Tuesday, March 30, 2010

Covad and MegaPath to Merge

Covad and MegaPath announced plans to merge into a single company. Pending federal and state regulatory approvals, the transaction will create one of the largest managed service local exchange carriers (MSLEC) in the U.S. Financial terms were not disclosed.

Covad provides a wide range of access and hub aggregation services, including Ethernet, DSL, and T1. It operates a nationwide IP/MPLS network and its network footprint encompasses some 4,400 central offices (COs) in 45 states and 240 metropolitan statistical areas. Covad wholesale partners include leading providers such as AT&T, Verizon Business, and Sprint. The company is based in San Jose, California.

MegaPath provides managed IP communications services across North America. It also operates a nation-wide MPLS backbone with POPs in 30 major cities MegaPath is based in Costa Mesa, California.

"We will continue to provide innovative services and superior automation to our wholesale partners, and by adding MegaPath's leading managed service offerings, we will further enhance the value we deliver to the market," said Pat Bennett, CEO of Covad , who will continue as Chief Executive Officer.

The combined businesses will be owned by Platinum and MegaPath investors.

China Mobile and ZTE Test TD-LTE indoor MIMO

China Mobile and ZTE have completed a TD-LTE indoor MIMO networking performance test in Beijing. The test yielded TD-LTE performance evaluation data on indoor single/dual path cell throughput. The testing also produced data for indoor multi-UE circumstances. Performance results were not disclosed.

ZTE said the goal of this experiment was to evaluate construction of indoor LTE distribution systems, including whether a two-path system can achieve significantly better performance than a single path system under different scenarios and user distributions. The testing found that, under diversified testing circumstances, a TD-LTE two-path indoor distribution system downlink throughput does show dramatic improvements compared with single path indoor distribution system.

ZTE and China Mobile plan to jointly deploy a TD-LTE network for the Expo News Centre at the World Expo Shanghai 2010.

NTT Com and Boingo Set Wi-Fi Roaming Agreement

NTT Communications Corporation and Boingo have enacted a reciprocal Wi-Fi roaming agreement that takes effect today. NTT Com HOTSPOT customers are able to use some 70 Boingo wireless local area network (WLAN) access points for data roaming in airports and other locations of the United States, Canada and the United Kingdom, while Boingo retail customers visiting Japan gain access to NTT Com HOTSPOT WLAN access points, both beginning April 1. In Japan, Boingo retail customers can roam NTT Com's broad nationwide WLAN network covering hotels, restaurants, coffee shops, airports, train stations and even selected railcars on major business routes.

Tranzeo Wireless to Acquire Aperto Networks

Tranzeo Wireless Technologies Inc. (TSX:TZT) has agreed to acquire Aperto Networks. Under the deal, Tranzeo will issue common shares to the stockholders of Aperto based on a US$5 million base consideration amount, as adjusted for liabilities and cash of Aperto at closing. Both companies are suppliers of wireless broadband and WiMAX communication systems. Tranzeo is based in British Columbia, Canada, while Aperto is located in Milpitas, California.

"Acquiring Aperto immediately transforms Tranzeo into a market leading complete solutions provider for major telecommunications operators while still supplying product to Tranzeo's existing wireless Internet service providers," said Jim Tocher, President and CEO of Tranzeo.

The companies said Aperto's current backlog of all purchase orders is US$8.3 million. This will be added to Tranzeo's current backlog of US$32.7M.http://http://www.apertonet.com
  • Founded in 1999, Aperto Networks was an initial lead contributor to IEEE 802.16 and the ETSI-BRAN standards.

Verizon and IBM Offer Cloud-Based Managed Data Protection

Verizon and IBM have teamed up to deliver the Managed Data Vault - a new private cloud service that provides secure, quick and reliable daily backups, and fast recovery of enterprise information. The service will automatically transfer data from a client location to a specially designed off-site data center via Verizon's secure high-speed private network. IBM supplies backup infrastructure and management capabilities. The service is aimed at the financial, retail and health care services markets.

