Thursday, October 25, 2012

Sprint's Network Vision Sees Some Delays

Sprint’s Network Vision program  now has over 4,300 cell sites on air and the number either ready for construction or currently being updated has more than doubled in the last three months to more than 13,500.  Sprint has completed leasing and zoning permits on more than 20,000 sites.  Weekly construction starts are up over 250 percent from the second quarter but the company now expects to bring 12,000 sites on air approximately one quarter later than originally planned.

On its quarterly conference call, Sprint executives said they were seeing some delays from their network vendors, setting the rollout back by a about three months, but that it hopes to close the gap with its competitors quickly.

CAPEX reached $1.5 billion in the quarter, compared to $760 million in the third quarter of 2011 and $1.2 billion in the second quarter of 2012.

Sprint now has LTE available in 32 cities and expects to add 115 additional cities in the coming months. Sprint has launched or announced 13 4G LTE devices to date.

Sprint added approximately 1.5 million iPhone customers in Q3, 40% to new customers

“The Sprint platform performed well, with strong net subscriber additions, record third quarter postpaid and prepaid churn and robust revenue growth, contributing to Adjusted OIBDA* of $1.28 billion even as we continue to invest in Network Vision and position the company for future growth,” said Dan Hesse, Sprint CEO.

Sprint posted Q3 revenues of nearly $7.3 billion, an increase of nearly 6 percent year-over-year, and a net loss of $767 million, or $.26 per share , as compared to a net loss of $301 million and a diluted net loss of $.10 per share in the third quarter of 2011.   The larger loss included accelerated depreciation of $397 million, or negative $.13 per share (pre-tax), primarily related to Network Vision, including the expected shutdown of the Nextel platform.

Some highlights:
  • Wireless service revenues for the Sprint platform grew 14 percent year-over-year driven by postpaid ARPU growth of $3.01 and continued subscriber growth.
  • During the third quarter, Sprint raised additional financing of $1.5 billion and retired $1.5 billion of debt maturities including $473 million of 2013 maturities and $1 billion of 2015 maturities.
  • Sprint had 56 million customers at the end of the third quarter of 2012. This includes 32.1 million postpaid subscribers (29.8 million on the Sprint platform and 2.3 million on the Nextel platform), 15.4 million prepaid subscribers (14.6 million on the Sprint platform and 800,000 on the Nextel platform) and 8.4 million wholesale and affiliate subscribers, all of whom utilize the Sprint platform.
  • The Sprint platform added 410,000 net postpaid customers during the quarter. The Nextel platform lost 866,000 net postpaid customers in the quarter. Sprint platform postpaid net additions and Nextel platform postpaid net subscriber losses include 516,000 net subscribers from the Nextel platform acquired on the Sprint platform.
  • The company added 19,000 net prepaid subscribers during the quarter, which includes net additions of 459,000 prepaid Sprint platform customers, offset by net losses of 440,000 prepaid Nextel platform customers. Sprint platform prepaid net additions and Nextel platform prepaid net losses include 152,000 net subscribers from the Nextel platform acquired on the Sprint platform.

Telefónica Digital Acquires TokBox for Video Platform

Telefónica Digital has acquired TokBox, a San Francisco based start-up developing a platform for live video-based communications services.  Financial terms were not disclosed.

TokBox's OpenTok Video Platform enables enables video calling to be integrated into websites and mobile applications. TokBox launched the OpenTok Video Platform in November 2010 with companies such as American Idol, Ford and Diet Coke having used its technology.

Telefónica said it will leverage TokBox's Platform to enhance the communication services it offers business and consumer customers, adding cross-platform Web-based video communications to its existing voice and messaging capabilities.  Telefónica and TokBox will work to incorporate video APIs into the BlueVia platform, creating a unified video, voice and text API service with global reach.

Ian Small will remain as CEO of TokBox and Carlos Domingo, Director of Product Development & Innovation at Telefónica Digital, will join the TokBox Board of Directors and become President of the company. The acquisition was led by Telefónica Digital's Silicon Valley-based venture investment team.

