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News Summaries
for the week ending March 15, 2000 

Last Week's News

Web voice chat companies merge 
Net2Phone inks deal with RealNetworks 
VocalTec announces consumer communications portal 
Mitel teams with RADVision 
IBM unveils new internet appliances 
U.S. Justice Department rolls out Cybercrime site 
PMC-Sierra to buy AANetcom and Extreme Pack Devices 
Centra seeks to cut cost of web conferencing 
Move over Amazon.com 
Internet access over power lines nears reality 
Can fiber make it down the last mile? 
Uncle Sam patrolling the Net 
i2 Technologies buys Aspect Development in $9.3 billion deal 
FCC to promote trading system for airwaves 


Web voice chat companies merge
Source: Cnet

Web voice chat company HearMe Networks said on March 13th it would acquire AudioTalk Networks, a company with similar technology focused on a different market.
  The two companies are part of a new wave of firms aimed at giving email and the popular Internet instant text messaging applications a voice component, so that surfers can talk to each other live on the Web.  The mostly stock transaction is valued at about $125 million, the HearMe executives said.  The merger will give HearMe technology that will allow its subscribers to connect calls to ordinary offline phones, instead of limiting them to the Net. AudioTalk has focused its technology on the corporate market.

The Net voice chat business is still in its infancy, with a wide range of companies competing for slightly different slices of a still-fuzzy market. HearMe is one of the largest consumer voice chat companies on the Web.

 

Net2Phone inks deal with RealNetworks
Source: Cnet

Net2Phone, which sells Internet telephone service, said it will bundle its software for making calls on the Web with online music and video-player software from RealNetworks.
  Terms weren't disclosed. Users who download RealNetworks' free RealPlayer software also will be able to get Net2Phone software for making phone calls online. RealNetworks users in the United States who register for Net2Phone will get a headset and 100 free minutes of domestic calling time.

Net2Phone is trying to get more consumers to make online calls, which are cheaper than traditional, wire-based service. RealNetworks is adding features and services to fend off bids by Microsoft and Apple Computer to challenge its leading position in the market for Internet media players.  

RealPlayer has about 95 million registered users who'll be able to download the new software using a function on their RealPlayer that shows when new software has been released.

 

VocalTec announces consumer communications portal
Source: iLocus

VocalTec announced formation of its wholly owned subsidiary TrulyGlobal. TrulyGlobal is a web-based, consumer-driven Internet telephony portal.  VocalTec will provide the first round of funding for TrulyGlobal from part of the proceeds it expects to receive from the sale of a portion of its shares of ITXC.  VocalTec currently owns 5.5 million shares of ITXC common stock. The vendor is participating as a selling shareholder in ITXC's secondary offering.

TrulyGlobal will offer consumers web based Internet telephony services with voice quality and flexibility by enabling subscribers to customize their Internet communications.  The service has been designed using the input of millions of Internet Phone users and with help from the creators of Internet Phone.  TrulyGlobal is being launched during the fifth anniversary of Internet Phone, internet telephony services software. It will debut during the second quarter.

 

Mitel teams with RADVision
Source: iLocus

Mitel Semiconductor, a division of Mitel Corporation announced that it is integrating two protocols(H.323 and MGCP) for providing multimedia services from RADVision, into silicon systems that will bring quality voice to IP telephony applications.  Integrating RADVision's protocols, according to Mitel is combination of software, telephony and voice technology that's required to accelerate the adoption of VoIP solutions.  RADVision's technology will ensure that Mitel's silicon provides interoperability across all of the signaling stack requirements for emerging VoIP applications.

Mitel's chipset includes the components required to increase performance of voice and data transfer in emerging IP applications. The company envisions IP enterprise solutions that integrate wireless modules and IP voice gateways, while providing quality voice signals and voice recognition applications.

The H.323 core protocol enables the creation of real-time voice calls over IP networks and MGCP building blocks separate the signaling, call control and media internetworking into separate, logical entities.

 

IBM unveils new internet appliances
Source: Newsbytes

Although Bell Atlantic announced last week it was joining IBM in a test of Internet appliances and applications, it is not the only telecommunications company sharing "Big Blue's" virtual test bench. SBC Communications, another prominent telecommunications company, also is participating in the trials.

According to IBM, it has agree with several leading communication companies and application service providers (ASPs) to begin testing IBM's new Internet appliance. By combining the IBM appliance with an array of service options, including content and hosting from ASPs, and broadband connections from telecommunications partners, the device will, according to IBM, become part of a convenient end-to-end Internet access system requiring little or no end-user PC skills.

According to an IBM statement, the new Internet appliance is comprised of two components: a 10-inch color monitor and a keyboard for direct Internet access. However, these specifications are different from IBM's new NetVista All-In-One model as described by IBM in an announcement made today.

No one from IBM returned Newsbytes' call regarding this distinction, and it seems that there are to be several models sold under the NetVista brand.

SBC and Bell Atlantic plan to try out the IBM appliance with their respective broadband services in hopes of identifying industries and associated end-users in various areas - insurance, finance, healthcare, small to medium sized businesses, travel, and entertainment among them.

