Sunday, November 6, 2011

Ceragon Posts Q3 Sales of $116 Million

Ceragon Networks reported record Q3 revenues of $116.1 million, up 86% from $62.3 million for the third quarter of 2010, and up 5% from $110.4 million in the second quarter of 2011. Net loss (GAAP) was ($6.7) million or ($0.19) per basic share and diluted share, compared to net income of $4.6 million in the third quarter of 2010, or $0.13 per basic share and diluted share. Gross margin on a GAAP basis in the third quarter of 2011 was 29.7% of revenues, compared to GAAP gross margin of 21.4% in the second quarter of 2011. Cash and cash investments at the end of the quarter were $45.9 million.


"We are pleased to report another quarter of excellent progress with the integration leading to a sequential increase in revenues, improved gross margin and profitability," said Ira Palti, President and CEO of Ceragon. "Business remains good with our book-to-bill ratio for the first nine months of 2011 above one," continued Mr. Palti. "We expect to continue growing revenues, probably at a slower pace than originally expected because we cannot ignore the macro economic uncertainty and the issues in India affecting order patterns. Our plan to migrate customers to lower-cost higher functionality and capacity products is proceeding smoothly, and we continue to expect we will reach our gross margin target of the mid-30s by the end of next year. Given the current level of visibility, we believe targeting a non-GAAP operating margin of 8%-9% by the end of 2012 is realistic."


Geographical breakdown, third quarter of 2011:


Europe: 17%

Africa: 17%

North America: 13%

Latin America: 25%

India: 12%

APAC: 16%
http://www.ceragon.com
  • Earlier this year, Ceragon Networks acquired Nera Networks AS (NAS), a supplier of long-distance microwave radios, for approximately $48.5 million on a cash-free/debt free basis from Eltek ASA.


    Ceragon said the deal offers a long-range radio portfolio, as well as substantial presence in Latin America and Africa, advancing its goal of becoming the leading supplier of wireless backhaul solutions. Nera's geographic focus complements Ceragon's position in Europe, Asia and North America, and adds experienced, professional services staff and capabilities around the world. Nera Networks, which has its headquarters in Bergen, Norway, traces its history back to 1947. The company has about 800 employees with regional offices in Europe, the Americas, Middle East, Africa and Asia (through Nera Telecommunications Ltd., a separate company listed in Singapore).

Private Investors to Acquire Tekelec for $780 Million

A consortium led by Siris Capital Group has proposed to acquire Tekelec for approximately $780 million, or $11.00 per share in cash, representing an 11% premium over the closing price on November 4, 2011, and a 38% premium over the 30 day trading average.


Last month, Tekelec announced a $20 million Diameter Signaling Router related order, the largest Diameter Signaling Router order in its history.

Following the buyout, Tekelec's management team is expected to remain in place, and Merle Gilmore, former President of Motorola's Communications Enterprise and Chairman of the Board of Airvana Network Solutions Inc., will serve as Tekelec's Executive Chairman following the closing.


"Tekelec presents a unique opportunity to acquire market leading products in the Signaling, Policy, and Diameter Routing markets, a global customer base that includes 16 of the top 20 wireless service providers, and a highly skilled employee workforce,�? said Merle Gilmore. “We will continue investing in and building on Tekelec's reputation for innovation, scalability and reliability to extend the company's mobile data products to new markets and applications."


Separately, Tekelec reported Q3 2011 revenue of $106.2 million, down 2% compared to $108.3 million for the third quarter 2010. Orders were $67.9 million for the quarter, down 16% from the same period in 2010. The orders decline was across both the Global Signaling Solutions and Broadband Network Solutions business units. GAAP gross margins for third quarter 2011 were 60% compared to 55% in third quarter 2010. On a GAAP basis, the Company reported earnings for third quarter 2011 of $0.8 million, or $0.01 per diluted share, compared to a net loss in third quarter 2010 of $0.1 million, or ($0.00) per share. GAAP operating margins were 4% for third quarter 2011 up from 0% for third quarter 2010. Included in the company's third quarter 2011 GAAP operating results is a restructuring charge of $5.2 million.
http://www.tekelec.comTekelec's integrated Home Subscriber Server (HSS) address resolution database and its LTE Diameter Signaling Router (DSR) have been deployed by a tier-one North American Service Provider. This allows the service provider to scale LTE services by routing Diameter messages to the appropriate HSS in the network.


