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News Summaries
for the week ending October 11, 2000 

Last Week's News

Guangdong Mobile takes wraps off wireless network 
Dataquest - semiconductor biz up 37% in 2000 
Yahoo to launch free phone service 
Corning and Sycamore team for fiber-optic switches 
Cisco and Microsoft paid no federal income tax 
Four optical start-ups plan collaboration 
Siemens Optisphere tops DWDM record at 7.04 tbps per fiber 
Oni Systems introduces a longer reach optical transport system 
BT to break up 
Cisco introduces IPsec VPN platform solution 
Stepping Into the 5-GHz Spectrum 
Intel cancels cheap chip 
Cell phones enter a two-way street 
Artificial intelligence may heal computer networks 
MS pulls wraps off Exchange 2000 
Cisco unveils VPN gear 
NEC unveils first reflective LCD 


Guangdong Mobile takes wraps off wireless network
Source: Newsbytes

Chinese provincial mobile network operator, Guangdong Mobile Communication, has launched a high-speed wireless data service for customers in the cities of Guangzhou and Shenzhen.  The network is a GPRS (General Packet Radio Service) network based around equipment from Ericsson. It is being billed as China's largest "pre-commercial" GPRS network.  GPRS is a packet-based system that allows GSM mobile network users to access higher-speed wireless data communications and Web-based applications.  The services will be available to customers in the cities of Guangzhou and Shenzhen. Throughout its range, GMCC has over 10 million subscribers.

 

 

Dataquest - semiconductor biz up 37% in 2000
Source: Newsbytes

As semiconductor use expands beyond the personal computer, sales are expected to show double-digit growth over the next three years.  According to a report by Dataquest Inc., a division of the Gartner Group, the world semiconductor industry is headed for 2000 revenues of nearly $231 billion, up 37 percent over last year, the biggest jump since 1995.  In 2001, revenues will increase by 27 percent, followed by 14 percent growth in 2002, a 4.5 percent cyclical drop in 2003 and a nearly 6 percent rise in 2004. Sales are projected to exceed $339 billion in 2004, slightly more than twice last year's total of $169 billion.

Demand for new semiconductor applications - cell phones, handhelds, game consoles, set-top boxes and other devices - is the chief driver of sales growth, the report said. This year's growth is seen in all categories - logic (36 percent), analog (27 percent), discrete (25 percent) and optical (31 percent).

With shortages and high capacity for flash, microprocessors (MPUs) and some DRAM architectures, near-term spot pricing is reacting to inventory building and not part of the overall industry supply/demand factor, analyst Mark Giudici said. "Stronger demand and some product allocation in late 2000 will result in higher prices for DRAM, flash and some SRAM densities has forced lead times out beyond 20 weeks," he said.  Worldwide semiconductor sales hit a record high of $17.3 billion in July, up 50 percent from July 1999, according to the Semiconductor Industry Association (SIA). Regionally, the Asia-Pacific market rose 57 percent, Japan was up 52 percent, Europe was up 46.5 percent and North and South America increased by 46 percent, SIA said.

 

 

Yahoo to launch free phone service
Source: Cnet

Flexing its muscle on a new Internet battlefield, Yahoo is launching a free telephone service that enables users to call and have their email, news and other information read to them.  The initiative being to be announced Tuesday Oct. 10, pits Yahoo against America Online and some high-profile startups in a race to "voice-enable" the Web so people who are not near a computer can still get online information.  The urgency to introduce listening-based Web access was evident in Yahoo's decision to rollout its telephone portal without any of the speech-recognition or voice-activation features offered by Tellme and BeVocal, pioneers of the new niche.

In other words, users of the new Yahoo portal will for now be required to enter numbers on a touch-tone telephone keypad to select the information they want to hear.  AOL has yet to add a telephone-based version of its Internet service, but recently acquired a start-up voice portal named Quack and owns a stake in SpeechWorks, a developer of speech-recognition technology.

