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---------- Forwarded Message ----------
Date: Monday, September 25, 2000, 12:39 PM -0400
From: Faulkner Telecom Weekly <telweekly@faulknerinfo.com>
To: ???
Subject: Faulkner Telecom Weekly Sept 22, 2000




Telecom Weekly 

September 18, - September 22, 2000 

Top Story of the Week

AOL and Time Warner Make Concessions (09/22/2000) 
AOL and Time Warner submitted formal concessions to the European Commission
in an effort to win approval of their proposed merger. The companies
conceded that Germany's Bertelsmann AG would be bought out of AOL Europe.
This move would dissolve a potential music monopoly including EMI, Warner
Music, and Bertelsmann's BMG. Similar efforts will be made to change the
shareholding structure of AOL France, which is jointly controlled by
Vivendi. Vivendi is currently the subject of a separate European Commission
probe into its planned merger with Seagram, owner of Universal Music. Time
Warner pledged not to discriminate against non-AOL affiliated ISPs for the
sale of online music for five years, and will make its music compatible
with at least three software music players not controlled by the merged
companies. Finally, AOL pledged that it will not force content providers to
commit to both AOL and AOL Europe. The Commission confirmed that it
received the concessions and will rule on them by October 24. In the US,
according to the Washington Post, the FCC drafted an approval of the
AOL/Time Warner merger. This comes after AOL and Time Warner used the FCC's
decisions in previous mergers to quell regulatory criticism. In particular,
the companies cited AT&T's acquisition of TCI and MediaOne in which the FCC
ruled that "the merger context is not the appropriate forum in which to
debate an open-access requirement." Nevertheless, conditions in the FCC's
approval draft require AOL and Time Warner to make legally binding
agreements to allow competitors access to their network. However, the FCC
insists that the draft is not the final word in the debate and that the FCC
could still block the deal if the companies did not comply with certain
conditions.  

In other Time Warner merger news, concessions were made to the European
Commission concerning its pending partnership with the EMI Group. Sources
reported that the two companies offered to sell four record labels and four
publishing catalogs. Marconi (France), CMC (Denmark), Mimos (Greece), and
Dro (Spain) would be sold to ensure regulators that the companies would not
dominate the music market. In addition, they agreed to divest all physical
distribution facilities and dissolve all joint distribution agreements in
Europe. The European Commission will rule on the $20-billion joint venture
by October 18. 


Acquisitions, Mergers, and Divestitures

Bankruptcy Court Permits TW Telecom's Purchase of GST (09/22/2000) 
Time Warner Telecom received approval from the US Bankruptcy Court for the
acquisition of substantially all of GST assets for $690 million. The
transaction is expected to close before the end of the year. 

ADC Acquires Broadband Access Systems (09/22/2000) 
ADC acquired Broadband Access Systems for stock valued at $2.25 billion.
Broadband, which delivers high-speed cable data and voice products, was
purchased to create similar products for ADC's venture into the high-speed
Internet market through cable and DSL. The deal is expected to close by the
end of 2000. 

SunTech Acquires Williams TeleServices Unit (09/21/2000) 
Williams Communications announced the sale of Williams Teleservices to
Sunergos Technologies. According to Williams, the company sold its
TeleServices unit because it did not fit into the company's main business
strategy. The acquisition was finalized on August 31, 2000. 

Metrocall Raising Money for PageNet (09/21/2000) 
Metrocall and its partners are raising equity as part of a proposal to
acquire PageNet. The company requested that the US Bankruptcy Court allow
it to submit a proposal plan for acquisition that would compete with Arch
Communications. Partners such as Aether Systems and PSINet have helped
Metrocall to increase its total bid for PageNet to $337.5 million. In
addition, the figure includes money from the sale of SMR licenses to Nextel
Communications, which is becoming an equity investor in Metrocall. The
proposed plan states that PageNet's bondholders would receive $100 million
in cash, 106.8 million common shares, and 81-percent equity in Vast
Solutions. 

BCE Emergis Closes InvoiceLink Acquisition (09/21/2000) 
BCE Emergis successfully completed its acquisition of InvoiceLink. As a
result, BCE Emergis now provides a B2B EIPP solution, which will be
integrated with their other solutions, including electronic procurement and
security. 

Aether Acquiring Motient Business (09/20/2000) 
Motient is selling its retail transportation business to Aether Systems for
an initial $45 million and an additional $22.5 million based on 2001
revenue and other incentives. Aether is acquiring the assets of the
business as well as all of the transportation customers using Motient's
land-based and satellite communications services. 

