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News Summaries
for the week ending November 1, 2000 

Last Week's News


IBM poised to tie up with Japan's NTT - report 
Motorola in third generation mobile network deal with Turkey's Telsim 
Qwest to turn on wireless voice portal 
Enigma updates document software 
Ads on Internet just don't click 
Brocade Communications unveils SAN switch 
Voice on the Net: tip of the iceberg 
New AMD chip set to boost Athlon PCs 
U.N. panel slaps cybersquatter in AltaVista case 
AMD ups Athlon ante with high-speed memory support 
TVs will carry bulk of broadband’s services 
FCC: high-speed internet hookups leap 57 percent 
Napster, Bertelsmann forge deal - update 
Internet capacity will hit bottleneck 


IBM poised to tie up with Japan's NTT - report
Source: newsbytes

US-based computer giant IBM Corp. is expected to seal an alliance with a unit of Japanese telecom titan Nippon Telegraph and Telephone Corp. (NTT) on Oct. 31.

According to a Reuters report quoting sources, IBM will tie up with NTT Comware in a $12-14 billion 10-year arrangement to provide outsourced information technology services, consulting and systems integration to NTT.

Such a deal would be by far IBM's largest outsourcing contract in Japan and a significant entry into the telecom sector of the Asia Pacific outsourcing market.



Motorola in third generation mobile network deal with Turkey's Telsim
Source: businesswire

Motorola and Telsim, Turkey's fastest-growing GSM operator, have signed a Memorandum of Understanding (MoU) agreement for the supply and deployment of a third generation (3G) mobile network capable of providing advanced multimedia services. Motorola estimates that the potential value of the contract could be in excess of $2 billion.

The European member of the IMT2000 family of third generation (3G) cellular mobile standards is known as UMTS - Universal Mobile Telecommunications System. Telsim initially plans to deploy Motorola's UMTS solution in Turkey's capital city and economic centre Ankara, and in its largest city Istanbul. Telsim, which had two million customers at the beginning of the year and now has over five million customers, estimates its growth to be seven and a half million customers by the end of the year - a growth rate this year of 375 percent.

With the advent of UMTS, Telsim's customers can look forward to totally 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 Systems, Inc. is developing a common, IP-based architecture designed to integrate voice, data and multimedia communications networks.



Qwest to turn on wireless voice portal
Source: cnet

Qwest Communications International said Oct. 30 it would offer Weblike voice-portal access over its wireless phone service, becoming the first of the big mobile carriers to turn on this type of feature.

The new function, available in the old US West Wireless territory, will provide voice-activated access to such information as news, traffic information, driving directions and weather over wireless phones. The move marks another critical endorsement for the young voice-portal business, which has attracted considerable attention from investors and Web companies, but has yet to filter into the mass-market consciousness.

The voice-activated Net idea is gaining ground as companies look for an alternative to wireless data. Bandwidth limitations and difficult-to-use interfaces have kept consumer adoption of mobile data services slow, although analysts say this will improve as new technologies bring faster download speeds and more intuitive interfaces to phones.



Enigma updates document software
Source: digitalmass

Enigma Inc. of Burlington said an updated version of a document-management software package it will introduce today will help it double revenue to about $40 million next year.

The software, CommerceSight 2.0, will be marketed to manufacturers of industrial equipment such as power plants or locomotives, as well as to companies that buy and operate such heavy equipment. Enigma said it will also announce agreements to sell the updated version of the software to two jet-engine makers: Pratt & Whitney in Connecticut, and a French-based affiliate of General Electric.

CommerceSight resembles other content-management packages in enabling various computer users to access and share technical information quickly. The software is used to keep track of information stored on programs such as word processors or computer-aided design systems, and to send the information to separate organizations. For instance, an airline could use the program to access files created by aircraft makers.



Ads on Internet just don't click
Source: digitalmass

One of the great promises of the Internet was that it would be a terrific marketing tool. Advertisers would know exactly how many people viewed each ad. It turns out to be very few.

Since the Net has been built largely on the model of television, where commercials are supposed to pay for all those free shows, the widespread spurning of ads is raising new concerns about the viability of many online enterprises. Whether it be the portal site Yahoo, online advertiser Doubleclick, or search engines like Ask Jeeves Inc., many tech stocks have fallen sharply in recent weeks because of concerns over the future of Internet advertising.

Web surfers go to a site because there is something they want to see or do; if they click on a banner ad, they often are sent to a new site, redirected away from what brought them to their initial destination. Why would they want to do that?

