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Date: Friday, September 22, 2000, 12:05 PM -0400
From: Faulkner Information Services <mailserver@faulknerinfo.com>
To: ???
Subject: Faulkner's Comm Flash 09/21/00 - (Part 2 of 2)


Broadband/Cable Networking (cont'd)
Lucent Technologies was chosen by Crowley Data to construct its DataStar
advanced metropolitan broadband wireless network in Poland. Based on ATM
technology, the Datastar network will provide access speeds of up to
155M-bps, enabling high-speed Internet access for end-users throughout
Poland. Crowley Data is deploying Lucent's OnDemand LMDS (Local Multipoint
Distribution System) fixed wireless access equipment to deliver fast
multimedia data, voice, and video transfer over-the-air direct to the
end-user. 

Infonet announced the general availability of ATM broadband services to its
global enterprise clients in more than 100 cities worldwide. In addition,
Infonet announced the formation of Broadband Solutions, a business unit
that focuses on services this business area brings to Infonet. 

Pacific Century CyberWorks was granted a license to transmit high-speed
information along the worlds first super-cable linking Asia and Europe. The
hook-up to the undersea cable, called SMW3, will pipe information directly
from Asia to Europe, bypassing the US. With a total capacity of 4OG bps,
SMW3 is the largest Asian-European cable. Connectivity with the UK will
occur in cooperation with Telstra, which recently announced connectivity
and mobility agreements with PCCW. 

Qwest Communications is taking its DSL Internet service up a couple
notches; it is ramping up the downstream speed of the service from 256K-bps
to 640K-bps. The faster speeds will allow business and residential
customers to have better access to broadband Internet applications. Qwest
DSL costs $29.95 per month. The company plans to offer DSL technology in 72
markets within the 14-state region where Qwest provides local phone
service. 

RCN received local regulatory approval to construct its high-capacity,
Megaband Network in Millbrae, Redwood City, and San Carlos, CA. After the
completion of the network in the northern California cities, RCN will be
able to offer residents its ResiLink service, which is RCN's bundled phone,
cable, and high-speed Internet services. 

Effective September 1, Verizon Communications cut DSL prices by about 20
percent in former GTE local phone territories. Consumers in Midwest,
Southeast, and Western states can now sign up for DSL service for $39.95
per month, with no additional one-time modem fees or installation charges.
In addition, the company slashed DSL prices for small businesses in the
Midwest, Southeast, and Western states to $69.95 to $91.50 per month.
Earlier this year, Verizon reduced prices in the region formerly served by
Bell Atlantic. Consumers in the Mid-Atlantic region can sign up for
residential service for $39.95 per month or Personal DSL Plus, the
entry-level package for small businesses, for $49.95 per month. The price
differences in the former GTE and Bell Atlantic regions are due to feature
differences in the DSL service; upstream and downstream speeds are quicker
in GTE's region. 





Satellite Services
In cooperation with EUTELSTAT, Belgacom announced the launch of Internet
Over Satellite. Aimed at ISPs and corporate users in areas with poor
terrestrial infrastructure, the new service offers high speed Internet
connectivity via EUTELSTAT satellites. The service will be operational in
October 2000. 

Hughes Space &Communications is building three satellites for New ICO and
providing modifications for 11 existing satellites in the New ICO system.
Hughes enhancements will allow ICO to offer voice and packet-data services. 

The Board of Governors for INTELSAT announced that its privatized service
company would be located in the US. 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-bane
satellites after privatization is complete. 






Internetworking
Intel introduced the Intel Media Switch Family of products, which provide
true voice, video, and data integration over corporate networks. The Intel
Media Switch Family enables advanced applications, such as VoIP, distance
learning, streaming video, teleconferencing, and corporate network
videoconferencing with their multi-service capabilities including QoS,
Class of Service (CoS), multicasting, routing, bandwidth management, and
provisioning. 

Marconi won a contract to build an optical network for BT Dutch business
Telfort, its fifth European telecoms deal in six weeks. Marconi gave no
value for the contract, which follows a two billion pound network order
from BT in July and a 350 million pound order from BT's German business
Viag Interkom the same month. The network, which will go into service in
January, will provide Telfort's customers with high-speed data services
running at 2.5 or 10.5G-bps. Marconi said it will also manage and maintain
the network, which will be expanded gradually as it is rolled out
throughout the Netherlands. 






