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  • Sprint Opposes Proposed AT&T Acquisition of T-Mobile USA

    Sprint has announced its opposition to AT&T’s proposed $39 billion takeover of T-Mobile USA. According to Sprint, the transaction, which requires the approval of the Department of Justice and the Federal Communications Commission, and will likely spark a host of hearings in the U.S. Congress, "would reverse nearly three decades of actions by the U.S. government and the courts that modernized and opened U.S. communications markets to competition."

    "The wireless industry has sparked unprecedented levels of competition, innovation, job creation and investment for the American economy, all of which could be undone by this transaction," as the company claims.

    AT&T and Verizon are already by far the largest wireless providers. If approved, the proposed acquisition would create a combined company that would be almost three times the size of Sprint in terms of wireless revenue and would entrench AT&T’s and Verizon’s duopoly control over the wireless market. According to Sprint, the wireless industry moving forward would be dominated overwhelmingly by two vertically integrated companies with unprecedented control over the U.S. wireless post-paid market, as well as the availability and price of key inputs, such as backhaul and access needed by other wireless companies to compete.

    “Sprint urges the United States government to block this anti-competitive acquisition,” said Vonya McCann, senior vice president, Government Affairs at Sprint.

    “This transaction will harm consumers and harm competition at a time when this country can least afford it. As the first national carrier to roll out 4G services and handsets and the carrier that brought simple unlimited pricing to the marketplace, Sprint stands ready to compete in a truly dynamic marketplace. So on behalf of our customers, our industry and our country, Sprint will fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly.”

  • Black Diamond Video Launches the Sapphire-QHD1 Conferencing Solution

    Black Diamond Video launched its comprehensive high definition conferencing solution, Sapphire-QHD1, a four-faceted package that offers bi-directional HD video and audio conferencing, unidirectional HD video and audio streaming, HD video recording, and HD image capture.

    Black Diamond Video’s HIPAA compliant Sapphire-QHD1 can be incorporated into BDV’s popular Integrated Digital Surgical Suite (IDSS) for medical applications or stand alone as a commercial, business, or military conferencing system.

    Sapphire-QHD1’s conferencing element provides bi-directional HD video and audio conferencing functionality. VoIP support allows phone calls into and out of the conference room, command center, or OR with no external, third party conferencing codec required. BDV’s Sapphire-QHD1 is compatible with all major conferencing systems that can support SIP and H.323 protocols, including Polycom, Tandberg, Codian, and Sony.

    Sapphire-QHD1 is also equipped with HD video streaming capability. A close relative to Sapphire-QHD1’s bidirectional HD conferencing feature, HD streaming facilitates unidirectional communication via H.264. According to the company, any HD video source can be combined with a superior quality audio feed and streamed to up to 80 remote clients. By utilizing BDV’s proprietary streaming algorithms, such a massive number of clients can be served without degradation of video or audio quality. When streaming, the remote user’s credentials and access rights are controlled by the local user’s Active Directory/LDAP servers and can be fine tuned to accommodate the customer’s requirements.

    While conferencing or streaming, the local user can route a video source to any destination or permit far-end camera control (FECC) or far-end video source selection (FEVSS). Once a conference or stream is initiated or accepted via the Sapphire-QHD1’s intuitive touch panel controls, the incoming video stream can be routed to any destination, including surgical and wall displays. By utilizing the embedded dual-tri-quad view windowing functionality, users can simultaneously see their own video sources side by side with far end video feeds.

    Describing the versatility of the system, Ed Priest, Founder and CEO of Black Diamond Video, commented, “Our Sapphire-QHD1 is an extensive solution that reaches beyond medical market applications. HD audio and video conferences can be initiated and accepted with the push of a few buttons from a business conference room. Military personnel can easily and securely conference with remote forces to discuss plans of action while panning and zooming surveillance cameras to view activity from thousands of miles away, all with the greatest detail possible thanks to our high definition video feed.”

    First deployment of the Sapphire-QHD1 conferencing solution will occur at Saint Francis Hospital and Medical Center in Connecticut, with updates of existing IDSS systems at other leading medical institutions to follow shortly thereafter.

  • Telanetix Reports Fourth Quarter and Full Year 2010 Financial Results

    Telanetix, a communications solutions provider offering voice services and solutions to the business market, reported financial results for its 2010 fourth quarter and full year ended December 31, 2010.

