Wednesday, July 21, 2010

Keynote Systems and OPNET Enter Alliance

Keynote Systems and OPNET Technologies announced a strategic alliance that focuses on maximizing the performance and availability of web applications for corporate enterprises and government agencies worldwide. Key initiatives of the alliance include technical collaboration and coordinated marketing and sales efforts that emphasize each company's best-in-class technologies.

The companies said their joint offering enables proactive, 24x7 visibility into the performance of critical applications from multiple geographic locations using a combination of real user traffic and synthetic transaction monitoring.

Keynote contributes synthetic transaction monitoring, alarms, and user experience monitoring from more than 2,500 locations outside the enterprise network, using the most popular browsers and mobile devices.

OPNET contributes real end user experience monitoring from within the enterprise network enabled by deep packet inspection, and tracing capabilities at the code level, enabled by low-overhead monitoring of thousands of metrics across all application tiers. OPNET's APM technology can distinguish between Keynote-generated synthetic traffic and real user traffic reaching production systems.

GENBAND to Resell Procera's DPI Platform

GENBAND and Procera Networks announced an OEM agreement under which GENBAND will incorporate Procera's PacketLogic DPI technology into its portfolio.

GENBAND also unveiled the P Series product family, which leverages Procera's PacketLogic advanced DPI technology to help operators decrease network congestion, eliminate malware or non-compliant applications and lay the foundation to deliver a wide range of new communication applications that significantly improve the subscriber experience and increase service providers' network efficiency.

Procera's DPI technology, integrated with GENBAND's data products on the ATCA-based GENBAND GENiUS™ platform, will deliver new broadband data solutions for enhanced business intelligence, traffic management and security protection, as well as enable new applications and business models.

"Integrating DPI technology into our product portfolio is an important part of our product strategy, as it further enables us to help service providers better understand and manage their networks, avoid costly network upgrades and create new revenue opportunities," said Charlie Vogt, President and CEO of GENBAND. "This agreement allows us to offer market-leading DPI products and enables future innovation as we integrate DPI capabilities on the GENBAND GENiUS platform to deliver best-of-breed mobile and fixed broadband data solutions."

Separately, Procera Networks announced that Charles D. Vogt, President and CEO of GENBAND, has joined Procera's board of directors. Prior to joining GENBAND in September 2004, Vogt was instrumental in the operational and financial growth of five standard-setting technology companies that either became public companies or were acquired.
  • In June 2010, following its acquisition of Nortel's CVAS business, GENBAND outlined its vision and roadmap for next generation and IP Multimedia Subsystems (IMS) networks. The product set is focused on IP multimedia applications, switching and security solutions based on open, standards-based architectures. Key elements of the product portfolio include: GENBAND GENiUS Platform -- Described as a cornerstone of the roadmap, the all-IP ATCA "GENiUS" will encompass GENBAND's application, call control, session border and security product lines. The GENBAND GENiUS platform will incorporate high-performance, high-density computing hardware and sophisticated Service Availability Forum (SAF) compliant middleware.

Hong Kong's CSL Selects ZTE for 1800 MHz/2600 MHz Dual-band LTE Network

Hong Kong's CSL Limited, which is a subsidiary of Telstra, has selected ZTE for its commercial 1800 MHz/2600 MHz dual-band LTE network. The dual-band LTE network will leverage CSL's spectrum position to provide customers with better coverage and enhanced penetration for a more satisfying communications experience.

The deployment follows the commercial LTE network construction contract signed by both parties, under which ZTE will provide CSL with an end-to-end LTE infrastructure solution and LTE devices. Financial terms were not disclosed.

The LTE terminals for CSL's LTE network will be deployed and developed by ZTE. The company said its Software Defined Radio (SDR) technology supports the distributed multi-mode and multi-band base stations, including re-farming of the 1800MHz spectrum for LTE use.

ZTE noted that, to date, it has deployed seven commercial LTE networks and built nearly 50 LTE trial networks.

Calix Reports Q2 Revenue of $72 Million

Calix reported Q2 revenue of $71.7 million, an increase of 50% from revenue reported for the second quarter of 2009 of $47.8 million. GAAP net loss for the second quarter of 2010 was $3.2 million, or pro forma $(0.09) per share, compared to a GAAP net loss of $8.8 million, or pro forma $(0.33) per share, reported for the second quarter of 2009 (assuming the conversion of preferred stock into common stock as of the beginning of the second quarter of 2009).