LAN/Intranet
Intersil released a complete set of PRISM-based software drivers that
enable OEMs to design IEEE802.11-compliant wireless LAN products using
Microsoft's Windows CE for home and enterprise markets. Intersil's Windows
CE Driver Suite provides the direct link between firmware on a PRISM II- or
PRISM 2.5-based wireless LAN card and Windows CE (Versions 2.0, 2.1 and
3.0). 

Lucent Technologies released ORiNOCO Home/SOHO, a set of products that
enables users to connect to wireless networks or the Internet at high
speeds from their homes, home offices, or small office settings. The
Home/SOHO product is comprised of Residential Gateways (RG-1000) that act
as base stations and ORiNOCO World PC Cards that slide into notebook
computers and other portable computing devices. The ORiNOCO Home/SOHO
product can wirelessly connect up to ten notebook and desktop computers
located throughout a home or building, whether they are indoors or
outdoors. 

National Semiconductor and Proxim announced a joint effort to develop
wireless home networking products based on the HomeRF protocol for 2.4G Hz
RF technologies. The partnership follows the FCC's decision to increase the
bandwidth for frequency-hopping, spread-spectrum wireless technology.
Proxim and National will be able to accelerate wireless home-networking
from current speeds of 1.6M-bps to more than to 10M-bps. The
National-Proxim wireless modem products will allow fast, secure Internet
access, multimedia, gaming, and wireless telephony over distances of up to
150 feet. Based on National's semiconductor technology and 2.4G Hz RF
design experience, combined with Proxim's engineering expertise, the
high-performance applications will feature low power consumption and small
form factors at low costs. 






Network/Systems Management
BMC Software unveiled an online Security Management Assessment Tool to aid
customers in measuring internal security processes versus recommended best
practices. The assessment evaluates the areas of access management, audit
capabilities, and e-business readiness. 

Computer Associates released the Unicenter TNG Software Delivery Option
(SDO) 3.0, an advanced e-business service that accelerates the delivery of
software and digital content across an extended enterprise. The Unicenter
TNG SDO updates systems across both wired and wireless connections, and
operates over Palm OS, Windows CE, Windows 2000, and Linux platforms. 

Tivoli Systems launched the Tivoli e-Marketplace Manager, a comprehensive
e-Marketplace management Service that enables companies to accelerate
growth in e-Marketplaces. This will help buyers and sellers create
real-time exchanges that will contribute to an increase in Internet trade
via e-marketplaces. 






Storage
Hewlett-Packard unveiled the HP SureStore Tape Autoloader 1/9, a flexible
data-backup service that can be set up and used by anyone, even in remote
locations. SureStore will enable IT professionals to back up more data in
less time. SureStore operates on multiplatforms, including HP-UX, Solaris,
and NT. In addition, SureStore includes a DLT 8000 drive, and has 360 GB
native and 720 GB compressed data capacities. 

Seagate Technology launched the Barracuda ATA III, a 7,200-rpm ATA disc
drive designed for mainstream and high-performance PCs and economical ATA
RAID systems. Built on Seagate's 3D Defense System, Seagate claims that the
Barracuda ATA III can withstand 350 Gs non-operating shock, a feat
purportedly higher than any other 7,200-rpm drive. 








Regulatory News
The FCC began an inquiry into mandating access to cable systems for
Internet services. The jurisdiction of the FCC relative to state and local
government and what regulations are needed for cable Internet services are
considerations of the inquiry. The FCC's inquiry was prompted by three
conflicting court rulings about the emerging role of cable as a
telecommunications device. 

RegTP cut fees that DT can charge competitors accessing its network. While
a setback for DT's home market, the move should assist DT's chances of
securing regulatory approval for its proposed Voicestream acquisition. 

