🚀 go-pugleaf

---------- Forwarded Message ----------
Date: Friday, July 14, 2000, 10:46 AM -0400
From: Faulkner Information Services <mailserver@faulknerinfo.com>
To: ???
Subject: Faulkner Comm Flash 07/13/00 - (Part 2 of 2)


Broadband/Cable Networking
The Massachusetts Coalition for Consumer Choice and Competition on the
Internet received word that America Online has gave it a written cable open
access commitment to open AOL Time Warner's Massachusetts broadband cable
systems. Under the new agreement, AOL Time Warner cable modem customers
will have the right to choose among multiple ISPs. 

Bell Atlantic is now offering subscribers to Intel's WebOutfitter service a
free DSL modem and one month of Personal Infospeed DSL service. The offer
also includes Bell Atlantic.net Internet access - a total combined value of
$138.95. 

CableLabs' OpenCable Review Board verified the interoperability of digital
removable security devices from Motorola and Scientific-Atlanta meeting the
FCC deadline. These devices, point-of-deployment (POD) security modules,
are designed to enable manufactures and retailers to sell interoperable
navigation devices, such as set-top boxes and integrated digital television
sets. 

Corvis and Williams Communications completed the longest all-optical
terrestrial communications transmission in history. Using Corvis'
integrated suite of all-optical networking products, data was transmitted
on 2.5 Gigabits, optical signals across a more than 3,200-kilometer route
on the Williams fiber-optic network without electrical regeneration.
Further testing will continue on Corvis' all-optical products.

Covad Communications, announced the deployment of a fully automated
loop-ordering process with GTE, US WEST, Ameritech, and Southwestern Bell.
Covad reports that the electronic bond with the four local phone companies
is designed to speed-up and simplify installation of DSL lines at a cheaper
price. Covad also began offering service to customers in Las Cruces and
Santa Fe, New Mexico. 

Cox Communications and Pulte formed an alliance to provide broadband
communications services at Springfield Lakes, a Pulte master planned
community in Chandler, Arizona. Cox Communications Phoenix will provide the
new community with digital cable television, local and long distance
telephone services, high-speed data transmission, video-on-demand, and
other related communication services. 

IPaxess and Time Warner Cable, San Antonio, announced a strategic
partnership to enable the cable company to offer the VocalWare IP remote
access service to their end-user cable modem business accounts. The
companies report that VocalWare IP gives remote workers simultaneous access
to the corporate LAN, Internet, e-mail service, faxes, and phone calls on a
single connection. TimeWarner will install the new servers on site at the
business customer's location and implement the virtual office capabilities. 

RCN received regulatory approval to construct its high-capacity broadband
network in Beverly Hills and Gardena, California. The company reports that
upon completion, the RCN network will offer to its customers bundled phone,
cable, and high-speed Internet access services to approximately 35,000
homes in the two communities. 

SBC Communications introduced a do-it-yourself kit designed to eliminate
long waits for residential high-speed Internet connections installation.
Included in the kit will be a modem and all the cables and networking cards
needed to plug a computer into a DSL connection, along with step-by-step
manuals detailing the process. The kit's release is in response to an
increasing demand for DSL connections. 

Sedona Networks announced that Mitel joined Sedona's Internetworking
Partner Program that is aimed to broaden their Services Internetworking
Architecture (SIA). The Sedona SIA will be tested for interoperability with
Mitel's SMART-1 I2AD (Intelligent Integrated Access Device). The Mitel
device features IP routing and VoDSL transport to create new functionality
for VoDSL carrier services. 

Sniffer Technologies and Digital Lightwave joined forces to deliver
services that manage, monitor, and analyze optical network infrastructures.
Sniffer will merge its network and application management technology with
Digital Lightwave's DWDM analyzers. Instead of focusing on provisioning
network services and reports on the volume of traffic traversing the
network, the integrated service enables service providers to diagnose
traffic problems in real-time for IP-based services.

After launching broadband services in Phoenix, Sprint is launching service
in Tucson, its second wireless broadband market. The company's service,
Sprint Broadband Direct, provides two-way, high-speed broadband Internet
access using Sprint EarthLink service. Broadband Direct will compete
directly with cable modems and DSL in the same cities. 

