FEATURE STORY
Vendors Sing Pink-Slip Blues Again: Is There An Upside Anywhere?

While it won't give the latest slew of laid-off workers any consolation, the upside for downsizing telecom vendor bigs is that some analysts view their present situation as short-term indigestion. And those votes of confidence will come as good news to cable op engineers who might worry about suppliers' abilities to deliver once the buying slump ends.

Nortel Networks (http://www.nortelnetworks.com), which already announced significant reductions in February, upped its pink-slip count last week. By mid-year, expect the company to be 15,000 employees lighter than the end of last year. It cites "deferred capital spending and increased pricing pressure."

ADC (http://www.adc.com) also blamed the spending downturn when it said last week it will lop off around 3,000 to 4,000 employees -- on top of the 3,000 earlier this year. It plans to lose most of its outside contract and temp workers as well.

On Friday, C-COR.net (http://www.c-cor.net) showed signs of the difficulties experienced by vendors all year when it announced it will consolidate manufacturing in Tipton, PA, and service ops in Atlanta into the company's other facilities. Expect up to 700 positions (about a third of staff) to go by the end of the year. "We are positioning ourselves for the future, when capital spending rebounds," the company's President and CEO David Woodle says.

Despite all the pink, some analysts remain firm on cable vendors' prospects. "Spending from their customers are slowing short-term, but long-term, companies like Nortel, ADC and Cisco Systems (http://www.cisco.com) are still well-positioned," Jeff Kagan, an Atlanta-based telecom industry analyst, says. "They are fundamentally strong and positioned to thrive once the economy in general, and the telecom industry in particular, get back on track. I think these are short-term industry and economy issues we are seeing play out, not fundamental long-term company issues."

And as Cisco's Technical Marketing Engineer Dave Pitts tells CT's Pipeline, "I believe that vendors can add people quicker than they can subtract. Usually, vendors have in-house training, which accelerates the time needed for new employees to become productive."

ENGINEERING NEWS
Choices, Choices: Cable Modem Subs With Multiple PCs Do Have 'Em

Editor's Note: In last week's issue, Triveni Digital's (http://www.3veni.com) Gomer Thomas wrote in to say that a factor in consumers' preference for DSL over cable modem services may involve the pricing structure for homes with multiple computers. Following are responses we received in reference to that letter. "Pipeline" welcomes letters to the editor at . Submissions may be edited for style and length.

"It's a shame that many consumers are not aware of their options in multiple PC environments. My operator, Advanced Cable (Coral Springs, FL), offers options for end-users to rent or purchase their own DOCSIS-compliant modems. There is a $10/month price reduction for providing your own modem. If you request separate IP addresses for a second and/or third PC, the charge is typically (if you use netmeeting and other IPA-dependent apps) $8-$10/month per additional IP address. If you are only using the second or third PC for e-mail and surfing, it's cheaper to purchase a router/hub and use dynamic host configuration protocol (DHCP) for assigning IP addresses beyond the one assigned by your ISP. That way you only pay for one IP address. I did not, nor was I required to, sign a contract for my data services.

Please let your audience know that by no means was the response from Triveni's Thomas regarding his rates for cable modem service typical. Each operator is free to set and establish primary and secondary rates based on what it thinks the market will sustain."

James Pierce
JBP Engineering and Consulting

"As I understand it, you can use a single cable modem along with the type of cable router that has its own resident IP address, and only pay the fee for one computer. That's the way it works in most of the systems in my area. In our system, the subscriber is billed for the amount of IP addresses used. In another local system, a sub is billed for how many network interface card (NIC) MAC addresses are operational. Both scenarios would be cured by the use of a router that has its own IP and MAC address, such as units made by Linksys (http://www.linksys.com) and Netgear (http://www.buynetgear.com)."

Bill Hutchins
System Engineer, Cox Communications

"In our area (Hawaii), DSL is marketed by Verizon (http://www.verizon.com), which uses very deceptive advertising. At first glance, the service appears cheaper than cable, but if you read the fine print, it's not so. Verizon also makes claims for speed that it cannot meet. As a Napster user, I download a great deal from the Internet. In my experience, DSL modems are not nearly as fast as cable modems overall. There are exceptions, of course. You occasionally see fast DSL, and there also are quite a few slow cable modems. Generally, however, cable modems outpace DSL."