This solution will initially be available to Verizon and IBM clients in the New York City metropolitan area.

Verizon Provides Mobile Device Mgt for Government Agencies

Verizon has begun providing a carrier-neutral Mobility Management for Government (MMG) service to help federal agencies protect physical and intellectual assets for mobile users.

Specific components of the hosted MMG solution include:

  • Mobile Security Shield - Anti-virus and spam security protection for mobile PDAs and mobile operating systems.

  • Mobile Virtual Private Network - The VPN is compliant with FIPS 140-2 and provides secure connectivity back to agency applications.

  • Mobile Infrastructure and Device Management - Manages mobile devices for the agency, delivering tools, applications and data to employees, where and when required, while creating and enforcing flexible mobile policies across the agency.

  • Wireless Expense and Asset Management System - Tracks mobile assets, usage and spending, delivering consolidated and departmental reports.

Verizon MMG, which is an expansion of the company's Managed Mobility portfolio for enterprises, is available immediately under the U.S. General Services Administration's Washington Interagency Telecommunications System (WITS 3) contract and as an IT solution using the Alliant contract. The solution complies with the Federal Information Processing Standard (FIPS) Publication 140-2 and applicable Security Technical Implementation Guide security guidelines for federal agencies.

Cisco Releases "Valet" Home Wireless Gear

Cisco introduced a new line of home WiFi routers aimed at simplifying the set-up of home networks. A USB thumb drive is provided to automate the configuration of the network. Valet also provides new levels of parental controls, as well as guest access. Pricing starts at $99.

Huawei Reports 19% Sales Growth for 2009

Huawei Technologies Co. reported sales revenue of CNY 149.1 billion (approx. US$21.82 billion) worldwide for the fiscal year ended December 31, 2009, with a 19% rise year on year. Net profit was CNY 18.3 billion, with a net profit margin of 12.2%; it had CNY 21.7 billion net cash flow from operating activities. The company held CNY 29.2 billion (approx US$427 billion) in cash as of December 31, 2009.

Huawei is forecasting a 20% growth in sales revenue in 2010, driven by global broadband, particularly, mobile broadband.

Bharti Airtel Awards US$1.3 Billion Deal to Ericsson

Bharti Airtel has awarded a US$1.3 billion network expansion contract to Ericsson. Ericsson will expand and upgrade Airtel's network in 15 of India's 22 telecom circles. Under the deal, Ericsson will supply its 2G/2.5G radio base stations, circuit and packet core, microwave transmission and Intelligent Network. In addition, Ericsson will ensure that Bharti Airtel's core and transport network is 3G-ready in order to reduce time to market and enable the fast rollout of 3G services at a later date.

Ericsson Completes Acquisition of Nortel's GSM Business

Ericsson completed its acquisition of Nortel's North American GSM business. The acquisition includes the transfer of important GSM business with North American operators and further strengthens Ericsson's ability to serve North America's leading wireless operators. More than 350 employees from Nortel will be integrated in the Ericsson group over the coming months. The deal was first announced in November 2009.

Ericsson's bid for Nortel's GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the two transactions Ericsson is acquiring certain assets of Nortel's GSM business in North America and Kapsch is acquiring certain assets outside North America.

"The addition of Nortel's skilled GSM experts adds additional depth to Ericsson's newest business unit," said Rima Qureshi, head of Ericsson's CDMA unit. "The CDMA team acquired from Nortel late last year has built a strong foundation already, and this new acquisition places us in a great position to support our growing list of North American and International customers."http://www.ericsson.com
  • In 2009, Ericsson also acquired Nortel's CDMA and LTE assets in North America.

MERU Soars in IPO

Shares in Meru Networks, which specializes in enterprise wireless LAN solutions, soared 28% in their first day of trading on Nasdaq (MERU). The company offered 4,386,784 common shares at a price to the public of $15.00 per share. Trading on Wednesday closed at $19.17.