DoJ Clears Verizon, OnePoint Deal (09/20/2000) 
The US Department of Justice cleared Verizon Communications' acquisition of
OnePoint Communications. OnePoint provides telephone, television, and
high-speed Internet services to apartment buildings in Atlanta, Chicago,
Washington, Denver, Philadelphia, Baltimore, Phoenix, Charlotte, and
Raleigh-Durham. The deal is still under review by the FCC and state
regulators. 

SBC Selling European Assets? (09/20/2000) 
SBC Communications is rumored to be negotiating the sale of most of its
European assets to Telia of Sweden for more than $6 billion. According to
reports, SBC would sell its 42-percent stake in Tele Danmark to Telia for
stock and cash. Other possible divestitures include its 15-percent share of
Cegetel SA of France and its 40-percent stake in Diax Holding of
Switzerland. Earlier this year SBC shed its 30-percent stake in MATAV and
its share in NetCom to Telia. 

Motorola Investing in OpenTV (09/18/2000) 
Motorola is furthering its investment in OpenTV through a stock purchase of
nearly 1.887 million shares of OpenTV stock. After purchasing the shares
from News America, an affiliate of News Corp, Motorola will own a 5.4
percent interest in OpenTV. The two companies agreed to offer Motorola
digital set-tops with OpenTV's middleware. 


Alliances and Joint Ventures

AT&T BIS Selects Liberate Interactive TV Software (09/22/2000) 
AT&T
Broadband announced that it will use Liberate Technologies' interactive
television software in pilot tests of its set-top boxes. The software will
provide Internet properties to television via a set-top box provided by
Motorola. Originally, Microsoft was expected to supply the software for 7.5
million of 10 million planned boxes. However, Liberate was chosen after
delays in the Microsoft software prompted AT&T to search for alternate
vendors. Tests on the software are set to begin later this year. 

DIRECTV and Quokka Sports Partner (09/22/2000) 
DIRECTV and Quokka Sports announced that they will work together to deliver
interactive sports programming to DIRECTV's next generation of set-top
boxes. DIRECTV also made an equity investment in Quokka Sports.

Infonet Selected to Provide GNS (09/22/2000) 
Amanco Brazil and Amanco Argentina selected Infonet's Global Intranet
Services as the foundation for their communications infrastructure. In
addition to supporting both companies' sales and production operations,
Infonet services will support corporate applications, an internal Intranet,
and access to the public Internet. 

Compaq and Siemens Team Up (09/20/2000) 
Compaq and Siemens agreed to provide joint network management solutions for
worldwide wireless customers. The companies will combine Compaq's TeMIP and
Siemens' SPOTS to create the Mobile Integrator for mobile operators. 

Charter Buys Cable Modems from Motorola (09/20/2000) 
Charter Communications agreed to purchase at least 300,00 SURFboard cable
modems from Motorola by the end of 2001. The purchase is part of Charter's
ongoing commitment to products by Motorola, the primary supplier of cable
modems to Charter. 

EFI and PictureTel Partner (09/20/2000) 
Electronics for Imaging and PictureTel announced a partnership to create
and distribute whiteboard and conferencing products. The collaboration will
produce the PictureTel Electronic Whiteboard, which combines traditional
videoconferencing technology with Web-enabled communication and sharing of
whiteboard notes. 

Ericsson in Bluetooth Agreement (09/20/2000) 
Ericsson's Mobile Communications entered into an agreement with Wind River
Systems to integrate Bluetooth wireless technology. Under the agreement,
Ericsson's Bluetooth technology will be integrated into development
software from Wind River. With development software and Bluetooth
technology working together, manufacturers will be able to produce smart
devices, including mobile phones, Internet applications, and digital
cameras. 

COMSAT Signs Satellite Agreement (09/20/2000) 
COMSAT Mobile Communications signed a three-year agreement to provide
satellite services for inflightonline.com. The company will use COMSAT's
air-to-ground communications network to bring Internet and Intranet access
and e-mail to in-flight passengers with laptops and handheld computers. 

NTT Unit Announces Plans With NaviSite (09/20/2000) 
NTT DATA is pursuing a strategic alliance with NaviSite to develop and
provide co-branded managed services in Japan. As part of this relationship,
NaviSite would utilize dedicated space in NTT DATA's Class A Tokyo data
center in order to provide managed hosting services in Japan and make space
and managed hosting services available in NaviSite's US facilities for NTT
DATA's global customers. 

