Thursday, October 23, 2008

Italtel Appoints Umberto de Julio as its new CEO

The Italtel Group, which specializes in next generation multiservice integrated network systems, has appointed Umberto de Julio as its new Chief Executive Officer. Mr. de Julio is a veteran of the telecom industry.

Since June 2000, he has been partner of Pino Partecipazioni, a venture capital company. From July 1999 to April 2000, he was Head of Strategies in Telecom Italia Spa and from 1998 to 1999 he covered the role of Chief Executive Officer in Telecom Italia Mobile (TIM). Previously he held the roles of General Manager at TIM, General Manager at Telecom Italia and Co-General Manager at STET.

Mr de Julio started his career in the research field at Fondazione Ugo Bordoni. Afterwards he joined SIP, where he was first responsible for various development projects on new technologies and services, and then, from 1986 to 1994, Head of Network.

He is member of many international standardization bodies and he was Board of Directors member in many important companies, such as Telecom Italia, TIM, CSELT, Finsiel, SSGRR, Fintech, Italtel, Telespazio Saritel and Telit, as well as President of AEI (Italian Electronics and Electrotechnics Association) and of ‘Quadrato della Radio' Association.

At the moment, he is Vice President of ANFOV, a member of the Board of Directors in Sielte, Tiscali, UnTecnico, as well as in other companies backed by Kiwi funds.

Cisco TelePresence Adds Support for NTT's User Network Interface

Cisco has added support for NTT's user network interface (UNI) to Cisco IOS Software , enabling Cisco routers and switches to connect directly to NTT's UNI. The Cisco TelePresence system can now be added to commercial NGN services offered by NTT East and NTT West.

The companies said business communications can more easily take place between companies using the same NTT service, while Cisco TelePresence use can be tracked via metered billing.

Cisco TelePresence can be used as a guaranteed bandwidth application service called "Hikari Telephone Office Type" that can be subscribed to by users of "Flets Hikari Next Business Type," for which NTT East and NTT West are scheduled to begin service in October 2008.

Microsoft Joins Working Group for Open Standards Messaging Software

Microsoft is joining the Advanced Message Queuing Protocol (AMQP) Working Group, an organization focused on the development of the AMQP specification. Microsoft said it is joining the group in order to support the development of an open industry standard for ubiquitous messaging.

AMQP is a specification for platform-neutral, open standards-based business messaging. The primary goal of AMQP is to enable the communications necessary for business processes. AMQP Working Group members are collaborating on specifications for messaging infrastructure that provide businesses with a simple and more powerful way of connecting messaging-dependent applications both within and between firms.

Other members of the AMQP Working Group include Cisco, Credit Suisse, Deutsche Boerse Systems, Envoy Technologies Inc., The Goldman Sachs Group, iMatix, IONA Technologies, J.P. Morgan, Novell, Rabbit Technologies Ltd., Red Hat Inc., TWIST Process Innovations Ltd., WSO2 and 29West Inc.

Sprint appoints Former Ericsson Exec to its Board

Sprint announced the appointment of Sven-Christer Nilsson to its Board of Directors. Prior to his current advisory business, Nilsson, 64, worked with Ericsson from 1982 through 1999, including serving as president, Ericsson Radio Systems (Sweden), as vice president, Mobile Switching Systems, as executive vice president and general manager, Cellular Systems-American Standards, and as president and chief executive officer. Nilsson also serves as a director of ASSA Abloy AB, Tilgin AB, and CEVA Inc. In addition, Nilsson is Chairman of the Boards of Directors of Swedish ICT Research AB and of the (Swedish) Public Service Broadcasting Foundation. He also is a member of The Royal Swedish Academy of Engineering Sciences.

Verizon Urges FCC Action on Intercarrier Compensation

Verizon Communications is calling on the Federal Communications Commission (FCC) to adopt intercarrier compensation and universal-service reform this year. Verizon said the current "arcane system," which pays carriers for the exchange of traffic, is "an obstacle to the development and use of broadband and IP services." said in a speech prepared for delivery Saturday (Oct. 25).

"While this transition from the policies of the circuit-switched world is tough, we will all be better off when it is finished," Tauke said in his prepared remarks. "The longer policymakers and the industry try to sustain the old world, the more likely that the inevitable crash between old-world policies and new-world technology will wreak havoc on telecom carriers and their customers," said Tom Tauke, Verizon executive vice president of public affairs, policy and communications, speaking at the European Telecommunications Network Operators' Association conference in Venice, Italy.

