Wednesday, July 28, 2010

IP Infusion Moves Ahead with MPLS-TP

IP Infusion is preparing to add MPLS-TP (MPLS-Transport Profile) functionality to its ZebOS Network Platform software, which is widely used by network equipment manufacturers. The forthcoming MPLS-TP specification, which is expected to be finalized next year, will enable carriers to extend their core IP/MPLS network to the edge of mobile networks. MPLS-TP will enable automated maintenance, administration, provisioning and bandwidth management functions in the mobile aggregation network.

IP Infusion said its ZebOS MPLS-TP will preserve the operation, administration and maintenance (OAM) and management characteristics allowing a full end-to-end integration with existing and future IP/MPLS infrastructures. By using IP/MPLS and MPLS-TP from ZebOS, OEMs will be able to provide a consistent way of provisioning, troubleshooting and managing the networks from edge to edge.

MPLS-TP has been engineered specifically for transport networks. It is a reliable connection-oriented, packet-switched transport layer technology that is aligned with existing circuit-switched transport networking. MPLS-TP overlays on existing MPLS networks to provide:

  • Standardized control plane functionality

  • Advanced Quality of Service (QoS)

  • End-to-end Operation, Administration and Maintenance (OAM)

  • Reduced network equipment footprint

  • OAM monitors and drives protection switching

  • Support for existing management processes and work procedures

Initially, IP Infusion will be supporting MPLS-TP static capabilities. This will be updated to full MPLS-TP capabilities as the specification is completed.

IP Infusion has also added support for G MPLS to ZebOS, which can be used as a dynamic control plane with MPLS-TP so that the network sets up Label Switching Paths (LSPs) and PseudoWires (PWEs). GMPLS is based on the TE extensions to MPLS (MPLS-TE). It may also be used to set up the OAM function and define recovery mechanisms.

IBM Acquires Storwize for Real-time Data Compression

IBM will acquire Storwize, a privately held developer of real-time data compression technology. Storwize can compress primary data, or data that clients are actively using, of multiple types -- from files to virtualization images to databases -- in real-time while maintaining performance. This is in contrast to other storage compression technologies that only compress secondary or backup data. The companies claim the technology can reduce physical storage requirements by up to 80% Financial terms were not disclosed.

Storwize , which is based in Marlborough, MA, claims over one hundred customers, such as Mobileye, Polycom Israel, Shopzilla, Inc. and Sumitomo Mitsui Construction.

Dell'Oro: WLAN Market to Exceed $7 Billion by 2014

Overall WLAN market revenues are expected to surpass $7 billion by 2014, according to a newly released market forecast report by Dell'Oro Group. The enterprise segment and the small office, home office segments will account for a majority of that growth, with enterprise revenues expected to expand more than 100 percent over 2009.

"The proliferation of Wi-Fi enabled devices and users' desire for constant access are fundamentally changing how network administrators accommodate the devices," said Loren Shalinsky, Senior Analyst of Wireless LAN research at Dell'Oro Group. IT departments actively seek ways to allow these mobile users to connect to the network, regardless of which client device is used, increasing the requirements for wireless networks. Previously, IT departments often only allowed corporate owned or approved devices to connect. "The increase in the number of Wi-Fi enabled devices will contribute to growth in all three WLAN market segments, as mobile users want access to the same information, regardless of where they are located. US Government spending, through programs like the Smart Grid Investment grants, the Broadband Investment Program, and the E-rate program also will contribute to WLAN growth," added Shalinsky.

SF Bay Area to Build Public Safety 700 MHz LTE Net with Motorola

Public Safety Agencies within the San Francisco Bay Area have selected Motorola's Enterprise Mobility Solutions
to build a 700 MHz LTE system.

As part of the Bay Area Regional Interoperable Communications System (BayRICS) plan, the system will serve multiple agencies across the greater bay area, including San Francisco, Alameda County/Oakland, Contra Costa County, as well as the cities of Santa Clara and Sunnyvale. This broadband system provides an overlay to the existing Project 25 standards based IP cores and networks.

The Public Safety LTE system will be installed this year and is expected to be operational in early 2011. This first phase includes an LTE core, 10 sites and 330 Motorola Public Safety LTE user modems to provide Bay Area responders access to a host of media rich applications delivered over the new broadband network for increased public safety information sharing.

"This agreement represents a first step in realizing the BayRICS vision for a unified, state-of-the-art, mission critical voice and broadband multimedia network," said Laura Phillips, general manager of the Bay Area UASI. "Combining a Public Safety hardened LTE overlay network with our Project 25 voice and data networks, we have the opportunity to equip our first responders with the advanced communications tools they need to better protect themselves and our communities."