BCE Emergis and HP Team Up (09/20/2000) 
BCE Emergis and HP announced a strategic alliance to deliver a turnkey
version of the Emergis Buyer e-procurement solution to US and Canadian
companies. Mid-market corporate buying organizations will be able to
connect over the Internet with a multitude of suppliers, realizing
significant costs savings for purchased goods and reducing costs related to
time and processing cycles. 

CastPro.com Forms Alliance with Time Warner (09/19/2000) 
CastPro.com agreed to provide Web site content for Time Warner. Under the
agreement, CastPro will allow Time Warner to use its live Web-casting
capabilities. 

Turner South and Cartoon Network Add Subscribers (09/19/2000) 
Turner Broadcasting System reached distribution agreements with AT&T
Broadband, Time Warner Cable, and Comcast to add Turner South and Cartoon
Network to their networks. Turner South will add 1.5 million subscribers,
for a total of 3.3 million. Comcast will distribute Cartoon Network to 1.5
million subscribers in the next year. 

Ivron Joins VTEL's Multi-Vendor Solutions Program (09/19/2000) 
Ivron Systems became a charter member of VTEL's Multi-Vendor Solutions
Program. The agreement grants VTEL the rights to market and distribute
Ivron's videoconferencing products and makes VTEL an authorized service
provider. In return, Ivron agreed to adapt VTEL's SmartVideoNet Manager
protocol and video streaming technology into its products. 

Ericsson in Agreement with Geoworks (09/18/2000) 
Ericsson entered into a cross-licensing agreement with Geoworks in which
both companies will have access to patents, including the Geoworks Flex UI
Patent. Ericsson will be using the patents to develop Internet terminals
and equipment, and Geoworks is adding technologies to its Mobile ASP and
AirBoss Wireless Systems mobile data solutions. With the agreement in
place, users will be able to access wireless personalized services. 

QUALCOMM Enhances Eudora (09/18/2000) 
Under an agreement with Northern Light Technology, QUALCOMM is enhancing
its Eudora e-mail with an online search engine. The agreement grants
Northern Light the exclusive rights to the search engine category within
the Eudora software. 

BCE, Thomson to Create Media Giant (09/18/2000) 
BCE and Thomson announced a joint venture to pool some of their broadcast,
newspaper, and Internet properties into a new company. The venture will
include BCE's CTVV unit, its Sympatico Internet portal, and Thomson's Globe
and Mail newspapers. 

KPNQwest to Enter UK Market (09/18/2000) 
KPNQwest signed an agreement with British Telecom to roll out its
high-speed Internet services in Britain's local markets. The agreement
gives KPNQwest access to BT's raw copper networks and allows the company to
install its own DSL. 


Broadband/Cable Networking

Versatel Eyes German Network Purchases (09/22/2000) 
In an effort to expand its market reach, Versatel is in talks to acquire
fiber-optic networks in Germany. The company has already acquired some
existing networks, including an 80-percent stake in western German
fiber-optic network company KomTel, and aims to expand throughout the
country. Versatel also plans to expand its wireless communication efforts. 

Covad Continues Network Expansion to Oklahoma City (09/21/2000) 
Covad Communications launched its high-speed, DSL-based broadband services
in Oklahoma City. The coverage expansion will reach more than 34,000
businesses and 289,000 residential consumers upon completion of the network
build-out. 

Sprint Launches Broadband Direct in Colorado Springs (09/21/2000) 
Sprint launched its Broadband Direct service for consumers and small
businesses in Colorado Springs. The service provides two-way, high-speed
access to the Internet via fixed-wireless technology. Residential service,
which costs $44.95 per month, offers upstream speed of up to 256K bps and
an average downstream speed of 1M bps. Sprint's fixed wireless technology
has a broader reach than current DSL service offerings, which are limited
to consumers close to the providers' central office. Also, there may be
degradation in speed as the consumers' distance from the central office
increases. Sprint Broadband Direct is available to consumers in the
Colorado Springs area located in line of sight and within 35 miles of the
Sprint transmission tower. 

WorldCom Abandons UK Broadband Effort (09/21/2000) 
WorldCom abandoned its plans to bid for broadband Internet access in
Britain. The Financial Times reported that WorldCom decided not to pursue
permission to access Britain's local exchanges because of frustration with
the process, namely Oftel, the UK's telecom watchdog. WorldCom denied the
rumors, contending that it pulled out for "commercial reasons." RSL
Communications dropped out earlier this week and accused Oftel of failing
to ensure a fair market for rivals of British Telecom, which now controls
the last mile of copper wires connecting homes to the network. Global
Crossing is also suspected of withdrawing because Oftel is favoring BT. 