Tekelec's LTE products include:


Home Subscriber Server which serves as the central authentication and mobility management point in LTE Evolved Packet Core and IMS networks, and supports the latest 3GPP standards, including Idle-Mode Signaling Reduction. The HSS is an application on Tekelec's Subscriber Data Server, which also includes the Subscriber Profile Repository (SPR), the Equipment Identity Register (EIR), the next-generation Home Location Register (ngHLR) and an HLR-proxy to ensure seamless 3G/LTE services and device management.


Diameter Signaling Router, which scales and manages services and applications in LTE core networks for hundreds of millions of subscribers. The DSR centralizes routing, traffic management and load-balancing tasks associated with Diameter traffic.


Policy Server, a Policy and Charging Rules Function (PCRF) that integrates with the HSS and acts as the brain for policy coordination, dynamic bandwidth control, charging, consumption and other factors for a subscriber's entire data session.


Performance Intelligence Center (PIC), a performance management system that converts network traffic information into useful business intelligence for service providers to improve the customer experience. The PIC integrates with the DSR to eliminate the need for additional probes and network elements to analyze how subscribers are using IP-enabled devices and applications. In addition, Tekelec added the PIC troubleshooting features to the core DSR platform to continuously monitor the DSR's performance.


Each of these products runs on Tekelec's EAGLE XG middleware platform, built to meet the core network scalability needs of the world's largest networks.

Ericsson: 40% of Smartphone Users Check Email Before Getting Out of Bed

Ericsson issued a new Traffic and Market Data report based on measurements it conducts with major carriers worldwide.


Some key findings:


  • Total smartphone traffic will triple in 2011.


  • Global mobile penetration is now at 82 percent.


  • The total number of mobile subscriptions worldwide is at around 5.8 billion.


  • Around 75 percent of subscriptions are GSM. 14 percent are WCDMA/HSPA.


  • Mobile data surpassed voice in Q4 2009 and doubled voice in Q1 2011.


  • Mobile data traffic is expected to grow by nearly 60 percent per year between 2011 and 2016, mainly driven by video.


  • By 2016, Ericsson predicts LTE will have roughly the same population coverage as WCDMA/HSPA had in 2010, which is around 35 percent. The company expects WCDMA/HSPA will remain the leading mobile access technology for many years to come.


  • Ericsson expects traffic generated by advanced smartphones to increase 12-fold to roughly equal mobile PC-generated traffic by 2016.


  • Mobile broadband subscriptions will reach almost 5 billion, up from the expected 900 million by the end of 2011.


  • Almost 40 percent of smartphone owners globally use the internet before getting out of bed.


The full 24-page report is posted online.
http://www.ericsson.comhttp://hugin.info/1061/R/1561267/483187.pdf

Rackspace Sees Continued Growth in Data Center Hosting

Rackspace Hosting is now home to 78,717 servers, up from 74,028 servers at the end of the previous quarter, and total customers increased to 161,422, up from 152,578 at the end of the previous quarter. Net revenue for the third quarter of 2011 was $265 million, up 7.0% from the previous quarter and 32.5% from the third quarter of 2010. Adjusted EBITDA for the quarter was $88 million, a 7.8% increase compared to the second quarter of 2011 and a 28.5% increase compared to the third quarter of 2010. http://www.rackspace.com

Ceragon Posts Q3 Sales of $116 Million

Ceragon Networks reported record Q3 revenues of $116.1 million, up 86% from $62.3 million for the third quarter of 2010, and up 5% from $110.4 million in the second quarter of 2011. Net loss (GAAP) was ($6.7) million or ($0.19) per basic share and diluted share, compared to net income of $4.6 million in the third quarter of 2010, or $0.13 per basic share and diluted share. Gross margin on a GAAP basis in the third quarter of 2011 was 29.7% of revenues, compared to GAAP gross margin of 21.4% in the second quarter of 2011. Cash and cash investments at the end of the quarter were $45.9 million.


