|
White Papers & Reports |
||||
Broadband
Week's Library is an invaluable resource for networking
professionals who build, manage and sell broadband applications
and services. White papers, analyst reports, vendor information
and more can be found at www.bbwlibrary.com. |
|
Wednesday, August 28, 2002 |
|
• SeaChange wins Insight VOD contract, posts 2Q loss • Nortel tumbles on cuts, revised outlook • Kasenna takes VOD delivery to another level • RCN unloads New Jersey systems • Home networking package debuts for operators • SONICblue faces Nasdaq delisting • Don't let Rigases sell, Adelphia tells court SeaChange wins Insight VOD contract, posts 2Q loss SeaChange International Inc. let go with the industry’s worst kept video-on-demand secret Tuesday afternoon, revealing with the release of its second quarter numbers that the company had won a contract to be
Insight
Communications’ new VOD server and system vendor in 10 markets.
Related stories:
Nortel tumbles on cuts, revised outlook As customer spending for telecom gear continues to wane, Nortel Networks is weighing its options. The latest: the company plans to cut 7,000 more jobs and has revised its third-quarter sales forecast. The company's stock fell nearly 18 percent at one point in morning trading action. The telecom equipment giant has eliminated roughly 50,000 jobs since last year. Following these latest cuts, which are expected to be completed by the end of the year, Nortel's work force will total roughly 35,000. In May, the company speculated that its headcount would bottom out at around 42,000. Nortel has set a goal of returning to profitability by the end of June 2003. "In our drive to achieve this goal, and in light of the ongoing pressure on customer capital spending plans globally, we are taking steps to further reduce our quarterly breakeven cost structure -- not including cost related to acquisitions and any specials charges or gains -- to below $2.6 billion," Nortel President and CEO Frank Dunn said. In addition to the cuts, Nortel plans to shutter some facilities. Previously, the company had stated its quarterly break-even cost structure was $3.6 billion. Looking ahead to the third quarter, the company now expects revenue to be about 10 percent lower than the numbers posted in the second quarter. A prior forecast, called for revenue to be roughly flat. Nortel posted second-quarter revenue of $2.77 billion. Nortel shares were off 22 cents, trading at $1.01 as of 11:43 a.m. EDT. The hit others in the networking sector as well. During the same time frame, Alcatel shed 5.8 percent to $5.22, Lucent Technologies fell 11 percent to $1.68 and Cisco Systems dipped 1.5 percent at $13.81. Related stories:
Kasenna takes VOD delivery to another level With the help of Broadcom Corp., Kasenna Inc. is pushing the performance envelope for video-on-demand delivery on Gigabit Ethernet interfaces. The streaming media provider says it has achieved throughput of 910 Mbps output on a Gigabit Ethernet interface from its MediaBase XMP video delivery platform. The high-performance networking option was developed in conjunction with Broadcom Corp., using Broadcom's NetXtreme line of Gigabit Ethernet controllers. HPN is a software-based real-time delivery accelerator optimized for transferring audio or video data from a storage subsystem to a network interface, Kasenna said in a statement. The HPN driver negates the need for proprietary hardware, according to the company. "When you are able to extract high-performance out of open computing platforms, you can also let Moore's Law work for you and lower the present and future cost of systems by using commercial, volume hardware," said Satish Menon, Kasenna's chief technology officer. The HPN option will be available with MediaBase XMP in the fourth quarter of this year. In June Kasenna closed a second financing round of $22 million, led by Dresdner Kleinwort Wasserstein. The company said it would use the fund to further develop its software. Related story:
RCN unloads New Jersey systems RCN Corp. takes an expected step to shed some non-core cable systems in New Jersey to focus on its bundling service strategy. The $245 million cash deal will give control of the Central New Jersey systems and its 80,000 subscribers to private equity firm Spectrum Equity Investors and former cable executive Steve Simmons. Once the deal closes, Simmons will become chairman and CEO of a newly formed company Patriot Media and Communications. RCN acquired the New Jersey systems as part of its spin off from C-TEC Corp. in Oct. 1997, but they never fit right in the company's plan to serve major metropolitan markets. In May, RCN rolled out its Essentials package, which bundles RCN's basic video package and one set-top, one phone-line with unlimited local calling and high-speed data service with the cable modem included. The company offers the package in Boston, New York, Philadelphia, San Francisco, Los Angeles and Washington, D.C. A few weeks ago, the company debuted an
international version of Essentials in Queens, N.Y., San
Francisco, Los Angeles and Lehigh, Pa.
