Wednesday, November 30, 2011

Ericsson Exits PC Modules for Mobile Broadband

Ericsson has decided to phase out its business of supplying PC modules for mobile broadband access. The company said that it began supplying PC modules in 2007 in order to spur the market for mobile broadband, but now that this segment is well established, it will focus its efforts on supplying carrier infrastructure while letting it ST-Ericsson joint venture focus on this aspect of mobile connectivity.
http://www.ericsson.com

Sprint Extends Funding and WiMAX & LTE Partnership with Clearwire

Sprint Nextel and Clearwire reached agreements valued at up to $1.6 billion over the next four years in payments for WiMAX services, possible pre-payments for LTE services and potential equity investments. The agreements further align Clearwire's LTE network build as a complement to Sprint's Network Vision strategy.


Key points:

  • Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013,


  • Long-term usage-based pricing is established for WiMAX services in 2014 and beyond.


  • Sprint will have access to Clearwire's WiMAX network through at least 2015.


  • Plans lay the foundation for the deployment of Clearwire's LTE Advanced-ready overlay network and outline the terms for Sprint to gain access to the additional LTE capacity.


  • Clearwire's TDD-LTE rollout will capitalize on its deep spectrum resources.


  • Sprint will pay Clearwire up to $350 million in a series of prepayments over a period of up to two years for LTE capacity if Clearwire achieves certain build-out targets and network specifications by June 2013.


  • Long-term usage-based pricing for LTE services is established for 2012 and beyond.


  • Clearwire and Sprint will collaborate on a network build plan and will jointly select LTE macro-cell sites to cover Sprint's high usage area “hotspots.�?


  • Clearwire plans to seek additional funding before initiating the build-out of its LTE Advanced-ready network. Sprint may participate in an equity offering on a pro rata basis up to $347 million.


  • Clearwire and Sprint will work collaboratively to support the ecosystem for TDD-LTE in Band Class 41 for devices, chipsets and standards.


  • Sprint expects to launch devices including laptop cards and phones that will utilize Clearwire's TDD-LTE network in 2013.


“These agreements are a result of the technical MOU we outlined during our third quarter results call and extend our relationship with Clearwire,�? said Dan Hesse, Sprint CEO. “It provides Sprint improved pricing, allows us to continue to provide WiMAX 4G services to our customers today and to new customers in the future and provides additional LTE capacity to help complement our Network Vision strategy and meet our customers' growing data demands.�?http://www.sprint.com
http://www.clearwire.com

Windstream Emerges as Formidable National Telecom Player

Windstream completed its previously announced acquisition of PAETEC Holding Corp. for approximately $2.3 billion.


PAETEC is a competitive local exchange carrier and provides telecommunications services primarily to business customers in 46 states and the District of Columbia. The company operates seven data centers in the U.S. and owns approximately 36,700 route miles of fiber in portions of 39 states and the District of Columbia. It has approximately 5,000 employees, including about 875 in the Rochester, N.Y. area. The company was founded in 1998.


Windstream, headquartered in Little Rock, Ark., is an S&P 500 company with operations in 29 states and the District of Columbia and about $4 billion in annual revenues. Windstream provides IP-based voice and data services, MPLS networking, data center and managed hosting services and communication systems to businesses and government agencies. The company also delivers broadband, digital phone and high-definition TV services to residential customers primarily located in rural areas and operates a local and long-haul fiber network spanning approximately 60,000 route miles.


The new combined company will serve business customers in 46 states and the District of Columbia and maintain approximately 100,000 fiber route miles across the country. Windstream will offer data center services across the United States and have improved capability to serve multi-location business customers. It would have had $6.1 billion in total revenue and about $2.4 billion in adjusted operating income before depreciation and amortization, which excludes non-cash pension expense, restructuring charges and stock-based compensation expense, on a pro forma basis for the last 12 months ended March 31, 2011. Business and broadband revenues would have comprised approximately 70 percent of total revenue.
http://www.windstream.com
  • In December 2010, PAETEC acquired privately-owned Cavalier Telephone for $460 million, making it one of the largest competitive local communication service providers in the United States. The acquisition includes Cavalier's wholly owned subsidiary, Intellifiber Networks, which operates a high capacity fiber network spanning approximately 16,600 route miles and representing over $2 billion of investment by companies Cavalier acquired over the last decade. The expansive 11,947 route-mile intercity network spans the Midwest and Eastern U.S., as well as 4,681 route miles throughout several existing PAETEC metro areas, allowing for broad connectivity options for customers. With this deal complete, PAETEC now has over 10,600 metro fiber-route miles, over 36,700 total fiber-route miles, and 1,178 collocations to support connectivity to enterprise businesses nationwide.


