Saturday, May 7, 2011

Broadcom to Acquire SC Square for $42M -- Security Software

Broadcom has agreed to acquire SC Square Ltd., a security software developer based in Israel, for approximately $41.9 million in cash. The company develops smart card operating systems with state-of-the-art cryptographic algorithms.

Broadcom said the acquisition is part of its strategy to acquire technologies and high quality teams with a solid track record of execution.

Thursday, May 5, 2011

VimpelCom to Acquire Mobile Operator in Vladivostok for US$420M

VimpelCom agreed to acquire 100% of the shares of Open Joint-Stock Company "New Telephone Company" ("NTC") from KT Corporation and Summit Telecom Global Management B.V., subsidiary of Sumitomo Corporation, for US$420 million.

NTC is a leading mobile operator in the Primorskiy region of Russia and provides voice and data services through a wide range of wireless, fixed and broadband solutions as well as IPTV and IP–telephony. In 2010, NTC recorded approximately RUR 3.4 billion in revenues and had a mobile subscriber base of approximately 950,000 as of 2010 year-end. NTC is based in Vladivostok.

NBNCo Signs $200m deal with Optus for Interim Satellite

Australia's NBN Co. awarded a five-year contract valued at up to $200 million to Optus to supply managed services for the national broadband network's Interim Satellite Service.

NBN Co plans to offer a wholesale Interim Satellite Service capable of peak download speeds up to 6 Mbps, to be available via participating retail service providers. The first service are expected to be available across Australia and Tasmania beginning in July.

The interim service will leverage Optus' existing Premium Broadband Very Small Aperture Terminals (VSATs) and capacity on Optus' D-Series satellites. Optus will be responsible for managing the project and will partner with Gilat Satellite Networks Australia to deploy VSAT network equipment at a number of satellite gateways and end user premises throughout Australia.

A second contract valued at just over $100 million has been signed with IPstar for additional satellite capacity.

NBN Co's satellite and fixed-wireless services are intended to serve the seven per cent of the nation's premises that its fibre optic cable rollout will be unable to reach. NBN Co is currently finalizing contracts for its fixed wireless service, which is due to be available from mid 2012.

Open Networking Foundation Gains Key Members

The Open Networking Foundation (ONF), a new, industry organization dedicated to promoting OpenFlow as a means to enable Software-Defined Networking (SDN), has added nine new members: Big Switch Networks, Comcast, Extreme Networks, IP Infusion, Netronome, Nicira Networks, Nokia Siemens Networks, Plexxi Inc., and Vello Systems. These companies join the six founding member companies: Deutsche Telekom, Facebook, Google, Microsoft, Verizon, and Yahoo!, as well as 17 other companies.

"Open networking is a major benefit to enterprise and service provider customers since OpenFlow will simplify management of multi-vendor networks while accelerating introduction of innovative new services."

"The ONF provides a great opportunity for both the consumers and the producers of OpenFlow technology to come together and drive innovation and adoption of the technology as a way to address the challenges of growing complexity in networks. Extreme Networks, as a new member of the Foundation, looks forward to contributing to move the technology forward," said Shehzad T. Merchant VP, Technology, Extreme Networks.

At this week's Interop in Las Vegas, ONF will join some of its members in the InteropNet OpenFlow Lab booth on the show floor. This year, OpenFlow is the sole feature of the InteropNet Lab.

U.S. Cellular Sets Initial LTE Rollout

U.S. Cellular announced plans for an initial rollout of LTE service for later this year in selected cities in Iowa, Wisconsin, Maine, North Carolina, Texas and Oklahoma. These include some of U.S. Cellular's leading markets such as Milwaukee, Madison and Racine, Wis.; Des Moines, Cedar Rapids and Davenport, Iowa; Portland and Bangor, Maine; and Greenville, N.C.

"With 4G LTE, our customers will have faster connections to the people, information and entertainment that enhance their lives and help them stay organized," said Mary N. Dillon, president and CEO of U.S. Cellular. "In addition to our line-up of cutting-edge devices, customers who switch to U.S. Cellular get unique benefits like faster phone upgrades without continuously signing contracts, and join the happiest customers in wireless."

