Wednesday, August 11, 2010

Video: Ericsson Perspective on Mobile Data Surge

Video interview with Håkan Eriksson, Chief Technology Officer, Ericsson, discussing the surge in mobile data traffic and prospects of managing this growth going forward.

Ericsson: Mobile Data Traffic Surges 171%

Based on data provided by its major carrier customers, Ericsson calculates that the volume of data traffic carried across mobile networks nearly tripled (up 171%) in Q2 2010 compared to a year earlier, growing more than 10 times faster than voice. Only about 10% of the global mobile customer base are enrolled in mobile broadband plans.

According to Ericsson statistics, global measured mobile data traffic stands at nearly 225,000 terabytes per month as of the second quarter of 2010.

During December 2009, mobile data surpassed voice on a global basis. The crossover occurred at approximately 140,000 Terabytes per month in both voice and data traffic.

There are regional variations in traffic patterns. In Asia/Pacific, there is still more voice traffic than data traffic. Europe leads the way in mobile data traffic, in part because of earlier 3G rollouts. According to the GSMA, the total mobile broadband subscribers in key European markets will rise from about 22 million at the end of 2009 to over 43 million in 2011.

Other ITU estimates have calculated that the overall number of mobile users worldwide has surpassed five billion.

"The growth and benefits of mobile broadband are undeniable," said Ericsson's Senior Vice President, Chief Technology Officer & President of Ericsson Silicon Valley Håkan Eriksson. "The business model for mobile broadband is becoming one of increasing profitability and competitive differentiation through superior quality of service. Operator's focus on end-to-end converged IP networks is key to addressing the dramatic traffic growth, while reducing costs and improving the user experience. For consumers, mobile broadband is transforming the way we communicate and prosper as a society."

Juniper Contributes to Internet2

Juniper Networks will make a $2.5 million cash donation to Internet2 in support of the development of a new, nationwide 100 Gbps network serving U.S. community institutions.

Internet2, with partners National LambdaRail, Northern Tier Network Consortium and Indiana University were recently awarded a federal stimulus grant from the National Telecommunications and Information Administration (NTIA) to create a nationwide high-capacity network that will enable advanced networking features for more than 200,000 essential community anchor institutions.

Juniper noted that it has been an Internet2 corporate partner and a principal provider of IP networking equipment to Internet2's national backbone since 2002.

As part of the U.S. UCAN infrastructure, Internet2 will deploy Juniper Networks MX Series 3D Universal Edge Routers, T Series Routers and supporting services.

Orange's Internet-TV-Phone + Mobile offer in France

Orange announced a new offer in France that combines triple play (internet, TV and VoIP) + a mobile package with only one contract, a single customer service number and a single bill. "Orange Open" also includes unlimited phone calls to 4 mobile numbers 24/7 thanks to VoIP.

"Orange Open" offers a range of "uncomplicated deals" aimed at simplifying customer service. Orange said it now allows customers to exchange their device (Livebox, TV decoder, mobile phone) within 48 hours of a breakdown. The broadband service is rated at up to 20 Mbps.

Sprint Debuts Samsung Epic 4G Smartphone

On August 31, Sprint will begin offering the Samsung "Epic" 4G smartphone with a full QWERTY keyboard and brilliant Super AMOLED touchscreen. The device will cost $249.99 with a new line or eligible upgrade, two-year service agreement, after a $100 mail-in rebate (taxes excluded).

Some key features:

  • 4G coverage on Sprint's WiMAX network with 3G fallback

  • Android 2.1 OS with upgrade planned soon to 2.2

  • Virtual keyboard and Swype technology, which allows users to input text faster and more intuitively with one continuous finger motion across the virtual keyboard.

  • Samsung 1GHz Cortex A8 Hummingbird Application Processor

  • Dual camera: 5 MP camera/camcorder with autofocus, power LED flash and 4x digital zoom for photos and HD video1 (720p) video recording, as well as a front-facing VGA camera for video chat and more

  • Mobile Hotspot capability supporting up to five Wi-Fi enabled devices to share the 3G or 4G experience

  • Android Market for access to more than 65,000 useful applications, widgets and games available for download to customize the experience

  • Wi-Fi b/g/n

  • 1500 mAh removable battery

ZTE and ChinaTel Announce Global Strategic Partnership

ZTE signed a memorandum of understanding to partner with ChinaTel Group, a US-based provider of high speed wireless broadband and telecommunications infrastructure engineering and construction services.

