Thursday, May 24, 2012

Infonetics: Carrier IP Edge Router/Switch Markets Grows in North America

The global service provider router and switch market, which includes IP edge routers, IP core routers, and carrier Ethernet switches (CES), sequentially decreased 14% to $3.3 billion in the first quarter of 2012 (1Q12), according to a new report from Infonetics Research. From the year-ago first quarter, the market is essentially flat, down just 1%. However, the North American market was up a very healthy 27% quarter-over-quarter and up 9% from the year-ago first quarter.

Some highlights:

Service provider routers and switches are the second largest telecom market segment in 2011 total revenue (~$14.5 billion) after mobile RAN spending ($30+ billion),

Cisco, Alcatel-Lucent, and Juniper all gained IP Edge market share in the first quarter, Cisco the most by far, increasing its share from about 31% to about 39% quarter-over-quarter,

In 1Q12, Cisco, Juniper, and Huawei together took 96% of global core router revenue. However, Alcatel-Lucent is entering this space with its new 7950 core router. 

Bharti Acquires 49% Stake in Qualcomm AP's India BWA

Bharti Airtel will acquire a 49% interest in Qualcomm Asia Pacific's (Qualcomm AP) Indian BWA entities for approximately US$165 million. This unit holds BWA licenses in Delhi, Mumbai, Haryana and Kerala. The agreement contemplates that once commercial operations are launched, subject to certain terms and conditions, Bharti would assume complete ownership and financial responsibility for the BWA entities by the end of 2014.

Bharti already has BWA licenses in four circles - Kolkata, Karnataka, Punjab and Maharashtra - and 3G licenses in thirteen circles in India. With this agreement, Bharti has secured a nation-wide broadband leadership through a combination of 4G and 3G, with its own networks in 18 circles. Bharti has already taken the lead in LTE TDD space by launching 4G services in Kolkata and Karnataka Circles.

"One of our key objectives has been to include a strong partner in the Indian venture with the scale, experience and resources to deploy LTE TDD networks. We are pleased to have Bharti's participation and support in this effort," said Dr Paul E Jacobs, chairman and CEO of Qualcomm. "GHC and Tulip have been great partners in facilitating this transaction. Qualcomm remains dedicated to the continued progress and success of the BWA venture and to fulfilling our commitment as a key equity stakeholder." 

NTT Comm Extends VPLS in Europe

NTT Communications is extending its Virtual Private LAN Services (VPLS) for customers in Europe. The VPLS offering now provides layer 2 Ethernet capabilities in 30 countries across Europe, backed by 24x7 customer support, customer portal access and leading SLA. The service delivers multipoint, multi-site to multi-site connectivity within this extensive EU footprint. 

Pandora Reaches 51.9 million Listeners, Growing 53% YOY

The Pandora Internet radio service is now averaging 51.9 million users per month. Total listener hours for the most recent quarter grew 92% to approximately 3.09 billion, compared to approximately 1.6 billion for the same quarter last year.

"Pandora is off to an excellent start, exceeding our first quarter outlook and raising our expectations for the full fiscal year," stated Joe Kennedy, Chairman & CEO of Pandora. "This quarter Pandora averaged more than 50 million active users a month who generated more than 3.09 billion listening hours across Pandora's multiple platforms – desktop, auto, consumer electronics, and mobile devices. Consumers continue to embrace Pandora's unparalleled personalized radio experience at an extraordinary rate, propelling Pandora's market leadership to an all-time record share of 5.95% of total U.S. radio listening. Advertisers want to be everywhere their consumers are. They are moving quickly to speak with their target customers across the Pandora platform, with the majority of the top 50 digital advertisers in the U.S. already having bought multiplatform advertising on Pandora. Pandora is the future of radio." 

Intel Invests $40 Million in University Research Centers

Intel disclosed plans to invest more than $40 million over the next 5 years in a university research centers worldwide.

The "Intel Collaborative Research Institutes" (ICRI) program will bring together experts from academia and industry to invent the future of technology. The new investment provides for the ICRI for Sustainable Connected Cities in the United Kingdom; ICRI for Secure Computing in Germany; and the ICRI for Computational Intelligence in Israel. In addition, two previously established centers are being incorporated in the ICRI program: Intel Visual Computing Institute (Saarland University) and the Intel-NTU Connected Context Computing Center (National Taiwan University), extending Intel’s global research network even further.

The company already runs a series of U.S.-based Intel Science and Technology Centers (ISTCs).