Deutsche Telekom Reports Mixed Picture for Q1

Deutsche Telekom confirmed its financial guidance for the full year 2011, as it reported an overall decline in Q1 revenue of 3% compared to a year earlier, positive developments overall in Germany and at T‑Systems, while the companies in the Europe operating segment faced a host of challenges, as did T-Mobile USA. Free cash flow decreased by 26.3 percent to EUR 1.1 billion in the first quarter of 2011. This was largely due to different seasonal influences on capital expenditure and interest payments compared with the prior year.

"We have done our homework correctly. The planned sale of T‑Mobile USA heralded the beginning of a new era for us," explained RenĂ© Obermann, Chairman of the Board of Management of Deutsche Telekom. "The course has been set for the Group's realignment and we intend to pursue this course systematically. The figures for the first quarter show, however, that there are further challenges ahead."

Some highlights:

Adjusted for the deconsolidation of T-Mobile UK, which was still included in the figures for the first quarter of 2010, revenue declined by 3.0 percent to EUR 14.6 billion.

Adjusted EBITDA decreased by 5.0 percent to EUR 4.5 billion. Adjusted net profit declined by 27.4 percent to EUR 0.7 billion.

In its fixed-network business in Germany, revenue declined by 4.6 percent in the first quarter, while an increase of 1.3 percent was reported in mobile communications business. Revenue generated with consumers declined by 3.6 percent and revenue in the wholesale area fell by 6.6 percent, while earnings from business customers grew by 2.7 percent.

Mobile data revenue in Germany climbed by 32 percent compared with the first three quarters of 2010 to EUR 384 million. There was a low churn rate of 1.0 percent, 0.3 percentage points below the prior-year figure.

More than 100,000 people in Germany opted for the Entertain IPTV product in the first quarter, pushing the total number of customers up to 1.3 million. At around 46 percent, Telekom retained its large share of the DSL customer base.

For access lines in Germany, there was a drop of 9 percent year-on-year to 339,000 in the first quarter of 2011. For comparison: Two years ago, line losses were still at more than 600,000.

T‑Systems continued its growth course in the first quarter of 2011. Revenue from Systems Solutions increased by 6.1 percent year-on-year to EUR 2.3 billion. This was helped by international revenues, which climbed by 9.4 percent.

For operations in Europe, total revenue adjusted for the deconsolidation of T‑Mobile UK dropped in the first quarter by 8 percent year-on-year to EUR 3.7 billion. The decline in adjusted EBITDA of 13 percent to EUR 1.2 billion was more marked.

T‑Mobile USA lost 471,000 contract customers in the quarter. This was partially offset by growth of 372,000 in prepaid customers. As a result, the overall customer base declined by 99,000 compared with the end of 2010 to 33.6 million. T‑Mobile USA generated revenue USD 5.2 billion, or EUR 3.8 billion -- virtually stable year-on-year. Service revenues even increased slightly by 0.4 percent. Adjusted EBITDA on the other hand declined by 14.5 percent to USD 1.2 billion. Translated into euros, this corresponds to a drop of 13.6 percent. The negative development in results was largely due to higher market investment and network costs.

ALU Posts Strong Q1 Driven by Wireless in North America

Alcatel-Lucent posted strong results for Q1 2011 with revenue Euro 3.740 billion, up 15.2% year-over-year and down 23.1% sequentially. Adjusted gross profit came in at Euro 1.354 billion or 36.2% of revenues.

"We have started this year the way we ended the last, increasing growth, profit and global strength, and to do so in the first quarter is particularly pleasing. A favourable geographic and product mix impacted positively our gross margin while actions on fixed costs have been taken which will drive further efficiency gains during the course of the year. We improved our free cash flow by more than Euro 200 million compared to the year ago quarter," stated Ben Verwaayen, CEO.

Some highlights:


Revenues were Euro 2.418billion, an increase of 25.4% compared to Euro 1.928 billion in the year-ago quarter and a decrease of 18.1% compared to Euro 2.952 billion in the fourth quarter 2010.

Strong revenue growth continued in the IP division in the first quarter with an increase of 28.3% from the year-ago quarter to Euro 349 million. Within the division growth was, once again, driven by the IP/MPLS service router business, where revenues increased 40% from the year-ago quarter and nearly doubled their year-ago level in the Americas region.

As of the first quarter, 14 service providers have now deployed Alcatel-Lucent's IP Service Routers with 100 Gigabit Ethernet.

