Friday, April 25, 2014

Freescale Posts Q1 Sales of $1.13 Billion

Freescale Semiconductor reported Q1 2014 sales of $1.13 billion, compared to $1.08 billion in the fourth quarter of 2013 and $981 million in the first quarter of 2013. Net loss for the first quarter was $23 million, or $0.08 per share, compared to a net loss of $118 million, or $0.46 per share, in the fourth quarter of 2013 and a net loss of $48 million, or $0.19 per share in the first quarter of 2013.

“We continue to see solid progress on our initiatives to increase revenue and improve gross margin,” said Gregg Lowe, president and CEO. “All five product groups generated revenue growth sequentially and year over year. With a 15 percent year-over-year growth in revenue, the company continues to make strides in gaining market share.

The company’s net sales figures for the first quarter of 2014 were as follows:


  • Microcontroller net sales were $223 million, compared to $220 million in the fourth quarter of 2013 and $177 million in the first quarter of last year. On a year-over-year basis, Microcontroller revenues benefited from increased sales into distribution and higher sales of applications processors into the automotive market.
  • Digital Networking net sales were $249 million, compared to $246 million in the fourth quarter of 2013 and $202 million in the first quarter of last year. Year-over-year networking sales growth was broad based across service provider, enterprise and general embedded segments. Sequentially, the networking business benefited from higher sales of service provider equipment, including wireless base stations in China.
  • Automotive Microcontroller net sales were $304 million, compared to $267 million in the fourth quarter of 2013 and $254 million in the first quarter of last year. Automotive Microcontroller sales benefited from growth in all key geographies and in distribution due to growth in semiconductor content and higher automotive production levels.
  • Analog and Sensor net sales were $198 million, compared to $190 million in the fourth quarter of 2013 and $177 million in the first quarter of last year. Analog and Sensor sales benefited on a sequential and year-over-year basis from higher sales into the growing worldwide automotive market.
  • RF net sales, which include sales of power amplifiers to the wireless infrastructure market, were $113 million, compared to $96 million in the fourth quarter of 2013 and $86 million in the first quarter of last year. On a sequential and year-over-year basis, RF sales increased due to increased spending on 3G and 4G wireless networks, particularly in China.

http://www.freescale.com

Thursday, April 24, 2014

Core Infrastructure Initiative Brings Support to Key Projects

In the wake of the Heartbleed OpenSSL crisis, a new Core Infrastructure Initiative backed by leading technology companies has been established to fund and support critical elements of the global information infrastructure.

The multi-million dollar Core Infrastructure Initiative, which is managed by The Linux Foundation, will provide assistance to open source projects  that are in the critical path for core computing and Internet functions.

The first project under consideration to receive funds from the Initiative will be OpenSSL, which could receive fellowship funding for key developers as well as other resources to assist the project in improving its security, enabling outside reviews, and improving responsiveness to patch requests.

Founding backers of the Initiative include Amazon Web Services, Cisco, Dell, Facebook, Fujitsu, Google, IBM, Intel, Microsoft, NetApp, Rackspace, VMware and The Linux Foundation.

“We are expanding the work we already do for the Linux kernel to other projects that may need support,” said Jim Zemlin, executive director of The Linux Foundation. “Our global economy is built on top of many open source projects. Just as The Linux Foundation has funded Linus Torvalds to be able to focus 100% on Linux development, we will now be able to support additional developers and maintainers to work full-time supporting other essential open source projects. We are thankful for these industry leaders’ commitment to ensuring the continued growth and reliability of critical open source projects such as OpenSSL.”

