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Wednesday, August 14, 2002 |
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• Sprint casts a wider net for its Business DSL service • Toshiba hits 3-million modem mark • Lucent, Novatel team for next-gen wireless modems • Cox Business inks Oklahoma contract Sprint casts a wider net for its Business DSL service In a move that will double its coverage area, Sprint is expanding its Business DSL offering to reach 94 markets in the United States. The company says the expanded footprint will enable it to deliver IP-based services, such as network-based IP VPN and managed security solutions, to its business customers. As part of its expansion plans, the company has signed agreements with alternative access vendors to enable the delivery of the service in markets where it does not have local access lines. The traffic over alternative DSL circuits connects directly to Sprint's native IP backbone, which uses DWDM with SONET framing, according to Sprint. To attract more customers, the company is offering ADSL, SDSL and IDSL service packages. In June, Sprint announced plans to expand its Business DSL service to include large business customers. The company rolled out the service in 32 markets. The offering designed for large business customers, offers speeds of up to 4 Megabits per second downstream and 512 kilobits per second upstream. The Business DSL service includes an installation guarantee within 45 days, a 99.9 percent network availability performance guarantee and a 90-day satisfaction guarantee. Last month, Sprint announced its Global Markets Group,
which includes its long-distance business, would exit the DSL game
in cities where it has found a better way to deliver service or
where the high access and infrastructure costs make it difficult
to continue service. At the time, Sprint stressed that its business
division would continue to offer its Sprint FastConnect DSL service.
FastConnect DSL is being offered in 34 major markets. Related stories:
In what was most likely music to the tech industry's ears, President George W. Bush said broadband could help spark the lagging economy, and the government should "remove hurdles that slow the pace of deployment." Speaking at the Economic Forum Plenary Session in Texas, Bush said, "In order to make sure the economy grows, we must bring the promise of broadband technology to millions of Americans." He said his administration is working to promote broadband and will work to prevent new access taxes. "If you want something used more, you don't tax it," he said. In a speech to high-tech executives in June, Bush said the country should commit to deploying high-speed Internet access more rapidly, although he did not outline a specific plan to make this happen. He instead said, "A lot of the action is going to come through the FCC." Yesterday's call for deregulation is a clear indication of where the White House stands on high-speed access. Broadband has been a hot topic of debate in the House of Representatives and the Senate, but tech leaders have been pushing for White House support since January. A group of tech heavyweights visited Washington just before the State of the Union in an attempt to get Bush to mention broadband on the national stage. That obviously did not happen, but many believe the President's recent speeches are steps in the right direction. Related stories:
Toshiba hits 3-million modem mark Toshiba America Information Systems is moving full steam ahead in the cable modem sector. To date, its networks product division has shipped more than three million DOCSIS cable modems in North America. In the first half of 2002, the company sold 858,000 cable modems, mostly to MSOs. During that time frame, Toshiba shipped 50,000 more DOCSIS modems than its closest competitor, Motorola Broadband, according to data reported by Kinetic Strategies Inc. in May. Motorola Broadband, however, regained its quarterly lead in North America over Toshiba at the end of the second quarter of 2002. Still, according to Kinetic Strategies figures, Motorola and Toshiba ran almost neck-and-neck in the region during the second quarter, with Motorola shipping 478,000 DOCSIS units, compared to Toshiba's 428,000. Toshiba's PCX2500 became the first cable modem to receive Euro-DOCSIS 1.1 certification from the Euro-DOCSIS Certification Board last month. The modem also was the first "production-ready" model to receive the DOCSIS 1.1 stamp at CableLabs back in Sept. 2001. The PCX2500 was introduced in the fourth quarter of 2001, along with the DOCSIS PCX3000 and the PCX5000. The PCX3000 is a voice-over-IP-enabled broadband cable modem that is based on PacketCable specifications. The PCX5000 has wireless networking features based on the 802.11b standard. Earlier this month, Toshiba was named a “preferred” vendor of cable modems based on the advanced DOCSIS 1.1 specification by Cox Communications. Motorola Broadband also lays claim to that distinction. Related stories:
Lucent, Novatel team for next-gen wireless modems Lucent Technologies Inc. has teamed with wireless data modem provider Novatel Wireless Inc. to develop next-generation wireless modems that will enable users to use their laptops or PDAs to access the Internet and their corporate networks via 3G Universal Mobile Telecommunications System (UMTS) networks. The deal calls for Novatel Wireless to develop multi-mode, multi-band UMTS/GPSR wireless PC card modems. And, for its part in the partnership, Lucent will contribute research, development and marketing support. The wireless cards will enable users to access secure company applications such as e-mail, company databases and internal Web applications from their laptops and PDAs with the same level of security they have while at the office, according to the companies. The International Telecommunications Union predicts that over the next ten years, the UMTS market will be worth more than 1 trillion dollars to mobile operators. "Our aim is to promote the rapid adoption of mobile high-speed data solutions worldwide," says John Major, Novatel Wireless chairman and CEO. "This agreement allows us to speed the development of next-generation products while also enabling carriers throughout the world to quickly introduce advanced data services using Lucent and Novatel Wireless technology," he says. Separately, in an SEC filing Lucent said the U.S. Attorney's Office in Newark, N.J. is investigating a $125-million software licensing agreement between the company and Winstar Communications Inc. Lucent said the deal, not the company, is the target of the investigation. Lucent first reported irregularities in the deal to the SEC in Nov. 2000. Winstar has since declared bankruptcy, and its assets were snatched up by IDT Corp. in Dec. 2001. The telecom giant said it is cooperating fully with the investigation. Related story:
