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Date: Tue, 05 Oct 1999 13:43:36 -0400
To: (Recipient list suppressed)
From: Faulkner Information Services <flash@faulkner.com>
Subject: Faulkner Com-Flash 10/05/99 (Part 2 of 3)

Covad Communications will register with the SEC to sell approximately 13
million shares of common stock. The funds generated through this move will
go towards marketing the company's network expansion.
	France Telecom released its financial information for the first half of
1999. Consolidated revenues were 12.9 billion euros, a 9.2-percent increase
from 11.9 billion euros for the first half of 1998. Operating income was 2.4
billion euros, a 14.3-percent gain from 2.1 billion euros. Fixed-line
telephony increased 3.5 percent, while mobile services leaped 43.4 percent.
	Juniper Networks reported that its public offering was declared effective
by the Securities and Exchange Commission for the sale of five million
shares, excluding the over-allotment option granted to the underwriters, of
Juniper Networks common stock. 
	Boca Research and National Semiconductor signed a definitive agreement
whereby National Semiconductor will purchase 691,085 newly issued shares, or
approximately six percent of Boca Research's outstanding stock. The
transaction is expected to close by October 1999. The companies also entered
into a cooperative development and licensing agreement.
	Novell reported that it will buy $100 million of Whittman-Hart stock. This
investment represents six percent of Whittman-Hart's outstanding
capitalization. It is the first part of Novell's strategy that involves
expanding its partnerships with consulting and systems integrator
businesses. The companies have also agreed to develop customized NDS tools
for medium-sized businesses.
	When Securicor Communications completes its sale of the 40-percent stake it
owns in BT Cellnet to British Telecommunications, it will return
approximately three billion pounds (US$4.9 billion) to its shareholders. The
company will retail only 130 million pounds (US$213 million) of the proceeds
generated from the sale.
	Finland began a $3.5-billion second tranche of Sonera. The sale will move
127 million shares out of the government's hands and will reduce its
ownership in the company to 60 percent, from its current 78-percent stake.
Finland plans to reduce its ownership in Sonera to a minority.
	For the fourth quarter 1999, VTEL reported revenues of $40.8 million,
compared to $47.7 million for the same three-month period last year. Net
income was $392,000, or $0.02 per share, versus $1.4 million, or $0.06 per
share over the same quarter in 1998. For the fiscal year ending July 31,
1999, VTEL's revenues were $151.6 million compared to $179.7 million for the
fiscal year 1998. The company suffered a net loss of $15.6 million,
including $3.1 million in restructuring charges, or $0.66 per diluted share,
for the fiscal year 1999 compared to a net income of $2.8 million, or $0.12
per share, the previous year.

Internet/Intranet
	The new BreezeACCESS product line by BreezeCOM is available to ISPs and
Carriers, allowing them to provide IP broadband wireless data and voice
services, such as high-speed Internet access, Extranet/VPNs and telephony.
	Cisco Systems delivered Cisco ContentFlow, a content networking
architecture, and a set of product enhancements to enable that architecture.
Content networking builds on the internetworking foundation to enable the
network to provide global access to the Web and application content by
deploying content tracking, content access, and flow management
technologies. Cisco also introduced the Cisco Cache Engine 500 series,
network elements that reduce WAN bandwidth usage, accelerate network
performance, and increase Web site scalability by transparently caching
frequently accessed content.
	Also, Cisco Systems, is involved with Intel, ITXC, and Lucent Technologies
to jointly demonstrate the first H.323v2 standards-based VoIP
interoperability with a new class of peripherals, PCs, PDAs, mobile 

phones, personal gateways, and other IP-enabled appliances. This
interoperability will allow users to make voice calls over an IP telephony
network.
	In Latin America, COMSAT Corporation unveiled GlobalWay, a fully
interconnected regional network to provide direct connection to the area's
major business centers and the US Internet. This new capability, available
immediately in Brazil, Colombia, and Venezuela, will reduce delays normally
associated with current network communications offerings in the Latin
American region.
	NDC Communications launched its CableFREE NetBlaster, a
wireless-to-Ethernet bridge that enables the sharing of Internet access in
the home or office by linking CableFREE wireless networks and existing wired
networks to cable/xDSL modems. NetBlaster is the key product component in
the company's broadband home networking initiative to offer plug-and-play
products to high-speed Internet service subscribers.	
	Sprint plans to target private consumers as well as big business customers
as it begins to enter the application service provider (ASP) market. Sprint
plans to offer everything from interactive games to distance learning and
e-business applications in addition to home management applications for
consumers. Sprint will operate 17 nodes across the country to supply
software on demand. The nodes are in Akron, Ohio; Atlanta; Cheyenne, Wyo.;
Chicago; Detroit; Elkdridge, Md.; Fort Worth, Texas; Kansas City, Mo.;
Nashville, Tenn.; New York City; Orlando, Fla.; Pennsauken, N.J.; Rialto,
Calif.; Roachdale, Ind.; Satsuma, Texas; Stockton, Calif.; and Tacoma, Wash.

