Tag Archives: US

ALU Banned: Alcatel-Lucent Admitted also Paying Bribes for Contracts in Malaysia

Telekom Malaysia and mobile operator Axiata have barred Alcatel-Lucent from bidding for new tenders for a year after it admitted paying bribes for contracts.

Malaysian authorities in December began to probe accusations by US officials that Paris-based Alcatel-Lucent gave kickbacks to government officials in Latin America and Asia — including Malaysia — between December 2001 and June 2006.

The investigation came days after Alcatel-Lucent agreed to pay $137 million in fines and penalties to settle the charges as part of an agreement with US authorities. Transparency International Malaysia welcomed the the decisions but described the 12-month punishment as “mild” by international standards.

Alcatel-Lucent agreed in December to pay the huge fine to settle the charges following a deal with the US Justice Department and Securities and Exchange Commission (SEC). It had told the two US authorities that it made improper payments to obtain contracts with Celcom, a unit of Axiata. Axiata was previously known as TM International, a unit of Telekom Malaysia.

The Justice Department said Alcatel had violated the Foreign Corrupt Practices Act prior to its 2006 merger with US-based Lucent Technologies.

Service Providers Top the List as Cloud-Computing Providers

The results of a new research study, conducted by and issued today by Cisco Internet Business Solutions Group (IBSG), investigates the “public cloud” and the desire of enterprises to use external, on-demand infrastructure and applications. The study reveals that service providers have an opportunity to differentiate themselves and add new revenue-generating services by providing public cloud-computing services.

Cisco IBSG, the company’s global consultancy, recently conducted in-depth, one-on-one interviews with more than 80 enterprise information technology (IT) decision makers from 43 enterprises and public-sector organizations in the United States, the European Union, and India. Additionally, Cisco IBSG interviewed 20 subject-matter experts.

Based on feedback from the survey, Cisco IBSG estimates that nearly 12 percent of enterprise workloads will run in the public cloud by the end of 2013. Furthermore, the study found that desktop applications, email, collaboration, and enterprise resources planning are most likely to shift to the cloud. This, in turn, will yield a market for public, cloud-computing services of approximately US$44 billion.

The study identified a set of target applications for cloud that spans various verticals. Targets for infrastructure-as-a-service (IaaS) include application development and testing, disaster recovery, simulations, data warehousing, and analysis. Targets for software-as-a-service (SaaS) are customer-relationship management (CRM), email, unified communications, web applications and desktop environments.

Cloud-migration decisions are being made at the application level. Most decision makers envision a staged migration to cloud-computing services, beginning with noncritical applications. Enterprise executives believe that no applications should be automatically excluded from migration to cloud.

Enterprises across many sectors

Ericsson Acquirers Nortel’s Multi Service Switch Business

Nortel Networks Corporation announced that it, its principal operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited (in administration), have concluded a successful auction of substantially all of the assets of Nortel’s Multi Service Switch businesses globally. Telefonaktiebolaget LM Ericsson (“Ericsson”) has emerged as the winning bidder with a purchase price of US$65 million.

Under the terms of the agreements, Ericsson’s purchase includes substantially all assets of the MSS business globally including the associated Data Packet Network (DPN) and Services Edge Router (Shasta) product groups. These agreements also include substantially all customer contracts and certain intellectual property related to the MSS business.

The sale is subject to relevant court and regulatory approvals, including Canadian and U.S. court approvals. Nortel will work diligently with Ericsson to close the sale expeditiously, subject to the timing of regulatory required approvals.

Substantially all MSS employees will have the opportunity to continue their employment with Ericsson, including those in certain EMEA jurisdictions who will transfer to Ericsson by operation of law. The sale is also subject to certain regulatory approvals, information and consultation with employee representatives and/or employees in certain EMEA jurisdictions, other customary closing conditions and certain post-closing purchase price adjustments.

