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Started by Missy Harvey
Fri, 11 Aug 2000 00:00
Faulkner Telecom Weekly Aug 11, 2000
Author: Missy Harvey
Date: Fri, 11 Aug 2000 00:00
Date: Fri, 11 Aug 2000 00:00
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---------- Forwarded Message ---------- Date: Friday, August 11, 2000, 3:49 PM -0400 From: Faulkner Telecom Weekly <telweekly@faulknerinfo.com> To: ??? Subject: Faulkner Telecom Weekly Aug 11, 2000 August 7, - August 11, 2000 __________________________________________________ Top Story of the Week Verizon and NorthPoint To Merge DSL Businesses (08/08/2000) Verizon Communications, the recently merged Bell Atlantic/GTE, agreed to acquire a controlling interest in NorthPoint Communications and to combine Verizon's and NorthPoint's DSL operations. Verizon will invest about $800 million to create the "new" NorthPoint; $450 million will fund NorthPoint's capital expenditures and operations, and $350 million will go to current NorthPoint shareholders. The new NorthPoint will include executives from both companies and will be resold through the Verizon Online operation under the NorthPoint name. The move gives Verizon access to Blast, NorthPoint's broadband content delivery platform, as well as access to markets outside of its normal operating region. The merger announcement came just minutes after Verizon released a disappointing earnings report. Profits, excluding one-time items, rose to $1.97 billion, or $0.72 per share, compared to $1.87 billion, or $0.67 per share. Market analysts had predicted EPS would come in around $0.83. NorthPoint's revenues for the second quarter increased almost tenfold to $24.4 million, compared to $2.5 million for the same quarter the previous year. Net loss was $112.1 million, or $0.85 loss per share, compared to net loss of $37.9 million, or $0.44 loss per share. Acquisitions, Mergers, and Divestitures WSJ Reports NTT-Verio Deal Cleared (08/11/2000) The FBI determined that NTT Communications' $5.5-billion bid to acquire US ISP Verio does not threaten US national security, clearing the way for the companies to work on closing the deal, according to the Wall Street Journal. NTT's offer to acquire the 90-percent of Verio it does not already own was set to expire for the fourth time on August 14. Motorola Completes Zenith Acquisition (08/10/2000) Motorola announced that its Broadband Communications Sector completed the acquisition of the Network Systems division of Zenith Electronics. Zenith Electronics is a supplier of electronic products such as digital DTV, and its Network Systems division provides DVB satellite receivers. With the acquisition complete, Motorola is folding the division into its Satellite and Broadcast Network Systems unit, increasing its customer base and enhancing its products. Zenith's Network Systems division provides services to customers around the world, and Motorola will now have access to international markets in Hong Kong, India, New Zealand, and Latin America. In addition to its satellite technology, Zenith Network Systems also provides MMDS technology in the US. France Telecom Sells Noos to NTL and MSDW (08/09/2000) France Telecom agreed to sell its 49.9-percent stake in Noos, a joint venture that combines the cable operations of the French carrier with that of utility company Suez Lyonnaise des Eaux, to NTL and Morgan Stanley Dean Witter for $1.2 billion. France Telecom sought to divest its stake in Noos because Suez Lyonnaise plans to begin offering voice and data services over its network, which would compete against Telecom. NTL will own 27 percent of Noos, while Morgan Stanley will receive 22.9 percent. SingTel Buys Stakes in Bharti Units (08/09/2000) SingTel agreed to pay $400 million for stakes in two Indian telecom holding companies owned by Bharti Group. The Singapore company will receive a 15-percent stake in Bharti Televentures and a 20-percent chunk in Bharti Telecom. This investment by SingTel is the single largest investment into the Indian telecom marketplace by an international investor. Bharti, which recently split its different lines of operations into separate companies, reported that it will use the funds generated by this investment to develop new services and to expand its network. Alliances and Joint Ventures Broadwing and GHR Systems Sign Data Collocation Deal (08/11/2000) Broadwing Communications agreed to provide GHR Systems, a nationwide provider of loan origination technology, with Web-hosting, long distance, and private line services in GHR Systems' data collocation facilities in Washington, DC and Newark, Del. BellSouth Signs Interconnection Agreement With e.spire (08/10/2000) BellSouth signed a four-year interconnection agreement with e.spire Communications, enabling e.spire to extend its voice and data