"The new Intel Collaborative Research Institute program underscores our commitment to establishing and funding collaborative university research to fuel global innovation in key areas and help address some of today’s most challenging problems,” said Justin Rattner, chief technology officer at Intel. “Forming a multidisciplinary community of Intel, faculty and graduate student researchers from around the world will lead to fundamental breakthroughs in some of the most difficult and vexing areas of computing technology.” 

Wednesday, May 23, 2012

NTT Invests in Philippines

NTT Communications plans to acquire a 50.1% stake in the Diversified Technology Solutions International (DTSI) Group of the Philippines. Financial terms were not disclosed.

DTSI Group accounts for 60% of all seats in contact centers currently operating in the Philippines. Also, Anthem, Inc., a DTSI Group company, is forecasting high growth for its business of building and leasing contact center platforms to companies looking to start up IT-BPO businesses in the Philippines. 

iBasis Envisions an LTE Signaling Exchange (LSX) for Roaming

iBasis is preparing to launch an LTE Signaling Exchange (LSX) to allow MNOs to connect to hundreds of other operators through a single interconnect and assure LTE Roaming interoperability across multiple vendors.

iBasis sees a need for an LTE Signaling Exchange as a result of the disruptive nature of LTE and the evolution from traditional SS7 (MAP) signaling to IP-based Diameter signaling. Because implementations of LTE roaming can vary widely from operator to operator, iBasis believes the traditional model of bilateral roaming agreements between operators will prove to be technically complicated and commercially unscalable.

The iBasis LSX will run on iBasis’ IPX network, a multiservice, global IP network that delivers high quality voice and data services for mobile operators.

UNE, a leading telco based in Colombia, and Dutch operator KPN have agreed to connect to iBasis’ LSX Sandbox, which provides a comprehensive trial environment in preparation for launching commercial LTE roaming services.

“With more than 15 years of experience in global, real-time communications over IP, iBasis is uniquely positioned to be the LTE exchange provider,” said Willem Offerhaus, iBasis CEO. “The LSX leverages the full complement of iBasis capabilities – voice, data, signaling, IPX, and more – to enable our customers to deliver even greater innovations to their customers.” iBasis is a wholly owned subsidiary of KPN, the Dutch telecommunications and ICT service provider. 

At The Cable Show this week in Boston, Motorola Mobility is showcasing its latest innovations for cable operators offering whole home connectivity, including its DCX3600 Video Gateway – a nextgen set-top positioned as the entertainment hub in the living room... and morphing into the Center of the IP Connected Home.

Motorola Mobility is also demonstrating HEVC video compression technology, which reduces bandwidth by 50 percent in comparison to MPEG4 AVC/H.264 at similar video quality. HEVC was jointly developed by ISO/IEC Moving Picture Experts Group (MPEG) and ITU-T Video Coding Experts Group (VCEG). It promises better video delivery over wireless link, including Wi-Fi and cellular.

Time Warner Cable has selected the company's SecureMedia Encryptonite ONE HLS+ solution for securing video streams across a variety of devices – including smartphones, tablets, game consoles, connected TVs and Blu-Ray players.

Insight Research: U.S. Telecom Business Services Continues to Grow

U.S. businesses will spend $154 billion for telecommunications services in 2012 and business spending on wired and wireless calling will grow to $184 billion by the close of 2016, representing a compound annual growth rate (CAGR) of 4.8 percent over the forecast period, according to a new market report from Insight Research.

Insight's newly released market analysis report, "Telecom Services in Vertical Markets, 2011-2016" found that business spending for cellular and other wireless services is creating all of the growth, while spending on wireline services will be essentially flat over the five year forecast horizon.

Wireless expenditures are expected to grow at a compounded rate of 9.4 percent over the period of 2011-2016. Four vertical industries – wholesale trade; financial, insurance, and real estate services; professional business services; and communications -- account for 68 percent of total business telecom expenditures in 2011. The study analyzes 14 vertical industries categorized by the NAICS, and focuses on corporate spending for wireline and wireless telecommunications services in each of the 14 industries.

"The U.S. telecommunications industry continues to show modest revenue growth, driven by business Internet and mobility solutions," says Fran Caulfield, Research Director for Insight Research. "As US business activity recovers, employment and network traffic increase. In parallel, business applications shift to the cloud and end users shift to wireless access, driving higher network and wireless revenues for service providers," Caulfield concluded.

Tuesday, May 22, 2012

Google Seeks to Super Charge Android with Motorola Acquisition

Google completed its acquisition of Motorola Mobility, saying the deal will "supercharge the Android ecosystem and will enhance competition in mobile computing."

Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business. Sanjay Jha has stepped down as CEO and been replaced by longtime Googler Dennis Woodside.

Larry Page, CEO of Google, said, "I'm happy to announce the deal has closed. Motorola is a great American tech company, with a track record of over 80 years of innovation. It's a great time to be in the mobile business, and I'm confident that the team at Motorola will be creating the next generation of mobile devices that will improve lives for years to come." 

NTT Expands in Nordics

NTT Communications has extended its global network and cloud solutions into Sweden, Norway, Finland, and Denmark. NTT Europe’s Nordic launch is further strengthened through partnership with Secode (wholly owned subsidiary of NTT Com), a leading provider of managed-security and security-consulting services within the Nordic markets. 

Brocade and NEC Enter Partnership for Software-defined Networking

Brocade and NEC Corporation of America (NEC) announced a partnership focused on Software-Defined Networking (SDN) and OpenFlow switching, including network virtualization. The companies will jointly market solutions for network virtualization, large-scale data center infrastructure management, traffic engineering and Wide Area Network (WAN) flow management, with an open standards-based approach.

The partnership combines Brocade's OpenFlow-enabled products and NEC's Programmable Flow Controller. The companies will establish joint solution labs in key regional offices to test and demonstrate their solutions. 

SAP to Acquire Ariba for $4.3 Billion - Business Collaboration in the Cloud

SAP agreed to acquire Ariba for $45.00 per share, representing an enterprise value of approximately $4.3 billion and a 20% premium over the company's closing stock price on May 21. The deal combines Ariba's buyer-seller collaboration network with SAP's broad customer base and business process expertise to create new models for business-to-business collaboration in the cloud.

Ariba is based in Sunnyvale, California and has 2,600 employees. It recorded 2011 revenue of $444 million, up 38.5 percent over 2010.

Last week, SAP announced the roadmap for its cloud applications business (Software-as-a-Service), focusing on managing customers, suppliers, employees, and financials, in addition to its cloud suite offerings SAP Business ByDesign and SAP Business One. 

Juniper Fires Back with Core Router Multi-Chassis Upgrades

Juniper Networks announced plans to upgrade the capacity of its core TXP multi-chassis routing system for all existing Juniper Networks T4000 and T1600 core routers. The upgrade more than doubles the maximum capacity of the existing T Series Core Routers. Specifically, the TXP multi-chassis routing system will support the following key functionality:
  • Up to 4X T4000 and 8X T1600 system capacity.
  • Up to 22 Terabits per second (Tbps) of capacity.
  • Future capacity expandable up to 64 Tbps.
  • Simplified pay-as-you grow installation and expansion with standards-based cabling and pluggable optics.
  • Juniper Networks first unveiled its T1600 core router in June 2007.
  • Juniper Networks first unveiled its T4000 core router in November 2010.
  • Juniper's T4000 is powered by its Trio silicon, which was first unveiled in October 2009 for use in its MX series edge routers. The first generation was implemented in 60nm technology and optimized for highly granular packet processing. The second generation features the smaller and more energy-efficient 45nm technology and is optimized for the high-throughput requirements of core routing. By comparison, the T1600 uses 90nm silicon.
  • A fully loaded T4000 system can support up to 192 ports of 10GbE, or 16 ports of 100GbE interfaces.

Brocade Builds OpenFlow into Switching & Routing Platforms

Brocade has integrated hardware based OpenFlow support into its MLX Series of routers and related NetIron platforms, which support wire-speed 100 Gigabit Ethernet (GbE) performance.

The company said its goal it to deliver a SDN-ready product family today that will serve as the foundation for software-defined network architecture in the future. These products include the Brocade VDX family of data center switches, Brocade ADX Series application delivery switches, Brocade MLX Series of 100 GbE routers, Brocade NetIron CER Series routers and Brocade NetIron CES Series switches.

Brocade articulated an SDN strategy encompassing the following key technologies and capabilities:

Resilient and auto-forming Ethernet fabrics optimized for virtualized applications with virtual machine (VM)-aware intelligence.

Network virtualization via overlay technologies for highly scalable multi-tenancy environments.

Support for OpenFlow in hybrid mode, enabling traditional Layer 2/3 forwarding with OpenFlow.

Partnerships with a broad set of OpenFlow controller vendors and open APIs.

A single common cloud management and orchestration interface through northbound standards-based plug-ins and standards-based RESTful interfaces. The plug-ins to cloud management frameworks -- including Cloudstack, Microsoft System Center, OpenStack, and VMware vCenter/vCloud Director -- provide comprehensive orchestration capabilities for cloud service delivery and automated operations. 