Revenues for the Optics division were Euro 654 million, an increase of 15.3% from the year-ago quarter as the second consecutive quarter of 20% year-over-year growth in the terrestrial business was joined by an increase in the submarine business – its first since year-over-year growth in our sub-sea business turned negative in early 2010. Growth was widespread across the terrestrial business and although it was once again led by the WDM segment, where revenues increased 40%, it also included double-digit gains in metro aggregation and optical switching and near double-digit growth in wireless (microwave) transmission.

Single-carrier 100G coherent WDM optical transport technology continued to have strong momentum with wins, ongoing deployments and field trials with operators worldwide, including Kazakhtelecom for a total of 30+ customer references around the world.

In the submarine business, we were awarded six new contracts.

Growth in the Wireless division remained very strong as revenues increased 36.5% from the year-ago quarter to Euro 1.118 billion. Growth was concentrated in the Americas and was driven largely by the CDMA EV-DO business, which more than doubled its year-ago level, and by the 4G LTE business.

Growth continued in the Wireline division for the second consecutive quarter, with revenues increasing 3.7% from the year-ago quarter to Euro 309 million.

Sales of our next-generation Networks products increased 19% from the year-ago quarter and reached Euro 901 million in the first quarter. This accounts for 37% of Networks sales.


For the first quarter 2011, revenues for the Applications segment were Euro 451million, an increase of 8.4% compared to Euro 416 million in the year-ago quarter and a decrease of 21.6% compared to Euro 575 million in the fourth quarter 2010.

Network applications revenues of Euro 166 million increased 11.4% from the year-ago quarter in the first quarter, marking a fourth consecutive quarter of year-over-year growth. The increase was led by strong growth in Payment, Digital Media & Advertising, Applications Professional Services (software customization) and our Motive solution (remote customer management).

Revenues in the Enterprise applications business increased 5.2% over the year-ago quarter, reaching Euro 285 million in the first quarter. Genesys enjoyed a double-digit growth, led by new customer wins in APAC and in the Americas and the strong growth of its offerings in adjacent markets such as Intelligent Workload Distribution (iWD), Work Force Optimization (WFO) and Analytics. Data networks grew at a high single digit-growth rate with sales of the Omniswitch 10k, the company's new high capacity switch, off to a great start to the year. Finally, the voice telephony business grew at a low single digit rate.


For the first quarter 2011, revenues for the Services segment were Euro 809 million, an increase of 4.8% compared to Euro 772 million in the year-ago quarter and a decline of 29.0% compared to Euro 1.140 billion in the fourth quarter 2010. At constant currency exchange rates, Services revenues increased 2.6% year-over-year and declined 28.6% sequentially.

Revenues in Managed and Outsourcing Solutions business increased at a single-digit rate in the first quarter, with growth across all regions. During the quarter, we signed a number of contracts for new roll-outs and project extensions in the EMEA and Asia-Pacific regions.

In the Network and Systems Integration (NSI) business, revenues increased at a near 30% rate for the second consecutive quarter with continued strong growth in orders. Revenue growth was particularly strong in the Americas driven by network transformation projects, and in the Asia-Pacific region driven by strategic industries.

Wednesday, May 4, 2011

Connectivity Scorecard 2011 Ranks Countries by ICT and Innovation

Sweden and the United States ranked highest in the annual Connectivity Scorecard 2011, a global study commissioned by Nokia Siemens Networks and authored by Professor Leonard Waverman, Dean, Haskayne School of Business, University of Calgary in conjunction with the consulting firms, Berkeley Research Group and Communicea.

The study measured the extent to which governments, businesses and consumers in 50 countries make use of connectivity technologies to enhance economic and social prosperity. Connectivity is defined as the bundle of infrastructure, complementary skills, software and informed usage that makes communications networks the key driver of productivity and economic growth.

The authors of the study argue that countries that continue to invest in ICT infrastructure, applications and services as well as promoting ICT workforce skills and use will be better able to cope with the effects of global recession and boost their socio-economic growth.

"Despite global economic shocks, the knowledge economy is growing in power. While many advanced countries are forging ahead in terms of infrastructure and their use of ICT, the real connectivity gaps are in the developing world with the exception of strong growth in mobile telephony," said Professor Waverman. "One thing, which is clear is that developing countries must make ICT more affordable, stimulate its adoption and overcome barriers to its use to remain relevant and competitive."