"Second quarter results were ahead of our expectations and represented strong growth and increased market momentum," said Calix president and CEO Carl Russo. "Communications service providers continued to leverage the increasing strength of our Unified Access portfolio to bring ‘Fiber Forward' in their networks. As we look into the third quarter, we see a clear path to achieving our goals, but we will continue to manage our business closely as we monitor the macroeconomic climate."

Riverbed Reports Q2 Revenue of $126.2 million, up 39% YoY

Riverbed Technology reported Q2 revenue of $126.2 million, up 12.3% compared to the first fiscal quarter of 2010 (Q1'10), and up 38.7% compared to a year earlier. Net income (GAAP) for Q2 was $6.6 million, or $0.09 per diluted share. This compares to GAAP net income of $1.1 million, or $0.01 per share, in Q1 and a GAAP net loss of $0.3 million, or $0.00 per share, for Q2 last year.

"Riverbed reported a record breaking second quarter as WAN optimization continues to be a strategic priority investment for businesses and governments around the world," said Jerry M. Kennelly, Riverbed president and CEO. "We executed well, achieving 39 percent year-over-year revenue growth with product sales increasing more than 40 percent over the prior year, marking our fourth consecutive quarter of product revenue acceleration."

PMC-Sierra Posts Q2 Revenue of $161 Million, up 30% YoY

PMC-Sierra reported Q2 revenues of $160.7 million, an increase of 30% compared to $123.2 million in the second quarter of 2009 and 5% higher than net revenues of $152.8 million reported in the first quarter of 2010. Net income (GAAP) was $30.1 million (GAAP diluted earnings per share of $0.13) compared with net income of $7.8 million (GAAP diluted earnings per share of $0.03) in the second quarter of 2009 and net income of $27.0 million (GAAP diluted earnings per share of $0.12) in the first quarter of 2010.

"In the second quarter of 2010, we benefited from continued growth in our Enterprise Storage and Fiber To The Home businesses," said Greg Lang, president and chief executive officer of PMC-Sierra. "We're also very pleased to have closed the asset purchase of Adaptec's channel storage business in the second quarter to accelerate our access to channel customers worldwide."

Infinera Posts Q2 Revenue of $111.4 Million, up 62% Year-Over-Year

Infinera reported Q2 2010 GAAP revenues of $111.4 million compared to $95.8 million in the first quarter of 2010 and $68.9 million in the second quarter of 2009. GAAP gross margins for the quarter were 42% compared to 39% in the first quarter of 2010 and 29% in the second quarter of 2009. GAAP net loss for the quarter was $9.6 million, or $(0.10) per share, compared to $20.0 million, or $(0.21) per share, in the first quarter of 2010 and $27.1 million, or $(0.28) per share, in the second quarter of 2009.

"I am delighted with the performance delivered by the Infinera team in the second quarter-- one of the strongest in the company's history," said Tom Fallon, president and chief executive officer. "We achieved new records for overall quarterly revenue and bookings, including increased shipments of tributary adapter modules, and we posted higher gross margins, achieved positive cash flow, and earned a profit on a non-GAAP basis."

Qwest Launches Heavy-Duty Internet -- 40 Mbps

Qwest is launching a "Heavy Duty" Internet service for residential customers. The Qwest network delivers, in selected areas, downstream connection speeds up to 40 Mbps and 99.9% reliability. Qwest includes a suite of backup, security and support services.

Nokia's Q2 Sales Hit EUR 10.0 billion

Nokia reported net sales of EUR 10.0 billion for Q2 2010, up 1% year-on-year and 5% sequentially (down 4% and up 2% at constant currency). Nokia Siemens Networks net sales were EUR 3.0 billion, down 5% year-on-year and up 12% sequentially (down 11% and up 10% at constant currency).

"Despite facing continuing competitive challenges, we ended the second quarter with several reasons to be optimistic about our future. For one, the global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong. We are also encouraged by the solid second quarter performance of our Mobile Phones business, helped by an improving line-up of affordable models," said Olli-Pekka KALLASVUO, Nokia's CEO.

Some highlights for the quarter:

  • Devices & Services net sales of EUR 6.8 billion, up 3% year-on-year and 2% sequentially (down 2% and 1% at constant currency).

  • Services net sales of EUR 158 million, up 7% sequentially; billings of EUR 295 million, up 29% sequentially.

  • Nokia total mobile device volumes of 111.1 million units, up 8% year-on-year and 3% sequentially.