Cox Business inks Oklahoma contract
The state of Oklahoma will be picking up the phone using Cox Business Services. The Cox Communications Inc. affiliate landed a contract worth $1.75 million with the Sooner State to provide telecommunications services to all of the buildings in the state’s Capital Complex using its hybrid fiber coax network. It beat out a bid from SBC Communications Inc.’s Southwestern Bell subsidiary for the contract. The contract for telecommunications includes digital voice service, data and commercial video services using a brand new Primary Rate Interface (PRI) recently installed in the state government buildings. A Cox subsidiary, Cox Oklahoma Telcom LLC, provides regulated telephone services in the state. The new Cox system will process 20 percent more calls than the older analog telephone lines, which at present handle about 65,000 calls hourly when the legislature is not in session. A recently upgraded Local Area Network at the complex also will allow for file sharing and other database applications. "Cox is proud to be the first cable company to wire lifeline services to a state capitol complex," said Mollie Andrews, vice president and general manager of Cox Business Services Oklahoma. "As a facilities-based provider, we offer a competitive choice
for reliable telecommunications services. It’s a choice that will
translate into substantial benefits for the State, and ultimately,
the taxpayers of Oklahoma." Related story:
The industry is full of movers and shakers. The latest: Executives are set to depart AT&T Broadband; Comcast taps Reardon; and Motorola names a PCS president. Schleyer, Cooper to depart AT&T Broadband Schleyer is the unit's chief executive, while Cooper is chief operating officer. Steven Burke, Comcast Cable's president, has been tapped to run the combined company. David Fellows, AT&T Broadband's chief technology officer, also is expected to accept a leadership role at the merged company. Comcast taps Reardon In her newly created position, Reardon will be responsible for all aspects of Comcast's human resources including hiring, compensation, benefits, succession planning and training and development, as well as Comcast University. Reardon also will serve as a corporate vice president of Comcast Corp. Motorola taps Lynch To take up the post, Lynch leaves his position as executive
vice president of Motorola's Integrated Electronic Systems Sector.
He will report to Mike Zafirovski, president and chief operating
officer.
Ericsson boss is hopeful battered
telecom
The chief executive of wireless equipment maker LM Ericsson said yesterday that he expects the recession in the telecommunications market to flatten out next year, but added there were no clear signs of a turnaround. Kicking off a 10-country tour to present the Swedish company's $3.2 billion (30 billion kroner) share-rights issue, Kurt Hellstroem said spending by telecommunications carriers cannot fall much more. "We're not alone in thinking that this market will come back again," Hellstroem said. "Somewhere there is a bottom and we're close to it." Ericsson shares have fallen 95 per cent on the Stockholm Stock Exchange since 2000 as operators cut spending due to the slow introduction of third-generation technology, which offers transmission speeds at nearly 40 times greater than existing standards and access to Internet services, video and e-mail. But spending by network operators "cannot fall that much more," Hellstroem said. "Then one would have to be seeing a catastrophic situation. But customers won't be spending zero. They will invest, we just don't know how much." Ericsson said downgrades in its credit rating this year had left it in a more vulnerable position. This summer, both Moody's Investors Service and Standard & Poor's lowered Ericsson's credit rating to junk status.
• DirecWAY launches in Puerto Rico Hughes
Network Systems Inc. has launched its DirecWAY broadband Internet
services in Puerto Rico. The service is available to residential
customers throughout Puerto Rico. • Agere downsizes Agere Systems announced plans to shed 35.7 percent of its work force by the end of the year. The elimination of another 4,000 jobs will reduce the company employee roster to 7,200 by 2004. The company also said it will seek a buyer for its optoelectronics business. It plans to discontinue the business in June. • Pace gateway wins Euro-DOCSIS 1.0 qualification Pace Micro Technology's Di4000 set-top box has been awarded Euro-DOCSIS 1.0 qualification from the Euro-DOCSIS Certification Board. The digital cable gateway, which is equipped with a 175MIPS processor and 32 Mbytes memory capacity, enables the delivery of interactive TV applications such as e-mail, Internet access, home shopping and banking. • AOL Time Warner ups VIVA Media stake AOL Time Warner Inc. has increased its stake in German cable and satellite television music company VIVA Media through the purchase of shares formerly held by EMI Group. The purchase increases the multimedia giant's stake by 15.3 percent to 30.6 percent. The move expands AOL Time Warner's presence on the
international stage. The two companies have partnered in the past
to form VIVAPLUS, a cable music channel with complementary interactive
content and services. The two also formed a distribution joint venture
between Turner International and Zee Telefilms to offer international
and local television channels to viewers in India. • SCTE seeks nominations for 2003-2005 board The Society of Cable Telecommunications Engineers has put out a call for nominations for the seven available seats on its board of directors. Elected board members will take office on May 11, 2003, and will serve for two years. Nomination forms are available in the membership section of the SCTE Web site at www.scte.org. Nominations are being accepted for the following seats:
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