Monday, May 21, 2012

Infonetics: Carrier VoIP Market Up in 1Q12; Alcatel-Lucent Doubles Share

Thanks to exceptionally strong IMS equipment spending, the overall service provider VoIP equipment market bucked its traditional down first quarter by inching up 1% to $715 million over 4Q11, according to a newly released report from Infonetics Research. The increased spending on IMS equipment is tied to Voice over LTE deployments.

"In the first quarter of 2012 we saw the largest order of IMS core equipment and application server licenses on record, secured by Alcatel-Lucent -- a clear sign that operators in North America are gearing up for voice over LTE (VoLTE) deployments. While commercial VoLTE services have yet to launch, this is a taste of what is to come as operators push forward over the next 5+ years. That said, large equipment orders will be sporadic and the IMS market will continue to be lumpy," explains Diane Myers, principal analyst for VoIP and IMS at Infonetics Research.

Some highlights:

Globally, the overall market is up 18% in 1Q12 from the year-ago first quarter -- despite continued declines in legacy trunk media gateway and softswitch sales -- driven by strong IMS core equipment, session border controller (SBC), and voice application server sales.

In 1Q12, Alcatel-Lucent more than doubled its service provider VoIP and IMS revenue and market share, propelling them to the #1 position for worldwide market share, ahead of perennial leaders Huawei and GENBAND North America led the quarter, with carrier VoIP and IMS spending up 18% quarter-over-quarter and up a strong 76% year-over-year.

Infonetics expects the number of mobile and fixed-line subscribers on IMS networks to grow 42% in 2012 to top 250 million worldwide. 

Alcatel-Lucent Offers Motive Customer Experience Service

Alcatel-Lucent is launching a new managed service for telecommunications operators and service providers that will monitor the customer experience of their subscribers using metrics such as dropped calls to issues with video downloads and connecting to the Internet.

The new Managed Service Quality and Assurance (MSQA) offering draws on Alcatel-Lucent’s Motive Customer Experience Solutions portfolio – launched in February – as well as patent-pending methodology developed by Bell Labs, and the company's existing base of network operations centers. The Bell Labs methodology uses service modeling - directly aligned with the service provider’s business priorities - to determine how best to measure service quality and identify the appropriate ways of addressing customer concerns. Motive solutions are then used to proactively detect, isolate, and help resolve issues that can impact the customer experience. This approach gives service providers a focused and tangible way to increase customer satisfaction and strengthen subscriber loyalty. 

Comcast Showcases X1 Video Platform

Comcast is showcasing its X1 Video Platform at The Cable Show being held this week in Boston.

The X1 platform leverages IP technology and cloud servers on Comcast’s network to integrate interactive, customized apps and social media features with traditional video programming. Comcast plans to launch Xfinity TV on the X1 Platform in Boston and a new X1 remote control app in the coming weeks. Rollout in several other major markets is planned to follow this year. It will be available to new Xfinity Triple Play with HD/DVR service customers at no additional cost. 

Sunday, May 20, 2012

Google + Moto Mobility Deal Gets Regulatory Approval from China

Google's bid to acquire Motorola Mobility received regulatory clearance from the Chinese authorities.

The deal was first announced on Aug. 15, 2011. The companies say the merger will "supercharge" Android.

Motorola Mobility is the holder of a portfolio of approximately 17,000 issued patents and 6,800 applications, including hundreds of standard essential patents (SEPs) relevant to wireless devices that Motorola Mobility committed to license through its participation in standard-setting organizations (SSOs).

Friday, May 18, 2012

Motorola Mobility Showcases Home Connectivity Vision, HEVC

At The Cable Show this week in Boston, Motorola Mobility is showcasing its latest innovations for cable operators offering whole home connectivity, including its DCX3600 Video Gateway – a nextgen set-top positioned as the entertainment hub in the living room... and morphing into the Center of the IP Connected Home.

Motorola Mobility is also demonstrating HEVC video compression technology, which reduces bandwidth by 50 percent in comparison to MPEG4 AVC/H.264 at similar video quality. HEVC was jointly developed by ISO/IEC Moving Picture Experts Group (MPEG) and ITU-T Video Coding Experts Group (VCEG). It promises better video delivery over wireless link, including Wi-Fi and cellular.

Time Warner Cable has selected the company's SecureMedia Encryptonite ONE HLS+ solution for securing video streams across a variety of devices – including smartphones, tablets, game consoles, connected TVs and Blu-Ray players.