While Yahoo and AOL weren't first to this arena, both are confident that their millions of loyal users will opt for the consistency of using the same service provider to access information by computer, phone or wireless device.  One major advantage AOL and Yahoo! boast is that their users already have online profiles with personally tailored information preferences, making it unnecessary for those people to re-create everything from scratch for the telephone versions of those services.

 

 

Corning and Sycamore team for fiber-optic switches
Source: Cnet

Corning, the giant maker of glass used in telecommunications networks, said it will develop more efficient phone switches with fiber-optic equipment maker Sycamore Networks.  The companies didn't disclose terms of the agreement or say when Sycamore would begin selling the new switches to telecommunications companies.  If the project is successful, Sycamore will buy parts from Corning to make the gear, Corning spokesman John Knight said. The switches will use microscopic mirrors to direct information sent across networks on beams of light.

Sycamore and rival equipment makers are racing to develop switches that let information be redirected through fiber-optic networks without converting light into electronic signals. By avoiding this conversion, phone companies can cut costs and speed up their networks.  Corning already counts Chelmsford, Massachusetts-based Sycamore as a customer, Knight said. Corning is based in Corning, New York.

 

 

Cisco and Microsoft paid no federal income tax
Source: Cnet

Cisco Systems and Microsoft, two of the nation's richest companies, capitalized on the windfall profits of their employees to wipe out their federal income tax bills last year.  San Jose, Calif.-based Cisco, the second-most valuable U.S. company, behind General Electric, eliminated a $1.8 billion income tax liability by deducting the gains that its employees realized from stock options during the company's most recent fiscal year.

Redmond, Wash.-based Microsoft, recorded a $5.5 billion tax benefit by deducting its employees' profits from stock options during its last fiscal year. Microsoft reported federal and state tax liabilities of $4.74 billion in the year ending June 30.  Cisco earned $2.7 billion in its last fiscal year ending July 29. Microsoft's profit totaled $9.4 billion.  The San Francisco Chronicle detailed the tax relief received by both Cisco and Microsoft in Monday's editions, based on recently released financial statements.  Corporations are allowed to deduct the gains of their workers' stock options because the profits are regarded as employee compensation, just like regular wages.  Nevertheless, even a leading antitax group criticized the practice that allowed Cisco, a leading maker of computer-networking equipment, to skirt taxes.  "For a company that makes that kind of money not to pay taxes raises serious tax-equity questions," said Jon Coupal, president of the Howard Jarvis Taxpayers Association.

 

 

Four optical start-ups plan collaboration
Source: Cnet

A new networking incubator will add another wrinkle to the optical networking investment craze with the announcment of a quartet of newly funded start-ups that plan to create technologies that complement one another.  The Iris Group's approach is based on the vision of Michael Zadikian and Zareh Baghdasarian, two co-founders of Monterey Networks. Monterey, an early optical start-up, was acquired by Cisco Systems last year in a $500 million deal.  What is novel about the Iris Group's approach is that all of the funded start-ups will adhere to a common set of networking concepts to build optical equipment that can work together and can take advantage of common technologies, Zadikian said. Iris Labs will provide a common set of network software for the start-ups.

The Iris Group has amassed $100 million in investments from a variety of venture capital firms such as the Mayfield Fund and Sevin Rosen Funds, among others. As a result, Iris Group's research arm, Iris Labs, garnered $7.5 million; Metera Networks got $24 million in initial funding; and Latus Lightworks reaped a $28.1 million windfall. A fourth start-up, Coree Networks, is expected to close initial funding soon.  Iris Group members will remain legally separate entities, according to the company.  Though details are sparse, all the equipment start-ups will target various niches in optical networking, a market that has received unprecedented funding in recent years as telecommunications companies look to upgrade their networks with faster and more versatile technologies.  

 

 

Siemens Optisphere tops DWDM record at 7.04 tbps per fiber
Source: Convergedigest

Optisphere Networks, a subsidiary of Siemens Information and Communication Networks, claimed a new DWDM capacity record by transmitting 7.04 Tbps over a single fiber.  The laboratory demonstration carried 176 wavelengths at 40 Gbps with 50 GHz spacing over 50km over fiber.  The company said it used a special bi-directional transmission system to ensure a spectral efficiency of 0.8 bit/s per Hz bandwidth.  

