Monday, May 4, 2009

Accanto Systems Introduces Customer Service Assurance Solution

Accanto Systems (formerly Sunrise Telecom Protocol Products Group) has developed a new intelligent Customer Service Assurance (iCSA) solution for managing wireless and wireline networks by providing a customer-centric view of services.

Accanto correlates massive amounts of information collected from the network, services, subscribers and devices themselves into an Oracle database. The system serves as a unified tool to effectively monitor, and proactively solve problems specific customers are experiencing with the quality or usage of services. Accanto iCSA also links easily with Customer Relationship Management systems, resulting in faster troubleshooting and resolution of complicated issues.

iCSA is composed of Accanto's high performance probe/protocol analyzer products (NeTracker, 3GMaster and MSA-QX), its Traffic Analysis and Monitoring System (TAMS), as well as newly developed "X-Ray" application modules, which are based on Oracle business intelligence. Accanto iCSA is also highly customizable, and integrates easily into the service provider's existing operations systems, thanks to consulting expertise from its newly merged group of OSS consultants (formerly LTE Innovations).

Accanto Systems also announced that its Traffic Analysis and Monitoring System (TAMS) was selected by Jamaica-based Digicel as an integrated network monitoring and troubleshooting solution for its growing pan-Caribbean and Central America mobile network. The system will utilize Accanto's Mobile X-Ray Customer Service Assurance platform to optimize efficiency and service quality of mobile data services.

CopperGate Supplies HomePNA Chipsets to Actiontec

CopperGate Communications' HomePNA chipsets have been selected by Actiontec Electronics for its newest product, the HomePNA Ethernet-to-Coax Network Adapter. The adapter connects standard Ethernet and coax cabling. It is suited for large rich media files like HDTV, video on demand, movies, music, and photos.

The companies noted that HomePNA technology has been selected by more than 40 service providers, including four out of the top five North American telcos deploying IPTV.

Sprint to Launch BlackBerry FMC Service

Sprint is preparing to launch a BlackBerry Mobile Voice System (MVS) service that ties together a converged desk phone and mobile device experience on BlackBerry smartphones to help mobile workers be accessible from virtually anywhere for improved productivity, enhanced collaboration with co-workers, and backend management and IT controls. Mobile workers can streamline their communications with one corporate phone number that simultaneously rings up to four devices, one caller ID and a consolidated voice mailbox. BlackBerry smartphone users can access enterprise desk phone functions like transfer, allow and block callers, and seamlessly handoff of calls between BlackBerry smartphones and desk phones using the integrated, intuitive interface on their BlackBerry smartphones.

BlackBerry MVS supports BlackBerry smartphones with BlackBerry Device Software 4.2.1 or higher, including the BlackBerry Curve 8350i smartphone. The BlackBerry Curve 8350i smartphone operates on the Nextel National Network and features national push-to-talk service with sub-second call setup. It is also the first push-to-talk BlackBerry smartphone to offer built-in Wi-Fi support and Group Connect.

Fixed mobile convergence solutions, including BlackBerry MVS, are available through Sprint's newly formed Business Markets Group (BMG).

ADVA Reports Q1 Revenue of EUR 56.9 million, Beating Expectations

ADVA Optical Networking reported Q1 2009 revenues of EUR 56.9 million -- ahead of guidance of between EUR 50 million and EUR 55 million -- up 5% vs. Q1 2008 at EUR 54.0 million and marginally better than the EUR 56.8 million reported in Q4 2008. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR -0.1 million or -0.1% of revenues in Q1 2009, in line with guidance of between -4% and +1% of revenues.

"We are very pleased with our Q1 2009 revenues of EUR 56.9 million, which exceed guidance and are up for the third consecutive quarter. This development is also in contrast to the trend of most of our competitors in the current economic crisis. Further, we managed to improve our pro forma gross margin from 39.1% in Q1 2008 to 43.1% in Q1 2009, mainly resulting from more favorable component procurement terms as well as from variations in regional revenue distribution and in product and customer mix," commented Jaswir Singh, chief financial officer of ADVA Optical Networking.