  • Nokia converged mobile device (smartphone and mobile computer) volumes of 24.0 million units, up 42% year-on-year and 12% sequentially.

  • Nokia mobile device ASP (including services revenue) of EUR 61, down from EUR 62 in Q1 2010.

  • Devices & Services gross margin of 30.2%, down from 34.0% in Q2 2009 and 32.4% in Q1 2010.

  • Devices & Services non-IFRS operating margin of 9.5%, down from 12.2% in Q2 2009 and 12.1% in Q1 2010.

  • NAVTEQ non-IFRS net sales of EUR 253 million, up 71% year-on-year and 34% sequentially (up 69% and 30% at constant currency).

  • Nokia Siemens Networks non-IFRS operating margin of 1.7%, up from 0.1% in Q2 2009 and 0.6% in Q1 2010.

Verizon Business Provides Low-Latency Connectivity for NYSE Euronext

NYSE Euronext has chosen Verizon Business to provide extremely low-latency connectivity from customer premises into its SFTI access centers. This will which enable SFTI Optic wavelength low-latency access into their colocation racks in NYSE Euronext's new, state-of-the-art European Liquidity Center.

NTT Com Opens Data Centers in Vietnam and Singapore

NTT Communications will open premium data centers in Vietnam and Singapore and also launch a new service that enables enterprise customers to quickly establish seamless connectivity between core data centers under a major new strategy to expand business in the fast-growing Asian region.

The Ho Chi Minh City Data Center will launch as a premium data center in the city center in the third quarter of calendar 2011, joining the Thang Long Data Center in Hanoi as NTT Com's second data center in Vietnam. It will be designed, constructed and operated by Global Data Service JSC (GDS), a joint venture between NTT Com and the government-owned Vietnam Posts & Telecommunications Group (VNPT), the largest telecom in Vietnam.

The Singapore Serangoon Data Center will begin operating as a dedicated premium data center in Singapore in the first quarter of calendar 2012. The NTT Com-designed facility will be constructed and operated by NTT Worldwide Telecommunications Corp., which specializes in the procurement and management of data centers worldwide for the NTT Com Group.

The Inter-Data center Connectivity Service forms the second pillar of NTT Com's new strategy for expanding world-class ICT solutions and quality of service in Asia. The service will utilize a large-capacity backbone for high-speed, seamless rack-to-rack connectivity between core data centers in Singapore, Hong Kong, Japan and the United States. Applications for the Inter-Data Center Connectivity Service will be accepted from September. The service will be offered with guaranteed bandwidth (Type A) or best-effort delivery (Type B). Type B will be uniformly priced worldwide, while Type A pricing will depend on the user's requirements.

Alcatel-Lucent Introduces Microsoft Mediaroom IPTV for Smaller Markets

Alcatel-Lucent introduced a turnkey, compact IPTV solution, powered by Microsoft Mediaroom, for smaller regional operators service between 1,000 and 100,000 set-top-boxes. The solution offers the same capabilities as the company's full IPTV offering can be deployed with far fewer servers.

Alcatel-Lucent said the Hyper-V technology in Windows Server 2008 enables Microsoft Mediaroom to be run from a single rack of servers. Previously, a full-scale deployment required between 80 and 120 servers to support an IPTV market rollout.

For the new Integrated Solution for Microsoft Mediaroom, Alcatel-Lucent has also partnered with HP for a smaller and more energy-efficient footprint. The HP BladeSystem with HP Virtual Connect technology significantly reduces the cabling between servers. The solution has been pre-tested in Alcatel-Lucent's end-to-end IP Transformation
Center (IPTC) laboratories, resulting in reduced technical risk and improved time to market by as much as 30%.

This new Integrated Solution is designed to meet the cost requirements of regional communication service providers (CSPs). Cinergy MetroNet is the first customer to use the solution and will begin offering Alcatel-Lucent-powered IPTV services to six cities in Indiana, reaching approximately 50,000 potential customers beginning July 26, 2010.

ST-Ericsson Posts Revenue of $544 Million, Down 10% Sequentially

ST-Ericsson reported Q2 2010 net revenues of $544 million, down 10% sequentially from $606 million in Q1 2010 and down from $666 million a year ago.

"Our sales in the quarter continued to reflect the impact of our ongoing portfolio transition, combined with weaker-than-expected performance in Asia and some supply limitations. We are, however, encouraged by the progress made by the new portfolio with our customers. Our smartphone platform family has achieved design wins for multiple models with four customers, and we continue to see good traction for our high-value entry and modem portfolio," stated President and CEO, Gilles Delfassy.

