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IEEE ComSoc Telecom and Networking Newsletter- 7th Edition

Overview:  Lots of developments in the wireless and mobile/ cellular space, with earnings surprises at Ericsson (negative) and Nokia (postive),  3G is still on hold in China - the world's largest market for handsets.  WiMAX is endorsed by the ITU as the 1st 3G radio technology.  Market research firms and Conference panelists weigh in on the FTTH and PON markets.  Read on.....
 
Your feedback is especially appreciated as this newsletter is 100% volunteer work by yours truly.  Editorial comments are noted as "AW Opinion."
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Cellular/ Mobile News
Ericsson profit warning incurs investor wrath
 
Ericsson, the world’s largest telecommunications equipment company, stunned the markets on Tuesday last week by warning that operating income would plummet to SKr5.6bn ($873m) in the third quarter, down 36 per cent in same period last year.
 
The warning was blamed on a shortfall of profitable contracts to expand or upgrade existing mobile phone networks, notably in the US and Western Europe.
 
AW Opinion:  The largest telecom equipment maker shocked the market by revealing that high-margin sales of mobile network kits to existing customers have collapsed. Yet, as mobile traffic continues to grow, operators will eventually need to upgrade their networks, especially for broadband data and video (evolving to LTE).  At that time, Ericsson, as the market leader, will benefit.
 
For a more positive spin on the evolution of mobile broadband from an Ericsson executive, please check out the 2007 SVC Wireless Conference report:
 
 
 
Nokia sells 112 million handsets in Q3- Profits are much higher then expected
Nokia reported higher-than-expected earnings this week, saying it sold more handsets during the quarter than the combined sales of its three biggest rivals, according to Reuters. The operating loss reported by Nokia Siemens Networks was less than analysts had been expecting. The Washington Post/Reuters (10/18) , Bloomberg (10/18) , MarketWatch (10/18)
 
China keeps 3G Schedule on Hold 
Surprise!  China has no timetable for issuing third-generation mobile telephone licenses; a senior regulator announced on Thursday, saying 3G services still lacked a clear business model.  Officials are in no rush to introduce 3G wireless services in one of the world’s most important markets for telecoms equipment.
 
 
 
Sprint Nextel launches on-demand video programming
Sprint Nextel has launched a new, on-demand video service called Sprint Exclusive Entertainment. The service, available to Sprint customers carrying the Power Vision data plan, offers exclusive two-minute entertainment programming. The clips are produced in partnership with Intersport, a sports and event marketer. American City Business Journals/Kansas City, Mo. (10/15)
 
Travel organization AAA and Verizon Wireless have announced a new service called AAA Mobile, which allows Verizon Wireless customers with GPS-enabled phones to request roadside assistance, get visual and audio driving directions, and find local AAA-related points of interest. The service is available to AAA members and nonmembers alike and costs $9.99 a month. Wireless IQ (10/16)
 
Verizon Wireless announces new smart phones
Four new smartphones and PDAs will soon be available to Verizon Wireless customers. First up, Samsung's SCH-i760 smartphone, which will hit stores next month. Verizon will follow with what it calls the "ultimate connectivity device," its new XV6800. The upcoming Palm Treo 755p and Verizon's SMT5800 are both business-centric devices. InformationWeek (10/18)
 
Interim Sprint CEO takes aim at distractions
Interim Sprint Nextel CEO Paul N. Saleh says his first order of business is to regain the company's focus. Saleh's goals are to improve customer service and simplify the company's cellular business, but he denied rumors that he would cancel Sprint's plan to build a new WiMAX network. The Washington Post (10/19)
 
Motorola Deal Seen As Challenge to Nokia
On October 16, 2007 Motorola announced it will buy 50% of UIQ Technology AB, the mobile-software developer owned by Sony Ericsson, the companies said.  Financial terms weren't disclosed. The deal was interpreted as strengthening the competitive challenge to Nokia Corp. in the smart phone market.
subscription required
 