Under the partnership, TE will be the preferred and primary provider of customized equipment, software, consumer products, operational services and financing for high speed wireless broadband telecommunications networks ChinaTel is deploying in the PRC, Peru, and other markets ChinaTel enters in the future. ChinaTel and ZTE will also work together to analyze consumer demand for new products and solutions, develop business plans to determine financial viability, execute design concepts, and roll out completed products and solutions, including manufacturing, marketing and sales, all with the goal to expand the reach of wireless broadband access.

ChinaTel is presently building, operating and deploying a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China (PRC) with and for CECT-Chinacomm Communications Co.. ChinaTel is also building a 2.5GHz wireless broadband system in cities across Peru with and for Perusat.

Verizon Delivers VoIP for Siemens Enterprise Communications

Verizon Business is providing an integrated communications and networking solution to Siemens Enterprise Communications. Verizon's solution for upgrading Siemens Enterprise Communications' European communications infrastructure integrates VoIP with centralized, multicountry and multisite IP Trunking to link the company's Munich headquarters with operations across 10 European countries. Additionally, Verizon IP Trunking's Burstable Enterprise Shared Trunks (BEST) feature enables Siemens to essentially scale VoIP network capacity on demand to support its business needs.

Aviat Announces Corporate Restructuring

Aviat Networks is implementing a corporate restructuring plan to reduce annual spending of $30 to $35 million, restore profitability and establish a platform to drive sustainable revenue growth.

Plans call for a reduction in workforce and consolidation of its global presence by closing and/or relocating select facilities. The workforce reduction will be achieved through severance programs and attrition, with most of the key actions occurring in the first and second quarters of fiscal 2011. Prior to this announcement, the Company had already ceased manufacturing operations in San Antonio, and had begun consolidating operations in India and in China.

In connection with the restructuring plan, Aviat Networks will incur pre-tax restructuring charges currently estimated to be approximately $11 to $13 million related to severance costs as well as impairment of facilities and other assets.
  • In June 2010, Aviat Networks appointed Chuck Kissner as its new CEO, following the resignation of Harald J. Braun. Kissner has been serving as the company's Chairman of the Board of Directors and will be based at its headquarters location in Santa Clara, California. He previously served as CEO of Stratex Networks, Inc., a predecessor of Aviat Networks, from July 1995 through May 2000, again from October 2001 to May 2006 and also was Chairman of the Board of Directors of Stratex from August 1996 through 2006.

Tuesday, August 10, 2010

Telstra Sees Mobile Data as Bright Spot

Telstra's sales revenue declined 2.2% or $558 million to $24,813 million (Australian) for its full 2009/10 financial year. EBITDA also declined by 0.9% or $101 million to $10,847 million. Net profit after tax declined by 4.7% to $3,883 million, however, free cash flow increased by $1.9 billion to $6.2 billion, exceeding the company's long-held target of $6 billion.

"2010 has been a challenging year, yet in the second half we started to see improving momentum in key products, and positive growth with business, government and enterprise customers as well as profit growth at Sensis," said Telstra CEO David Thodey.

Some highlights:

  • For the year, Telstra had a CAPEX-to-sales ratio of 14%, with $3.5 billion invested in the year.

  • Mobile services revenue grew 5.9%

  • Mobile data grew 21.7%

  • Wireless broadband revenue grew 34% (with more than 1.6 million subscribers),

  • Fixed broadband ARPU continues to increase.

  • Fixed telephony, however, continued to present a significant challenge, with PSTN declining by 8% over the year.

  • In 2011, Telstra expects an increase in the customer base and flattish revenues, but because of our investments and changing product mix the company expects a high single digit percentage decline in EBITDA, and free cashflow of between $4.5 and $5.0 billion.

  • Telstra also foresees CAPEX/sales around 14 percent for the medium-term, excluding possible spectrum acquisition costs.

  • Full year sales at CSL New World in Hong Kong declined by 7% due to challenging market conditions.

Cisco Posts Revenue of $10.8B, up 27% YoY, Cites Mixed Economic Signals

Cisco posted quarterly sales of $10.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.9 billion or $0.33 per share, and non-GAAP net income of $2.5 billion or $0.43 per share. Net sales were up 27% year-over-year while net income rose 74% year over year. However, the figures were slightly below analyst expectations of $10.95 billion in sales and the company cited "mixed signals" for growth in the global economy.

"This was yet another very strong quarter with a number of record financial results for Cisco, closing the fiscal year in a tremendous position of strength--a compelling financial model, a well-tuned innovation engine and solid execution on our growth strategy," said John Chambers, chairman and CEO, Cisco. "Whether the global economy continues to show mixed signals or not--the strength of our financial model and profit generation serves us well."

Some highlights for the quarter:

  • Cisco said its supply chain has stabilized but that it continues to experience some component shortages.

