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02/01/2006

Global telecommunications industry revenue will reach $1.2 trillion by the close of 2006 and to almost $1.6 trillion in 2010, bringing an end to the industry slump, says a new report from Insight Research. Wireless revenue will approach almost 49 percent of all telecommunications services revenue by the close of 2006 and will grow to 55.6 percent of all telecommunications industry revenue by 2010.

The nation’s sixth largest electric company, TXU Electric Delivery, and BPL company CURRENT Communications Group LLC this year expect to begin modernizing TXU’s power distribution network to deliver triple-play broadband communications services. Existing CURRENT shareholders include Cinergy Corp., EnerTech Capital, Goldman Sachs Group Inc., Google Inc., The Hearst Corp., and Liberty Associated Partners, LP, of which Liberty Media Corp. is a significant limited partner. CURRENT will design, build and operate the BPL network covering the majority of the TXU Electric Delivery service area, including approximately 2 million homes and businesses in the Dallas/Fort Worth Metroplex and other Texas communities. Under the terms of the agreement with CURRENT, TXU Electric Delivery will procure services over 10 years for approximately $150 million to utilize the capabilities of CURRENT’s BPL network. When the agreements become effective, TXU Corp. will become an equity holder in CURRENT.

Joining forces with Juniper Networks Inc., Mintera Corp. and Xtera Communications Inc., MCI Inc. has transmitted 40gbps over 3,040 km of fiber in MCI’s Dallas metro area network. The milestone demonstrates that next-generation technology now is available to support high-bandwidth IP traffic demands over ultra long haul distances on existing fiber infrastructure while maintaining reliable performance standards. The technology field trial, which was conducted in October and November 2005, carried 74 channels of 10gbps traffic and two channels of 40gbps traffic over 38 individual 80-km spans of standard single mode fiber around the Dallas metro area. It used the Xtera all-Raman DWDM system, Mintera advanced modulation format long-reach OC768 transponders, and Juniper Networks’ T640 IP routers with OC768 short-reach interfaces.

The House of Representatives has agreed to move up by less than a month the date that requires TV stations to end analog broadcasts and air only digital signals, a process that will free up airwaves for commercial wireless services. Instead of April 7, 2009, the new target deadline is Feb. 17, 2009. The DTV Transition Act is part of Congress’s overarching budget bill that was the subject of much debate toward the end of 2005. The 2009 date change resulted from a compromise with the Senate. Current law, which the new act will replace, stipulates stations must air only digital programming when 85 percent of Americans can receive the new signals, or by Dec. 31, 2006. This looked to cause politicians heartburn if constituents’ televisions were to go dark because they could not receive digital signals, so lawmakers sought to reassign the date. “We will have three years to prepare for the transition,” said Rep. Joe Barton (R-Texas), chairman of the House Commerce Committee, which oversees technology legislation. Lawmakers did set aside $990 million for consumers who ask to receive up to two $40 converter-box coupons from the National Telecommunications and Information Administration (NTIA). If the NTIA tells Congress it needs more money — to educate Americans about the digital TV transition or for administrative costs — it could use up to $1.5 billion. The Senate originally wanted that fund to amount to $3 billion, but halved the total in its compromise with the House.

Links
Cinergy Corp. www.cinergy.com
CURRENT Communications Group LLC www.currentgroup.com
Google Inc. www.google.com
Insight Research www.insightresearch.com
Juniper Networks Inc. www.junipernetworks.com
Liberty Media Corp. www.libertymedia.com
MCI Inc. www.mci.com
Mintera Corp. www.mintera.com
National Telecommunications and Information Administration (NTIA) www.ntia.doc.gov
TXU Corp. www.txucorp.com
U.S. House of Representatives www.house.gov
Xtera Communications Inc. www.xtera.com


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