"We are pleased to report another quarter of excellent progress with the integration leading to a sequential increase in revenues, improved gross margin and profitability," said Ira Palti, President and CEO of Ceragon. "Business remains good with our book-to-bill ratio for the first nine months of 2011 above one," continued Mr. Palti. "We expect to continue growing revenues, probably at a slower pace than originally expected because we cannot ignore the macro economic uncertainty and the issues in India affecting order patterns. Our plan to migrate customers to lower-cost higher functionality and capacity products is proceeding smoothly, and we continue to expect we will reach our gross margin target of the mid-30s by the end of next year. Given the current level of visibility, we believe targeting a non-GAAP operating margin of 8%-9% by the end of 2012 is realistic."


Geographical breakdown, third quarter of 2011:


Europe: 17%

Africa: 17%

North America: 13%

Latin America: 25%

India: 12%

APAC: 16%
http://www.ceragon.com
  • Earlier this year, Ceragon Networks acquired Nera Networks AS (NAS), a supplier of long-distance microwave radios, for approximately $48.5 million on a cash-free/debt free basis from Eltek ASA.


    Ceragon said the deal offers a long-range radio portfolio, as well as substantial presence in Latin America and Africa, advancing its goal of becoming the leading supplier of wireless backhaul solutions. Nera's geographic focus complements Ceragon's position in Europe, Asia and North America, and adds experienced, professional services staff and capabilities around the world. Nera Networks, which has its headquarters in Bergen, Norway, traces its history back to 1947. The company has about 800 employees with regional offices in Europe, the Americas, Middle East, Africa and Asia (through Nera Telecommunications Ltd., a separate company listed in Singapore).

Private Investors to Acquire Tekelec for $780 Million

A consortium led by Siris Capital Group has proposed to acquire Tekelec for approximately $780 million, or $11.00 per share in cash, representing an 11% premium over the closing price on November 4, 2011, and a 38% premium over the 30 day trading average.


Last month, Tekelec announced a $20 million Diameter Signaling Router related order, the largest Diameter Signaling Router order in its history.

Following the buyout, Tekelec's management team is expected to remain in place, and Merle Gilmore, former President of Motorola's Communications Enterprise and Chairman of the Board of Airvana Network Solutions Inc., will serve as Tekelec's Executive Chairman following the closing.


"Tekelec presents a unique opportunity to acquire market leading products in the Signaling, Policy, and Diameter Routing markets, a global customer base that includes 16 of the top 20 wireless service providers, and a highly skilled employee workforce,�? said Merle Gilmore. “We will continue investing in and building on Tekelec's reputation for innovation, scalability and reliability to extend the company's mobile data products to new markets and applications."


Separately, Tekelec reported Q3 2011 revenue of $106.2 million, down 2% compared to $108.3 million for the third quarter 2010. Orders were $67.9 million for the quarter, down 16% from the same period in 2010. The orders decline was across both the Global Signaling Solutions and Broadband Network Solutions business units. GAAP gross margins for third quarter 2011 were 60% compared to 55% in third quarter 2010. On a GAAP basis, the Company reported earnings for third quarter 2011 of $0.8 million, or $0.01 per diluted share, compared to a net loss in third quarter 2010 of $0.1 million, or ($0.00) per share. GAAP operating margins were 4% for third quarter 2011 up from 0% for third quarter 2010. Included in the company's third quarter 2011 GAAP operating results is a restructuring charge of $5.2 million.
http://www.tekelec.comTekelec's integrated Home Subscriber Server (HSS) address resolution database and its LTE Diameter Signaling Router (DSR) have been deployed by a tier-one North American Service Provider. This allows the service provider to scale LTE services by routing Diameter messages to the appropriate HSS in the network.


Tekelec's LTE products include:


Home Subscriber Server which serves as the central authentication and mobility management point in LTE Evolved Packet Core and IMS networks, and supports the latest 3GPP standards, including Idle-Mode Signaling Reduction. The HSS is an application on Tekelec's Subscriber Data Server, which also includes the Subscriber Profile Repository (SPR), the Equipment Identity Register (EIR), the next-generation Home Location Register (ngHLR) and an HLR-proxy to ensure seamless 3G/LTE services and device management.


Diameter Signaling Router, which scales and manages services and applications in LTE core networks for hundreds of millions of subscribers. The DSR centralizes routing, traffic management and load-balancing tasks associated with Diameter traffic.