Matthew Key, CEO of Telefónica Digital said, 'Telefónica is all about empowering our customers through new and innovative digital services. By adding TokBox's unique capabilities to our communications portfolio, we will allow our customers to leverage the full potential of web-based video communications in their own business models.'

Deutsche Telekom Builds Massive Data Center (150,000m2)

Deutsche Telekom has broken ground on Germany's largest data center -- a massive facility that will be built on a surface area the size of approximately 30 soccer fields (i.e., 150,000m2) in Biere, Saxony-Anhalt.

The new facility, which will be the 90th data center operated by Deutsche Telekom's T-Systems subsidiary, will operate as a twin of another data center already running in Magdeburg.  The new construction in Biere will form a "TwinCore"  -- in the event of any disruption, the twin facility can immediately take over.

Deutsche Telekom said it is seeing high interest in colocation and cloud services.  Some 600 corporate customers use these new IT services offered byT-Systems, including internationally active groups such as Shell and Daimler. Data protection and fail-safety are key services.  T-Systems is using 22 data centers specifically for cloud services.

Internap Plans Another Huge Data Center for New Jersey

Internap Network Services announced plans for a new data center in Secaucus, N.J. to serve the New York metro area.  The company's wo existing New York data centers are nearing capacity over the next twelve months.

Internap said this data center will measure about 100,00 square feet (9,290 m2) and employ the latest power and cooling technologies to deliver power densities of up to 12 kW per cabinet.  The new Secaucus data center will add 55,000 net sellable square feet to the market once fully deployed, which represents a significant expansion of Internap’s company-controlled data center footprint, which includes 320,000 net sellable square feet of fully-deployed capacity as of end of third quarter 2012.

The new facility will be Internap’s twelfth company-controlled facility across eight North American markets will offer colocation and managed, dedicated and cloud hosting services as well as its route-optimized Performance IP and content delivery network services. The first phase of the Secaucus data center is expected to open in the fourth quarter of 2013.

“We did extensive due diligence when researching the site of our new data center and believe the Secaucus location provides an ideal mix of space, power, connectivity options and access to a range of customers and industries,” said Mike Higgins, senior vice president of data center services at Internap. “With our two existing New York metro area data centers nearing capacity in the second half of 2013, the new Secaucus facility underscores our commitment to the New York market and our customers’ increasing demand for our cloud, hosting, colocation and route-optimized IP services.”

Apple Sells 26.9 Million iPhones in Q3

Apple reported robust demand for its iPhones. The company sold 26.9 million iPhones in Q3, representing 58% unit growth over the year-ago quarter, and up from 20.3 million in the previous June quarter.  

A total of 125 million iPhones have been sold to date.

Another note -- Apple is now holding $121.25 billion in cash.

Vertical Systems: Business Ethernet Passes Legacy Bandwidth

Vertical Systems Group calculates that business Ethernet service have passed a significant milestone:  global bandwidth purchased for business Ethernet service connections surged past the volume of bandwidth utilized for legacy data services.  This bandwidth crossover milestone was reached in the U.S. market in 2011. Connection speeds available for Ethernet services range from sub-10 Mbps rates to above 10 Gbps.

"Global growth for legacy bandwidth is flattening, while Ethernet bandwidth continues to mount at a healthy double-digit pace," said Rosemary Cochran, principal at Vertical Systems Group. "Enterprises throughout the world are stepping up the migration of their legacy network applications to Ethernet, driven by increasing availability of Ethernet services, lower bandwidth costs, and more flexible bandwidth scalability. Applications contributing to the bandwidth surge include data backup/disaster recovery, high definition video, cloud computing, mobile backhaul and industry-specific applications."

China Mobile Awards TD-LTE Contract to NSN

China Mobile has selected Nokia Siemens Networks for the deployment of TD-LTE in three cities by the end of 2012 as part of its large-scale, pre-commercial trial of TD-LTE.

Nokia Siemens Networks will deploy its TD-LTE 8-pipe radio and Flexi Multiradio Base Stations. In addition, Nokia Siemens Networks will help China Mobile with Circuit Switched Fallback (CSFB) technology testing in Hangzhou, a technique used to offer voice calls alongside TD-LTE services.

