|
Today's report from Web Editor Susan
Rush
• AT&T Broadband
deploys BigBand solution
• WorldGate shuffles
staff, makes cuts
• Juniper bows compact
CMTS
• Harmonic tumbles on
revised outlook
• Companies respond
to OCAP RFP
• Tollgrade Communications
to cut 47 jobs
• SCTE seeks ’03 Expo workshop
proposals
• Qwest president in e-mail:
"I will take the fall" for deal
• Broadband
briefs
AT&T Broadband deploys BigBand
solution
BigBand Networks Inc. has launched a self-healing redundancy
solution for digital cable services and has landed
AT&T Broadband as the first customer for the new product.
The product is designed to increase cable network
reliability by enabling an alternative headend to immediately
restore digital video to subscribers if the primary headend fails,
BigBand said. "It is increasingly important that the
cable industry avoid service interruptions, given the expansion
of revenue-generating programming provided," said Richard
Peske, BigBand's vice president of product marketing. The product
leverages Gigabit Ethernet to improve system reliability, he said.
The company claims its self-healing redundancy product
is the first of its kind on the market.
AT&T Broadband is the first customer to deploy
the redundancy product. The cabler will deploy the solution in
its Atlanta system, which passes more than 1.2 million homes.
Financial terms were not disclosed.
In August, BigBand announced its Broadband Multimedia-Service
Router had reached a milestone, serving more than 1.5 million
digital cable subscribers in North America. The company has deployment
deals for its BMR with Time Warner Cable, Cox Communications,
Blue Ridge Communications and Rogers Cable.
BigBand's technology is designed to boost bandwidth
efficiency by grooming standard-definition television (SDTV) and
high-definition TV (HDTV) in the same channel. The BMR platform
also is designed to handle new services such as targeted digital
advertising and video-on-demand over standard video and data interfaces
such as DVB-ASI, Fast Ethernet and Gigabit Ethernet.
When connected with BigBand's headend redundancy
solution, BMRs accessing digital programming overcome outages
by switching to remote backup sources via high-speed transport.
Related stories:
BigBand reaches digital milestone, 4/11/02

WorldGate shuffles staff, makes
cuts
To ensure
WorldGate has enough cash to fund itself through at least
the next four quarters, the company is making some changes.
WorldGate said it is taking steps to get its priorities
in line. First, the company will transfer some of its employees
to TVGateway LLC, its joint venture with Adelphia Communications
Corp., Charter Communications Inc., Comcast Cable Communications
Inc. and Cox Communications Inc. The transfer also
will encompass some of the functions WorldGate has been providing
to TVGateway. The move will put the responsibility on TVGateway
to pay for certain expenses and take some of the burden off WorldGate.
The company said it is taking these steps in response to the decreased
capital spending in the telecom and cable industries.
WorldGate said it remains committed to the TVGateway
venture.
While some employees will move over to TVGateway,
WorldGate plans to further reduce its staff by 50 employees.
The company is making the cuts as it works to streamline its business.
To maximize operating expenses, WorldGate plans to defer some
"lower priority projects" and shift its internal reporting
structures, the company said.
WorldGate also has named Joel Boyarski chief financial
officer. He is leaving his post as vice president and general
manager of the company's TVGateway activities to assume the position.
Boyarski is replacing James Agnello who is leaving the company
to become a CFO of a publicly held company in New York.
Related stories:
WorldGate rolls out Go!TV Links, 8/15/02
WorldGate, Motorola extend iTV partnership, 6/24/02