AT&T Cites Fast Growth on Public Wi-Fi Network

AT&T handled 68.1 million connections on its public Wi-Fi network during Q2 2010 -- up from 15 million connections in the second quarter of 2009. Customers have made 121.2 million connections in the first half of 2010, already far surpassing the 85.5 million connections made in all of 2009. Wi-Fi usage has seen steady and significant growth each quarter, including a nearly 30 percent increase from the first to second quarter of 2010.

"The extraordinary growth in Wi-Fi usage is yet another indication of customers' reliance on mobile broadband and of the many benefits that venues receive by making Wi-Fi available to their customers and employees," said Angie Wiskocil, senior vice president, AT&T Wi-Fi Services.

Congressmen Propose Universal Service Reform Act of 2010

U.S. Representatives Rick Boucher (D-VA), Chairman of the Subcommittee on Communications, Technology, and the Internet, and Lee Terry (R-NE) introduced a bill aimed at modernizing the Universal Service Fund (USF) by reining in the size of the fund and promoting broadband deployment.

The Universal Service Reform Act of 2010 would restrict universal service support in areas where there is competition among providers of voice and broadband services. It would direct the FCC to adopt a competitive bidding process to determine which wireless carriers will receive universal service support. The measure would also direct the FCC to establish and implement performance goals for each universal service fund program and to determine the appropriate methodology for audits of universal service fund recipients.

The congressmen said their bill had the support of the American Public Communications Council, AT&T, CenturyLink, Frontier Communications, the Independent Telephone and Telecommunications Alliance, the National Cable and Telecommunications Association, the National Telecommunications Cooperative Association, OPASTCO, Qwest, USTelecom, Verizon, Vonage and the Western Telecommunications Alliance.

"The Universal Service Fund is broken. Consumers currently pay more than thirteen percent of long distance revenues into the fund and have at times this year contributed over fifteen percent. Our legislation is a comprehensive and forward-looking measure, which will control the spiraling growth of the Universal Service Fund while ensuring that sufficient universal service support is available on a technology-neutral basis to the carriers which rely on it to provide service. The measure will expand who pays into the Fund, control the growth of the Fund and modernize the Fund by allowing its use for the deployment of high-speed broadband service," said Boucher and Terry.

AT&T Posts Q2 Revenues of $30.8 billion, 3.2 Million iPhone Activations

Led by strong second-quarter growth in its wireless business, AT&T reported Q2 2010 consolidated revenue of $30.8 billion revenues from continuing operations, up $194 million, or 0.6 percent, versus the year-earlier period and up $278 million, or 0.9 percent, sequentially. Second-quarter 2010 net income attributable to AT&T totaled $4.0 billion, or $0.68 per diluted share, up 25.9 percent, including a $0.07 one-time gain from the exchange of Telmex Internacional stock for shares of América Móvil.

"We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver -- mobile broadband. I am excited by the opportunities ahead," said Randall Stephenson, AT&T chairman and chief executive officer.

Some highlights for the quarter:

Wireless Operations

  • AT&T posted an organic net gain in total wireless subscribers of 1.6 million, to reach 90.1 million in service.

  • Postpaid wireless churn was 1.01 percent, down from 1.07 percent in the year-earlier quarter, and total churn was 1.29 percent versus 1.48 percent in the second quarter of 2009 -- both record lows for the company.

  • Wireless data revenues -- from messaging, Internet access, access to applications and related services -- increased $936 million, or 27.2 percent, from the year-earlier quarter to $4.4 billion.

  • Total text messages carried on the AT&T network increased 41.7 percent year-over-year to 154 billion and multimedia messages more than doubled to 2.6 billion.

  • Postpaid subscriber ARPU increased 3.4 percent versus the year-earlier quarter to $62.63, despite including 1.6 million subscribers from the acquisition of properties from Verizon Wireless.

  • Postpaid data ARPU reached $21.07, up 18.6 percent versus the year-earlier quarter, and total postpaid subscriber revenues continued recent trends, with solid double-digit growth, reflecting increases in both voice and data.

  • The number of 3G postpaid integrated devices on AT&T's wireless network increased by 2.9 million to 29.7 million, an increase of 98.2 percent year over year and 10.8 percent sequentially. At the end of the quarter, 53.2 percent of AT&T's 67.0 million postpaid subscribers had integrated devices, up from 36.3 percent one year earlier. The average ARPU for integrated devices on AT&T's network is 1.7 times that of the company's nonintegrated-device base.

