Wednesday, July 8, 2009

3Com Reports Quarterly Revenue of $295 Million, Down 8.2% YoY

3Com reported revenue for its fiscal 2009 fourth quarter, which ended May 29, 2009, of $295.1 million, compared to revenue of $321.3 million in the corresponding period in fiscal 2008, an 8.2 percent decrease. Net income in the quarter was $20.2 million, or $0.05 per diluted share, compared with a net loss of $166.7 million, or $(0.41) per share, in the fourth quarter of fiscal year 2008.

Fiscal year 2008 fourth quarter results included a $158.0 million goodwill impairment charge. On a non-GAAP basis, net income for the fourth quarter of fiscal year 2009 was $37.2 million, or $0.10 per diluted share, compared with net income of $35.6 million, or $0.09 per diluted share, for the fourth quarter of fiscal year 2008.

Revenue for the full fiscal year 2009 was $1,317.0 million, compared with $1,294.9 million in the prior year, a 1.7 percent increase.

Akamai Releases State of the Internet Report for Q1 2009

Akamai Technologies published a State of the Internet report for Q1 2009 providing insight into key Internet statistics such as origin of attack traffic, network and Web site outages and Internet connectivity levels across the globe. Some highlights from the report follow.

Attack Traffic

During the first quarter of 2009, Akamai observed attack traffic originating from 68 unique countries around the world. The United States and China were the two largest attack traffic sources, accounting for nearly 50% of observed traffic in total. The top 10 ports saw approximately 90% of the observed attack traffic, with more two-thirds of the traffic likely related to the Conficker worm.


A number of new submarine cable projects were announced or deployed in the first quarter that are expected ultimately to improve Internet connectivity for countries in Africa, Europe, South America and the Caribbean, and Oceania. New WiMAX projects and deployments will bring broadband wireless connectivity to countries in Eastern Europe, Africa, Asia, and the former Soviet Union. Fiber-to-the-home efforts announced in the first quarter will benefit users in New Zealand, Australia, Bali, Latvia, Scotland, and England.

The first quarter also saw nominal advances in IPv6 adoption, including seven more country-level domains enabling their DNS servers for IPv6. In the United States, and countries around the globe, "stimulus funding" was allocated in the first quarter to help improve broadband availability in rural areas.

Broadband Connectivity

Through its globally-deployed server network, and by virtue of the billions of requests for Web content that it services on a daily basis, Akamai has developed a unique level of visibility into the connection speeds of those systems issuing the requests, and as such, of broadband adoption around the globe. Akamai observed a nearly five percent increase (from the fourth quarter of 2008) globally in the number of unique IP addresses connecting to Akamai's network.

Current highlights and historical trends for average connection speeds on a global basis can be found in Akamai's data visualization tool, available at In the first quarter of 2009, one-fifth of the Internet connections around the world were at speeds of greater than 5 Mbps, a 5 percent increase from the prior quarter, and a nearly 30 percent increase over the same period last year. Globally, the average connection speed increased by approximately 11 percent, growing to 1.7 Mbps, and more than 120 countries had connection speeds under 1 Mbps.

Fastest Global Countries

From a global connection speed perspective, Japan unseated South Korea for the highest levels of "high broadband" (>5 Mbps) connectivity, though South Korea maintained the highest average connection speed, at 11 Mbps. For the first time since publishing the State of the Internet report in the first quarter of 2008, South Korea no longer had the largest percentage of connections to Akamai at speeds above 5 Mbps, with a significant 25% decline. Akamai also saw fewer unique IP addresses from South Korea during the first quarter, along with a lower average connection speed. The first place spot was taken by Japan, with 57% of connections to Akamai at high broadband levels. Nearly a third of Japan's connections to Akamai are at speeds between 5-10 Mbps. Sweden showed a similar percentage of connections between 5-10 Mbps, while other countries in the top 10 saw levels below 30 percent.

Fastest U.S. States

Continuing the trend established throughout 2008, the East Coast of the United States continued to lead the country in the greatest level of broadband connectivity, with 8 of the top 10 states on the list. Delaware maintained its top position, with 62% of connections to Akamai occurring at 5 Mbps or greater, and the highest average connection speed in the United States, at 7.2 Mbps. Maine has nearly quadrupled its percentage of high broadband connections to Akamai since the first quarter of 2008.