"Maintaining the health of the community projects that produce software critical to the security and safety of Internet commerce is in everyone's interest," said Professor Eben Moglen of Columbia Law School, Founding Director of the Software Freedom Law Center. "The Linux Foundation, and the companies joining this Initiative, are enabling these dedicated programmers to continue maintaining and improving the free and open source software that makes the Net work safely for us all. This is business and community collaboration in the public interest, and we should all be grateful to The Linux Foundation for making it happen."

http://www.linuxfoundation.org/programs/core-infrastructure-initiative

Dell Taps Big Switch for SDN-Enabled Fabric Monitoring

Dell announced a reseller agreement with Big Switch Networks targeting next-generation SDN fabric monitoring.

Specifically, Dell will offer Big Switch Networks’ Switch Light OS on Dell Networking’s Ethernet switching portfolio, starting with the S4810 and S6000 series. Dell will also offer Big Switch Networks’ production-ready SDN controller applications starting with the Big Tap Monitoring – an innovative new SDN-based network monitoring solution unlocking hidden customer value and helping solve an age-old, costly networking challenge.

Dell said the deal extends its vision of a new, disaggregated model for networking hardware and software. The Big Switch Big Tap Monitoring provides an SDN-enabled fabric monitoring solution that empowers tapping network traffic everywhere and delivering it to security and other appliances to:
expand choice and capabilities for customers looking for best-of-breed Ethernet switch hardware, OS and SDN apps;
enable a range of next-generation SDN solutions; and
realize operational simplification for management, control and policies.

“Dell’s push into open networking, and this announcement with Big Switch and other vendors, are great examples of original thinking and innovation coming from the new Dell, “said Tom Burns, vice president and general manager, Dell Networking. “We’re seeing tremendous initial customer interest, especially among certain verticals such as large financials, Web 2.0 and mobile service providers. It’s drawing Dell Networking into additional business discussions where many customers may not have considered Dell before.”

“The early adopters of SDN were largely the hyper scale players. But with the advent of initiatives such as Open Networking from Dell, the path for all enterprises to enjoy the benefits of SDN is getting easier,” said Douglas Murray, CEO of Big Switch Networks. “The joint solutions coming from the Dell and Big Switch partnership will bring hyperscale data center design and choice to a broader audience.”

http://www.dell.com/learn/us/en/uscorp1/secure/2014-04-24-dell-sdn-network-monitoring-big-switch
http://bigswitch.com/bigswitch-dell-partnership-announcement

FCC Chairman Comments on New Open Internet Rules

In response to published reports that of new rules that would limit or do away with the principles of Net Neutrality, FCC Chairman Tom Wheeler confirmed that he is circulating a proposal but that it is not his intention to limit the openness of the Internet.  In a blog posting, Wheeler confirms that he is looking to have new enforceable rules in place by the end of the year.

Wheeler states that the key elements of his proposal are:

  • That all ISPs must transparently disclose to their subscribers and users all relevant information as to the policies that govern their network;
  • That no legal content may be blocked; and
  • That ISPs may not act in a commercially unreasonable manner to harm the Internet, including favoring the traffic from an affiliated entity.

The actual proposal has not yet been published.  The FCC will consider Wheeler's proposal on May 15.  The commission has also established an email inbox for public comment on the matter.

Public comment to: openinternet@fcc.gov
http://www.fcc.gov/blog/setting-record-straight-fcc-s-open-internet-rules

Equinix to Offer ExpressRoute to Microsoft Azure

Equinix announced plans to offer high-performance, private connections from its International Business Exchange data centers to Microsoft Azure.

Specifically, Equinix will enable customers to directly connect to Azure in Equinix IBX data centers across five continents including: North America, South America, Asia, Europe and Australia.  Microsoft’s physical infrastructure for Azure ExpressRoute resides in Equinix data centers and is available via an Equinix switching fabric that provides secure connectivity and real-time provisioning.

Equinix is currently previewing the service from data centers in Silicon Valley, Washington, D.C. and London.