  • Preorder sales of iPhone 4 were 10 times higher than the first day of preordering for iPhone 3GS a year earlier. For the full second quarter, AT&T iPhone activations totaled 3.2 million, the most quarterly iPhone activations ever. Approximately 27 percent of those activations were for customers who were new to AT&T.

  • AT&T's wireless operating income margin was 28.8 percent versus 24.9 percent in the year-earlier quarter, and AT&T's wireless OIBDA service margin was 43.1 percent, up from 40.1 percent in the second quarter of 2009.

  • Wireless service revenues increased 10.3 percent to $13.2 billion in the second quarter, and total wireless revenues, which include equipment sales, were up 7.7 percent to $14.2 billion. Second-quarter wireless operating expenses totaled $10.1 billion, up 2.1 percent versus the year-earlier quarter, and wireless operating income was $4.1 billion, up 24.7 percent year over year.

Wireline Operations

  • Driven by strength in IP data services, in the second quarter, total revenue from residential customers totaled $5.4 billion, flat compared to the second quarter of 2009. Versus the first quarter of 2010, consumer wireline revenues increased 1.1 percent. This is the second consecutive quarter of sequential growth.

  • AT&T U-verse TV subscribers increased by 209,000 in the quarter to reach 2.5 million, up almost 60 percent over the past year. In the second quarter, the AT&T U-verse High Speed Internet attach rate continued to run above 90 percent, and about two-thirds of subscribers took AT&T U-verse Voice. More than three-fourths of AT&T U-verse TV subscribers have a triple- or quad-play option from AT&T. ARPU for U-verse triple play customers was nearly $160, up 13.8 percent year over year and 6.8 percent from the first quarter of 2010.

  • AT&T's U-verse deployment now reaches 25 million living units. Companywide penetration of eligible living units is more than 13 percent, and across areas marketed to for 30 months or more, overall penetration is more than 22 percent. AT&T's total video subscribers, which combine the company's U-verse and bundled satellite customers, reached 4.6 million at the end of the quarter, representing 17.9 percent of households served.

  • AT&T U-verse penetration drove 32.0 percent year-over-year growth in consumer IP revenues (broadband, U-verse TV and U-verse Voice). U-verse continues to drive a transformation in AT&T's consumer business, reflected by the fact that consumer IP revenues now represent 40.4 percent of AT&T's consumer wireline revenues, up from 30.6 percent in the year-earlier quarter.

  • In the second quarter, AT&T U-verse revenues exceeded $1 billion for the first time, more than twice the U-verse revenues in the second quarter of 2009.

  • AT&T posted a decline in total consumer revenue connections due primarily to expected declines in traditional voice access lines consistent with broader industry trends, somewhat offset by increases in U-verse TV and VoIP connections.

  • AT&T U-verse Voice connections increased by 183,000 in the quarter and 758,000 over the past four quarters. Total consumer revenue connections at the end of the first quarter were 44.3 million, compared with 46.3 million at the end of the second quarter of 2009 and 45.0 million at the end of the first quarter of 2010.

  • At the end of the second quarter, AT&T had 16 million total wired broadband connections, up 404,000 over the past year and down 92,000 from first-quarter 2010 levels.

  • AT&T posted its best year-over-year business revenue comparisons in five quarters -- reflecting continued solid sales performance and continued improvement in key economic metrics.

  • Total business revenues were $9.6 billion, a decline of 4.7 percent versus the year-earlier quarter. Business service revenues, which exclude CPE, declined 4.0 percent, the third consecutive quarter of improvement, and decreased slightly sequentially, down 0.7 percent.

  • Business IP data revenues grew 9.1 percent overall, the largest year-over-year increase in four quarters, led by growth in VPN revenues. This generated total business data growth of 0.3 percent, the first growth in this category in five quarters.

  • Global enterprise IP data revenues grew 10.8 percent. Approximately 70 percent of AT&T's frame customers have made the transition to IP-based solutions, which allow them to easily add managed services such as network security, hosting and IP conferencing on top of their infrastructures.