 

U.S. Justice Department rolls out Cybercrime site
Source: Newsbytes

As a part of its continuing effort to combat the rising tide of Internet attacks, the US Justice Department has rolled out a new Website designed to serve as a clearinghouse of cybercrime information and resources.  Located at http://www.cybercrime.gov , the new Computer Crime and Intellectual Property Section (CCIPS) Web site contains links to a number of cybercrime documents and sites and includes a list of phone numbers for whistle-blowers to use in reporting online attacks.  "The main thing is we want the information to be easily accessible to the public," CCIPS attorney David Goldstone said today.

The Cybercrime.gov site is also the new home of the controversial report on online activity released by the Clinton Administration last week.  Cybercrime.gov visitors can view a copy of the report - "The Electronic Frontier: The Challenge of Unlawful Conduct Involving the Use of the Internet."  The report has drawn sharp criticism from civil liberties and privacy groups. A product of the President's Working Group on Unlawful Conduct on the Internet, it contends that law enforcers need new "tools" for combating the rising tide of electronic crime.  The Cybercrime.gov page also contains a "Kids Page" that includes some guidance for juveniles thinking about using the Internet.  Mindful of the youthful stature of many hackers, the Justice Department includes a link entitled "You Can Get in Real Trouble for Hacking!" on its Kids Page.

 

PMC-Sierra to buy AANetcom and Extreme Pack Devices
Source: Newslog

PMC-Sierra Inc., (Burnaby, B.C., Canada) a maker of communications chips, said it would buy AANetcom (Allentown, Pa., and San Jose, Calif.) and Extreme Pack Devices Inc. (Kanata, Ont., Canada) -- both fabless semiconductor companies that design and market their products but contract out the fabrication -- for $1.3 billion. AANetcom's ICs are used in telecom equipment and optical networking switches. Extreme Packet was founded in 1999 as a system-on-a-chip company that develops chipsets to help manage and control network traffic.  

 

Centra seeks to cut cost of web conferencing
Source: Teledotcom

Centra Software Inc. (Lexington, Mass.) is stoking its interactive capabilities by updating its Web conferencing product, the company said.  The software, due to ship in April, will let attendees view online conferences and talk via voice over Internet protocol (VoIP) so they don't have to be on the phone and on their computers simultaneously.  In the company's current product, users can listen to the conference, but not talk, via VoIP. Centra Conference version 3.0 also supports more than one presenter, with the conference leader assigning privileges that enable attendees to lead or moderate an event. Conference leaders can now also turn off text chats during the session if needed.  

Other perks include instant polling of attendees, bulked-up whiteboarding tools and a resizeable application sharing window.  Centra Conference competes with such products as Conference from PlaceWare Inc. (Mountain View, Calif.) and Learningspace from Lotus Development Corp. (Cambridge, Mass.).  As the expense of training and retaining employees increases across industries, the need for less costly training is likewise soaring, analysts said. Centra hopes to attract customers that don't want to foot big long-distance phone bills in addition to the cost of the Web conferencing software.

Centra customers include such companies as Kraft Foods Inc. (Northfield, Ill.), Compaq Computer Corp. (Houston), Sony Corp. (Tokyo) and Viacom Inc. (New York). Partners include such large consultancies as PricewaterhouseCoopers (New York), Deloitte & Touche (New York) and KPMG International (London).  Centra Conference 3.0 will cost $25,000 for server software plus 50 concurrent licenses.

 

Move over Amazon.com
Source: Wired

For the month of February, by PC Data's count, CDnow logged more than a million unique buyers compared to 984,000 for second place finisher and erstwhile e-tail king Amazon.com.  Amazon had held the top spot in the PC Data rankings since mid-1999. Web ratings firms Media Metrix and NetRatings have not yet released their February data.

"In February, home Internet users shopped at Amazon.com but actually bought from CDnow.com," said PC Data analyst Cameron Meierhoefer, noting that Amazon logged 13.2 million unique visitors compared to 8.2 million at CDnow. "CDnow.com is one of the strongest retail brands on the Web, and it appears that recent promotions have successfully leveraged this strength."  The strength was not immediately evident on the stock market, where CDnow's shares slumped 10 percent on the news that the company had terminated a previous merger agreement with Columbia House music club.

In early afternoon trading, shares of CDnow (CDNW) were $8.50 a share, giving it a $258 million market capitalization -- a tad more than a hundredth of Amazon.com's $22.6 billion market value.

 

Internet access over power lines nears reality
Source: Comsoc
 
Utility companies could join telecommunications giants in the race to dominate the high-speed Internet access market if the powerline strategy of Germany's Oneline proves to be a success. Through Oneline, the German energy conglomerate Veba and the U.S. home networking firm Enikia will be launching trials for a new service that offers high-speed Internet access over power lines in both countries this summer. And by the end of the year Veba and Enikia expect a full commercial release of the new service in Germany. Because electricity wires are the most common connections to home power lines, they have the potential to be the new communications infrastructure if the companies can make them more efficient than Internet and telephone connections. "Most utilities don't understand that they're sitting on a gold mine," says Phil Hunt, a powerline communications expert and senior manager at Cisco. Still, Oneline will be facing hurdles such as transformers and network interference in its attempt to deliver a stable, high-speed system of data transmission over power lines. 