service offerings and decrease its costs to customers throughout the BellSouth region. BellSouth and Expanets Sign Agreement (08/10/2000) BellSouth and Expanets, a networked communications solutions provider servicing small to medium-sized businesses, signed an agreement that allows Expanets to promote and sell BellSouth products and services. This agreement aids in the expansion of BellSouth's marketing coverage and indirect distribution channels. Telcordia Form Business Alliance with Daleen (08/10/2000) Telcordia formed a strategic business alliance with Daleen Technologies to provide telecommunications carriers with enhanced customer care, billing, and order management solutions with the use of operations support systems (OSS). Optus Joins with ITXC (08/09/2000) Cable & Wireless Optus joined with ITXC to rollout the Optus network onto its VoIP network. Through the partnership, Optus will be combining its trans-Pacific &Asian IP network with ITXC.net and ITXC's routing services. Cable &Wireless Optus will be able to provide VoIP services with decreased Internet transport costs. This alliance is part of Optus' strategy to develop its international IP network. Trend and Critical Path Ready Antivirus for Exchange (08/09/2000) Trend Micro and Critical Path entered a technology licensing agreement whereby Critical Path will offer its Hosted Exchange users email virus scanning as part of its messaging service. In addition, both companies are working with Microsoft to deliver a secure hosted Exchange 2000 service. RSA and Ensure Team for PKI Technology (08/08/2000) Ensure Technologies partnered with RSA Security to support interoperability between Ensure's XyLoc wireless PC security service and RSA's Keon PKI authentication technology. Through this partnership, Ensure's XyLoc will allow organizations using RSA's Keon services to control and manage access to digital certificates throughout an enterprise. Broadband/Cable Networking Mitel Introduces New Optical Prototype (08/11/2000) Mitel produced a working prototype of a chip that creates more lanes to carry voice, data, and video traffic on fiber-optic networks that are customarily limited to 16 channels. The chip would make the use of fiber-optics cheaper and more efficient. The new product will be called LightRider and will be available to select customers for testing in early 2001. @Link Enters Michigan Markets (08/09/2000) @Link Networks begin offering services to customers in and around Grand Rapids and Lansing, Michigan. Oftel not Happy With BT DSL Pricing (08/09/2000) Oftel said that BT's pricing for broadband DSL Internet access is too steep to attract customers. The company charges 40 pounds per month for the service; an Oftel survey concluded that customers are willing to spend a maximum of 13 pounds per month for such access. The regulatory commission said that increasing competition for broadband customers will most likely drive down prices. Nokia Announces Broadband Deal (08/09/2000) Nokia agreed to supply a D50e broadband IP access network to Chinese Yunnan Telecom, which will use the network to offer broadband services to six cities in the Yunnan province. The contract also includes professional services such as systems integration. Scientific-Atlanta in Optic Alliance (08/09/2000) Scientific-Atlanta agreed to invest $8 million in Alloptic, which will develop, along with Scientific-Atlanta, fiber-optic technology for providing voice, video, data, and high-speed Internet access over a single network. In addition to developing the technology, Scientific-Atlanta and Alloptic will co-market and distribute residential interactive services, including a Gigabit Ethernet fiber access system that allows service provider to bundle video, voice, and data for residential customers. Global Crossing Launches ATM/Frame Relay in Europe (08/08/2000) Global Crossing expanded its existing ATM and frame relay services to six European countries with transport speeds available at STM-4 (622M bps). Service will be available to 18 cities in France, Germany, Denmark, Belgium, and the Netherlands as well as the UK. CLECs Broadwing Receives CLEC Approval in New York (08/09/2000) The New York Public Utility Commission gave Broadwing Communications formal approval to operate as a competitive local exchange carrier (CLEC) in the state. Conferencing SBC to Add Audio and Video to 1-800-CONFERENCE Suite (08/09/2000) SBC Communications added streaming audio and video technology to its 1-800-CONFERENCE suite of collaboration services so that events and meetings can be accessed through the Web at any time and from any location. CTI and Call Centers NEC Launches CCDesign Suite for Calling Centers (08/11/2000) NEC America introduced a suite of products and services dubbed CCDesign to help customers implement the next generation