Nokia Siemens Networks noted that through its parent companies it has an over 20-year working relationship with China Mobile and was one of the first vendors to support the operator’s initial GSM network.

  • In September, Nokia Siemens Networks announced a new speed record for TD-LTE -- 1.6 Gbps. The previous record -- also set by NSN - was 1.3 Gbps.
  • The record was set using the company's commercial Flexi Multiradio 10 Base Station to receive and send data in simultaneous downlink and uplink connections, reaching an overall speed of 1.6 Gbps.  The test used 60 MHz of aggregated spectrum with an 8-pipe radio module that enables eight streams of uplink MU-MIMO.  The test was performed at the Nokia Siemens Networks lab in Arlington Heights, Illinois.
  • NSN also noted that the 8-pipe radio module design even exceeded the specs of LTE-Advanced, which requires only four streams of uplink MU-MIMO. 

Telesis Tanzania Picks Alcatel-Lucent for LTE

Telesis Tanzania, a new carrier which operates as a Mobile Virtual Network Aggregator (MVNA) supporting services for a number of Mobile Virtual Network Operators (MVNOs), has selected Alcatel-Lucent to deploy LTE.

For the project, Alcatel-Lucent will provide its 4G LTE solution including Radio Access network (RAN) products, the Evolved Packet Core solution (EPC), the Service Aware Manager the Subscriber Data Manager, Convergent Charging System as well as its services expertise including project management, integration and optimization.

The mobile broadband network will be launched using the digital dividend spectrum.

Mihayo Wilmore, Director and Co-Founder of Telesis said "Telesis lives by its motto, ‘connecting the unconnected’. The wireless broadband project allows us to work towards bridging the gap in the digital divide by addressing the key stumbling blocks – access and affordability.  Both Alcatel-Lucent and Telesis have been entrusted by the regulator (TCRA) and the Tanzanian Government at large to truly become a game changer, leading the establishment of a business model where collaboration rather than competition will benefit the economy at large. Tanzania has over 20 million addressable broadband users, 200,000 registered businesses, and nearly 30,000 educational institutions that all need to be connected."

Ericsson Appoints Head of Research

Ericsson has appointed Dr. Sara Mazu as Head of Ericsson Research, Group Function Technology, replacing Jan Färjh, who has taken up another position within Ericsson as Head of  Standardization and Industry, Group Function Technology.

Mazur, who holds a Ph.D. in electrical engineering, is currently Vice President and Head of System Management within Business Unit Networks. Her most recent focus has been on unit-wide technology and research coordination and strategic management of technologies.

Mazur has worked on advanced technology throughout her career to strengthen Ericsson’s technical excellence.

Mazur graduated with a M.Sc. and a Ph.D. in electrical engineering from the KTH Royal Institute of Technology in Sweden, where she is an Associate Professor in fusion plasma physics.

Wednesday, October 24, 2012

Tellabs Announces Q3 Revenue of $264 million, 200 Job Cuts

Tellabs posted Q3 revenue of $264 million, compared with $330 million in the year-ago quarter, and a net loss of $4 million or 1 cent per share, compared with a net loss of $130 million or 36 cents per share in the third quarter of 2011. Q3 results included impairment charges for goodwill and other intangible assets of $102.7 million.

For the third quarter of 2012, Optical segment revenue was $108 million, Data segment revenue was $66 million, Access segment revenue was $42 million and Services segment revenue was $48 million.

Tellabs also announced plans to eliminate approximately 200 jobs over the next year.  The company expects to take a restructuring charge of about $11 million in the fourth quarter of
2012, consisting principally of severance and related costs.

“As we transform Tellabs’ business model and create a path to sustained future growth and profitability,
we must continue to lower costs and expenses,” said Dan Kelly, Tellabs acting CEO and president. “At
the same time, we are increasing R&D investments in our next-generation products to help our customers succeed with Tellabs optical, data and access solutions.”

Infinera Cites 16 Purchase Commitments for DTN-X

Infinera reported Q3 revenues of $112.2 million, compared to $93.5 million in the second quarter of 2012 and $104.0 million in the third quarter of 2011.  GAAP net loss for the 2012 third quarter was $(19.1) million, or $(0.17) per share, compared to net loss of $(29.5) million, or $(0.27) per share, in the second quarter of 2012 and net loss of $(21.8) million, or $(0.21) per share, in the third quarter of 2011.