Boeing Completes Acquisition of Narus

Boeing completed its previously announced acquisition of Narus, a leading provider of real-time network traffic and analytics software used to protect against cyber attacks and persistent threats aimed at large IP networks. Its NarusInsight system provides deep insight into multiple layers of IP network traffic in real time, enabling applications such as network cyber protection, traffic and application monitoring and capture for legal intercept, and traffic management via policy enforcement.

At the time the deal was announced, Boeing said the acquisition follows a successful partnership with Narus and advances its strategy to offer world-class, scalable, state-of-the-art cybersecurity solutions. Financial terms were not disclosed.

Motorola Reports Improving Financials

Motorola reported Q2 2010 sales of $5.4 billion and GAAP earnings of $162 million, or $0.07 per share, which compares to GAAP earnings of $26 million, or $0.01 per share, in the second quarter of 2009. Motorola generated positive operating cash flow of $242 million, reduced long-term debt through a $500 million tender offer and ended the quarter with a total cash position of $8.3 billion. For Q3, Motorola expects earnings will range from $0.10 to $0.12 per share.

Mobile Devices segment sales were $1.7 billion, down 6 percent compared with the year-ago quarter. GAAP operating earnings were $87 million, which included income from a significant legal settlement of $228 million, compared to an operating loss of $287 million in the year-ago quarter. The non-GAAP operating loss was $109 million, compared to an operating loss of $239 million in the year-ago quarter.

Home segment sales were $886 million, down 13 percent compared with the year-ago quarter. GAAP operating earnings were $29 million, compared to $18 million in the year-ago quarter. Non-GAAP operating earnings were $57 million, compared to $49 million in the year-ago quarter.

Enterprise Mobility Solutions segment sales were $1.9 billion, up 10 percent compared with the year-ago quarter. GAAP operating earnings were $181 million, compared to operating earnings of $141 million in the year-ago quarter. Non-GAAP operating earnings were $292 million, compared to $225 million in the year-ago quarter.

Networks segment sales were $967 million, down 2 percent compared with the year-ago quarter. GAAP operating earnings were $178 million, compared to $92 million in the year-ago quarter. Non-GAAP operating earnings were $191 million, compared to $147 million in the year-ago quarter.

France Telecom Reaches 182 million Customers Accesses

The France Telecom Group reported consolidated revenues of 22.144 billion euros for the first half of 2010, down 2.2% on a comparable basis. EBITDA was 7.745 billion euros for a margin of 35.0%, with the erosion limited to 0.9 points on a comparable basis. The company confirmed its ambition for organic cash-flow generation for 2010 and 2011.

Capital expenditure was 2.114 billion euros in the first half, for a CAPEX rate of 9.5% of revenues
organic cash flow of 3.989 billion euros in the first half of 2010.

Some highlights:

  • A total year-on-year increase in the customer base of 3.8%, with 182 million customers at 30 June 2010

  • There was a 6.6% growth in the mobile customer base to 123.1 million customers at 30 June 2010, driven by Africa and the Middle East with a combined total of 34.0 million customers at 30 June 2010, an increase of 18.4% year on year.

  • There was a 2.2% growth in ADSL broadband subscribers (13.2 million customers) and rapid growth of digital TV with 3.6 million subscribers at 30 June 2010, a year-on-year increase of 34%

  • In France, broadband ARPU grew by 4.6% to 36.6 euros per month. The company's Pay TV customer base reached 1,687,000 vs 1,619,000 at the end of March 2010. Orange Cinema Series + Orange Sport had about 752,000 subs.

  • The company experienced stable first half 2010 revenues compared with the first half of 2009 excluding the effects of regulation, an improvement after the 0.9% downturn recorded in the second half of 2009:

  • There was a very strong growth of 8.0% in Africa and the Middle East driven mainly by the 29% increase from new operations.

  • Growth of operations in France (+0.3%, including +4.0% growth in mobile services), Spain (+2.5%, including +3.7% growth in mobile services), Poland (an improvement of 1.8 points to -3.4%, following -5.2% in the second half of 2009) and the other European countries (+0.9%), led by Belgium.

  • France Telecom will propose a dividend of €1.40 per share for the fiscal years 2010, 2011 and 2012, subject to a vote in favour of these payments by shareholders at the relevant Annual General Meetings.

BT Revenue Declines as Profit Increases

BT Group reported quarterly revenue of £5,006 million, down 4%, and adjusted EBITDA of £1,399 million, up 6%, as total group operating costs, before specific items, decreased by 6% to £4,424m, primarily due to reductions
in total labour costs and the delivery of other cost savings by all lines of business. Adjusted profit before tax was £446 million, up 17%.