Local Area Networking
	3Com shipped its home network products co-branded with Microsoft, the 3Com
HomeConnect Home Network Ethernet product series. This family provides
network capabilities with speeds up to 100M bps, with internal PCI and
external USB connectivity options. 3Com's home network kits and adapters
include Microsoft HomeClick Network Software, featuring a step-by-step setup
wizard that guides users through setup, provides troubleshooting, and helps
consumers pinpoint and correct any errors.
	Proxim reported that its RangeLAN2 wireless LAN technology has been tested
and approved for use with the Windows CE-based pen tablet computer from
Fujitsu Personal Systems (FPSI). This technology will enable users of the
handheld device to have real-time, wireless access to networked information.
Proxim's RangeLAN2 CE PC Card adapters draw an average of 5 mA of current
while sustaining the network connection, what Proxim states is the lowest in
the industry by more than a factor of six.

Mergers/Acquisitions
	The FCC approved the merger of ALLTEL and Liberty Cellular, a wireless
communications provider in Kansas. The merger is expected to be completed
this week.
	AT&T may be selling its stake in Excite@Home to AOL, according to reports.
Excite@Home stock increased 13 percent on the rumor. AT&T, however, denied
there was any discussion about the possible sale of the company's stake in
Excite@Home. Leo Hindery, Jr., president and CEO of AT&T Broadband and
Internet Services, called the rumor "absurd."
	Sprint's board of directors now are considering two bids, one valued at $72
billion from BellSouth and one valued at $65 million from MCI WorldCom. MCI
WorldCom and Sprint, reportedly, have been conducting talks concerning a
merger, however, the BellSouth bid comes as a surprise. No formal agreements
have been signed as of yet. MCI WorldCom board of directors are scheduled to
meet to vote on the deal. Sprint Chairman and CEO, William Esrey, said he
would prefer going with MCI WorldCom. In addition, Deutsche Telecom
apparently is interested in acquiring the company.
	Cisco Systems completed the acquisitions of Cocom A/S and Monterey
Networks, an innovator of infrastructure-class, optical cross-connect
technology that is used to increase network capacity at the core of an
optical network.
	Also, Cisco Systems received clearance to complete its $6.9 billion
acquisition of Cerent. The FTC reported that antitrust authorities gave
"early termination" to the deal, meaning the companies may merge. 
	Finally, Cisco Systems agreed to buy WebLine Communications for $325
million in stock. The acquisition is expected to be completed by the end of
January. Under the terms of the deal, Cisco will exchange $325 million worth
of its common stock in exchange for all outstanding shares, warrants and
options of WebLine.
	Deutsche Telekom believes that the sale of its cable television networks
will bring in over $10.69 billion. This amount is much lower than the
company originally expected. DT is looking into 17 bids it received for the
network; it rejected six already. The company also stated that it does not
plan to sell the nine networks to competitor Mannesmann.
	Global Crossing and Frontier completed their merger, creating a global
telecommunications company that will have one million customers, an
88,000-route mile, fiber-optic network, and that will offer ultra-high
bandwidth to 170 major cities in 24 countries. The new company also will
have 11,000 employees, and a more than $2 billion contract backlog. In the
deal, Frontier shareholders will get 2.05 shares of Global Crossing common
stock for each share of Frontier, which, will result in a $53.81 value for
each Frontier share. Frontier's CEO, Joseph P. Clayton, will serve as vice
chairman for Global Crossing. Rolla P. Huff, Frontier President and COO,
will be president of Global Crossing's North American region.
	Global One will acquire 40 percent of Global One in Russia, an operations