Effective July 1, Verizon Communications is slashing prices for its
high-speed Internet services by as much as 20 percent in certain regions.
The rate for DSL service in Northeastern and Mid-Atlantic states dropped
from $49.95 to $39.95 per month. The new pricing plan will allow Verizon to
better compete with cable operators like AT&T and Time Warner offering the
same technology for about $40 per month.  



Internetworking
3Com plans to launch a networking system that uses existing copper-wire
telephone lines to provide broadband Ethernet services to hotels,
multitenant offices, and apartment and condominium complexes. The Visitor
Community Network system will carry voice, video, and data packets over
existing copper wires at speeds of 10M bps for up to 4,000 feet without any
infrastructure upgrades and without adding software to the user's desktop.  

Cisco Systems introduced three enhancements to its Cisco 7500 series
high-end routers: the Versatile Interface Processor 4 (VIP4), the Route
Switch Processor 8 (RSP8), and the MIX-Enabled Chassis. The company claims
these enhancements greatly improve the capacity and performance of the
Cisco 7500 series routers.  



Network/Systems Management
Computer Associates reported that the Microsoft Partner Solutions Center
(MPSC) selected CA's Unicenter TNG as the enterprise management platform to
control its core infrastructure. CA will also provide advanced network
management services for secure e-business environments. 

Micromuse launched the Netcool/Precision version 1.0. The application is
based on technology obtained in Micromuse's acquisition of Calvin Alexander
Networking (CAN), and is fully integrated with the Netcool ObjectServer. In
realtime, Netcool/Precision allows operations center personnel to pinpoint
Layer 2 and Layer 3 faults down to the port/slot address. 

TTI Telecom, in conjunction with Tivoli Systems, will install an advanced
Network Management System (NMS) to be supplied to Telstra, the national
carrier of Australia. TTI Telecom will install a Netrac-based service to
provide advanced security and management for the thousands of Telstra
users. Tivoli, via IBM Global Services, will provide the local support,
implementation and value-added services.  



Security
3Com introduced a service that secures data transmitted over a wireless
LAN. The service adds Layer 3 tunneling, authentication, and encryption to
the company's AirConnect 11M bps Wireless LAN. The SuperStack II Router 400
supports up to 256 simultaneous secure Layer 3 tunnels. 

Security monitoring service Counterpane Internet Security joined forces
with Lloyd's of London to offer Counterpane customers insurance against
loss of revenue and data due to network security breaches. The policy can
be used to insure companies for up to $100 million in losses. 

RSA Security and Baltimore Technologies developed interoperability between
their PKI products, Baltimore UniCert and RSA Keon. UniCERT manages the
issuance of digital certificates within a Public Key Infrastructure with an
open, standards-based architecture. Keon supports digital certificates from
any standards-based certificate authority.



Storage
Hewlett-Packard introduced Sun Solaris support for storage consolidation.
Sun Solaris support is based on HP SureStore E XP Disk Arrays and HP
SureStore E Tape Libraries. In addition, HP expanded its Open SAN
initiative and enhanced its Web-based SAN management tools.  



Regulatory News
The United States put pressure on Japan to settle a telecom dispute quickly
as President Clinton stated that he was keen to see a deal. After
Washington dismissed Japan's three- year 22.5 percent cut in rates, the
world's two largest trading partners will resume talks and sources say
claim that they are expected to settle by July 17, 2000. 

AT&T filed a complaint with regulators against rival Bell Atlantic claiming
that the company illegally steered New York customers to its own new
long-distance telephone service. The complaint states that Bell Atlantic,
now part of Verizon Communications, only told customers about its own
long-distance service, not other carriers as required by federal
regulations. AT&T asked the FCC to prohibit Bell Atlantic from marketing
its long-distance until it develops a compliance plan and hires an
independent compliance officer. 

The auction for third-generation wireless licenses in the Netherlands began
July 6, but the government is doubtful that the auction will bring in the
$8.61 billion it originally expected. There are eight firms competing for
the five licenses, but the incumbent wireless providers--KPN Mobile, Ben,
Libertel, Telfort, and Dutchtone--are seen as likely winning parties. In
fact, VersaTel is so irked by the fact that the number of licenses being
auctioned coincidentally matches the number of incumbent wireless providers
that the company is seeking a legal review of the auction by both the Dutch
government and the European Commission. VersaTel, Nogenta Swedish
Acquisitions, and Hutchison 3G Netherlands are the other three bidders. 