  • Geographically, Emerging Market Orders were up 35% YoY, European orders were up in the mid-20% YoY, while AsiaPac, U.S. and Canadian orders were each up 20% YoY.

  • By product category, Advanced Technology revenue was up 27% YoY, Switching revenue was up 27% YoY, and Routing revenue was up 15% YoY. Significantly, revenue for the CRS routing system was up 20% YOY, ASR revenue was up 150% YoY, and Nexus data center revenue was up 325% YoY.

  • Cisco said data center virtualization is an especially hot segment. Video and collaboration are also hot.

  • During the quarter, Cisco hired about 2,000 employees of which 70% were in the U.S. In California, Cisco added about 600 employees in the quarter -- not counting acquisitions.

  • Cash and cash equivalents and investments were $39.9 billion at the end of fiscal 2010, compared with $35.0 billion at the end of fiscal 2009, and compared with $39.1 billion at the end of the third quarter of fiscal 2010.

Bharti Airtel to acquire Telecom Seychelles

Bharti Airtel will acquire 100 % of Telecom Seychelles Limited, the incumbent operator of Seychelles, for US$62 million. Seychelles is an island nation in the Indian Ocean with an estimated population of 84,000.

Telecom Seychelles began operations in 1998 by launching mobile services. Today, it offers 3G mobile and integrated wireline services across the island nation under the Airtel brand and has over 57% share of the mobile market. The operator also has a wireline core network supplied by Ericsson and it offers ISDN/DSL along with digital / IP PABX connectivity.

With this acquisition, Bharti Airtel will expand its African footprint to 16 countries and its overall presence to 19 countries.

Mr. Manoj Kohli, CEO (International) & Jt. MD, Bharti Airtel, said, "We are delighted at the addition of Seychelles to our Africa portfolio. Telecom Seychelles has world-class operations that include state-of-the-art 3G services. These operations will benefit further by leveraging the efficiencies of scale of our African operations."
  • In June 2010, India's Bharti Airtel completed its previously announced acquisition of Zain's mobile operations in 15 countries across Africa for an enterprise valuation of US$10.7 billion.

    The acquisition positions Airtel as one of the world's top five mobile operators with 180 million customers, operations in 18 countries across Asia and Africa. It's network footprint covers over 1.8 billion people. The company will have combined revenues of over US$12.4 billion and EBITDA of over US$ 4.7 billion, based on the last audited results.

    Bharti's acquisition of Zain's African mobile services operations covers 15 countries with a total customer base of over 42 million. The total population base covered is over 450 million with telecom penetration of approximately 32%. The countries in which Bharti has acquired the operations are - Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. Zain is the market leader in 10 of the 15 countries and second in 4 countries.

Ericsson Demos Open IPTV Set-top Box

Ericsson has demonstrated an IPTV set-top box based on specifications from the Open IPTV Forum (OIPF).

The showcase was created in response to Singapore's Infocomm Development Authority (IDA) and Media Development Authority (MDA) plan to minimize IPTV fragmentation across operators and enhance growth of interactive applications through a standards-based common featured IPTV STB over the Next Generation Nationwide Broadband Network (NGNBN).

Ericsson said it believes the use of open standards for a common featured STB will encourage innovative application development and foster more creative marketing options in the pay TV arena. Higher levels of interoperability also provide marketing opportunities that are not typically available from closed proprietary solutions.

Alcatel-Lucent Supplies IP/MPLS to Washington Gas

Washington Gas, which is a utility company serving Washington, D.C., has selected Alcatel-Lucent's IP/MPLS solution for its new communications backbone.

The new network will support mission-critical utility applications and data requirements throughout Washington Gas' service territory. For example, this new high-speed network will be able to monitor the company's 12,200 miles of pipeline, checking for any disruptions and alerting management immediately. The network also will enable Washington Gas to continue to evolve its internal data networks to ensure customers natural gas delivery when they need it, at the most economical price and highest reliability possible, while reducing its carbon footprint.

SingTel Installs Huawei's Core Router Clustering System

SingTel has successfully deployed Huawei's NE5000E 1+2 router cluster system in its converged IP backbone.

Huawei's NE5000E 1+2 router cluster system provides scalability to 2.56 Tbps and features a a resilient matrix design and in-service hardware expansion capabilities. Huawei said its NE5000E router cluster system also breaks new ground in terms of energy-efficiency due to its distributed power supply, highly-efficient power system, and cyclic heat dissipation.

NE5000E cluster system supports single chassis mode and multiple chassis cluster modes, such as back-to-back, 1+4, 2+8. The future-oriented design ensures the cluster system to be expanded to 16+64 multi-chassis.

