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1st June 2007
Ericsson and Alcatel-Lucent awarded CMPak GSM contracts
Ericsson AB and Alcatel-Lucent have each been awarded key GSM infrastructure supply and expansion contracts by China Mobile Pakistan (CMPak).
Ericsson's contract covers the provision of a complete GSM radio network including MINI-LINK to extend coverage to 312 cities in the Sindh and Balochistan regions in southern Pakistan. Ericsson said that the project will increase network capacity and provide coverage in difficult terrain, as well as enhance operational efficiency and prepare CMPak for evolution to 3G and other advanced technologies. The value of Ericsson's contract was not disclosed.
Alcatel-Lucent's contract will see the French company expand CMPak's GSM network in northern Pakistan. Equipment will be supplied by the company's Chinese subsidiary, Alcatel Shanghai Bell Co Ltd. The value of Alcatel-Lucent's conract was not disclosed.
China Mobile Communications Corporation acquired the former Paktel earlier in 2007, renaming it CMPak. Ericsson and Alcatel-Lucent have been key suppliers to the company since its inception in 1990.
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1st June 2007
Vodafone launches HSDPA networks in Hungary and Romania
June 1, 2006 saw Vodafone Group plc subsidiaries launch high-speed wireless broadband networks in Hungary and Romania. These networks are based on high-speed downlink packet access (HSDPA) platforms and are fully-integrated into the third-generation (3G) wireless telecommunications networks of Vodafone Hungary and Vodafone Romania and operate at speeds of up to 3.6Mbit/s. In Hungary, the service is initially available in 40 towns and cities nationwide; in Romania, the service is initially available in 23 cities. Rival operators in both countries already operate HSDPA networks.
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1st June 2007
Ericsson selected by Vodafone Netherlands to manage core and transport network
Ericsson AB has signed a five-year contract with Vodafone Netherlands for a managed services co-operation. As of June 1, Ericsson has taken over all engineering, implementation, and operational activities of Vodafone Netherlands' multi-vendor core and transport network. As a result, 97 Vodafone Netherlands employees have transferred to Ericsson. The employees are based at the office in Stein, in the South Limburg region, from which Ericsson already performs other activities that were taken over from Vodafone Netherlands in 2006.
The five-year contract will enable Vodafone Netherlands to lower operational expenses, thereby enhancing its platform for growth, while Ericsson will provide quality network performance to Vodafone Netherlands' customers. Since 2002, Ericsson has entered into more than 100 managed services contracts with operators worldwide.
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1st June 2007
Five US operators receive Networx contracts from GSA
AT&T Inc, Level 3 Communications, Qwest Communications International Inc, Sprint Nextel Corporation, and Verizon Communications have been awarded Networx Enterprise contracts by the US General Services Administration. These contracts - which could be worth as much as US$20 billion over 10 years - allow the companies to bid on business tenders issued by more than 130 government agencies and managed under the GSA's Networx Enterprise programme. Previously, the GSA had awarded bidding rights to the Networx Universal contract scheme to four operators, valued at US$48 billion over a 10-year period.
AT&T had previously been awarded the rights to bid for contracts under the Networx Universal programme. Under the terms of the Networx Enterprise contract, AT&T Government Solutions can compete for task orders for wireless, optical, and IP-based services. The Networx Univeral programme will allow AT&T to provide a full range of network and communications services to agencies. AT&T will sub-contract to its partners, Northrop Grumman Information Technology, EDS, GTSI Corporation, SRA International, Bechtel National, and Global Crossing.
For its part, Level 3 will partner with IBM Internet Security Systems, Unisys Corporation, Multimax Inc, and a team of small businesses to support government agency needs with a comprehensive suite of network services, security services, and managed network services. Like AT&T and Level 3, Verizon Business has access to both the Networx Enterprise and Networx Universal contract pools.
Sprint Nextel had been left out of the Networx Universal scheme when the GSA selected service providers two months ago, but has the opportunity to capitalise on the US$20 billion Enterprise scheme over the following decade.
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1st June 2007
Hutchison Telecom selects NEC's mobile Internet platform
NEC of Japan has received orders for its Mobile Internet Platform (NEMIP) from Hutchison Telecommunications (Hong Kong) Limited (HTHK), which began providing i-mode wireless Internet services in Hong Kong on May 30, 2007.