Telmex Inaugurates Undersea Cable (09/21/2000) 
Telmex inaugurated an undersea, fiber-optic cable connecting North,
Central, and South America. The 2805-mile Maya 1 Undersea Cable system,
which connects seven points around the Caribbean, is the only one that
connects all three parts of the Americas. Telmex said the Maya 1 system has
an initial capacity of 20G bps and can be upgraded to a capacity of 60G
bps, sufficient speed to transmit 725,760 simultaneous calls.

AT&T BIS Offers Cable Phone Service (09/20/2000) 
AT&T
Broadband introduced cable phone service to more than 170,000 homeowners in
the St. Paul area. This figure represents almost one-third of the 600,000
homes in the area that receive AT&T cable, all of which should have access
to phone services via cable by next year. The offer follows AT&T's
acquisition of MediaOne and a $250 million investment to upgrade the
7500-mile Twin Cities network. 

Adelphia to Install Fiber in Indianapolis (09/19/2000) 
Adelphia will invest $25 million to install 200 miles of fiber-optic cable
in the Indianapolis area. Adelphia also will open offices in Indianapolis,
creating about 100 jobs. The network, which will provide telephone and
high-speed Internet access to small and mid-sized businesses will be ready
by April 2001. 

C&W Chooses SmartEdge for Optical Networking Platform (09/18/2000) 
Redback Networks announced that Cable &Wireless would deploy its optical
networking platform, SmartEdge, across their fiber-optic network throughout
the US. The integration of the SmartEdge platform enables C&W to support
the convergence of voice, data, and Internet services onto a common
infrastructure. The Redback platform is available on a global basis for
deployment by C&W.


CLECs

Intermedia Launches IntermediaOne for Businesses (09/21/2000) 
Intermedia Communications announced the arrival of IntermediaOne, a fully
integrated voice, Internet, and data communications platform for
businesses. IntermediaOne offers services from unified messaging to
high-speed Internet, local to long distance, and broadband data to Web
hosting.

Level 3 Launches Services in Hong Kong (09/21/2000) 
Level 3 Communications announced it completed its first advanced data
center facility in Asia a full quarter ahead of schedule. Upon completion
of the facility, the company introduced its low-cost bandwidth services to
Internet and Web-based companies in Hong Kong. 


Financial News

Teledesic and ICO Lose Big Money (09/21/2000) 
The soon-to-be-merged Teledesic and New ICO have collectively lost
approximately $1 billion in an attempt to create a satellite
telecommunications system. The losses come before either company has
launched a single satellite. The merger is expected to close in November,
but New ICO still needs to raise $2.8 billion before it can commence
services. 

BT Reveals Wireless Figures (09/20/2000) 
British Telecom said it expected its BT Wireless unit to report turnover of
$9.56 billion in 2000/01 after taking control of Germany's Viag Interkom.
BT Wireless would have a proportional EBITDA of 900 million pounds once it
obtains a combined 90-percent stake in Viag in January 2001. These are the
first figures the company has released for BT Wireless, a new division
created in April as part of a restructuring. The units is dominated by BT
Cellnet, BT's mobile phone unit, which is valued at about $35 billion. 

Telstra To Cut Jobs (09/20/2000) 
Telstra plans to consolidate its call center operations and to cut roughly
4000 jobs over the next three years for an estimated cost savings of about
$223 million. Telstra aims to reduce the current 280 call centers to
between 20 and 35. The company reported a net profit of $1.99 billion for
the fiscal year ended June 30, up 5.5 percent from $1.89 billion in the
previous year. 

EchoStar Sells $1billion Senior Notes (09/18/2000) 
EchoStar sold $1 billion of seven-year senior notes. EchoStar expects to
use sales proceeds to build, launch, and insure satellites, and for future
acquisitions. 

Orbcomm Files for Chapter 11 (09/18/2000) 
Orbcomm Global, a joint venture between Orbital Services and Teleglobe,
filed for Chapter 11 bankruptcy protection to help restructure its
business. In August, Orbcomm missed an interest payment of a $170-million
loan and cut 200 jobs between June and August. The company said it expects
to continue operating its satellites and ground facilities during the
restructuring. 