Anritsu Offers Next Gen Base Station Analyzer for 4G

Anritsu introduced a handheld base station analyzer supporting emerging 4G standards as well as installed 2G/3G networks. The MT8221B's platform provides a 20 MHz demodulation capability to measure technologies such as LTE and WiMAX, and a 30-MHz Zero-Span IF Output for external demodulation of virtually any other wideband signal. In addition, a Vector Signal Generator option with the flexibility to generate two modulated signals plus noise is available for comprehensive receiver testing.

Senior cell site technicians and RF engineers can use the BTS Master MT8221B to test and verify the installation and commissioning of base stations and cell sites, for optimal wireless network performance. It is equally suited for on-going maintenance and troubleshooting to help ensure the operation of wireless network infrastructure. Key performance indicators (KPIs), such as dropped calls, call denial, or call blocking rates due to a malfunction at the cell site or interference, can be easily and accurately detected with the BTS Master MT8221B.

Verizon Business Launches Application Security Program

Verizon Business introduced an Application Security Program that takes a risk-based approach to protecting the critical data contained within each application. The program helps understand and identify the potential security threats to their applications, and take steps to protect them. Customers also have the option to pursue a Verizon Cybertrust Application Certification, which verifies that their information-security controls, policies and procedures meet a stringent set of standards.

As shown by Verizon Business' "2009 Data Breach Investigations Report," hackers often sneak into and compromise a company's sensitive data and business systems via insecure applications. Of the 285 million compromised records from the 90 confirmed breaches in 2008 that were examined by the report, 79 percent were compromised via Web applications.

The Verizon Application Security Program comprises three tiers: Baseline, Assess and Certify.

In the first tier of the program, Verizon security experts conduct an initial application-risk assessment, which consists of baseline scanning and reviewing the software development lifecycle of the applications. Verizon determines the types of data consumed by specific applications, which is critical to establishing each application's risk level, and also determines which applications present the highest risk for the business.

The second tier focuses on high-risk applications. Verizon conducts a full-scale review to assess the criticality and severity of impact to the business if these assets were to be exploited. Typical assessment activities include application vulnerability assessments, penetration testing and security source code reviews.

The third tier offers customers the option of pursing the Verizon Cybertrust Application Certification, which verifies that an organization's information-security controls, policies and procedures have been examined, measured and validated against a stringent set of Verizon security standards.

Verizon said its certification is rigorous, and renewal requires annual recertification. Certified customers can display and share the Verizon Cybertrust seal with customers, partners and prospects to demonstrate that information security is a top priority for them.

The service is available immediately available in the U.S. and in a number of other countries to large-business customers.

RCN Drops Bid for FiberNet, Deal with Zayo Proceeds

RCN withdrew its proposal to acquire FiberNet for $12.50 per share.

Consequently, FiberNet is proceeding with a sale to Zayo Group for $11.45 per share in cash. The transaction is not subject to any financing condition. The transaction is expected to be completed during the third quarter of 2009.

FiberNet owns and operates integrated colocation facilities and diverse transport routes in the gateway markets of New York/New Jersey, Los Angeles, Chicago and Miami.

Zayo Group is a regional provider of telecom services -- including bandwidth, voice and managed services -- to carrier, enterprise, SME and government customers. Zayo Group currently provides its service over a fiber network that spans 129 markets in 23 states. Zayo Group consists of three complementary business units: Zayo Bandwidth, Zayo Managed Services and Onvoy Voice Services.

Qualcomm Donates Rapidly Deployable 3G Base Station to ITU

Qualcomm will donate a rapidly deployable 3G CDMA base station to the I.T.U. to improve emergency communications for disaster preparedness and to coordinate relief activities in the aftermath of a disaster. The system has an estimated value of $500,000.

JDSU to Acquire Finisar's Network Tools Business

JDSU will acquire Finisar's Network Tools business for approximately $40.6 million in cash. The Network Tools business, which had revenue of $44.2 million in Finisar's fiscal year 2009 ending April 30, 2009, provides storage area network (SAN) protocol test tools, software and services. The companies expect to close the transaction before the end of July 2009.

The Network Tools portfolio, focused on the SAN analysis and data generation and load testing segments, specializes in a wide range of storage protocols, such as Fibre Channel, Gigabit Ethernet, 10GigE, iSCSI, SAS and SATA.

JDSU said the acquisition will help it expand its lab test market presence. Network Tools' customers include the world's leading storage network system and component manufacturers, system integrators as well as enterprises operating major data centers. The combination of JDSU's communications test development expertise in areas such 40/100G with Network Tools' strength in storage network protocol test will fuel product innovation addressing Fibre Channel over Ethernet and other emerging SAN test market opportunities.