NEMIP enables the provision of i-mode service, one of the most advanced mobile Internet services. This platform is an integrated solution composed of integrated subsystems such as gateways, mail server systems, and portal systems which incorporate multi-operator functions. A portal subsystem delivers the content and makes it easy for users to manage their subscriptions through a minimal number of clicks on each mobile terminal to personal menus and services. The platform offers complete management of user information, content and services information, agent charging and billing in addition to flexible support of new features for future release.
Furthermore, the multi-operator function, an enhanced feature of NEMIP, allows mobile operators to share a common i-mode platform and service with their affiliated companies, thus enabling Hutchison Telephone (Macau) Company Ltd, a subsidiary of HTHK, to introduce i-mode service in Macau in the near future.
The i-mode platform was developed by NTT DoCoMo of Japan and is used under licence by operators, software developers, and equipment vendors, including NEC.
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1st June 2007
Telmex buys second Peruvian cable operator
Teléfonos de México (Telmex) has reportedly acquired Lima-based cable TV operator, Virtecom, making this its second cable TV acquisition in Peru, following its purchase in February 2007 of Boga Comunicaciones, a holding company that owns Cable Express, another Lima-based cable TV operator. Virtecom operates under the Mega Cable brand name.
Details such as the value of the deal were not forthcoming at the time of publication, but it is believed that the Peruvian regulatory authorities, including telecommunications watchdog Organismo Supervisor de Inversión Privada en Telecomunicaciones (OSIPTEL), are not opposed to the acquisition as Telmex would use the operators' networks to deliver 'triple play' bundles of voice, data/Internet, and video services, notably lacking in the country.
Through its local subsidiary, Telmex has been offering local and long-distance telephony as well as Internet access services in Peru for nearly 10 years.
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31st May 2007
Nokia Siemens Networks to supply interactive mobile game for Maxis in Malaysia
The Malaysian mobile operator Maxis Mobile Sdn Bhd has commissioned Nokia Siemens Networks to integrate, deliver and host the interactive mobile game "Master of Maya". The game, which will be launched by Maxis in the end of May 2007, is designed to let players use their mobile phones to compete online against each other over Maxis’ mobile network.
Nokia Siemens Networks delivers an end-to-end solution, from programming and systems integration, to managing the day-to-day operation of the game over the network. By selecting Nokia Siemens Networks’ offering, Maxis is able to rapidly and cost-effectively roll-out this new gaming application to its customers, while focusing on marketing, sales and customer satisfaction.
"Master of Maya" was jointly developed by Nokia Siemens Networks and UFA / FremantleMedia, and will be actively advertised by Maxis at the end of May 2007. "Master of Maya" is the world’s first trading card game for mobile phones in which the gaming experience is expanded by downloading additional cards over Maxis’ mobile network and then directly introduced into the game. Costs for acquiring new playing cards are charged by mobile billing, however data transfer for online gaming time is otherwise free for Maxis clients. To promote networking with other players, card-trading or online strategy discussions, an extensive community website is available which has been developed by Nokia Siemens Networks and will be also supported and operated by the company.
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31st May 2007
Australia moves closer to a competitive national broadband network as G9 lodges SAU with the ACCC
In a move which brings Australia one step closer to a competitive national broadband network, the G9 consortium of telecommunications companies have announced the lodgement of a Special Access Undertaking (SAU) with the Australian Competition and Consumer Commission (ACCC).
The SAU is an important step in the G9’s plan to build a competitive national broadband network using fibre-to-the-node to deliver high-speed Internet access. The proposed network will reach more than four million households and businesses and then progressively roll out to more densely populated regional centres. The network would be financed through domestic and international debt and equity markets and would not require government funding.
Paul O’Sullivan, SingTel Optus Chief Executive, said: “The roll out of a national high-speed broadband network is one of the most crucial infrastructure decisions of this decade. The G9 believes Australia’s future is best served by a co-ordinated approach to building an open access network via an open tender process.
