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News Summaries
for the week ending  April 4, 2000 

Last Week's News

Judge says Microsoft broke the law 
Akamai launches premium streaming 
Internet2 still searches for its niche 
VPNs become key part of enterprise networks 
Equant: IP voice is ready for prime time 
Building better bills 
Windows 2000 server contains defect 
IPAXS introduces broadband telephony switch 
AT&T, BT, Yahoo!, and AOL in line for investment in Net2Phone 
Netscape releases new browser with hopes trimmed 
Verizon who? 
FCC signs off on wireless deals 
Telus to acquire QuebecTel 
Group appeals DVD crypto injunction 


Judge says Microsoft broke the law 
Source: ZDnet, Wired & Newsbytes

Saying that Microsoft "placed an oppressive thumb on the scale of competitive fortune," U.S. District Judge Thomas Penfield Jackson issued a scathing ruling on Monday, finding that the company violated federal and state antitrust laws.  Jackson's ruling came after settlement talks between the two sides broke down Saturday and U.S. Circuit Judge Richard Posner -- whom Jackson appointed to oversee the negotiations -- said the sides were too far apart to come to any agreement. The DOJ and 19 states attorneys general filed suit against Microsoft in May 1998.

In Monday's ruling, Jackson said Microsoft violated antitrust laws by using anti-competitive methods to maintain its market dominance and by monopolizing the Web browser market. Jackson also said Microsoft illegally tied its browser to Windows in an effort to thwart rival Netscape Communications Corp. However, the ruling sides with Microsoft on one point, saying the exclusive contracts the software giant struck with some companies were not necessarily illegal.

Nevertheless, Jackson lambasted Microsoft's conduct overall, saying "but only when the separate categories of conduct are viewed, as they should be, as a single well-coordinated course of action does the full extent of the violence that Microsoft has done to the competitive process reveal itself."  During a news conference immediately following the ruling, DOJ representatives cheered the decision. "No company, no matter how powerful, no matter how successful, can refuse to play by the rules," said Joel Klein, head of the DOJ's antitrust efforts.  However, Microsoft played down the contents of the document. "Today's ruling was not unexpected given the court's earlier findings," Microsoft spokesman Rick Miller said, adding that there are still many steps in the case. "We believe the legal system will ultimately rule in our favor and uphold our ability to develop innovative software products."

 

Akamai launches premium streaming
Source:  ZDnet


Akamai Technologies is set this week to offer its content distribution service customers a set of premium pay-per-view, e-commerce and direct marketing services.
  Under the banner Interactive Broadcast Platform, the new services (E-Broadcast, which is aimed at businesses, and FreeFlow Streaming, which is consumer-oriented) will be made available by July to customers who already stream their multimedia content via Akamai's virtual network.

Both sets of products are based on the company's FreeFlow technology, which was first announced in 1999 and has been gradually turned on over the past year. FreeFlow pushes multimedia streams to Akamai servers colocated with service providers worldwide.  Akamai's E-Broadcast service will offer large companies applications that will allow them to broadcast their chief executives' addresses and distribute multimedia training courses to their field offices. FreeFlow Streaming will offer consumer-oriented services, such as video and music distribution.

 

Internet2 still searches for its niche
Source:  Comsoc

Internet2, a high-speed network that serves as a testing environment for advanced applications, is now playing a role in the development of technologies such as multicasting, quality-of-service (QoS), and IP version 6. These technologies enable Internet2 applications such as teleimmersion, audio and video broadcasting, distance learning, and telemedicine. Part of the goal of Internet2 is to improve the design of high-bandwidth networks. For example, Internet2 researchers are working on the QBone initiative, which aims to implement QoS across campus networks and on Internet2's Abilene backbone. To prioritize traffic, QBone uses routers with priority tagging. End-to-end QoS for all the campuses connected to Abilene will be available later this year after Cisco provides a technology for Abilene's edge servers based on the DiffServ QoS protocol. 

Meanwhile, the traffic on Abilene is likely to grow, which will make the network more suitable for studying QoS. Another Internet2 project is multicasting, a technology that can broadcast audio, video, or other content to many recipients at the same time. Researchers are also working on IPv6, which offers a significantly larger address pool than does IPv4, which is used on today's commercial Internet. IPv6 allows for 128-bit addresses, compared with IPv4's 32 bits--an increase that will become more important in the future with the growth of IP-based phones and other devices contributing to a shortage of IP addresses. Although Internet2 is expected to remain a research network that is closed to the public, some observers estimate that applications developed on Internet2 will make their way to the commercial Internet within 18 months. However, most sources believe applications like teleimmersion will not be widespread for three to five years. 

