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Cable & Wireless a big deal for Sonus

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Cable & Wireless International is giving Sonus Networks one of its largest transformation projects. The companies said last week that Sonus will be the primary supplier of the operator's next-generation switching network based on the IP multimedia subsystem standard.

Sonus has built its product portfolio around the IMS standard and will use it to replace C&W's circuit-switched infrastructure. That network covers 34 countries, including 14 islands in the Caribbean and Bermuda, where Sonus will begin the transformation.

In addition to the Caribbean, C&W provides mobile, broadband, and domestic and international fixed-line services to residential and business customers in Channel Islands, Macau, Monaco and Panama.

Hassan Ahmed, chairman and CEO of Sonus, said the operator's plan to migrate to an end-to-end network from Sonus is one of the most aggressive decisions by an incumbent carrier to date. The deployment includes Sonus' GSX9000 and GSX4000 Open Services Switches, its PSX Call Routing Server, the ASX Access Server, the Network Border Switch for IP-to-IP peering and security, and the Sonus Insight Management System for advanced operations support systems and billing support.

For Sonus, the deal is more than a hardware sale. C&W has also contracted for such professional services as design consulting; managing and supporting engineering, furnishing and installation services; control migration; and provide in-country operations support.

“People have been peeling back the onion on IMS and SIP and fixed/mobile convergence for 10 years, and it's all been technology-driven. But now people are able to look at this technology and make decisions not just on their infrastructure, but their business structure,” said Bruce Trvalik, director of IMS strategy for Sonus.

Deals such as this and the one announced the prior week at VON in Boston, with managed services and IP PBX provider Whaleback Systems, are showing the diversity of Sonus' customer base. They also are helping Sonus maintain its market leadership in high-density gateways, according to Synergy Research. A recent report by the firm showed Sonus with 44.7% of the U.S. market, 80% in Japan and overall market share of 64%.

BROADBAND GAINS WIDER HOLD

There are 15% more broadband users among U.S. active Web users, according to the most recent Nielsen/NetRatings survey. The total number of home broadband users has grown 30% between May 2005 and May 2006.

TABLE 1: BROADBAND COMPOSITION AMONG ACTIVE WEB USERS
(U.S., HOME ONLY)
Web connection May 2005 May 2006 Percentage point change
▪ Narrowband 43% 28% -15
▪ Broadband 57% 72% 15
Source: Nielsen//NetRatings, June 2006

TABLE 2: NUMBER OF BROADBAND USERS
(U.S., HOME ONLY)
Web connection May 2005 May 2006 Year-over-year percent change
▪ Narrowband (in thousands) 58,761 40,325 -31
▪ Broadband (in thousands) 78,573 102,488 30
Source: Nielsen//NetRatings, June 2006

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