“The lodgement of the final SAU is the culmination of 14 months of intense work between G9 members, financiers, policy makers and the ACCC. It demonstrates the G9’s unwavering commitment to competitive and open access broadband.”
David Tudehope, Chief Executive Officer of Macquarie Telecom, said: “The G9 is about promoting effective competition in line with government policy. We have been working through the established regulatory process to ensure the SAU has the best chance of acceptance by the ACCC. We expect it to be viewed favourably by the ACCC because the undertaking gives consumers access to lower prices, improved broadband and is pro-competition.”
Ravi Bhatia, Chief Executive, Primus Telecommunications Pty Ltd, said: “The G9 has a solid roadmap that guarantees choice and innovation. The G9 proposal will put an end to the unnecessary delays and deliver high quality high-speed broadband to Australian consumers at affordable prices.”
The G9 is the only telecommunications group to make public a detailed plan for a FTTN network and to lodge an SAU with the ACCC.
The G9’s plan is designed to ensure that Australia is a competitive broadband market giving consumers and businesses a wide choice of providers and offerings – all delivered over the one national network.
The purpose of the SAU is to set out the terms and conditions and give the ACCC the opportunity to approve or reject them. The price and other terms and conditions on which all telcos – including G9 members, Telstra and any other interested parties - are set out in the SAU. The SAU contains a detailed description of the new network and the services to be offered on it.
Initially, access prices (per customer per month) will be in a range between A$15 and A$25 for basic telephone access service; A$19 and A$29 for the basic service plus a 1.5Mbit/s broadband service; and, between A$40 and A$50 for the basic service plus a broadband service of up to 24Mbit/s. The network can be upgraded to higher speed (VDSL) over time as consumer demand dictates.
According to the G9, these prices are substantially lower than those Telstra is reportedly planning to charge if it were to build a national broadband network.
This means that the G9’s model will deliver more competition than Telstra’s model, higher take-up of broadband and faster realisation of the national productivity benefits which broadband can deliver.
The G9 aims to ensure that Australians have access to reasonably priced, high quality broadband services from a range of providers.
The SAU also describes in detail the corporate governance and investment models underpinning the G9 proposal.
Now that the SAU has been lodged, the G9 anticipates the ACCC will undertake a public consultation process. The ACCC will likely issue a discussion paper in around two weeks’ time and then call for submissions from the industry and the public.
A copy of the G9 FTTN SAU will be available on the ACCC website (www.accc.gov.au).
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31st May 2007
UK regulator extends broadband opportunities in rural areas
UK regulator, Office of Communications (Ofcom), has introduced new regulations to extend wireless broadband access across the country, including in rural areas.
The regulations cover the 5.8GHz band, currently used by a number of operators to provide fixed wireless broadband services in the UK. Under the new regulations, which come into effect on May 31, the operators will be able to increase power levels, potentially extending the range and variety of services into parts of the country that were previously not covered. This is likely to have its most marked effect in rural areas.
Ofcom's Communications Market Report: Nations and Regions, published earlier this month, found that while the geographic gap is closing a digital divide still existed in the UK. The report showed that 41% of adults living in rural areas had broadband Internet at home compared to 45% of adults in urban areas. The power increase in this band will make it less expensive for operators intending to use this band to provide fixed broadband access to remote parts of the UK.
Ofcom Chief Executive Ed Richards said: "This measure means communities across the country may be able to benefit from access to a new form of broadband. That is what closing the digital divide is all about."
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31st May 2007
Motorola to make more cost savings and job cuts
Motorola Inc has provided an update on its cost-reduction initiatives that the company committed to during the first quarter of 2007. The company said it is on target to achieve the US$400 million in annualised cost savings that it announced in January. The company noted that its previously announced workforce reduction of 3,500 will be completed on schedule by June 30.
In addition, after a comprehensive business review by the senior management team, the company expects to achieve another US$600 million in annualised cost savings in 2008 through a combination of an additional workforce reduction of approximately 4,000, prioritisation of investments, continuing discretionary-spending controls, general and administrative expenses and site rationalisation.