"Enterprises are drawn to hybrid cloud to benefit from cloud computing efficiencies, while maximizing their existing infrastructure. With 57 percent of Fortune 500 companies already using Microsoft Azure combined with Equinix’s global data center footprint, we look forward to working together to help customers bridge their cloud and on-premises technology to build hybrid environments with enterprise-grade control and reliability," stated Steven Martin, general manager, Microsoft Azure at Microsoft.

http://azure.microsoft.com/en-us/services/expressroute/
http://www.equinix.com


  • Equinix already offers an AWS Direct Connect Service.

Microsoft Highlights Cloud Growth - 4 Million Office 365 Home Subscribers, Azure up 150% YoY

Satya Nadella, Microsoft's new CEO, gave a cloud spin to the company's quarterly financial report.

“This quarter’s results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth,” said Satya Nadella, chief executive officer at Microsoft. “We are focused on executing rapidly and delivering bold, innovative products that people love to use.”

Some highlights:

  • Devices and Consumer revenue grew 12% to $8.30 billion.
  • Windows OEM revenue grew 4%, driven by strong 19% growth in Windows OEM Pro revenue.
  • Office 365 Home now has 4.4 million subscribers, adding nearly 1 million subscribers in just three months.
  • Microsoft sold in 2.0 million Xbox console units, including 1.2 million Xbox One consoles.
  • Surface revenue grew over 50% to approximately $500 million.
  • Bing U.S. search share grew to 18.6% and search advertising revenue grew 38%.
  • Commercial revenue grew 7% to $12.23 billion.
  • Office 365 revenue grew over 100%, and commercial seats nearly doubled, demonstrating strong enterprise momentum for Microsoft’s cloud productivity solutions.
  • Azure revenue grew over 150%, and the company has announced more than 40 new features that make the Azure platform more attractive to cloud application developers. 
  • Windows volume licensing revenue grew 11%, as business customers continue to make Windows their platform of choice.
  • Lync, SharePoint, and Exchange, our productivity server offerings, collectively grew double-digits.


http://www.microsoft.com/en-us/news/press/2014/apr14/04-24fy14q3earningspr.aspx

NTT's Dimension Data Acquires Nexus for ICT Integration

Dimension Data has acquired Nexus, a privately-owned provider of advanced IT solutions based in Valencia, California.

Dimension Data said the deal expands its operations in the U.S. by 40%, significantly increasing its presence throughout the West, Southwest and Southeast.  Nexus’ data center solutions and services complement Dimension Data’s focus in this area.

Nexus serves enterprises, mid-sized business and public sector clients, with industry specializations in education, retail, hospitality and healthcare.

“The acquisition of Nexus is a significant strategic step in enhancing the Group’s geographic coverage and depth of skills and capabilities to support our clients. For over three decades, Dimension Data has been building expertise and experience in ICT solutions and services that deliver real business value to our clients. Nexus increases our ability to support both our US-based and global clients with West Coast presence,” stated Brett Dawson, CEO of Dimension Data plc.

https://www.dimensiondata.com/

Nuage Networks Cites 30+ SDN Trials

Marking the one-year anniversary of its launch, Alcatel-Lucent's Nuage Networks division announced that it has participated in over 30 SDN trials with Fortune 500 enterprises, leading cloud providers, and telecommunication companies.

“In the year since Nuage Networks was launched around the same time as my own arrival at Alcatel-Lucent, it has already become recognized by the industry for its game-changing technology and for understanding the way CIOs think about operating their networks,” said Michel Combes, CEO of Alcatel-Lucent. “It is the perfect example of the kind of entrepreneurial innovation Alcatel-Lucent, under its new specialist focus, is now bringing to market.”

http://www.nuagenetworks.net

Wednesday, April 23, 2014

FCC Proposes Dynamic Spectrum Sharing in 3.5GHz Band for Citizens Broadband Radio

The FCC outlined a proposal for a New Citizens Broadband Radio Service in 3.5 GHz band.

The idea would be to designate 3.5 GHz spectrum as an "innovation band" for exploring new methods of spectrum sharing and promote a diverse array of network technologies, with a focus on relatively low-powered applications.