Oftel, the British telecom regulatory agency, ordered BT to stop
cross-subsidizing its wireless providers and its network division, saying
that such actions are prohibiting competition. This Oftel decree is the
culmination of an investigation began in July 1999. 

DDI, NTT DoCoMo, and the J-Phone companies secured third-generation
wireless licenses in Japan. The nine J-Phone firms plan to begin offering
3G services in select markets in December 2001. 

Senator Ernest Hollings introduced a bill that would restrict the transfer
of US telecommunications licenses to any foreign company more than
25-percent owned by a foreign government. The FCC would have the right to
waive the legislation if it deems that an acquisition would be in the best
competitive interests of consumers and the industry. The bill, called the
Foreign Government Investment Act of 2000, does not restrict investment by
private international companies. If this bill is passed, it would stand as
a major roadblock to such major international carriers as France Telecom,
Deutsche Telekom, and NTT from investing in the US. Senator Hollings said
that reports in the Washington Post saying that Deutsche Telekom was
gearing up for a major US acquisition spurred him to introduce the bill.
Deutsche Telekom and NTT are both seen as frontrunners to acquire either
Sprint or MCI WorldCom now that their merger was shot down by both US and
European regulators. The bill was co-sponsored by John Kerry, Byron Dorgan,
Daniel Inouye, and Jay Rockefeller. 

Despite Japan's Post and Telecommunications Minister's urging that a rate
cut for Japanese telecommunications companies be accelerated, NTT is
opposing the action because of its NTT West unit, which will not be able to
generate revenue if the cut in rates takes place within two to three years.
The Japanese government is endorsing the rate cut because of its feud with
the US government over telecom rates. The US wants an immediate 41 percent
decrease in rates, but the Japanese government offered a 22.5 percent cut
over four years. 

The Japanese and US governments are expected to come to a compromise over
NTT's interconnection rates, an issue that has been a hot topic of dispute
between the two nations. NTT's iron grip on the Japanese telecom market has
members of the Parliament there calling for a breakup of the company
similar to the divestiture of AT&T. The company now is pushing for
regulatory approval to allow the regional divisions to enter the mobile and
long distance telephony markets, clearance to remove service obligations to
certain geographical regions, and full privatization. 

SBC Communications received FCC approval to offer long-distance calling in
Texas. The approval marks only the second time a regional Bell telephone
company has secured permission to provide long-distance calling to its
local customers. 

The Washington Utilities and Transportation Commission made public a
once-secret agreement between US WEST, Qwest Communications, and AT&T. In
an April agreement, AT&T agreed to withdraw its opposition to the merger of
US WEST and Qwest in each of the states that had jurisdiction over the
deal. In exchange, US WEST and Qwest agreed to refrain from supporting
mandatory open access in the same states. The companies were opposed to
publicly releasing the document, but relented when an appeals court ruled
that the city of Portland could not require AT&T to open its cable lines to
rivals. An AT&T spokesperson said that because the ruling eases the
concerns of the open access controversy, the company was willing to let the
agreement become public. 

The European Commission extended its deadline to rule on Vizzavi to July
20. Vizzavi is a joint venture between Vodafone AirTouch, Canal Plus, and
Vivendi that will establish a multi-access Internet portal.  



Financial News
The FCC announced a public hearing on the proposed merger of AOL and
TimeWarner. Gerald Levin, CEO and chairman of TimeWarner, and Steve Case,
CEO and chairman of AOL, will attend the hearing which is scheduled on July
27, 2000. Already, the FCC has sent the two companies inquiries regarding
instant messaging software, interactive television service, digital cable
roll-out, and stakes in other Internet and cable companies. AOL and
TimeWarner responded with a 50 page document explaining the issues. 

Aspect Communications unveiled preliminary financial results for its second
quarter ended June 30, 2000. Revenues will be approximately $137 million to
$139 million compared to $112 million in the same quarter last year. Aspect
anticipates on reporting earnings per share of between $0.01 and $0.03
compared to a loss of $0.18 per share in 1999. 