    The company’s fourth quarter core voice revenue increased 10 percent over the same quarter last year and full-year core revenue grew nearly 16 percent over 2009.

    Fourth Quarter 2010 Financial Highlights:

    • Core voice revenue increased 10 percent year-over-year to $6.0 million, compared to $5.4 million in the fourth quarter of 2009.
    • Total revenue was $6.7 million, a decrease of 6.9 percent compared to $7.2 million in the fourth quarter of 2009. The decline in total revenue was due to the expected decrease in legacy product revenues, which were $733,000, a 59 percent decrease compared to $1.8 million in the fourth quarter of 2009.
    • Adjusted EBITDA improved to $536,000, compared to $130,000 in the fourth quarter last year.
    • Net loss from continuing operations was $1.6 million, or $0.00 per share, compared to net income of $1.1 million, or $0.04 per share, in the fourth quarter last year.
    • Total cash and cash equivalents increased $58,000 to $2.3 million at December 31, 2010.

    Full Year 2010 Financial Highlights:

    • Core voice revenue increased 15.9 percent year-over-year to $23.7 million.
    • Total revenue increased $228,000 year-over-year to $28.5 million.
    • Adjusted EBITDA of $1.7 million, first full year positive EBITDA and a more than $2.1 million improvement compared to an adjusted EBITDA loss of $379,000 for 2009.
    • Net income from continuing operations was $10.3 million, or $0.06 per share, which included a $16.5 million gain on recapitalization and $800,000 credit from change in fair market value of derivative liabilities, compared to net loss in 2009 of $8.1 million, or a loss of $0.26 per share, which included a $4.1 million expense for interest and a $3.8 million credit for warrant and beneficial conversion feature liabilities.

    “In addition, we achieved our fifth consecutive quarter of positive adjusted EBITDA and first full year positive EBITDA. During the quarter, our legacy revenue flattened out from recent declines, and we expect it to stay flat or modestly improve in 2011," said Doug Johnson, Telanetix’s CEO.

    He added that during the year the company made progress building on its strategic partnerships and expanding its customer reach by adding new channel partners, including Mitel Networks and Vertical Communications, each of which offers Telanetix’s SIP trunking services to customers ranging from medium-sized businesses to Fortune 1000 enterprises. "We have seen strong initial interest in these services and expect this to be an important growth driver in 2011," Johnson said.

    ”2010 was a pivotal year for Telanetix and we are pleased with our progress and positive steps that have stabilized the company, including completing a comprehensive recapitalization of the Company. We believe we are well positioned now to build on this stable foundation and further expand our presence and share in the marketplace. We expect to achieve continued double digit growth in our core revenue for 2011,” he concluded.

  • Hosted Communications Services Present Excellent Growth Opportunities to European Service Providers

    Although the on-premise model with its control and security advantages will dominate the enterprise communications market in the immediate future, the revenue share of hosted services is poised to increase significantly, according to Frost & Sullivan. Hosted communications services present an ever more popular alternative for deploying IP telephony and unified communications applications.

    New analysis from Frost & Sullivan – European Hosted IP Telephony and Unified Communications Services Market – finds that the hosted IP telephony market in Europe earned revenues of €0.9 billion in 2010 and estimates this to reach €4.9 billion in 2016.

    "The hosted IP telephony and UC services market in Europe is witnessing rapid growth mainly due to the increasing awareness about hosted solutions and improved feature sets," notes Frost & Sullivan Industry Analyst Dorota Oviedo. "The economic slowdown and limited capital availability for investments urged many enterprises to consider alternative communications delivery methods."

    Once companies experience the actual functionality and service level offered, they become more comfortable with communications being delivered as a service. Services are becoming more mature, offering a complete PBX capability rather than the limited functionality of Centrex solutions previously witnessed in the market.

    "With the economy rebounding, companies will continue using hosted IP telephony services," adds Oviedo. "At the same time, they are also expected to complement them with new communications and collaboration applications."

    The European hosted IP telephony and UC services market is highly fragmented. All the major enterprise communications providers and vendors show interest in tapping this opportunity to leverage the strong customer demand for operational expenditure (OPEX)-based solutions.

    However, building a distribution channel is one of the key challenges faced by this growing industry.