and sales joint venture, held by Central Telegraph. The deal is still
pending Russian approval. Global One will also buy out Central Telegraphs'
40 percent ownership in Global One Networks, a network joint venture between
the two companies. Global One will then own 80 percent of Global One
Networks, the other 20 percent is held by regional carriers in Russia.
	Citizens Utilities will buy GTE's 58,723 access lines in Nebraska for $204
million. The deal includes 37 telephone exchanges and 72 employees. GTE will
use the proceeds from the sale for investments, including its purchase of
Ameritech wireless properties in Illinois and Missouri. The sale is part of
GTE's plan to divest itself of 1.6 million access lines in the US.
	Intel acquired the Telecom Component Products (TCP) unit of Stanford
Telecommunications, a subsidiary of Newbridge Networks. Stanford's TCP
division offers silicon components for equipment used by cable companies and
broadband wireless service providers. Its components are also used in
customer premise equipment such as cable modems and set-top boxes. This deal
allows Newbridge to retain access to the silicon components required for its
Wireless Broadband Products group.
	Motorola Canada Acquisition Corp., an indirect wholly owned subsidiary of
Motorola, successfully completed its offer to purchase all of the common
shares of Metrowerks. The transaction made good on an offer expressed in a
take-over bid circular mailed to Metrowerks' shareholders on September 2,
1999. Approximately 96 percent of the outstanding common shares (on a fully
diluted basis taking into account cancelled options), were included in the
deal. Motorola Canada Acquisition Corp. has plans to take advantage of the
compulsory acquisition provisions of the Canada Business Corporations Act to
acquire the remaining shares of Metrowerks.
	NetManage and Simware signed an acquisition agreement through which
NetManage will acquire the outstanding shares of Simware at $3.75 per share,
or approximately $28 million. The combined company expects to build on
Simware's Salvo Commerce Servers and Salvo application re-engineering and
integration servers, and to integrate the technology into NetManage's eN2000
Connectivity Framework. The new company also intends to expand its presence
in the Web-to-Host market and the Web Integration Server market as a single
source supplier of connectivity applications for UNIX, IBM AS/400 Midrange,
and IBM Mainframe systems.
	The Illinois Commerce Commission (ICC) approved the merger of SBC
Communications and Ameritech, leaving the FCC as the only remaining agency
left to grant its approval. The US Department of Justice and Ohio regulators
have already given their blessing.
	SkyTel Communications' shareholders gave the go-ahead to that company's
merger with MCI WorldCom. The merger is expect to close October 1. Under the
terms of the deal, SkyTel common stockholders will receive 0.2566 shares of
MCI WorldCom stock in exchange for each share. SkyTel preferred stockholders
get one share of a new series of MCI WorldCom convertible exchangeable
preferred stock for one SkyTel share. SkyTel will become a unit of MCI
WorldCom after the deal closes.
	Sprint completed its deal to purchase People's Choice TV (PCTV) and that
company's SpeedChoice subsidiaries. With the buy, Sprint can offer wireless
broadband services to an additional 7.8 million households in Albuquerque,
Chicago, Detroit, Houston, Indianapolis, Milwaukee, Phoenix, St. Louis, Salt
Lake City, and Tucson.
	In a deal with undisclosed terms, Telia purchased Unisourse Iberia. This
move gives Telia Internet provision services in Spain.
	In order to complete a merger with Telnor, Telia agreed to sell its cable
television unit. Companies are wasting no time in bidding on the business.
Egmont and Microsoft are reported to be in the hunt for the unit, which is
valued between $1.2 and $2.4 billion.