 

 

Oni Systems introduces a longer reach optical transport system
Source: Convergedigest

ONI Systems introduced a new regional optical transport platform designed to transmit signals up to 640 km between source and destination without electrical regeneration.  The new ONLINE11000 chassis could be deployed in rings ranging from a few hundred kilometers to more than 1,000 km. The new platform shares the line cards, client interfaces and management system as ONI System's existing metro core and metro access solutions.  It features full optical add/drop capabilities, line-based optical or path-based rerouting of channels in the event of optical fiber failure, and support for 33 protected and 66 unprotected wavelengths.  Client interfaces include OC3, OC12, OC48, (OC192 expected Q4 2000), Gigabit Ethernet, Fibre Channel and ESCON.  

 

 

BT to break up
Source: iLocus

British Telecommunications is to announce a break-up to help maintain its innovative drive in the increasingly competitive telecoms market, reported The Sunday Times and Sunday Business newspapers in the UK.  The move has been catalysed by slumping share price of the company.  The UK incumbent plans to separate its domestic business from its faster-growing Internet and mobile business. The break-up is expected to bring to market start-up ASPs within BT apart from some already established units.  IP telephony user within the group, BT Ignite, was created in July 2000, to deliver international broadband solutions to corporate and wholesale customers. BT Ignite will deploy Clarent equipment.

 

 

Cisco introduces IPsec VPN platform solution
Source: iLocus

Cisco announced the completion of network-based IPsec VPN solution, which connects remote users and branches to their corporate networks and business partners across the Internet.  According to Cisco, the new product includes the first IPsec VPN solutions designed specifically for network-based IP VPN deployments, which allow for both remote access and site-to-site access.  With an increasing number of business using the public Internet as part of their network infrastructure, IP VPNs have become an important alternative to leased lines and modem access.

 

 

Stepping Into the 5-GHz Spectrum
Sources: iLocus and Comsoc

Something exciting is happening with wireless LANs. By the middle of next year, they're going to get faster -- a lot faster, according to the Sept. 18 InfoWorld.com and TechWeb News.   Radiata Inc. and Atheros Communications have each announced plans to produce $35 chipsets for IEEE 802.11a, the new LAN wireless standard -- chipsets that will raise the data rate ante from 11-Mbit/s to 54-Mbit/s. Atheros says the rate could even go as high as 72-Mbit/s when the chip is in "turbo mode."

Other good news about the 802.11a LAN: It will operate in the 5-GHz spectrum instead of the crowded 2.4-GHz spectrum. Good news to anyone who would like to use Bluetooth and a wireless LAN at the same time. (Currently, Bluetooth and 802.11b LANs don't work well together because they have to share the 2.4-GHz spectrum.)   Before we know it, multimedia and new high-bandwidth applications will become as much of a second thought as viewing Web pages is now. 

 

 

Intel cancels cheap chip
Source: Spectrum

Intel Corp., Santa Clara, Calif., confirmed on 1 October that, because of recurring design flaws, it will discontinue production of a low-end processor chip aimed at making it possible for PC makers to introduce computers that cost less than $600. The chip, called Timna, had problems with its memory translator hub (MTH), the component that would allow it to work in concert with the Rambus memory it was designed for or any other standard memory technology. It was discovered in May that under certain conditions, the MTH would cause computers to crash, prompting a recall of nearly a million chipsets and a delay (until early 2001) of their inclusion in PCs. Further delays related to the component’s compatibility with its companion microprocessor, combined with the reduced cost of other components, have conspired to lower demand for the chip as PC makers grew to believe they can make sub-$600 computers without it.

