Alan's Networking Analysis

IEEE ComSoc Newsletter of Telecom and Networking Technologies- 5th Edition

US Telecom's Executive Business Forum Explores Opportunities to drive Broadband Growth

Top-tier executives discussed new business models and opportunities in the broadband world at the Executive Business Forum, held in San Jose, CA from Sept 10-12th. Cisco keynoted the Sept 10th dinner, while Embarq (the SPRINT Local spin-off) Chairman and CEO Dan Hesse keynoted the Sept 11th morning session. Dan shared his thoughts on the intertwined future of the telecom industry. Attendees also heard an assessment of broadband-video deployments from leading executives and CTOs in the industry. Other sessions focused on hot topics facing the industry today, including new broadband opportunities; wireless options, including the upcoming 700-MHz auction; and IPTV. In a session on broadband video deployments, Chris Rice, CTO of AT&T, described AT&T´s nationwide roll out of U-Verse. Other panelists included: Bill DeMuth, CTO of, SureWest; Walt Clay, President & CEO of Hutchinson Telephone; and Bob Udell, Senior V.P., Consolidated Communications. They each shared perspectives for deploying various video networks to service areas of all sizes.

On Sept 12th, featured a compelling look at the financial outlook for the telecom industry. Stifel Nicolaus' Frank Gallagher explored the financial implications for today's rapidly evolving communications industry and stressed the need for regulatory certainty in the market. "The investment community plays a key role in how telecom companies are able to expand, invest and compete for business," explained USTelecom CEO Walter McCormick. Attendees also heard a lively and informative panel discussion on the true metrics of value for telecom providers.

http://www.ustelecom.org/index.php?urh=home.events.ebf_highlights

-->Please contact this author if you are interested in a report or analysis of this conference, which he attended.

ATIS Publishes OAN Assessment and Work Plan - emphasis is on G-PON

The ATIS Technology and Operations (TOPS) Council formed the Optical Access Networks Focus Group (OAN-FG) to "investigate the issues associated with the development of standards for FTTX and optical networking technologies." The OAN-Focus Group has met periodically for approximately six months and has conducted a comprehensive analysis of G-PON based optical access systems and specifications, assessing what processes, standards and specifications are in place and what items still need to be defined and/or refined to enable successful deployment of the technology. The outcome of that process is this report, which includes:

• An overview of G-PON-based access architectures and the standards associated with them.

• An assessment of the various options for transporting TDM over G-PON and related issues, culminating in a recommendation for narrowing the industry’s focus to a single method: TDM over packet over G-PON.

• An assessment of G-PON interoperability activities relative to defined "keys to success" for industry-wide interoperability efforts and recommendations on what ATIS and its member companies can do to help the activities achieve more of the keys to success.

• A comprehensive assessment of the G-PON standards landscape with a gap analysis showing areas in need of additional focus.

FTTx access network deployments today are generally either point-to-point, using the so-called "active" Ethernet technology, or are based on Passive Optical Network (PON) technology. Within the PON options, deployments to date have largely made use of either Broadband PON (B-PON) or Ethernet PON (E-PON) technology to deliver between 600 Mbps and 1.2 Gbps of capacity with up to 1:32 split ratios in the distribution network. Point-to-point Ethernet (over a single fiber) and E-PON technologies have been standardized by the IEEE 802.3 and 802.1- originally as part of the 802.3ah Ethernet in the First Mile (EFM) project, while the primary force behind B-PON and its successors has been the Full Service Access Network (FSAN), with international standardization occurring in the ITU-T.

As with most new technologies, PON technologies continue to advance. Over the past several years, FSAN and the ITU-T have been focusing on realizing higher speeds with G-PON, which has the capability to deliver more than twice the bandwidth of E-PON at its maximum speed of 2.5 Gbps. The G-PON standards further build on B-PON by enabling higher split ratios (up to 1:64 splits) and the ability to achieve the 20km optical loop length distances. Further efforts are underway within FSAN and the ITU-T to support WDM enhancements to G-PON, while IEEE 802.3 is working on a 10Gbit version of E-PON.

Within the USA, the three largest local telecommunications service providers have selected G-PON as their technology of choice for fiber to the residence deployment. Therefore it is important to the USA-based telecommunication industry that any standardization-related issues that could impair the successful deployment of optical access networks employing G-PON technology be identified and remedied.

-->Please contact this author if you are interested in evaluation of the ATIS OAN Report.

ATIS Report Makes Recommendations on IPv6 Implementation

A new report issued by the ATIS IPv6 Task Force outlines the key technical and operational priorities for the implementation of IPv6. The ATIS Internet Protocol version 6 (IPv6) Task Force Report on IPv6 Transition Challenges (July 2007) is the Task Force’s second phase of IPv6 analysis and was made at the request of the ATIS Technology and Operations (TOPS) Council and Board of Directors. Security, address allocation policies, site multi-homing, and interoperability between IPv4 and IPv6 cited as high priority

The report identifies 18 key transition challenges, several of which have been identified as high priority: address allocation policies, site multi-homing, quality of service, security, interoperability between IPv4 and IPv6, network address translators (NATs), and impacts on network traffic and routing.