Tauke urged the FCC to "forge ahead and get this across the finish line" this year. "There's a lot of work to do in a short time," he said. "But all the piece parts are there in the FCC's record to develop a viable plan."

Wednesday, October 22, 2008

Arista Names Jayshree Ullal as CEO, Andreas Bechtolsheim as Chairman

Arista Networks (formerly known as Arastra), a start-up based in Menlo Park, California, announced the appointment of Jayshree Ullal as President and Chief Executive Officer, and Andreas Bechtolsheim as Chief Development Officer and Chairman.

Jayshree Ullal was previously Senior Vice President of Cisco Systems, responsible for the company's Datacenter, Switching and Services Group.

Andreas Bechtolsheim, a well-known Silicon Valley entrepreneur, was a Co-Founder of Sun Microsystems and a Senior Vice President and Chief Architect for the Systems Group at Sun. From 1996 to 2003, Andy was Vice President and General Manager of the Gigabit Systems Business Unit at Cisco Systems.

Arista Networks is developing highly-scalable 10 Gigabit Ethernet switches for large data center and computing environments. Arista says cloud computing requires fundamental improvements in network scalability, reliability, and latency beyond what traditional enterprise networks have offered.

The company's Extensible Operating System (EOS) software architecture is designed for cloud computing applications and features self-healing and live in-service upgrade capabilities. Arista has been shipping a portfolio of 10 Gigabit Ethernet products since May 2008 to customers in several vertical markets, including financial markets, high-performance computing, public sector, manufacturing, Internet data centers, healthcare, and media/entertainment.

"In the upcoming era of cloud computing, the web will be much more than just a means of delivering content -- it will be a platform in its own right, requiring an extremely scalable cloud networking infrastructure," said Jayshree Ullal, President and CEO of Arista. "A similar transformation is happening in the enterprise where many customers are consolidating existing datacenters into much larger virtualized computing clouds. We look forward to working with customers of all sizes to solve these important networking challenges."

The product line include the Arista 7148S, a 1-rack-unit L2/L3/L4 48-port 10GbE SFP switch with 800 Gbps of bandwidth; the Aristra 7124S 24-port 10GbE switch with 480 Gbps of bandwidth, and the Aristra 7148SX 48-port 10GbE switch with 960Gbps of bandwidth.

Ixia's Q3 Revenue Rises to $47.3M, Notes Lehman Impairment Charge

Ixia reported $47.3 million, which compares to $45.9 million in the immediately preceding second quarter of 2008 and $44.0 million in the third quarter of 2007. For the third quarter of 2008, Ixia reported net income on a GAAP basis of $483,000, or $0.01 per diluted share, compared to net income of $1.9 million, or $0.03 per diluted share, for the third quarter of 2007. Net income for the third quarter of 2008 reflects an impairment charge of approximately $4.3 million related to bonds ($5.0 million face value) issued by Lehman Brothers Holdings.

"Despite a challenging economic environment, we displayed positive momentum on several fronts and delivered good operating results during the quarter," said Atul Bhatnagar, Ixia's president and chief executive officer. "Our service provider and government businesses helped propel revenue growth, while strong software sales and expense control drove our non-GAAP operating margins for the quarter to just over 15%.

Juniper Reports Q3 Revenue of $947.0 million, up 29% YoY

Juniper Networks reported solid revenues, expanding margins, and improved profitability. Net revenues for the third quarter of 2008 rose 29% on a year-over-year basis to $947.0 million. The company posted GAAP net income of $148.5 million, or $0.27 per diluted share, and non-GAAP net income of $175.6 million, or $0.32 per diluted share. The non-GAAP EPS figure represents an increase of 45 percent from the $0.22 per diluted share reported for the third quarter of 2007. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Revenues by Reportable Segment table below.

"Juniper delivered a solid quarter during a period of global economic uncertainty," stated Kevin Johnson, chief executive officer of Juniper Networks. "We continue to enhance our product portfolio, expand our reach to customers, and improve operational execution. These factors have enabled us to drive revenue growth and improve operating margins. The long-term growth potential of the high-performance networking market is strong and, even in this uncertain economic climate, we are cautiously optimistic about our near-term opportunities."