of customer call centers. A unique hierarchical design helps achieve CC imperatives-responsiveness, performance measurement, customer satisfaction, management effectiveness, and customer loyalty. Like all NEC PBX platforms CCDesign includes automatic call distribution, management information systems, customer service/productivity applications, networking of contact center locations, and distribution of contact center agents. Financial News PageNet Reports Drop in Revenues (08/11/2000) PageNet's revenues for the second quarter 2000 were down 20.1 percent to $203.5 million, compared to $254.6 million for the same period in 1999. During the quarter, the number of pagers in services decreased by 566,042. Net loss was $72.4 million, compared to a loss of $95.3 million. AT&T Mulls More Tracking Stocks (08/11/2000) With its stock price hovering around $30, about a 39-percent drop this year, AT&T is looking for ways to boost its price. CEO C. Michael Armstrong said that the company is considering spinning-off its consumer long distance business, in addition to a spin-off or tracking stock of Liberty Media Group. Armstrong also reported that the two units might be combined before being spun-off. In April, the company created a tracking stock for its wireless operations. Although it was the most successful IPO in US history, bringing in about $10.6 billion, it is now trading below the initial offering price. Trend Micro Posts Record First-Half 2000 Results (08/11/2000) Trend Micro posted sales of 9600 million yen during the first half of 2000, a 70.5-percent increase over the 5631 million yen reported for the same period in 1999. Net income was 2.5 billion yen, an increase of 160.7-percent from a net income of 949 million yen in the first half of 1999. These strong gains are due to a continuous surge in high-end Internet product sales and from the reflected income from the acquisition of Nippon Unisoft. Infonet Services Turns Profit (08/09/2000) Infonet Services announced that revenues for the first fiscal quarter increased 80 percent over results from the same quarter the previous year to $154.2 million. Net income was $7.7 million, or $0.02 gain per share, compared to a net loss of $1.4 million. VersaTel Revenues Rise 333 Percent (08/09/2000) VersaTel reported second-quarter revenues increased 333 percent to 46.5 million euros. Net loss was 90.1 million euros, compared to net loss of 49.6 million euros. DT Stalls IPO for Wireless Division (08/09/2000) Deutsche Telekom said that it will postpone the pending IPO for its wireless unit, T-Mobile, because of its pending acquisition of VoiceStream Wireless. The stock offering is expected to take place next year. Cablevision Files to Procure Tracking Stock (08/09/2000) Cablevision Systems filed preliminary proxy materials with the SEC for a series of Cablevision common stock to be called Rainbow Media Group and to trade as RMG. The tracking stock will enable investors to follow the performance of certain programming assets of Rainbow Media Holdings. Teligent Revenues up 700 Percent (08/09/2000) Teligent announced that revenues for the second quarter increased 700 percent over results from the same quarter a year ago to $32.3 million. Net loss was $164.1 million, or $2.94 loss per share, compared to $123.5 million, or $2.34 loss per share. Arch Revenues Jump 43 Percent (08/09/2000) Arch Communications reported that net revenues for the second quarter 2000 were $179 million, a 43-percent increase from $126 million for the same quarter in 1999. During the quarter, the company added to its paging services by launching two-way Internet messaging and data services. Net loss was $21.5 million, or $1.01 per share, compared to a loss of $111.2 million, or $5.65 per share. WebLink's Financial Results (08/09/2000) For the second quarter 2000, WebLink Wireless reported revenues of $61.5 million, compared to $62.3 million for the same period in 1999. Results include the contribution of 52,000 Wireless Data net subscribers added during the quarter. Net loss was $25.3 million, or $0.54 per share, compared to a loss of 25.3 million, or $0.63 per share. AT&T LatAm Files to Sell Shares in US (08/08/2000) Florida-based AT&T Latin America filed an application with the SEC to sell 35 million shares of Class A common stock in a public offering. The prospectus did not specify the price per share; however, the company plans to raise as much as $543 million. The offering will be made public after AT&T LatAm completes its merger with FirstCom this month. The shares will trade on Nasdaq under the symbol "ATTL." Broadwing Invests Additional $44 Million in Corvis (08/08/2000) Broadwing announced an additional investment of $44 million in Corvis, a optical equipment maker. In the past, Broadwing purchased more than $200 million worth of networking