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News Summaries
for the week ending March 29, 2000 

Last Week's News

Bell Atlantic offers ISPs single-number access 
CRTC okays CTV-Netstar deal 
Lucent to unveil video networking company 
New Redback hardware helps ease network traffic 
Deltathree.com's CEO resigns, stock plummets 
Science-fiction staple new entry in high-speed Net 
Nortel announces new and improved optical ethernet 
IBM and Qwest in alliance to build Internet centers 
Government rejects Microsoft offer, prepares for verdict 
Stretching DSL difference 
BreezeCOM opens at 167% above issue price 
Qwest sale clears path to merger with US West 
Microsoft's voice-recognition device cheered at conference 
IBM produces affordable supercomputer 
Cisco closes as world's most valuable company 
Internet cell phones? Ready, Set. . .Wait! 
Adding bandwidth out in the country 


Bell Atlantic offers ISPs single-number access
Source: Newsbytes & Digitalmass

Bell Atlantic has offered Internet service providers and businesses a way to give customers dialup access using the same number, no matter where they are.  Using Integrated Services Digital Network Primary Rate Interface (ISDN PRI) links, Bell Atlantic's Advanced Intelligent Network will connect consumers, mobile Web surfers and on-the-road professionals to their ISP or local area network.

Bell Atlantic is offering numbers under the little-used 500 area code system set up for more than five years to direct calls to a particular phone line. For example, a call from anywhere in Bell Atlantic's region to order a pizza from a large chain would be automatically directed to the outlet closest to the caller.

Now the same system is available for ISP and LAN hookups, Bell Atlantic spokesman Jim Smith told Newsbytes. "Our network will feed these data calls to that high-capacity pipe and off they go," said Smith. "That avoids the necessity of having a number in every local calling area."

Bell Atlantic says it is the first company to offer ISPs and corporate networks a way to give customers single-number, dial-up access for its Northeast and mid-Atlantic regions, or any combination of regional calling areas.  Bell Atlantic can be found on the Web at  .

 


CRTC okays CTV-Netstar deal 
Source: Angustel

CRTC Decision 2000-86 approves CTV's purchase of 80% in NetStar Communications, subject to conditions that include the sale of the Sportsnet specialty channel within one year. BCE, whose offer to buy CTV is conditional on approval of the NetStar deal, has reserved comment.

 


Lucent to unveil video networking company

Source: CNet

Lucent Technologies will announce a new venture on March 28th aimed at making video easier to send over high-speed networks.
  The new company, called GeoVideo Networks, will take advantage of technology developed by Lucent's New Ventures Group to create a network and suite of software focused on high-speed Net video, which is often slowed by roadblocks on the public Internet.

Along with fiber-optic network partner MetroMedia Fiber Network, the company will initially aim its services at businesses, which are close to urban fiber networks and have considerable demand for high-speed, high-quality video. The company cites university telemedicine, teleconferencing or the long-distance video connections used by television stations as possible candidates.  The company also will add consumer applications such as video-on-demand services as the market matures, it says.

The Lucent technology would take advantage of the huge bandwidth available on MetroMedia's fiber network to make an end run around much of the public Internet's blockages, and then use software developed inside its Bell Labs to streamline the delivery of the video.  As one example, a GeoVideo browser will allow customers to tailor their connections to receive HDTV-quality video or higher, depending on their connections, or have up to 16 windows open simultaneously receiving different videoconferencing signals.

 


New Redback hardware helps ease network traffic

Source: Cnet

Redback Networks, a high-speed Net equipment firm, introduced products to handle traffic in the busiest telecommunications networks.
  The new equipment will begin generating sales during the second quarter, the company said. GTE, a Redback customer that's being purchased by Bell Atlantic, is trying the products.

The product line will help phone, cable and Internet companies handle 10 times as  many simultaneous connections as earlier versions. The company's shares have soared more than 27-fold since an initial stock sale in May 1999, as telecommunications service providers buy more equipment to keep pace with demand for faster online access.  Nortel Networks, Siemens and other rivals have already introduced similar products that manage more online traffic, Kaufman Bros. analyst Barry Sine said.