NETGEAR's Q3 Revenue Drops 12% from Q2

NETGEAR reported Q3 net revenue of $179.4 million, a 6% decrease as compared to $191.7 million for the third quarter ended September 30, 2007, and a 12% decrease as compared to $204.5 million in the second quarter ended June 29, 2008. Net income for Q3 2008 (GAAP) was $3.1 million, or $0.09 per diluted share. This compared to net income of $13.3 million for the third quarter of 2007 and to net income of $11.1 million in the second quarter of 2008. Diluted earnings per share (GAAP) was $0.37 for the third quarter of 2007 and $0.31 for the second quarter of 2008.

Gross margin on a non-GAAP basis in the third quarter of 2008 was 35.5%, as compared to 34.0% in the year ago comparable quarter, and 33.2% in the second quarter of 2008.

"The September quarter showed weakness in demand for our consumer products across both retail and service provider channels in all geographies, resulting in a quarter-over-quarter and year-over-year decline in consumer product shipments. We believe the weakness in the global economy and tight credit markets worldwide are causing softness in end-user demand. As a result of the current environment, we expect subdued spending conditions to persist over the next few quarters until consumer confidence returns to the market. SMB (small and medium-sized business) demand is holding well with continuous momentum. The impact of current economic conditions on our operating margin was offset by continued successful product and operating cost reductions, healthy sales of ReadyNAS and Smart Switches and the reduction in air freight cost requirements as a result of increased on hand and available inventory. In the third quarter, our service provider net revenue was approximately $31.4 million, about 18% of our total net revenue, as compared to 22% in the year ago quarter, and 27% in the second quarter of 2008," commented Patrick Lo, Chairman and Chief Executive Officer of NETGEAR.

Ikanos Reports Q3 Revenue of $24.2 million

Ikanos Communications reported Q3 2008 revenue of $24.2 million compared with revenue of $29.9 million for the second quarter of 2008 and revenue of $27.3 million for the year ago period. GAAP net loss for the third quarter of 2008 was $26.7 million, or $0.93 per share, on 28.6 million weighted average shares. This compares with a net loss of $4.0 million, or $0.14 per share, on 29.3 million weighted average shares in the second quarter of 2008 and with a net loss of $13.0 million, or $0.45 per share, on 28.7 million weighted average shares in the third quarter of 2007.

"Our third quarter results represent continued deployments of our VDSL2 and residential gateway products used by service providers worldwide. These deployments underscore the desire for higher levels of bandwidth to support new revenue-generating services like high-definition IPTV," said Michael Gulett, Ikanos' president and CEO. "Since the Board appointed me to the CEO role three months ago, I have refined Ikanos' priorities, realigned our resources to better serve our customers, and have begun to improve the way we define our new products to address broader markets. These changes will help us build upon our leadership position in designing and developing products that enable advanced broadband services in the digital home."

In addition, Ikanos announced that it has retained the investment banking firm Barclays Capital as its financial advisor to assist it in exploring and evaluating strategic alternatives to maximize shareholder value.

Level 3 Reports Q3 Revenue of $1.07 billion

Level 3 Communications reported consolidated revenue was $1.07 billion for the third quarter 2008, compared to $1.06 billion for the third quarter 2007. Second quarter 2008 consolidated revenue was $1.09 billion. Total Communications revenue for the third quarter 2008 was $1.05 billion, compared to $1.04 billion in the third quarter 2007 and $1.07 billion in the second quarter 2008. The net loss for the third quarter 2008 was $120 million, or $0.08 per share, compared to a net loss of $174 million, or $0.11 per share for the third quarter 2007.

Core Communications Services revenue, which includes Core Network Services and Wholesale Voice Services, was $964 million in the third quarter 2008, a 6 percent increase over $909 million in the third quarter 2007, or $899 million on a Normalized Basis. Core Communications Services revenue was $972 million in the second quarter 2008, or $954 million on a Normalized Basis.

Core Network Services revenue was $791 million in the third quarter 2008, compared to $756 million in the third quarter 2007 and $797 million in the second quarter 2008, or $746 million and $779 million on a Normalized Basis for the third quarter 2007 and the second quarter 2008, respectively.