Altera's FPGAs Interoperate Directly with 40G Avago Optical Modules

Altera Corporation announced the interoperability of its Stratix IV GT FPGAs with 40G Quad Small Form-Factor Pluggable (QSFP) optical modules from Avago Technologies providing 40 Gbps data rates across a single link of fiber-optic cable.

QSFP is the next-generation hot-pluggable interface for high-performance switches, routers, servers and host bus adapters used in computing and telecommunication applications. The interface is currently the industry's most compact, 4-high-speed-channel, Z-axis pluggable interface supporting data rates up to 40 Gbps (4 lanes x 10 Gbps).

Altera's Stratix IV GT FPGA's 11.3-Gbps transceivers connect directly to the 40G QSFP optical module without the need of bridging chips.

Sprint Offers "Satisfaction Guaranteed or Money-Back"

Sprint introduced a full money-back satisfaction guarantee for new customers. The Sprint Free Guarantee gives any customer opening a new line of service the chance to try Sprint for 30 days. If a customer isn't completely satisfied, they can get reimbursed for the device purchase and activation fee, get the early termination fee waived, get a full refund for service plan monthly recurring charges incurred and get all associated taxes and Sprint surcharges associated with these charges waived. In addition, Sprint will waive the restocking fee for new customer exchanges as part of this policy.

CommScope Shuts Manufacturing in Omaha

CommScope will discontinue operations at its Connectivity Solutions Manufacturing subsidiary in Omaha, Nebraska and relocate manufacturing to one or more existing CommScope facilities in North America. The company expects annualized pretax savings of approximately $18 million to $22 million upon completion of relocation and closure of the facility in late 2011.

The company currently employs approximately 400 people in its CSMI subsidiary in Omaha, all of whom will be affected by the manufacturing relocation. Another 70 employees in non-manufacturing corporate functions, who currently are housed in the CSMI facility, are expected to relocate to a new Omaha location prior to the plant's closing.

Monday, March 29, 2010

3Com Reports Quarterly Revenue of $346 Million, up 6.5% YoY

3Com reported quarterly revenue of $345.9 million, compared to revenue of $324.7 million in the corresponding period in fiscal year 2009, a 6.5 percent increase. All regions delivered double-digit revenue growth over the same fiscal year 2009 quarter, except China. Total revenue in our China based operations was down 1.3 percent from the same prior year period, primarily the result of a 77.9 percent decline in sales to Huawei, which were $12.4 million in the quarter. China direct sales were $165.9 million in the quarter, a 29.7 percent increase over the corresponding prior year period.

3Com's gross margin was 60.4 percent in the third quarter of fiscal year 2010, compared with gross margin of 57.2 percent in third quarter of fiscal year 2009. On a non-GAAP basis, gross margin was 60.5 percent in the third quarter, compared with 57.4 percent in the same prior year period.

3Com's operating profit margin was 6.5 percent in the quarter, up from 0.5 percent in the corresponding prior year period. On a non-GAAP basis, operating profit margin was 13.9 percent in the third quarter, compared with 11.3 percent in the third quarter of the prior year.

Net income in the quarter was $41.4 million, or $0.10 per diluted share, compared with net income of $1.9 million, or $0.00 per diluted share in the third quarter of the prior fiscal year. On a non-GAAP basis, third quarter fiscal year 2010 net income was $67.2 million, or $0.16 per diluted share, compared with net income of $49.1 million, or $0.13 per diluted share, in the corresponding prior year period.

Mformation Teams with Amdocs on Mobile Device Customer Care

Mformation Technologies, which supplies advanced mobile device management (MDM) solutions to wireless operators, has entered into a partnership with Amdocs to deliver mobile device support that is integrated with Amdocs CES customer management solutions. This enables customer-care organizations within mobile operators to have full real-time device visibility and access to critical subscriber and device information from one central customer care console. With this combined solution, mobile device visibility and diagnostics is seamlessly integrated into the workflow of the Amdocs customer management solution.