Internet/Intranet

Versatel Subsidiary Suspends "Flat Fee" Offering (09/21/2000) 
Versatel announced that its German subsidiary, Sonne, is suspending its
Flat Fee online service offering. Current law in Germany does not require
Deutsche Telekom to provide a wholesale connection rate to ISPs. As a
result, the flat-fee service offered by Sonne is not profitable. Sonne will
continue to evaluate the viability of a flat-fee service offering in
conjunction with German regulator's recent announcement of an investigation
into DT's wholesale connection rates for ISPs. 

C&W, Microsoft, and Compaq Form ASP (09/21/2000) 
Cable &
Wireless is partnering with Microsoft and Compaq to launch an ASP. The new
company, called a-Services, will target businesses with 10 to 1000
employees and will offer hosted versions of a wide range of applications,
such as Microsoft Office, security and training services, sales force
automation, e-commerce, storefronts, and mass-file storage. 

IPVoice.com Launches Flat25 Calling Plan (09/20/2000) 
In seven US cities, IPVoice.com is launching its Flat25 Residential Long
Distance Calling Plan, which provides Internet telephony services at a flat
rate of $25 per month with a $50 sign-up fee. 


IXCs

AT&T Accuses Qwest of Interrupting Service (09/21/2000) 
AT&T accused Qwest Communications of disconnecting equipment installed by
AT&T in 13 separate locations in Bellingham, Washington and barring AT&T
from accessing certain locations. By refusing competitors access to inside
wiring, Qwest is denying residents the option of choosing a local telephone
service provider. AT&T is likely to file a formal complaint with the
Washington Utilities and Transportation Commission. 

Japan Telecom to Match NTT, KDDI Rate Cuts (09/21/2000) 
Japan Telecom said it would cut its domestic call rates on October 1, to
match those charged by rivals NTT and KDDI. KDDI said last week it would
match local call rates charged by NTT, the former state-owned monopoly,
which still dominates the domestic phone market. On August 31, NTT regional
units said they would cut local call rates by an average 40 percent in
November.

Qwest Moves to Increase Competition, Drops Lawsuits (09/20/2000) 
Qwest announced policy changes that will allow competitors access to its
local markets. The company's new policies will benefit CLECs, which will be
able to increase deployment of competitive services. In addition, Qwest
began offering a Performance Assurance Plan to measure its performance when
offering wholesale services to CLECs. The company also dropped 17 lawsuits
filed by its merger partner US WEST opposing interconnection obligations
imposed by regulatory agencies. 


Legal News

Digex Holder Sues to Block WorldCom/Intermedia Merger (09/22/2000) 
TCW Technology, a Digex shareholder, is suing to block the acquisition of
Intermedia by WorldCom. In papers filed in a Delaware court, the plaintiff
accused Digex, its board, and Intermedia of breaching their fiduciary
duties and usurping an unspecified corporate opportunity. Through the
$3-billion stock deal, WorldCom will receive Intermedia's 55-percent equity
interest in Digex and 94 percent of its voting stock. The transaction is
expected to close in early 2001. 

DBS Firms Sue Over Must Carry Provision (09/22/2000) 
Direct Broadcast Satellite (DBS) firms DIRECTV and EchoStar filed suit
challenging a federal law requiring them to carry all local broadcast
stations seeking carriage in a market where they offer one local station.
The companies argued that the must-carry provision, which was created to
preserve local broadcasting in cable monopolies, was unconstitutional and
should not apply to their service because they do not possess concentrated
local market power. Furthermore, they argued that under the must-carry
provision, only the largest TV markets can be serviced with local channels,
limiting consumer choice. 

NTT to Open Fiber-Optic Networks to Rivals (09/20/2000) 
Racing to beat a government drive to loosen its virtual monopoly, NTT said
it would allow rival carriers to use it fiber-optic network. NTT will
discontinue its practice of leasing only fiber-optic lines and switchboards
as a package even though clients may not need the latter. The Japanese
Ministry of Posts and Telecommunications said it would require NTT's
regional carriers to open their fiber-optic networks to competitors as
early as this year. 

WorldCom to Appeal EU Decision (09/20/2000) 
In an attempt to lay the groundwork for future deals, WorldCom is appealing
the European Union's decision to block the IXC's $129-billion acquisition
of Sprint. WorldCom spokesperson Peter Lucht said that the company does not
want to revive the Sprint deal but instead wants to challenge the
"outdated" arguments on which the commission based its decision. WorldCom
has until September 28 to file the appeal. 