Wholesale Voice Services revenue in the third quarter 2008 was $173 million compared to $153 million in the third quarter 2007 and $175 million in the second quarter 2008.

"Our operating results for the quarter show the continuing margin expansion and growth in Consolidated Adjusted EBITDA," said James Crowe, president and CEO of Level 3. "Our year over year improvements were achieved through Core Communications Services revenue growth and our continued disciplined approach to cost management. And despite the current economic environment, we believe that our extensive fiber based network and full suite of services position us well to attract additional market share."

Alcatel-Lucent Releases "Zero Touch" Photonic Service Switch

Alcatel-Lucent announced the worldwide commercial availability of its 1830 Photonic Service Switch (PSS), a metro WDM platform offering a "Zero Touch Photonics" value proposition. Alcatel-Lucent said its Zero Touch Photonics eliminates the need for frequent on-site interventions and provides a WDM network that is more flexible to design and install, easier to operate, manage and monitor, where wavelength services can be deployed faster and reconfigured according to more dynamic traffic demands.

The Alcatel-Lucent 1830 PSS features a fully tunable and reconfigurable (T&ROADM) architecture for wavelength switching, and integrates optical monitoring capabilities for end-to-end photonic traffic monitoring and fault localization at the wavelength level. Key features include:

  • High-density multiplexer/demultiplexer (mux/demux) per network element (NE)/degree

  • Wavelength Tracker monitors and traces each wavelength at any point in the network

  • Static, tunable/reconfigurable optical add/ drop multiplexer (T/ROADM) with single-wavelength add/drop granularity

  • Up to 44 wavelengths 100 GHz ITU WDM per fiber pair

  • Support for the full range of network topologies, including ring, point-to-point and arbitrary optical mesh topologies.

According to the business case developed by Alcatel-Lucent Bell Labs, a network built with the new concept of the 1830 PSS can expect to see a more positive return than one built with a fixed optical add-drop multiplexer. A baseline case of expected traffic growth yields a 94% improvement in net present value (NPV) of investment. Scenarios built using more optimistic and pessimistic traffic growth levels delivered similar results, according to the company.

"For service providers, controlling capital budget, network performance and operating expenses are just as important as building their revenue stream," said Romano Valussi, President of Alcatel-Lucent's Optics activities. "Based on Zero Touch Photonics, the Alcatel-Lucent 1830 PSS accelerates time to service, simplifies operations, and improves performance for better total cost of ownership."
  • In 2007, Alcatel-Lucent acquired Canadian-based Tropic Networks, a developer of metro optical transport systems, for an undisclosed sum. This transaction builds upon the collaboration the two companies established in July 2004 with the Alcatel-Lucent investment and global supply agreement. Tropic Networks features a "Wavelength Tracker" technology that tags each wavelength in the DWDM layer with a unique signature that tracks, monitors and reports faults -- without requiring any additional DWDM transponders. This capability even distinguishing between multiple instances of the same color traveling through the network. Tropic said its Wavelength Tracker allows carriers to expand their optical services without adding unnecessary cost, yet still maintaining critical management capabilities. Tropic supports an IP-over-DWDM capability that allows third party transponders to be launched directly from the switch/router into the DWDM layer together with associated optical management and power control. A major cable operator has been using this IP over DWDM solution in their network for several years.

Verizon Wireless Offers Private Network Static IP

Verizon Wireless is now offering Static IP addressing option for enterprise customers. The new Private Network Static IP feature lets customers communicate more securely and consistently with their wireless devices by using a combination of Private IP addressing and dedicated connectivity. By using Static IP on the Verizon Wireless Private Network, enterprise customers can request data on demand from a specific device such as a wireless router whenever and wherever needed.

The Verizon Wireless Private Network with Static IP for mobile devices can be set up for a one-time fee of $500.00 and is compatible with Verizon Wireless PC cards, wireless routers, embedded laptops or mobile Internet devices, including smartphone

Vonage Gains Internet Telephony Patent

Vonage was recently granted a U.S. patent called "Method and Apparatus for Enhanced Internet Telephony." The invention, which was filed for patent in 2003, makes it less likely for customers to encounter dropped calls, incomplete attempted calls or other communication problems resulting from typical router function and behavior. Specifically, the patent -- No. 7,417,981 -- pertains to improvements in Internet telephony where Network Address Translation (NAT) is required. The patent addresses the issue of a router losing an outbound port during an Internet telephone connection. To avoid the router timing out and closing the outbound port, the patent causes the media terminal adapter to send an outbound message to the Internet telephony regional data center.