 

VPNs become key part of enterprise networks
Source: Comsoc
 
Virtual private networks (VPNs) are becoming a critical part of corporate networks, since the technology facilitates remote network use, reduces costs, and simplifies management tasks. With VPN use rising, worldwide revenue from VPN hardware is expected to reach $2.2 billion by 2003, up from $303 million in 1998, says Infonetics Research. Companies fear that VPNs, which rely on the Internet, will result in security or performance problems, says Dataquest analyst Tim Smith, but some early adopters have found the opposite is true. 

For example, Cornell's Weill Medical College notes that its network performance improved after VPN implementation. In addition, VPNs can lower communications costs significantly by allowing remote users to access the network via a local call to an ISP rather than by dialing long-distance into the remote access server. The Nature Conservancy says it lowered telecom costs by about $200,000 a year by switching to a VPN. The investment required to implement a VPN is relatively small, and many companies have found that the technology pays for itself within months. Furthermore, VPNs make maintenance easier because a company can outsource its modems to an ISP rather than maintaining the modems and remote access servers. Another advantage of VPNs is that they make it easier for companies to provide remote users with access to their networks. Remote users often have trouble getting through the firewall and into the network. To get around this problem, St. Vincent Hospital in Birmingham, Ala., chose 3Com's PathBuilder S580 VPN switch, which handles authentication for remote users. VPNs can also be used for site-to-site connectivity and connecting branch offices. Despite the increasing popularity of VPNs, some obstacles to the technology still remain, such as ensuring that client software is installed correctly on remote systems and integrating VPNs into existing networks. 

 

Equant: IP voice is ready for prime time
Source: Comsoc

Equant is using technology from Cisco Systems to offer what it is touting as the first integrated voice and data service to operate over a single IP backbone. Equant and Cisco held a service demonstration on Equant's global IP network in early March. The company says it is prepared to offer the service, which includes voice, fax, and video streaming, in 84 cities across the globe. Equant also says it will guarantee a 99.5 percent completion rate for all Internet telephony calls placed on its network. The demonstration proved that high-quality voice is possible when bandwidth-intensive services like video are transmitted over the same connection, according to Cisco's Gary Mattevi. Cisco's 2600/3600 Multiservice platform is crucial to the integrated network. 

 

Building better bills
Source: Comsoc
 
Explosive growth of Internet services is expected within the telecommunications industry. The number of customers viewing their bills online is expected to rise from 9 percent in 2000 to 70 percent by 2005, while the number paying their telecom bills online will rise from 15 percent to 80 percent, according to a survey by Killen & Associates. Such extensive Internet use will save the telecom industry $23 billion in billing and customer care costs, says Killen. Telecom companies such as AT&T and ITC-DeltaCom are already providing customers with statements that combine billing information for local and long-distance service, data networks services, Internet service, and telephone equipment. 

The next step for telecoms is to harness electronic bill presentment and payment (EBPP) technology to provide customers with the same range of information online. Telecoms save money and improve customer relationships by combining all services and products onto one statement, and realize the same savings and improvements again by offering the statement via EBPP technology. ITC-DeltaCom's upcoming online EBPP system will enable customers to access call records in the method of their choice: the Internet, paper, diskette, or CD-ROM. ITC-Delta President Foster McDonald predicts that the firm's Web-enabled tools will be more popular than the traditional alternatives. In the competitive telecom industry, bill presentment and payment clearly is "becoming a critical part of the competitive telecom service provider's arsenal and is increasingly seen as a means of establishing clear market differentiation," says International Data analyst Iain Gillott. 

 

Windows 2000 server contains defect
Source: Teledotcom

A defect in Microsoft's Windows 2000 Server poses a potentially devastating threat to Internet service providers (ISPs), point-of-sale systems and small to midsize businesses.  The killer bug was identified by two independent sources. Upon a thorough examination of the product, the CRN Test Center has verified that the bug exists.

