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News Summaries
for the week ending October 25, 2000 

Last Week's News

GE to acquire Honeywell for US$45 billion 
SecureLogix offers TeleWall support 
Intel sets Pentium 4 path to 2GHz 
Red-hot demand seen to fuel optical results 
Here comes wireless multimedia 
Calling all data 
G.shdsl: new solution for businesses 
MCK Shows Interest in Voice Platform 
President orders clearing room for third-generation wireless 
Radware introduces VoIP switching in Web Server Director 
DSL companies consolidate as markets tighten 
Telefonica Moviles selects Motorola for 3rd generation network 
DSL provider Riptide goes bankrupt 
CIRA publishes .ca domain rules 
Agilent unveils optical routing and switching test system 

    


GE to acquire Honeywell for US$45 billion
Source: itworldcanada

General Electric
has agreed to acquire Honeywell International in a tax-free merger valued at US$45 billion plus debt — the largest acquisition in GE's corporate history.  The deal, which has been agreed by the boards of both companies, would see Honeywell shareholders receive 1.055 shares of GE stock for each share they own in Honeywell, GE said in a statement. The deal is to be completed in early 2001; GE said it expects the acquisition to lead to double-digit growth in company earnings per share in the first full year, excluding any one-time charges.

New Jersey-based Honeywell is a diversified technology and manufacturing company with strengths in business areas from avionics and power systems to automated control systems and chemicals and materials. The company operates in 95 countries and employs 120,000 people although is dwarfed by GE which employs 340,000 people in more than 100 countries and has anticipated current year revenues of US$130 billion — around six times those of Honeywell.

 

 

SecureLogix offers TeleWall support
Source: Commweb

SecureLogix is offering the TeleWall monitoring service to support its TeleWall firewall for telephone lines, which will allow a centralized assessment of telephone line traffic and comprehensive network security recommendations. SecureLogix consultants will monitor corporate telephone networks for a pre-determined period of time, providing weekly status and summary reports. At the conclusion of this period, reports will be provided to the client detailing resource utilization and security recommendations.

The TeleWall system consists of client software, server software, and appliances that connect to T1, ISDN-PRI or analog telephone lines. The appliances monitor line traffic in real-time, identify call types as voice, data or fax, and communicate with a central server via an optional encrypted TCP-IP connection.  The TeleWall monitoring service gives organizations a detailed understanding of their telephone networks. Security concerns such as the detection and blocking of unauthorized modem connections can be addressed at the same time as resource utilization questions.  It also provides tailored reports describing an organization's telephone network usage. The reports can be used to verify telephone bills and to confirm that an organization is receiving all the telephony services for which it has paid. SecureLogix consultants can also help an organization with potential migration plans for Voice over Internet Protocol using the data gathered during the period the services were monitored.

 

 

Intel sets Pentium 4 path to 2GHz
Source: ZDnet

Expect Intel Corp. to pump out more megahertz as it attempts to get its processors back on track next year.  The chip maker plans to launch the Pentium 4 next month, then push the chip's clock speed beyond 2GHz by the middle of 2001. No small task for a company that's seen its last year marred by such gaffes as manufacturing-related chip shortages, 820 chip set problems, and Pentium III 1.13GHz recall.  Rival Advanced Micro Devices Inc., meanwhile, has pulled squarely into the desktop chip speed lead.

According to sources, Intel is hoping to put those problems behind with the Pentium 4, now slated for a Nov. 20 launch after 850 chip set problems caused a month-long delay.  Intel plans to introduce the Pentium 4 at 1.4GHz and 1.5GHz, before rapidly ramping clock speeds, sources said. By the first quarter of 2001, Intel intends to be shipping 1.7GHz or faster Pentium 4 chips, and, by the second quarter, Pentium 4s approaching 2GHz. If Intel stays on track with its current plans, Pentium 4 will exceed 2GHz by the second half of next year.

 

 

Red-hot demand seen to fuel optical results
Source: ZDii

 
Recent market-beating results from fiber-optic component makers bode well for the sector's performance this quarter, but analysts say they will scrutinize industry leader JDS Uniphase Corp. numbers on Thursday to determine the impact of wilting demand from Lucent Technologies Inc.  JDS Uniphase, the world's largest supplier of fiber-optic components and modules that boost the capacity and speed of optical networks, is expected to meet or slightly better consensus estimates in its first quarter.

