A compilation of recent announcements and events occurring between January and March 2005. Coverage includes factors affecting the global landscape and technological advances that further accelerate data transmission by laser, fiber optical transceiver, or optical packet system. Also includes a closer look at operator movements in Greater China, India, Japan, Korea, and Russia.

Global Factors

Federal Communications Commission

The FCC adopted an order opening access to new spectrum for wireless broadband in the 3650-3700MHz band. Both licensed and unlicensed users will be allowed to operate in the band on a fixed and mobile basis. The move is expected to further encourage wireless broadband services to expand rapidly, particularly in rural areas.

Under the regulations, operators will be required to register their base stations with the FCC so as to avoid interference and protect incumbent FSS (Fixed Satellite Service) and federal government radiolocation facilities. Licenses will be granted for ten-year periods and can be assigned or transferred.

IPCC

The IPCC (International Packet Communications Consortium) has set up a new working group to define reference architectures that better address feature transparency and seamless mobility across wire-line networks such as DSL (Digital Subscriber Line), fiber, and cable, as well as wireless networks including 3G, WiFi, and WiMAX (Worldwide Interoperability for Microwave Access). Members that drove the initiative include Alcatel, Brooktrout, Cisco, Convedia, eLEC, Sonus, Tekelec, Time Warner Telecom, and UTStarcom.

The group will be working to improve mobile handover between 2G/3G and WiFi/WiMAX and IMS (IP Multimedia Subsystem) within 3GPP. It will also work with the appropriate standards bodies such as ANSI, ETSI, IETF, 3GPP, and the DSL and WiMAX Forums to expedite the proposed reference architecture.

Madison River Communications

The US telecommunications and Internet service provider has reached a deal with the FCC to settle charges of blocking VoIP (Voice over IP) traffic from Vonage customers. The settlement comes after the FCC began investigating claims by Vonage that the telco was blocking ports that Vonage's VoIP service uses, presumably to stop Vonage customers from moving away from Madison River voice services. While fined US$15,000, Madison River Communications agreed to stop blocking the ports used in VoIP but denied any wrongdoing.

RF Micro

RF Micro Devices, which provides RFICs (Radio Frequency Integrated Circuits) for wireless communications applications, said in early March that it will end its WLAN (Wireless Local Area Network) chipset development and is cutting its work workforce. The company will continue to support its WLAN component business, which includes its transceivers for gaming and other applications, as well as its WLAN power amplifiers and front-end modules for all WLAN markets.

Milestone Technologies

Alcatel, Intel

Alcatel and Intel announced at 3GSM Congress that they have stepped up their collaboration on WiMAX, entering into a new joint development deal. Under the agreement, both companies will dedicate more efforts in accelerating delivery of end-to-end residential, nomadic, and mobile WiMAX solutions based on the IEEE 802.16e standard. Field trials are slated to commence in the first half of 2006 and commercial network deployments will start in mid-2006 using devices based on Intel's next-generation chipsets. These WiMAX networks will also support the first Intel Centrino notebooks.

Intel

Intel has successfully put a silicon-based laser on a chip, a technological breakthrough aimed to accelerate interconnection between data networks and the chips that process the information. With readily available filters, the laser light can also be tuned across a broad range of frequencies. Intel said devices using this technology will likely come available by 2010. 

Mitsubishi

In late February Mitsubishi Electric unveiled the industry's first DWDM (Dense Wavelength Division Multiplexing) fiber optical transceiver that can transmits data at 10Gbps over a distance of 80 kilometers. Samples of the new transceiver, called XFP-E (EXF-Extended), will begin shipping in April 2005 to select customers.

NEC

NEC announced in early March that it has developed a technology that can transmit 8.5 gigabytes of data in about six seconds. The Japanese company also said cable adopting this technology can achieve a throughput of 12 gigabits per second, about 25 times faster than current USB 2.0 cable. Targeting at high-performance computers, NEC expects to ship samples of cable using this technology to makers in the first half of 2006.

NTT

The Japanese communications company has developed a technology, called RedTacton, which uses weak electric fields on the surface of the human body as a transmission path for an up to 10 Mbit/s network. Using an electro-optic sensor, NTT has already developed a small prototype RedTacton transceiver that is similar to a PCMCIA card in size. Trials are slated to commence with third parties in April 2005.