IP/MPLS Forum to Support MEF Carrier Ethernet Services

The IP/MPLS Forum will develop a new set of MPLS-based specifications and requirements supporting Carrier Ethernet Services as defined by the Metro Ethernet Forum (MEF). Specifically, the Forum's work will support both Carrier Ethernet using Layer 2 VPN services as well as interworking with Provider Bridging Ethernet supporting Q-in-Q and MAC-in-MAC. The forum will closely align their efforts with ongoing work within the IEEE and IETF in these areas to ensure broad operator and vendor support for the final requirement and architecture specifications.

"MPLS has long been defined as a convergence technology which allows service providers to bring together disparate networks and leverage network features for greater economies of scale," said Andrew Malis, Chairman and President of the IP/MPLS Forum. "Through this new effort of the forum, we believe operators will be able to increase their use of Ethernet for both service and transport layers in the network, and economically offer Carrier Ethernet services to their customers."

Additional information including milestones and schedules will be announced by the Forum in the weeks and months ahead.

Sonus Revenue Falls to $41 Million, Down 33% YoY

Sonus Networks reported Q1 revenue of $41.0 million, down 54% compared to revenue from continuing operations of $89.5 million in the fourth quarter of fiscal 2008 and down 33% from $73.6 million for the first quarter of fiscal 2008. The company's net loss on a GAAP basis was $16.2 million, or $0.06 per share, for the first quarter of 2009, compared to a loss from continuing operations of $99.0 million, or $0.37 per share, for the fourth quarter of 2008, and income from continuing operations of $1.0 million, or $0.00 per share, for the first quarter of 2008. The company ended the quarter with cash, cash equivalents, marketable securities and investments totaling $386.1 million.

"The economic environment continues to be challenging," said Richard Nottenburg, president and chief executive officer of Sonus Networks. "We took additional cost and realignment actions during the first quarter and continued to focus our investment dollars on delivering new products and services which enhance the value proposition we bring to customers. The strength of our balance sheet - specifically substantial cash and investments with no debt, gives us confidence we have the resources we need to achieve our plan."

Spreadtrum Gains $44 Million China Bank Loan for Baseband Chipsets

Spreadtrum Communications, a supplier of wireless baseband chipsets for China, announced that its Chinese subsidiary received RMB 300 million (approximately $44 million) of new financing from a Chinese bank in the form of a 3-year fixed term loan.Interest on borrowings will be initially set at 5.4% annually, to be reset annually at the then benchmark applicable rate as set by the People's Bank of China.

"This indicates the Chinese government's strong support and high confidence in Spreadtrum to develop semiconductor products in 2nd and 3rd generation wireless communications in the Chinese market. We plan to use our borrowings under the loan to increase R&D investment in our GSM and TD-SCDMA projects and to expand our IC operations in China," said Dr. Leo Li, president and CEO of Spreadtrum Communications.

Broadcom Begins Hostile Tender for Emulex Shares

One day after the Board of Directors of Emulex rejected its acquisition bid, Broadcom launched a tender offer for all the outstanding shares of common stock of the company.

Broadcom is offering $9.25 net per share in cash (less any applicable withholding taxes and without interest). This represents a total equity value of approximately $764 million. The offer represents a 62-percent premium to Emulex's average closing stock price for the 30 trading days immediately prior to Broadcom's public offer on April 21, 2009; and a 42-percent premium over the median 12-month stock price target published by research analysts as of April 20, 2009.

Scott A. McGregor, President and Chief Executive Officer of Broadcom, said "We are disappointed by Emulex Corporation's rejection of Broadcom's proposal which would deliver substantial, immediate and highly certain value to Emulex's stockholders, while further providing significant benefits to customers and employees alike. The Emulex Board's response on Monday and its continued unwillingness to engage in discussions with Broadcom are clearly not in the best interests of either its stockholders or its customers. This intransigence could cause needless delay in efforts to combine our two companies, leading to further deterioration of Emulex's market share and stockholder value."