“The DTN-X is experiencing strong traction around the world,” said Tom Fallon, president and chief executive officer. “We now have 16 purchase commitments, representing five new customers and 11 existing customers. These commitments come from customers in North America, Europe and Asia Pacific and include commitments from all of our vertical markets. The DTN-X is in full deployment across the globe and, as forecasted, we began recognizing revenue from this platform in the third quarter. "

On a conference call, Infinera confirmed that it has shipped over one thousand 100G ports for revenue as of the end of the quarter.
  • Infinera's new DTN-X platform features 5 Tbps of optical transport network (OTN) switching capacity. It uses large scale Photonic Integrated Circuits (PICs) to enable 500 Gbps, long-haul FlexCoherent super-channels. 

Sea Fibre Connects Dublin and Amsterdam

Sea Fibre Networks, which owns and operates the CeltixConnect sub-sea cable between the UK and Ireland, has activated a new route from the greater Dublin area to Amsterdam.  The link, which uses selected third party fibre, delivers an end-to-end fibre solution from Dublin to Amsterdam, via London, while remaining carrier-neutral.

Amsterdam's AMS-IX carries an average 1.25 Tbps with a year high peak of 2 Tbps.

Dublin is a central Internet hub in Europe, hosting major data centres of Google, Amazon and Microsoft.

Fusion-io Posts Growth for its Flash Storage

Fusion-io reported revenue of $118.1 million for its fiscal first quarter 2013, up 59% from $74.4 million for the same quarter of 2012 and up 11% from $106.6 million for the preceding quarter. Net income for the fiscal first quarter of 2013 was $3.9 million, or $0.04 per diluted share, compared to net income of $7.2 million, or $0.07 per diluted share, in the fiscal first quarter of 2012.

"We are pleased with our execution in the first quarter and our ability to continue to capture market share," said David Flynn, Fusion-io chairman and chief executive officer.  "Our innovative use of flash memory technology in our portfolio of software defined data acceleration solutions is yielding significant performance and efficiency improvements for our customers' data centers.  We believe the economic benefits enabled by flash technology and Fusion-io software become only more compelling over time."

YOTA Activates LTE-Advanced Carrier Aggregation on Moscow Base Stations

YOTA Networks has activated LTE-Advanced on its commercial LTE network in Moscow.

For the project, Huawei supplied its end-to-end SingleRAN LTE/EPC solution for LTE-Advanced (3GPP rev10).  The deployment uses Carrier Aggregation to provides downlink peak rates of up to 300Mbps, depending on the capacity of the radio channel.

YOTA said LTE-A is deployed on 11 base stations.  The company expects the first devices supporting LTE-A to be on the market in the second half of 2013.

“We are proud to be selected as a partner of YOTA Networks and we fully intend to support YOTA in the launch of their most advanced services yet. To date, Huawei has realized a large number of commercial LTE projects across many countries, and the launch of the first test LTE-A network in Moscow is a major step in the development of mobile broadband access markets around the world," stated Sergey Varyukhin, Key Account Department Vice President for Huawei in Russia, Ukraine, Belarus and Armenia.

Alcatel-Lucent Boosts its Mobile Backhaul Portfolio

Alcatel-Lucent rolled out a set of enhancements to its mobile backhaul portfolio to address the challenges associated with delivering mobile broadband services in crowded, urban environments where growing customer demand is creating a need for a rapid introduction of small cells.