EchoStar Sues Fox (09/18/2000) 
EchoStar sued Fox Family Worldwide to dissolve ties with the struggling Fox
Family Channel. EchoStar notified Fox last October that it would stop
broadcasting the Family Channel and that it would stop paying monthly
programming fees. The companies are at odds over a 1995 distribution
agreement between EchoStar and International Family Entertainment, the
Family Channel's former owner. According to the agreement, either party may
dissolve the relationship in the event of an ownership change. 


Personnel and Organizational Changes

NTT Regional Carriers to Cut 6,500 Jobs (09/22/2000) 
NTT regional carriers, NTT East and NTT West, plan to cut a combined 6500
jobs before 2002. NNT West would seek 3500 voluntary retirements during the
two-year period, while NTT East would seek 3000 voluntary retirements
during the same period. The cuts would aid NTT's plans, announced last
November, to slash 21,000 jobs by March 2003. 

Xerox Veteran Leaves Xerox for BT (09/22/2000) 
Pierre Danon, president of Xerox's general market operations for Europe and
North America agents, is leaving Xerox to join British Telecom. Jean-Noel
Machon replaces Danon. 

Chairman, CEO of ICG Resigns (09/21/2000) 
After one month on the job ICG Communications' CEO and Chairman Carl E.
Vogal tendered his resignation. In addition, both Gary Howard and Thomas
Hicks stepped down from their positions on the company's board of
directors. 

INTELSAT Makes Changes (09/21/2000) 
In anticipation for the consortium's privatization scheduled to occur in
April 2001, INTELSAT announced changes in its organizational structure.
Part of the restructuring plan includes creating a Strategy and Business
Development Division and a Global Operations center controlling all of
INTELSAT's technical operations. 

Klein to Resign (09/21/2000) 
The leader of the antitrust division and of the case against Microsoft is
resigning from the Department of Justice at the end of September. In a
statement released by the DOJ, Joel Klein, an Assistant Attorney General to
Janet Reno, said that he is leaving to seek "new challenges." Since he was
appointed by President Clinton, Klein would most likely have been replaced
after the election in November. Doug Melamed, who served as Klein's
Principal Deputy during his five-and-a-half year term, will serve in
Klein's place until a new appointment is made. Klein's battle with
Microsoft led to a decision from US District Judge Thomas Jackson to
breakup the company. 

AT&T Opens Data Center in Arizona (09/21/2000) 
AT&T opened an Internet Data Center in Mesa, Arizona in response to the
increased demand for high-speed, scaleable Web hosting services. Customers
will have access to AT&T's portfolio of managed hosting services including
network and bandwidth management, hardware and operation system management,
data base management, storage services, intelligent content distribution
service, and managed security and firewall services. The company plans to
open an additional four centers this year, with 13 centers operational by
year's end. 

Second T-Online Board Member Resigns (09/21/2000) 
Ralf Eck, a board member at Deutsche Telekom's T-Online unit, resigned,
less than one month after the ISP's chief executive, Wolfgang Keuntje,
tendered his walking papers. Eck was responsible for product marketing. The
head of corporate communications at DT, Burkhard Grassman, will replace Eck.

Excite CEO Resigns (09/20/2000) 
George Bell, chairman and CEO of Excite@Home, resigned. It is yet to be
seen how much power controlling shareholder AT&T will wield in selecting
his replacement. 

FT exec replaces Barksdale (09/18/2000) 
Jean-Jacques Damlamian, a group executive vice president for France
Telecom, will replace former Netscape Communications CEO James Barksdale on
the Palm Board of Directors. Damlamian's election highlights Palm's efforts
to drive handheld industry developments in wireless and communication
technologies internationally. 

Prodigy's Salameh Leaving (09/18/2000) 
Prodigy's Chairman Samer Salameh stepped down from his position to assume
the role of Managing Director of Operations in the US and Canada for
Telmex. President and CEO Charles Roesslein will assume his post. 


RBOCs

Verizon Eliminates Former GTE Fee in PA (09/22/2000) 
Effective September 23, Verizon Communications will eliminate the monthly
$1.50 touch-tone calling charge that former GTE customers in Pennsylvania
pay. The $2.50-per-line fee will be eliminated for business customers in
the state. 

BellSouth Introduces Essentials Package (09/21/2000) 
In response to customer demand for bundled calling features, BellSouth
introduced its BellSouth Essentials package, a combination of the most
commonly used calling features. BellSouth Essentials groups call waiting,
call return (*69), voice mail, call forwarding, *98 voicemail access, and
message waiting indicator. The package costs $9.95 per month.