"Enabling customer care personnel in call centers to support mobile devices more quickly and effectively is a growing priority for mobile operators. Partnering with Amdocs combines the market-leading customer management solution with the most advanced market-leading mobile device technology, creating a winning combination that will significantly improve the experience of customers when they urgently need technical support," said Rowan Scranage, SVP of Business Development and Strategy, Mformation.

Telefónica Spain to Implement 42 HSPA+ with NSN

Telefónica Spain has selected Nokia Siemens Networks to upgrade its 3G radio network to HSPA+, in preparation for the next generation of mobile communications.
The three-year project will enable Telefónica Spain to increase data download speeds from 7.2 Mbps to 42 Mbps. The project will use Nokia Siemens Networks' LTE-ready Flexi Base Stations. In addition, Nokia Siemens Networks will provide its NetAct network management system to efficiently monitor, manage and optimize Telefónica's network. The modernization project also foresees the possibility of providing 3G and GSM access simultaneously using the same 900 MHz band of radio spectrum, once the regulatory authorities allow it. Financial terms were not disclosed.

XO Picks NSN's Optical Transport for 40G Network

XO Communications is deploying Nokia Siemens Networks' hiT 7300 DWDM 40 Gbps platform to provide a high-capacity, cost-efficient and scalable transport system. NSN said its platform was chosen for its high degree of modularity and because it is based on a common hardware platform, which saves staff training time and OPEX, and reduces the number of spare parts needed to be stocked. Financial terms were not disclosed.

In addition to the hiT 7300, Nokia Siemens Networks will supply its leading Transport Network Management System (TNMS) to optimize the network's operations through centralized control and supervision. The agreement also includes Nokia Siemens Networks' professional services for network implementation and care. Financial terms were not disclosed.

Taiwan's Chunghwa Telecom Added 568,000 FTTx Subscribers in 2009

Taiwan's Chunghwa Telecom recorded a strong growth in FTTx subscriptions in 2009, with 568,000 net additions bringing its total to 1.64 million subscribers. ADSL subscribers decreased by 575,000 to 2.67 million. By the end of 2009, the number of ADSL and FTTx subscriptions with a service speed greater than 8 Mbps reached 2.0 million, representing 46.8% of total broadband subscribers, compared to 36.9% at the end of 2008.

In the mobile domain, as of December 31, 2009, Chunghwa had 9.27 million mobile
subscribers, an increase of 3.6% compare to 8.95 million at the end of 2008. Chunghwa had 1.17 million net additions to its 3G subscriber base during 2009, recording a 32.9% year-over-year growth, bringing the total to 4.73 million as of December 31, 2009.

Financially, Chunghwa reported Q4 2009 total consolidated revenue increased by 2.6% to NT$51.1 billion. Mobile communications business revenue increased by 1.6% to NT$21.9 billion. Internet business revenue increased by 9.5% to NT$6.4 billion. Net income totaled NT$10.6 billion, representing an increase of 24.6%. Basic earnings per share (EPS) increased by 24.6% to NT$1.09.

IBM to Build Cyber Security System for the U.S. FAA

The U.S. Federal Aviation Administration (FAA) has selected IBM for an R&D project aimed at protecting the nation's civilian aviation system from the ever-growing threat of cyber attacks. IBM researchers and cyber security experts will design and build a prototype security system capable of scaling to accommodate the FAA's high-speed networks.

IBM said its prototype system will go beyond traditional security approaches of encryption, firewalls, intrusion-detection devices and anti-virus software. Not only will the flexible model be designed to look retrospectively at event occurrences and system compromises, it will be able to correlate historical traffic patterns with dynamic data from monitors, sensors and other devices capturing information about network traffic and user activity in real time.