On average, 27 brokers polled by First Call/Thomson Financial expect sales of $755 million and net adjusted earnings of 16 cents per share.  Wall Street's radar will be tuned for any fallout from a 5 percent decline in optical network sales at Lucent, the world's No. 1 telecommunications equipment maker and JDS Uniphase's largest customer.  ``The number one issue that people are going to be looking at is what happens to the Lucent business,'' said Kevin Slocum, an optical analyst at Wit SoundView.  In JDS Uniphase's last quarter, Lucent represented 20-21 percent of sales, and Nortel Networks about 16 percent.

Lucent, which plans to report its fourth quarter on Monday, one day ahead of its earlier schedule, has warned it will fall short of profit estimates partly due to a drop in optical networking system sales. Lucent also said on Monday it ousted chief executive Rich McGinn and slashed its outlook for the first quarter of 2001.  An insatiable appetite for the components that go into those networks is expected to compensate for any lull in Lucent orders this quarter, which Slocum said could slip as low as 13 to 14 percent of JDS Uniphase's revenue.

 

 

Here comes wireless multimedia
Source: Comsoc

Wireless multimedia has the potential to bring wireless standards together. The differing qualities of wireless multimedia as opposed to wired multimedia might make the technology more suitable for a standards-based approach. The MPEG4 video compression standard, which was created in the spring of 1999, may become the digital video standard for wireless multimedia.  The standard was originally developed for transmitting direct-broadcast satellite and digital TV signals. According to Steven Burke, chief business officer of PacketVideo Corporation, MPEG4 is the first digital standard that has been created for two-way communication. Burke wonders whether the industry can select a common wireless streaming protocol for MPEG4. In hopes of adopting a common industry standard, PacketVideo has pressured the Wireless Multimedia Forum (WMMF) to evaluate potential standards. The WMMF is assessing a multitude of potential standards, including Real-Time Transport Protocol and Real-Time Streaming Protocol. MPEG4 has improved compression over its predecessor MPEG2.  MPEG4 may be a better choice as an industry standard since some wireless operators have already begun constructing wireless networks to support MPEG2. 

But any choice of a global standard by the WMMF must also be backed by the acceptance of the standard by at least two dominant wireless interfaces, such as GSM or CDMA. PacketVideo President Jim Brailen predicts that carriers will invest more in infrastructure improvements to their networks to ensure the efficient transmission of such services as multimedia.  Brailen is opposed to using gateways or transcoding for transmitting multimedia over a 2.5G Network. He notes that gateways can slow down processing. 

 

 

Calling all data
Source: Comsoc

Vendors are developing a new type of middleware tool to simplify data sharing among incompatible databases. The new process, called data cataloging, allows users to quickly extract any data from any database without using a data warehouse--a function that is in high demand as companies begin to buy and sell online.  IBM is developing Garlic, a middleware technology composed of "wrappers" that describe the data in the remote database, translate commands between the query engine and target databases, and help the query engine find the quickest way to complete the query. 

Garlic is currently offered in version 7 of IBM's DB2 database and version 2 of its DataJoiner database connectivity software.  Within DB2, IBM currently provides wrappers only for DB2 and Oracle, while DataJoiner users can view several other relational databases.  IBM plans to add more data access capabilities to DB2 in the product's next major release, according to Laura Haas, a research manager at IBM's Almaden Research Center. Other emerging data cataloguing tools include Metagon Technologies' DQbroker and Attunity Connect from Attunity. 

 

 

G.shdsl: new solution for businesses
Source: Comsoc

An ITU specification has been developed that offers several voice and data channels over one twisted pair wire. Such a specification could lead to advanced services for small and midsize enterprises. G.shdsl (single pair high bit rate DSL) is a developing standard for symmetric transmission at rates between 192 Kbps and 2.3 Mbps. In addition, the service's reach of 20,000 feet enables two-wire transmissions, which can double the service's data rate. G.shdsl also permits the use of repeaters in the local loop, pushing the transmission reach to 50,000 feet. Extending reach is important considering that restrictions on reach substantially reduce the potential DSL subscriber base. As little as a 5000-foot expansion in reach allows 91 percent more customer area to be covered, according to Mitchell Khan, symmetric DSL vice president for chipset supplier Verata.  Pat Hurley, an analyst with TeleChoice said DSL equipment vendors often say their offerings can extend as far as 17,000 feet from the central office.  But he said the typical carrier assumption is 10,000 feet.  Several factors impact DSL transmission reach, such as the quality and kind of copper. But G.shdsl can adapt to such factors. 