"Emulex's Board has taken steps, including the adoption of a 'poison pill' and the imposition of bylaw amendments, to erect barriers to stockholders' ability to express their will as owners of Emulex," continued Mr. McGregor. "While we much prefer to arrive at a negotiated agreement with Emulex, the Emulex Board has left us with no choice but to ask Emulex stockholders to call for a special meeting of stockholders so that they can consider the merits of our offer for themselves."

LSI Unveils its Next Gen Traffic Management for Carrier Ethernet

LSI announced Ethernet Functional Programming Interface (FPI) Release 3.0, its next-generation, traffic management software for carrier-class Ethernet transport. The release offers a new suite of scalable features and functions developed expressly for carrier-class Ethernet networks, including wireless backhaul management tools for service classification, reliability and quality of service.

The new FPI leverages a single interface across the full range of LSI APP multicore processors, enabling OEMs to utilize a single application across a broad system portfolio, reducing up-front R&D investment. The LSI APP platform is comprised of a multicore general-purpose processor and specialized programmable cores which provide packet processing, traffic management and security functions. Specifically, LSI Ethernet FPI 3.0 offersOAM (operations, administration and maintenance) and CFM (connectivity fault management) functions, and contains a programmable toolkit that enables wireless service providers to provision guaranteed service levels, improve network reliability and significantly reduce operating costs. Performance monitoring, link detection and network diagnostics are accelerated on the LSI communications processor. Because the bulk of OAM processing is offloaded from the host, system performance is increased and overall costs are also reduced.

LSI noted that its Ethernet FPI 3.0 also provides support for Internet protocol security (IPsec) encryption, decryption and public key acceleration. Because true and pseudo random number generators are generated by the security engine embedded in the LSI communications processor, security processing occurs without intervention from the host.

The software supports provider backbone bridging and transport applications, along with ITU-T G.8031 and G.8032 compliant automatic Ethernet protection switching. In addition, the FPI is compliant with MEF industry standards 6.1, 10.1 and 14, and IEEE(R) 802.1ag, IEEE 802.3ah and ITU-T Y.1731. LSI has demonstrated IEEE 1588v2 protocol stack integration on its APP3300 platform.

Altair Outlines LTE Product Roadmap

Altair Semiconductor outlined its 3GPP LTE product roadmap, which includes a baseband processor, and complementing MIMO RF transceiver chips designed to support world-wide LTE bands and duplex-modes.

Altair's LTE chipsets are developed using the company's proprietary O2P software-defined 4G processor architecture. This technology is currently deployed in Altair's FourGee(TM)-2150 for mobile WiMAX, and FourGee(TM)-4150, for XGP, both recognized as leaders in their respective markets for high performance and power efficiency.

Altair's LTE product portfolio is comprised of:

  • "FourGee"-3100 - a fully optimized LTE CAT-3 baseband processor that in addition to LTE supports other 4G/OFDM technology variants, including WiMAX and XGP and will be available in Q409. The chip is bundled with a complete LTE protocol stack which includes PHY, MAC, RLC, PDCP, RRC and NAS layers.

  • FourGee-6150 - a MIMO RF transceiver that supports LTE-TDD. This product will be available in mid-2009.

  • FourGee-6200 - a multi-band LTE-FDD MIMO transceiver that supports the most popular LTE bands in North America, Japan and Europe. The chip will be available in Q210.

Sunrise Telecom Debuts Enhanced Cable Modem Network Analyzer

Sunrise Telecom announced the next generation of its CM2000 cable modem network analyzer with simple network management protocol (SNMP) and Telnet testing, integrated file transfer protocol (FTP) and new options for a CAD viewer and signature capture. The tool can be used field personnel to install, service and verify complex triple play networks.

