Friday, July 24, 2009

Ericsson Wins Bid for Nortel's Wireless Assets

Ericsson will acquire acquire Nortel's CDMA and LTE assets in North America in a deal valued at US$1.13 billion in cash. Ericsson's bid prevailed in the auction process initiated by Nortel. The deal is subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.

The agreement includes important CDMA contracts with North American operators such as Verizon, Sprint, U.S. Cellular, Bell Canada and Leap, as well as LTE assets, certain patents and patent licenses relating to CDMA and LTE. Nortel's customers will also benefit from the continued support of Nortel's installed CDMA base and the migration path to LTE.

Nortel's North American CDMA operations generated approximately USD 2.0 b. in 2008, with robust profitability from a good product mix, which includes a significant amount of services. Going forward, research and development costs are expected to be relatively low in CDMA compared with other technologies.

Ericsson's North American business generated SEK 17.9 (USD 2.7) b. of sales in 2008, mainly from GSM and WCDMA equipment and associated services. When coupled with the recently announced Sprint services agreement, this acquisition makes North America the largest region within Ericsson and encompasses some 14,000 employees.

Ericsson said the acquisition will have a positive effect on its earnings within a year after closing.

Magnus Mandersson, presently head of Ericsson Northern Europe, is appointed President of Ericsson CDMA operations, and Richard Lowe, Nortel, is appointed Chief Operating Officer.

"Acquiring Nortel's North American CDMA business allows us to serve this important region better as we build relationships for the future migration to LTE. Furthermore, by adding some 2,500 highly skilled employees, of which about 400 are focused on LTE research and development, Ericsson reinforces and expands a long-term commitment to North America. This deal, along with our recently announced Sprint service agreement, truly positions Ericsson as a leading telecoms supplier in North America," said Carl-Henric Svanberg, President and CEO of Ericsson.

"Nortel remains focused on finding the right buyers for our other businesses while continuing to maintain excellent customer service levels. We are determined to maximize value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible. With today's agreement and through the anticipated sales of the Company's other businesses, Nortel will leave its mark on the industry for decades to come," stated Nortel President and Chief Executive Officer, Mike Zafirovski.
  • Earlier this month, 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. 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.

  • In June, Nokia Siemens Networks had announced its bid to acquire Nortel's key wireless assets for $650 million.

Thursday, July 23, 2009

Vodafone Revenue Falls Across Europe, Grows in India and Africa

Vodafone Group's Q2 revenue increased by 9.3% overall thanks to the positive impact of exchange rates (8.6% of the gain) and growth in India, South Africa and Italy, but its organic service revenue declined by 2.1% due to weakness across most of Europe and Central Europe due to economic conditions. The declines were primarily driven by reductions in voice revenue resulting from continued pricing pressure and slower usage growth in the current economic climate, as well as lower visitor and roaming revenue as people traveled less. These declines were partially offset by growth in data, fixed line and wholesale revenue. The organic service revenue growth rate was similar to the previous quarter after taking into account mobile termination rate cuts, seasonality and the impact of a new accounting standard for loyalty programs.

A few other highlights from the quarterly report.

  • The total number of mobile customers the Group now reaches has surpassed 315 million (proportionate to the investment held in various operators).

  • Organic data revenue growth was 19.4%, slightly lower than the previous quarter due to the impact of lower data roaming and lower enterprise activity.

  • In fixed broadband the Group generated over 200,000 additions in Europe and fixed line revenue grew at constant exchange rates by 18.5% in Italy and 15.4% in Spain. Europe's enterprise revenue declined reflecting the economic pressure on business customers.

  • Capital expenditure of GBP1.2 billion was at a similar level to the same quarter last year after adjusting for foreign exchange, reflecting continued investment in Europe to support network quality and data growth and in India to drive revenue through footprint expansion.

  • In India, Service revenue grew by 23.0% at constant exchange rates including a 7.0 percentage point benefit from the revenue stream generated by the network sharing joint venture Indus Towers. The average customer base increased by 56.0% reflecting the launch of services in seven new circles in the previous financial year. Usage per customer
    slowed as a higher number of customers utilized SIMs from more than one operator, in particular in the new circles.