The announcement includes:

  • New variants of Alcatel-Lucent’s 7705 Service Aggregation Router (SAR) to provide an end-to-end service layer for more efficient OAM (operations, administration and management), and also featuring advanced timing/synchronization, flexible powering options, and Auto-Discovery and Provisioning (ADP) capabilities.
  • An expanded range of microwave transport solutions, including 60 gigahertz (Ghz) point-to-point line-of-sight, and sub 6 Ghz for point-to-point and point-to-multipoint non-line-of-sight applications.
  • Increased capacity on the company’s flagship 9500 Microwave Packet Radio platform brings greater backhaul bandwidth capabilities to mobile operators for both their macro and small cell sites.
  • Optimization of the company’s existing broadband access portfolio to support small cell backhaul requirements. New copper- and fiber-based small cell backhaul access solutions enable mobile operators to make better use of their existing broadband network to backhaul metro cell networks at low incremental cost.
  • A broader range of professional services to help design, optimize and deploy backhaul networks to support metro cell deployments further extends the recently announced Alcatel-Lucent lightRadio™ Metrocell Express ‘build-operate-transfer’ solution for turnkey deployments.

"The combination of our strengths in IP, optics, microwave, fixed access and wireless puts us in a relatively unique position amongst the other vendors in the market, and places us in an ideal position to address the mobile backhaul challenge with the introduction of small cell deployments. Not only do we offer the most comprehensive set of backhaul options in the industry, we also bring unmatched solution integration experience to the table. We are confident that our leadership in mobile backhaul will only increase in the metro cell era," stated Philippe Keryer, President of Alcatel-Lucent’s Networks Group.

AT&T: Smartphones Now Represent 81% of Sales

Driven by 18.3 percent growth in wireless data revenues and a 38.3 percent growth in U-verse revenues, AT&T posted Q3 revenues of $31.5 billion, flat versus the year-earlier quarter. but up 2.6% when excluding the divested Advertising Solutions business unit.

AT&T said its LTE deployment is ahead of schedule, already covering more than 135 million POPs.

Operating income was $6.0 billion, down from $6.2 billion; and AT&T’s operating income margin was 19.2 percent, compared to 19.8 percent.

Net income for the quarter totaled $3.6 billion, or $0.63 per diluted share, consistent with $3.6 billion, or $0.61 per diluted share, in the year-earlier quarter. When adjusted for Advertising Solutions, earnings per share was $0.62 compared to $0.59 in the year-ago quarter.

“We had another impressive quarter with strong earnings growth, record cash flows and solid returns to shareholders through dividends and share buybacks”, said Randall Stephenson, AT&T chairman and chief executive officer. “In wireless, we had another excellent smartphone quarter, penetration of usage-based mobile data plans continues to climb, and our 4G LTE network build is ahead of schedule. And in wireline, our IP network continues to deliver strong gains in U-verse high speed Internet connections, which helped drive an almost 10 percent increase in broadband data ARPU. Our strong performance allows us to increase our free cash flow guidance to $18 billion or higher this year, exceeding our previous outlook by $2 billion."

Some highlights:


  • Wireless service revenues increased 4.5 percent, to $14.9 billion, in the third quarter.
  • Postpaid subscriber ARPU increased 2.4 percent versus the year-earlier quarter to $65.20, the strongest growth in six quarters.
  • AT&T sold 6.1 million smartphones in the third quarter, 1.3 million more than in the third quarter a year ago.
  • Smartphones represented 81 percent of postpaid device sales.
  • At the end of the quarter, 63.8 percent, or 44.5 million, of AT&T's postpaid subscribers had smartphones, up from 52.6 percent, or 36.1 million, a year earlier and up 1.4 milion from the second quarter.
  • About 64 percent, or 28.5 million of all smartphone subscribers are on usage-based data plans.


  • Total third-quarter wireline revenues were $14.8 billion, down 1.6 percent versus the year-earlier quarter and down slightly sequentially.
  • Revenues from residential customers totaled $5.4 billion, an increase of 2.0 percent versus the third quarter a year ago and their strongest growth in more than four years.
  • Total AT&T U-verse subscribers (TV and high speed Internet) reached 7.4 million in the third quarter. AT&T U-verse TV added 198,000 subscribers to reach 4.3 million in service.
  • AT&T U-verse High Speed Internet delivered a third-quarter net gain of 613,000 subscribers to reach a total of 7.1 million, helping offset losses from DSL.
  • Overall, AT&T wireline broadband connections decreased 42,000.
  • Total business revenues were $9.1 billion, down 2.6 percent versus the year-earlier quarter and slightly lower than the second quarter of 2012.
  • AT&T's most advanced business solutions — including Ethernet, VPNs, hosting, IP conferencing and application services — grew 11.4 percent versus the year-earlier quarter.