Cox Expands DOCSIS 3.0 in Northern Virginia

Cox Communications has begun offering DOCSIS 3.0-based Ultimate Internet service in Fairfax County and Fredericksburg at up to 50 Mbps downstream and 5 Mbps upstream. The standard price for the residential Ultimate Internet package will be $139.99 per month, with an introductory rate of $109 per month.

The company has already launched DOCSIS 3.0 in Lafayette Parish, La., and plans to offer Ultimate Internet to several Cox markets by the end of 2009, and to more than two-thirds of its footprint in 2010.

Harris Stratex Networks Posts Q1 Revenue of $158 Million, Down 11% YoY

Harris Stratex Networks reported quarterly revenue of $158.0 million, compared with $178.2 million in the year ago period. GAAP net loss was $38.3 million or $0.65 per share, compared with net income of $5.2 million or $0.05 per diluted share in the year ago quarter.

Revenue in the North America segment was $42.2 million, compared with $56.9 million in the year ago period. International revenue was $112.9 million, compared with $117.1 million in the year ago period. Network Operations revenue was $2.9 million compared with $4.2 million in the year ago period.

"In the face of difficult market conditions, our focus on operational improvements, balance sheet metrics, and overall cash management yielded strong results," said Harald Braun, president and chief executive officer of Harris Stratex Networks. "Our cash and short-term investments reached a record $116 million and our operating cash flow was positive for the seventh consecutive quarter."

"During the third quarter we continued global infrastructure build-outs addressing expanded broadband requirements as our network operator customers sought to meet continuing increases in data traffic. In February, we acquired Telsima, a leading developer of next-generation broadband wireless network solutions. We believe this acquisition affords us a strategic advantage with technology, software and a customer base as we pursue future 4G opportunities," added Braun.

Alcatel-Lucent Posts Revenue of EUR 3.6 billion, down 7% YoY

Citing capital constraints especially in North America, Alcatel-Lucent report Q1 2009 revenues of Euro 3.598 billion, down 6.9% year-over-year. At constant currency exchange rates, revenue fell by 11.2% year-over-year and 28.3% sequentially. The was an operating loss of Euro 254 million or 7.1% of revenue. Adjusted gross margin came in at 31.5% of revenue for the quarter, down from 36.2% in the year ago quarter and 33.3% in the fourth quarter 2008.

"As we discussed before, 2009 will be a year of transition. We are reshaping the company and aggressively pursuing our product portfolio rationalization, co-sourcing, working capital management and SG&A reduction programs. While expected, given seasonality and tough market conditions, we are not pleased with the operating loss incurred in the first quarter. Our guidance for the year remains unchanged and we are taking appropriate actions," commented Ben Verwaayen, Alcatel-Lucent's CEO.

Some highlights of the quarterly report:


  • For the first quarter 2009, revenues for the Carrier segment were Euro 2.219 billion, a decrease of 14.0% compared to Euro 2.581 billion in the year-ago quarter and a decrease of 29.1% compared to Euro 3.129 billion in the fourth quarter 2008. At constant currency exchange rates, Carrier revenues decreased 18.3% year-over-year and 30.7% sequentially.

  • Revenues for the IP division were Euro 287 million, an increase of 4.7% from the year ago quarter. Alcatel-Lucent enjoyed another quarter of solid growth in IP/MPLS service routers, with particular strength in EMEA, partly offset by the continuing decline in ATM revenues.

  • Resilience in Optics: Revenues for the Optics division were Euro 657 million, a 2.1% decline from the year ago quarter, with contrasted market dynamics. On the one hand, revenues from long distance DWDM), optical cross connects and wireless transmission declined. On the other, metro aggregation grew at a double-digit rate and submarine optics grew strongly.

  • Wireless impacted by the decline in 2G: Revenues for the Wireless Networks division were Euro 911 million, a decline of 18.0% from the year ago quarter.