Nokia to Acquire Cellity for Mobile Software Development

Nokia has agreed to acquire cellity, a start-up based in Hamburg, Germany, for an undisclosed sum.

cellity currently offers a solution to collect and securely store users' contacts in one place. The service is an easy way to connect people on the mobile and the web.

Nokia said it will acquire the cellity team to strengthen its competencies in the area of social networking. cellity's current service will not transfer to Nokia and the service will be discontinued.

After closing, cellity's 14 employees will become part of Nokia's Services unit.

Social Security Administration Chooses Verizon, AT&T

The U.S. Social Security Administration selected Verizon Business to serve as primary IP and data services provider, under a new Networx Universal task order. Under the agreement, valued at $140 million through 2017 if all options are exercised, Verizon Business will continue to advance and manage the SSA's wide-area network, known as the Enterprise-Wide Network Infrastructure (SSANet). In addition, Verizon Business will transition to an MPLS platform for the portion of the SSANet used for connecting to external business partners. Verizon Business previously implemented a similar transition for the SSA's internal network.

The SSA also named AT&T Government Solutions as secondary data network provider. This contract was valued at approximately $80 million. The agency leveraged the $20 billion U.S. General Services Administration Networx Universal contract to make the award. AT&T noted that it has served the voice and data network needs of SSA for several years. AT&T currently provides MPLS services to support approximately 1,000 SSA locations throughout the United States, including the U.S. Virgin Islands, Hawaii, Puerto Rico, and Alaska.

Aircell's Chairman and CEO Swap Positions

Aircell announced the transition of Ron LeMay from Chairman of the Board to President and CEO of the company. Jack Blumenstein, current President and CEO, will assume the position of Chairman of the Board.

Aircell said it has experienced dramatic growth over the past few years since winning its exclusive FCC frequency license in 2006. Mr. Blumenstein has overseen the development of the Aircell Network and Gogo Inflight Internet service, as well as Aircell's airline partnerships, which represent the majority of the U.S. commercial aviation market.

LeMay is a 38-year veteran of the communications industry, having served as an officer at Southwestern Bell, AT&T and Sprint. His Sprint career spanned 18 years and included starting up Sprint PCS as its first employee and serving as its CEO.

"It is time for us to take Aircell to the next level and become the multibillion dollar company we know it can be," said Jack Blumenstein, Chairman of the Board, Aircell. "Ron brings a tremendous depth of operational experience from his days at Sprint and Sprint PCS and has worked closely with me over the past few years to guide the company through its rapid growth. I look forward to continuing to work with Ron and writing one of the great business success stories."

Extreme Appoints Vish Nandlall as CTO

Extreme Networks has appointed Vish Nandlall to the position of Chief Technology Officer Nandlall previously served as CTO for Nortel's Carrier Networks division, overseeing the technology vision for the company's successful Wireless and in Carrier VoIP Applications businesses. In addition to his role as CTO for Carrier Networks at Nortel, Nandlall has served in various technical leadership roles, as the chief architect for Nortel's CDMA technologies and lead architect for Metro DWDM. He is also a key figure in networking standards bodies that drive next-generation networking and communications, including, the IETF, 3GPP, 3GPP2 and as a board member for ATIS.

Nandlall holds a BSC Engineering, First Division, Electrical Engineering, from the University of New Brunswick.

Verizon Wireless Adds Record 1.1 Million in Q2, Earnings Out Today

Verizon Wireless added 1,1 million net customers in Q2 2009. This gives the company a total base of 87.7 million customers, including 85.2 million retail customers, which are those it directly serves and manages, and who choose the Verizon Wireless brand.

Verizon Communications is expected to release further operational data along with its quarterly financial results on July 27.

Verizon Wireless Adds Record 1.1 Million in Q2, Earnings Out Today

Verizon Wireless added 1,1 million net customers in Q2 2009. This gives the company a total base of 87.7 million customers, including 85.2 million retail customers, which are those it directly serves and manages, and who choose the Verizon Wireless brand.

Verizon Communications is expected to release further operational data along with its quarterly financial results on July 27.

Nokia Siemens Networks Underscores Wireless in North America

Following the news that Ericsson had prevailed in the auction to acquire Nortel's key wireless assets, Nokia Siemens issued a statement confirming its commitment to the global wireless infrastructure industry and highlighting its recent momentum in the North American market.