Policy Server, a Policy and Charging Rules Function (PCRF) that integrates with the HSS and acts as the brain for policy coordination, dynamic bandwidth control, charging, consumption and other factors for a subscriber's entire data session.


Performance Intelligence Center (PIC), a performance management system that converts network traffic information into useful business intelligence for service providers to improve the customer experience. The PIC integrates with the DSR to eliminate the need for additional probes and network elements to analyze how subscribers are using IP-enabled devices and applications. In addition, Tekelec added the PIC troubleshooting features to the core DSR platform to continuously monitor the DSR's performance.


Each of these products runs on Tekelec's EAGLE XG middleware platform, built to meet the core network scalability needs of the world's largest networks.

Ericsson: 40% of Smartphone Users Check Email Before Getting Out of Bed

Ericsson issued a new Traffic and Market Data report based on measurements it conducts with major carriers worldwide.


Some key findings:


  • Total smartphone traffic will triple in 2011.


  • Global mobile penetration is now at 82 percent.


  • The total number of mobile subscriptions worldwide is at around 5.8 billion.


  • Around 75 percent of subscriptions are GSM. 14 percent are WCDMA/HSPA.


  • Mobile data surpassed voice in Q4 2009 and doubled voice in Q1 2011.


  • Mobile data traffic is expected to grow by nearly 60 percent per year between 2011 and 2016, mainly driven by video.


  • By 2016, Ericsson predicts LTE will have roughly the same population coverage as WCDMA/HSPA had in 2010, which is around 35 percent. The company expects WCDMA/HSPA will remain the leading mobile access technology for many years to come.


  • Ericsson expects traffic generated by advanced smartphones to increase 12-fold to roughly equal mobile PC-generated traffic by 2016.


  • Mobile broadband subscriptions will reach almost 5 billion, up from the expected 900 million by the end of 2011.


  • Almost 40 percent of smartphone owners globally use the internet before getting out of bed.


The full 24-page report is posted online.
http://www.ericsson.comhttp://hugin.info/1061/R/1561267/483187.pdf

Rackspace Sees Continued Growth in Data Center Hosting

Rackspace Hosting is now home to 78,717 servers, up from 74,028 servers at the end of the previous quarter, and total customers increased to 161,422, up from 152,578 at the end of the previous quarter. Net revenue for the third quarter of 2011 was $265 million, up 7.0% from the previous quarter and 32.5% from the third quarter of 2010. Adjusted EBITDA for the quarter was $88 million, a 7.8% increase compared to the second quarter of 2011 and a 28.5% increase compared to the third quarter of 2010. http://www.rackspace.com

Telefónica Invests in Quantenna for "Full-11n" 5GHz chipsets

Telefónica has made a strategic investment in Quantenna Communications, a start-up based in Fremont, California that specializes in "ultra-reliable" Wi-Fi networking for whole home entertainment. The partnership gives Telefónica access to the latest Quantenna technology for the deployment of high performance video services to the home. Financial terms were not disclosed.


Quantenna's family of "Full-11n" 5GHz chipsets uses the company's cost-optimized, third-generation 4x4 MIMO technology to deliver up to 600 Mbps of bandwidth inside the home. The chipsets enable manufacturers to build products for delivering IPTV and other video streaming and data distribution services throughout the home over an ultra-reliable, high-performance Wi-Fi connection.


“Investing in up-and-coming technology companies is a core part of the Telefónica Digital strategy as we look to build our capabilities in order to succeed in the digital space,�? said Matthew Key, Chairman & CEO, Telefónica Digital. “Quantenna's technology will be a core component of our growth strategy for IPTV deployments in Europe and Latin America.�?http://www.quantenna.com http://www.telefonica.com

Mu Dynamics Deliver LTE Network Simulation for Stress Testing

Mu Dynamics introduced a testing solution that uses real application traffic to quickly determine how mobile users and devices impact 4G LTE networks. The new Mu Studio for LTE, which was developed in partnership with Aricent, allows the operator to simulate hundreds of popular applications over GTP tunnels, thereby providing a unique insight into how applications impact the mobile network from a performance and security standpoint.