In response to a sagging stock price, AT&T is reportedly considering
creating a tracking stock for its consumer long distance business,
according to the Wall Street Journal. The paper also reported that the
company's cable unit might also be a contender for a tracking stock. AT&T
issued a tracking stock for its wireless unit in April. The stock opened
strong and raked in over $10 billion dollars; however, it is now trading
below its initial offering price. The company has also been rumored to be
considering selling the consumer long distance operations. Most of the 6200
positions that AT&T is eliminating this year are in the long distance
division. 

In othr financial news, AT&T will privately sell at least $3 billion global
bonds. The transaction is being arranged by Goldman Sachs and is expected
to include one-year fixed-rate notes and two floating-rate note tranches. 

BellSouth introduced its new Guatemalan plan by investing $200 million over
the next two years to improve wireless phone services in the country.
BellSouth joins Telefonica and Telgua in competition for Guatemalan
customers. The company hopes to expand its Guatemalan long distance, cable,
and Internet services in the future.

Cabletron posted first quarter 2001 revenues of $218.5 million for the
period ended June 3, 2000. This is compared to $203.6 million for the
fourth quarter 2000, ended February 29, 2000. Cabletron posted net losses
of $3.7 million, or $0.02 per diluted share. 

Centigram Communications announced a special stockholder meeting to
consider and approve the acquisition of Centigram by ADC
Telecommunications. The meeting will be held on July 26, 2000. 

Entrust Technologies' shares dropped over 50 percent after the company
reported that its second quarter 2000 earnings will be significantly lower
than Wall Street's expectations. The security firm expects earnings of
$0.02 per share, while analysts had predicted $0.08 per share. These
results are still better than last year's second quarter results. 

France Telecom is considering an IPO for Global One once the global telecom
firm becomes profitable. Global One said it expects to financially break
even in fiscal 2002, and it expects its annual revenues to reach $4.5
billion by 2004. 

Genuity, a subsidiary of GTE, raised approximately $1.9 billion after
selling 173.9 million shares of stock at a price of $11, which is below the
expected $12 - $15 price range. Genuity hoped to use the money raised in
its IPO for corporate expenses and expansion of its network capabilities. 

Globalstar Telecommunications did not repay borrowings of $250 million to
Chase Manhattan Bank, leaving Lockheed Martin, as a partial guarantor, to
pay $207 million to the bank, including interest and bank fees. Globalstar
is now contractually obligated to pay back Lockheed Martin. 

Bill Gates, through his company Cascade Investment LLC, committed
investments, along with others, worth over $1 billion in Craig McCaw's
ICO-Teledesic holding company. Clayton, Dubilier, and Rice plans to invest
up to $350 million in the company. ICO-Teledesic Global will use the
investments to back its wireless Internet satellite communication services,
which are projected for launch in 2003. 

In an effort to join the UMTS (Universal Mobile Telecommunications Systems)
market, Dutch KPN Telecom said that it wanted its E-Plus unit to join a
consortium to bid on German third generation mobile phone licenses. The
announcement is a result of the expected alliance, to obtain a piece of
Europe's UMTS market, between the Netherlands' largest telecoms operator
and its Japanese partner NTTDoCoMo. 

NTT Communications claimed that there were no U.S. National Security
concerns over its $5.5 billion bid for US Internet service provider, Verio.
On Friday, July 7, the Wall Street Journal reported that the FBI raised
national-security concerns about the NTT bid as shares of Verio took a
plummeted on the market. 

RSA Security doubled the number of its authorized shares to 300 million
from 150 million. The company increased its shares in order to prime itself
for possible future acquisitions. RSA also seeks to maintain a stock price
that makes stock splits and dividends possible. 

Finnish Telecom's operator Sonera declined comment on the sale of its 7.9
percent stake in VoiceStream; Sonera described it as a long-term
investment. There have been other reports that Deutsche Telekom and NTT
DoCoMo also expressed interest in buying the stake that is reportedly worth
more than $30 billion.



Legal News
In a report called "Making the Grade", Americans for Competitive
Telecommunications (A.C.T.) issued a failing grade for BellSouth's
inability to open competition in Georgia. The ACT claimed that BellSouth
only met 7 of the 14 points established in the telecommunications act, not
meeting federal requirements and thus stifling local competition. 