The FCC is proposing a three-tier authorization framework under which existing primary operations – including authorized federal users and grandfathered FSS earth stations - would
make up the Incumbent Access tier and would receive protection from harmful interference. The Citizens Broadband Radio Service would be divided into Priority Access and General Authorized Access (GAA) tiers of service, each of which would be required to operate on a non-interference basis with the Incumbent Access tier. The FCC is also proposing that any party that meets basic eligibility requirements under the Communications Act be eligible to hold a PAL or, when authorized, operate a CBSD on a GAA basis in the Citizens Broadband Radio Service.

The FCC noted that this proposed three-tier framework enjoys significant support from a diverse group of commenters, including AT&T, Google, Public Knowledge, and the Open Technology Institute at the New America Foundation. Others, including CTIA – The Wireless Association (CTIA), NSN, and Qualcomm have argued that a two-tier framework that would prohibit or segregate GAA users would be a more efficient way to manage the 3.5 GHz Band.

Under the FCC proposal, in place of fixed channel assignments, a Spectrum Access System (SAS) would dynamically assign bandwidth within given geographic areas to Priority Access Licensees and GAA users. The SAS would ensure that Priority Access Licensees have access to allotted 10 megahertz channels and that GAA users are provided access to at least 50 percent of the band. However, the exact spectral location of any given authorization, whether Priority Access or GAA, would not be fixed. For example, a licensee might have Priority Access rights for a single PAL, but the specific channel location assigned to that user would be managed by the SAS and could be reassigned from time to time (e.g., from 3550-3560 MHz to 3630-3640 MHz). Individual GAA users would be assigned available bandwidth of a size and spectral location determined by the SAS (e.g., from 3550-3556 MHz or 3662-3673 MHz).

http://www.fcc.gov/document/proposes-creation-new-citizens-broadband-radio-service-35-ghz

Additional background:


In July 2012, the President’s Council of Advisors on Science and Technology (PCAST) issued a report identifying 1,000 MHz of federal spectrum for sharing with the private sector.

U.S. federal policy should shift in favor "Shared-Use Spectrum Superhighways" instead the current plan which is to first clear federal users from specific bands and then auction this spectrum for the exclusive use of the highest bidder, according to a new report issued by

A Presidential memorandum issued in June 2010 requires that 500 MHz of spectrum to be made available for commercial use within 10 years.  However, a recent NTIA Study found that clearing just one 95 MHz band will take 10 years, cost $18 billion, and cause significant disruption. Moreover, the net revenue for the Treasury from the last successful auction of 45 MHz realized a net income of just a few hundred million a year ($5.3 billion total).

The PCAST report said its vision of shared spectrum is viable using existing technologies and is not dependent on cognitive or "smart" radios. Instead, a geo-location database could be used the share spectrum much like how the FCC is using managing TV bands. The TV Whitespaces system could be used as a model. Technical standards would need to be implemented for coexistence of transmitters and receivers to enable flexible sharing.

IBM Unveils Power Systems Servers for Scale-Out, Big Data

IBM unveiled its new line of high-performance, Power Systems servers based on its own POWER8 processor and designed for the era of Big Data.

IBM said the new servers, which represent a $2.4 billion investment and three-plus years of development, leverage new silicon with more than 4 billion transistors and more than 11 miles of high-speed copper wiring.  IBM calculates that its new Power Systems are capable of analyzing data 50 times faster than the latest x86-based systems, and certain analytics processes can be run 1,000 times faster.

The Power Systems servers will run various Linux implementations, including Ubuntu Server 14.04 LTS, Ubuntu OpenStack and Juju service orchestration tools.  They will also support PowerKVM, a Power Systems-compatible version of the popular Linux-based virtualization platform KVM, as well as Red Hat and SUSE Linux. The first POWER8-based systems to debut are five Power Systems S-Class servers designed for large, scale-out computing environments.