Home networking service, support package It seems operators have been waiting for the other shoe to drop when it comes to home networking. So far, operators have initially tested and trialed various home networking technologies in an effort to define a model that might glean some additional revenue in providing home routing and connection sharing equipment to broadband customers they already have. But one of the major sticking points thus far in defining a workable model for home networking gear has been service, and management of the network once the main system cogs are in place. Today, home networking dwells in the retail world, and when new users inevitably encounter questions about opening and closing ports, configuring a new device on the network, or installation of a firewall, they have few options in where to direct those kinds of questions. They either call the gear maker or the retailer. But if and when service providers start offering home networking gear, it is their service department that will undoubtedly be the one fielding all of those new service calls. That likely scenario has been a real drag on home networking's migration to the service provider market so far. "If you look at home networking today, and take a snapshot of where the industry is, you might be inclined to say that the retailers will win the battle," explains Motive Communications' Sanjay Castelino. "But if you really look at the numbers, we're at relatively low penetration. You could argue that we're pretty much at the early adopter stage still." If he's right, that means home networks have yet to reach the mainstream, and it's the service providers who could fill a perceived gap in demand. In their favor, new gear is combining modem and routing functionality, decreasing system complexity. Also, its been proven that value-added services like home networking can reduce churn for operators, while adding a new stream of revenue to the bottom line. So, service software provider Motive Communications is answering the bell, with the release of its Home Networking Service Solution, a platform for service providers that automates much of the service and support involved with customer set-up and management of home networks. The platform is aimed at broadband service providers and ISPs, or anyone looking into offering managed services for the installation, troubleshooting and management of these new complex residential systems. The Motive solution begins at the outset, utilizing their expertise in provisioning and activation software to provide a similar platform for installing and configuring users' PCs, modems and routers. Motive also incorporates their help desk expertise in the troubleshooting portion of the platform, retrieving component diagnostic information to define customer problems and solutions. On the provider end, the platform provides support analysts a complete view of the home network and communication capability with problematic elements in the user network. The final piece of the platform allows for better customer management, walking users through the processes involved in enabling VPNs, adding new devices, and opening or closing new ports. "It's not impossible for (a provider) to roll out a home networking service without something like (the Motive solution), but if you want to do it profitably, you need something like it," adds Castelino. "Our experience in trying to diagnose a (home networking) problem over the phone-where there's multiple PCs involved and a router-is that its just going to take you much longer than can possibly be profitable." He points to some internal call center analysis the company has done, which showed that home networking problem call times were three times as long as those for traditional broadband issue calls. And with the pinch on to contain operational costs, especially in call centers nowadays, no provider will roll out home networking until they're sure they can handle the potential influx of these new complex calls.
Related stories:
SONICblue faces Nasdaq delisting SONICblue Inc.'s stock was being pummeled in early morning trading, following the news that the company has been put on notice by the Nasdaq. The PVR technology provider has received notification that its stock has closed below the minimum $1 per share requirement for continued listing on the Nasdaq National Market. The shares are subject to delisting. To keep its listing active, SONICblue's shares must close at or above $1 for at least 10 consecutive trading days by Nov. 18. News of the notice, however, caused the company's shares to lose nearly 16 percent of their value. As of 10:36 a.m. EDT, the shares were trading at 37 cents. The company's shares hit a 52-week low on Aug. 15, trading at 21 cents. Earlier this month, the company ousted its Chairman and CEO Ken Potashner, apparently because Potashner was publicly lobbing allegations of below-board loans made to company executives in conjunction with SONICblue's RioPort spinoff. He was replaced by marketing executive L. Gregory Ballard. At the time, Ballard denied Potashner was fired because of his allegations, and said the company was at a "turning point" as it moved from its graphics chip heritage and into the consumer electronics sector. Related story:
Don't let Rigases sell, Adelphia tells court
Adelphia Communications Corp. has asked a federal bankruptcy court to stop its founder from selling property that the cable television systems owner said is at least partly owned by the company. Related stories:
• WorldCom's Sullivan indicted Scott Sullivan, WorldCom's former financial chief, has been indicted by a federal grand jury, according to The Wall Street Journal. Sullivan has been charged with conspiring to commit securities fraud, securities fraud and making false filings to the Securities and Exchange Commission, the paper reported. • Liberty completes OpenTV deal Liberty Media Corp. has completed a previously announced deal with MIH Ltd. to acquire MIH's controlling ownership stake in OpenTV Corp. Liberty acquired MIH's stake in exchange for 15.4 million shares of Liberty Series A common stock and $46.2 million in cash. • Hatteras secures $45 million Last-mile carrier access platform developer Hatteras Networks has closed an additional $45 million in venture capital funding, bringing its total funding investments to $73 million. The company will use the funds to finance carrier product trials and on the further development and sales of its Access Class Ethernet platform.
|
|
Broadband Announcements |
|
Check out Broadband Week's People on the Move page. To find out who's coming and going in the broadband industry, click here. To submit company hiring news, e-mail Broadband Week's People Page.
|
|
Broadband Week Resource Links |
|
Broadband Web Directory |