The Network Tools business, currently headquartered in Sunnyvale, CA, includes more than 100 employees worldwide. Upon close of the transaction, Network Tools will form the Storage Network Test unit in the Instrument Business Division of JDSU's Communications Test and Measurement business segment. Dave Buse will continue to lead the business, reporting to Jerry Gentile, general manager of JDSU's Instrument Business Division.

EXFO Launches Smaller, Portable Test Platform

EXFO Electro-Optical Engineering introduced a four-slot version of its FTB-500 portable test platform, which is intended for installation, maintenance and troubleshooting applications on telecom networks.

For ROADM and PTN network turn-up, the four-slot FTB-500 simultaneously runs an optical spectrum analyzer (FTB-5240S-P-InB) and a SONET/SDH, OTN, Ethernet and Fibre Channel analyzer (FTB-8130NGE Power Blazer), a combination that delivers multiple software-based test capabilities, including in-band OSNR measurement for qualifying newly commissioned OTN links, standard and over-clocked OTN functionalities for commissioning the transport layer, and SONET/SDH, Ethernet and Fibre Channel functionalities for qualifying all ROADM-supported interfaces. In addition, the FTB-500 offers battery operation, remote management and integrated optical tools, making it the industry's leading ROADM-based network testing solution.

BT Accelerates its Fiber Rollout

BT will accelerate its fibre rollout to cover more than a million additional homes and businesses across the UK. The acceleration of BT's plans will see 1.5 million homes have access to such services by early summer 2010 . A million of those homes will have access by March, which is a doubling of the original pace of deployment.

BT said it aims to make super-fibre broadband available to 40 percent of the UK -- or some 10 million homes -- by 2012. The company has pledged to spend £1.5 billion for the rollout. This investment falls within BT's current capital expenditure plans. Sixty nine locations across England, Scotland, Northern Ireland and Wales will benefit from this latest phase of BT's investment programme. The pilots of the technology went live this week in Muswell Hill, London and Whitchurch, South Wales. Sixteen service providers are participating in the pilots.

BT is using a mix of Fibre to the premise (FTTP) and Fibre to the cabinet (FTTC) topologies, with FTTC expected to be the predominant architecture. FTTP delivers downstream speeds of up to 100 Mbps-- and potentially up to 1000 Mbps in the future - and upstream speeds of up to 40 Mbps. FTTC can be used to support download speeds of up to 40 Mbps initially, potentially rising to 60 Mbps in the future. Initial upstream speeds will be between 5 and 10 Mbps rising to 15 Mbps.

Steve Robertson, CEO of Openreach, the division of BT responsible for the roll-out said: "Fibre is the future and so we're speeding up the pace of our plans. We had aimed to get fibre to half a million homes by next March but we're now being far more ambitious. We've received a tremendous response to date and so we're keen to get on with the job.

Deutsche Telekom Announces VDSL Wholesale Deal

Deutsche Telekom reached a wholesale agreement for 1&1 and Vodafone to offer VDSL connections over its network in Germany.

The service is due to be launched over the next few months. 1&1 and Vodafone will be the first competitors to use the wholesale service for VDSL Double Play, which will offer customers transmission speeds of up to 50 Mbps while surfing the Internet. Deutsche Telekom has already expanded its VDSL network in 50 German towns and cities.

In a press statement, Deutsche Telekom emphasized that it reached this agreement voluntarily and that it views regulatory pressure as counter-productive.

DT already has plans in place to expand the network in 13 German towns and cities by teaming up with competitors such as Vodafone, EWE, M-Net and NetAachen. Further discussions are also underway.

"No new infrastructure will be built simply as a result of regulating network access. What Germany now needs is the courage to deregulate; more freedom will help further boost growth in the broadband market," stated Timotheus Höttges, Chief Financial Officer at Deutsche Telekom.

Sprint Awards 7-Year Network Mgt Deal to Ericsson

Sprint awarded a seven-year network management outsourcing contract to Ericsson covering its CDMA, iDEN and wireline networks. Sprint said the deal enables it to focus on delivering a superior customer experience, innovative services and popular new devices while letting Ericsson handle the day-to-day operations of its network. Key points of the deal include:

  • Sprint retains full ownership and control of its network assets, and solely owns network strategy and investment decisions.

  • Customers will continue to work directly with Sprint employees as their primary contact, as Sprint retains full control of the customer experience, customer technical support and services review.

  • Sprint retains technology and vendor selections.

  • Ericsson assumes responsibility for the day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks.