"Long-term, sustainable profitability is - and always has been - Motorola's top priority," said Tom Meredith, Chief Financial Officer, Motorola Inc. "Today's actions are an update to the commitment we made during our first-quarter earnings conference call - to drive out additional costs - and a continuation of the plan we announced in January. We are confident that the steps we are announcing today, together with the actions that we have outlined previously, will further improve the company's financial and operational performance and create value for our stockholders."
"We are taking steps to ensure that, as these cost reductions are implemented, there will be no adverse impact on customer service and support, product quality and those research and development programmes that are expected to contribute meaningfully to Motorola's revenues, profits and cash flow in 2008 and beyond," said Greg Brown, President and Chief Operating Officer,
Motorola Inc.
In connection with this announcement, the company expects to record additional restructuring charges of approximately US$300 million, or approximately US$0.08 per share. The charges are expected to be incurred over the remainder of 2007 and will consist primarily of severance and related expenses resulting from the workforce reductions.
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31st May 2007
New Zealand government to auction 2.3 - 2.5GHz spectrum in December
The Ministry of Economic Development, Communications Division - New Zealand (MED) has announced that it will auction wireless broadband spectrum in December 2007 to foster competition in high-speed Internet services.
Communications Minister David Cunliffe said the government will auction spectrum in both the 2.3GHz and 2.5GHz bands in December for nationwide and regional broadband wireless services, including WiMAX.
"This expanded auction will put more spectrum into the market sooner, and fast-track the rollout of broadband wireless by more competing players," Cunliffe said.
The auction of 2.5GHz spectrum was originally scheduled for later next year, while the 2.3GHz was set for May 2007. The minister said the December schedule allows for a combined auction.
"The decision follows careful consideration of technical and commercial issues raised in submissions on the proposed 2.3GHz auction, including technology uncertainty," he said, adding, "The delay to the 2.3GHz auction is not expected to slow broadband wireless deployment."
The combined auction will make significantly more spectrum available for broadband wireless and other uses, Cunliffe said.
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30th May 2007
Federal Jury finds QUALCOMM infringes three Broadcom patents
QUALCOMM Inc has announced that a federal jury in Santa Ana, California has returned verdicts finding that certain of QUALCOMM's products infringe three patents owned by Broadcom Corporation. The jury found that QUALCOMM does not infringe one claim of one of the Broadcom patents. The three patents at issue in this case were acquired by Broadcom from third parties and then asserted by Broadcom against certain QUALCOMM products. The court set a hearing for June 18 to schedule post-trial motions and further proceedings, including whether any injunctive relief is appropriate.
Broadcom filed the lawsuit in May 2005, alleging that five of its patents had been infringed. During the course of the litigation, Broadcom dismissed one patent, and the court stayed the case with respect to a second patent. Broadcom had purchased all the patents at issue, and none of the patents Broadcom litigated at trial were inventions developed specifically in connection with cellular technology or standards.
The jury awarded Broadcom a total of US$19.6 million in damages and found that QUALCOMM's infringement was willful. A damages award may be increased up to three-fold for willful infringement. The trial judge will determine whether there should be any increase in the damages award based on the finding of willfulness.
"We continue to believe that none of the Broadcom patent claims are valid or were infringed by QUALCOMM, and we will challenge the jury's findings of infringement, validity and willfulness in post-trial motions and on appeal if necessary," said Lou Lupin, executive vice president and general counsel, QUALCOMM.
Broadcom said it plans to ask the court to issue a permanent injunction barring QUALCOMM from further infringement of the three patents.
"We are very pleased with the jury's verdict, and gratified that the jurors were able to absorb and evaluate very technical material and arrive at the conclusion that QUALCOMM once again is improperly utilising our patented technology covering cellular baseband solutions," said David Dull, Broadcom's Senior Vice President and General Counsel. "Broadcom was an early pioneer in a broad range of wired and wireless communications and multimedia technologies, which are at the heart of the convergence and communications trends that are touching consumers in their daily lives. Broadcom's patents are our company's lifeblood, representing substantial financial investment and the hard work and innovations of our engineers around the world. We are heartened that the legal system has provided redress for QUALCOMM's infringing behavior."
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30th May 2007
Avaya poised for private-equity take-over?