Cablevision filed a law suit against Excite@Home, AT&T, Cox Communications,
and Comcast for not seeking consent when AT&T agreed to buy Comcast's and
Cox's shares in Excite. Cablevision wanted in on the deal; in retaliation
Cablevision is suing to block AT&T from getting control of Excite. Days
later, Excite struck back and counter-sued Cablevision. Excite claims that
Cablevision was promoting its own services as a competitor to Excite@Home,
breaking an exclusivity agreement between the companies. Excite is asking
that the 21 million warrants issued to Cablevision be voided, in addition
to monetary damages. 

GTE admitted that it illegally gave millions of dollars worth of
telecommunications services to California customers. The company allegedly
gave free and discounted services to Steven Spielberg and other Hollywood
superstars to obtain entertainment industry contracts. After a mid-1998
audit, GTE claims that they turned themselves in. Currently, the company is
talking with the California PUC to settle these allegations.  



Personnel and Organizational Changes
Artisoft named Steve Manson president and chief executive officer of the
company. Since arriving at Artisoft in 1996, Steve Manson was the company's
general manager and senior vice president. He replaces Paul Thomas, who
left the company in March. 

British Telecom said it laid off 2000 employees all ready, and it will let
go an additional 1000 by the end of September. These cuts represent 10
percent of the company's total workforce, and the majority of them have
been made in middle management. 

Cablevision Systems appointed Norman Goldberg, former CEO and Executive
Vice President of Fortunoff, chief operating officer of the Wiz, the
company's consumer electronics retail subsidiary. Mr. Goldberg will be in
charge of the ongoing integration of The Wiz's entertainment and
telecommunications businesses in digital strategy. 

CenturyTel named Karen Puckett from BroadStream Communications COO and
Executive Vice President. Puckett will be responsible for acquisitions,
marketing, and development of wireline, wireless, and data technology. 

ECI Telecom named Hezy Lapid as President and CEO of ECI's InnoWave
Wireless Systems subsidiary. Lapid had been serving as General Manager of
Mer Industries. Before that post he served ECI Telecom since 1991 as head
of its Network Systems Strategic Business Unit. 

ICG Communications appointed Gary F. Lindgren, former vice president of
Engineering at MediaOne Group, senior vice president of Network Planning
and Engineering. He is responsible for the engineering, design,
maintenance, and construction of the company's broadband network. 

The Board of Governors for INTELSAT elected Maury Mechanick chairman of the
board out of the 28 governors. Mechanick is the vice-president of satellite
systems investment management services at COMSAT and is the US signatory to
INTELSAT. In addition, the board also elected Robin Turner Vice-Chairman,
the position previously held by Mechanick. 

Motient and the Columbia Capital investment group created Motient Satellite
Ventures LLC, a new subsidiary. Columbia Capital is investing $50 million
in the new company, which will utilize the Motient Satellite Network to
enhance Motient's satellite offerings and to develop new applications. 

StorageTek reported that Patrick J. Martin was selected as the company's
new chairman of the board, president and chief executive officer. Martin
succeeds David E. Weiss, after 23 years as Xerox's corporate senior vice
president, where he was responsible for $8 billion in annual revenue. 



----------

To receive your flash via E-mail, contact us at flash@faulkner.com with
your name, company name, phone number, and recipient e-mail address.

New! FACCTs on the Web Now Available.
Faulkner's Advisory on Computer and Communications Technologies is now
available over the web! For information about subscribing to the web- based
version of FACCTs, just send an email message to sales@faulkner.com or call
(800) 843-0460 or (856) 662-2070.


Com-Flash is a biweekly news summary for Faulkner subscribers

For information about your subscription call Faulkner at (800) 843-0460 or
(856) 662-2070 fax: (856) 662-0905
e-mail: faulkner@faulkner.com

Visit FaulknerWeb at http://www.faulkner.com/

Faulkner Information Services
114 Cooper Center 7905 Browning Road
Pennsauken, New Jersey 08109

Copyright 2000. Faulkner Information Services.
   
Should you have any questions, concerns or problems with your flash, please
contact us at: mailto:flash@faulkner.com 

---------- End Forwarded Message ----------