  • Ericsson will optimize Sprint's multi-vendor inventory of assets such as spare parts and transmission equipment, and provide processes and tools for managing the national network platforms and operational support systems.

  • The transferred employees will become part of Ericsson Services Inc., a wholly-owned Ericsson subsidiary based in Overland Park, KS, a move that retains jobs in the United States. No force reductions are currently contemplated as a result of this agreement.

The agreement, with an option for renewal, will result in payments for services valued at between $4.5 billion and $5 billion (USD) over the seven-year term of the contract. The transaction calls for about 6,000 Sprint employees to begin performing their network functions as Ericsson employees sometime in the 3rd quarter.

A new entity called Ericsson Services Inc. will be established in Overland Park, KS.

Sprint said it also foresees cost savings, better inventory management and increased network efficiencies from the deal. The cost savings will be reinvested in the network for better coverage. Expected cost savings were not specified in the announcement.

Tuesday, July 7, 2009

Infineon to Divest Wireline Business to Private Equity for EUR 250 Million

Infineon Technologies will sell its Wireline Communications (WLC) business to Golden Gate Capital for EUR250 million. Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $9 billion of capital under management.

Infineon's Wireline division supplies semiconductor solutions for ADSL/VDSL, access network processors, broadband CPE, TE carrier solutions, VoIP and digital cordless phones. Employment contracts for approximately 600 WLC employees will be transferred to the new company. Furthermore, an estimated 300 employees from Infineon central functions who already work on behalf of the WLC segment today are also designated to join the new company.

All products, locations and development projects will be continued by the new company. Around 800 patent families will be transferred.

Christian Wolff, who has led the division for many years, has been designated CEO of the new company. A name for the new company has not yet been announced.

Infineon said the divestiture enables it to focus on four segments: Automotive (ATV), Industrial & Multimarket (IMM), Chipcard & Security (CCS) and Wireless Solutions (WLS). The transaction will significantly improve Infineon's financial situation. Closing is expected in autumn 2009.

"The divestiture of the WLC segment is an important step in our overall refinancing process. Furthermore, our stronger focus enables us to expand our leading technological position in the three key sectors energy efficiency, communications and security", says Peter Bauer, CEO of Infineon Technologies AG. As the Wireline Communications segment is relatively independent from the working and production processes of the company as a whole, the carve-out will involve reasonable effort.
  • In 2007, Infineon Technologies acquired Texas Instruments' DSL Customer Premises Equipment (CPE) business. Financial terms were not disclosed.

  • Also in 2007, LSI sold its mobility products business to Infineon Technologies for $450 million in cash, plus incentives. The division, which originally belonged to Agere Systems, designs semiconductors and software for cellular telephone handsets and complete chip-level solutions for satellite digital audio radio applications.

Latin American Mobile Carriers Launch Free-to-Air TV with Telegent

Telegent Systems, which supplies single-chip mobile TV solutions, reports accelerating adoption by leading operators throughout Latin America of mobile phones with a free-to-air TV feature.

Since December of last year, subsidiaries of América Móvil and Telefónica that are the leading operators in their country -- including Telcel in Mexico, Claro Argentina, COMCEL Colombia, and Movistar in Mexico and Peru -- have deployed multiple models of Telegent-enabled TV handsets that allow consumers to receive live, free-to-air broadcast TV programs -- without additional cost.

Telegent said free-to-air TV phones provide an additional benefit to operators -- because the phones leverage the existing broadcast ecosystem and TV content, operators are able to deliver the TV feature to customers without a significant financial investment in infrastructure and content licensing, and customers are able to access TV on their mobile without having to pay more for a service.

BridgeWave's Backhaul Links Video Surveillance Net in Texas

BridgeWave Communications' FE60U gigabit upgradeable wireless products are being used to power the wireless video surveillance network for the City of Highland Village in Texas. BridgeWave's radio links provide the backhaul for the surveillance video cameras. BridgeWave said that a fiber optic network for the surveillance cameras was not an option in this case due to cost and time-to-install. To cover the shopping centers, Highland Village used multiple license-free BridgeWave FE60U products for its advanced wireless security providing full-rate, full-duplex Fast Ethernet capacity. In addition, the ultra-low latency afforded by these wireless links allow officers at the monitoring station to utilize the camera's full pan-tilt-zoom function with little delay, providing razor sharp images as the camera moves to a new subject almost instantaneously. As the network adds more cameras, and thus requiring greater backhaul capacity, the FE60U links can be upgraded to full-rate gigabit speeds.