The defect prohibits administrators from adding more than 51 Internet protocol (IP) addresses to a Windows 2000 server configured as a domain controller. Doing so stops the server from authenticating users and prevents the administrative tools from working.  Among the first to identify this problem, Terabyte Computers (Boone, N.C.), a consulting firm specializing in networks, sought a solution from Microsoft but was unsuccessful.  After being alerted to the problem, Microsoft took five days to attempt to reproduce it and took even longer to admit there was a problem. Microsoft calls the defect an "issue," not a bug.

 

IPAXS introduces broadband telephony switch
Source: iLocus

IPAXS, a manufacturer of IP telephony systems and solutions, introduced next-gen local switch architecture called, Virtual Switch Platform (VSP), to support broadband local telephony application over any broadband access network including DSL, cable and wireless technologies.  VSP is a distributed architecture of call agents and gateways that support many local telephony features and Web-based self-provisioning and managing of telephony service.  This technology is currently undergoing field trials with carrier customers.

VSP architecture encompasses industry standards such as MGCP/SIP/H.323 and also incorporates enhanced service, real time, prepaid and post-paid network management and billing.  IPAXS also develops OmniAXS which creates a virtual telephone network suitable for local and long-distance network capable of carrying voice, data and fax traffic over IP networks.  OmniAXS Gateway Switches and Call Agents provide the necessary functions for number assignment, address translation, dynamic connection, authorization, debit card, monitoring for billing purposes and customer/port profiling and intelligent networking functions.

 

AT&T, BT, Yahoo!, and AOL in line for investment in Net2Phone
Source: iLocus

A consortium comprised of mainly AT&T and BT has announced it will acquire a 32 percent stake in Net2Phone for a cash investment of $1.4 billion. AT&T and Net2Phone plan to jointly develop new Internet voice applications for cable telephony.  AOL is also expected to increase its stake in the PC to Phone company.  Under terms of the agreement, the AT&T-led consortium will purchase 4m newly-issued Class A shares from Net2Phone at a price of $75 per share. Class A shares have two votes per share, while common shares have one vote per share.  Following the transaction, the consortium will have a 39 percent voting stake and a 32 percent economic stake in Net2Phone.  AT&T plans to invest $725 million for a 51 percent interest in the consortium. Other partners including AT&T's cable television programming unit Liberty Media and BT are expected to purchase the remaining partnership interest.

Also today Yahoo purchased a minority equity interest in Net2Phone. The investment of $150m represents more than a 5% interest in Net2Phone.  Under the terms of the agreement, Net2Phone has issued and sold Yahoo approximately 2.8m shares of Net2Phone's Common Stock in exchange for approximately 806,000 shares of Yahoo Common Stock, resulting in total consideration of $150m.

 

Netscape releases new browser with hopes trimmed
Source: Digitalmass

Netscape, makers of the Web-browsing software at the heart of the U.S. government's antitrust case against Microsoft Corp. is set to unveil a much-delayed upgrade that marks the sharply curtailed ambitions of the once pioneering program.  Netscape 6, the latest version of the program millions rely on as their primary window to the Internet, will be introduced at a trade show in Los Angeles by officials of America Online Inc., which acquired Netscape last year.

But the software which created the first Internet explosion and once held nearly a 90 percent market share, faces an uphill battle against Microsoft's Internet Explorer, which now ships in every Windows PC and holds nearly 70 percent of the market.  

For while the Netscape Web software has been plagued by delays in introducing new features, Microsoft has pumped out new versions that allow faster access to data and printing, simplify use of audio and video, and other improvements.  Netscape's new software is the result of a drawn-out effort known as the Mozilla open-source project -- a volunteer network of independent Internet programmers who banded together more than two years ago to keep Netscape browser development alive.  The company chose to forego the the release of the fifth generation of Netscape last summer, offering users of Netscape incremental changes to its Netscape Navigator 4.7 program.  Under America Online, the Netscape browser has been transformed from a single, monolithic product into a set of component technologies that are used not simply in Netscape 6 but have been licensed to a variety of other industry players.  Instead, Netscape developers have focused on making the new software more easily customizable and ready to run on software alternatives to the Microsoft Windows operating system that dominates on personal computers.