Icahn voices concern over future of Motorola
Investor Carl Icahn voiced his disapproval of Motorola in a recent interview with the Financial Times. Icahn, who owns about a 3% stake in Motorola, has called for the spinoff of the company's mobile-phone unit, which has recently struggled. MSNBC/The Financial Times
(10/15)  
 
Related article: Helping Motorola Make the Most Of Its Razr Brand (cell phone)   http://online.wsj.com/article/SB119258956460761673.html  (10/17) subscription required
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Unified Communications, Microsoft, Google, VoIP
 
Microsoft to compete with Cisco for Unified Communications
Microsoft this week unveiled its Office Communications Server 2007, a unified-communications solution that marks the company's entry into that market and puts it in direct competition with Cisco Systems.  At stake is the fast-growing market for “unified communications”. A decade in the making, this has long been one of the big unfulfilled promises of the Internet. Finally, though, the pieces for a truly converged communications market, using Internet protocol (IP) technology, may finally be falling into place. CNNMoney.com/Investor's Business Daily (10/16) and also at ft.com: http://www.ft.com/cms/s/0/dda06e34-7c34-11dc-be7e-0000779fd2ac.html
 
Microsoft's Ballmer unveils mashup tool at Web 2.0 Conference
Microsoft CEO Steve Ballmer gave a demonstration Thursday of new mashup tool Popfly, at the Web 2.0 Summit in San Francisco. The tool allows ordinary Web enthusiasts, with little or no programming knowledge, to create applications that run on sites like Microsoft's Windows Live Spaces and Facebook. InfoWorld/IDG News Service (10/18)
 
Investors expect big things from secretive GPhone
Despite keeping its "GPhone" strategy a secret, Google continues to impress investors, with per-share price recently reaching $600. Analysts predict that Google will follow a low-cost strategy and focus on attracting consumers to its numerous products, such as YouTube videos and Gmail. USA TODAY (10/14)
 
Google talks about mobile plans, but leaves out the details
During a conference call with analysts on Thursday, Google co-founder Larry Page and CEO Eric Schmidt said the company has many "opportunities" in the mobile sector, but did not provide any further details about their mobile plans, according to this article. MarketWatch (10/18)
 
New Skype desktop phone works without a computer
Ipevo has announced a stand-alone desktop phone that connects Internet-based Skype voice calls without an accompanying computer. The device, dubbed SOLO, connects via broadband and an RJ-45 Ethernet connector. ModernAgent.com (10/16)
 
AT&T Is Latest to Sue Vonage Over Patent 
Vonage Holdings Corporation disclosed yesterday that it was the target of yet another patent lawsuit from a telephone company, in this case AT&T.  That makes AT&T the third major phone company to sue Vonage, which until recently was a leader in selling phone service that rides the customer’s broadband connection.  When will the bleeding stop at Vonage and we ask  (again) can anyone make money from VoIP? 
 
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Internet Legislation
 
House approves four-year extension of ban on Internet taxes
The U.S. House of Representatives has voted in favor of a four-year extension of an Internet-tax ban. The Senate still must approve similar legislation, and President George W. Bush must sign off on it, as well, before the tax moratorium can be extended. The existing ban expires Nov. 1. ClipSyndicate (10/16) , Yahoo!/PC World/IDG News Service (10/16) , Reuters (10/16)
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WiMAX News
 
U.N. Agency Gives Boost to WiMAX
The International Telecommunication Union’s (ITU’s) radio assembly agreed late Thursday to include WiMAX as part of what is called the third-generation family of mobile standards.  The radio technology is the first to be added to the specifications for third-generation radio standards since the union approved them a decade ago.
 