"Our final offer for Nortel's assets represented a fair price, and we did not enter this process with a win-at-any-cost mindset," said Bosco Novak, Chief Markets Operations Officer, Nokia Siemens Networks. "Ours was an opportunistic bid aimed at supporting the great progress we've made in North America in the past 18 months, and we are very confident that momentum will continue to grow."

US. Senate Confirms Mignon Clyburn and Meredith Attwell Baker as FCC Commissioners

The U.S. Senate confirmed Mignon Clyburn and Meredith Attwell Baker as FCC Commissioners. This brings the FCC back to having a full set of five commissioners.

Since 1998, Mignon Clyburn has been a member of South Carolina's Public Service Commission, which regulates the state's investor owned public utilities, including providers of telecommunications services. The South Carolina General Assembly elected Clyburn as a Commissioner representing the Sixth Congressional District in May of 1998, and she has been re-elected three times. She chaired the Commission from 2002 to 2004. Clyburn is a past chair of the Southeastern Association of Regulatory Utility Commissioners. She is presently the chair of the Washington Action Committee of the National Association of Regulatory Utility Commissioners (NARUC).

Meredith Attwell Baker most recently served as Acting Assistant Secretary of the National Telecommunications and Information Administration from 2007 to January 2009. She was previously Vice President at the firm of Williams Mullen Strategies, where she focused on telecommunications, intellectual property, and international trade issues. Earlier, she held the position of Senior Counsel at Covad Communications from 2000 to 2002, and Director of Congressional Affairs at the Cellular Telecommunications Industry Association (CTIA) from 1998 to 2000.

Wednesday, July 22, 2009

Riverbed Posts Q2 Revenue of $91 Million

Riverbed Technology reported Q2 revenue of $91.0 million, an increase of 12% from $81.6 million of GAAP revenue reported in the second quarter of fiscal year 2008. The GAAP net loss for Q2 was $290,000, or $0.00 per diluted share. This compares to a GAAP net loss of $869,000, or $0.01 per diluted share, in Q2'08.

"Riverbed has continued to deliver revenue growth in a persistently challenging global economic environment, and the second quarter marks our 14th consecutive quarter of year-over-year top line expansion," said Jerry M. Kennelly, Riverbed president and CEO. "We experienced another strong quarter of new customer additions, ending the second quarter with more than 6,500 customers."

ST-Ericsson Posts Revenue of $666 million; up 18% Sequentially

ST-Ericsson reported Q2 net sales of $666 million and an adjusted operating loss of $165 million. Net sales in the second quarter were higher than normal seasonal patterns and showed a progress of 18.5% compared to first quarter 2009 pro-forma sales. This was mainly due to the higher demand in China - driven by TD-SCDMA- and in the rest of Asia-Pacific and to the alignment of inventory to demand levels across the handset supply chain.

President and CEO, Alain Dutheil, commented: "During the second quarter our sales performed above normal seasonal patterns. This was due to the destocking phase in the channels being over, to the pick-up of demand in China, and to our steady execution on our commitments towards our customers.

"We have kept a strong focus on our restructuring and realignment plans. The $250 million cost synergies program, defined by ST-NXP Wireless in the third quarter 2008, is expected to be completed by year-end according to schedule. The new restructuring plan of $230 million cost synergies, announced at the end of April, has been initiated and is expected to be completed by the second quarter 2010."

TIA Issues Recommendations for National Broadband Plan

The Telecommunications Industry (TIA) issued its set of recommendations for creating a strong National Broadband Plan that will improve lives, enhance innovation, and help restore America's long-term prosperity. The comments filed with the FCC are intended to provide a "Roadmap" with targeted goals over the next three years.

Specifically, the TIA believes that the FCC should work to:

  • enhance efforts to stimulate investment and innovation in next-generation broadband;

  • pursue forward-looking spectrum management and the allocation of additional spectrum;

  • strive to provide communications to all Americans, including low-income Americans and those in rural areas, and persons with disabilities;

  • support open and fair market access for U.S. companies by promoting full, fair and open trade and competition in international markets;

  • foster investment by increasing federal funding, and employing tax credits, expensing provisions, and similar tools; and

  • promote the development of a broadband interoperable public safety network capable of protecting all communities in the event of further domestic disasters.