"We have made an acceptable start to the year, delivering improved financial results while investing in the future of the business. In TV we are offering great value premium sports packages and can now compete on a more even playing field. We hit the first major milestone in our fibre roll out, passing over 1.5m premises, and we are now running at an average rate of around 100,000 premises passed every week. In BT Global Services we continue to win significant contracts due to our ability to deliver a world class service to our customers," stated Ian Livingston, Chief Executive.

For BT Retail, revenue decreased by 7%. This decline was largely due to the ongoing reduction in calls and lines revenue. Excluding the one-off revenue benefit last year, our Consumer revenues were down 6%. Business revenues were down 4%. Consumer ARPU increased to £314, up £5 over the previous quarter, principally due to increasing take up of broadband. Broadband net additions were 96,000 in the quarter and BT's retail market share was 40%. Since the launch in January of BT's "Infinity" fibre based broadband service has seen order levels accelerate.

For BT Wholesale, revenue declined by 10%. Excluding the £44m reduction in low margin transit revenue, primarily due to mobile termination rate reductions, revenue declined by 2%. This decline reflected in part continued reductions in broadband and circuits revenue of £69m. Managed network services (MNS) revenue grew by 19% to £199m and now represents 24% of external revenue (Q1 2009/10: 19%). 42% of external revenue is now underpinned by long term contracts (Q1 2009/10: 34%).

For Openreach, revenue declined by 8%. Growth in Ethernet volumes stimulated by lower prices and other connection revenues offset the continued migration from WLR to lower priced MPF. Net operating costs reduced by 17% partly due to changes in the internal trading model offsetting the revenue decline and lower leaver costs. Capital expenditure increased by 16% due to the increased investment in the fibre roll.

AT&T Selects Alcatel-Lucent, Cisco, and Juniper for IP/MPLS/Ethernet/EPC Domain

AT&T has selected Alcatel-Lucent, Cisco, and Juniper Networks as its Domain Suppliers for IP/MPLS/Ethernet/Evolved Packet Core equipment needed for its industry-leading IP-based network. Financial terms were not disclosed.

"After conducting an extensive review of multiple IP/MPLS/Ethernet/Evolved Packet Core equipment suppliers, we're pleased to extend long-standing relationships with Alcatel-Lucent, Cisco, and Juniper Networks," said Tim Harden, President of AT&T's Supply Chain and Fleet Operations organization. "AT&T's selection of these three industry-leading suppliers as Domain Suppliers showcases our ongoing commitment to meet the quality expectations of our customers today, while preparing for the demands of tomorrow."

AT&T said its Domain Supplier program, launched in September 2009, facilitates a more collaborative relationship with its equipment and software suppliers. The company noted that its network carries 18.7 petabytes of IP and data traffic on an average business day, the equivalent of transporting the entire digitized Library of Congress more than 250 times. This traffic volume has doubled over the last four years. The network includes more than 880,000 route miles of fiber-optic cable.

AT&T in January announced total 2010 capital expenditures are expected to be between $18 billion and $19 billion, a level framed by the expectation that regulatory and legislative decisions relating to the telecom sector will continue to be sensitive to investment.

Tuesday, July 27, 2010

Portugal Telecom Selects Alcatel-Lucent's HLN Strategy

Portugal Telecom has awarded a three-year agreement to Alcatel-Lucent to extend the capacity of its IP/MPLS network to support existing and new services to its growing customer base. PT will evolve its converged IP/MPLS network based on Alcatel-Lucent's High Leverage Network (HLN) architecture.

The architecture will leverage an all-IP network layered with embedded intelligence and application awareness that improves the end-users experience as well as PT's ability to bring new services to market more efficiently. The platform will also enable Portugal Telecom to implement 100 Gigabit Ethernet, L2/L3 mobile backhaul and IPv6 services.

Specifically, Alcatel-Lucent will enhance PT's use of the 7750 Service Router, managed by the 5620 Service Aware Manager, to become the converged service edge for consumer Internet, IPTV and VoIP services, Carrier Ethernet VPNs services for enterprises and mobile backhaul services. The new, distributed architecture locates the IP service edge functionality at the edge of networks, close to subscribers, providing a significant increase in bandwidth per subscriber.

HomePlug AV2 Spec to Support Gigabit-class Powerline

The HomePlug Powerline Alliance announced major advancements by its Technical Working Group (TWG) on the HomePlug AV2 specification, which will be fully interoperable with current HomePlug AV and future HomePlug Green PHY and IEEE 1901 products.