"This is the first truly disruptive advancement in high-end server technology in decades, with radical technology changes and the full support of an open server ecosystem that will seamlessly lead our clients into this world of massive data volumes and complexity," said Tom Rosamilia, Senior Vice President, IBM Systems and Technology Group. "There no longer is a one-size-fits-all approach to scale out a data center. With our membership in the OpenPOWER Foundation, IBM's POWER8 processor will become a catalyst for emerging applications and an open innovation platform."

IBM's POWER architecture is the cornerstone of innovation for the OpenPOWER Foundation, which also includes participation of Google, NVIDIA, Mellanox, Tyan and over 20 others.

http://www-03.ibm.com/press/us/en/pressrelease/43702.wss

Facebook has 802 Million Daily Active Users

In its Q1 2014 earnings report, Facebook reported the following operational metrics:

  • Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year.
  • Mobile DAUs were 609 million on average for March 2014, an increase of 43% year-over-year.
  • Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year.
  • Mobile MAUs were 1.01 billion as of March 31, 2014, an increase of 34% year-over-year.
  • Capital expenditures for the first quarter of 2014 were $363 million.


http://www.facebook.com

Infonetics: Networking ports hit $39 billion in 2013

Worldwide 1G/10G/40G/100G network port revenue grew 5% in 2013 from the prior year, to $39 billion, according to a new report from Infonetics Research.

“Deployments of 1G, 10G, 40G, and 100G ports once again grew significantly in 2013, as enterprises and service providers invested in their networks to accommodate the growth in traffic, and revenue growth accelerated as buyers shifted to higher bandwidth—and more expensive—ports,” reports Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

Principal Analyst for Optical at Infonetics and co-author of the report Andrew Schmitt adds: “Coherent 100G is well on its way to completely taking over the core, growing to nearly 80% of all wavelengths by 2016, effectively shutting down competing 10G and 40G deployments.”

Some report highlights:

  • Enterprise port revenue grew 5%, and service provider port revenue increased 4%
  • 1G comprises the lion’s share of ports, while 10G delivers the bulk of revenue, though revenue growth is coming from the emerging 40G and 100G segments
  • The 40G market is in transition as service providers move on to 100G; 40G is, however, finding success in the data center market, resulting in 40G port shipments more than doubling in 2013
  • Infonetics looks for 40G port shipments to nearly triple this year, hitting 1.5 million
  • 100G ports almost quadrupled in 2013, thanks to surging service provider demand for 100G WDM
  • The first 100G ports on enterprise equipment started shipping in 2013, but aren’t expected to become a major factor until 2015.

http://www.infonetics.com/pr/2014/2H13-Networking-Ports-Market-Highlights.asp

Pure Storage Raises $225M at $3 Billion Valuation

Pure Storage, a start-up based in Mountain View, California, closed a $225 million Series F funding round, at a pre-money valuation of over $3 billion, to support its all-flash enterprise storage array strategy.  The round included contributions from previous public market investors including T. Rowe Price Associates, Inc. and Tiger Global and new investor, Wellington Management Company. The round also included participation from prior venture capital investors Greylock Partners, Index Ventures, Redpoint Ventures, and Sutter Hill Ventures. The new funding brings the company’s total capital raised to $470 million to date.

Pure Storage offers all-flash enterprise arrays for high performance workloads, including server virtualization, desktop virtualization (VDI), database (OLTP, real-time analytics) and cloud computing.  The company's approach combines proprietary data deduplication and compression technologies with affordable multi-level cell (MLC) flash memory.