  • CDMA revenues declined materially which was driven largely by lower sales in North America, only partially offset by the roll-out of EV-DO in China.

  • GSM also declined significantly, as slower economic growth and in some cases currency devaluations impacted this activity in Asia-Pacific, the Middle East and Africa. W-CDMA revenue increased very strongly, driven by North America and initial roll-outs in China. Finally, the company's LTE solution is getting increased traction in the market place: in addition to its selection as one of the two vendors for Verizon, Alcatel-Lucent was shortlisted in several LTE trials this quarter.

  • Slowdown in access and switching: Revenues for the Wireline networks division were Euro 394 million, a decline of 28.4% from the year ago quarter. This decline was largely driven by legacy ADSL access and core switching, partially offset by the growth in VDSL and home networking (DSL CPE and GPON ONTs).

  • Alcatel-Lucent's IMS solution continued to gain traction and was selected by 4 new customers this quarter, including FT/Orange as part of its planned replacement of H323 technology by a SIP based platform for its VoIP services.


  • For the first quarter 2009, revenues for the Applications software segment were Euro 255 million, an increase of 13.3% compared to Euro 225 million in the year-ago quarter and a decrease of 22.5% compared to Euro 329 million in the fourth quarter 2008.

  • Carrier applications revenue grew at a double-digit rate, which was largely driven by rich communications solutions (IMS applications and messaging) in North America, the successful integration of the Motive portfolio and to a lesser extent payment and subscriber data management in Asia-Pacific, fuelled by wireless subscriber growth and the roll of 3G in China.

  • Genesys, the contact centre software activity, saw a decline in revenues this quarter due to the combination of strong results in the year-ago quarter, when a major contract was landed with a large European operator, and the slow-down in corporate investment.


  • For the first quarter 2009, revenues for the Enterprise segment were Euro 245 million, a decrease of 17.5% compared to Euro 297 million in the year-ago quarter and a decrease of 23.0% compared to Euro 318 million in the fourth quarter 2008.

  • Revenues from Enterprise solutions declined in the low teens this quarter, as constraints in corporate investment impacted the voice telephony market, primarily in the SMB space, while the large enterprise market proved more resilient. Revenues were approximately stable in data networking and grew in security solutions and unified communications.

  • Revenues from Industrial components were the most impacted by the global market conditions and declined at a material rate this quarter.

  • From a geographic standpoint, Europe and Asia Pacific were the weakest, while North America saw a limited decline and Central and Latin America enjoyed slight growth.


  • For the first quarter 2009, revenues for the Services segment were Euro 797 million, an increase of 20.6% compared to Euro 661 million in the year-ago quarter and a decrease of 23.0% compared to Euro 1,035 million in the fourth quarter 2008.

  • Managed & Outsourcing solutions grew very strongly this quarter, driven by the many large contracts signed throughout the year 2008 and which had not come into effect in the first quarter of last year. Alcatel-Lucent signed three new managed services contracts this quarter, including BASE in Belgium.

Alcatel-Lucent noted that it is actively sharpening its portfolio around its "high leverage network" strategy, which aims at ensuring continuous and cost-effective scaling of bandwidth from the access to the transport layer, while "instrumenting" the network with built-in service and application awareness as well as traffic optimization capabilities. The company confirmed that it is engaged in active discussions with potential co-sourcing partners. The aim is to develop a joint go-to-market approach to leverage the IT/telecommunications convergence and help Alcatel-Lucent optimize its efficiency in areas such as IS/IT, finance, HR and R&D.

Alcatel-Lucent also reiterated its guidance for 2009. The company continues to expect the global telecommunications equipment and related services market to be down between 8% and 12% at constant currency in 2009. The company still anticipates an adjusted operating profit around break-even in 2009.

The full report along with a webcast is online.

