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News summary for 6/04/07

Mon, 06/04/2007 - 8:20am

Flextronics picks up Solectron for $3.6B
By Brian Santo, CED

Flextronics International will buy Solectron for about $3.6 billion. The deal represents a major consolidation in the contract manufacturing market.

Of the two companies, Solectron has more experience with the cable industry. For example, the company used to make several Terayon broadband products, and is also relied upon heavily by Arris for many products in its broadband portfolio.

Other customers include Cisco Systems, Ericsson, Hewlett-Packard, IBM, Lucent Technologies, Motorola, NEC, Nortel Networks and Sun Microsystems.

For these and other companies, Solectron makes core and edge routers, core and edge Ethernet switches, DSLAMs, NICs and optical interconnect, as well as cellular infrastructure equipment, voice-over-Internet Protocol (VoIP) equipment, and IP PBX gear.
 
Citigroup Global Markets is providing Flextronics with the bulk of the financing for the purchase: a $2.5 billion, seven-year senior unsecured term loan. Solectron will be operated as a subsidiary.

Redback edge router bridges mobile, fixed services
By Brian Santo, CED

Ericsson’s Redback Networks operation introduced a new multi-service edge router the company is positioning as a million-subscriber rack for HDTV, HD VOD and broadband mobility services.

The company is claiming three innovations for its SmartEdge 1200: It will double carrier capacity for new video upgrades, extend triple-play services to broadband mobile networks and integrate up to six network applications into a single router. The new network applications include deep-packet inspection for peer-to-peer traffic management, advanced session border capabilities and network security for carriers and their customers.

Redback claims 15 of the top 20 telephone carriers worldwide as customers for earlier iterations of the SmartEdge router platform to deliver a mix of broadband, phone and TV services to more than 50 million subscribers. Those customers include AT&T, British Telecom, China Telecom, China Netcom, ChungHwa Telecom, eAccess (Japan), France Telecom, Korea Telecom, Telefonica, and Turk Telecom, among the more than 200 carriers deploying SmartEdge worldwide.

The first customer for the new SmartEdge 1200 is ChungHwa Telecom (CHT) of Taiwan.

Nortel bringing municipal wireless to N.C., Colo.
By Traci Patterson, CED

Nortel Networks has deployed a municipal wireless network in Greenville, N.C., with WindChannel Communications Inc., and the company has been selected by Front Range Internet Inc. for a similar network deployment in northern Colorado.

The Greenville network offers free broadband wireless Internet access in the downtown area, which includes the East Carolina University campus.

In Colorado, about a dozen communities along the I-25 corridor north of Denver - including Fort Collins, Windsor and Loveland - will receive the municipal wireless service.

The announcements were made at MuniWireless07: New England, where Nortel is demonstrating the benefits of such systems - police and fire department access to information, automated gas and water meter reading, and online access to libraries and city services.

Nortel also recently announced an agreement with 4G Metro, a Granbury, Texas-based wireless ISP, to help provide high-speed wireless Internet access for the Trinity Railway Express between Dallas/Fort Worth and DFW International Airport.

Nortel's Municipal Wireless Solution combines wireless mesh, wireless LAN and WiMAX technologies with business model consulting, radio frequency, network design, installation, configuration, acceptance testing and project management, the company said.

Broadband Briefs for 6/04/07

* ZCorum offers wholesale VoIP service
ZCorum, a wholesaler of broadband and communications solutions, is launching its VoiSelect Digital Voice service, for broadband operators looking to enter the VoIP market.

VoiSelect Digital Voice is a SIP-based service that has all the Class-5 features of traditional voice service, including unlimited local and long distance calling in the U.S. and Canada, voicemail, caller ID, three-way calling, call waiting, call forwarding, and call return. 

VoiSelect Digital Voice service is also supported by ZCorum’s U.S.-based Customer Care team, which is available to assist end users 24 hours a day.

* Imagine hires VP of engineering
Imagine Communications has named Mark Davis as VP of engineering for network systems and support. Imagine’s President and CEO Jamie Howard said Davis’ 24 years of industry experience will aid in the company’s digital video platform expansion.

Davis recently served as VP of engineering for BigBand Networks’ Network Solutions Group.

He has also held VP of engineering roles with AT&T Broadband (now Comcast), Urban Media Inc. and Cox Communications.

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