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---------- Forwarded Message ----------
Date: Tuesday, April 04, 2000, 1:23 PM -0400
From: Faulkner Mail Server <mailserver@faulknerinfo.com>
To: ???
Subject: Faulkner's Com Flash 04/03/00 - (Part 1 of 2)

TOP OF THE NEWS

	 * DoJ Redoubles Attack on SBC Long Distance in Texas	
	 * 3Com Overhauls Operations to Reshape Market Focus	
	 * Deutsche Telekom to Aquire Debis for $11.7 Million	
	 * FCC Approves Bell Atlantic-Vodafone AirTouch Deal	

======================================================================
Alliances/Joint Ventures 
	 Japan Telecom said it will fold the nine J-Phone wireless companies into a
joint venture with IMT-2000 Planning, a joint venture between Japan Telecom,
BT, and Vodafone AirTouch. The move is a preparatory step for the upcoming
third-generation wireless auction. The new venture will be called J-Phone
Communications and it will be 54-percent owned by Japan Telecom, 26-percent
owned by Vodafone AirTouch, and 20-percent owned by BT.
	 Merit Studios proposed an offer to Attorneys in Iridium's bankruptcy case
outlining a potential business venture. Merit would use its WormHole
Technology with Iridium's satellite system for an Internet and data
transmissions network. Users, even if they are not online, can download data
directly from a satellite. Merit is looking to create a new company out of
Iridium and to recover all losses.
	 Nortel Networks increased its control in ventures the company maintains
with Aerospatiale-Matra in France and DaimlerChrysler in Germany. The
Canadian firm raised its 50 percent stake in Matra Nortel Communications,
which it formed with Aerospatiale-Matra, to 55 percent. It also upped its 50
percent stake in Nortel Dasa, a venture with DaimlerChrysler Aerospace, to
58 percent.

CTI/Call Center 
	 Lucent Technologies introduced Mobile Voice Dialing, a network-based
software that uses speech-recognition technology to provide customers with
access to mobile services using voice commands. Mobile Voice Dialing can be
used with existing mobile phones. Chariton Valley Wireless Services is
currently running trials of it in Missouri.

Broadband Networking 
	 ADC made available the Axity Broadband Wireless Access System, a
carrier-class architecture for two-way delivery of communications services
over the Multichannel Multipoint Distribution Service wireless spectrum.
This introduction supports ADC's focus on the access sector of broadband
communications networks.
	 Through a network exchange with EPIK Communications, a division of the
Florida East Coast Railroad, Broadwing Communications acquired optical
fibers on a segment along the eastern coast of Florida running from
Jacksonville to Miami, and optical fiber through central and western
Florida, connecting Daytona Beach, Tampa, and Miami. The new route completes
an additional fiber ring on Broadwing's network and provides redundancy to
enhance the network's reliability. In exchange for the Florida network
Broadwing will provide EPIK Communications fiber access from Atlanta to
Orlando, Dallas to Houston, and access to the Jacksonville area.
	 PairGain Technologies introduced what it claims is the first DSL LAN
extension system for enterprise networks. The service uses asynchronous DSL
(ADSL) Megabit Modems, which allow enterprises to offer a single ADSL
connection between LAN segments that are miles apart. This enables remote
access to intranets as well as the Internet using DSL. The system does not
require the accompaniment of DSLAM equipment.
	 TollBridge Technologies introduced its TB55 IAD, which provides small and
mid-sized businesses with VoDSL implementation capabilities. TB55 provides
voice, data, and fax over Symmetrical DSL (SDSL). A maximum of eight ports
can be used to connect the device with phones, fax machines, PBXs, and other
forms of telephony equipment.

Carriers and Carrier Services 
	 Bell Atlantic launched its Enhanced ISDN PRI Hub Service and Internet
Protocol Routing Service (IPRS) with single number routing to connect
customers, toll-free, to their ISP or local area network regardless of where
they are. For customers who choose the ISDN PRI Hub service, Bell Atlantic
provides the network service while the modem and the customer performs the
server functions. With the IPRS version, Bell Atlantic provides both
components and maintains the network. Using a 1-500 number assigned by Bell
Atlantic or the North American Numbering Plan administrator, customer calls
are connected over a high-speed data line to the ISP's local point of
presence, or forward it, toll-free, to another nearby point of presence so
the call will go through. The IPRS single number services is available
throughout Bell Atlantic's 13-state region, The Enhanced ISDN PRI Hub
Service is available to ISPs and business customer in Pennsylvania,
Maryland, Virginia, and West Virginia.
	 Japan Telecom became the exclusive distributor of Concert's services in
Japan. The Japanese telco expects to rake in between four billion and five
billion yen annually through these new services. AT&T and BT, the two
constituents of Concert, each own 15 percent of Japan Telecom.
	 In a filing with the FCC, the Department of Justice re-iterated its
opposition to SBC Communications entering the long distance market in Texas.
The Justice Department contends that the RBOC has not shown its is providing
equal access to competing companies seeking to lease it local phone lines to
offer high-speed Internet service, citing numerous problems switching over
phone customers to competing providers. The final decision lies with the
FCC, however, the agency gives substantial weight to the assessment provided
by the DoJ. The Texas Public Utility Commission approved the application,
confident that SBC met all the tests to show their market is open.