Sunday, May 3, 2009

Ixia Tests 100 Gbps Ethernet

Ixia's higher speed Ethernet (HSE) IEEE 802.3ba-compliant test equipment was used to successfully transmit and receive Ethernet traffic at 100 Gbps through a CFP Multi-Source Agreement (MSA) compatible optical module. The HSE load module, known as K2 by industry insiders, is capable of transmitting and receiving full line-rate 100 Gbps Ethernet traffic.

The CFP MSA is the first industry standard to support next generation Ethernet optical transceiver interfaces for both 100 Gbps Ethernet (100GbE) and 40Gb/s (40GbE). The CFP MSA defines the form factor of a hot-swappable optical transceiver supporting 40/100 GE and uses transceiver electrical interface consisting of multiple 10 Gbps lanes.

"Industry wide adoption of 100 GE is also dependent on the viability of optical transceivers that are defined by industry standard MSAs," said Errol Ginsberg, Chief Innovation Officer of Ixia. "This successful demonstration is another big step towards that goal, highlighting Ixia's ability and commitment to work with industry leaders to move Ethernet technology forward."

Ixia Introduces Low-Cost Appliance for Verifying IP/MPLS Networks

Ixia introduced its XR1000 integrated hardware appliance for end-to-end active monitoring and analysis of multiplay networks.

The new device, which is part of the company's IxRave service verification solution, is a Gigabit Ethernet probe that extends IxRave's ability to deliver multi-service testing, quality of experience (QoE) performance monitoring and fault isolation across different technology domains -- from subscriber multiplay to higher bandwidth IP/MPLS networks. With IxRave, service providers can actively test their customers' individual paths from the network core to the customer premise in a centralized solution. Large enterprises can also deploy the IxRave solution to help monitor and verify the network services being delivered by any number of service providers to their central or remote sites across the globe.

The XR1000 can be placed at the data center, access, edge and core demarcation points to isolate throughput and application quality problems to the network segment. It may be used in conjunction with the 10/100 Mbps XR100 or with downloadable software endpoints across an entire network to manage and monitor every customer path across a carrier network. The XR1000 can execute periodic active monitoring tests, trigger QoS-based measurements of industry standard network threshold values, generate alarms and traps, or issue on-demand live QoE network trend analysis. IxRave and the XR1000 measure data throughput, jitter, packet loss, latency delay, IPTV MDI and VoIP MOS metrics throughout the service provider network.

Sprint Nextel Loses Subscribers in Q1 but Sees Progress in Goals

Sprint lost approximately 182,000 wireless customers in Q1, giving it a total subscriber base of 49.1 million customers at the end of the quarter, compared to 49.3 million at the end of 2008. The company reported consolidated net operating revenues of $8.2 billion and a diluted loss per share of 21 cents. Consolidated net operating revenues were 12% lower than in the first quarter of 2008 and 3% lower than the fourth quarter of 2008. Both the year-over-year and sequential decline are primarily due to a lower contribution from Wireless and lower Wireline voice revenue. The company recorded $327 million of severance and exit costs, primarily related to the reduction in work force announced in January 2009.

"In the first quarter, we again made progress in our major areas of focus: financial stability, improving the customer experience and reinvigorating the brand," said Dan Hesse, Sprint Nextel CEO. "We achieved the largest sequential improvement in overall gross adds and net adds in Sprint Nextel history, reduced churn versus the prior year, and we generated more than enough cash in this quarter alone to pay all of our 2009 debt maturities.

"In customer care, our consecutive monthly improvement in first call resolution and customer satisfaction metrics has now extended to 15 months. This occurred even as we reduced cost by discontinuing the use of another six vendor call centers in the first quarter, bringing the reduction in call centers to 17 over the past 12 months. We performed well in the J.D. Power 2009 Wireless Call Quality Performance Study, including a tie for first place in the Western region, and achieved other third-party confirmations of our solid network performance," Hesse said.

