report directly to Charlie Giancarlo, the company's Chief Development Officer. Bates and Patel are both 10-year veterans of Cisco's service provider business.

Bates led development of the most ambitious engineering effort in company history, the Carrier Routing System, or CRS-1. Patel most recently directed company operations that develop technologies for service providers and large corporate networks, particularly for high-speed broadband connections. In other roles he helped guide development of voice and telephone capabilities for IP infrastructure, crucial technology that has now made IP networks the primary method for most digital communications.

Qwest Adds 165,000 DSL Users in Q4

Qwest reported revenue of $3.5 billion for the fourth quarter and $13.9 billion for the year. Reported earnings were $593 million, or $0.30 per diluted share compared with a loss of $779 million, or ($0.42) per share in 2005. Some highlights of the quarterly report:

  • High-speed Internet, data, wireless and long distance services contributed more than 55 percent of revenue in the fourth quarter of 2006 and revenue increased 8 percent over the prior year quarter.

  • Mass market revenues in the quarter grew 1.5 percent compared to the year ago quarter, even with $8 million in nonrecurring revenue reduction associated with settlement-related customer credits in New Mexico and Oregon, as well as the impact of further reductions in universal service rates.

  • Wholesale revenues held flat as growth in data revenue essentially offset continued and anticipated pressures in long distance and the local market.

  • CAPEX in Q4 totaled $406 million, compared to $503 million in the year-ago quarter.

  • Qwest added 259,000 high-speed Internet, video and wireless subscribers in the quarter, driving an increase in net connections of 116,000, with over 300,000 additions to net connections for the year.

  • At the end of 2006, Qwest had a total of 13.8 million domestic access lines, down 6.4 percent from the end of 2005.

  • Qwest increased high-speed Internet subscribers by 165,000 in the fourth quarter compared to an increase of 140,000 in the fourth quarter 2005. For the full year 2006, Qwest added 658,000 subscribers -- a 44 percent increase over 2005 and its best ever annual gain -- for a total of 2.14 million subscribers.

  • Qwest added 78,000 net DIRECTV subscribers in the quarter for a total of 366,000 subscribers.

Tuesday, February 6, 2007

Nevis Networks Extends NAC with ASIC-drive LAN Security

Nevis Networks, a start-up offering enterprise LAN security switches and appliances, demonstrated how its LAN security switching technology supports all three elements of Microsoft Network Access Protection (NAP) security framework, which includes the 802.1x standard, Dynamic Host Configuration Protocol (DHCP) and IPsec technologies.

The Nevis LAN security platforms use a multi-core ASIC to provide deep security inspection of each packet at full LAN speeds. The company offers an enterprise Ethernet switch with 48 10/100/1000 Mbps ports and 10 Gbps of security processing power. To complement existing Ethernet switch deployments, the company also offers a LAN appliance with the same "bump in the wire" deep packet inspection security.

Nevis uses Microsoft's NAP to continuously enforce pre- and post-connect network access control for individual users accessing LAN and data center resources from wired, wireless, remote and branch locations. NAP is a policy enforcement technology built into the operating systems of Windows Vista and the upcoming "Longhorn" Windows Server. The Nevis "LANenforcer" LAN security switch and appliance auto-sense NAP clients and act as a network enforcement point within the NAP framework. The LANenforcer systems also auto-sense non-NAP and non-Windows endpoints to provide additional pre-connect authentication checks. This enables heterogeneous networks with some NAP deployments.

Nevis said that by supporting all three NAP technologies (802.1x, DHCP and IPsec), its customers have the flexibility to select the underlying technology most appropriate for their specific network infrastructure security needs.