 


Deltathree.com's CEO resigns, stock plummets

Source: CNet

Deltathree.com's shares fell 39 percent after the provider of Internet telephone services said chief executive and president Amos Sela is resigning to join RSL Communications.
  Deltathree.com's shares fell $11.50 to $18 on the Nasdaq. The shares had almost doubled since they were first sold to the public in November at $15.  RSL, controlled by cosmetics heir Ronald Lauder, owns a 68 percent stake in New York-based Deltathree.com. Sela, 56, will become vice president of special projects at RSL, a voice and data-communications company. Noam Bardin, 28, a co-founder of Deltathree.com, will become president and interim CEO April 1.

Deltathree.com, which had 1.7 million subscribers at the end of the fourth quarter, generates its revenue by routing calls on its network and from banner advertising. The company offers features such as fax, voice mail and email that can be checked by phone or computer.  The company said it has research and development offices in Jerusalem, where it employs 80 of its 125 workers. Most of the remaining employees are in New York.

 


Science-fiction staple new entry in high-speed Net

Source: CNet

By delivering Internet access, corporate data and other services through glass windowpanes via beams of light, companies such as TeraBeam Networks believe they can offer communications services faster and at lower costs than competitors. Unlike competitive technologies such as cable or copper  broadband connections, fiber optics, or high-speed "fixed" wireless dishes, lasers do not require costly wireless spectrum licenses, access to rooftop rights-of-way, or trenches under city streets, proponents say.
  "There's a tremendous amount of potential for free space lasers, especially when laying fiber is a problem," said Vincent Chan, a professor of electrical engineering, astronautics and computer science at Massachusetts Institute of Technology.

Lasers have promise when compared to competitors such as fixed wireless technologies because of the far greater speeds at which they can transmit voice and data traffic. Lasers can deliver communications at least 10 times faster than most fixed wireless systems and do not require expensive regulatory licenses. Some experts suggest there simply is not enough wireless spectrum to supply similar download speed rates.  "The pros are very short install times. It doesn't take any time at all to establish a connection," Chris Nicoll, director of infrastructure analysis at market watcher Current Analysis, said.

Laser service providers install receiver equipment near a window in their customers' offices, while originating the signal from a nearby office building, often rented with the sole purpose of housing the service provider's gear. The equipment uses lenses, similar to those found in telescopes, to project the invisible beams of light.  But some industry experts say susceptibility to foul weather leaves lasers far from an ideal solution. Heavy rain, snow, sometimes turbulence in the air and particularly fog can attenuate laser signals and cause outages or slow connection speeds, experts say. If the human eye has difficulty seeing through the weather conditions, such as in thick fog, so will the lasers, experts say.

 


Nortel announces new and improved optical ethernet

Source: Convergedigest

Nortel Networks said its forthcoming 10 Gigabit Ethernet products will deliver as much as a 25x improvement in network price/performance.  Utfors, a leading Swedish Internet and telecommunications operator, will deploy the Nortel Networks' system to build "Europe's first end-to-end Ethernet network."  Canada's Bell Nexia will also deploy end-to-end optical Ethernet to offer its customers 10/100/1000 Mbps and 10 Gbps Ethernet-based VPNs. Financial terms of the Utfors and Bell Nexia contracts were not disclosed.  Nortel Networks' optical Ethernet portfolio will include: 

  • Accelar Routing Switches for aggregating Ethernet traffic
  • Versalar Switch Router 25000 and OPTera Packet Core for high-speed Ethernet connections,
  • Preside service-enabling management software,
  • Baystack and Etherloop for extended Ethernet access,
  • the Shasta 5000 Broadband Service Node for IP services,  and
  • interWAN Packet Transport modules to integrate Ethernet switching across the complete OPTera and Transport Node product lines .  The interWAN Packet Transport (iPT) modules offer native Ethernet service interfaces -- 10/100 Mbps and 1/10 Gigabit Ethernet (1,000/10,000 Mbps) -- for data connections directly into SONET/SDH/DWDM.  The modules will provide Ethernet add/drop and switching capabilities at each node.  Applications supported include native Ethernet LAN extension, Ethernet Internet access, and Ethernet router interconnection. 