Commenting on the announcement, John Luszczek, General Manager of Nortel’s MSS business said: “Today

PAETEC Q2 2010 financial and operating results

PAETEC Holding Corp. (NASDAQ GS: PAET) today announced second quarter 2010 financial and operating results. “Our second quarter is marked by continued expansion, from our sequential and year-over-year revenue growth, to the opening of new offices and rate centers nationally,” said Arunas A. Chesonis, chairman and CEO. “Over the last six months PAETEC has shown its commitment to growth by investing in businesses that allow us to deepen our customer relationships and enhance our product portfolio. Additionally, we successfully completed the Kenan to RevChain billing conversion during the second quarter, finalizing our integration of US LEC.” Financial results for second quarter 2010 included the following:

  • Revenue of $396.1 million;
  • Adjusted EBITDA* of $65.1 million;
  • Net loss of $7.5 million;
  • Free cash flow* of $33.7 million, which represented the 30th consecutive quarter in which PAETEC or its predecessor generated positive free cash flow;
  • Net cash provided by operating activities of $36.9 million; and
  • Cash, cash equivalents and short term investments of $125.6 million at June 30, 2010.

Quarterly Results – Second Quarter 2010 Compared to Second Quarter 2009
Revenue

  • Total revenue of $396.1 million increased 0.2% or $0.9 million for second quarter 2010 from second quarter 2009, primarily due to the inclusion of revenue from recently acquired companies that more than offset a decline in usage-based revenue and a $4.1 million decline in non-core basic telephone service revenue (“POTS”).
  • Core network services revenue increased $0.3 million to $284.9 million for second quarter 2010 from second quarter 2009.
  • Core carrier services revenue decreased 6.6% or $3.2 million for second quarter 2010 from second quarter 2009 due to lower usage-based revenue.
  • Integrated solutions revenue of $22.8 million increased 47.5% or $7.3 million over second quarter 2009 primarily due to PAETEC’s February 28, 2010 acquisition of US Energy Partners and June 7, 2010 acquisition of Quagga Corporation.

Link to Full press release (PDF-file)

Apollo and Alcatel-Lucent break submarine networking speed barrier

At the SubOptic tradeshow in Yokohama Japan today, Apollo, a UK based company who owns and operates one of the most advanced transatlantic fiber optic cable system in existence today, and Alcatel-Lucent (Euronext Paris and NYSE: ALU) announced the achievement of an industry milestone with the successful demonstration of the transmission of approximately three terabits per second (Tbit/s) of data, based on 40Gbit/s channels, per fiber pair in a submarine network.

Using Alcatel-Lucent advanced technology, this test was performed over Apollo

PAETEC Q1 2010

PAETEC Holding Corp. (NASDAQ GS: PAET) today announced first quarter 2010 financial and operating results. “We are pleased to announce that PAETEC is a Fortune 1000 member. PAETEC achieved this milestone through a decade of hard work, operational excellence, and disciplined management,” said Arunas A. Chesonis, chairman and CEO. “Solid access line additions and continued strengthening of the customer profile were clear highlights for this quarter and position PAETEC to take advantage of an improving economy.” Financial results for first quarter 2010 included the following:

  • Revenue of $390.1 million;
  • Adjusted EBITDA* of $65.5 million;
  • Net loss of $9.5 million;
  • Free cash flow* of $36.1 million, which represented the 29th consecutive quarter in which PAETEC or its predecessor generated positive free cash flow;
  • Net cash provided by operating activities of $7.8 million; and
  • A cash balance of $144.3 million at March 31, 2010.

Quarterly Results – First Quarter 2010 Compared to First Quarter 2009
Revenue

  • Total revenue of $390.1 million decreased 2.3% or $9.2 million for first quarter 2010 from first quarter 2009 primarily due to a decline in usage-based revenue and a $4.6 million decline in non-core basic telephone service revenue (“POTS”).
  • Core network services revenue decreased 1.1% or $3.1 million for first quarter 2010 from first quarter 2009 primarily due to a decline in usage-based revenue which was partially offset by a 5.0% increase in PAETEC’s data revenue, generated principally by sales of Dynamic IP and MPLS VPN products.
  • Core carrier services revenue decreased 9.2% or $4.5 million for first quarter 2010 from first quarter 2009 due to lower usage-based revenue.
  • Integrated solutions revenue of $16.5 million increased 23.2% or $3.1 million over first quarter 2009 as a result of growth in equipment sales and PAETEC’s February 28, 2010 acquisition of US Energy Partners.

View full release (pdf)