By using real application traffic, the Mu Studio for LTE can assess how the Evolved Packet Core (EPC) will perform in real-world conditions and with rapidly changing application traffic profiles. Competing network testing solutions typically focus on the tunnels that deliver traffic, versus the applications running over them. The company said its solution can test the following key use-cases:

Application Detection: To verify systems accurately detect and control specific applications and security attacks on the 4G LTE network.

Billing and Charging: To ensure that billing and charging functions are accurately operating based on specific applications and users.

Application QoS: To ensure that application-specific Quality of Service (QoS) policies such as rate limiting, prioritization, Maximum Bit Rate (MBR), Guaranteed Bit Rate (GBR) are functioning correctly under production loads.

Scalability: To validate that the 4G LTE architecture can scale to the expected levels of users with acceptable performance.

Resiliency: To ensure that the 4G LTE architecture can efficiently manage unexpected application traffic inputs.

"As we continue to see an explosion of applications across 4G LTE networks, it becomes more and more critical to test those networks not only for traffic volume, but also for how the network is impacted by the specific applications themselves," said Dave Kresse, chief executive officer, Mu Dynamics. "Only Mu Studio for LTE, with its integrated store of thousands of ready-to-run application tests, enables mobile operators to test how these applications will impact their 4G LTE networks, ensuring that their subscribers experience superior network performance and security."

http://www.mudynamics.com

GE Teams with Juniper on Ruggedized Routers for the Military

GE Intelligent Platforms is collaborating with Juniper Networks (to develop a family of rugged, highly secure routing and network security appliances designed for military/aerospace deployment in harsh environments where security of data is paramount.

With military forces increasing adopting network-centric approach to battlefield operations and systems design, the companies see a requirement for purpose-built rugged routers with advanced security capabilities. Cybersecurity for the devices is a top concern and built-in features include intrusion prevention and detection, firewalls, packet inspection, authentication and access control.

The resulting solutions will be sold by GE Intelligent Platforms.

The RTR8GE is the first product to be announced. A battle-ready, rugged and security-focused network router, it features the field-tested Junos operating system from Juniper Networks. Its firewall, intrusion prevention and detection, and extensive quality of service capabilities enable secure IPv4/IPv6 connectivity for military vehicles, aircraft and forward operating bases supporting net-centric operations. The RTR8GE has eight Gigabit Ethernet ports integrated in a SWaP-optimized enclosure that meets the demanding environmental requirements of military/aerospace applications.

The RTR8GE router supports radio-aware router protocols that monitor network efficiency, available bandwidth and regulate traffic flow, choosing the most efficient network route in mobile, ad-hoc battlefield network environments. It also includes anti-tamper protection and information-assurance technologies in recognition of the sensitive nature of the data it is designed to transport.

http://www.ge-ip.com  http://www.juniper.net

Friday, November 4, 2011

NTT Docomo Sets Sights on "Shaping a Smart Life"

NTT Docomo outlined its medium-term vision of transforming from Japan's largest mobile operator into an Integrated Service company with a mobile network at its core. The three-year plan calls for a rapid expansion of new services aimed at "Shaping a Smart Life" at a personalized level for each of its tens of millions of users. In short, Docomo seeks to become a Personal Life Agent by leveraging smartphones, a fully deployed LTE-Advanced network, artificial intelligence and cloud computing.


Docomo plans to serve a wide range of smartphones and tablets through its own original content portal and marketplace for third party applications and services. The company will continue to offer its own line of LTE smartphones with advanced features such as e-wallet, new media broadcasting, location services and earthquake warnings. The network will deliver security capabilities such as anti-phishing, parental controls, spam filtering, and remote monitoring and support.


New technologies for the mid-term include smartphone sensor "jackets" for detecting environmental conditions such as radiation, UV exposure, body temperature, blood pressure, blood alcohol level, and even bad mouth odors. Better battery technology will bring super-rapid charging in about 10 minutes. Docomo also sees the incorporation of gesture technologies, better voice recognition, etc. by 2015.


Docomo will strive to increase its total smartphone subscriptions to 40 million by FY2015, including 30 million using its Xi LTE service.


Docomo is accelerating the expansion of its "Xi" LTE network with the target of achieving nationwide population coverage of 98% in FY2014. Over this period, the maximum downstream data throughput rate will be increased to 100 Mbps. This will be accomplish with the introduction of LTE -Advanced over the same period. After 2015, Docomo envisions LTE-Advanced scaling to Gigabit speed downloads through the use of higher MiMO and additional spectrum.