Key powerline enhancements the TWG selected for inclusion in the developing HomePlug AV2 specification include:

  • MIMO (Multiple-Inputs Multiple-Outputs) offers significant increases in link throughput and range without requiring additional spectrum or transmit power. MIMO allows the data signal to propagate from multiple outputs to multiple inputs implementing advanced transmission coding schemes which will increase capacity and enable more reliable and expanded home coverage. This is similar to the 802.11n and 802.16e which use MIMO solutions with wireless products to extend performance.

  • Increased MAC (Medium Access Control) efficiencies that lower overhead and expand throughput.

  • Increased operating spectrum: the specification will expand operations into an additional spectrum, up to an order of magnitude beyond current powerline technology. This increased bandwidth will further improve performance.

  • Extending coverage via repeating and routing technology in networks of three or more nodes

The HomePlug AV2 specification is expected to deliver a 5x increase in performance over current HomePlug AV solutions at the application layer to offer significant improvements in whole home coverage to guarantee reliable delivery of throughput intensive applications such as multiple streams of 1080p HD video (and emerging 3D and 4K HD) broadband Internet, Internet gaming and security camera video over existing electrical wiring. These advancements are necessary to meet the increasingly demanding Quality of Experience (QoE) requirements of service providers and consumer electronics companies.

Pacific Crossing Boosts Capacity

Pacific Crossing, which is a division of NTT Communications, has again boosted the capacity of its PC-1 trans-Pacific undersea cable network and expanded its Ethernet service capability.

The newly added capacity will come into service at the end of July. A third upgrade of the PC-1 system is scheduled for later in 2010.

Following its upgrade of the PC-1 system in 2008, which pushed the lit capacity of the cable over the 1Tbps mark, Pacific Crossing has now added additional wavelengths to boost trans-Pacific capacity further to more than 1.3Tbps. The upgrade has been implemented seamlessly on the existing PC-1 infrastructure, with no interruption to customer services and circuits.

Dell'Oro: Ethernet Microwave Market Forecast

The point-to-point microwave equipment market is forecast to grow 30 percent over the next five years to $6.6 billion in 2014, according to a newly published report by Dell'Oro Group.

"Mobile data traffic is expected to nearly double each year in the near future and by 2014, the vast majority of traffic backhauled from cell sites will be data packets and not voice circuits," said Jimmy Yu, Sr. Director of Microwave Transmission research at Dell'Oro Group. "We believe this will drive demand for Ethernet microwave systems that allow mobile operators to scale their backhaul network beyond a few megabits of T1s and E1s to adding a full fast Ethernet. This migration to Ethernet will likely also give operators an opportunity to create a more efficient data backhaul network that takes advantage of statistical multiplexing and quality of service that prioritizes traffic according to its type. We, therefore, expect that combined Packet and Hybrid Microwave, both of which switch and transmit native Ethernet, will become 95 percent of the total radio transceiver shipments by 2014," Yu added.

Korea's LG U+ Teams with Microsoft on Cloud Services

LG U+, the new Korean telecommunication service provider formed by the merger of LG Telecom, LG Dacom and LG Powercomm, will partner with Microsoft to offer a broad range of cloud services. By leveraging Microsoft Online Services, LG U+ will be able to deliver enterprise-class solutions and rich user experiences to small and midsize enterprises and consumers through its Smart Workplace offering. Additional services contemplated under the alliance include collaboration on cloud services across three areas, software as a service, platform as a service and infrastructure as a service.

ARRIS Posts Q2 Revenue of $280 Million

ARRIS reported Q2 2010 of $280.4 million, up approximately $1.9 million as compared to second quarter 2009 revenues of $278.5 million, and up $13.7 million as compared to first quarter 2010 revenues of $266.7 million. Through the first half of 2010 and 2009, revenues were $547.1 million and $532.0 million, respectively. GAAP net income in the second quarter 2010 was $0.15 per diluted share, as compared to second quarter 2009 GAAP net income of $0.18 per diluted share and the first quarter 2010 GAAP net income of $0.15 per diluted share. Year to date, GAAP net income was $0.30 per diluted share in 2010 as compared to GAAP net income of $0.28 per diluted share in 2009.

"The second quarter closed in line with our expectations and I continue to believe that we are well positioned for long-term growth," said Bob Stanzione, ARRIS Chairman & CEO. "I am particularly encouraged by our progress related to future products that will enable hybrid and full IP video architectures that our customers are now exploring."