    "Channel partners need to be educated on the benefits of predictable revenues based on recurring monthly revenues and commissions, which are less sensitive to the general economic fluctuations and will increase as hosted services gain traction," concludes Oviedo.

  • Polycom Announces Acquisition of Accordent Technologies

    Unified Communications provider Polycom has announced the acquisition of Accordent Technologies, a provider of video content management and delivery solutions, for approximately $50 million in cash. Polycom expects this acquisition to be neutral to earnings in 2011 and slightly accretive to earnings in 2012.

    Polycom will integrate its open standards UC Intelligent Core and UC endpoints with Accordent’s open standards video content management solution. The Accordent solution provides capture solutions for all major video use cases, whether delivering highly scalable live webcasts from the studio, providing automated rich media webcasting from the meeting or classroom, adding a streaming extension to videoconferences or enabling user-generated content from the desktop.

    According to data from market research firm Wainhouse Research, this acquisition immediately expands Polycom’s total available market by $500 million and, for this video management segment, this market is projected to generate a compounded annual growth rate of 32% through 2014 to $1.2 billion. As a strategic partner with Microsoft, Accordent strengthens and further differentiates Polycom’s deep native integration with Microsoft Lync and Sharepoint.

    "Polycom is committed to delivering an innovative, flexible and world-class video communications solution to customers over the entire content lifecycle – from real-time to capture, to management, to delivery," said Sudhakar Ramakrishna, Polycom Chief Development Officer.

    "We believe Accordent has the most elegant video content management solution on the market and by leveraging customer, channel, partner and product synergies with Polycom, this transaction positions Polycom at the forefront of end-to-end video and content management. We welcome Accordent’s customers and employees to the Polycom team," he added.

    "From our first meeting with Polycom, we shared a common vision about the future of unified collaboration and the paradigm shift in the way people communicate and work," said Mike Newman, previous Accordent Chief Executive Officer. "By integrating Accordent’s video content management solutions with Polycom’s unparalleled end-to-end video solution, we believe we can make this vision a reality as we harness the natural synergies between our two companies."

    Accordent grew to $9 million in revenues in 2010 and has over 1,200 customers in the enterprise and public sector, and through select service providers. The staff of 50 employees will remain in Southern California and will report into Polycom’s UC research and development organization. Accordent’s software-centric solution will become an integral element of the Polycom UC Intelligent Core and will be reported with Polycom’s Network Infrastructure revenues.

  • Bertrand Serlet to Leave Apple

    Apple announced that Bertrand Serlet, Apple’s senior vice president of Mac Software Engineering, will be leaving the company. Craig Federighi, Apple’s vice president of Mac Software Engineering, will assume Serlet’s responsibilities and report to Steve Jobs, Apple’s CEO.

    Federighi is responsible for the development of Mac OS X and has been managing the Mac OS software engineering group for the past two years.

    “I’ve worked with Steve for 22 years and have had an incredible time developing products at both NeXT and Apple, but at this point, I want to focus less on products and more on science,” said Bertrand Serlet. “Craig has done a great job managing the Mac OS team for the past two years, Lion is a great release and the transition should be seamless.”

    Federighi worked at NeXT, followed by Apple, and then spent a decade at Ariba where he held several roles including vice president of Internet Services and chief technology officer. He returned to Apple in 2009 to lead Mac OS X engineering. Federighi holds a Master of Science degree in Computer Science and a Bachelor of Science in Electrical Engineering and Computer Science from the University of California, Berkeley.

    Serlet joined Apple in 1997, and has been involved in the definition, development and creation of Mac OS X, the world’s most advanced operating system. Before joining Apple, Serlet spent four years at Xerox PARC, then joined NeXT in 1989. Serlet holds a doctorate in Computer Science from the University of Orsay, France.

  • Google Nexus S 4G Coming to Sprint

    Sprint has announced the upcoming availability of Nexus S 4G from Google. Coming to Sprint this spring, this Android 2.3-powered device features 1 GHz Hummingbird processor, Super AMOLED 4” display, Google Voice integration, NFC support and Mobile Hotspot capability.

    Manufactured by Samsung, Nexus S 4G comes packed with a "pure Google experience" using Android 2.3, Gingerbread, the fastest version of Android available for smartphones. It is powered by a 1GHz Samsung application processor that produces rich 3D-like graphics, faster upload and download times and supports HD-like multimedia content along with a dedicated GPU. 