Maximum data throughput rates will be increased to 100 Mbps nationwide by FY 2014 with the introduction of LTE -Advanced.


While the projected data traffic growth will be 12x by 2015, Docomo hopes to increase its packet revenues by 1.5x to reach 2.7 trillion yen in FY2015. Accommodating this traffic growth also requires a number of countermeasures, including the use of new spectrum, the implementation of small-cell architecture, traffic management for the heaviest data users, new tiered pricing schemes, and the expansion of Wi-Fi offload. Docomo will increase the number of public Wi-Fi hotspots from 30,000 to 100,000.


The real transformation into an Integrated Services company will occur through the convergence of the advanced mobile network with other industries. Docomo plans to lead the way by becoming a Personal Life Agent in broadcasting & content recommendations, personal and vehicular navigation, personal health monitoring, personal data storage, personal memory storage (photo and video archiving), mobile banking and mobile commerce. Docomo plans to increase the financial investments it has made in start-ups operating in each of these sectors. Revenue targets for 2015 have now been set in these sectors. Overall, the company aims to expand the revenue of these New Businesses to approximately 1 trillion yen by FY2015, about 2.5 times the current run rate.


Cloud services and artificial intelligence will be the key enablers for these New Businesses.


Docomo is also looking to boost its international presence by promoting this "platform" vision with other carriers. It holds strategic investments in a number of key telecom carriers and has formed strategic alliances with others.


In addition, Docomo is moving ahead to implement key learning from the Great East Japan Earthquake. These include:



  • Enhancing its ability to quickly deploy large scale base stations following a major disaster


  • Securing base station power supplies for extended electrical outage.


  • Ensuring the swift provisioning of satellite mobile phones following a major disaster


  • Increasing the usage of microwave backhaul and satellite circuits as a back-up to fiber connections.



http://www.nttdocomo.com

Thursday, November 3, 2011

Alcatel-Lucent's Q3 Revenue Slips to Euro 3,797 million

Alcatel-Lucent reported a disappointing Q3 with overall revenue decreasing 6.8% year-over-year and 2.7% sequentially to Euro 3,797 million. At constant currency exchange rates and perimeter, revenue decreased 0.7% year-over-year and decreased 3.8% sequentially. Reported net income (group share) was Euro 194 million or Euro 0.08 per share.


Some key trends for the period:

  • Sales were strong in North America with a year-over-year increase of 10%, and in the Rest of World, especially in Central and Latin America with sustained double digit growth rate. Asia Pacific as well as Europe witnessed a double digit rate declines.


  • Networks saw a low single digit decrease this quarter, reflecting mixed trends.


  • IP, the fastest growing division, followed by Wireless, driven by CDMA and LTE. Revenues for the IP division were Euro 376 million, a 2.7% increase from the year-ago quarter. Revenues for the Wireless division were Euro 1,032 million, a decrease of 3.4% from the year-ago quarter. At constant currency exchange rates, wireless revenues increased 2.8% year-over-year.


  • Within Wireline, PON technologies maintained a strong progression, more than offset by a decline of IPDSLAM and legacy products.


  • In Optics, both terrestrial and submarine declined at a high single digit rate.


  • Software, Services & Solutions decreased at a low single digit rate. Within that segment, the slight growth in Services was driven by Network & System Integration and Managed Services, offset by a decline in Network Applications.


  • Enterprise witnessed a strong quarter, driven by Genesys and Data networking.


“We are reducing our costs and increasing our profitability. However, we are not at a level we are satisfied with. And given economic uncertainties, we will take more radical actions to accelerate our transformation and reduce quickly our costs structure, especially in Europe. This will generate additional savings in 2012 of € 200 million in fixed costs addressing mainly our SG&A spending and € 300 million in variable costs addressing mainly project and delivery efficiency. For the remaining part of 2011, given these market uncertainties, and selective spending from our customers, especially in Europe, we now expect weaker revenues there than initially planned in the fourth quarter of 2011," stated Ben Verwaayen, Alcatel-Lucent's CEO.
http://www.alcatel-lucent.com

AT&T Sees T-Mobile Deal Closing in Q2 2012

AT&T pushed back the expected timeline for its closing its acquisition of T-Mobile USA. In an SEC filing, the company said it expects the deal to close in Q2 2012.