"The Commission has a unique chance to establish a transparent strategic National Broadband Plan to ensure that all Americans have access to affordable high-quality broadband and to enable ubiquitous consumer adoption of such services. TIA's Roadmap provides practical solutions, action items, and timelines that will swiftly bridge the broadband divide," said TIA Vice President for Government Affairs Danielle Coffey.

Alvarion and Nokia Siemens Networks Expand OEM Deal

Nokia Siemens Networks has expanded an existing OEM agreement to include Alvarion's portfolio of mobile WiMAX solutions. As part of this new agreement, Nokia Siemens Networks will resell Alvarion's latest mobile WiMAX 802.16e solutions to Nokia Siemens Networks' current and prospective WiMAX customers. This includes the Alvarion 4Motion Mobile WiMAX Solution, including the BreezeMAX base stations, ASN Gateways and 4Motion Element Management System. The company will also provide deployment, management and maintenance Services for the products and will leverage its proven multi-vendor capabilities for a most efficient and smooth solution.

SEACOM Enters Service with Terabit Capacity for East Africa

SEACOM's 17,000 km, submarine fiber optic cable system entered into commercial service, linking south and east Africa to global networks via India and Europe with 1.28 Terabit per second (Tbps) of capacity.

Backhauls linking Johannesburg, Nairobi and Kampala with the coastal landing stations have been established and SEACOM is also working with its national partners to commission the final links to Kigali and Addis Ababa shortly. The entire system will be operated and controlled through SEACOM's Network Operations Centre which is based in Pune, India.

The SEACOM system was designed and installed by Tyco Telecommunications.

"Today is a historic day for Africa and marks the dawn of a new era for communications between the continent and the rest of the world. Our tireless efforts of the past 24 months have come to fruition, and we are proud to be the first to provide affordable, high quality broadband capacity and experience to east African economies. Turning the switch ‘on' creates a huge anticipation but ultimately, SEACOM will be judged on the changes that take place on the continent over the coming years," commented Brian Herlihy, SEACOM's CEO.

Inauguration events are being held in South Africa, Tanzania, Kenya, Uganda and Mozambique, where SEACOM, in conjunction with Cisco Systems, will provide media and invitees direct access to true broadband connectivity, carry out live broadcasts and interactive real-time presentations across the system.

SEACOM is a Mauritian company owned 75% by African investors as a collaboration between East and Southern Africans and owns 100% of the SEA International Cable.
  • Tata Communications has become an anchor tenant customer on the privately owned SEACOM cable system, enabling the company to provide fully integrated network services from South Africa, Mozambique, Tanzania and Kenya to its networks in Europe, Asia and India. Another subsidiary company, Tata Communications Transformation Services Limited (TCTS), has been awarded the network administration, operations and maintenance contract of the cable supporting 1.28 Tbps of capacity.

    Tata Communications operates the landing point in Mumbai while Neotel will manage the landing point in South Africa. As result of this, the company can provide seamless connectivity between the SEACOM cable system and the Tata Communications global network, along with Neotel's converged network in South Africa.

AT&T Posts Strong Wireless Growth

AT&T reported Q2 revenues of $30.7 billion, compared with $30.9 billion in the year-earlier quarter, as growth in wireless and advanced wireline data services in large part offset pressures from the macro-environment, including revenue declines in voice and legacy data products.

Compared with results for the year-earlier quarter, AT&T's operating expenses for the second quarter of 2009 were $25.2 billion versus $24.3 billion; operating income was $5.5 billion versus $6.6 billion; and AT&T's operating income margin was 17.9 percent, compared with 21.3 percent.

Net income attributable to AT&T totaled $3.2 billion versus $3.8 billion in the year-earlier quarter, and earnings per diluted share totaled $0.54, compared with $0.63 in the second quarter of 2008.

Some highlights for the quarter:


  • Postpaid Subscriber Gains. Retail postpaid net adds totaled 1.2 million, up 29.0 percent versus results in the year-earlier second quarter and up 31.8 percent versus the first quarter of 2009. This marked AT&T's fourth consecutive quarter with a double-digit year-over-year improvement in postpaid net adds. Total wireless subscribers, which include prepaid and reseller results in addition to postpaid, increased by 1.4 million in the second quarter to reach 79.6 million, up 6.7 million over the past year.