Ameritech Announces Service Initiative, Fined (09/20/2000) 
Ameritech plans to improve installation and repair times throughout its
five-state region, but it is too little too late according to the Ohio
Public Utilities Commission. Following Ameritech's announcement that it is
putting 88 more employees on the job repairing and installing phone lines
in Ohio, the PUC ordered the company to reimburse consumers $5.1million for
missed or late phone repair service. Phone repair service in Ameritech's
region had slipped from an average of 29 hours in 1999 to an average of 160
hours in August 2000. As part of the recent service initiative, Ameritech,
whose reputation has taken a beating since it was acquired by SBC
Communications in October 1999, is adding 615 technicians to the workforce
in its five-state region this year, with another 3300 planned for next
year. In addition, other SBC companies are sending 343 network technicians
to the Ameritech region and about 615 workers are being shifted from
construction to installation and repair work tasks. As a result of the
recent poor quality of service, Ameritech is also at risk of being slapped
with a $34-million fine by the Illinois Commerce Commission. If telephone
service standards do not improve in Ohio by 2002, the PUC is threatening to
hit the company with a hefty $122-million fine. 


Regulatory News

Verizon Files to Offer LD in Massachusetts (09/22/2000) 
Verizon Communications filed an application with the FCC to offer long
distance services to about three milling residential and business consumers
in Massachusetts. A company spokesperson said that Verizon is confident
that it is in compliance with the 14-point checklist specified in the 1996
Telecom Act. The FCC has 90 days to review the filing, during which time
the US Department of Justice and the Massachusetts Department of
Telecommunications and Energy will make their recommendations. 

Verizon Moves to Raise Rates (09/21/2000) 
The New Jersey Board of Public Utilities began a series of hearings on
Verizon Communications' petition to increase its basic rate from $8.19 a
month to as much as $17.50. Verizon, which provides about 98 percent of the
local telephone service in the state, wants to begin offering packages with
built-in services such as caller ID and call waiting, forcing consumers to
pay for services that they might not want. Opponents of the service
packages in question argue that some telephone lines are strictly used for
Internet service and never carry voice traffic and therefore do not require
premium services. In addition, Verizon is asking the BPU to declare New
Jersey a competitive market so the company can charge deregulated rates. In
response to Verizon's effort, assemblypersons from New Jersey are proposing
new legislation (A-633) that would require Verizon meet the federal
14-point checklist as a prerequisite to the BPU's renewal of the company's
alternative regulation plan. 

BellSouth Inflating Access Fees? (09/20/2000) 
Telecom companies anxious to begin offering local services in Florida
accused BellSouth of inflating access prices to stifle competition. A
coalition of long distance carriers, namely AT&T and WorldCom, and upstart
companies petitioned the Florida Public Service Commission to intervene and
to cut access charges by as much as 50 percent. The FPSC is expected to
restructure rates in the state in the first quarter of 2001. BellSouth
contends that the charges are justified and that it should be reimbursed
for its investments. 

DT Probed on Web-Service Prices (09/18/2000) 
German regulator RegTP investigated accusations that Deutsche Telekom
discriminates against competitors and that it sets access fees too low. The
probe will examine whether DT discriminates against its rivals by charging
its own provider less, and whether it is setting its fee so low that rival
networks cannot compete. RegTP's probe could be a first step toward
establishing flat fees across Europe. 


Satellite Communications

DIRECTV Offers Local Channels in Cincinnati (09/20/2000) 
DIRECTV announced that it will offer local broadcast network channels and a
national PBS feed to customers in Cincinnati markets.

Globalstar Canada Expands (09/20/2000) 
Globalstar Canada expanded roaming to cover customers in Australia and
South America and increased existing coverage in the Caribbean, Alaska, and
the North Atlantic. Canadian customers will be able to benefit from an
increased number of installed gateways in the company's coverage areas. 

DIRECTV Offers Service in Hawaii (09/18/2000) 
DIRECTV launched service in the Hawaiian Islands, offering residents a
choice of four programming packages and access to 110 channels. Equipment
will be sold through local independent retailers such as Harmer
Communications, MicroComm, Dish Hawaii, Chocks TV &Appliance, and Jack Wada
Electronics. Other authorized agents will soon follow. 