Some highlights for the quarter:

  • Sprint will be the exclusive carrier partner for the new Palm Pre

  • Capital expenditures were $291 million in the quarter, compared to $548 million in the fourth quarter of 2008 and $1.4 billion in the first quarter of 2008. The decrease reflects lower spending in both the Wireless and Wireline segments. Included in first and fourth quarter 2008 capital expenditures is $236 million and $90 million respectively in non-recurring capital expenditures related to the deployment of WiMAX prior to the closing of the Clearwire transaction.

  • Net debt decreased by approximately $800 million from the end of the fourth quarter, to $17.1 billion.

  • Of the 49.1 million customers, 35.4 million are post-paid subscribers (25.3 million on CDMA, 8.9 million on iDEN, and 1.2 million Power Source users who utilize both networks), 4.3 million prepaid subscribers (3.5 million on iDEN and 800,000 on CDMA) and 9.4 million wholesale and affiliate subscribers, all of whom utilize the CDMA network.

  • The wireless customers losses include 1.25 million post-paid customers -- comprising 531,000 CDMA and 719,000 iDEN customers (including a net 94,000 customers who transferred from the iDEN network to the CDMA network). The company also lost 90,000 prepaid CDMA customers. The company gained a net 764,000 prepaid iDEN customers and 394,000 wholesale and affiliate subscribers. The company achieved total subscriber growth on the iDEN network.

  • About 8.6% of post-paid customers upgraded their handsets during the first quarter, resulting in increased contract renewals.

  • Post-paid churn was 2.25% compared to 2.16% in the fourth quarter and 2.45% in the year-ago period. The sequential increase in churn is primarily driven by deactivations on business lines, made worse by current economic conditions, and the year-over-year decrease is due to the improvement in the credit quality of our customer base and was achieved in spite of a reduction in customer credits.

  • Boost churn in the first quarter was 6.86%, compared to 8.20% in the fourth quarter of 2008 and 9.93% in the year-ago period. The year-over-year improvement in churn is due to fewer deactivations, and the sequential improvement is due to fewer deactivations and a slightly larger subscriber base as a result of the national Boost Monthly Unlimited offer.

  • Wireless post-paid ARPU in the quarter was stable sequentially and year-over-year at $56, primarily due to growth in fixed-rate bundled plans such as Simply Everything, offset by seasonal declines in usage.

  • Data revenues contributed greater than $15 to overall post-paid ARPU in the first quarter, led by growth in CDMA data ARPU. CDMA data ARPU increased about 5% from the fourth quarter, to greater than $18, an industry-best that now represents more than 31% of total CDMA ARPU.

  • Prepaid ARPU in the quarter was approximately $31 compared to $29 in the year-ago period and $30 in the fourth quarter of 2008. The year-over-year and sequential increases reflect a growing contribution from prepaid subscribers on unlimited plans.

  • Wireline revenues of $1.5 billion for the quarter were almost 4% lower sequentially and 10% lower year-over-year as legacy voice and data declines offset Internet revenue growth.

  • Wireline Internet revenues for the quarter increased 16% from the year-ago period and 2% sequentially. The year-over-year increase reflects strong enterprise demand for Global MPLS services and the increasing base of cable subscribers who utilize VoIP services. Internet revenues as a percent of Wireline revenue have increased from 30% in the first quarter of 2008 to 39% in the first quarter of 2009. At the end of the first quarter, the company supported approximately 4.6 million users of cable partner VoIP services. These services are currently available to almost 31 million MSO households.

  • Wireline capital expenditures were $77 million in the first quarter, compared to $110 million in the fourth quarter of 2008 and $148 million in the first quarter of 2008. The company made significant capital investments in prior years to build out its IP network, and less capital was required year-over-year and sequentially as the pace of its IP growth rate has slowed.

  • Sprint Nextel anticipates that an increasing number of wireless customers could choose prepaid services instead of post-paid services in this economic environment. Nevertheless, the company continues to expect that not only prepaid, but also post-paid and total subscriber full-year losses should improve in 2009 as compared to 2008. In addition, the company still expects that full-year capital expenditures in 2009 will be consistent with 2008 levels, excluding WiMAX.