Nortel was once involved in powerline technology but the strategy did not make sense financially. Currently, download speeds over power lines are a little faster than the speediest dial-up modems. The companies say hardware designed just for powerline networks will bring improvements. At least one of the large long-distance companies in the U.S. is interested in partnering with Oneline. 

 

Can fiber make it down the last mile?
Source: Comsoc

Passive optical networks may allow service providers to extend fiber deployments and offer more economical optical services. PONs lower the cost of deployment and support by allowing a minimum number of active components in the access network. Metromedia Fiber Networks is involved in a massive fiber deployment to key metro areas in the United States and Europe. Although MFN has wide coverage, its service is strictly dedicated to Fortune 1000 companies for now. Deployment costs prevent the company from extending the network very far. On the other hand, regional Bells are pushing fiber closer to the customer. 

In particular, BellSouth is making strides. The company deploys fiber to the curb at about 50,000 to 100,000 lines annually, according to Dan Spears, director of research for BellSouth Science and Technology. Bringing fiber closer to the customer could enable BellSouth to provide DSL service at speeds as high as 6 Mbps. However, PONs may be the key to high-bandwidth access this year. Quantum Bridge is one of the main suppliers of the technology, which enables several users to share one fiber strand. A new range of users could get access to optical networking via PONs, said Rosemary Cochran of Vertical Systems. PONs may be attractive to CLECs because of the need for bandwidth in the market, Cochran said. In addition, the PON's scalability makes it favorable for the small and midsized markets. DSL access multiplexers also work for last-mile fiber. But a CLEC must have access to dark fiber to take advantage of such systems. 

 

Uncle Sam patrolling the Net
Source: ZDnet

Next month, the Children's Online Privacy Protection Act (COPPA) is set for implementation, and online companies catering to kids are gearing up to comply.  Satisfying the 1998 law won't be easy. The law calls for "parental consent" for any information collected about children under 13. Some companies are having difficulties figuring out how to get parental consent.  "Companies are acting slowly because they are unsure as to what they can and cannot do, and how to get the parents involved," said Ben Isaacson, executive director of the Association for Interactive Media, a trade organization for Internet companies. "In terms of what the Federal Trade Commission has prescribed, it's left to interpretation -- and loosely described."

The rule has two levels. If the Web site does not share any information it collects from children with other companies or organizations, then it can ask parents for consent via e-mail.  If information is collected and sold or distributed, Web sites must find other ways to grant consent. So companies can try to install digital authentication systems, they can set up toll-free numbers where operators are trained to understand the difference between the voice of a 12-year-old and that of an adult, or they can provide a way for parents to give consent via snail mail.

The site has 570,000 registered users, and as many as 160,000 of them are under 13. To register, children must have their parents fill out a form offline, then fax or mail it to the company.

 

i2 Technologies buys Aspect Development in $9.3 billion deal
Source: CNet

Software maker i2 Technologies today made two acquisitions intended to jump-start its push into the business-to-business e-commerce market.
  i2 plans to buy Aspect Development, a competing maker of business-to-business software, for $9.3 billion in what may be the largest merger ever in the software industry, the companies stated.  Under the terms of the stock-for-stock deal, the companies will combine their business-to-business (B2B) technologies and services to expand the i2 TradeMatrix marketplace. TradeMatrix provides technology and services that deliver e-commerce content, product design and direct procurement software, the companies said in a statement.  i2 was down $18, or 9 percent, at $190, while Aspect climbed $11.75, or 14 percent, to $96.75 on news of the deal.

Tom Harwick, an analyst with Giga Information Group, said today's news is no surprise. This is the natural evolution of the companies' relationship, which includes an equity investment by i2 in Aspect, collaboration on projects during the last six months, and joint marketing deals, said Harwick.

 

FCC to promote trading system for airwaves
Source: Digitalmass

The federal government is developing plans to treat airwaves as commodities to be bought and sold in the open market, The New York Times reported.  Federal Communications Commission officials say they are working on rules that would create a trading system in which telecommunications companies could bid on frequencies that are owned by other companies but are underused.
  Under the current system, the government licenses each user and regulates what frequencies and signal power it can use. The oldest licenses were given free; recent ones were sold to the industry. The rights have never been bought and sold in a secondary market.

Government officials worry that demand for airwaves is outstripping supply because of the proliferation of cellular telephones, pagers, satellite services and other wireless devices. The volume of traffic on the Internet, the FCC says, doubles every 100 days, increasingly through wireless connections such as cell phones and handheld computers.  "What a tragedy it would be if, right as we're on the verge of the Internet migrating to inexpensive handheld devices and offering real hopes of truly democratizing the technology, the movement would be stymied by overloading the spectrum," FCC chairman William Kennard told the Times.

In deregulating the spectrum to create the new market, the FCC would be enabling licensees who own the rights to a slice of the airwaves to profit from any surplus, such as parts not in use 24 hours a day.