gear and bought eight million shares of Corvis stock. Internet/Intranet PanAmSat Displaying SPOTbytes (08/10/2000) PanAmSat is launching a two-month tour to showcase its SPOTbytes DVB Internet access service throughout Latin America. SPOTbytes offers Internet traffic using a digital video broadcasting transport stream. The company will be demonstrating its capabilities to ISPs and telecommunications carriers in Argentina, Colombia, and Venezuela. Broadwing to Provide Internet Access for PowerCom (08/10/2000) Broadwing Communications signed a two-year, $12-million agreement to provide PowerCom Energy and Communications Access' customers with dial-up Internet access. Broadwing's Internet access services will be added to PowerCom's bundled services, which already include electric, natural gas, long distance telephone, and digital satellite television. Mitel to Establish VoIP Solutions for iXL (08/09/2000) Mitel Communications Systems was chosen by iXL, a leading strategic Internet services company, to deploy its Voice-over-Internet Protocol (VoIP) solutions for the development of iXL's e-business applications. AT&T Launches Publius Trial (08/08/2000) AT&T launched the two-month trial of its Publius Web publishing system, which operates by encrypting a document and copying it to multiple randomly selected servers, making it extremely difficult to censor or edit an author's work. Critics of the technology claim that it could be used by criminals and could pose a threat to the public, but AT&T developers contend that the risks are worth taking in order to protect free speech. BellSouth to Bring FloridaMIX to Miami (08/08/2000) BellSouth plans to build the "Florida Multimedia Internet eXchange (FloridaMIX)," a Network Access Point (NAP), in Miami. FloridaMIX provides a foundation to support the increasing numbers of Internet service companies and to bring bandwidth, speed, and performance to ISPs, Web-hosting providers, and other Internet-service related businesses. IXCs Telstra Activates Olympic Telecom Network (08/09/2000) Telstra turned on the network infrastructure it deployed for the 2000 Summer Olympic Games, which will take place in Sydney, Australia in September. The network, the largest ever constructed for an Olympic Games, is comprised of 30,000 new land lines for voice and fax services, 15,000 mobile phones, and 4800 km of fiber-optic cable. The activation of this network marks the culmination of a nine-year project for Telstra. Sprint's Services Marketed in Philippines (08/08/2000) Sprint teamed up with CRUZTELCO, the largest member of the Philippine Association of Private Telephone Companies, to market Sprint's 10-5-17 collect calling service in CRUZTELCO's region. Sprint claims that the rates are lower than those of competitors; however, the IXC did not report the rates it is charging. Rates will be the lowest for calls placed to consumers in the US who have Sprint as their long distance carrier. Legal News Southwestern Bell to Settle Dispute with Time Warner (08/11/2000) Southwestern Bell decided to settle its dispute with Time Warner over Time Warner's alleged dishonest business tactics in Texas. Previously, Southwestern Bell had claimed that Time Warner employees were urged to order, then cancel DSL services from Southwestern Bell. SBC's DSL is in direct competition with Road Runner, which is partly owned by Time Warner. Terms of the settlement were not disclosed. AT&T Suing ATT&T (08/08/2000) AT&T Corporation, the nation's top long distance carrier, filed a lawsuit against ATT&T Incorporated in Delaware for alleged infringement of the 100-year-old "AT&T" trademark, unfair competition, and cyber piracy. In the filing, AT&T Corp. cited that ATT&T Inc. has been selling telephone products for six years using the ATT&T trademark, a move the IXC claims causes the dilution of its own well-known brand name. AT&T Corp. is asking for an injunction barring further trademark violations and an award of unspecified actual, compensatory, and punitive damages. Qwest to File Suit Against AT&T (08/08/2000) Qwest Communications reported that it would file a lawsuit against AT&T for attempting to prevent a former employee from working at Qwest. In July, AT&T threatened to sue Qwest and Charles L. Ward, a former AT&T employee, over concerns that Ward would disclose confidential AT&T trade secrets in his new position at Qwest. In response, Qwest said that it would file a counter suit to allow Ward to do his job as vice president of policy and law. Sunwest Going after US WEST/Qwest (08/08/2000) Sunwest Communications filed a $1.6-million lawsuit against Qwest Communications, which acquired US WEST in June, in the District Court in El Paso County. According to Sunwest, US WEST failed to provide switch interconnections in a timely manner and failed to make