  • In June 2010, Windstream acquired Iowa Telecommunications Services, Inc. in a transaction valued at approximately $1.2 billion. As of March 31, 2010, Iowa Telecom provided service to approximately 249,000 access lines, 96,000 high-speed Internet customers and 27,500 digital TV customers in Iowa and Minnesota.


  • In July 2006, Alltel completed the spin off its wireline business, which was merged with VALOR Communications Group to create Windstream, a major wireline operator focused on the rural U.S. market.


  • In 2007, Windstream acquired CT Communications (NASDAQ: CTCI) for $585 million, adding approximately 158,000 access lines and 29,000 broadband customers. CT Communications served residential and business customers located primarily in North Carolina.

  • Windstream is based in Little Rock, Arkansas.

AT&T Blasts FCC's Staff Report -- "Logical Inconsistencies"

AT&T harshly criticized the recently released FCC report which found its proposed acquisition of T-Mobile USA would hurt competition. Two points in its stinging rebuke stand out.


First, AT&T notes that the FCC incorrectly assumes that it will expand its LTE network to rural areas of the country even if the merger fails. Likewise, the FCC assumes that Deutsche Telekom will continue to invest in the T-Mobile USA network and upgrade it to LTE if the merger fails. Neither of these conclusions is supported by facts, claims AT&T.


Secondly, on the issue of whether the merger would create jobs or not, AT&T notes that the FCC holds a much different opinion of its own broadband stimulus programs. The FCC's report concludes that the billions of dollars in additional capital investment promised by AT&T to bring LTE to rural America would create no new jobs and spur no new investment by others. However, FCC recently announced that its own $4.5 billion Connect America broadband fund will create “approximately 500,000 jobs and $50 billion in economic growth over the same period.�?


"This notion — that government spending on broadband deployment creates jobs and economic growth, but private investment does not—makes no sense," stated Jim Cicconi, AT&T Senior Executive Vice President of External & Legislative Affairs.http://attpublicpolicy.com/wireless/att-response-to-fcc-staff-report/

Huawei Opens Global Network Operation Center in Bangalore

Huawei inaugurated a new Global Network Operations Center (GNOC) in Bangalore. The facility will offer a wide range of managed services capabilities that will meet the current and future needs of Huawei's operator customers, enabling them to substantially improve their network quality, leverage network investment, and reduce operating costs.


Huawei also operates a Network Operation Center (NOC) located in New Delhi.
http://www.huawei.com

Avago Posts Record Revenue of $623 Million, up 3% Sequentially

Avago Technologies reported record net revenue of $623 million, an increase of 3 percent compared with the previous quarter, and up 9 percent from the same quarter last year. Fourth quarter net income was $154 million, or $0.61 per diluted share, up from $144 million, or $0.57 per diluted share last quarter, and net income of $164 million, or $0.66 per diluted share in the same quarter last year. Gross margin was $304 million, or 48.8 percent of net revenue. This compares with gross margin of $297 million, or 49.3 percent of net revenue last quarter, and gross margin of $276 million, or 48.3 percent of net revenue in the same quarter last year.


“Despite a slowdown in our Industrial market, we delivered sequential revenue growth in the fourth quarter as we ramped with next generation smartphones,�? said Hock Tan, President and CEO of Avago Technologies Limited. “However, looking to the first quarter, we expect a seasonal slow-down in handsets while the supply chain contraction in our Industrial market continues.�?http://www.avagotech.com

LightSquared Signs Smarter Car for Remote Vehicle Diagnostics

LightSquared announced a wholesale mobile data deal with Smarter Car, a start-up planning to offer a remote diagnostics tool for automobile dealerships. Smarter Car will sell devices and connectivity directly to automobile dealerships who will in turn offer these as options to customers when they purchase new cars. The Smarter Car device will attach to an On-Board Diagnostics (OBD)-specified port and, using LightSquared's 4G-LTE network, will allow drivers and dealerships to use smart phones, tablets or PCs to access and analyze a variety of data about the car. LightSquared's satellite will ensure nationwide coverage.
http://www.lightsquared.comhttp://smartercar.com/

Charter Boosts Speeds, Keeps Pricing the Same

Charter, the fourth-largest cable operator in the United States, is boosting its consumer download and uploads speeds across its DOCSIS 3.0 network while keeping the pricing the same.