Financial News 
	 3Com reported financial results for its third fiscal quarter ended
	 February 25, 2000. Revenues were $1.415 billion and net income was $506.3
million, or $1.40 per share.
	 Adelphia's revenues for the fourth quarter 1999 were a record $635.3
million. Net loss was $128.0 million, or $1.05 per share, compared to $44.5
million, or $1.06 per share, for the same period in 1998.
	 AT&T's announced initial public offering of shares for its wireless
business was priced at $26 to $32 per share. The AT&T Wireless tracking
stock will bring $10.13 billion to AT&T, $7 billion of which the company
will put into wireless operations.
	 Global Crossing filed a shelf registration with the SEC to sell up to $8
billion in debt securities, preferred and common stock, and warrants. The
company plans to use the proceeds for debt repayment, capital spending,
acquisitions, and repurchase of its capital stock.
	 Iridium is set to take its satellites out of orbit while competing
satellite mobile companies like Globalstar are waiting to woo its
subscribers. Motorola is maintaining the network until the time comes for
de-orbiting the satellites, but new buyers made offers to Iridium. hotJump
joined Merit Studios in making an offer to the company. hotJump does not
know what it will do with Iridium and did not release any financial terms.
	 KPN said that it plans to raise between eight billion and 10 billion euros
from the upcoming IPO of KPN Mobile. The company is looking into possibly
giving the mobile division's subscribers a first right to the shares.

Internet/Intranet 
	 3Com and Inet Technologies entered into a joint marketing agreement
	 whereby Inet's Internet Access SoftSwitch application will be integrated
with the 3Com Total Control 1000 multiservice access platform, enabling
Internet traffic diversion for carrier-class networks.
 	 In other news, 3Com reported plans to introduce a consumer Internet
appliance this summer which it hopes will be bigger than Palm. The plan is
reportedly part of 3Com's refocusing strategy.
	 Cisco Systems reported plans to deploy Internet broadcast capabilities for
this emerging market. Cisco is delivering two additions to its suite of
Cisco IOS Multicast products and established an initiative to bring together
content providers, application vendors, ASPs, hosting companies, ISPs, and
middleware vendors.
	 Additionally, Cisco introduced an office telephone system that enables
users to integrate voice and computer communications over a single network
using IP. Cisco added these products to stay atop of competition with Lucent
Technologies and Nortel Networks, who are also trying to become one-stop
shops for expertise in voice and data traffic.

Local Area Networking 
	 Cisco Systems introduced the Cisco Aironet 340 Series of 11M-bps WLAN
products that provide business-class WLAN systems for organizations ranging
from small and medium sized businesses to corporate enterprises.
	 Inari launched a joint development effort with GlobeSpan to integrate
Inari's powerline networking technology with GlobeSpan's DSL technology, to
provide an integrated high speed, AC powerline home networking to DSL
gateway product. This DSL Gateway product will enable multiple users to
connect concurrently to the Internet through one common Internet service
account.