AT&T Completes IP/MPLS Network over 40 Gbps Optical Backbone

AT&T has completed the transition of IP traffic to its next-generation, consolidated IP/MPLS backbone network. AT&T describes its new full-mesh optical platform as the world's largest deployment to date of 40 Gbps transport. The company's entire U.S. ultra-long haul network -- more than 80,000 fiber-optic wavelength miles -- now uses this 40-gigabit network technology, known as OC-768. AT&T began turning up 40-gigabit service in volume in its network in the second half of 2006 after completing multiple field trials.

The AT&T IP/MPLS backbone network serves as the foundation for all AT&T Internet and IP services, carrying traffic ranging from consumer broadband to wireless data to mission-critical enterprise applications such as unified communications, on-demand content services and utility computing. The network also carries substantial Internet traffic from around the world.

In addition, AT&T Labs researchers and industry partners announced a breakthrough test using emerging 100-gigabit technologies to carry data totaling 17 terabits per second (Tbps) over a single strand of optical fiber. Specifically, AT&T researchers, working with NEC Corporation of America and Corning Incorporated, recently completed a successful test of such technologies that demonstrated data transmission at 114 Gbps over each of 161 separate wavelength channels on a single optical fiber, transporting a total capacity of 17 Tbps over 622 kilometers. This new record for backbone transport used fiber and optical amplifiers that are compatible with those used today.

AT&T noted that in recent years, IP traffic on its backbone has grown about 60 percent year over year. By 2018, IP traffic on the AT&T network is projected to be a staggering 5,600 percent greater than what it is today. AT&T currently carries about 16 petabytes of total IP and data traffic on an average business day, the equivalent of a 2.5-megabyte music download for every man, woman and child on the planet.

Sierra Wireless Develops 21 Mbps HSPA+ Modems for Telstra's "Next G"

In collaboration with Telstra, Qualcomm, and Ericsson, Sierra Wireless is developing the first wireless data devices for the HSPA+ standard, which offer peak download speeds of 21 Mbps over Telstra's "Next G" network -- three times faster than currently available HSPA modems. Shipments for customer trials are expected to begin in coming months, with a commercial launch to follow.

HSPA+ is also known as HSPA Evolution or Evolved HSPA (eHSPA). In addition to significantly increasing data speeds, the standard reduces latency, boosts network capacity, and provides an enhanced user experience.

Telstra recently confirmed it is on track to begin rolling out the new technology to the Next G wireless network by the end of this year.

Tuesday, October 21, 2008

Qwest Wins Veterans Affairs (VA) VPN Contract

Qwest Communications was awarded a $60 million contract by the U.S. Department of Veterans Affairs (VA) to serve as its contractor for the delivery of voice and data services connecting the VA's headquarters in Washington, D.C., and nearly 1,300 hospitals, regional offices and other facilities across the nation. Qwest will deliver the services under the federal Networx Universal contract, which is part of Networx, the largest government communications procurement program in the world.
Also, the VA is permitted to order additional voice and data services from Qwest that could increase the value of the 10-year agreement.

AT&T Reports Gains with iPhones, Wireless Data, U-verse

AT&T reported solid financial results for Q3 driven by strong wireless gains and stable trends in business services, including continued double-digit IP data growth and a major turnaround in wholesale revenue growth. The performance was led by the Apple iPhone 3G -- which was launched on July 11 -- with a total of 2.4 million activations in the quarter, approximately 40 percent of them to new wireless AT&T customers. AT&T's earnings rose 5.5 percent, but missed analyst estimates due to subsidies for the 2.4 million iPhones.

AT&T's consolidated revenues totaled $31.3 billion, up 4.0 percent versus reported results in the year-earlier quarter and up 3.3 percent compared with third-quarter 2007 pro forma revenues, which exclude merger-related accounting impacts on directory revenues.

Consolidated revenue growth was driven by 15.4 percent growth in wireless revenues and a 16.2 percent increase in wireline IP data revenues, which includes AT&T U-verse services and business offerings such as VPNs, managed Internet services and hosting. Gains in these areas more than offset pressures in the macro-environment and a decline in wireline consumer voice, which was consistent with trends in recent quarters.