Telco Systems Intros Ethernet Demarcation Box

Telco Systems introduced a low-cost Carrier Ethernet demarcation device designed to address provisioning and management capabilities of an Ethernet service in the first mile.

The T-Marc 280 is the newest member of the company's T-Marc family of intelligent, remotely-managed demarcation devices which are purpose-built to integrate networking, testing and assurance capabilities. Like other members of the T-Marc family, T-Marc 280 supports advanced Layer 2 networking using Telco Systems' AccessEthernet technology to allow total flexibility in deployment, provisioning, and delivery for Metro Ethernet services.

Voltaire Leverages InfiniBand to Reinvent Ethernet

Voltaire, which supplies high-performance InfiniBand fabrics for supercomputers, unveiled a 10 Gigabit Ethernet Layer 2 core switching strategy based on Converged Enhanced Ethernet (CEE) technology.

Voltaire's CEE leverages many of the characteristics inherent in InfiniBand to create a more scalable, lower latency, and virtualized 10 Gigabit Ethernet fabric, with lower costs, power consumption and simplified management.

Voltaire said its new 10 Gigabit Ethernet architecture will be a natural extension to its family of 20 and 40 Gb/s InfiniBand switching platforms and software.

At the center of Voltaire's scale-out Ethernet architecture are new high-density Layer 2 core switches based on CEE standards that deliver a high-performance, low-latency, low power and virtualized data center fabric. Instead of using many hierarchical switching tiers, the Voltaire approach uses fewer switches and allows greater scalability while guaranteeing higher performance, simplified management and lower costs. For a customer building a 1000 node data center, this approach delivers 10X lower latency and 4X faster core performance for half the price, using 3X less power than alternative solutions.

"The current multi-tiered approach to data center Ethernet networking is expensive and outdated, lacks innovation and encourages vendor lock-in," said Ronnie Kenneth, chairman and chief executive officer, Voltaire. "With Voltaire's unique scale-out approach to Ethernet, we're simplifying and flattening the network to improve data center networking economics by orders of magnitude. Together with our server OEM partners, we're bringing new value to the customer that can translate into millions of dollars in savings for a new data center build-out."

Key characteristics of Voltaire's scale-out Ethernet fabric include:

  • Linearly Scalable -- The Voltaire scale-out Ethernet fabric maintains its high performance, low costs and ease of management even when deployed in very large setups consisting of thousands of nodes.

  • Efficient -- The Voltaire scale-out Ethernet fabric's optimized design uses high-density, low latency, energy-efficient and low cost Layer 2 non-blocking switches.

  • Converged -- One fabric can run LAN, IPC, and storage (including FCoE) traffic simultaneously with guaranteed service attributes and dynamic congestion management.

  • Virtualized and Service Oriented -- Voltaire's virtualization-aware scale-out Ethernet fabric provides application- and service-driven fabric monitoring and SLA enforcement.

  • Open and Standard -- The Voltaire scale-out Ethernet fabric supports industry-standard servers, third party switches, management and virtualization solutions.

The detailed architecture is outlined in a new whitepaper available today, titled, "Scaling-Out Ethernet for the Data Center.".

IBM Resells Mellanox 40 Gbps InfiniBand Adapters

IBM is reselling Mellanox Technologies' single-port and dual-port ConnectX 40 Gbps (QDR) InfiniBand Host Channel Adapters (HCAs) as part of the IBM System Cluster 1350 and iDataPlex systems. The companies said a broad range of application environments will benefit from Mellanox 40Gb/s InfiniBand-connected IBM System Cluster solutions, including applications optimized for industrial design and manufacturing, financial services, life sciences, government and education. They are also an excellent choice for applications that require horizontal scaling capabilities, such as Web serving and collaboration.