  • Subscriber Churn. Average monthly postpaid churn improved to 1.09 percent, the lowest level in the company's history; postpaid churn was 1.10 percent in the year-earlier second quarter and 1.20 percent in the first quarter of 2009. Total wireless subscriber churn reached a record low at 1.49 percent, down from 1.64 percent in the year-earlier quarter and 1.56 percent in the first quarter of 2009.

  • 2.4 Million iPhone Activations. On June 19, AT&T began offering Apple iPhone 3GS, the fastest, most powerful iPhone yet, and immediate customer response was positive. The day of the launch was the best sales day ever for AT&T's retail stores, and experienced its largest order day ever on that day. For the full second quarter, AT&T iPhone activations totaled more than 2.4 million, with more than a third of those activations for customers who were new to AT&T.

  • Integrated Devices. AT&T offers a wide variety of integrated devices that bring advanced functionality to subscribers, ranging from advanced multifunction handsets for business customers to quick messaging and social networking devices. Including iPhone, the total number of 3G integrated devices in service on AT&T's network increased by more than 3.5 million in the second quarter. Over the past year the number of postpaid integrated devices on AT&T's network has more than doubled, and at the end of the second quarter, 36.0 percent of AT&T's 62.1 million postpaid subscribers had integrated devices.

  • Wireless Data Revenue Growth. AT&T's wireless revenues from messaging, Internet access, access to applications and related services increased $934 million, or 37.2 percent, versus the year-earlier second quarter. Data represented 28.7 percent of AT&T's second-quarter wireless service revenues, up from 22.9 percent in the year-earlier quarter and 17.3 percent in the second quarter of 2007. Wireless text messages on the AT&T network exceeded 108 billion, more than 1 billion text messages a day and nearly double the total for the year-earlier quarter. Internet access, data access and media bundle revenues also continued their strong growth. The number of 3G LaptopConnect cards on AT&T's network increased by nearly 50 percent over the past year to 1.4 million.

  • Postpaid ARPU Growth. Driven by strong data growth, postpaid wireless subscriber ARPU increased 2.3 percent versus the year-earlier quarter to $60.21. This marked the sixth consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU and the first time postpaid ARPU has topped $60. Postpaid data ARPU reached $17.72, an increase of $3.66 over the year-earlier quarter and up $1.24 from the first quarter of this year. Total service ARPU, which includes reseller and prepaid results in addition to postpaid, grew 0.2 percent versus the year-earlier quarter and was up 1.2 percent sequentially.

  • Wireless Margins. AT&T's second-quarter wireless operating income and margins reflect solid revenue growth of 10.1 percent and strong operational execution in network and support systems, offset by increased acquisition costs from the company's iPhone 3GS launch. AT&T iPhone subscribers, both new customers and upgrades, take two-year contracts with data packages. As a result, robust iPhone demand drives strong recurring revenues and substantial long-term value. Versus results for the year-earlier second quarter, wireless operating expenses totaled $10.1 billion, up 12.5 percent; operating income was $3.2 billion, up 2.8 percent; and AT&T's wireless operating income margin was 23.8 percent versus 25.5 percent in the year-earlier quarter. AT&T's second-quarter wireless OIBDA service margin was 38.3 percent, compared with 41.2 percent in the year-earlier quarter. (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues.) AT&T estimates that without increased acquisition costs associated with the iPhone 3GS launch, its second-quarter OIBDA service margin would have been more than 40 percent, in line with results for the second quarter of 2008 and the first quarter of 2009.


  • AT&T U-verse Growth. AT&T U-verse TV subscribers in service increased by 248,000 in the second quarter to reach 1.6 million, up more than 1 million over the past year. This growth reflects the high quality of the AT&T U-verse video experience, which offers a host of advanced features, including AT&T U-verse Total Home DVR, integrated voice and broadband service and at least 100 High Definition channels in all markets. U-verse TV's broadband attach rate continues to run above 90 percent, and its U-verse Voice attach rate was more than 65 percent in the second quarter. More than 75 percent of U-verse TV subscribers have a triple- or quad-play option from AT&T (adding broadband, wireline voice and wireless). AT&T's total video subscribers, which combine the company's U-verse and bundled satellite customers, reached 3.8 million at the end of the second quarter, representing 13.8 percent of households served.