IBM and Qwest in alliance to build Internet centers

Source: Digitalmass

IBM and telecommunications provider Qwest Communications International Inc. have entered into a $5 billion alliance to build and run 28 Internet data centers to house online operations of U.S. businesses.
  International Business Machines Corp.'s  Global Services division will receive $2.5 billion over seven years to build and provide support for the data centers.

In return, Qwest, which will own the data centers, will receive $2.5 billion from IBM to lease 25 percent of the space in each, making the computer giant an anchor tenant. The $2.5 billion also allows IBM to use Qwest's network.  Data centers are giant warehouses where computer servers and high-speed telecommunications connections create a nerve center for Web based business operations.  The two companies plan to lease space to businesses who want to run their own online operations, or they could manage Web sites on behalf of businesses, which is called Web hosting in industry jargon.

The alliance was nonexclusive, and IBM said it might eventually look to partner with other telecommunications companies in other regions.  Qwest said last fall it would house computer maker Hewlett-Packard Co.'s own ambitious Web business push in Qwest data centers.




Government rejects Microsoft offer, prepares for verdict

Source: Digitalmass

Government lawyers have concluded that an 11th-hour offer by the Microsoft Corp. to settle its antitrust case was inadequate, and they are preparing for the trial judge to deliver his verdict Tuesday, sources close to the lawsuit say.
  These sources, speaking on condition of anonymity, expressed skepticism Sunday that any late settlement would be successful, despite the four months of efforts by a federal appeals judge acting as mediator in Chicago.  U.S. District Judge Thomas Penfield Jackson, who has signaled that he will rule strongly against Microsoft, earlier told lawyers in a private meeting that he will deliver his ruling Tuesday unless there is progress in the settlement talks being overseen by Circuit Judge Richard Posner. Posner has demanded strict secrecy surround the negotiations.

Government lawyers spent much of the weekend reviewing Microsoft's latest offer, which published reports said included promises to separate the company's Internet browser software from its dominant Windows operating system. The proposal, faxed on Friday, was sufficiently complex that some of the Justice Department's top technical experts were called to evaluate it.




Stretching DSL difference

Source: Digitalmass

Now that Bell Atlantic says it has wired 40 percent of Massachusetts telephone lines to support high-speed digital subscriber line Internet access, thousands of would-be Net surfers are in for a big disappointment.
  It's not that the service can't be terrific, offering Net access as much as 50 to 250 times faster than dial-up modems. And it's not the torturous bureaucratic experiences consumers can encounter trying to get DSL installed, something Bell Atlantic says it is working hard to remedy. 

Rather, the problem is that thousands of Bay State Net users who crave faster speeds will find out they live in the wrong place.  In Bell Atlantic territory, DSL is promised to work only if you live within about 15,000 feet of a so-called central office equipped for the service. Normally that's a windowless brick building in your nearest downtown or town center with a Bell logo on the side. About half of Bell's 270 Massachusetts central offices now have the necessary equipment.  But even if your home is inside the nominal DSL zone, your line still may not qualify because there is some piece of obstructing hardware between you and the DSL-ready central office. Or your line may be in a cable bundle with too many other DSL lines or data lines and face interference.

Enter Elastic Networks, a new company spun off from Nortel Networks. Elastic is offering a system it says can overcome all those obstacles, extending the reach of DSL up to 21,000 feet or more and blasting through devices such as "bridge taps" and "wire gauge changes" that normally thwart the delivery of DSL.  The system, whose development included tests at the Boston Sheraton Hotel and the Seaport Hotel in South Boston, could also offer a cost-effective way to bring DSL into apartment buildings, hotels, and offices without needing a basement-to-roof rewiring job.