Claude McConoughey
Oceanic Cable

"One problem with some cable modems is that they do not come with a built-in router, so you have to add one to use more than one computer. A Linksys (http://www.linksys.com) router works well. It also has a firewall built in.

In my area, there are two different types of ADSL. One uses a Pairgain (http://www.pairgain.com/index2.html) modem and a Linksys router. The other uses a Cisco (http://www.cisco.com) 677 router. Adelphia also has added cable modem services to a large chunk of my area. The cable modem either requires additional IPs for more than one computer, or the use of a router, which the cable company does not tell subs to use. Also, it does not offer static IPs, or does not know how to set up a static IP.

Personally, if I had access, I would use a cable modem. The bandwidth is better via cable vs. the cost. But right now, you do not have a choice of ISPs with cable in my area. I would prefer my existing ISP via cable vs. ADSL.

In the near future, I hope to see plug-and-play cable/ADSL modems where the customer does not have to do anything. It should be no harder than plugging in a light or TV set. Networking for the average computer user is a real pain. I will say that if I set up an ADSL router using the Cisco 677, it is almost plug-and-play as long as there is a network card installed, or it uses a USB network adapter."

Franklin S. Werren
Frank's Radio
Webmaster, SCTE Penn-Ohio Chapter

• Cable Labs Catches Largest Modem Certification Wave Ever -- As if you had any doubt of DOCSIS's role as a megaforce in the cable high-speed market, CableLabs (http://www.cablelabs.com) cemented that notion last Thursday when it announced the largest certification wave of cable modems and headend gear to date. A total of 23 modems and five cable modem termination systems (CMTSs) received the DOCSIS 1.0 stamp. Six new companies joined the list of DOCSIS cable modem equipment suppliers with certified products -- Castlenet (http://www.castlenet.com.tw), Dakos, Global Teleman, Matsushita, Scientific-Atlanta (http://www.sciatl.com), and Texas Instruments (http://www.ti.com). 3Com (http://www.3com.com), Askey (http://www.askey.com), Cisco (http://www.cisco.com), Elsa (http://www.elsa.com), Ericsson (http://www.ericsson.com), Motorola (http://www.motorola.com), Nortel (http://www.nortel.com), Powercom (http://www.powercom.com), Samsung America (http://www.samsungamerica.com), Samsung Electronics (http://www.samsungelectronics.com), and Terayon (http://www.terayon.com) earned DOCSIS modem re-certification. Tellabs' (http://www.tellabs.com) headend equipment was qualified for the first time, and Arris (http://www.arris-i.com), Cisco (http://www.cisco.com), Riverstone (http://www.yagosys.com) and Terayon (http://www.terayon.com) had CMTS re-qualified.

• Charter Charts Its Interactive Course With Liberate -- What's behind Charter Communications' decision to go with Liberate Technologies (http://www.liberate.com) as the op pursues ITV portal services like Web access and e-mail? "We're already running Liberate software on advanced Motorola (http://www.motorola.com) set-tops in a pilot program in St. Louis," Stephen Silva, Charter senior VP of corporate development and technology, says. "The results we've achieved clearly demonstrate their ability to efficiently add new services and content easily. I'm excited to work with them in realizing our vision to provide TV portal services to our customers, including Internet access and e-mail."

  Silva explains that Charter's digital customers in St. Louis with Liberate-enabled Motorola set-tops will initially have Web access, the TV Guide Interactive programming guide, and TV-based e-mail and other ITV portal services developed by digeo (http://www.digeo.com). Subs also will have access to advanced video systems with RealSystem G2-based content through the Liberate TV Navigator client software. Charter will integrate services of existing business partners, including Wink Communications (http://www.wink.com) and Diva Systems (http://www.divatv.com), to provide interactive programming and VOD services through its TV portal, Silva adds.