The company is increasing Charter Internet Express download speeds from 12 Mbps to up to 15 Mbps, and increasing upload speeds from 1 Mbps to up to 3 Mbps. Charter Internet Plus download speeds are being increased from 18 Mbps to up to 30 Mbps, and upload speeds are being increased from 2 Mbps to up to 4 Mbps. Charter's fastest residential offering is increasing from 60 Mbps download to up to 100 Mbps download with 5 Mbps upload, and has been renamed Charter Internet Ultra100 to reflect the significant enhancement. Express and Plus speeds are also increasing in the remaining portions of Charter's service areas nationwide.
http://www.charter.com

Controversy Builds for Carrier IQ Mobile Analytics

Carrier IQ, a privately held developer of mobile analytic software, faced increased criticism from mobile users and privacy advocates following published reports and analysis by Trevor Eckhart that Carrier IQ software is being used to secretly record and transmit highly detailed usage data.


U.S. Senator Al Franken, Chairman of the Senate Subcommittee on Privacy, Technology and the Law, published an open letter requesting Carrier IQ to explain whether its software in fact logs users' location, numbers dialed, emails sent/received, text messages or any other keystrokes, and whether this data is transmitted without the user's express permission to the carrier or any other party.


Apple confirmed that while it has used Carrier IQ, the software is not included in iOS 5. Apple intends to remove it from iOS 4 completely with an upcoming software update. Apple also said that its usage was anonymous and did not include personal information.


AT&T and Sprint have both acknowledged using Carrier IQ but said that data collected is for network diagnostics and not for tracking people.


On its website, Carrier IQ claims its software is installed on approximately 141 million mobile handsets worldwide. The company has previously stated that its software is designed to help carriers improve their networks by identifying dropped calls and identify problems that hamper battery life.


In a statement, the company said its software "does not record, store or transmit the contents of SMS messages, email, photographs, audio or video. For example, we understand whether an SMS was sent accurately, but do not record or transmit the content of the SMS. We know which applications are draining your battery, but do not capture the screen."


In a press statement issued on November 16th, Carrier IQ stated:


"While we look at many aspects of a device's performance, we are counting and summarizing performance, not recording keystrokes or providing tracking tools. The metrics and tools we derive are not designed to deliver such information, nor do we have any intention of developing such tools. The information gathered by Carrier IQ is done so for the exclusive use of that customer, and Carrier IQ does not sell personal subscriber information to 3rd parties. The information derived from devices is encrypted and secured within our customer's network or in our audited and customer-approved facilities."http://www.carrieriq.com
  • In June 2010, Carrier IQ, a start-up based in Mountain View, California, raised $12 million in Series D funding for its mobile service intelligence solution. Carrier IQ's analytics platform provides real-time data to the mobile network operator directly from the source handsets of the subscribers. The platform aggregates, analyzes and delivers that data via web applications. The latest funding round was led by Bridgescale Partners, with participation from existing investors Intel Capital, Mohr Davidow Ventures, Accel Partners, Charles River Ventures, Presidio Ventures and Nauta Capital.

Lowell C. McAdam Elected Chairman of Verizon

Verizon Communications' Board of Directors elected Lowell C. McAdam as its new chairman, effective Jan. 1, 2012, replacing Ivan Seidenberg.


In addition, Melanie L. Healey, group president for North America at Procter & Gamble Co., was elected as a new member of Verizon's board, effective immediately. Verizon's board now has 12 members.
http://www.verizon.net
  • In July 2011, Verizon named Lowell C. McAdam as president and chief executive officer of Verizon Communications, replacing Ivan G. Seidenberg, who will remain chairman to continue to facilitate the transition.


    In his current role, McAdam, 57, is responsible for all business operations at Verizon, including the strategic direction of the company's products and technologies. He has served on the board of Verizon since March 2011 and on the board of Verizon Wireless since 2003, chairing the Verizon Wireless board since September 2010.


    As president and CEO of Verizon Wireless until September 2010, McAdam led the premier wireless provider with the nation's largest, most reliable wireless voice and 3G broadband data network. Prior to assuming this position in 2007, McAdam served as executive vice president and chief operating officer of Verizon Wireless from the company's inception in 2000, helping to build the industry's leading wireless company.

Ericsson Exits PC Modules for Mobile Broadband

Ericsson has decided to phase out its business of supplying PC modules for mobile broadband access. The company said that it began supplying PC modules in 2007 in order to spur the market for mobile broadband, but now that this segment is well established, it will focus its efforts on supplying carrier infrastructure while letting it ST-Ericsson joint venture focus on this aspect of mobile connectivity.
http://www.ericsson.com

Sprint Extends Funding and WiMAX & LTE Partnership with Clearwire

Sprint Nextel and Clearwire reached agreements valued at up to $1.6 billion over the next four years in payments for WiMAX services, possible pre-payments for LTE services and potential equity investments. The agreements further align Clearwire's LTE network build as a complement to Sprint's Network Vision strategy.