 

 

MCK Shows Interest in Voice Platform
Source: Teledotcom

Remote voice products developer MCK Communications Inc. is trying to make a big dent in the PBX market.  MCK unveiled its PBXgateway II this week, an upgrade to a previous version.  The PBX, which costs $8,995, is a remote voice product that is Internet protocol-ready and allows PBX phones to be extended over a variety of network types.  In one example, a company can customize business applications from voice-specific applications that are associated with voice systems, such as call forwarding and unified messaging.

PBX serves as the next-generation platform for the company, said Don Jennings, spokesman at MCK.  "It can also have 12 or 24 ports run on it," he added.  A single PBXgateway II can support all MCK's EXTender software, including the new Mobile EXTender that stretches PBX dial tone and functionality to cellular or remote touch-tone phones.  Gateway II hardware also supports proprietary digital sets over an extended network, such as analog ISDN, digital subscriber line (DSL) and T1/E1 frame relay, and cable.  The PBXgateway II is designed to help companies function more cost-effectively by allowing businesses of all sizes to grant access to central networks.  PBX functionality supported on non-PBX phones is a great feature, said Paul Johnson, analyst at Robertson Stephens.

 

 

President orders clearing room for third-generation wireless
Source: Spectrum

U.S. President Bill Clinton ordered a study to identify a portion of spectrum that can be cleared for use in transmitting wireless data and to determine how best to reallocate it. The aim is to make room for third-generation, or 3G, wireless applications. In response to complaints from telecommunications companies that there is not enough useful spectrum available to roll out the advanced services being eyed in Britain and Germany–where recent auctions of spectrum licenses made the path to the third generation clear (and provided a windfall for the countries’ treasuries), the government is considering clearing either of two bands of frequencies.

Frequencies between 1755 and 1860 MHz, currently used by the U.S. Department of Defense, or those between 2500 and 2690, which are used by commercial carriers like WorldCom Inc, and Sprint Corp., would be auctioned off. The order set the end date for the auctions at 30 September 2002. The U.S. Federal Communications Commission will oversee the reallocation, working with the private companies and other government agencies to find them homes at other locations on the spectrum.

 

 

Radware introduces VoIP switching in Web Server Director
Source: iLocus

Radware, a provider of intelligent traffic management (ITM) solutions, has introduced a VoIP module in its Web Server Director (WSD) product. This module strengthens Radware's application switching technology.  Supporting the standard H.323 protocol, this new module provides availability and traffic management for gatekeepers and gateways.  Radware's VoIP module enables the operation of a large, heavily accessed H.323 server farm with a single virtual IP address by using an advanced sharing algorithm. This permits VoIP systems to ensure service availability and quality.

Capitalizing on its routing capabilities, the VoIP module distributes traffic to any locally or remotely connected H.323 entity. Providing full fault tolerance, global load balancing redirects the users' requests to the nearest H.323 entity, ensuring the fast VoIP service.  The Radware VoIP module can handle from 200 calls simultaneously-ideal for enterprises and corporations-up to 100,000 calls simultaneously-suited for large ISPs and telecommunication carriers.

 

 

DSL companies consolidate as markets tighten
Source:  Cnet

Recent earnings disappointments from Covad Communications and Copper Mountain Networks and the consequent market setbacks experienced by these firms and related DSL companies demonstrate that the communications sector is being affected by some of the same market dynamics that are influencing dot-com firms.  Like dot-com firms, DSL companies have until recently been riding high on "new economy" market fervor. However, instead of the general e-business futures that dot-coms were relying on, DSL companies are riding the promise of high-speed connectivity to small sites and homes.
  Now, like the dot-coms, they are facing hard times as the market loses patience with companies that show no sign of making money.

DSL service providers face several challenges. First, they must build out infrastructure and provision through any incumbent local providers to reach customers. Second, in the consumer marketplace, they must compete with cable companies, which have a huge lead in the number of consumers signed up for high-speed services. Finally, in the potentially much more lucrative business marketplace, DSL providers must beat incumbent telecom companies to the branding and pricing punch to win the small-office connectivity market.  DSL equipment providers must continue to simplify provisioning while driving down hardware prices to enable the DSL service providers. In the case of Copper Mountain, it is having trouble driving the market connections and leverage of its larger competitors, and is gradually being squeezed out of the market.