DSL works by adding electronic equipment to exploit vast amounts of capacity on existing, standard copper telephone lines that go unused by voice traffic, creating an "always on" link to the Net.  Up to 8,000 feet from a central office, Griffith said, the technology can deliver 4 megabits per second in both directions, which is expected to soon grow to 6 to 10 megabits.  At maximum current limits of about 21,000 feet, the service still delivers close to 400 kilobits per second, or nearly eight times more than a dial-up modem. And one beta-test participant in North Carolina, who lives 30,000 feet from the nearest central office, says he is getting 330 kilobits per second, Griffith said.

 


BreezeCOM opens at 167% above issue price

Source: iLocus

Israel-based BreezeCOM, manufacturer of wireless access products, opened at $35 a share - 167% above the issue price - at its Nasdaq debut om March 23rd today.  Trading under symbol BRZE, the company had earlier revised its issue price from $15 to $20 due to over subscription. BreezeCOM raised $100m thorough its IPO.  Most of BreezeCOM products use spread spectrum radio transmission, digital signal processing and wireless packet switching technology.

In the VoIP area, BreezeCOM produces wireless VoIP solutions. The company has teamed up with Cisco to design BreezePHONE, a wireless local loop (WLL) solution based on VoIP technology. In addition, BreezePHONE enables high speed wireless Internet Data access.  BreezeCOM has also partnership with SpectraLink in VoIP area.

The vendor has three main product lines: BreezeACCESS for service providers in licensed and unlicensed frequency bands, BreezeNET for wireless campus networks in unlicensed bands and BreezeLINK for point-to-point T1/E1 connectivity.

 


Qwest sale clears path to merger with US West

Source: Spectrum

Qwest Communications Corp., Denver, Colo., reported on 17 March that it had agreed to sell Touch America its long-distance business in the 14-state region that overlaps the local telephone business of US West, Denver, the Regional Bell Operating Company (BOC) with which it has agreed to merge. The sale was a condition of the U.S. Federal Communications Commission's approval of the merger. Touch America, the telecommunications subsidiary of the Montana Power Co., Butte, Mont., said it would acquire the in-region business–which services 250 000 customers and generates annual revenues of $300 million–for approximately $200 million. The sale will be completed later this year when the merger is finalized.



Microsoft's voice-recognition device cheered at conference

Source: Spectrum

Microsoft Corp. chairman Bill Gates' vision of advanced speech recognition was unveiled on 21 March at the company's seventh annual Latin America Enterprise Solutions Conference in Miami. Attendees witnessed the first public demonstration of MiPad, a device that blends voice recognition and pen input in a high-speed, wireless, Web-enabled device. The prototype showed off Microsoft's "Dr. Who" voice-activated interface technology that could end up in products including cellular phones, wrist watches, and palm-top computers. 

Using only clicks and voice commands, Microsoft's Steven VanRoekel called a meeting, invited a person, set a time, and designated a place. Then he told the device, "Forget it," and details of the meeting vanished from the conference room screen, to the cheers of the conference attendees. X.D. Huang, the senior researcher with the speech technology group at Microsoft Research, said this technology will likely end up in some type of Microsoft product, but would not give a timetable for its introduction.

 


IBM produces affordable supercomputer

Source: Spectrum

IBM Corp. reported on 22 March that it is providing researchers and developers with a new type of supercomputer that uses the Linux alternative operating system and has the computational power of the traditional IBM, Cray, and SGI supercomputers–power they previously could not afford. The Los Lobos computer system, which is actually a supercluster of 256 IBM Netfinity PC servers, will be used by the National Computational Science Alliance, a coalition of 50 academic, governmental, and private research entities that includes the University of New Mexico, Albuquerque, the system's eventual site. 