Key points:

  • Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013,


  • Long-term usage-based pricing is established for WiMAX services in 2014 and beyond.


  • Sprint will have access to Clearwire's WiMAX network through at least 2015.


  • Plans lay the foundation for the deployment of Clearwire's LTE Advanced-ready overlay network and outline the terms for Sprint to gain access to the additional LTE capacity.


  • Clearwire's TDD-LTE rollout will capitalize on its deep spectrum resources.


  • Sprint will pay Clearwire up to $350 million in a series of prepayments over a period of up to two years for LTE capacity if Clearwire achieves certain build-out targets and network specifications by June 2013.


  • Long-term usage-based pricing for LTE services is established for 2012 and beyond.


  • Clearwire and Sprint will collaborate on a network build plan and will jointly select LTE macro-cell sites to cover Sprint's high usage area “hotspots.�?


  • Clearwire plans to seek additional funding before initiating the build-out of its LTE Advanced-ready network. Sprint may participate in an equity offering on a pro rata basis up to $347 million.


  • Clearwire and Sprint will work collaboratively to support the ecosystem for TDD-LTE in Band Class 41 for devices, chipsets and standards.


  • Sprint expects to launch devices including laptop cards and phones that will utilize Clearwire's TDD-LTE network in 2013.


“These agreements are a result of the technical MOU we outlined during our third quarter results call and extend our relationship with Clearwire,�? said Dan Hesse, Sprint CEO. “It provides Sprint improved pricing, allows us to continue to provide WiMAX 4G services to our customers today and to new customers in the future and provides additional LTE capacity to help complement our Network Vision strategy and meet our customers' growing data demands.�?http://www.sprint.com
http://www.clearwire.com

Windstream Emerges as Formidable National Telecom Player

Windstream completed its previously announced acquisition of PAETEC Holding Corp. for approximately $2.3 billion.


PAETEC is a competitive local exchange carrier and provides telecommunications services primarily to business customers in 46 states and the District of Columbia. The company operates seven data centers in the U.S. and owns approximately 36,700 route miles of fiber in portions of 39 states and the District of Columbia. It has approximately 5,000 employees, including about 875 in the Rochester, N.Y. area. The company was founded in 1998.


Windstream, headquartered in Little Rock, Ark., is an S&P 500 company with operations in 29 states and the District of Columbia and about $4 billion in annual revenues. Windstream provides IP-based voice and data services, MPLS networking, data center and managed hosting services and communication systems to businesses and government agencies. The company also delivers broadband, digital phone and high-definition TV services to residential customers primarily located in rural areas and operates a local and long-haul fiber network spanning approximately 60,000 route miles.


The new combined company will serve business customers in 46 states and the District of Columbia and maintain approximately 100,000 fiber route miles across the country. Windstream will offer data center services across the United States and have improved capability to serve multi-location business customers. It would have had $6.1 billion in total revenue and about $2.4 billion in adjusted operating income before depreciation and amortization, which excludes non-cash pension expense, restructuring charges and stock-based compensation expense, on a pro forma basis for the last 12 months ended March 31, 2011. Business and broadband revenues would have comprised approximately 70 percent of total revenue.
http://www.windstream.com
  • In December 2010, PAETEC acquired privately-owned Cavalier Telephone for $460 million, making it one of the largest competitive local communication service providers in the United States. The acquisition includes Cavalier's wholly owned subsidiary, Intellifiber Networks, which operates a high capacity fiber network spanning approximately 16,600 route miles and representing over $2 billion of investment by companies Cavalier acquired over the last decade. The expansive 11,947 route-mile intercity network spans the Midwest and Eastern U.S., as well as 4,681 route miles throughout several existing PAETEC metro areas, allowing for broad connectivity options for customers. With this deal complete, PAETEC now has over 10,600 metro fiber-route miles, over 36,700 total fiber-route miles, and 1,178 collocations to support connectivity to enterprise businesses nationwide.


  • In June 2010, Windstream acquired Iowa Telecommunications Services, Inc. in a transaction valued at approximately $1.2 billion. As of March 31, 2010, Iowa Telecom provided service to approximately 249,000 access lines, 96,000 high-speed Internet customers and 27,500 digital TV customers in Iowa and Minnesota.