    It is designed with Samsung’s Super AMOLED touchscreen technology. The 4-inch Contour Display features a curved design "for a more comfortable look and feel in the user’s hand or along the side of the face." It also offers a screen that is bright with higher color contrast, meaning colors are vibrant and text is crisp at any size and produces less glare than on other smartphone displays when outdoors.

    Nexus S 4G also features a 5 megapixel rear-facing camera and camcorder and front-facing VGA camera.

    Additional key features include:

    • 3G/4G Mobile Hotspot capability, supporting up to six Wi-Fi enabled devices simultaneously
    • Android Market for access to more than 150,000 applications
    • Google mobile services such as Google Search, Gmail, Google Maps with Navigation, syncing with Google Calendar, Voice Actions and YouTube
    • Corporate email (Microsoft Exchange ActiveSync®), personal (POP & IMAP) email and instant messaging
    • Near Field Communication (NFC) technology, which allows the device to read information from everyday objects, like stickers and posters embedded with NFC chips
    • 16GB Internal Memory (ROM)/512MB (RAM)
    • Wi-Fi® – 802.11 b/g/n
    • Bluetooth® 2.1 + EDR
    • Integrated GPS
    • 1500 mAh Lithium-ion battery

    Sprint Nexus S 4G customers will be among the first to receive Android software upgrades and new Google mobile apps. In many cases, the device will get the updates and new apps as soon as they are available.

    "Nexus S 4G shows the strong commitment Sprint has to Android, and when combined with our 4G network capabilities, it gives customers the option of a pure Google experience," said Fared Adib, vice president – Product Development, Sprint. "As the first 4G smartphone with Android 2.3, Nexus S 4G delivers on the promise of the advanced data capabilities of 4G to deliver an incredible Web browsing experience, offers quick and easy access to future Android updates and access to the services built into Google Voice."

    Andy Rubin, vice president of Engineering at Google, stated: "We’re excited to partner with Sprint on Nexus S 4G, which brings innovative hardware by Samsung and innovations on the Android platform, to create a powerful smartphone experience,"

    Nexus S 4G will be available exclusively from Sprint this spring for $199.99 with a new two-year service agreement or eligible upgrade.

  • AT&T to Acquire T-Mobile USA from Deutsche Telekom

    AT&T and Deutsche Telekom announced that they have entered into a definitive agreement under which AT&T will acquire T-Mobile USA  in a cash-and-stock transaction currently valued at approximately $39 billion. The agreement has been approved by the Boards of Directors of both companies.

    According to the companies, the acquisition provides "an optimal combination of network assets to add capacity sooner than any alternative, and it provides an opportunity to improve network quality in the near term for both companies’ customers." The companies also said that the acquisition provides "a fast, efficient and certain" solution to the impending exhaustion of wireless spectrum in some markets, which limits both companies’ ability to "meet the ongoing explosive demand for mobile broadband."

    With this transaction, AT&T commits to a significant expansion of robust 4G LTE deployment to 95 percent of the U.S. population to reach an additional 46.5 million Americans beyond current plans – including rural communities and small towns. In terms of area covered, the transaction enables 4G LTE deployment to an additional 1.2 million square miles, equivalent to 4.5 times the size of the state of Texas. T-Mobile USA does not have a clear path to delivering LTE.

    According to AT&T and T-Mobile, their customers will see service improvements – including improved voice quality – as a result of additional spectrum, increased cell tower density and broader network infrastructure.

    The acquisition will increase AT&T’s infrastructure investment in the U.S. by more than $8 billion over seven years.

    "This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future," said Randall Stephenson, AT&T Chairman and CEO. "It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more. During the past few years, America’s high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth."

    Stephenson continued, "This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations. We are confident in our ability to execute a seamless integration, and with additional spectrum and network capabilities, we can better meet our customers’ current demands, build for the future and help achieve the President’s goals for a high-speed, wirelessly connected America."

    Deutsche Telekom Chairman and CEO René Obermann said, "After evaluating strategic options for T-Mobile USA, I am confident that AT&T is the best partner for our customers, shareholders and the mobile broadband ecosystem. Our common network technology makes this a logical combination and provides an efficient path to gaining the spectrum and network assets needed to provide T-Mobile customers with 4G LTE and the best devices. Also, the transaction returns significant value to Deutsche Telekom shareholders and allows us to retain exposure to the U.S. market."