Rumours continue to circulate, suggesting that US-based equipment manufacturer Avaya Inc is about to be bought up by a private equity company or a rival North American vendor. The company, which was formerly a division of Lucent Technologies, produces office equipment and systems that migrate traditional voice and data systems to integrated IP-based platforms and has negligible debt and a healthy cash-flow, making it an ideal target for its peers and investment companies alike.
It was recently reported that Canadian vendor Nortel Networks Corp and software developer Microsoft Corp had approached Avaya with a view to purchasing part or all of the company's business. Subsequently, these talks appear to have come to nothing, partly because Avaya was and remains wary about licensing its lucrative next-generation products and patents to Microsoft for a fixed sum while Nortel reportedly walked away because the parties could not agree on the value of Avaya's assets.
The latest reports indicate that Avaya is deep in discussions with private equity company Silver Lake Partners over a proposed leveraged buy-out plan, although specific details have not been elaborated upon. It is also unclear whether Silver Lake would buy up all or just part of Avaya's business. However, it is clear that some developments are afoot, as Avaya has cancelled its May 31 analyst day meeting, a sure sign that the company is currently involved in some key strategic or managerial manoeuvring. This meeting has yet to be rescheduled, suggesting that Avaya expects some time will pass before it will be in a position to make an announcement.
With revenue of US$5,148 million and a net profit of US$220 million in the financial year ended September 30, 2006, Avaya was the sixth-largest telecommunications equipment manufacturer in the US in fiscal 2006. Its purchase, likely at a premium to its current US$6,200 million market capitalisation, would be a highly significant one, especially if the purchaser turns out to be a key rival such as Nortel, Siemens AG, Alcatel-Lucent, or NEC or a company, such as Cisco Systems Inc, with which it currently competes indirectly. Meanwhile, a recent conference call with investors saw CEO Louis D'Ambrosio admit that Avaya would be open to "inorganic" growth, where appropriate, suggesting that the company itself feels that the market is strong enough to support a major buy-out such as this. Avaya is also finding it more difficult to compete with the likes of Nortel as major orders are becoming increasingly scarce and more difficult for smaller players such as itself to land.
ITI currently profiles several major equipment vendors, such as Nortel Networks, Cisco Systems, and Alcatel-Lucent. We are also updating our country profile on the United States of America, which will include an overview of the country's manufacturing base. Please visit our website at www.itireports.com for further details.
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30th May 2007
NeckarCom selects Motorola for German WiMAX network
NeckarCom Telekommunikation has selected Motorola GmbH, a subsidiary of Motorola Inc, to plan, deploy and integrate a 3.5GHz WiMAX network in the Ulm region in Baden-Wurttemberg, Germany's third-largest state. Motorola's WiMAX solution will enable NeckarCom to deliver broadband services to homeowners and small businesses in areas currently underserved by fixed-line broadband.
The first stage of the network roll-out, beginning immediately, will offer subscribers broadband data services. Within the next weeks, access to VoIP services will be added. The contract follows a successful trial in selected communities in which NeckarCom was able to deploy the Motorola equipment and deliver broadband services to homes within three weeks. NeckarCom plans to expand the service across the entire region upon completion of the initial roll-out phase.
In addition to the WiMAX solution, such as WiMAX access points (the WAP 400 series) and customer premise equipment (CPEi 600 series), Motorola will provide planning and integration services.
NeckarCom is a subsidiary of EnBW Regional AG. EnBW Baden-Württemberg AG is the third-largest energy supply company in Germany and, specifically, market leader in Baden-Württemberg. NeckarCom is active in the telecommunications sector and primarily markets the fibre infrastructure of EnBW. In addition, NeckarCom as regional carrier offers business customers in Baden-Württemberg complete solutions in the form of telecommunications services, such as location networking, broadband internet access and VoIP.
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29th May 2007
France Telecom to examine offers to acquire Orange Netherlands
France Telecom SA has confirmed that it has received expressions of interest and offers from potential buyers seeking to acquire part or all of the share capital of its subsidiary, Orange Netherlands. France Telecom has decided at this point to begin a formal process to analyse these offers and expressions of interest and, in conformity with Dutch legislation, to begin a consultation procedure with the Works Councils of Orange Netherlands.