"By commissioning the Connectivity Scorecard, we aim to highlight the pivotal role of information and communications technology in driving productivity and sustainable socio-economic growth ," added Kim Jones, the Connectivity Scorecard program manager at Nokia Siemens Networks. "In its fourth year, the study reiterates that broadband infrastructure deployments only translate into faster economic growth, when there is complementary investment in skills as well as in relevant services and applications."

CenturyLink Sees Continued Access Line Losses

CenturyLink reported Q1 revenue of $1.70 billion compared to $1.80 billion in first quarter 2010. The company attributed the revenue decline primarily to the impact of access line losses and lower access revenues, including the anticipated impact of lower universal service fund receipts and wireless and long distance traffic migration. These decreases more than offset revenue increases driven by growth in high-speed Internet customers, data services demand from business customers and data transport demand from wireless providers.

CenturyLink added more than 52,000 high-speed Internet customers during the quarter, and ended the quarter with 2,446,000 high-speed Internet customers.

Qwest Communications, which CenturyLink acquired April 1, 2011, delivered Q1 operating revenues of $2.85 billion, a 4.1% decline from $2.97 billion in first quarter 2010. Strategic services revenues grew primarily due to increases in Qwest IQ Networking and data transport services, as well as higher broadband revenues driven by subscriber growth and an improving mix of higher speed broadband services. These increases were more than offset by a decline in legacy service revenue associated with access line losses, along with lower data integration revenues. Operating income, excluding special items, for first quarter 2011 was $593 million, a 2.4% increase over the $579 million for the same period in 2010. Operating income margin, excluding special items, was 20.8% for first quarter 2011 versus 19.5% in the year earlier quarter. Net income, excluding special items, for Qwest was $220 million in first quarter 2011, compared to $200 million in first quarter 2010.

Qwest added approximately 46,000 high-speed Internet subscribers during first quarter 2011 and served approximately 3.0 million high-speed Internet subscribers as of March 31, 2011. Qwest ended the quarter with approximately 8.6 million access lines in service, experiencing access line losses of 223,000 lines during the first quarter, representing a 2.5% sequential decline and a year-over-year access line decline of 10.7%.

TelePacific to Acquire Orange County Internet Xchange

TelePacific Communications, a California-based CLEC, will acquire Orange County Internet Xchange (OCiX), a dedicated provider of carrier class colocation services. OCiX operates a 10,000 square-foot SAS 70 Type II certified facility, located in Santa Ana, California which TelePacific plans to substantially expand in the near future. Financial terms were not disclosed.

The OCiX data center is strategically located very close to the existing TelePacific colocation facility in Irvine and will immediately provide the needed increased capacity.

TelePacific's other carrier class colocation facilities are located in San Jose, San Francisco, San Diego, Los Angeles and Las Vegas.

TelePacific Acquires Telekenex

TelePacific Communications, a California-based CLEC, will acquire all of the assets and customers of IXC (Telekenex), a business-grade IP services provider headquartered in San Francisco and Seattle.

Under the terms of the agreement, the TelePacific Communications family of companies will gain approximately 1,000 business customers and 122 employees. Financial terms were not disclosed.

TelePacific will also add the following services through the acquisition: a hosted PBX platform with nationwide voice capabilities; a nationwide PCI compliant MPLS backbone; a fiber network in the San Francisco-Oakland Bay Area; managed network services providing advanced configuration and support for complex network deployments; and managed security services through a cloud-based firewall.

"This is a big game-changer for TelePacific," said Dick Jalkut, president and CEO of TelePacific. "This transaction not only enhances TelePacific's network and makes us even more competitive, but it instantly opens up new markets and opportunities for growth. We are excited about the strategic opportunities this presents us and our customers."

Aviat Posts Sales of $115 Million

Aviat Networks reported quarterly revenue of $115.5 million, compared with $117.0 million in the year ago period and $115.9 million in the prior quarter. Net loss (including discontinued operations) was $36.9 million, or $(0.63) per share, compared with a net loss of $25.7 million, or $(0.43) per share, in the year ago quarter. Net loss from continuing operations was $25.5 million, or $(0.44) per share, compared with a net loss of $22.5 million, or $(0.38) per share, in the year ago quarter.

