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News Summaries
for the week ending September 20, 2000 

Last Week's News

Europe's first online prepaid debit card debuts
BCE and Thomson create media giant
House subcommittee votes to ban Internet fees
Juniper's new products aim to tame business network traffic
Sun serves up Java on mobile phones
BT reportedly to unveil partial float of wireless operations
Hitachi to set up U.S. optical parts unit along with Clarity's capital
Qwest lays off 13 000, moves into high-growth areas
EU trustbusters may give AOL-Time Warner bid the boot
Certicom readies wireless security product
Pagoo enters voice over broadband arena
Yipes optical IP VPN unveiled
IP Telephony vs. Circuit-Switched: the great debate
NetScout releases E-Business performance-management applications
Storability launches SAN service
Net2Phone and Cisco announces new company


Europe's first online prepaid debit card debuts
Source: Newsbytes

Global Internet Billing (GIB) has teamed with BritishInformation.com to launch a Web shopping portal with an allied prepaid debit card.  Known as BritishInformation.com, the Web site, and its prepaid debit card - branded Interactivcash - are claimed to be the first of their type in Europe.

The aim of the Interactivcash card, GIB says, is to allow e-tailers to reach into new markets and offer customers more used to cash a secure payment mechanism.  While the majority of the adult population in Western Europe, and the UK especially, have a debit or credit card, many remain worried about the issue of using their plastic online.  Coupled with the adults - and teenagers - without a plastic card, GIB says that Interactivcash will be able to build out its market presence quite quickly.

 

 

BCE and Thomson create media giant
Source: Angustel

BCE Inc, the Thomson Company, and the Woodbridge Company (the Thomson family's investment company) have agreed to combine resources in a $4.1-Billion media company. The new venture, owned 70.1% by BCE, will own the CTV television network and its associated specialty channels, the Globe and Mail, and the Sympatico-Lycos and Globe and Mail Web sites.

 

 

House subcommittee votes to ban Internet fees
Source: Cnet

In a surprise move, a House subcommittee voted to bar federal regulators from imposing any fees on Internet traffic, including voice services.  The bill to which the amendment is attached, which moved forward on a voice vote, has only a slim chance of becoming law in the waning days of this Congress. Still, a ban on fees would be a significant step by Congress to ensure that the decades-old regulatory structure that oversees other forms of communication, such as traditional phone service, would not be carried to the Internet.

The amendment could have ramifications beyond the Net, according to one subcommittee member. It "would deny the Federal Communications Commission the opportunity to impose fees on Internet telephony to support the Universal Service Fund," which ensures rural phone access, Rep. Rick Boucher, D-Va., said in an interview.  Boucher said the amendment is unnecessary. "There's no risk of a blanket transfer of legacy regulations" by the FCC to the Internet, he said.

The move came in the form of an amendment to a bill eliminating the fees Bell companies pay to competitors when transporting calls to Internet service providers. Lobbyists for the competitive phone companies--and members of the House Telecommunications Subcommittee on both sides of the aisle--had raised fears that eliminating that fee would lead to Internet service providers raising their rates for consumers.

 

 

Juniper's new products aim to tame business network traffic
Source: Cnet

Juniper Networks debuted two network devices that include high-end features but stray from the company's traditional Internet market, expanding on its network equipment focus.
  Juniper now is targeting the network "edge" with new routing technology at the point where private business connections for corporations intersect with the public Net. The edge router market has also been cornered by Cisco, but analysts view the market as ripe for a new competitor, given the success of recent entrants such as start-ups Riverstone Networks and Unisphere Networks.

Juniper is shipping two new devices, called the M5 and M10, which Juniper executives say are smaller, have more technology density, and are faster than the competition. Among the customers planning to use the new routing technology are Broadband Office, Verio and UUNet, according to the company.  Price tags for the new equipment start at $25,000.  Juniper executives said their strategy is to extend the expertise they have in Net core routing to other markets where their ISP customers have needs. Mitchell said Juniper is moving "up and down the food chain of router size."

 

 

Sun serves up Java on mobile phones
Source: Cnet

After years of programming, evangelism and corporate wrangling, Sun Microsystems and its business partners have created a standard for putting Sun's Java software into cell phones, the company announced on Sept. 19th.  The standard, called the mobile information device profile (MIDP), will be used in cell phones from Motorola, Nokia, LG Electronics, Nextel and NTT DoCoMo, Sun said. It will also be used in handhelds from Research in Motion, Sun said.

The services will allow cell phones to tout new information feeds or services. Tracking down the nearest Burger King over the Internet, playing games online or creating charts of daily stock performance are some of the possible applications, said Eric Chu, director of product marketing for Sun's consumer and embedded Java products.