Juniper bows compact CMTS
Juniper Networks will tackle the small- to mid-sized MSO sector
with a new “pizza box” cable modem termination system (CMTS) dubbed
the “G1.”
The G1 complements Juniper’s DOCSIS 1.1-qualified G10 model, a
full-chassis, “carrier-class” CMTS. Both models house Juniper’s
home-grown silicon, the “Broadband Cable Processor.” Juniper jumped
into the CMTS game headlong back in Nov. 2001 when it acquired
start-up Pacific Broadband Communications in a stock deal valued
at $200 million.
The G1 marks the latest compact “next-generation” CMTS to enter
the ultra-competitive cable access technology sector. Vendors
such as Arris, Motorola Broadband, ADC Telecommunications, Terayon
Communication Systems and Cisco Systems have also introduced compact
models based on the DOCSIS 1.1 specification.
Juniper, instead of coming out with a “me, too” compact CMTS,
is offering a product that takes care of particular cable operators
concerns, said company Product Marketing Manager Chris Bridge.
Specifically, the G1 addresses the needs of smaller operators
that a space crunch on the network and/or networks with high noise
impairment conditions, an area that typically is covered by proprietary
equipment.
Even in those cases, some smaller operators can’t afford the upgrade
to DOCSIS or, because of noisy plant, can execute the upgrade,
but at minimal upstream bandwidth levels. The G1 can operate QPSK
at 10 dB or 16 QAM at 21 dB -- noise levels much lower than some
existing equipment, Bridge added.
Because the G1 supports two downstream, the box can support a
theoretical maximum of 4,096 cable modems, Bridge said. When the
box’s 8 upstream channels are factored in, the box supports a
symmetrical 80 Mbps up and down.
Bridge said there is particular eagerness for the G1 in Asia,
a region populated by a large number of individual operators that
run rather noisy cable networks.
Bridge said the G1 is in beta field trials today with undisclosed
MSOs in Asia, Europe and North America, and will be shipping for
revenue in mid-October. Under an existing deal, Scientific-Atlanta
Inc. serves as Juniper’s exclusive reseller of CMTS chassis and
line-card in North America and as its non-exclusive international
reseller.
Juniper submitted the G1 for DOCSIS 1.1 qualification in certification
wave 23, which was completed on Sept. 20. Bridge said Juniper
is waiting for final comments from CableLabs. The vendor also
expects to submit its new compact CMTS for testing in the next
EuroDOCSIS certification wave.
In a separate announcement, Juniper said Taiwan-based Yaw Jenq
Technology Corp. inked a deal to deploy the vendor’s G-series
CMTSs and ERX Edge Routers as part of an effort to build a multiple
ISP cable network. Financial terms were not disclosed.
- Jeff Baumgartner, CED

Harmonic tumbles on revised outlook
Wall Street is frowning on
Harmonic Inc.'s stock, following a revised third-quarter outlook
that will come in below previous expectations.
The company expects to post Q3 sales of between
$37 million and $39 million, citing a significant slowdown in
orders from its domestic cable customers. Its Broadband Access
Networks division, which manufacturers fiber optic products for
broadband cable networks, is forecasting sales in the range of
$13 million to $13.5 million, down from the previous quarter's
$23.6 million. Its Convergent Systems division, which manufactures
digital headend systems, will post revenue of between $24 million
and $25.5 million, down from $32.7 million in the second quarter.
Harmonic expects to record a pro forma loss for
the third quarter of between 17 cents a share and 22 cents a share.
Analysts on average were expecting a loss of 8 cents a share,
according to Thomson First Call.
As of 12:18 p.m. EDT, Harmonic shares were shedding
nearly 29 percent of their value, trading at $1.25. The company's
shares have traded as low as $1.10 and as high as $15.13 in the
last 52 weeks.

Companies respond to OCAP RFP
Less than two months after putting the call out,
14 companies have responded to
CableLabs' OpenCable Application Platform (OCAP) request for
proposal for implementations.
OCAP, which is largely based on Europe's MHP platform,
is a specification tied to middleware that eventually will populate
OpenCable-based digital set-top boxes and other devices. OCAP
version 1.0, published in January, includes an execution engine
(EE) based on Java technology, while OCAP 2.0, published in May,
calls for both an EE and a presentation engine (PE).
CableLabs said it put the shout out in early August
to solicit industry implementations of OCAP to hasten the ability
of cable operators to launch new services made possible by OCAP.
"Most of the responding companies have extensive experience
with the European MHP specification," said Don Dulchinos,
vice president of Advanced Platforms and Services.
The 14 companies responding to the RFP include ADB,
Alticast, Canal+ Technologies, Espial, Liberate Technologies,
Microsoft, OpenTV, Panasonic, Philips, Pioneer, Samsung, Tata
Elxi, Vidiom Systems and Zentek/DigiSoft.
Many of the suppliers have implementation target
dates of as early as the first quarter 2003. "Most of the
developers appear to have roadmaps for porting the software to
various hardware platforms, so we expect to see some OCAP implementations
in the labs for testing within the next several months,"
CableLabs CEO Dick Green said in a statement.
Related story:
CableLabs OCAP conference lures large turnout, 2/27/02
CableLabs: At long last, OCAP, 1/4/02