Revenue in the North America segment was $42.5 million in the third quarter of fiscal 2011, compared with $39.5 million in the year ago period and $40.4 million in the prior quarter. International revenue was $73.0 million, compared with $77.5 million in the year ago period and $75.5 million in the prior quarter.

"Aviat Networks made significant progress in driving its technology innovation with the announcement of several new products in the third quarter of fiscal year 2011. In addition, the decision to sell our WiMAX business will enable the company to further focus and invest in our core wireless transmission business and position the company for long-term growth. We believe we did very well in meeting our customer commitments and now are seeing increased customer activity," said Chuck Kissner, chairman and CEO, Aviat Networks. "With the cost reductions on target for Q4, and with the introduction of new products, systems and processes, we are prepared to move Aviat Networks forward again."

Polaris Wireless Selects GoAhead OpenSAFfire for Wireless Location Platform

Polaris Wireless, which supplies high-accuracy, software-based wireless location solutions, has selected GoAhead Software's OpenSAFfire to help ensure system uptime and uninterrupted service for the company's OmniLocate wireless location platform.

"With the increased focus on wireless location for public safety and mission critical applications, such as enhanced 911, leveraging standardized solutions like OpenSAFfire enables us to ensure the availability and reliability of the OmniLocate platform when it is most needed," said Zaheer Allam, senior vice-president of telecom products at Polaris Wireless. "In addition, GoAhead is providing us with a robust set of professional services and consulting to compress our development timelines even further. Their deep expertise in high availability technology and the adoption of their solutions by other industry leaders make GoAhead the natural choice."

Sandvine Lands 3 More Wireless ISPs for it Network Policy Control

Sandvine named three new wireless ISP customers using its network policy control platform: Alaska-based GCI, Michigan-based Thumb Cellular, and Carolina West Wireless.

Thumb Cellular is using Sandvine for the deployment of bandwidth-based service tiers, which allows them to provide 3G data services with a high degree of customer satisfaction. Thumb is also deploying Fairshare Traffic Management to ensure quality Internet access for their subscribers at all times of the day.

Carolina West Wireless, a North Carolina-based ISP that offers data and mobile services, is using Sandvine's network policy control solutions' device awareness capabilities to detect tethered devices.

"In today's dynamic broadband industry, Sandvine is proud to be able to meet the evolving needs of GCI, Thumb Cellular, and Carolina West Wireless with our flexible network policy control solutions," said Dave Caputo, President and CEO, Sandvine. "In working with all ISPs, our goal is to help defer CapEx, reduce OpEx and increase revenue through the introduction of new service offerings such as tethering detection and tiered billing services, while continuing to maintain a high-quality subscriber Internet experience."

cPacket Launches 10G Data Monitoring Switch

cPacket Networks, a start-up based in Mountain View, California, introduced a new line of data monitoring switches that combine aggregation and replication with real time L2-L7 packet filtering, on-the-fly performance visibility, and built-in flow load balancing.

The cVu product family includes the cVu320G with 32 10-Gigabit ports, which was introduced in Interop last year; the cVu240G with 24 10-Gigabit ports; and the new cVu120G with 12 10-Gigabit ports.

"Our products inspect every bit in every packet and every flow at full line rate under any traffic conditions and can immediately trigger automatic actions based upon the observed data or key performance indicators," said Rony Kay, founder and CEO of cPacket.

The company said its new switches are particularly valuable for financial services and trading applications that need highly accurate latency measurement and optimization because they also support an optional Precision Timing Module for real time analysis of microbursts and for nanosecond resolution time stamping directly at the transceiver input. The accurate time stamping is coupled with cPacket's hardware and software clock-synchronization architecture, which facilitates precise measurement of applications latency and jitter. The performance counters and time stamps can be used as data feeds to a variety of commercial and open source tools.

PAETEC to Open Major Mid-Atlantic Data Center in Virginia

PAETEC announced plans for the deployment of a new data center in McLean, Va. The three-story building, which will include 49,000 square feet of raised floor space, will provide colocation services and geographic diversity to businesses and government entities along the East Coast and nationwide. The center also will support the shift to cloud computing as more business applications move towards advanced network-based services. The McLean center is planned to open at the end of 2011.