• Don't Roll That Truck! -- You know that remote access can save you time and money on truck-rolls, and one op truly taking up that tactic is Cox Communications via intuitive Web chat, co-browsing, file transfer and application sharing. Cox recently licensed Expertcity's (http://www.expertcity.com) DesktopStreaming to provide hands-on remote assistance to its Cox customers, which allows CSRs to fix problems directly on a sub's PC. "Over the last six months, Cox has empowered its support representatives with the DesktopStreaming customer support solution in three key markets. The experiences in these markets have been exceptional, including reduced session handling time by greater than 33%, first-time resolution rates in excess of 97%+ and overwhelmingly positive feedback from customers," Suzanne Foy, Cox's director of customer care technology, reports.

• Fueling the Hot Multiple ISP Landscape -- Comcast Cable Communications just inked an agreement to offer EarthLink's (http://www.earthlink.net) Internet services in a trial to select Philly-area subs during the second quarter of the year. As you'll recall, Comcast and Juno Online Services (http://www.juno.com) announced plans for a similar trial in November. Watch for other tests soon. "Based on what we learn from this and other trials, we are eager to move ahead with plans to offer our high-speed Internet customers a choice," Comcast President Steve Burke says.

• Co-Ed VOD -- No VOD in your system yet? Well, watch for future subs to demand it because college kids are getting a taste of the technology in their school libraries. An example is the University of Maryland, which is turning to VOD to augment its VCR-based lectures, language and other educational videos. Concurrent Computer Corp. (http://www.ccur.com) announced last week that the university's libraries' nonprint media services selected its MediaHawk video server to support VOD over IP and baseband networks for education apps. Eventually, the university might completely ditch the VCR.

• BarcoNet Springs Integration of Headend and Network SNMP Elements Forward -- Looking to shift your resources from basic equipment integration to high-level service management issues? BarcoNet (http://www.barconet.com) launched its ROSA 3.0 last week, which it says integrates all headend and simple network management protocol (SNMP) elements in hours instead of months. "ROSA with SNMP profile manager is the only system on the market capable of integrating network devices of several vendors into a single management platform without extra programming. It allows ops to reduce their software integration development efforts by up to 10 times," the company reports.

• As ops deploy cable modems, digital boxes, and broadband telephony, digital splitters become a general necessity for the subscriber drop portion of the plant. Time Warner Cable recently approved the Genesys II digital drop splitter from PCT International (http://www.pctusa.net), a division of Andes Industries, for use in its systems nationwide. The splitters' features include higher return loss, increased isolation, better surge protection, more resistance to spurious signal harmonics, and weather sealed F-ports that also are SCTE-compliant, according to PCT.

• Despite its layoff announcements last week, C-COR.net (http://www.c-cor.net) also said it will acquire MobileForce Technologies (http://www.mobileforce.com), which develops workforce management applications and wireless mobile computing solutions. Expect the deal to close by the end of June.

• Signaling sub demand for high-speed data in western Canada, Shaw Communications is set to buy 250,000 cable modems from Terayon (http://www.terayon.com). The op expects to take delivery of the modems and associated headend equipment over the next nine to 12 months.

• Last week, WorldGate (http://www.wgate.com) unveiled its Ultra-Compact Server (UCS) for distribution of its interactive service. WorldGate's cable affiliates previously used a server that could support approximately 60 simultaneous sessions, but the new one takes up one-quarter of the rack space and supports up to 150 simultaneous sessions.

• LSI Logic Corp. (http://www.lsil.com) has agreed to acquire digital media processing company C-Cube (http://www.c-cube.com) in a stock-for-stock transaction valued at approximately $878 million.