INTELSAT Chooses US (09/18/2000) 
The Board of Governors for INTELSAT announced that its wholly owned
privatized service company intelsat would be headquartered in the District
of Columbia. The decision should be approved by the INTELSAT Assembly of
Parties and privatization will take place most likely in April 2001. The
FCC will authorize licenses for all C- and Ku-band satellites after
privatization is complete. 


Wireless Communications

Juno Brings Service to New Markets (09/21/2000) 
Juno Online Services, along with Metricom, expanded Juno's high-speed
wireless Internet service to cover seven new markets: Baltimore, Dallas,
Houston, Philadelphia, Phoenix, San Francisco, and Manhattan. Juno Express
was launched in July in Atlanta and San Diego, and it provides wireless
access at 128K bps. 

Verizon Wireless Sold Through Best Buy (09/21/2000) 
Verizon Wireless is offering its services through Best Buy retail locations
across the nation. Starting in October, 350 Best Buy stores will offer
cellular phone service and wireless Internet access plans in addition to
the existing two-way messaging and paging relationship between the two
companies. 

Ericsson Becomes 3G Supplier to TIM (09/20/2000) 
Telecom Italia Mobile chose Ericsson for the supply of a 3G WCDMA system.
With a UMTS auction being held in October, TIM is planning the launch of 3G
WCDMA-based services and has been testing 3G services with Ericsson during
the past year. 

Motorola Bringing GSM to China (09/20/2000) 
Beijing Mobile Communications and Shanxi Mobile Communications awarded
Motorola's Global Telecom Solutions Sector with contracts worth over $30.2
million for the expansion of GSM networks in Beijing and Shanxi. To
increase capacity on the networks, Motorola is installing its Horizonmacro
and Horizonmicro GSM infrastructure solutions. 

Motorola Receives Bluetooth Certification (09/20/2000) 
The Bluetooth standards body granted Motorola full certification for two of
its PC products. The Motorola PCMCIA card and the USB accessory are two
Bluetooth-enabled DigitalDNA PC add-on solutions and are the first to
receive such certification and the first to be allowed to carry the
Bluetooth trademark. Both products provide wireless links carrying data and
voice between PCs and Bluetooth-enabled devices, such as handheld
computers. The company was granted certification by the Bluetooth standards
body after a qualification process found the products conform to Bluetooth
specifications. 

Nokia Wins Contracts in China (09/20/2000) 
Through its ventures in China, Beijing Nokia Mobile Telecommunications and
Beijing Nokia Telecommunications, Nokia is providing GSM expansion services
to China Unicom. Under the $100-million contracts, Nokia is delivering its
i-series network products, which include switching centers, base stations,
and controllers, to increase capacity for the Chinese operator's mobile
network in Shanghai, Anhui, Hunan, and Gansu. 

Animated Instant Messages for NTT i-mode Phone (09/20/2000) 
FunMail announced the completion of tests of a new, wireless Animated
Instant Message product for the NTT DoCoMo i-mode system in Tokyo, Japan.
When deployed, wireless FunMail will allow i-mode subscribers to send
animated IMs from one i-mode phone to another, and also to other wireless
and desktop devices. Worldwide cellular and PCS operators with
multi-billion dollar investments in 2G digital systems are potential
customers for the new product. 

Proximus-Belgacom Launches First Commercial WAP (09/20/2000) 
In conjunction with Siemens ICN, Phone.com was selected by
Proximus-Belgacom Mobile to implement a commercial WAP-based platform.
Under the terms of the agreement, Siemens is providing a mobile Internet
solution to Proximus using the Phone.com UP.Link Server Suite. Launched in
April, Proximus is offering commercial wireless Internet services to over
2.5 million mobile customers throughout Belgium. 

BT to Offer Cellphone Batteries (09/20/2000) 
Electric Fuel announced that British Telecom will distribute Electric
Fuel's line of Instant Power cellphone batteries through their BT retail
shops. BT Retail is the second major UK cellular retailer to carry Electric
Fuel's Instant Power line of batteries. 

Ericsson Signs Agreement with J-Phone (09/18/2000) 
The J-Phone Group signed an agreement with Ericsson for the provision of
systems and support for a commercial launch of the group's 3G WCDMA network
in Tokyo, Osaka, and Nagoya. Using the networks, the J-Phone companies will
be able to bring wireless multimedia applications such as Internet and
intranet, videoconferencing, and other interactive services to customers. 

Comments or suggestions about Telecom Weekly may be sent to Tammy Boyle. 
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