    As part of the transaction, Deutsche Telekom will receive an equity stake in AT&T that, based on the terms of the agreement, would give Deutsche Telekom an ownership interest in AT&T of approximately 8 percent. A Deutsche Telekom representative will join the AT&T Board of Directors.

    The combined company will continue to have a strong employee and operations base in the Seattle area.

    The $39 billion purchase price will include a cash payment of $25 billion with the balance to be paid using AT&T common stock, subject to adjustment. AT&T has the right to increase the cash portion of the purchase price by up to $4.2 billion with a corresponding reduction in the stock component, so long as Deutsche Telekom receives at least a 5 percent equity ownership interest in AT&T.

  • Berg Insight: Shipments of Smartphones Grew 74 Percent in 2010

    According to a new research report by Berg Insight, global shipments of smartphones increased 74 percent in 2010 to 295 million units. Growing at a compound annual growth rate (CAGR) of 32.4 percent, shipments are forecasted to reach 1,200 million units in 2015.

    The global user base of smartphones increased at the same time by 38 percent year-on-year to an estimated 470 million active users in 2010. In the next five years, the global user base of smartphones is forecasted to grow at a compound annual growth rate (CAGR) of 42.9 percent to reach 2.8 billion in 2015.

    According to the report’s authors, smartphones are receiving more attention from handset manufacturers, network operators and application developers. Most importantly, an increasing number of users are now discovering how smartphones can act as personal computing devices enabling access to the mobile web and applications, besides voice and text services. Although high-end devices tend to get most attention, the primary growth will come from medium- and low-end smartphones.

    “Chipset developers and handset vendors are working on technologies that will ensure a good user experience also for low cost smartphones”, said André Malm, Senior Analyst, Berg Insight. “The challenge is to develop a handset with enough memory, graphics performance and processing power to run the operating system with multiple applications while ensuring a responsive system with fluid user interface and still keep costs down”.

    He added that smartphones in general will also benefit from advancements in chipset design. In the next five years, further performance increases will come from dual- or quad-core application and graphics processors. These new processors will enable smartphones to rival the performance of dedicated gaming consoles and notebook computers.

    At the same time, new user interfaces will be developed that make better use of sensors such as accelerometers and gyroscopes as well as cameras to detect movement or gestures without the need to touch the display.

  • VoIP-PAL Working on New iPad 2 App

    VoIP-PAL announced the development of integrating the video conferencing feature on forthcoming new PointsPhone Mobile App for the iPhone 4G and Apple’s new iPad 2. The App and the new Video Calling feature will soon be available for free downloading at the Apple App Store.

    According to VoIP-PAL, its goal is to provide "a quality, reliable, cost-effective and safe solution" for the casual and business international traveler who must rely on their smartphones to communicate.

    "Apple has once again proven to be the leader in innovation," stated Dennis Chang, President of VoIP-PAL. 

    "When it comes to providing what the consumer seems to want. A front facing camera on its iPhone 4G has made it practical for video calling and conferencing. Apple’s own FaceTime App is available from the Apple App Store, but we are developing a new version of our PointsPhone Mobile iPhone App that will also incorporate video calling. This new iPhone App will also be compatible and allow video chatting on Apple’s latest iPad 2. The new iPad 2 is a modest but significant upgrade and it’s important for our PointsPhone iPhone App to work on Apple’s latest product," he added.

    According to him,  video valling capabilities for smartphones is an important step in bringing the world closer together. Face-to-Face communication will not only improve family and friends’ connectivity, but it will help strengthen business relationships.

    "The first step is to complete the work to upgrade our iPhone App," said Mukesh Mohanbhai, VoIP-PAL’s Chief Technical Officer. "A beta version has been completed and tested. The new version will be fully capable of supporting our new Video Calling feature. Some of the new features of the Video Calling will be highly competitive to some of the others offered, such as transports to various popular Instant Messaging (IM) protocols such as MSN, Google Talk and Yahoo. Again, we will not release a product until I am sure it is truly a quality product and that it is safe and reliable. At VoIP-PAL we have adopted the doctrine of ‘Right the First Time’ release."