“This financing at over a $3 billion pre-money valuation is a huge milestone for Pure Storage,” said Scott Dietzen, Pure Storage, CEO. "Yes, it reinforces the health and standout growth of our business to date, but more importantly, the disruptive potential of an all-flash array that costs less than disk going forward. In 2014, no one should be buying mechanical disk to run databases or virtual machines. Our additional funding ensures that many more businesses will get the ten-fold performance acceleration and power savings of Pure Storage. With our top-quality investors and partners, Pure is well positioned for long-term independence and ultimately to lead the ferociously competitive storage market as we leave the mechanical legacy behind.”

http://www.purestorage.com

Infinera Posts Strong Q1

Infinera reported Q1 2014 revenue of $142.8 million (GAAP) compared to $139.1 million in the fourth quarter of 2013 and $124.6 million in the first quarter of 2013.GAAP net loss for the quarter was $(4.4) million, or $(0.04) per share, compared to net loss of $(10.2) million, or $(0.08) per share, in the fourth quarter of 2013, and a net loss of $(15.3) million, or $(0.13) per share, in the first quarter of 2013.

"Our first quarter performance was exceptionally strong in what is typically a soft quarter for our industry. We are benefitting from the continued investment cycle in 100G and network convergence. The favorable economics of our PIC-based architectures and the operational benefits of super-channels positions us as the industry recognized leader in the optical market," said Tom Fallon, Chief Executive Officer. "I remain optimistic about our short-, intermediate- and long-term opportunity. Our focus this year remains on winning footprint, gaining market share, and servicing customers. We believe the continued growth of our business in long-haul, combined with product investments in adjacent markets, is the best way for us to provide long-term shareholder value."

http://www.infinera.com

F5 Continues to Grow at 20% YoY

F5 reported revenue of $420.0 million, up 3 percent from $406.5 million in the prior quarter and 20 percent from $350.2 million in the second quarter of fiscal 2013. GAAP net income was $69.6 million ($0.91 per diluted share), compared to $68.0 million ($0.87 per diluted share) in the prior quarter and $63.4 million ($0.80 per diluted share) in the second quarter a year ago.

"There were very few surprises in the second quarter of fiscal 2014," said John McAdam, F5 president and chief executive officer. "During the quarter, strong demand for our software-defined application services resulted in 22 percent year-over-year product revenue growth. Increasing revenue from the sale of software modules, particularly our Security modules, was driven in part by a growing percentage of customers purchasing our 'Better' and 'Best' offerings. Revenue by geographic region met or exceeded our expectations, with solid year-over-year growth in the Americas, EMEA and Japan. Sales of our TMOS-based products into vertical markets were also in line with historical trends and our internal expectations for the quarter, and our Traffix Diameter Signaling and Routing products continued to gain traction with key wins at several large service providers."

http://www.f5.com

Tuesday, April 22, 2014

AT&T and The Chernin Group Commit $500M to OTT Video

AT&T and The Chernin Group, which manages and invests in media businesses around the world, will launch a joint venture targeting over-the-top (OTT) video services.  The companies agreed to commit over $500 million to the effort to bring advertising-supported and subscription VOD channels, as well as streaming services, to market.

The Chernin Group brings media assets as well as expertise to the venture, including contribution of its majority stake in Crunchyroll, a subscription video on demand service. AT&T brings its extensive network resources.

”AT&T and The Chernin Group are combining our skill sets to address the growing consumer demand for accessing content how and when they want it,” said John Stankey, Chief Strategy Officer at AT&T. “Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group’s management and expertise in content, distribution, and monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”

http://about.att.com/story/the_chernin_group_and_att_create_new_venture_to_acquire_invest_in_and_launch_online_video_businesses.html


  • The Chernin Group, LLC (TCG) is a privately held, independent media holding company founded by Peter Chernin and based in Los Angeles, CA. TCG's assets include Chernin Entertainment; a majority stake in Hong Kong-based CA Media, ; and strategic investments in digital media companies including Fullscreen, Crunchyroll, Pandora, SoundCloud, Flipboard, Scopely, MiTĂș, Base79, Medium, and Tumblr (sold to Yahoo!). Providence Equity Partners LLC; Qatar Holding LLC; Victor Koo (founder and CEO of Youku) and Chengwei Capital; and other shareholders are strategic partners of and investors in TCG.