  International Notes -- In southern China, cable op Jiangmen CATV purchased a Marconi (http://www.marconi.com) switching solution that will create a high-speed IP net serving banks, power utilities, businesses and official organizations, including customs. The net will use IP over asynchronous transfer mode (ATM) technology. -- The third largest German cable op is about to be created as Mainz, Germany-based PrimaCom AG and Amsterdam-based United Pan-Europe Communications N.V. will combine their German cable businesses. -- High Speed Access Corp. (http://www.hsacorp.com) has begun initial work on IP infrastructure services for Kabel Nordrhein-Westfalen GmbH & Co. KG, Germany's largest private cable network op. -- Streaming video company On2.com (http://www.on2.com) reported that SGI Japan started trials of the set-top box version of the VP4 codec for the Japanese market last week. The VP4 features near-DVD quality at 450 kbps and near-VHS quality at 150 Kbps. -- Seoul-based Korea Thrunet Co. Ltd., the country's largest cable modem Internet provider, and Korean communication carrier Powercomm, signed a new HFC network lease agreement that will increase Thrunet's coverage to 70 CATV system operators out of 77 in total nationwide.

CAREER ENGINEER
Checked Your VPN Strategy Recently?

You should, according to Insight Research's report, Data Virtual Private Networks 2000-2005, which foresees the market for VPNs nearly tripling in the next two years, from $2.53 billion this year to $7.25 billion by 2003. Two trends -- an increase in availability of dedicated broadband access and corporate reliance on network outsourcing -- will signal the start of an even stronger growth period for the data VPN market, Insight predicts. As the installed base of dedicated always-on (AO) cable modem and DSL connections to the Internet increases, remote corporate users will begin enjoying performance on par with the corporate home office. To manage such an explosion of new users and the complexity of their network elements while assuring reliability, corporations will turn to carriers able to provide a managed or outsourced VPN solution.

"As these networks become more widely deployed, we expect to see VPNs at the forefront of an IP network revolution," Insight President Robert Rosenberg predicts. "Data VPNs today are really closed user groups. Once these networks begin to absorb escalating numbers of dedicated broadband access users, the distinction between those that are 'on-net' and 'off-net' will be increasingly more difficult to discern. Over time, we expect to see those corporate VPNs integrate trading partners like home-based entrepreneurs and small businesses. Once that happens, IP networking will dominate the corporate scene."

A free report excerpt, table of contents and ordering information is online at http://www.insight-corp.com/datavpn.html. A hard copy of the 117-page report is available for $4,195. You also can obtain an Adobe Acrobat (PDF) report license. Visit insight-corp.com, or call .

SCTE ANNOUNCEMENTS
Expo and HMS Standards Update

International Breakfast at Cable-Tec Expo -- SCTE will hold its first networking breakfast for international attendees at Cable-Tec Expo 2001 in Orlando, FL, from 7-8 a.m. on Wed., May 9. Communications Technology International magazine will sponsor the event. SCTE ambassadors -- volunteers in a new program designed to support learning and standards involvement for technical broadband professionals outside of the United States -- will serve as hosts, welcoming international attendees and initiating dialogue about industrywide training and development.

Last Chance to Pre-Register for Expo -- Hurry! Sign up by April 6 to beat the pre-registration deadline for SCTE's Cable-Tec Expo, coming May 8-11 to the Orange County Convention Center in Orlando, FL. In addition to the International Breakfast, Expo will include keynote speaker Robert Sachs of NCTA, panel discussions featuring leading industry CEOs and CTOs, an 180,000-square-foot exhibit hall, and special events. Register online by April 6 at http://expo.scte.org, and save $75 off the on-site registration fee. For more info, call the SCTE Customer Care Center at , or .

SCTE Standards Subcommittee To Meet In Stuttgart, Germany -- SCTE will hold its first overseas standards development meeting when more than 30 members of the Hybrid Management Sub-Layer (HMS) Subcommittee gather in Stuttgart, Germany, on April 23-25. Hosting the group is Wolfgang Klenner and his Paris-based company, NEXTREAM, a supplier of MPEG network products, multimedia headends and HFC solutions for cable networks. The HMS Subcommittee charter is to specify a robust protocol suite to support cost- effective interoperability of management systems for evolving HFC networks. Esteban Sandino, director of HFC engineering for AT&T Broadband, chairs the subcommittee. For more details, contact Steve Oksala, SCTE VP of standards, at , ext. 204, or .

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