  • Gotal wireline revenues posted their smallest year-over-year decline in five quarters, down 3.7 percent, and were essentially flat sequentially. Second-quarter wireline operating expenses were $13.5 billion, down 4.3 percent versus the second quarter of 2009 and down 1.5 percent sequentially.

nTelos Selects Tellabs 7100 Optical Transport System

nTelos, a Virginia-based integrated telecommunications provider, has selected the Tellabs 7100 Optical Transport System (OTS) for its expanded fiber optic network to power SONET, Ethernet and 2.5G and 10G data services. The carrier already has an established base of Tellabs 1150 Multiservice Access Platforms. The service provider will continue to deploy the Tellabs 1150 platform as it expands IPTV and triple-play offerings for residential and business customers. Additionally, nTelos selected the Tellabs 1600-729 Optical Network Terminal to offer triple-play services in multi-dwelling units such as apartment complexes, senior living centers and office buildings. Financial terms were not disclosed.

nTelos, which recently acquired approximately 2,200 route miles of fiber from Allegheny Energy, delivers services in parts of Virginia, West Virginia, Pennsylvania, Kentucky, Ohio, Tennessee, Maryland and North Carolina.

Tuesday, July 20, 2010

ADVA Optical Posts Revenue of EUR 68.6 million, Ahead of Expectations

ADVA Optical Networking announced Q2 2010 revenues of EUR 68.6 million, slightly above guidance of between EUR 63 million and EUR 68 million, up a significant 18.0% vs. Q2 2009 at EUR 58.2 million and up 8.6% vs. EUR 63.2 million reported in Q1 2010.

IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill &
acquisition-related intangible assets, amounted to EUR 1.9 million or 2.8% of revenues in Q2 2010, within guidance of between 1% and 5% of revenues. This compares to EUR 1.1 million or 1.9% of revenues in Q2
2009 and EUR 2.7 million or 4.3% of revenues in Q1 2010.

"ADVA Optical Networking's revenues developed well in Q2 2010, due to incremental carrier infrastructure business in the Americas. While this clearly increases the robustness of our business mix, our growth in H2 2010 will very likely be driven by additional enterprise and Ethernet access business, resulting in a corresponding pick-up in profitability. Our Q2 2010 book-to-bill ratio is very strong, with significant order back-log for our industry-leading and highly innovative low-latency optical transport solution for the financial services industry. Additionally, the massive increase in mobile backhauling traffic driven by 3G and 4G mobile phones will have a major positive impact on our Ethernet access business. We create value for our customers - this will continue to translate into profitable growth," stated Brian Protiva, chief executive officer of ADVA Optical Networking.

Qualcomm Reports Revenues $2.7 Billion, Record MSM Shipment

Qualcomm reported quarterly revenue of $2.71 billion, down 2 percent year-over-year and up 2 percent sequentially. Net income was $767 million, up 4 percent year-over-year and down 1 percent sequentially.

CDMA-based Mobile Station Modem (MSM) shipments were approximately 103 million units, up 10 percent year-over-year and 11 percent sequentially.

"Our financial performance this quarter exceeded our prior expectations, driven by record MSM chipset shipments, favorable product mix and continued strong demand for 3G devices around the world," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Looking forward, we continue to see healthy CDMA-based device growth of approximately 23 percent in calendar year 2010, and are raising both our revenue and earnings guidance for the fiscal year."

McCain and Lieberman Propose Giving 700MHz D-Block Spectrum to First Responders

U.S. Senators John McCain and Joe Lieberman introduced a bill that would give the public safety community the so-called "D-Block" spectrum, rather than allowing the Federal Communications Commission (FCC) to auction this spectrum to a commercial carrier. The FCC is slated to auction the D-Block in 2011.

Specifically, the proposed First Responders Protection Act of 2010 would require the FCC to license the 700 MHz D-Block spectrum to the same "public safety broadband licensee" that holds the license for 10 MHz already allocated to public safety. This would place a single public safety licensee in control of all public safety spectrum in the 700 MHz band. The proposed bill would also direct $5.5 billion in revenue from the auction of a different block of spectrum to commercial interests to support the construction of towers, transmission facilities, and equipment for the new public safety network. Another $5.5 billion in auction proceeds would help cover recurring maintenance and operational costs.
  • In a statement, Verizon Wireless Vice President and General Counsel Steve Zipperstein voiced support for the proposed legislation: "As President Obama, the FCC and Congressional leaders work to bring an additional 500 MHz of spectrum to market for commercial innovation, open auctions will maximize dollars to the U.S. Treasury while providing the financial resources public safety will need to build out dedicated, interoperable wireless networks. By dedicating just 10 MHz of D-block spectrum - two percent of the 500 MHz total - to public safety, we give emergency service providers the resources they need to do their jobs right."