AT&T Reports Strong Wireless and Wireline Trends

Citing strength in both its wireless and wireline businesses, AT&T reported Q1 2014 revenues of 32.5 billion, up 3.6 percent versus the year-earlier period, the company’s strongest growth in more than two years. Compared with results for the first quarter of 2013, operating expenses were $26.2 billion versus $25.4 billion; operating income was $6.3 billion compared to $5.9 billion; and operating income margin was 19.3 percent compared to 18.9 percent.

First-quarter 2014 net income attributable to AT&T totaled $3.7 billion, or $0.70 per diluted share, compared to $3.7 billion, or $0.67, in the year-ago quarter. Adjusting for $0.01 of Leap transaction-related costs, earnings per share was $0.71 compared to an adjusted $0.64 in the year-ago quarter, an increase of almost 11 percent.

“We have been working very deliberately to transform our business, and this quarter you really start to see the benefits,” said Randall Stephenson, AT&T chairman and CEO. “Customers really like the new mobility value proposition and are choosing to move off device subsidies to simpler pricing while at the same time, they are continuing to move to smartphones with larger data plans.

Some Wireless highlights for Q1 2014:

  • Total wireless revenues, which include equipment sales, were up 7.0 percent year over year to $17.9 billion. 
  • Wireless operating expenses totaled $12.8 billion, up 6.6 percent versus the year-earlier quarter, and wireless operating income was $5.1 billion, up 8.1 percent year over year. 
  • Strongest First-Quarter Postpaid Net Adds in Five Years. AT&T added more than 1 million subscribers in the first quarter, with year-over-year improvements in every category. 
  • Total wireless subscribers increased by 1,062,000 in the quarter, led by 625,000 postpaid net adds and 693,000 connected device net adds. 
  • There was a net loss of 50,000 prepaid subscribers, due to declines in session-based tablets, and a net loss of 206,000 reseller subscribers, primarily due to losses in low-revenue 2G subscriber accounts. Prepaid net adds include first-quarter results from Leap Wireless only after AT&T acquired the company on March 13.
  • Postpaid net adds include 311,000 smartphones. Total branded smartphone net adds (both postpaid and prepaid) were 566,000. Total branded tablet net adds were 313,000.
  • Total churn was essentially stable at 1.39 percent compared to 1.38 percent in the year-ago quarter. Postpaid churn of 1.07 was down sequentially and up slightly compared to 1.04 percent in the year-ago quarter.
  • AT&T added 1.1 million postpaid smartphones in the first quarter. At the end of the quarter, 78 percent, or 53.0 million, of AT&T's postpaid phone subscribers had smartphones, up from 72 percent, or 48.3 million, a year earlier. 
  • Smartphones accounted for 92 percent of postpaid phone sales in the quarter, a first-quarter record. AT&T’s ARPU for smartphones is about twice that of non-smartphone subscribers. At the end of the first quarter,
  • 57 percent of AT&T’s postpaid smartphone customers used an LTE-capable device. The company sold 5.8 million smartphones in the quarter.
  • At the end of the first quarter, 46 percent of Mobile Share accounts had 10 gigabyte or higher plans, up from 28 percent in the year-ago quarter and 27 percent in the fourth quarter of 2013. In total, about 81 percent, or 42.9 million, of postpaid smartphone subscribers are on usage-based data plans (tiered data and Mobile Share plans). This compares to 33.5 million a year ago.