Middleware
	Lotus Development reported the immediate availability of Domino Extended
Search 2.0, enhanced search software intended to extend Lotus Notes and
Lotus Domino R5's capabilities and enhance Lotus' knowledge management
services. Domino Extended Search 2.0 facilitates the development of
applications with the ability to efficiently sift through information and
identify and retrieve specific data. The product lets organizations search
for information in disparate systems, as well.
	Oracle, Unisys, IBM, NCR, and Hyperion submitted the common warehouse
metadata interchange (CWMI) standard to the Object Management Group (OMG).
The proposed CWMI standard is designed to help companies integrate
e-business systems quickly and easily by supplying a common format for
enterprise systems to exchange data.

Personnel and Organizational Changes
	Artisoft reported that it is considering separating its computer telephony
and communications software divisions to maximize shareholder value. The
company stated that the "synergies" between the units has dissolved.
	Cabletron Systems introduced its GlobalNetwork Technology Services division
refocusing on a range of technology-based services that allow customers with
global or large regional networks to leverage their business critical
investment in equipment and employees.
	Also, Cabletron Systems appointed John Roese as chief technology officer
(CTO). Roese has been with Cabletron Systems since 1991 and moves to the
role of CTO from his current position as senior director of systems
engineering and chair of the Cabletron Systems technology council.
	In order to bring competition to the telecommunications market, China will
launch the third major telecommunications company next month. China Netcom
received $50 million from the government to offer data services to ISPs and
businesses in 15 Chinese cities. The company will use fiber-optic lines
owned by the government and will use IP technology.
	Global Crossing appointed Garry Winnick, the company's founder, to serve as
chairman of the board. Prior to this, Winnick was serving as co-chairman
with Lodwrick Cook. Cook will retain his title.
	GTE will give 83,000 of its US employees options to buy more than 10
million shares of its common stock. The employees, who are hourly, salaried,
and part-time, may purchase between 100 and 300 shares, based on certain
criteria. The price will be $68.75 per share.
	As of October 1, 1999, Lockheed Martin will implement a new organizational
structure that will redefine its businesses, realign management, reduce
corporate staff, consider divesting non-core operations, and evaluate its
approach to financial management.
	Mannesmann will split its telecommunications business from its engineering
and automotive divisions into two separately listed companies. The funds
generated from this move are expected to fuel acquisitions in new European
markets. However, the split may make the telecom business vulnerable to
takeover attempts. The other divisions of Mannesmann, with their numerous
assets, operations, and employees, served as a shield against takeovers from
telecom companies that did not want to take on engineering and automotive
operations.
	Motorola will invest more than $100 million establish a European Research
and Development Centre in Turin, Italy. The Motorola Centre will focus on a
development process that combines Motorola's personal communications
products aimed at the European, Middle Eastern and African markets, allowing
the company to develop products that are specifically tailored to the needs
and preferences of these consumers.
	George Tronsrue, president and COO of NEXTLINK Communications, is leaving
the company. Mr. Tronsrue made this move to pursue other career interests.
NEXTLINK is yet to appoint a replacement to the positions.
	Nortel Networks is bringing together its global business serving carriers
and service providers in its new Service Provider and Carrier Group.
Clarence Chandran will lead the group as vice president and president. The
group will build upon Nortel's global networking strengths and offerings to
redefine the speed, quality, reliability, and economics of the Internet
while extending the company's leadership in IP, long distance, optical and
wireless networking.
	As part of the ongoing restructuring of Telecom Italia, Olivetti will give
control of Telecom Italia Mobile (TIM) to Tecnost, Olivetti's acquisition
vehicle. Shareholders of Telecom Italia who did not sell their stock to
Olivetti when it took over the company will be allowed to trade their shares
for shares of Tecnost. By taking over TIM, Tecnost will be able to pay off
the debts it assumed from the Telecom Italia acquisition.
	Visa International reported that it is reorganizing its business to better
serve banks. Visa stated that it will establish a central operation
responsible for running its global infrastructure and determining its
business strategy. Six regional units will work with the banks on product
development and the marketing of their cards.

Regulatory News
	Bell Atlantic filed an application with the FCC to provide long-distance
service to more than eight million homes and businesses in New York. If the
company's plans are successful they will become the first Regional Bell
Operating Company to offer long distance inside its own service area,
allowing customers in New York to receive all domestic and international
telecommunications services from the same vendor.
	A Pennsylvania judge recommended that regulators reject Bell Atlantic's $53
billion acquisition of GTE Corporation, in a report to the Pennsylvania
Public Utility Commission. Judge Morris reported that the deal posed
"potential competitive harms" and that the companies failed to meet federal
competition guidelines. Morris asserts that the pact mainly benefits the
companies. The utility commission is expected to rule on the merger by
mid-November. Bell Atlantic and other companies involved have until October
25 to file comments on the judge's findings. Bell filed with the FCC for
approval to provide long distance services in New York this week. If
approved, it would be a boost the GTE acquisition. Bell Atlantic hopes to
finalize the acquisition by the first quarter 2000.
	The European Commission will launch a series of investigations into the
telecommunications industry. The commission received complaints of excessive
pricing in local loops, leased lines, and wireless roaming charges from
across the European Union. This announcement comes a month before the
commission's scheduled annual review of the industry to verify that
liberalization and deregulation is occurring.
	In other news, the European Union placed its seal of approval on Deutsche
Telekom's takeover of One2One. The union said that the $11-billion takeover
will not result in a monopoly on mobile telephone calls between Germany and
Britain nor will it put DT in a dominant position within Germany.
	The US antitrust waiting period for Lucent Technologies' proposed $4.05
billion merger with International Network Services (INS) expired. The merger
was subject to a waiting period under the federal Hart-Scott-Rodino Act. The
companies both have operations in Germany, therefore, the merger is subject
to German regulatory approval also. The German review period will run out on
October 13. Each share of INS will be converted into 0.8473 share of Lucent
under the terms of the agreement.
	The transfer of MediaOne's Massachusetts cable licenses to AT&T was
recommended by a magistrate of the Massachusetts Department of
Telecommunications and Energy (DTE). In a series of 11 hearings, executives
from MediaOne and AT&T argued AT&T's ability to manage and operate
MediaOne's Massachusetts cable systems. Under Massachusetts law, the local
franchising authority, in the 165 municipalities affected, may consider four
points when ruling on the license transfer: AT&T's legal, technical,
financial, and managerial ability to mange and operate the cable systems
currently owned by MediaOne. The magistrate presiding over the hearings
advised the municipalities that AT&T has met all the criteria. Eleven
communities have already approved the license transfer and the remaining
towns have until mid-November to make a decision.
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