 

 

BT reportedly to unveil partial float of wireless operations
Source:
iLocus

British Telecommunications PLC is expected to announce plans for a partial flotation of its wireless business before the end of the year in an effort to slash the company's growing debt burden, the Daily Telegraph said.  The news comes just a day after BT said it was in talks with American telecoms group AT&T about a merger of the two groups' business services operations.  One source familiar with the negotiations told the paper: "BT's wireless interests are going to be an integral part of whatever the company's got to do in the public capital markets."

BT has already said that it will announce by the end of the year how it will cut its debt.  The company is expected to do this through a combination of flotations and asset sales. A partial listing of the wireless business would go a long way to ease the company's debt burden.  The total wireless assets have been valued at around 40 bln stg, which compares with the company's market capitalisation of 51.8 bln stg.

 

 

Hitachi to set up U.S. optical parts unit along with Clarity's capital
Source: iLocus

Hitachi Ltd said it will establish an optical parts unit, OpNext Inc, in the U.S. and has agreed to permit the Clarity group to invest up to 450m in the unit.  Hitachi said it will spin off the optical parts division and include its operations under the Japanese unit of OpNext, which will handle optical parts for the telecom sector.  The company said the optical parts market is expected to grow by an average of 36 pct annually over the next five years, with the market expected to expand to 2.5 trln yen in 2003.

OpNext will start operations from Jan 1, it said.  The Clarity group is an investment group formed by Clarity Partners and the Marubeni group with the objective of investing in OpNext, it said.

 

 

Qwest lays off 13 000, moves into high-growth areas
Source: Spectrum

Qwest Communications International Inc., Denver, Colo., announced on 7 September that it plans to lay off some 13 000 workers as part of a move to focus the company. Qwest, which recently merged with the Baby Bell US West Communications Inc., wishes to concentrate on high-speed Internet and wireless services–areas that have experienced remarkable growth and generated huge profits. Qwest chief executive Joseph P. Nacchio referred to the layoffs as unfortunate, but said the company needed to be leaner and more entrepreneurial.

Qwest says it expects its high-speed Internet, wireless telephone, and Web hosting customer base to double by the end of 2001. Its 500 000 digital subscriber line and 1.6 million wireless customers are expected to generate about $1 billion in revenue. The company is also seeking government approval to offer long distance service in US West’s territory and is setting up a digital media company that will store, manage, and distribute digital content. The company also plans to sell 570 000 of US West’s local telephone access lines over the next year, and is considering the sale of the Baby Bell’s "yellow" pages business.

 

 

EU trustbusters may give AOL-Time Warner bid the boot
Source: Teledotcom

European regulators are reportedly leaning toward rejecting the merger between America Online and Time Warner, but the companies on Monday said the $123 billion merger is still on track to close in the fall.  A preliminary draft circulating among the European Commission (EC), the administrative arm of the European Union (EU), shows commissioners will veto the merger, which is now worth $123 billion, The Wall Street Journal online edition said Monday. AOL and Time Warner announced the merger in January, then worth $183 billion.  The companies said the draft is "a normal part of the process" and they are still on track "to close in the fall."

European officials have also indicated they will veto Time Warner's $20 billion acquisition of EMI Group PLC (London) without more restrictions.  In a separate but related application, the EU is considering Time Warner's purchase of EMI, a combination that will create one of the world's largest music publishing companies. EMI and Time Warner offered concessions Monday in their merger and have until Tuesday to come up with more remedies.

 

 

Certicom readies wireless security product
Source: Teledotcom

Certicom Corp. plans to start selling digital certificates for wireless devices Tuesday, continuing its push to deliver needed security in the emerging mobile commerce market.  The Certicom MobileTrust Certificate Authority uses elliptic-curve cryptography (ECC) in providing digital certificates used to authenticate the user of the handheld device to send or receive information or conduct transactions.  The product is the second wireless announcement from Certicom (stock: CERT) in three months. The Ontario company said in June that it would deliver in the fall a client for handhelds that enables secure, VPN connections.

Certicom's upcoming and unnamed VPN client will initially run on version 3.5 of the Palm OS, with support added later for Windows CE from Microsoft Inc. (stock: MSFT), Redmond, Wash., and EPOC OS from Symbian Ltd., London. The company is working to ensure interoperability with VPN server software from Cisco Systems Inc. (stock: CSCO), San Jose, Calif., and Nortel Networks Corp. (stock: NT), Brampton, Ontario.

Certicom MobileTrust Certificate Authority will cost $895 a year per server, plus between $5 and $20 per $895 a year per server, plus between $5 and $20 per client, depending on the level of security.

 

 

Pagoo enters voice over broadband arena
Source: Teledotcom

Pagoo hopes to stake its claim in what could become a booming voice over broadband (VoB) arena with trials slated for Europe and the U.S. late this year.  The San Francisco-based company gave a sneak peak of its solution to attendees of the Fall VON 2000 show in Atlanta.  For its demo, Pagoo.com Inc. used telephones plugged into a residential gateway to place and receive calls over IP, said spokeswoman Heidi Zuhl.

