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News summary for 4/27/07

April 27, 2007 By ECN Staff

Concurrent unleashes next-gen on-demand suite
By Traci Patterson, CED

Concurrent has launched the MediaHawk On-Demand Back Office Software Suite (MHBOSS), which enables apps such as time-shifted TV and nDVR.

The suite, built on Oracle’s 10g database and Real Application Clusters (RAC), is scalable and can extend to support any number of emerging apps, the company said. And as on-demand utilization increases, the suite’s capacity can as well with the addition of computing and storage modules.

MHBOSS’ open architecture allows interoperability with multiple VOD server vendors and numerous software apps through interfaces such as XML and SOAP, and the suite is designed for integration with OCAP apps, the company said. The software also provides Web services for any apps that require information from the back office.

Concurrent’s MediaHawk 4500 and 4000 lines of video servers are compatible with the new on-demand offering.

Concurrent will demonstrate the MHBOSS at SCTE Cable-Tec Expo in Orlando, Fla., June 19-22.

EarthLink loses subs, consumer services revenue
By Traci Patterson, CED

EarthLink Inc. posted consolidated revenues of $324 million for Q1 2007, ended

March 31, but this was offset by the ISP’s loss of subs and consumer services revenue. Helio’s subscriber base increase, meanwhile, is right on track.

EarthLink’s overall net subs declined by 42,000 in the first quarter, due mostly to a decline in consumer access subs. This was related to a decline in premium narrowband subs and partially offset by growth in value, broadband and voice subs, the company said.

In the first quarter, Helio—the virtual mobile network operator jointly owned by EarthLink and SK Telecom—continued to increase its subs and is on track to surpass 100,000 members during Q2 2007, as previously projected, the company said.

Helio generated $30.4 million in revenue in Q1 2007, with a net loss of $63.1 million. Helio had not yet launched service in Q1 2006, but revenue for all of 2006 was $46.6 million.

For the quarter, EarthLink’s consolidated revenues increased to $324.4 million, up 4.7 percent year-on-year.

The increase was driven primarily by a growth in business services and partially offset by a decline in consumer services. EarthLink’s net loss for the quarter was $30 million, or $.24 per share.

Business services revenue increased to $47.8 million (from $18.2 million) year-on-year, mostly due to the acquisition of New Edge Networks in April 2006.

Consumer services revenue decreased 5.1 percent to $276.7 million from Q1 2006.

Under the company’s new segment format, the reportable segments consist of consumer services and business services. And, this quarter, EarthLink has modified the way it counts subs related to the DSL and Home Phone service. Previously, a customer that was subscribing to both of these services was classified as one sub, but now that customer will be counted as a DSL sub and a voice sub.

Based on current results and expectations, EarthLink said it expects year-ending consolidated subs to decline by 200,000-250,000, and the company expects to generate approximately $1.3 billion in consolidated revenue.
 
The company expects Helio to end the year with 200,000-250,000 subs and post revenues between $140 million-$170 million.

CommScope announces record first quarter 2007 results
By Brian Santo, CED

The revival of the communications market has been very, very good to CommScope. The company reported record first quarter sales of $435 million, up 24 percent from last year; income of $45.9 million, more than tripling its $12.7 million profit in Q1 ’06; and orders of $460 million, up 15 percent from a year ago.

The company reported sales for the first quarter were primarily driven by increased customer demand in all segments and price increases implemented during 2006 in response to higher raw material costs. The company experienced particularly strong sales growth in its Carrier segment.

The Broadband segment was driven by cable operators implementing the triple play, and boosted by price increases implemented in the first half of 2006, and higher sales volume, including sales of products from Signal Vision, which Commscope acquired a year ago.

India plans free 2 Mbps broadband access for all
By Brian Santo, CED

Encouraged by the examples of U.S. municipalities offering free Wi-Fi access, the government of India is proposing a plan to offer all citizens of India free, high-speed broadband connectivity by 2009, through the state-owned telecom service providers BSNL and MTNL.

The idea is to boost economic activity in general. The government of India plans to roll out free broadband connectivity at a speed of 2 Mbps across the country. Funding would come from the country’s Universal Service Obligation Fund (USOF), into which all Indian telecom operators contribute 5 percent of their yearly revenue.

The government plans to install an extensive fiber network across the country, and ask all Internet service providers to connect to the National Internet Exchange of India (NIXI).

Broadband providers in India have some of the highest fees in the world, according to the Organization for Economic Co-operation and Development.

Goldman Sachs pumps another $30M in rural wireless startup
By Brian Santo, CED

Arcadian Networks just received another $30 million from lead investor Goldman Sachs. With the latest installment of cash, the company has raised a total of $90 million in financing over the past 12 months.

The company said the investment completes its first funding round.

Arcadian Networks is a year-old startup that aims to provide high-speed wireless communications to deliver IP-based, wireless broadband field automation services, including substation, distribution, and mobile workforce automation, to the private sector in rural America.

The first deployment is a 700 MHz network in Minnesota with Great River Energy, a non-profit generation and transmission cooperative providing wholesale electric service to 28 distribution co-ops that serve more than 600,000 members, or about 1.7 million people.

Broadband Briefs for 4/27/07

* Pixelmetrix hires veep for IPTV suite expansion
Pixelmetrix, a provider of preventive monitoring services for digital TV and IPTV networks, has appointed Stephen Scanlon as VP of sales for North America.
 
Pixelmetrix is expanding its suite of apps and solutions for the IPTV market in order to boost sales growth in that region. Scanlon was previously the regional territory manager for Spirent Communications, and prior to that he worked for Agilent Technologies and Hewlett Packard.

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