With the addition of McLean, PAETEC will have key data center facilities in Andover, Mass.; Bethlehem and Conshohocken, Pa.; Milwaukee, Houston, Phoenix, and Richmond, Va., augmenting its footprint of more than 100 physical colocation facilities nationwide.

Ixia Debuts Cloud Simulation Test Modules

Ixia introduced two modules for validating ultra-low latency for time-sensitive applications in data center cloud networks. The company's new Xcellon-Flex and ImpairNet modules use a single integrated chassis for data center cloud simulation.

Specifically, the Xcellon-Flex 10/40GE Accelerated Performance load module generates both east-west and north-south traffic flows that are characteristic of data center clouds, and measures whether switches can satisfy forwarding performance requirements. At the same time the new ImpairNet module simulates the latency that is inherent in wide area networks (WAN) between data center clouds, and validates whether the end-to-end performance is impacted by the delay within the WAN cloud. The ability to completely characterize the latency performance of data center clouds is critical for time-sensitive applications such as financial transactions, where even milliseconds of delay can results in a loss of thousands of dollars.

The Xcellon-Flex 10/40GE Accelerated Performance load module includes 16-ports of 10GE and 4-ports of 40GE in a single-slot, with mixed-speed operation for maximum ROI, multicore CPU to accelerate layer 2-7 performance, port CPU/memory aggregation for the industry's highest scaling solution, and full automation support for data center cloud traffic and protocols.

The ImpairNet test module includes four 1GE or four 10GE ports on a single XM module to achieve the industry's highest port density, full line rate impairment on all frame sizes, ultra-high latency simulation (at 600ms for 10GE and 6sec for 1GE), and integrated GUI traffic and impairment generation.

Cisco Announces Restructuring

Cisco outlined a business restructuring aimed at refocusing the company on the five areas driving the growth of networks and the Internet: core – routing, switching, and services; collaboration; data center virtualization and cloud; video; and architectures for business transformation.

Cisco announced the following changes:

Worldwide Field Operations will now be organized into three geographic regions: the Americas; Europe, Middle East and Africa; and Asia Pacific/Japan/Greater China. Dedicated teams will also focus on Enterprise (including large enterprise, public sector, commercial and small businesses), Service Provider, and Cisco Partners. Executive vice president Robert Lloyd will continue to lead the worldwide field operations and sales organization.

Cisco Services will organize around key customer segments and delivery models in alignment with Field Operations. Gary Moore, executive vice president and chief operating officer, will continue as leader of the services organization, in addition to his duties as COO.

Cisco Engineering will organize functionally to drive technology innovation, accountability and alignment across all five company priority areas. Senior vice president Pankaj Patel and senior vice president Padmasree Warrior will now co-lead the engineering organization. Within engineering, a dedicated Emerging Business Group will focus on select early-phase businesses and will be led by senior vice president Marthin De Beer, with continued focus on integrating the Medianet architecture for video across the company. The engineering organization under Patel and Warrior will continue to report to Gary Moore, COO.

Councils -- Cisco will refine its cross-functional Council structure to three councils: Enterprise, Service Provider and Emerging Countries. These councils will serve to further strengthen the connection between strategy and execution across functional groups. Resource allocation and profitability targets will move to the sales and engineering leadership teams which will have accountability and direct responsibility for business results.

The majority of these changes will take place over the next 120 days, with the new Sales organization in place at the start of Cisco's fiscal 2012 (July 31, 2011).

"Cisco is focused on making a series of changes throughout the next quarter and as we enter the new fiscal year that will make it easier to work for and with Cisco, as we focus our portfolio, simplify operations and manage expenses," said Gary Moore, COO. "Our five company priorities are for a reason—they are the five drivers of the future of the network, and they define what our customers know Cisco is uniquely able to provide for their business success. The new operating model will enable Cisco to execute on the significant market opportunities of the network and empower our sales, service and engineering organizations."

"Cisco has driven transformational change before, and we are again transitioning to the next stage of the company's evolution," said Cisco Chairman and CEO John Chambers. "Today, the market is driving toward simplification and it's why the network matters. Our role as the leading network platform provider is strong, we have great customers, talent and expertise—and we know how to bring innovation to every aspect of the network. It's time to simplify the way we execute our strategy, and today's announcement is a key step forward."

See also