Pagoo will partner with DSL providers, CLECs, cable operators, and broadband resellers to deploy a variety of private-labeled Internet phone services to consumers within weeks.  Some said that by using broadband pipes, VoB might be able to offer better sound quality than existing voice over IP (VoIP) offerings in which people typically use a handset with their PC to place calls.  Pagoo's VoB offers a new interface that will make it easy to connect to telephone service. However, VoB players must address the issue of voice quality, Winther said.  Other big issues are distribution and customer support.

 

 

Yipes optical IP VPN unveiled
Source: Comsoc

Yipes Communications, a national service provider, has introduced a secure VPN as its latest service offering. Although the offering is similar to VPNs provided by other carriers, Yipes sets itself apart as far as infrastructure is concerned. Yipes is one of the most advanced of its peers, employing fiber optics in the metropolitan area, wide area, and for long-haul transport. Yipes' IP-based architecture allows for the use of native Ethernet to shift its customers' traffic onto the network, providing scalability and efficiency benefits. Ethernet also enables Yipes to provide bandwidth in 1 MB increments. The company also intends to differentiate itself in terms of service. They have established a customer support portal that allows users to monitor their usage and check network bandwidth and availability.

 

 

IP Telephony vs. Circuit-Switched: the great debate
Source: Comsoc

Although some cable operators support VoIP's potential, others believe circuit-switched voice will rule for some time. Circuit-switched voice has been tested, while IP telephony has not yet been firmly established. Regardless of which technology is used, cable operators are faced with the challenge of providing customers with packaged service that includes voice, data, video streaming, and video-on-demand on a single bill. The demand for bundled services will force providers to decide on circuit-switched or IP technology for cable telephony.

Cahners In-Stat analyst Mike Paxton believes North American operators are divided into those who believe circuit-switched technology must be deployed before IP telephony can be installed, and those who believe circuit-switched systems can be bypassed in favor of IP telephony exclusively. Paxton believes operators that use circuit-switched initially are gaining expertise in areas including billing, powering, and QoS. Some of the benefits of offering circuit-switched telephony include reliability, add-on features, and compatibility with domestic and international phone networks. Although IP telephony is largely untested, its promise has made it attractive to operators including Time Warner, which has begun testing IP in Portland, Maine. But the trial that is getting the most attention is Videotron's, in Quebec. The company is backing the first broad IP telephony trial in North America.

 

 

NetScout releases E-Business performance-management applications
Source: Commweb

Netscout has unveiled two new tools to its monitoring suite: the nGenius Application Service Level Manager and the nGenius Capacity Planner. NetScout has also simplified its nGenius Server, nGenius Traffic Monitor, and nGenius Performance Monitor by blending them into one application, the nGenius Real-Time Monitor.  Michael Szabados, NetScout's VP of marketing, says the company is trying to bring back "a degree of sanity" for network managers who want proactive control over performance issues.

Managing application operations is becoming critical as more businesses establish internal service-level agreements for acceptable performance. With nGenius Application Service Level Manager, network managers install agents on desktops that then emulate user actions and measure application-response times. This data is sent to the nGenius servers, allowing managers to construct real-time views and create reports for tracking application service levels.

By gathering application traffic data, the nGenius Capacity Planner profiles, predicts, and reports on network- and application-usage trends to help manage bandwidth consumption by applications and users. Both the Application Service Level Manager and Capacity Planner came from technology the company gained through its $60 million acquisition of privately held NextPoint Networks Inc.

 

 

Storability launches SAN service
Source: Commweb

Data is growing so fast today and the technology to manage it is so complex that most companies have a difficult time maintaining, managing, and protecting it all. Startup Storability Inc. is unveiling services that could help solve that problem.  Unlike storage service providers, which build storage infrastructures for customers remotely, Storability will go on-site to design and build storage area networks (SANs). Once the network is up and running, Storability will then manage the SAN remotely. Storability's AssuredStorage services are based on service-level agreements between vendor and customer. The vendor will recommend a system that fits a company's needs, oversee the installation, and then provide management and operations services around the clock. Pricing will be on a per-customer basis.

 

 

Net2Phone and Cisco announces new company
Source: itworldcanada

Internet telephone company Net2Phone Inc. announced on Sept. 18th that it intends to market network management software for Voice over Internet Protocol (VoIP) and other packet-based multimedia networks in a newly formed spin-off company, Adir Technologies Inc.   Cisco Systems Inc. owns a minority share in Adir, the company added. 

Howie Balter, chief executive officer of Net2Phone noted that the deal will lead to greater interoperability between Net2Phone products and networks built with Cisco technology. Cisco will market Adir's network management platform to its VoIP customers, Balter said. He added that Net2Phone expects to realize a substantial new source of revenue from software licensing fees, but probably not until the middle months of 2001.