Compared with results for the year-earlier quarter, AT&T's reported operating expenses for the third quarter of 2008 were $25.7 billion versus $24.8 billion; reported operating income was $5.6 billion, up from $5.3 billion; and AT&T's reported operating income margin was 17.9 percent, up from 17.6 percent.

Some additional highlights:


  • AT&T posted the largest postpaid net subscriber gain for any quarter in its history. Retail postpaid net subscriber additions of 1.7 million were up nearly 40 percent versus results in the year-earlier third quarter and accounted for more than 85 percent of AT&T's 2.0 million total wireless net adds. Total monthly subscriber churn in the third quarter was 1.7 percent, flat with results for the year-earlier quarter, and postpaid churn was 1.2 percent, down from 1.3 percent in the third quarter of 2007.

  • 2.4 Million Apple iPhone 3G Activations. Postpaid subscriber growth was boosted by the dramatic market success of the iPhone 3G. Third-quarter activations of the iPhone 3G totaled 2.4 million, approximately 40 percent to customers who were new to AT&T.

  • 50.5 Percent Wireless Data Revenue Growth. AT&T's wireless data revenues grew 50.5 percent versus the year-earlier quarter to $2.7 billion, reflecting strong increases in areas such as Internet access, messaging, e-mail and related services. Wireless Internet access revenues more than doubled versus results for the year-earlier quarter, and multimedia message volumes were also more than double third-quarter 2007 levels.

  • 15.4 Percent Total Wireless Revenue Growth. Driven by subscriber gains and data growth, AT&T's total wireless revenues increased 15.4 percent to $12.6 billion, and wireless service revenues, which exclude handset and accessory sales, grew 14.3 percent to $11.3 billion. Retail postpaid subscriber ARPU was $58.99, up 2.6 percent versus the year-earlier third quarter.

  • Wireless Margins. On a reported basis, third-quarter wireless operating expenses totaled $10.2 billion, operating income was $2.4 billion and AT&T's wireless operating income margin was 18.9 percent versus 18.0 percent in the year-earlier third quarter. On an adjusted basis, third-quarter wireless operating expenses totaled $9.7 billion, operating income was $2.9 billion and AT&T's wireless operating income margin was 22.8 percent versus 26.4 percent in the year-earlier third quarter.

Wireline Operational

  • AT&T's total business revenues -- comprised of enterprise, regional and wholesale customer categories -- grew 0.3 percent versus the year-earlier quarter to $11.5 billion. In the third quarter, AT&T delivered a return to growth in wholesale revenues, extending a major turnaround of trends in this category over the past year.

  • Wholesale revenues totaled $3.5 billion, up 0.8 percent sequentially and 0.7 percent versus the year-earlier quarter. Regional business revenues increased 0.7 percent sequentially and 2.3 percent versus the year-earlier quarter to $3.2 billion.

  • Regional business data revenues grew 8.4 percent year over year, led by Ethernet and IP data services, including managed Internet and VPNs. IP data and Ethernet, which made up 53.6 percent of AT&T's regional business data revenues, grew 18.9 percent versus the year-earlier third quarter.

  • Enterprise revenues totaled $4.7 billion, up 0.8 percent sequentially and down 1.4 percent versus the year-earlier quarter, reflecting solid sales results with some pressures on voice and data transport volumes. Enterprise fundamentals in terms of closed sales, a strong sales funnel and new service adoption remain solid.

  • AT&T U-verse TV Services. experienced a net gain of 232,000 subscribers in the third quarter, up from 170,000 added in the second quarter of this year. At the end of the quarter, subscribers to the company's next-generation, IP-based TV service totaled 781,000, on a trajectory to exceed its target of more than 1 million U-verse TV subscribers by year-end 2008. U-verse network deployment now passes 14 million living units. Rollout of Total Home DVR service is under way and expected to be completed by the end of the year. Attach rates for broadband service continue to be high, at more than 85 percent.

  • 16.2 Percent Growth in Wireline IP Data Revenues. Driven by expansion in AT&T U-verse services and growth in business products such as VPNs, managed Internet services and hosting, AT&T posted its fourth consecutive quarter of strong mid-teens growth in total wireline IP data revenues. Consumer IP data revenues, which include broadband and U-verse services, grew 19.0 percent, and business IP data revenues were up 14.7 percent. IP data now accounts for 44.0 percent of AT&T's total wireline data revenues.