Some Wireline highlights for Q1 2014:

  • Total first-quarter wireline revenues were $14.6 billion, down 0.4 percent versus the year-earlier quarter. Wireline service revenues were up 0.1 percent year over year. 
  • Total U-verse revenues grew 29.0 percent year over year. First-quarter wireline operating expenses were $13.1 billion, up 0.9 percent versus the first quarter of 2013. 
  • AT&T’s wireline operating income totaled $1.5 billion, down 10.5 percent versus the first quarter of 2013. First-quarter wireline operating income margin was 10.0 percent versus 11.1 percent in the year-earlier quarter, primarily due to U-verse content price increases, declines in voice revenues, success-based growth and costs incurred as part of Project VIP.
  • Revenues from residential customers totaled $5.7 billion, an increase of 4.3 percent versus the first quarter a year ago. This is the strongest consumer revenue growth since the introduction of U-verse eight years ago. Continued strong growth in consumer IP data services in the first quarter more than offset lower revenues from legacy voice and data products. U-verse, which includes TV, high speed Internet and voice over IP, now represents 59 percent of wireline consumer revenues, up from 48 percent in the year-earlier quarter. Consumer U-verse revenues grew 28.3 percent year over year. 
  • Total U-verse subscribers (TV and high speed Internet) reached 11.3 million in the first quarter. U-verse TV added 201,000 subscribers in the first quarter to reach 5.7 million in service. AT&T has more pay TV subscribers than any other telecommunications company. 
  • U-verse high speed Internet had a first-quarter net gain of 634,000 subscribers, to reach a total of 11.0 million. That marks seven consecutive quarters with U-verse broadband net adds of more than 600,000. 
  • Overall, total wireline broadband subscribers increased by 78,000. 
  • Total wireline broadband ARPU was up 9 percent year over year. Total U-verse high speed Internet subscribers now represent more than two-thirds of all wireline broadband subscribers, compared with 51 percent in the year-earlier quarter.


Some highlights for Strategic Business Services:


  • Total revenues from business customers were $8.7 billion, down 2.7 percent versus the year-earlier quarter. Business service revenues declined 2.1 percent year over year. 
  • Overall, declines in legacy products were partially offset by continued double-digit growth in strategic business services. Revenues from these services, the next-generation capabilities that lead AT&T's most advanced business solutions — including VPN, Ethernet, cloud, hosting and other advanced IP services — grew 16.1 percent versus the year-earlier quarter. These services represent an annualized revenue stream of more than $9 billion and are more than 26 percent of wireline business revenues. 
  • During the first quarter, the company also added 64,000 business U-verse high speed broadband subscribers.


http://about.att.com/story/att_first_quarter_earnings_2014.html

1Q14 - Investor slides
http://www.att.com/Investor/Earnings/1q14/slides_1q14.pdf




AT&T Adds Amdocs and Juniper to NFV Supplier Program

AT&T named Amdocs and Juniper Networks as two additional vendors in its User-Defined Network Cloud program.

AT&T has not revised its previously announced capital expenditure due to expected savings from cloud platforms.

“This is an ambitious program that allows us to tap into the latest technologies to enhance the network infrastructure,” said Tim Harden, president, AT&T Supply Chain. “We’re taking another step toward building the faster, simpler and more flexible network of the future that provides increased global connectivity with easily scalable and faster content delivery.”

http://about.att.com/story/att_adds_amdocs_and_juniper_to_its_user_defined_network_cloud_supplier_program.html


In February, AT&T outlined its vision of a User-Defined Network Cloud that is open, simple, scalable and able to perform many functions.

Speaking at Mobile World Congress in Barcelona, John Donovan, senior executive vice president of AT&T technology and network operations, said it envisions a multi-service, multi-tenant platform capable of adapting to traffic demands dynamically.  The end goal is to spur innovation by making it easier to adapt the network for new services.

AT&T's Domain 2.0 supplier program, which will was announced in September 2013, will use these principles to build this new architecture based on Network Functions Virtualization (NFV) and Software Defined Networking (SDN).

AT&T also announced the first group of companies selected to work on the company’s strategy. EricssonTail-F Systems, and Metaswitch Networks have been selected to begin further discussions on design and deployment. AT&T also selected Affirmed Networks to work on a virtualized Evolved Packet Core (EPC).  Ericsson will also work on integration and transformation services. Further selections will take place through the end of 2014.

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