In the interim, Covad and several other DSL providers are relying on incremental revenue from Internet service providers (ISPs). These ISPs pay Covad and other DSL providers to provide Internet users with higher-speed services. Unfortunately, smaller ISPs are going through the same problems raising capital and paying their bills as the rest of the telecommunications and dot-com sectors. That is why Covad now expects to have to write off about $16 million in back bills owed by ISP customers.

The best situation for users would be for both the DSL and cable companies to succeed and compete on price. However, both sets of companies are shortsighted. Wall Street's opinion of DSL companies is swinging to the negative. Cable companies have been through this pendulum swing numerous times, and are likely to go through another phase when they drive profitability by maximizing the number of users on a shared set of cable modems instead of upgrading capacities, leading to performance complaints and another Wall Street backlash.  In reality, neither industry is as good or as bad as these pendulum swings would indicate, leading to more consolidation opportunities for the larger players (e.g., big telecom companies) that may have fallen behind technically.

 

 

Telefonica Moviles selects Motorola for 3rd generation network
Source: Businesswire

The leading Spanish GSM operator Telefonica Moviles has announced the participation of Motorola in the launch deployment of its third generation (3G) network in Spain. Commercial service is scheduled for August 2001. It is the second 3G announcement that Motorola has made since Oct. 17.  Telefonica has also awarded Motorola the contract to supply General Packet Radio Service (GPRS) high-speed mobile data services on the Movistar GSM network. Commercial launch of the GPRS core network, enabled by Motorola and strategic alliance partner Cisco Systems, Inc., is expected by the end of this year.  

The European member of the IMT2000 family of third generation (3G) cellular mobile standards is known as UMTS - Universal Mobile Telecommunications System.  The introduction of UMTS will enable Telefonica's customers to enjoy interactive services delivered to their 3G terminal of choice whenever, wherever and however required. Combining voice, video and data, 3G technologies will transform the Internet into a true mobile resource.  Motorola, through its strategic alliance with Cisco, is developing a common, IP-based architecture designed to integrate voice, data and multimedia communications networks.  

The awards further strengthen the successful partnership between Telefonica and Motorola. Motorola has supplied Telefonica's mobile network solutions since 1990. This year the two companies have already announced a contract for the first nationwide TETRA infrastructure contract for commercial deployment in Spain and the establishment of a Joint Applications Development Centre in Spain to facilitate the commercial availability of consumer applications for both GPRS and third generation networks.  Telefonica will launch its GPRS service with Motorola's Timeport(TM) 260 phones (the world's first GSM tri-band GPRS handsets).

 

 

DSL provider Riptide goes bankrupt
Source: Angustel

Riptide Communications, which had planned to offer DSL-based Internet access to businesses across Canada, is in receivership. CEO Phil Bates, formerly President of Sprint Canada, says the start-up was unable to raise enough capital to continue operations.

 

 

CIRA publishes .ca domain rules
Source: Angustel

The Canadian Internet Registration Authority, which takes control of the .ca domain November 1, has published rules that restrict use of this domain to Canadian citizens and organizations and owners of Canadian trademarks. 

 

 

Agilent unveils optical routing and switching test system
Source: ispworld

Agilent Technologies Inc. has announced that it has unveiled  the industry’s first system for testing optical switching and routing functions in network equipment and networks.  Agilent's new product family allows service providers and equipment manufacturers to test and verify the performance and interoperability of the hardware and software responsible for directing traffic carried on optical wavelengths and for requesting optical bandwidth across core networks. Tellium, which claims it is the developer of the world's first in-service, intelligent optical switches, is the first user of Agilent’s new product.

Agilent's testing product, which it has dubbed " Optical Routing Test Solution," will enable equipment manufacturers to speed development cycles, and provide independent verification of standards conformance, performance and equipment compatibility. Service providers can use the system for troubleshooting, equipment evaluation and interoperability testing.  The ability to provide optical bandwidth "on demand" is considered a key requirement for widespread purchase and deployment of optical switching equipment, since current provisioning of optical circuits requires manual updating and can take weeks or months.

Agilent said the product is also the first to provide "in-band" testing of optical control plane protocols. In-band transmission permits communications between optical routers and switches to be carried within standard SONET/SDH frame overhead, eliminating the need to dedicate a separate optical wavelength or circuit for control communications, and providing compatibility with widespread existing SONET/SDH infrastructure.  The Agilent E5170A Optical Control Plane Analysis software and hardware platforms are currently available.