Tollgrade Communications to cut
47 jobs
Copyright 2002 Knight Ridder/
Tribune Business News
Copyright 2002 Pittsburgh Post - Gazette
Pittsburgh Post - Gazette...10/01/2002
From LexisNexis
Steve Massey
Tollgrade Communications Inc., citing further spending cutbacks
by telecommunications clients, yesterday said it will eliminate
47 jobs, warned that third-quarter earnings would fall on the
lower end of already reduced forecasts and said Chief Executive
Officer Chris Allison would seek another pay cut.
The Cheswick-based maker of remote testing equipment, which last
year cut a quarter of its work force as profits fell by half,
said the latest actions should generate annual savings of $3.6
million and result in a fourth-quarter charge of $200,000.
"While Tollgrade continues to meet many of our goals in an
extremely tight telecom market, we must be prudent in how we manage
our business," Allison, also the chairman, said in announcing
the cuts after the markets closed yesterday.
The company, which in July said it expects earnings for the third-quarter
that ended yesterday to range from break-even to 6 cents a share
and revenue to range from $12 million to $15 million, said revenue
for the quarter should total $13.9 million.
Allison last year took a 20 percent, or $60,000, reduction in
his base salary.
Related stories:
Jumpstarting status monitoring standards, 8/02
Tollgrade CEO: No snow job -- 'tough sledding' in 2002, 3/1/02

SCTE seeks ’03 Expo workshop proposals
The Society
of Cable Telecommunications Engineers (SCTE) said it is accepting
proposals for technical workshops that will be held during the
2003 Cable-Tec Expo, slated for May 11-14 in Philadelphia, Pa.
SCTE said the Expo subcommittee will consider papers on any topic,
but will give preference to those covering subjects such as advanced
services deployment, support of enhanced/narrowcast services,
the new customer premises environment, security demands for voice,
video and data services, and advanced digital modulation schemes,
among others.
SCTE suggests that interested participants submit proposals as
a one-to-two-page abstract and include paper subject, title, name
of author/presenter, affiliation, mailing address and other basic
contact information. Proposals may be sent via e-mail to
expo_info@scte.org, faxed to 610-363-7133, or mailed to: Glenda
Calcaterra, SCTE, 140 Philips Road, Exton, Pa. 19341-1318
The subcommittee will announce its selections on Dec. 20, SCTE
said.

Qwest president in e-mail: "I
will take the fall" for deal: House panel is puzzled by the
message
Copyright 2002 / Los Angeles
Times
Los Angeles Times...10/01/2002
From LexisNexis
Reuters
The president of Qwest
Communications International Inc. agreed to "take the
fall" for a potentially risky deal the company pushed to
finalize in June 2000 in order to meet Wall Street expectations,
according to documents released Monday by congressional investigators.
In one puzzling e-mail exchange, Qwest President Afshin Mohebbi
in the second quarter of 2000 suggested misrouting a contract
for telecommunications capacity and then routing it as intended
because the deal was needed since others were falling through.
"I know it is risky. I will take the fall for it!" Mohebbi
said in response to a June 13, 2000, e-mail from Qwest Executive
Vice President David Boast. "If we could do this (which I'm
not sure we can), then all we have to do is get audited, get caught
and get screwed!"
"We're not sure what it means, but it sure seems shaky,"
said Ken Johnson, a spokesman for the U.S. House Energy and Commerce
Committee said. "You can sense the desperation to do a deal."
The release of the documents come a day before Mohebbi is slated
to testify before the House Energy and Commerce subcommittee on
investigations.
The panel is probing whether Qwest Communications and Global Crossing
Ltd. used network capacity swaps to artificially inflate profits.
Related story:
Qwest to restate $950 million in sales, 9/23/02

Broadband briefs:
• OpenTV shutters office
OpenTV has closed its regional office in Naperville, Ill.
The interactive software provider expects the closure to result
in a savings of $8.8 million annually.
The Naperville office concentrated on research and
development related to OpenTV's Device Mosaic technology. This
function will be transferred to the company's headquarters in
Mountain View, Calif.
• Com21 moves to Nasdaq SmallCap
Com21
Inc.'s stock has moved to the Nasdaq SmallCap Market, effective
Oct. 1. The company requested to be moved from the Nasdaq National
Market after it received a notice from Nasdaq that its stock did
not meet the minimum $1.00 bid price requirement.
The company has until Dec. 3 to comply with the $1.00
bid price requirement. The stock will continue to trade under
the symbol CMTO.
• Eastern Broadband Telecom taps Nuera
Taiwan's Eastern Broadband Telecom has selected Nuera
Communications Inc. to provide its Orca RDT-8v Voice-over-IP
broadband access gateway to enable the delivery of voice services
over cable.
Financial terms were not disclosed.
• Digital Broadband buys Convergent Technologies
Digital
Broadband Networks Inc. will fork over $5 million for a majority
interest in Convergent Technologies Inc. The transaction will
be funded by cash and Digital Broadband's preferred stock.
CTI provides an integrated virtual phone and unified
communications service. The deal is expected to close in the fourth
quarter.

|