  • Broadband Connection Growth. At the end of the third quarter, AT&T's wireline broadband subscribers totaled 14.8 million, up 148,000 in the quarter and 1.1 million over the past year.

  • Growth in Regional Consumer ARPU. Reflecting growth in wireline broadband and U-verse services, AT&T's revenues per consumer household served increased 4.3 percent versus the year-earlier third quarter. Regional consumer revenue connections (retail voice, high speed Internet and video) totaled 47.5 million at the end of the quarter versus 49.6 million at the end of the third quarter of 2007 and 48.4 million at the end of the second quarter of 2008. Total consumer broadband and TV connections over the past year increased by 1.9 million.

  • Total regional consumer revenues were $5.5 billion, down 3.8 percent. This reflects operational trends and a change in AT&T's relationship with Yahoo!, which provides portal services to AT&T's nearly 15 million wireline broadband subscribers. Under the new arrangement, announced in the second quarter of 2008, AT&T no longer pays monthly portal fees and receives a reduced level of shared advertising revenues from Yahoo!

  • Wireline Expenses. AT&T's reported third-quarter wireline operating expenses totaled $14.8 billion, down 1.1 percent from results in the year-earlier quarter, and on an adjusted basis, wireline operating expenses were $14.4 billion versus $14.4 billion in the third quarter of 2007. In addition to operational trends and progress on cost initiatives, third-quarter wireline cost trends also include expenses of approximately $90 million related to hurricanes.

Verizon Business Expands Carrier Ethernet with 10 GigE

Verizon Business is expanding its Carrier Ethernet service portfolio with a standardized 10 GigE offering for its Metro Ethernet service in the U.S. Previously, 10 GigE speed -- the fastest commercially available -- had been available from Verizon Business only on a customized basis.

The company now offers 10 GigE for Ethernet LAN Service (E-LAN) and Ethernet Virtual Private Line (EVPL) to customers in Verizon's sprawling U.S. footprint in 100 metro markets, building on the company's existing 10 GigE-capable Ethernet Private Line and optical offerings.

Verizon Business said that by standardizing 10 GigE as a service offering, U.S.-based companies with multiple locations and distributed data centers more quickly and easily consolidate their network infrastructure, virtualize their IT environment and efficiently transmit bandwidth-intensive applications such as high-definition video conferencing and medical imaging.

"10 GigE hits the sweet spot for companies wanting to make the most of their IP networking capabilities for advanced applications that can be true bandwidth hogs," said Nancy Gofus, senior vice president of global business products for Verizon. "Now, these on-demand applications can work harder and smarter across multiple locations across town, featuring the classes of service, service level agreements and security associated with Verizon Business' global Ethernet portfolio."

Verizon's portfolio of Ethernet services features:

  • Metro Ethernet Services (E-LAN and EVPL) -- available within 100 metro markets in the U.S.

  • Virtual Private LAN Service (VPLS) -- available virtually anywhere in the U.S.

  • Ethernet Private Line (EPL) -- available within 145 U.S. metro markets and in many locations in 21 European countries.

  • Ethernet Virtual Private Line (EVPL) -- available virtually anywhere in the U.S. and in many locations in six Asia-Pacific countries and territories, as well as between the U.S and six Asia-Pacific regions, and between the U.S. and 10 European countries.

  • Ethernet Access for Private IP and the public Internet -- available virtually anywhere in the U.S, within 20 European countries, 13 countries in Asia-Pacific and four countries in Latin America and Canada.

Telefonica and Boingo Sign Wi-Fi Access Deal

Boingo Wireless and Telefónica announced a Wi-Fi roaming agreement. The deal gives Boingo members access to nearly 2,600 incremental hotspots in Spain and elsewhere. Additionally, Telefónica customers will be able to login to 7,000 Boingo hotspots throughout the world, including more than 20 of the top airports in North America.

Telefónica operates the largest roaming network in Spain with close to 2,200 hotspots. Telefónica Spain is the first affiliate within the Telefónica Group to launch with Boingo, and is now available for Boingo customers. Telefónica Argentina with 400 hotspots, will join the Boingo Roaming Network in the very near future.