Orange Business Wins EUR 100 Million Deal with Total for Global VPN

Orange Business Services and Total have signed a 5-year global networking contract with a value of up to EUR 100 million. Under the deal, Orange Business Services is responsible for the integration, operation and optimization of WAN networks for Total at more than 1,000 sites in 100-plus countries.

Total, which is based in Paris and ranks as one of the largest oil and chemical companies in the world,
has set forth an IT VISION program that calls for all of its employees to use the same collaborative tools and with a uniform level of service wherever they are in the world.

Orange Business Services will be responsible for integrating and managing all of Total's networks whether provided by Orange or by third party operators. The goal is to deliver reliable, homogeneous and financially viable WAN services for every local Total entity. As the "integrator of operators", Orange Business Services will guarantee the continuity and quality of service for all of Total's WAN networks -- including supervision, operational and contractual management of third party suppliers, project management -- along with WAN optimization solutions.

China's Sohu Picks 3Com's H3C for Next Gen Data Center

Sohu, one of China's leading search engines and online destinations, has selected 3Com's H3C data center solutions to build a next-generation data center. Sohu made its decision after a two-month field test of H3C's recently launched data center solutions portfolio -- including the S12500 Series core switch line and the S5800 Series 10-gigabit switch series. Financial terms of the exclusive network supplier contract were not disclosed.

As the first third-generation interactive Chinese search engine launched by Sohu, is vital to the company's future business prospects and development. Sogou's launch requires a data center platform that can support storage of 10 billion Web pages; a Web page update and rating system; high-performance, concurrent access to and from numerous server clusters; and flexible expansion in years ahead.

Ericsson Signs US$1.7 Billion Contracts with China Mobile, China Unicom

Ericsson signed 2G/3G framework agreements with China Mobile and China Unicom, valued at USD 1 billion and USD 0.7 billion respectively. China Mobile and China Unicom have received 3G licenses of TD-SCDMA and WCDMA standards respectively at the beginning of 2009. Together the two operators are currently serving more than 620 million mobile subscribers.

Under the deal with China Mobile, Ericsson will continue to deliver green solutions to support China Mobile's network energy optimization and CO2 emission reduction target. Ericsson will also expand GSM/GPRS network coverage and capacity in 18 provinces in China with related services. In addition, Ericsson also supports China Mobile's 3G network build-out by providing a wide range of innovative TD-SCDMA products and solutions.

Under the deal with China Unicom, Ericsson will not only become the main supplier to upgrade China Unicom's GSM networks in 10 provinces, but also provide the operator with GSM/WCDMA core network and/or wireless access system in 15 provinces, including transmission, IP and value-added service platform. Ericsson's strong local support team with global experience plays a key role in supporting China Unicom in launching the world's largest WCDMA commercial networks.

T-Mobile UK Signs 4-Year Services Deal with Amdocs

T-Mobile UK awarded a four-year managed services agreement to Amdocs to manage the ongoing development, maintenance and support of T-Mobile UK's billing, customer care and ordering systems for its 16.7 million subscribers. Amdocs will also modernize T-Mobile UK's ordering system. Financial terms were not disclosed.

Cisco Appoints Chief Strategy Officer

Cisco has appointed Ned Hooper as Chief Strategy Officer (CSO).

Cisco appointed Ned Hooper as Chief Strategy Officer (CSO). Hooper is an 11-year veteran of Cisco. Prior to his current role, he was Vice President of Business Development, where he led the company's acquisition strategy focusing on growth opportunities by entering new markets and integrating innovative technologies into Cisco businesses. Through acquisitions including Linksys, Scientific Atlanta, Webex, IronPort, Airspace and Pure Digital, he has led Cisco's expansion in new markets, resulting in more than $5 billion in additional annual revenue since 2002.

EMC Announced Definitive Deal to Acquire Data Domain

Following a protracted bidding war with NetApp, EMC Corporation announced a definitive agreement to acquire Data Domain , a leading provider of deduplication storage solutions, in a cash tender offer for $33.50 per share. The transaction is expected to have a total enterprise value of approximately $2.1 billion, net of Data Domain's cash.

Joe Tucci, EMC Chairman, President and CEO, said, "This is a compelling acquisition from both a strategic and financial standpoint. We look forward to bringing Data Domain together with EMC to form a powerful force in next-generation disk-based backup and archive. I have tremendous respect for Data Domain's people, technology and business, and anticipate great things ahead for our respective companies, our customers and partners."