 

 

Cell phones enter a two-way street
Source: Comsoc

Researchers at Texas Instruments and Purdue University are supporting the placement of two antennas on mobile phones. They based their decision on interference a user is likely to encounter when using CDMA services. Reflections from buildings can also contribute to interference. Interference happens when a user is moved from one cell to another cell, because both cells for a moment use the identical frequency. A dual antenna system would allow the phone to have a cleaner transition from cell to cell because it would be able to reject one of the competing frequency bands. This would in turn cancel interference. Michael Zoltowski, computer-engineering professor at Purdue University, says the crucial challenge for mobile phone designers is to place an additional antenna on a phone that has been constructed to fit into a person's pocket. So instead, Zoltowski proposes using a microchip placed in the mobile phone's body as an antenna. However, Zoltowski admits that circuit sizes need to become smaller before such an option is convenient. Currently, NTT DoCoMo is the sole company developing a dual-antenna phone. 

 

 

Artificial intelligence may heal computer networks
Source: Comsoc

A team of researchers at the University of North Texas has developed a software program that uses intelligent mobile agents (IMAs) to route data through networks and to prevent them from clogging in one area. The researchers, led by Dr. Armin Mikler, designed the IMAs from artificial-intelligence software, so each agent has the ability to recognize its task, adapt to the situation, and communicate what it is doing to others. When it has finished, it combines with other agents, or in effect destroys itself. Mikler says the software could be key in reducing the workload of systems managers, who do not have the time or workforce necessary to oversee all of the data flowing through their networks. Researcher Cliff Cozzolino says the IMAs' mobility is key to their functionality. "The basic concept is not novel, but what we are doing is moving those applications into a level that hasn't been used before," says Cozzolino. "We are taking the mobility issue and applying it to artificial intelligence." Although the researchers are testing the program now and hoping to find corporate sponsorship, they admit they have to solve the software's pressing security problems. IMAs move in much the same way as a virus, and if malicious code entered the system, it would be devastating. 

 

 

MS pulls wraps off Exchange 2000
Source: ZDnet

Microsoft Corp. on Tuesday, October 9 finally launched its long-awaited Exchange 2000 messaging and collaboration platform, at the same time introducing, in typical Microsoft style, a host of features and capabilities that won't be available until next year.  The launch, which took place at the Exchange Collaboration and Solutions conference here amid rock music and pyrotechnics, provided few surprises, except for the introduction of a new Mobile Information Server that will appear sometime in the first half of 2001.  The MIS will give users access to their Exchange e-mail, contacts, tasks, and calendar functions on any web-enabled mobile device. The server will also enable users to receive instant notifications of selected events on their wireless devices.  The product will also ship with a software development kit. It is in limited beta right now and will move into a larger test phase later this fall, Microsoft officials said.

 

 

Cisco unveils VPN gear
Source: Commweb

Cisco Systems has introduced a batch of networking equipment aimed at helping companies sell enhanced dataservices to businesses. Of greatest interest to companies is the new Cisco VPN 5000 concentrator and client, which will let providers sell outsourced, network-based virtual private network services to businesses that don't want to build and manage their own VPNs.

The VPN 5000 "allows a carrier to offer IP Sec-based VPN services without having to deploy hardware at every site," says Ron Westfall, an analyst at Current Analysis. Shipping now, the VPN 5000 costs $10 for each of the many thousands of IP sessions supported by each of the devices. It supports as many as 40,000 IP Sec sessions, and it enables throughput of 768 Mbps of triple-DES traffic, Cisco execs say.  

 

 

NEC unveils first reflective LCD
Source: itworldcanada

NEC Corp. has unveiled its first example of a new type of LCD (liquid crystal display) that holds out the prospect of much longer battery life for portable products fitted with the screen.  The new LCD is an active matrix TFT (thin film transistor) reflective type, which means it uses reflected ambient light rather than an energy-guzzling backlight to illuminate the screen. The use of ambient light can impose some limitations on its use: it cannot be used in dark places for example, but this first commercial product reflects around 40 percent of the light falling on the screen — much better than previous prototypes and good enough to make it suitable for use both in- and outdoors.

NEC says the screen consumes 40 milliwatts in use — much lower than an equivalent three-inch backlit display that would consume in the order of one to two watts.  Targeting the portable device market, where power consumption is one of the most important factors when engineers are choosing what components to use, the new screen is a 3.8-inch amorphous silicon TFT model. It has a resolution of 320 x 240 pixels and can show up to 260,000 colors.