The servers, which are linked by special clustering software and high-speed networking hardware, will process 375 gigaflops (375 billion floating-point operations per second), which is enough for it to rank 24th among the worlds 500 fastest supercomputers. It will also offer about 2.5 terabytes of hard disk space, roughly the equivalent of that contained in 1250 average desktop computers. The Los Lobos system–the first of six such systems reported to be in the works–is perceived as an endorsement of the potential of Linux and the genesis of its use in a broader range of applications.

 


Cisco closes as world's most valuable company

Source: Teledotcom

Cisco Systems, the biggest maker of equipment that powers the Internet, closed on Friday with a higher stock market value than Microsoft, making it the most valuable company in the world.  Cisco ended the day with a market capitalization of $579.2 billion, slightly ahead of Microsoft's $578.2 billion. Shares of Cisco closed up 1 9/16 at a record 79 3/8, while Microsoft eased 3/16 to 111 11/16. Both stocks trade on the Nasdaq.  Stock in Cisco (stock: CSCO) has continued to climb steadily through the year, gaining one-third in value. Shares of computer-software giant Microsoft have languished amid concerns over the government's pending antitrust case, easing 10 percent from its peak.

Microsoft (stock: MSFT) stock jumped Thursday amid reports that the company was nearing a settlement of the case in which the government has charged it with abusing its monopoly position.  Some analysts see Microsoft being hampered by the terms of any upcoming settlement, and are starting to make Cisco their core holding among large capitalization technology stocks.

Microsoft, while still a strong generator of corporate profits, derives much of its income from desktop applications and operating systems. While the Internet has boosted demand for Microsoft's products, Cisco, whose routers carry most of the traffic, is seen as a bigger beneficiary of the Net's growth, and its earnings gains have far outpaced Microsoft's in recent quarters.

 


Internet cell phones? Ready, Set. . .Wait!

Source: Comsoc

Internet via wireless phones will not be truly functional for another five years, according to TeleChoice's Daniel Briere and Christine Heck, who serve as CEO and president, respectively. So far, wireless Internet services based on text-only messages are acceptable only for stock quotes, weather, e-mail, and news. Beyond such basic applications, the outlook is not very favorable, they say. Wireless end devices typically have about 12 lines of display space and very low data delivery rates, inhibiting true mobile surfing. Also, keypads are not conducive to typing words for instant messages. Third-generation services, meanwhile, are not expected to be fully available until about 2005. The adoption of cell phones with a host of new uses also poses problems of security and wireless intranet troubleshooting for corporations. But, inevitably, wireless will become a major force in dozens of arenas from Bluetooth-compatible appliances in homes to wireless handsets that allow video functions. However, anticipation of a wireless future should be tempered with reality. 

 


Adding bandwidth out in the country

Source: ZDnet


Municipality market watchers predict electric utilities will spend as much money on network build-outs as the entire competitive local exchange carrier (CLEC) industry. That's prompted vendors selling backbone gear to describe the market as "white-hot," and compelled carriers to come out with munifocused business models.

Structus Technologies announced on March 27th an acquisition from Marconi Communications of backbone switches with capacities of up to 10 gigabits per second. The iron goes into the core of a backbone Structus is building to enable municipalities to set themselves up as virtual Internet service providers (ISPs) and CLECs.

Start-up Structus has taken in private financing and money from Marconi, which has matched every dollar Structus has raised from angels with an undisclosed multiple.  Structus' backbone goes live April 1, interconnecting tier-two cities in the rural areas where the Covad Communications and America Onlines of the world don't dare tread. Even if other service providers were to compete with Structus, they would need to come to local electric municipalities with more than just wholesale dial-up; Structus' service bundle includes everything from back-office services, such as billing, to affinity marketing programs.

Munimarket insiders said there's huge demand for the services Structus is bringing into the countryside.  The motivation for electric utilities is often political: to attract business to the area. The long-term strategy is to steal business away from incumbent telephone and cable companies. Most utilities have realized that video services are the cash cows, Salter said. "Ninety percent of them get into the market to compete against the local cable TV provider."