payments required under another agreement. The suit alleges that US WEST connected new customers more quickly if they subscribed to US WEST's services, hindering Sunwest's ability to increase its customer base. Sunwest CEO and President Dan Potter said that his company sent over 300 letters to US WEST outlining individual customers' complaints, but got no response. Personnel and Organizational Changes BellSouth WD Names CEO (08/10/2000) BellSouth Wireless Data named Donald Kovalevich president and CEO, effective August 21. Kovalevich joins BellSouth Wireless Data from the Houston Cellular Telephone Company. One of his chief responsibilities will be overseeing the SBC wireless merger with BellSouth. Kovalevich replaces J.D. Gardner, who was acting president and CEO and who will now resume his role as the company's CFO. Qwest Handing out Pink Slips? (08/08/2000) Less than two months after acquiring US WEST, Qwest Communications announced that it may cut up to 4000 jobs, representing about five percent of the work force, by the end of the year. Qwest spokesperson Tyler Gronbach reported that most cuts would come at the corporate level in such departments as finance, legal, and communications where there is now a duplicated staff. Gronbach said that he did not know how many people have been laid off since the merger closed in June. Qwest CEO Joe Nacchio said that the ultimate goal would be a revenue-to-employee ratio of about $350,000 by the end of 2001. Trend Micro Names Allan Thompson VP of NA Marketing (08/08/2000) Trend Micro reported that Allan Thompson was appointed Vice President of North American Marketing. Mr. Thompson will be responsible for Trend's overall marketing strategy, branding, and program implementation in the US and Canada. He will remain a senior vice president in charge of the Global Alliances group. Charter Promotes Barford to COO (08/08/2000) Charter Communications promoted Dave Barford to executive vice president and COO. Barford was the former senior vice president of operations of the western division. RBOCs BellSouth, National Home Connections Sign Agreement (08/09/2000) BellSouth signed agreement with National Home Connections, a service of Move.com Group, to facilitate connection to BellSouth paging, local phone, and ISP services for residential customers moving into or within BellSouth's southeast territory service areas. Regulatory News Hearing to be Held for Iridium Bids (08/11/2000) Even though Motorola is speaking with the US government about de-orbiting the Iridium satellite system, a US bankruptcy court scheduled a meeting for August 23 to discuss bids for the failed company. Most of the bids so far have either been scrapped by the bidder or have been deemed economically impossible by both Iridium and Motorola. Bidding in German 3G Auction Reaches $8.6 Billion (08/09/2000) Bids for the 12 blocks of spectrum being sold in the German third-generation wireless auction reached $8.57 billion after the latest round. Viag Interkom bid $1.4 billion for two blocks of spectrum, Deutsche Telekom's T-Mobile bid $2.2 billion for three blocks of spectrum, MobilCom Multimedia bid $2.2 billion for three blocks of spectrum, Mannesmann Mobilfunk bid $1.4 billion for two blocks, and 3G Group and Debitel Multimedia each bid $687.1 million for one block of spectrum. The bidding is in the sixth day and the 81st round. Metrocall Files Plan for PageNet (08/09/2000) Metrocall filed a motion with the US Bankruptcy Court of Delaware asking that it terminate PageNet's exclusivity period. Metrocall wants the period terminated in order to submit its own reorganization plan for PageNet under Chapter 11 bankruptcy. Metrocall believes that its plan is better than PageNet's being acquired by Arch Communications and that the board of directors for PageNet should provide its shareholders with competing bids. In addition, Metrocall's proposal for PageNet remains open because the company believes it is superior to Arch's. Satellite Communications Motorola Introduces Remote Control Unit (08/09/2000) Motorola introduced its Remote Control Unit, which enables satellite communications to operate from covered locations. The Remote Control Unit is used with the LST-5D Satellite Communications radio and allows for communications from terrestrial locations that are out of sight of a satellite. Globalstar USA Joins with Wireless Zone (08/09/2000) Globalstar USA is working with Wireless Zone to distribute satellite phone service. Wireless Zone was added to Globalstar USA's list of distributors and will offer services to consumers and corporate customers through its 120 stores in the Northeast and Mid-Atlantic regions. Security i2 Selects Entrust for B2B Security (08/08/2000) Entrust Technologies reported that i2 Technologies selected Entrust's security software for