 
WiMAX: Some excited; some have doubts
In Japan, several companies are ready to bid on two available mobile WiMAX licenses. But elsewhere, operators and analysts are expressing doubts about the future of WiMAX technology, and will watch the Japanese auction to see if it has any clues for deployments in other parts of the world, according to this article. International Herald Tribune (10/14)
 
The WiMAX revolution is under way says USA
USA TODAY spotlights the technology as the next step in mobile communications, promising to turn the U.S. into "one huge hot spot." The FCC is encouraging providers and handheld makers to offer consumers more access to WiMAX, which allows wireless Internet access over a wider area than standard Wi-Fi service. USA TODAY (10/17)
 
AW Opinion:  We have commented many times about WiMAX.  For our opinions, please peruse:
 
Clearwire makes mobile WiMAX push
Clearwire today starts selling a new wireless broadband card for laptops that can be used in the 44 markets where the company provides service using its proprietary technology. Clearwire will upgrade its service to mobile WiMAX next year. The Seattle Times (10/17)
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Satellite Communications 
 
Will More Satellites in the Sky Close the Digital Divide?
 
Satellites have not proved as important to high-speed communications as telephone and cable lines have. But they do have an important role in helping close the digital divide between people who have access to broadband communications and those who do not.  What’s the potential impact of satellite based Internet access on those who can not afford or obtain broadband service?
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New startup focusing on FMC 
 
Cisco veterans launch Agito Networks
Former Cisco Systems wireless experts Pejman Roshan and Timothy Olson have formally launched Agito Networks, a company geared toward fixed-mobile convergence. The company's flagship product is the RoamAnywhere Mobility Router, which allows businesses to bring employees' cellular traffic onto their enterprise WLANs. ChannelWeb Network (10/16)
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FTTH, FTTX, Carrier Ethernet
 
FTTH Conference considers what's next
Dubbed "The Content Revolution: Filling the Pipe," this year's Fiber to the Home Conference, held Septemeber 30 - October 4, in Orlando, FL, examined futuristic technologies, services, and applications. The conference focused on the need for bandwidth, bandwidth, and yet more bandwidth. The system vendors talked about the various architectural choices that might support that bandwidth.  (10/16)
 
 
Infonetics: PON sales up 3%, Ethernet FTTH up 9% in 2Q07
Worldwide PON equipment sales, including, BPON, EPON, and GPON, sequentially grew 3% in the second quarter of 2007, reaching $396 million, says Infonetics Research. Lightwave.com  (10/16)
 
Current Analysis: Transition to next-generation WAN imminent
Market research firm Current Analysis announced the findings of a survey of business migration plans for next-generation WAN services. The results indicate that while significant numbers of enterprises still employ legacy wide area networking services such as ATM and frame relay, for many, the transition to next-generation IP/MPLS and carrier Ethernet services is imminent.
http://lw.pennnet.com/display_article/309395/13/ARTCL/Display/none/Current-Analysis:-Transition-to-next-generation-WAN-imminent/?dcmp=LWDENL
AW Opinion:  Haven’t we heard this many times before?  I first started hearing about IP/MPLS replacing everything in 1998 and Optical Ethernet replacing DSL and SONET in 2001-2002.  The problem is that carriers have not built out fiber closer to the business customers.  So all the promised Carrier Ethernet services never could achieve the “liquid bandwidth” and higher rates (100 M bit/sec and above) that pundits said were needed in 1999-2000.  Further muddying the waters is PBT- a challenger to MPLS for carrier Ethernet backbones.  Nortel and BT. They recently made a joint presentation at an IEEE 802 meeting support PBT: http://www.nortel.com/corporate/investor/events/investorconf/collateral/breakout_pbt_nov16.pdf
 
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Telecom industry needs better DSL service agreements
According to Linda Beck, president of New Edge Networks, better service-level agreements for broadband connections will help stimulate usage for SMB clients and allow them to use DSL as a steppingstone to T-1 networks. Telephony Online (10/12)
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Was this newsletter too long, too short or just about right size?  What about the topics covered and the emphasis on wireless/cellular over wireline developments?
 
In our next issue we will report on the excellent US - Taiwan High Tech Forum:  Trends of the Wireless World, which I attended on 10/20/07.
Published Sunday, October 21, 2007 4:11 PM by ajwdct

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