  • Broadband Net Adds. Total AT&T U-verse broadband subscribers nearly tripled over the past year to reach 1.6 million, and growth in stand-alone broadband continues to be strong. These factors drove a substantial year-over-year improvement in net adds as AT&T's wireline broadband connections increased by 112,000 in the second quarter. This was up from net adds of 46,000 in the year-earlier second quarter, with both quarters reflecting typical seasonality. Total broadband connections, which include wireline subscribers and wireless customers with 3G LaptopConnect cards, increased by 209,000 in the second quarter to reach 16.9 million in service. In addition to AT&T's high-quality wireline and wireless options, broadband subscribers also benefit from access to AT&T's industry-leading Wi-Fi footprint, enabling customers to take advantage of broadband connectivity in more than 20,000 hot spots in the U.S. and in more than 100,000 hot spots around the world.

  • Consumer Revenue Connections. Combined, wireline consumer broadband and TV connections increased by 363,000 in the second quarter and 1.9 million over the past year. AT&T U-verse Voice connections increased by 176,000 in the quarter and 539,000 over the past year. These trends are reflected in a second-quarter sequential decline in consumer connections (retail voice, high speed Internet and video) that was nearly 40 percent smaller than the decline in the year-earlier quarter, with both quarters impacted by typical seasonality. AT&T had 46.3 million total consumer connections at the end of the second quarter, compared with 48.4 million at the end of the second quarter of 2008 and 46.8 million at the end of the first quarter of 2009. Total wireline consumer customer revenues were $5.4 billion in the second quarter, compared with $5.7 billion in the year-earlier quarter and essentially flat, down only $11 million, versus the first quarter of this year. This marked the company's smallest sequential decline in consumer revenues in seven quarters.

  • 17.0 Percent Growth in Wireline IP Data Revenues. AT&T posted its sixth consecutive quarter of mid-teens growth in total wireline IP data revenues, driven by expansion in AT&T U-verse services and growth in business products such as VPNs and voice over IP. Increased AT&T U-verse TV and broadband penetration with a greater number of triple- and quad-play customers drove 29.7 percent year-over-year growth in consumer IP revenues in the second quarter, and AT&T posted its sixth consecutive quarter of year-over-year growth in consumer wireline revenues per household, up 2.1 percent. Total wireline data revenues grew 5.2 percent to $6.6 billion, led by a 17.0 percent increase in revenues from IP-based services. IP services now account for 48.3 percent of AT&T's total wireline data revenues, up from 43.4 percent in the year-earlier second quarter and 39.3 percent in the second quarter of 2007.

  • Business Strategic Services. Revenues from the new-generation capabilities that lead AT&T's most advanced solutions -- including Ethernet, VPNs, hosting, IP conferencing and applications services -- grew 15.2 percent year over year. Progress in these areas reflects the strength of AT&T's network and its advanced product sets for business customers. Total second-quarter wireline business customer revenues -- which include results from enterprise, wholesale, government, education, medical and small/midsize customers -- totaled $10.6 billion versus $11.2 billion in the year-earlier quarter and $10.7 billion in the first quarter of this year, reflecting economic impacts.

Indonesia's Bakrie Telecom Selects NEC + Juniper for IP Upgrade

PT Bakrie Telecom, Tbk, one of the Republic of Indonesia's leading providers of fixed wireless access services, has selected NEC to upgrade its IP backbone. Under the contract, NEC will provide a full-turnkey based communications system that includes multi-service edge routers and equipment installation. NEC will be supplying Juniper's routing gear. Financial terms were not disclosed.

Lockheed Martin Develops Submarine Communications System

Lockheed Martin completed a key systems requirement milestone in its effort to deliver a Communications at Speed and Depth (CSD) capability for U.S. Navy submarines. The capability will enable secure, two-way communications between submarines operating below periscope depth and at tactical speeds with surface ships, aircraft and land-based assets. All classes of U.S. Navy submarines will be equipped with this transformational capability.

The Lockheed Martin-led industry team, which includes Ultra Electronics Ocean Systems and ERAPSCO, a joint venture between Sparton Electronics Florida, Inc. and Ultra Electronics - USSI, will deliver three types of two-way communications devices and associated submarine and shore equipment. Two of the devices - the tethered expendable communications buoy (TECB) Iridium system and the TECB-UHF system - are launched from submarines. The third is an acoustic-to-RF Gateway (A2RF) system that can be launched from submarines and aircraft.