Mergers/Acquisitions/Divestitures
	 3Com is moving away from analog modems and corporate core systems and
entering the broadband, IP telephony, wireless, and Web markets. The company
expects these markets to contribute to future revenue growth. It is selling
its modem business to Acton Technology and NatSteel Electronics, and is
ending production of its LAN and WAN product lines.
	 Also, 3Com launched a definitive agreement to acquire Call Technologies, a
developer of Unified Messaging and Operational Systems and Support software
for SPs.
	 AT&T, Liberty Media, and British Telecom n are among a consortium of
companies that agreed to buy 4 million newly issued class A shares of
Net2Phone at $75 per share, valuing the deal at about $1.4 billion. The
group also will buy 14.9 million class A shares from Net2Phone's controlling
shareholder IDT, also for $75 per share. When the transactions are
finalized, the consortium will hold a 39 percent voting stake in Net2Phone.
The news of the deal comes only days after Liberty Media agreed to purchase
a 10 percent stake in IDT. Additionally, Business Week reported that America
Online is interested in increasing its minority stake in the Internet-long
distance provider.
	 The Financial Times reported that Hutchison Whampoa may launch a bid for
Cable & Wireless. C&W is in the process of divesting HKT to Pacific Century
CyberWorks, lowering the price tag for the company. Hutchison Whampoa
recently sold a chunk of its stake in Vodafone AirTouch for 3.2 billion
pounds, filling its coffers for an acquisition. Hutchison, however, is
strategically focused on wireless services, something C&W lacks.
	 Cisco Systems completed the acquisition Compatible Systems which began on
January 19, 2000. This acquisition enhances Cisco's New World VPN offering
by providing enterprise and SP customers with remote access and extranet
services. This acquisition is being accounted for using pooling accounting.
	 In other news, Cisco completed the acquisition of Growth Networks. On
February 16, 2000, Cisco announced a definitive agreement to acquire Growth
Networks, a provider of Internet switching fabrics, a category of networking
silicon. This transaction is being accounted for using pooling accounting.
	 Deutsche Telekom agreed to acquire a 50.1-percent stake in Debis
Systemhaus, the IT division of DaimlerChrysler, for approximately $11.7
billion. DT beat out Siemens in the race to possess the company. Once the
acquisition is approved by regulators and completed, Debis and DeTe-System,
DT's own technology arm, will fold their assets together into a joint
venture. DaimlerChrysler wanted to divest Debis in order to focus on its
automotive operations. DT was in a bidding war with Siemens for Debis.
	 In other news, Deutsche Telekom completed the $2-billion acquisition of
MediaOne Group 's international assets in Eastern and Central Europe. The
assets comprise wireless operators in Russia, Hungary, and Poland.
	 According to the Wall Street Journal, France Telecom is reportedly close
	 to striking a deal to acquire 20 percent of MobilCom, a German telco with
about five million customers, for $3.89 billion. The two companies are
rumored to be interested in placing a bid for one of the UMTS licenses
being auctioned off in Germany later this year. France Telecom has been
looking to expand into Germany for some time. It recently made a play for
E-Plus, only to have its bid shot down by BellSouth and KPN Telecom.
	 Additionally, France Telecom's Chairman Michel Bon said on France's LCI
television that his company is interested in acquiring Orange, the UK
wireless operator that must be sold in order for Vodafone AirTouch to move
forward with its acquisition of Mannesmann. The company will not be able to
pull off a deal, however, unless the French government sells part of its
stake in FT. The government owns 62 percent of France Telecom, but there are
provisions that will require the state to drop its stake to 50 percent.
	 Six providers of communications and energy services have agreed to merge
their fiber-optic networks, according to the Wall Street Journal. The firms
seek to link cities that have been bypassed by other major network build
outs. The new network will be called America's Fiber Network. It will span
7000 miles and will cross 11 states, connecting smaller cities between New
York and Chicago. Partners in the endeavor include AEP Communications,
Allegheny Communications Connect, GPU Telecom, and First Energy Telecom, all
of which are units of energy providers. CFW Communications and R&B
Communications are also part of the union.
	 Hong Kong's Hutchison Whampoa sold 925 million Vodafone AirTouch shares
through Deutsche Bank and Goldman Sachs. Institutional investors bought the
shares in a deal worth $4.7 billion, the largest placing ever.
	 Industar Digital PCS will become a wholly-owned subsidiary of AT&T
	 Wireless and TeleCorp after the two companies acquired it to expand
AT&T's wireless service in Wisconsin.
	 Lucent Technologies sold its communications equipment sales group to
Expanets, a division of NorthWestern. The sales group aims its offerings at
small and mid-sized businesses. Expanets will pick up 700,000 customers as a
result of the deal.
	 Mannesmann's supervisory board is expected to vote on whether or not to
move forward with plans to launch an IPO for Atecs, its engineering arm, or
sell it to Thyssen Krupp. Vodafone AirTouch initially received Thyssen's
bid, but it passed the offer on to Mannesmann since the pending merger
between Vodafone and Mannesmann is yet to be cleared by regulators. Analysts
estimate than a Atecs IPO would generate about seven billion euros, while a
sale could rake in 7.5 billion euros.
	 Motorola will acquire 3Com's business, and Extreme Networks will take its
CoreBuilder line of high-end switching technology. 3Com wants to regain its
position as a networking company.
	 Nortel unveiled an agreement to acquire CoreTek for up to $1.43 billion in
Nortel Networks common shares on a fully diluted basis. CoreTek's tunable
optical components will strengthen Nortel Networks in delivering a flexible,
all-optical Internet.
	 After two chaotic weeks of bickering and blaming each other for a failed
merger deal with Deutsche Telekom, Qwest CEO Joseph Nacchio said his company
is still committed to its merger with US WEST. Nacchio and US WEST Chairman
Sol Trujillo have both said that they expect the merger to close by the end
of the year, squelching rumors that either company is trying to delay merger
approval past the December 31 deadline. Iowa and Colorado recently cleared
the deal, however, it is still waiting for the regulatory thumbs-up from six
of the states where US WEST does business.
	 A story in the Sunday Telegraph reported that BT is gearing up to make a
play for Telefonica. If such a move is pulled off, BT would be vaulted into
powerful standing within the European telecom marketplace. The British
company has come under much flack recently for its poor financial
performance, and its inability to cement larger stakes in France's Cegetel
and Spain's Airtel, both of which were partially reeled in by rival Vodafone
AirTouch.
	 Britain's Sunday Telegraph reported that French utility conglomerate
Vivendi is looking to merge its media assets with Cox Communications and
Seagram. The three companies have allegedly been in negotiations for some
time and are close to announcing a deal. The French company has come under
fire from shareholders to split its media assets from its utilities arm, and
a deal with Cox and Seagram would create a telecom group worth about $100
billion.
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Missy Harvey
Computer Science Librarian
Engineering & Science Library
Carnegie Mellon University
Pittsburgh, PA  15213

http://www.library.cmu.edu/usr/missy/

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