If you eliminate sweepstakes and similar ads, which reportedly have much higher click-throughs, analysts say that the average probably falls to only a handful of people out of every 10,000 who view an ad.

But while experts may debate whether certain ad strategies are effective, few doubt that Net advertising overall will continue to grow. From a paltry $175 million in 1996 online, advertising rose to $3.6 billion last year and might do double that this year. By 2005, according to an estimate by the investment banking firm Lehman Brothers Inc., it will be $32.3 billion - almost as big as radio and magazines put together, and just shy of cable TV and direct mail.



Brocade Communications unveils SAN switch
Source: teledotcom

Service providers are caught between a rock and a hard place when it comes to storage. They need more of it, but the costs associated with managing the additional storage are almost prohibitive. That is part of what makes SANs (storage area networks) so appealing. Not only do SANs boast lower management costs than traditional server-based storage is but they also promise a more efficient and potentially more scalable storage architecture than conventional server-based storage.

Vendors are responding to the demand with bigger -- and what they claim are better -- SAN switches that move storage traffic between SAN servers and users at gigabit speeds. Hoping to join McData Corp. (Broomfield, Col.) at the market's very high end, Brocade Communications Systems Inc. (San Jose) last week took the wraps off a new 64-port switch and revealed a product roadmap squarely targeted at service providers and very large corporations looking to scale their storage capacity over time. 

Brocade's Silkworm 6400 is made up of six integrated switch modules which are compatible with existing Brocade products. The Silkworm 6400 also comes with Web-based SAN monitoring software developed by Veritas Software which integrates with SNMP management consoles.

Beyond its cost and scalability, the Silkworm 6400 also includes two other crucial features--redundancy and high reliability. Redundancy is built into the switch fabric to remove any single point of failure. Brocade also claims 99.999 percent availability. The switch, which is part of Brocade's strategy to continue to rollout modular, high-port density products, will ship in March of 2001



Voice on the Net: tip of the iceberg
Source: comsoc

Voice over IP, or VoIP, has the potential to make the traditional voice network obsolete. It will be key to the convergence of voice and data and will also change how the Internet works and how phone companies are defined. 

The technology has been around for some time, but has not had a significant impact on the telecom industry. However, VoIP may soon make an impact with the introduction of high-bandwidth connections that will end quality problems and lead the way to a variety of new services. The newest version of call waiting notifies users when they have received a call, via a pop-up window while the user is browsing the Web. Cisco Systems has introduced an IP phone that will include a virtual secretary. IDC estimates that 13.7 percent of U.S. long-distance calls will be placed over the Internet by 2004, compared to 1.4 percent now.

VoIP will enable users to purchase phone service from new outlets. AOL and its CompuServe division, along with ICQ, have formed a deal with VoIP provider Net2Phone. Such deals have led the way to increasing similarities between ISPs, telcos, and cable companies. However, VoIP may have the greatest impact as far as how the Internet is used. Currently, the keyboard connects users to the Internet. But the Internet may eventually be accessible by voice.



New AMD chip set to boost Athlon PCs
Source: zdnet

Advanced Micro Devices Inc. on Oct. 30 moved a big step closer toward realizing its promise to offer chips and a chip set that would enable higher-performance PCs by Thanksgiving.

The chip maker officially announced its 760 chip set, along with three new high-end Athlon processors, running at 1GHz, 1.13GHz and 1.2GHz. Company officials say the upshot will be improvements in the performance of PCs based on the new Athlon chip set over current models based on the Athlon chip.

The first PCs based on its 760 chip set should begin shipping in late November, according to Tim Wright, who directs product marketing at AMD.

AMD claims the machines will match PCs built with Intel's  forthcoming Pentium 4 processor in performance.


U.N. panel slaps cybersquatter in AltaVista case
Source: commweb

The World Intellectual Property Organization ruled Monday that a company based in Panama and Latvia must turn over 43 domain names to Web portal AltaVista Co. The domains, which included alsavista.com, altavifta.com, and altadista.com, were found to be a violation of trademarks and registered in bad faith, violations of the terms of service under which domains are registered.

It was only the latest in a string of cases in which the U.N. copyright and intellectual property agency ruled against cybersquatters. It has ruled on about 1,400 of these cases since January, when it became one of four arbitration bodies charged with settling domain-name disputes.

Decisions by the panel may be appealed in court, but the system provides a quick and cheap alternative for clear-cut cases of cybersquatting.