The deal was first announced on 31-March-2011.
http://www.att.com

United Airlines to Equip Aircraft with Wi-Fi from Panasonic

The entire United Continental mainline aircraft fleet will be equipped with Wi-Fi by 2015. United Continental has selected Panasonic Avionics Corporation to provide Wi-Fi connectivity on more than 300 United Airlines and Continental Airlines mainline aircraft beginning in mid-2012. The airline expects to install the Panasonic system on Airbus 319 and 320 and Boeing 747, 757, 767, 777 and 787 aircraft. Customers will be able to use their wireless devices such as laptops, smart phones and tablets onboard those aircraft to connect with internet service using the in-flight hotspot.


Panasonic said its Ku-band satellite technology offers faster speed than air-to-ground technology (ATG) and will provide connectivity on flights worldwide. The system will also enable wireless streaming of video content.


"Our customers tell us they value Wi-Fi," said Jim Compton, United's executive vice president and chief revenue officer. "As a global carrier, we selected satellite-based Ku-band technology to enable customers to stay connected on long-haul overseas flights, something no other U.S.-based international carrier currently offers."


Continental Airlines previously announced plans to install satellite-based Wi-Fi on more than 200 DIRECTV®-equipped aircraft beginning in 2012.
http://www.united.com

Sprint Moves Ahead with $4 Billion in Financing

Sprint moved ahead with the pricing of its previously announced offering of $1 billion of 1.5% notes due 2021 and $3 billion aggregate principal amount of 9% guaranteed notes due 2018.


Sprint said it will use the funds for general corporate purposes, which may include, among other things, redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire.
http://www.sprint.com

Alcatel-Lucent's Q3 Revenue Slips to Euro 3,797 million

Alcatel-Lucent reported a disappointing Q3 with overall revenue decreasing 6.8% year-over-year and 2.7% sequentially to Euro 3,797 million. At constant currency exchange rates and perimeter, revenue decreased 0.7% year-over-year and decreased 3.8% sequentially. Reported net income (group share) was Euro 194 million or Euro 0.08 per share.


Some key trends for the period:

  • Sales were strong in North America with a year-over-year increase of 10%, and in the Rest of World, especially in Central and Latin America with sustained double digit growth rate. Asia Pacific as well as Europe witnessed a double digit rate declines.


  • Networks saw a low single digit decrease this quarter, reflecting mixed trends.


  • IP, the fastest growing division, followed by Wireless, driven by CDMA and LTE. Revenues for the IP division were Euro 376 million, a 2.7% increase from the year-ago quarter. Revenues for the Wireless division were Euro 1,032 million, a decrease of 3.4% from the year-ago quarter. At constant currency exchange rates, wireless revenues increased 2.8% year-over-year.


  • Within Wireline, PON technologies maintained a strong progression, more than offset by a decline of IPDSLAM and legacy products.


  • In Optics, both terrestrial and submarine declined at a high single digit rate.


  • Software, Services & Solutions decreased at a low single digit rate. Within that segment, the slight growth in Services was driven by Network & System Integration and Managed Services, offset by a decline in Network Applications.


  • Enterprise witnessed a strong quarter, driven by Genesys and Data networking.


“We are reducing our costs and increasing our profitability. However, we are not at a level we are satisfied with. And given economic uncertainties, we will take more radical actions to accelerate our transformation and reduce quickly our costs structure, especially in Europe. This will generate additional savings in 2012 of € 200 million in fixed costs addressing mainly our SG&A spending and € 300 million in variable costs addressing mainly project and delivery efficiency. For the remaining part of 2011, given these market uncertainties, and selective spending from our customers, especially in Europe, we now expect weaker revenues there than initially planned in the fourth quarter of 2011," stated Ben Verwaayen, Alcatel-Lucent's CEO.
http://www.alcatel-lucent.com

AT&T Sees T-Mobile Deal Closing in Q2 2012

AT&T pushed back the expected timeline for its closing its acquisition of T-Mobile USA. In an SEC filing, the company said it expects the deal to close in Q2 2012.


The deal was first announced on 31-March-2011.
http://www.att.com

See also