 

Verizon who?
Source: Cnet

Local phone giants Bell Atlantic and GTE will scrap their time-tested corporate names in favor of one their customers will be hard-pressed to find in any dictionary.  Bell Atlantic and GTE, which have agreed to merge, announced on Monday they plan to call their combined company "Verizon" once the merger gains federal regulatory approval.  Verizon will become the brand under which the combined company's consumer and business services will be marketed.  Bell Atlantic's wireless partnership with Vodafone AirTouch, which was formalized on April 3rd, will become the first property to use the new name. The joint venture will be called Verizon Wireless.

The companies said the new brand and logo, which will begin appearing on pay phones, service trucks, customer bills and other high-visibility locations shortly after the close of the deal, is intended to differentiate the combined firm from the other regional Bell local phone companies. Analysts say the name gives the combined firm a national brand, rather than a local one, when marketing new services.

 

FCC signs off on wireless deals
Source: Cnet

Consumers could soon see a number of competing choices for their nationwide wireless service, under a pair of deals approved by federal regulators.  The Federal Communications Commission's wireless and international bureaus have signed off on a partnership and merger which would create two new major players in the market for national wireless service.  The bureaus approved the transfer of wireless licenses from Bell Atlantic and Vodafone to Cellco Partnership, the business that will serve as the vehicle for the two companies' U.S. wireless partnership. 

In addition, the bureaus are permitting Aerial Communications to transfer its licenses to VoiceStream Wireless, positioning that business to have a major national presence as well.  Bureau approval is the final regulatory step, and a vote by the FCC commissioners is not required. FCC staff have determined that the deals do not present competitive concerns and instead will provide benefits to the public.

Bell Atlantic and Vodafone, by transferring their licenses to Cellco, a Bell Atlantic subsidiary, will create a nationwide wireless business with the ability to reach 90 percent of the United States, 49 of the top 50 wireless markets, and 209 million people.  Cellco will be the means for combining the two companies' cellular, PCS, paging and other U.S. wireless operations, once they have completed their pending partnership. The two companies have said they intend to initiate a national one-rate service to compete with existing wireless carriers.

 

Telus to acquire QuebecTel
Source: Angustel

Telus has agreed to buy 70% ownership of Rimouski-based QuébecTel from independent shareholders and GTE. The deal, which will eliminate foreign ownership restrictions that have limited QuébecTel's ability to expand beyond its franchise area, has been endorsed by QuébecTel's Board and by GTE.  The deal is subject to a vote by minority shareholders.

 

Group appeals DVD crypto injunction
Source: Newsbytes 

Continuing its California courtroom battle against the Digital Video Disk (DVD) industry over DVD encryption codes, the Electronic Frontier Foundation has appealed an injunction granted against more than 50 Web site operators in January.  Obtaining the injunction in a Santa Clara, Calif., Superior Court in late January was the DVD Copy Control Association (DVD-CCA), a not-for-profit, industry-backed organization that owns and licenses DVD encryption technology.

The DVD-CCA successfully argued that the defendants in the case - Web site operators who it alleges shared classified information about DVD encryption for the purpose of pirating DVD-viewing software - violated copyright laws and stole trade secrets.  For its part, foundation members contend the DVD protocols not only fail to meet the minimum standard for "trade secrets," but that the Web site postings are a clear example of constitutionally protected free speech.

Along those lines, the group is seeking the immediate removal of the injunction, primarily on First Amendment grounds, while continuing to fight the larger case, EFF spokesperson Tom McGuire told Newsbytes today.  Many of the attempts to break the DVD industry's Content Scrambling System (CSS) stemmed from the fact that no DVD viewing devices have been licensed for computers running Linux and other alternative operating systems, according to industry detractors. The tech-savvy Linux community responded by working to break the protocols and develop its own devices.  In its brief filed against the DVD-CCA complaint, the EFF wrote, "In this case, (the) plaintiff seeks an injunction of unprecedented breadth and intrusiveness on traditional free speech rights in order to defend a supposed trade secret that was never very secret at all. (The) plaintiff seeks prior restraint against hundreds of news sources on the Internet, claiming the right to enjoin discussion of their Content Scrambling System (CSS). That discussion centered on the results of efforts to break the weak security structures on which the CSS depends."  The EFF maintains an extensive library of information on the DVD-CCA case at.  The DVD-CCA maintains a Website at http://www.dvdcca.org/dvdcca/index.html , but that site contains no information about the California case.