Yokogawa Electric

The Japanese company successfully demonstrated transmission of video data using a prototype 40 Gbit/s optical packet networking system consisting of a 40 Gbit/s optical switch with optical buffering functionality and an optical media manager device. Through the high-speed technology, as many as ten PC users will be able to simultaneously access a server and download two-hour DVD video data in approximately ten seconds. Yokogawa Electric plans to commercialize the product in 2006, aiming to generate sales of around US$1 billion from optical communication devices in 2010.

Greater China

China Netcom

In January 2005 China Netcom agreed to buy a 20% stake -- valued at just over US$1 billion -- in Hong Kong's PCCW, marking one of the largest investments by a Chinese company in Hong Kong. Aiming to have a head start over other competitors, PCCW will earmark up to HK$5 billion (US$641 million; US$1=HK$7.8) for larger presence in the Chinese market. Furthermore, the two companies are planning to form a joint venture to provide IPTV (Internet Protocol Television) services, initially in major cities in Northern China where China Netcom operates. PCCW will be responsible for production of TV programs, security and billing systems, and set-top box investment.

China Telecom

The fixed-line operator is gearing up to roll out a broadband platform by partnering with Shanghai Cultural and Broadcasting Media Group, one of three companies that have secured IPTV licenses in China. Through this alliance, China Telecom will develop services across 21 provinces where it operates, taking on China's established cable TV operators. In addition, China Telecom has forged cooperation with set-top box makers, such as Sichuan Changhong Electric, to manufacture decoders and Internet-compliant TV sets.

India

Tata Teleservices

Due to heavy traffic and complex layout under the ground, this Indian telecommunications company is turning to lasers as a solution to the sometimes expansive distance between customers' offices and its own core network. The Lightpointe laser bridges operate over distances of up to four kilometers and serves as a conduit for voice and data transmission. In 12 months, the technology has helped Tata deploy networks in over 700 locations.

Sify

Sify, the Indian Internet and networks company has officially deployed Ipv6 (Internet Protocol Version 6) for its network. The IPv6 protocol, an advance on the current version 4, will enable users to allocate unique IP addresses as well as greater functionality and security. Sify's deployment of IPv6 ensures current IPv4 infrastructure can be shared for WAN routers and LAN (Local Area Network) infrastructure.  

Japan

K-Opticom

K-Opticom, Kansai Electric Power's Internet service subsidiary, announced that it will offer on a trial basis a fiber-optic Internet connection service in April 2005. By enhancing capabilities of a device that transfers fiber-optic signals into electronic signals at home, K-Opticom is able to achieve a transmission speed of one gigabit per second, the fastest so far in the Japanese market. The company is hoping to start a commercial service this summer.

OITDA

The OITDA (Optoelectronic Industry and Technology Development Association) estimated that the industry's shipment value will grow 13.8% from fiscal 2003 to reach 8.4 trillion Yen (US$79.7 billion; US$1=105.5 Yen) in fiscal 2004, which starts from April 2004 and ends in March 2005. The association also said the shipment value in fiscal 2005 is forecasted to break the nine trillion Yen (US$85.3 billion) level, registering 10.4% growth. Optical equipment and devices are expected to attain a growth rate of 7.9% while optical components will likely increase 22.5%. In terms of shipment share, optical equipment and devices are anticipated to reach 57% and optical components 43%.

Yozan

Yozan said in February that it will collaborate with two other firms in providing a wireless IP (Internet Protocol) telephony service that adopts WiMAX technology. Pending approval for spectrum use from the Communications Ministry, Yozan will conduct trials in Tokyo in June 2005 and start to provide data and voice service in December at a monthly rate of 3,000 Yen (US$28.4). While 600 of the firm's base stations in central urban areas will be installed with wireless WAN (Wide Area Network) equipment, terminals will be developed and supplied by Airspan Communications of the UK and Japan's Bell Net.

Korea

In late January 2005, Korea's Ministry of Information and Communications selected KT, SK Telecom, and Hanaro Telecom as three providers of Wibro (Wireless Broadband) services, which will allow broadband Internet access through mobile devices such as mobile phones and PDAs (Personal Digital Assistants). The three companies are each expected to invest in 1.3 trillion Won (US$1.3 billion; US$1=1008.3) to deploy a nationwide network and roll out the services in 2006. 

By 2012 the Wibro subscriber base is forecasted to reach 9.5 million, according to the ministry.

Russia

The Russian government has implemented a licensing scheme to further regulate Internet telephony service providers. A list of services was given that the government said would require a licensing process. Many believe that the new regime complicates licensing for IP operators and is part of the government's efforts to protect state-own operators.