AMD ups Athlon ante with high-speed memory support
Source: itworldcanada

As expected, Advanced Micro Devices Inc. (AMD) introduced Oct. 30 a new chip set that will allow PCs powered by its high-end Athlon processors to take advantage of the emerging DDR (double data rate) SDRAM (synchronous dynamic random access memory) high-speed memory devices.

In addition, the AMD-760 chip set is designed to support new versions of the Athlon processor family featuring a faster 266MHz front-side bus and running at clock speeds of 1.2GHz, 1.13GHz and 1GHz, which also were introduced Monday.

Users in the United States and Europe itching to lay their hands on systems featuring the speedy memory technology and new AMD devices are advised to contact the online storefront of Micron Electronics Inc. or NEC Computers International BV, Tokyo-based NEC Corp.'s European unit. The two PC vendors will immediately start taking orders for systems that are scheduled to start shipping in November, Sunnyvale, Calif.-based AMD said in a statement.

TVs will carry bulk of broadband’s services
 Source: ispworld

According to a report from Forrester Research, Inc., that giant screen TV is still going to be the focus of a lot of living rooms in the near future. Forrester said that by 2003 broadband content will be divided sharply by device— PCs will comprise one-half of all broadband devices, while TVs and game consoles will dominate the other half. Multimedia-focused entertainment will gravitate toward TVs and gaming consoles, while streaming interactive content and software updates will flow to PCs.

With more broadband becoming more commonplace, the advantage will shift to the consumers as service providers battle for subscribers, the report said. By 2002, competitive pricing pressure will put high-speed access on the fast track to commodity status, forcing carriers to offset revenue shortfalls with additional services. Consumers will benefit from a host of broadband-enabled devices and services from which they can receive various entertainment experiences.

In 2005, 191 million devices will connect by broadband. PCs will constitute only one-third (36 percent) of these devices, but 70 million high-speed-enabled computers will still need their own content. As other devices siphon away multimedia content, consumers will use PCs only for complex, highly interactive tasks and software downloads.



FCC: high-speed internet hookups leap 57 percent
Source: newsbytes

The number of high-speed Internet hookups in the US rose 57 percent in the first six months of the year and the rural subscriber rate is rising rapidly, the Federal Communications Commission reported today.

By June 30, about 4.3 million homes and small businesses subscribed to high-speed Internet service, up from 2.8 million at the end of 1999. About 2.8 million of the lines packed speeds in excess of 200 kilobits per second (kbps) in both directions, meeting the FCC's definition of advanced services, compared to 2 million at the end of last year.



Napster, Bertelsmann forge deal - update
Source: newsbytes

Entertainment titan Bertelsmann AG and rogue music site Napster have agreed to compose a membership-based file-sharing service and invited other music industry heavyweights to join them, the companies announced today.

Once Napster gets the service up and running, Bertelsmann's music division, BMG, will drop its copyright infringement lawsuit against Napster and make its music catalogue available, the alliance says. BMG is among five major recording labels that have sued Napster.

The companies urged other labels to accept Napster as a widely accepted member service and asked for their participation in the process. The service will retain the Napster experience, but will compensate artists, songwriters, recording companies and music publishers.

The pricing model has yet to be worked out, but Napster CEO Hank Barry said payments to rights holders would be "large." Whether Napster plans to charge users to download music files or how that would be carried out was not spelled out, so for now users continue to get music for free.


Internet capacity will hit bottleneck
Source: itworldcanada

International Internet capacity will hit a bottleneck in as little as two years.  The root of the problem is technical. On domestic cables, which run across land, carriers can put as many as 432 optical fibre pairs inside one insulated cable — a very large amount of bandwidth. However, when it comes to cables that run under the sea, protection from the water, shielding and other limitations mean a maximum of six fiber pairs can be built into each cable.

Since it is taking more than 14 months to manufacture the cable needed to run undersea, and since there are technological limitations in the construction of repeater stations — regularly positioned amplifiers along the cable route — the necessary capacity is unlikely to be deployed fast.

As more users come online, the amount of traffic flowing under the oceans is expected to increase although its nature, at least between Asia and the U.S. mainland, is expected to change as the regional infrastructure is improved.

Asia Global Crossing, its Asian affiliate in which Microsoft Corp. and Softbank Corp. also own stakes, plans to have the first half of its new regional cable in service by 2001 and the full cable in service by 2002.