  • In July 2006, Alltel completed the spin off its wireline business, which was merged with VALOR Communications Group to create Windstream, a major wireline operator focused on the rural U.S. market.


  • In 2007, Windstream acquired CT Communications (NASDAQ: CTCI) for $585 million, adding approximately 158,000 access lines and 29,000 broadband customers. CT Communications served residential and business customers located primarily in North Carolina.

  • Windstream is based in Little Rock, Arkansas.

AT&T Blasts FCC's Staff Report -- "Logical Inconsistencies"

AT&T harshly criticized the recently released FCC report which found its proposed acquisition of T-Mobile USA would hurt competition. Two points in its stinging rebuke stand out.


First, AT&T notes that the FCC incorrectly assumes that it will expand its LTE network to rural areas of the country even if the merger fails. Likewise, the FCC assumes that Deutsche Telekom will continue to invest in the T-Mobile USA network and upgrade it to LTE if the merger fails. Neither of these conclusions is supported by facts, claims AT&T.


Secondly, on the issue of whether the merger would create jobs or not, AT&T notes that the FCC holds a much different opinion of its own broadband stimulus programs. The FCC's report concludes that the billions of dollars in additional capital investment promised by AT&T to bring LTE to rural America would create no new jobs and spur no new investment by others. However, FCC recently announced that its own $4.5 billion Connect America broadband fund will create “approximately 500,000 jobs and $50 billion in economic growth over the same period.�?


"This notion — that government spending on broadband deployment creates jobs and economic growth, but private investment does not—makes no sense," stated Jim Cicconi, AT&T Senior Executive Vice President of External & Legislative Affairs.http://attpublicpolicy.com/wireless/att-response-to-fcc-staff-report/

Huawei Opens Global Network Operation Center in Bangalore

Huawei inaugurated a new Global Network Operations Center (GNOC) in Bangalore. The facility will offer a wide range of managed services capabilities that will meet the current and future needs of Huawei's operator customers, enabling them to substantially improve their network quality, leverage network investment, and reduce operating costs.


Huawei also operates a Network Operation Center (NOC) located in New Delhi.
http://www.huawei.com

Avago Posts Record Revenue of $623 Million, up 3% Sequentially

Avago Technologies reported record net revenue of $623 million, an increase of 3 percent compared with the previous quarter, and up 9 percent from the same quarter last year. Fourth quarter net income was $154 million, or $0.61 per diluted share, up from $144 million, or $0.57 per diluted share last quarter, and net income of $164 million, or $0.66 per diluted share in the same quarter last year. Gross margin was $304 million, or 48.8 percent of net revenue. This compares with gross margin of $297 million, or 49.3 percent of net revenue last quarter, and gross margin of $276 million, or 48.3 percent of net revenue in the same quarter last year.


“Despite a slowdown in our Industrial market, we delivered sequential revenue growth in the fourth quarter as we ramped with next generation smartphones,�? said Hock Tan, President and CEO of Avago Technologies Limited. “However, looking to the first quarter, we expect a seasonal slow-down in handsets while the supply chain contraction in our Industrial market continues.�?http://www.avagotech.com

LightSquared Signs Smarter Car for Remote Vehicle Diagnostics

LightSquared announced a wholesale mobile data deal with Smarter Car, a start-up planning to offer a remote diagnostics tool for automobile dealerships. Smarter Car will sell devices and connectivity directly to automobile dealerships who will in turn offer these as options to customers when they purchase new cars. The Smarter Car device will attach to an On-Board Diagnostics (OBD)-specified port and, using LightSquared's 4G-LTE network, will allow drivers and dealerships to use smart phones, tablets or PCs to access and analyze a variety of data about the car. LightSquared's satellite will ensure nationwide coverage.
http://www.lightsquared.comhttp://smartercar.com/

Charter Boosts Speeds, Keeps Pricing the Same

Charter, the fourth-largest cable operator in the United States, is boosting its consumer download and uploads speeds across its DOCSIS 3.0 network while keeping the pricing the same.


The company is increasing Charter Internet Express download speeds from 12 Mbps to up to 15 Mbps, and increasing upload speeds from 1 Mbps to up to 3 Mbps. Charter Internet Plus download speeds are being increased from 18 Mbps to up to 30 Mbps, and upload speeds are being increased from 2 Mbps to up to 4 Mbps. Charter's fastest residential offering is increasing from 60 Mbps download to up to 100 Mbps download with 5 Mbps upload, and has been renamed Charter Internet Ultra100 to reflect the significant enhancement. Express and Plus speeds are also increasing in the remaining portions of Charter's service areas nationwide.
http://www.charter.com

See also