SiTime Advances Network Timing with Digitally Controlled MEMS Oscillators

SiTime introduced a new MEMS-based Digitally Controlled Oscillator (DCXO) with an in-system digital control interface that is used for tuning the output frequency.

The company said its new device (SiT3907 DCXO), which is targeted at telecom, networking, video, audio and embedded applications, offers 100 times better linearity and 8 times better pull range than quartz VCXOs. The SiT3907 is fully programmable to accelerate development. Samples are shipped in 48 hours and production quantities are available with three weeks lead time.

“SiTime’s innovative MEMS technology and analog expertise is leading the revolution in the timing industry,” said Piyush Sevalia, executive vice president of marketing at SiTime. “For decades, the quartz industry has offered VCXOs with no new features. Our customers requested an all-digital control interface that simplified their design and improved performance. We listened, and used our semiconductor expertise to quickly deliver this new feature. This is a great example of how SiTime is changing the game in the timing industry.”

Some key features:
  • New - 1-wire digital interface for easy, low-noise, and dynamic in-system frequency control. Quartz VCXOs use an analog interface that requires an external DAC in the control path and generates additional system noise.
  • Best linearity at less than 0.1%. Typical quartz VCXOs are limited to 10% linearity.
  • Widest pull range from ±25 to ±1600 PPM with 1 PPB resolution for flexible, in-system calibration. Quartz VCXOs are limited to ±200 PPM pull range.
  • Programmable drive strength for best EMI reduction. This feature is not available in quartz VCXOs.
  • Industry-leading frequency stability as low as ± 10 PPM for enhanced system reliability. Typical quartz VCXOs are only available in ± 25 - 50 PPM stabilities.
  • LVCMOS output, programmable for any frequency between 1 and 220 MHz with best-in-class 6 decimal places of accuracy. Quartz VCXOs offer selected, fixed frequencies only.
  •  of customized devices are shipped in 48 hours and production quantities are available in 3 to 5 weeks. Customization of quartz VCXOs requires NREs and 12 to 18 week lead times.
  • Outstanding reliability of 500 million hours MTBF, which is up to 15 times better han quartz VCXOs.
  • 50,000 g shock and 70 g vibration resistance which is 30 times better than quartz VCXOs.
  • Industrial (-40 to +85 °C) and commercial temperature (-20 to +70 °C) operation.
  • 1.8V and 2.5 to 3.3V operation.
  • Available in 4-pin 3225 and 6-pin 5032 and 7050 packages.

The SiT3907 is in production now. Pricing is available upon request.

Tuesday, October 23, 2012

Juniper Sees Revenue Growth in Q3, PTX Customers

Juniper Networks reported net revenues for Q3 2012 increased 4% sequentially, and increased 1% on a year-over-year basis, to $1,118 million. GAAP net income was $17 million, or $0.03 per diluted share for the third quarter. The GAAP diluted income per share includes $0.16 impact from restructuring and other charges. Non-GAAP net income was $118 million, or $0.22 per diluted share, for the third quarter of 2012, up 16% sequentially but down 21% compared to last year.

"Juniper delivered top line revenue growth in the third quarter as we focus on excellence in execution throughout our business," said Kevin Johnson, chief executive officer of Juniper Networks.

In a conference call, juniper executives said its service provider business so healthy performance in the U.S. market and good performance in Europe and Asia PAC.  The company said customer engagements around its core networking products are underway and that interest in the T4000 core routers and PTX platform is strong with more than 15 customers.  Juniper noted recent wins for its Qfabric including with the University of Frankfurt and a financial firm in China.  While the Service Provider segment is growing (up 4% sequentially) the company saw a decline in enterprise sales in the U.S. market.

Company Ceo Kevin Johnson also said its software defined networking is a major opportunity for Juniper.  The company expects to have OpenFlow running on its MX and EX routers as well as its Qfabric data centre platform next year.

Juniper ended Q3 with 9584 employees, not including in recent layoff.