use within its TradeMatrix services. i2 will integrate Entrust's Toolkit for Java with its TradeMatrix services. This combination will enable more secure business interactions between i2 and its partners, suppliers, service providers, and TradeMatrix users. Business Logic Selects RSA 401K Data (08/08/2000) RSA Security reported that Business Logic licensed RSA BSAFE Cert-J software to provide security for its AccountLink product. AccountLink is product designed to standardize and integrate asset management data. By implementing RSA Security software, AccountLink users can securely move data between 401(k) plans without re-logging personal authentication data. ICSA Certifies Anti-Virus Software for Lotus Notes (08/07/2000) ICSA.net reported that Lotus Notes will be included in ICSA's expanded anti-virus product certification-testing suite. Other tests performed on the Lotus Notes platform were GroupShield Domino 4.0 from Network Associates, Norton AntiVirus 2.0 from Symantec, and Trend ScanMail for Lotus Notes 2.0 from Trend Micro. RSA Issues Multiple Encryption Licenses (08/07/2000) RSA Security signed software licensing agreements with five companies for its RSA BSAFE Crypto-C and RSA BSAFE Crypto-J encryption software products. Wireless Communications Nokia in Portuguese Deal (08/11/2000) Nokia signed a deal to provide a GPRS core network to Optimus in Portugal. With the equipment from Nokia, customers in Portugal will have continuous connections to mobile Internet content. Optimus is integrating the GPRS network into its GSM network, which will allow the company to offer packet-based Mobile Internet services to 85 percent of the Portuguese population. QUALCOMM in License Agreement (08/10/2000) QUALCOMM granted DeltaCom a royalty-bearing license under a subscriber unit license agreement for QUALCOMM's CDMA technology and patents. With the agreement, DeltaCom is developing, manufacturing, and marketing CDMA and HDR subscriber products for wireless applications. Sprint Swimming the DataChannel (08/10/2000) Through a partnership with DataChannel, Sprint PCS is transmitting corporate data to its Internet-ready phones through DataChannel's XML-based EIP solutions platform. Business customers with Sprint PCS phones can allow their employees access to corporate information, inventory programs, sales applications, and data bases that had previously been available only through a PC. NTT's i-mode Crashes Again (08/09/2000) Is i-mode, NTT DoCoMo's wireless Internet service, too popular for its own good? DoCoMo's server crashed for four hours, just days after the company boasted that its 10 million subscribers made it the largest ISP in Japan and the most popular wireless Web offering in the world, reported the Financial Times. Problems with the service crashing have been frequent and are attributed largely to the service's ever-expanding subscriber base. In fact, the company was signing on more customers than it could handle at one point and took steps to slow down sales and to curb its advertising. While DoCoMo is proud of its popular service, i-mode reached the 10-million subscriber mark a full 17 months ahead of schedule, a rapid expansion which could lead to further problems with crashes. Ericsson Partners with TrollTech (08/09/2000) Ericsson formed a partnership with TrollTech to integrate TrollTech's Qt/Embedded Linux solution into its Cordless Screen Phone as the graphical user interface. The Cordless Screen Phone is Linux-based and provides voicemail, messaging, Web browsing, and e-mail access using a combination of both data communications and telecommunications. TrollTech's Qt works with desktop Linux, Unix, and Microsoft Windows, which is why Ericsson chose it for its HS210 Cordless Screen Phone. QUALCOMM Doing Handsprings (08/09/2000) QUALCOMM granted Handspring a license for its digital wireless technology standard, to be incorporated into Handspring's Visor handheld computer. Handspring will use the Palm operating system and QUALCOMM's CDMA standard to develop new wireless communications. India's First WAP Browser Launched (08/09/2000) Integra Micro Systems, a company based in Bangalore, India, launched the Jataayu WAP browser for the Palm OS platform. The Jataayu browser is providing WML content, such as Internet e-mail, messaging, and financial transactions, on Palm-based devices. User request information by using an embedded WAP browser in the WAP-enabled device, and information is then retrieved from an Internet server using either HTML or WML. Comments or suggestions about Telecom Weekly may be sent to Tammy Boyle. Should you have any questions, concerns or problems with your Telecom Weekly Flash, please contact us at: mailto:flash@faulkner.com ---------- End Forwarded Message ----------
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