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29th May 2007
ANTEL selects Alcatel-Lucent to deploy first commercial 3G UMTS/HSPA network in Uruguay
Alcatel-Lucent has announced a contract with Administración Nacional de Telecomunicaciones (ANTEL), the leading telecommunications company in Uruguay, to supply and install a wireless network based on UMTS/HSPA technology to provide 3G services.
The mobile network project will enable ANCEL, the mobile phone division of ANTEL, to expand capacity while offering next-generation services, including advanced multimedia, mobile broadband and converged services such as video call and streaming, Mobile TV and high-speed mobile Internet access on 3G mobile handsets. ANCEL also will introduce high-speed Internet and mobile data services to business and residential subscribers through USB modems and data cards.
As part of the agreement, Alcatel-Lucent will provide an end-to-end turnkey UMTS/HSPA solution, including MPLS core, network deployment, and network and applications integration and services. Alcatel-Lucent has previously supplied ANTEL with TDM, ATM and MPLS networking solutions, as well as ADSL broadband access and SDH optical platforms.
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29th May 2007
CT Communications to merge with Windstream
Concord, North Carolina-based CT Communications Inc had announced a definitive agreement to merge with Windstream Corporation. In a vote by its board of directors, CT Communications has accepted an offer from Windstream to acquire all of the outstanding shares of CT Communications for US$31.50 per share in cash. The offer represents a 46% premium to the closing price of CT Communications' stock on May 25, 2007, and a 31% premium to the previous 30-day average trading price. Including the assumption of cash and debt, the transaction is valued at approximately US$585 million. The merger is subject to approvals from federal and state regulators, as well as CT Communications shareholders.
CT Communications is a growing provider of integrated telecommunications and related services to residential and business customers located primarily in North Carolina. The company offers a package of telecommunications services, including broadband high-speed Internet services, local and long-distance telephone services, and digital wireless voice and data services. Recently, the company began a commercial trial of a new video product that utilises a fibre-optic network, allowing significantly greater bandwidth delivery for the growing application and service needs of customers. The network deployment began in 2006 and now passes 11,000 homes in the Concord area.
Windstream Corporation provides voice, broadband and entertainment services to customers in 16 states. The company has approximately 3.2 million access lines and about US$3.2 billion in annual revenues. The transaction with CT Communications adds approximately 158,000 access lines and 29,000 broadband customers, nearly doubling Windstream's presence in North Carolina.
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29th May 2007
Primus Canada and Mipps select Alcatel-Lucent's IEEE 802.16e-2005 WiMAX solution
PRIMUS Telecommunications Canada Inc, the largest alternative communications carrier in Canada, and Mipps Inc, a Canadian wireless operator that acquired 3.5GHz licensed spectrum in most major cities across Canada, have selected Alcatel-Lucent's Evolium WiMAX solution to support market trials of IEEE 802.16e-2005 WiMAX broadband wireless access service.
Mipps will deploy the Alcatel-Lucent 9100 Evolium WiMAX end-to-end radio solution, including base stations, wireless access controller and operation and maintenance centre. Upon successful completion of the field trial, Primus Canada, through its strategic relationship with Mipps, will provide its subscribers with broadband access to high-speed Internet and data transmissions with a guaranteed level of quality.
Primus Canada has over one million customers. The company offers facilities-based voice, data, e-commerce, Web hosting, VoIP and broadband Internet services utilising ADSL2+ technology. Primus Canada's national network consists of nationwide switches with international connectivity through its parent company's global network, ATM and IP nodes, and colocation facilities at major cities across the country. Primus Canada is also one of Canada's largest mobile virtual network operators (MVNOs) offering PRIMUS Wireless service. Primus Canada is a wholly-owned subsidiary of US-based PRIMUS Telecommunications Group Inc.
Mipps is a Canadian wireless operator and has acquired 3.5GHz licensed spectrum in 40 licensed areas covering most major cities and towns across Canada potentially serving over 15 million in population. Mipps is one of the first companies in Canada to use fixed-wireless technologies to meet the communications and e-services needs of organisations of all sizes. In addition to supplying its customers with wireless broadband service at speeds ranging from T1 through to 480Mbit/s, Mipps provides other Internet-related services.
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