Microsemi Doubles Reach for PoE Midspans to 200M

Microsemi introduced a single-port Power-over-Ethernet (PoE) extender that doubles the powering reach of its PoE midspans to 200 meters. PoE midspans enable both data and power to be delivered over a single standard RJ-45 cable, eliminating the need for external power supplies and their associated AC/DC power cabling for Ethernet-connected cameras, IP phones, WLAN access points, etc.

Microsemi is the first to deliver 25.5-watt, IEEE802.3at power levels over extended distances while supporting 10/100/1000 Mbps data rates. Even longer reach is possible by cascading multiple extenders.

Microsemi said its PowerDsine PD-PoE Extender does not require local power, and is simply connected to a midspan and powered via the PoE input. The extender joins Microsemi's growing family of midspan products that support up to 24-port implementations in both standard- and high-power applications with a variety of smart power management and remote maintenance capabilities.

Ericsson Milestone: 2 Million Base Stations Delivered to Date

In 2007, Ericsson delivered its one millionth radio base station, some 20 years since shipping its first base station. It has taken only three years to deliver the next million. The two millionth radio base station was an Ericsson RBS 6000 unit, delivered as part of a mobile broadband network expansion project.

Ericsson estimates that its base stations connect 1.5 billion people worldwide.

Google Inks Ad Sales Deal with DIRECTV

Google will become the sales representative for a broad selection of advertising inventory on several cable networks carried on DIRECTV. Under the deal, national satellite advertising inventory on Bloomberg, Fox Business, Centric, Fuel, G4, Current, Ovation, Fit, Sleuth, Chiller and TV Guide will be available through the Google TV Ads system.

DIRECTV currently has 18.7 million satellite TV subscribers.

NTT Com to Acquire Secode AB for Managed Security in No. Europe

NTT Communications will acquire Secode AB, a leading provider of managed-security and security-consulting services in Nordic countries, for an undisclosed sum.

Secode provides managed-security and security-consulting services across northern Europe. The company offers 24/7 services for intrusion detection and prevention, log management, vulnerability analysis, data-loss prevention, anti-virus and anti-spam, managed VPN/firewall and mobile security. In addition to its two SOCs, it operates support desks in local languages in Finland and the Netherlands. Secode also manages a specialized team for conducting tests and audits, as well as its staff of consultants who offer a wide range of professional security services. Secode has about 90 employees. Following the acquisition, Secode will operate as a wholly owned subsidiary led by Trygve Reinertsen, Secode's current CEO.

NTT Com said the acquisition will help it to capitalize on the growing needs for managed-security services among multinational companies, who are increasingly outsourcing security management to professionals due to the difficulties of nurturing qualified engineers and ensuring 24/7 readiness against constantly evolving security threats.In addition, it will fold Secode's security operation centers (SOCs) in Sweden and Norway into its existing group of SOCs in Japan, Germany, Singapore and the U.S., the latter three of which were added in October 2009 when NTT Com acquired a majority stake in Integralis AG in Germany.

Talari Networks Secures $10 Million for WAN Virtualization

Talari Networks, a start-up based in Cupertino, California, raised $10 million in a second round of institutional funding for its enterprise WAN virtualization technology.

Talari Networks' Adaptive Private Networking (APN) technology combines network bandwidth from the public Internet with RAID-like methods. It combines diverse sources of bandwidth and end-to-end algorithms to apply dynamic, real-time, per-packet traffic engineering. By continually measuring loss, latency and jitter, APN adapts to variations in network conditions virtually instantly to ensure reliable, predictable application performance using all of the available bandwidth. The company claims its Mercury line of Adaptive Private Networking appliances delivers a network with 30 to 100 times the bits per dollar, ongoing WAN costs reduced by 40% to 90%, and greater reliability than existing corporate WANs.

The new funding was led by Silver Creek Ventures with existing backers Menlo Ventures and private investors also participating.

Motorola Says iDEN Continues to Grow Internationally

Motorola's proprietary integrated Digital Enhanced Network (iDEN) technology, which combines traditional mobile telephony with push-to-talk (PTT) for the enterprise market, has reached 10 million subscribers outside the United States. Motorola said iDEN technology is currently in operation with more than 30 network operators in 23 countries worldwide for the delivery of communications services.

"Motorola continues to develop and support our iDEN technology as a feature rich high quality solution for our customers," says Gene Delaney, executive vice president, Product & Business Operations, Motorola Solutions. "Furthermore, iDEN's wide variety of communications services enables operators to serve many market segments with a single economical network solution."