Cable Telephony: Lucent Technologies Announces CableConnect Solutions With First Feature-rich Telephony Over IP for Cable Networks. Signs Agreement with Motorola for High-Speed Data Equipment - Company Business and Marketing

Cambridge Telcom Report, June 21, 1999

Lucent Technologies Monday announced a comprehensive set of products and services for cable networks that will enable cable operators for the first time to offer packet telephony service with the features and reliability that customers expect from their existing telephone service.

Called Lucent's CableConnect Solutions, the offer includes hardware and software for cable operator networks and customer homes and businesses along with a portfolio of network design, installation and management services from Lucent NetCare. Lucent's CableConnect Solutions give cable operators the tools to create reliable, scaleable networks to help them unlock the communications potential of their cable network with broadband bundles of telephony, high-speed data and video services.

"Lucent is leveraging its latest technology breakthroughs to enable cable operators to provide full telephony services with unparalleled reliability," said Pat Russo, executive vice president, Lucent Technologies. "The PathStar* Access Server and the 7R/E Packet Solutions are the only products that can deliver voice and the most important features such as 911, call waiting and caller ID, over cable networks."

Designed by Bell Labs, the PathStar Access Server and 7R/E Packet Solutions make up the core of Lucent's CableConnect Solutions. The two products provide integrated access over cable networks, local voice and data switching and routing, and the industry's most complete set of telephony features, including the most popular features that generate 90 percent of the feature revenue in circuit networks today.

As part of its CableConnect Solutions, Lucent has entered into a joint development and marketing agreement* with Motorola, the industry leader in deployment of cable modem systems. Motorola's Cable Router Cable Modem Termination System (CMTS) and PhoneLink, a Multimedia Terminal Adapter (MTA) that combines cable modem and IP telephony capabilities, will be integrated into Lucent's offer.

"Lucent is working with Comcast in several areas to help make sure that Comcast's network has the right equipment, software and operations support to deploy high quality, high reliability IP services in the near future including trials of PathStar and IP Exchange," said Steve Craddock, vice president of new media, Comcast Corporation.

Lucent's new CableConnect Solutions contain all the hardware, software and services to help cable operators deliver multiple services over cable networks regardless of the network's size, location or configuration. Lucent's CableConnect Solutions currently include:

* PathStar Access Server - PathStar is a carrier-class, packet end-office solution that consolidates the functions of multiple network elements - voice over IP gateway, telephony system, remote access server, edge router and others - into one space-saving integrated system, thus reducing capital and operations costs by up to 70 percent. The PathStar is targeted to cable networks in small to medium line-size areas serving primarily residential customers and small to mid-size businesses.

* 7R/E Packet Solutions - The 7R/E processes calls in packets over IP networks and delivers more than 3,000 services and features with the same voice quality as traditional telephone networks. It also includes an open, programmable feature server to enable rapid delivery of new features. The 7R/E is targeted to cable networks in large metropolitan areas serving vast numbers of business and residential customers.

* Cable Modem Systems from Motorola - Lucent's cable offer will utilize two products from Motorola. In the cable operator's network, the company's Cable Router CMTS, which terminates the cable modem traffic and sends it to the PathStar or 7R/E for telephony processing and routing over the backbone packet network. And in a customer's home or office, the PhoneLink MTA, which connects to PCs and regular telephones and provides "always on" access to IP telephony and cable modem service.

* Billing, Customer Care and Order Management Software -- Kenan Systems' Arbor/Broadband solution supports everything from service ordering and integration with field operations to billing, payment processing and customer analysis. As cable operators move to provide multiple services, Arbor/Broadband helps them by offering innovative service packages, discounts and pricing plans with superior customer service.

* Lucent NetCare - Offering a complete suite of network services to support cable operators evolving to become integrated communications providers, including: Planning and Consulting; Implementation and Integration; Operations and Administration; and Support and Maintenance; all backed by 25,000 Lucent NetCare experts in more than 90 countries.

"The revenue opportunity for cable operators who can offer customers a full suite of communications services is substantial. But to succeed, cable operators need to be able to quickly upgrade their networks for two-way voice and data transmissions and have the ability to provision, manage and bill for new services," Russo said. "This makes Lucent NetCare and Kenan Systems software key differentiators for Lucent, especially since they already have experience working with a number of cable operators around the world."