Meru Networks Reports Rapid Sales Rise

Meru Networks, which supplies enterprise WLAN solutions, reported Q2 2010 revenue of $20.9 million, up 22% from $17.1 million in the second quarter of fiscal year 2009. Products and services revenues for the second quarter of fiscal year 2010 were $18.0 million, up 47% from the $12.3 million reported in the second quarter of fiscal year 2009.

Net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $0.9 million for the second quarter of 2010, or $0.05 per fully diluted share, compared to a net loss of $2.3 million, or net loss per share of $6.20, for the same period of fiscal year 2009.

"I am pleased with our second quarter results, which I believe demonstrate the continuing demand we're seeing from our key markets as well as our proven ability to execute," said Ihab Abu-Hakima, president and chief executive officer, Meru Networks.

GENBAND Adds Automated Cutover to Softswitch

GENBAND introduced a new Automated Cutover capability to its C15 Compact Softswitch that eliminates downtime normally associated with network transitions to IP. The Automated Cutover capability is an embedded software utility that equips services providers to migrate legacy networks to IP without having to shut-down their network or perform time-consuming flash cutovers, which can result in loss of service for end users. It enables service providers to migrate multiple Central Offices on a site-by-site, frame-by-frame and line-by-line basis. During the network migration, inbound and outbound calls continue to route to the appropriate legacy TDM or C15 IP softswitch automatically.

NetLogic Posts Q2 Revenue of $95 Million

NetLogic Microsystems reported Q2 revenue of $95.0 million, a 10.2 percent sequential increase from $86.3 million for the first quarter of 2010 and a 192 percent increase from $32.5 million for the second quarter of 2009. Second quarter 2010 net loss (GAAP) was $4.8 million or $0.08 per diluted share. By comparison, GAAP net loss was $2.2 million or $0.05 per diluted share for the second quarter of 2009.

"This is a very exciting time for us," said Ron Jankov, president and CEO. "When we announced the merger with RMI last June, we were committed to not only executing on both companies' highly ambitious technology roadmaps, but also to leveraging each company's best-in-class technologies to offer our customers highly valuable and unique system-level solutions for communications networking. "

Telefónica gains control of Brazil's Vivo

Telefónicareached an agreement with Portugal Telecom to purchase 50% of Brasilcel held by the Portuguese operator.

The entity to result from the Telesp-Vivo business combination, to which Telefónica will bring its extensive track record in integrating acquisitions and capturing synergies, will be the largest integrated operator in Brazil by all key metrics: by customer numbers (69.2 million to March 2010), revenue/OIBDA (11.8 and 4.1 billion euros in 2009, respectively) 1, and profitability (OIBDA margin 2009: 35%).

Chairman of Telefónica, Cesar Alierta, said of the outcome: "We are delighted to have reached this agreement with Portugal Telecom which benefits both companies shareholders. It is a unique value creation opportunity. Vivo leads the Brazilian mobile telephony market, a market to which Telefónica is strategically committed."

Sprint Nextel Adds 111K Subscribers in Q2

Sprint gained a total of approximately 111,000 net subscribers in the quarter. The company cited steady demand for smartphones like HTC EVO 4G and BlackBerry Curve combined with its best ever postpaid churn of 1.85 percent for the positive net postpaid subscriber growth of 136,000 on the CDMA network and 285,000 for the Sprint brand. The company also posted its best ever year-over-year quarterly net postpaid subscriber loss improvement of 763,000. The company achieved its best year-over-year quarterly improvement in postpaid gross subscriber additions in more than five years.

Sprint posted second quarter consolidated net operating revenues of approximately $8.0 billion, a net loss of $760 million and a diluted loss per share of 25 cents, which includes a non-cash $302 million (10-cent-per-share charge) increase in valuation allowance on deferred tax assets resulting from net operating loss carryforwards generated during the second quarter, for a pro forma diluted loss per share of 15 cents. The company generated $709 million of Free Cash Flow* in the quarter, and maintained a strong liquidity position with approximately $4.3 billion in cash and cash equivalents at the end of the quarter after retiring all 2010 note maturities of $750 million in the quarter.

"Our intense focus for the past ten quarters on improving the customer experience, strengthening our brands, and generating cash are paying off," said Dan Hesse, Sprint Nextel CEO. "With strong cash flow, stable OIBDA and widespread third-party recognition for the improvements we're making in the customer experience, which in turn strengthens our brands, we feel we can confidently improve our subscriber forecasts for the second half of 2010 and deliver positive total net wireless subscriber additions for the remainder of the year."

Sprint 4G is now available in 43 markets serving approximately 51 million people. Its partner, Clearwire, expects coverage to reach up to 120 million people by the end of 2010 including deployments in Boston, New York, San Francisco and Washington, D.C.