The recommendations of the IPv6 Transition Challenges report build upon a previous Task Force document entitled "ATIS Internet Protocol version 6 (IPv6): Report & Recommendation, May 2006" and note that significant advancements within the industry to address several areas identified in the initial report already have taken place. Spurred by the United States federal government’s June 2008 deadline for IPv6-compliant agency infrastructure, the debate over the shrinking number of available IPv4 network addresses, and growing customer interest in new network services, the TOPS Council created the IPv6 Task Force in October 2005 to assess the key drivers behind the transition to IPv6 and the impacts a transition will or may have on existing IPv4 infrastructure.

http://www.atis.org/

Sprint Nextel launches Airave- a wireless-convergence device

Sprint Nextel begins selling its Airave device on Sept 17th in Denver and Indianapolis. One of the big complaints lodged against wireless phone companies is poor signal quality inside buildings, especially homes. Sprint Nextel Corp. is trying to overcome that obstacle with a device that boosts wireless signals indoors and directs the calls over the Internet. The Airave taps into broadband connections to connect calls over the Internet. It has a 5,000-square-foot range, outside of which calls revert back to Sprint's wireless network

http://www.washingtonpost.com/wp-dyn/content/article/2007/09/17/AR2007091700114.html

Analysts weigh in on Apple's potential wireless bid for 700MHz spectrum Industry analysts are divided over the recent rumors that Apple will place a bid in the upcoming FCC wireless-spectrum auction. Based on previous company behavior, some feel that a bid is likely, while others say they believe that the large investment would diminish returns.

http://www.forbes.com/home/technology/2007/09/11/apple-iphone-motorola-tech-cx_bc_0911apple.html

Cisco Integrates VMware solutions

Cisco Systems has introduced a VMware-enabled data centre provisioning system that integrates its VFrame Data Center with VMware Virtual Infrastructure. "Cisco and VMware are clearly viewing the data centre as a set of virtualized resources all orchestrated together,"  FusionStorm Chief Technology Officer Vince Conroy said.

http://www.techworld.com/opsys/news/index.cfm?newsID=10063&pagtype=all

Global VCs rush to join Web 2.0: Financial Times (Sept 17, 2007) by Richard Waters in San Francisco

Entrepreneurs and venture capitalists around the world have rushed to copy the latest web trends emanating from Silicon Valley in recent months, according to figures released today.

The spreading international interest in Web 2.0 is being accompanied by a trend towards adapting for corporate users the new technologies developed for consumers, such as blogs, social networking and mash-ups. This mirrors the evolution of the first wave of "dotcom" investing, which also expanded from its roots in consumer services in the San Francisco Bay area.

Private investment in Web 2.0 companies more than doubled in Europe in the first half of this year to $51.5m (£25.6m), according to figures from Dow Jones VentureOne and Ernst & Young. With Israel and China, other centres for VC investment, cash put to work outside the US climbed by nearly 60 per cent to $107m.

In the US, however, Web 2.0 investment fell back slightly to $357m, reflecting the large number of companies financed there in previous years. The pullback was particularly acute in Silicon Valley, as big Web 2.0 investors such as Benchmark Capital, Kleiner Perkins Caufield & Byers and Omidyar Networks, the private financing vehicle of Ebay founder Pierre Omidyar, cut back on their investments.

The pause suggests some big investors are already heavily invested in Web 2.0 and unwilling to increase their exposure until they have more opportunities to cash in some investments, said Jessica Canning, director of research at VentureOne. Private investment remains far lower than in the first wave of dotcom growth, and public stock market investors have so far barely dipped their toes in the water. In the stock market euphoria of the late 1990s, venture capitalists pushed their overall web investment above $100bn at the peak of the boom.

www.ft.com (subscription may be required to access articles)

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Paetec Holding Corp. sealed a deal to purchase telecom provider McLeodUSA for $492 million, marking the end of independence for one of the leading lights of the dot-com boom. The combination will create one of the largest rivals to AT&T Inc. and Verizon Communications for business-telephony services. After the deal is completed, Paetec is expected to have 3.4 million access lines. It will also have 17,000 miles of fiber-optic routes, used to connect cities including Dallas, Houston and Seattle. McLeod was one of the darling competitive carriers during the dot com boom that went bust.

http://online.wsj.com/article/SB118998913931729276.html?mod=djemalert

http://www.newsobserver.com/1566/story/706124.html

T-Mobile USA agrees to acquire SunCom Wireless

T-Mobile USA has signed a deal that will allow it to acquire all outstanding common-stock shares of SunCom for about $2.4 billion in cash and assumed debt. The deal would likely help T-Mobile expand its services into the southeastern U.S. and the Caribbean, where SunCom has substantial holdings. Where does this leave Metro PCS now that Leap Wireless rejected their bid?

http://www.telecom.paper.nl/news/article.aspx?id=184312

Alcatel-Lucent warning raises U.S. spending worries

Alcatel-Lucent's recent revenue warning is raising worries about weaker U.S. wireless network spending, which could also hurt other communication equipment makers such as Nortel Networks Corp. While telecom operators AT&T and Verizon -Wireless say they are not cutting spending, Alcatel-Lucent blamed North American wireless customers for its lowered quarterly revenue forecast issued on Thursday. Carriers may have found demand for third-generation high-speed wireless services was weaker than expected, analysts said. 3G has been slow to gain ground in the U.S. market.

Many analysts, including this author, believe that the telecom recession/ depression, which followed the dot.com bust never really ended! We also think that industry consolidation, coupled with competition from China (ZTE and Huawei) has made the going much rougher for network equipment vendors.

http://www.reuters.com/article/reutersEdge/idUSN1339598520070914