Aggressive lobbying by America Online competitors brought instant messaging
issues to the forefront in the FCC's investigation of the proposed AOL/Time
Warner merger. AOL currently controls 90-percent of the instant messaging
market, and could be forced to open its service to competitors as a
condition of its merger with Time Warner. AOL argued that it has plans for
interoperability, but that instant messaging should not be an issue in the
current merger talks. As another condition of the merger, Time Warner will
be expected to open its high-speed cable access beyond the limits it has
already agreed to. 

The FCC postponed its inquiry into regulating cable Internet access due to
complications such a decision would cause during a review of the AOL/Time
Warner merger. The review is expected to examine the promotion of
high-speed cable services while preserving an open market and to clarify
whether cable Internet access is a cable, telecommunications, or
information service. The FCC agreed to vote on the review within two weeks. 

In order to overcome competition concerns raised by the European Union,
Time Warner and America Online have offered concessions related to their
merger. In other news, no formal concessions have been made by the EMI
Group Plc in regards to its planned merger with Time Warner's music
division. October 18 is the deadline for the EU's Commission to rule on the
Warner Music/EMI merger. A ruling on the Time Warner/AOL merger must be
made by October 25th. 

Just months after AT&T agreed to shed cable properties as a condition of
the MediaOne acquisition, the company is lobbying the change federal
regulations that limit how many cable systems a single company may own,
according to the Washington Post. AT&T CEO C. Michael Armstrong is
reportedly meeting with the head of the Senate Appropriations Committee to
amend the current bill, a move that could potentially relieve AT&T of the
burden to sell certain cable assets. AT&T General Counsel James Cicconi
said that the company fully intends to comply with the merger conditions. 

Broadwing Communications filed to operate as a CLEC in Pennsylvania and
Arizona. Under terms of the filing, Broadwing would be free to compete for
local voice and data communications traffic in these two states. 

German regulator RegTP explores suspicions that Deutsche Telekom
discriminates against competitors and that it sets access fees too low. The
probe includes determining 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. 

The FCC's auction for 800MHz licenses ended with total proceeds reaching
over $319 million. Out of the 14 winning bidders for over 1000 licenses, 11
were small companies that will use the spectrum to offer such services as
voice, data, paging, and fax services. 

In other news, the FCC ruled in favor of a Home Radio Frequency Group
standard removing a key restriction on frequency hopping radio technology,
thus allowing much higher data throughput and reviving the battle for the
wireless home networking market. The FCC issued a ruling to allow the
HomeRF Working Group's SWAP (shared wireless access protocol) to quadruple
the speed of wireless access. The ruling revives the battle between SWAP
supporters and 802.11B supporters. Prior to the ruling, companies building
networking products on the SWAP standard--including Intel, Motorola, and
Proxim--were restricted from increasing bandwidth beyond 2M bps. That posed
a huge competitive disadvantage for companies building off the 802.11B
standard--including 3Com, Apple, and Lucent--who were able to run at 11M
bps. The real future for wireless home networks will be in capabilities
that require higher bandwidths. Next, HomeRF supporters will concentrate on
releasing version 2.0 of SWAP, which will increase access to about 10Mb per
second. The new version is expected toward the end of the year with
products expected to be available in the second to third quarter. 

In an attempt to provide high-speed Internet access by 2005 nationwide, the
Japanese government plans to ask regional carriers of NTT to open their
fiber-optic networks to competitors as early as this year. The Ministry of
Posts and Telecommunications will submit the proposal next week. 

The US Bankruptcy Court of Delaware approved the Disclosure Statement for
PageNet, which filed the statement along with their plan of reorganization
under Chapter 11 bankruptcy. The company is waiting on an October 26
hearing that will confirm its plan and allow it to emerge from bankruptcy
and complete its merger with Arch. 

The PictureTel 900 Series, a video collaboration system, was successfully
tested over Wire One's new video-over-IP Glowpoint network. The Glowpoint
network is scheduled for nationwide rollout later this year based on a
subscription basis. PictureTel was selected for the trial because of its
iPower software and hardware architecture, a collaborative effort of
PictureTel and Intel. 

The FCC agreed to modify conditions attached to SBC Communications' October
1999 acquisition of Ameritech in a move that will allow SBC to proceed with
its $6-billion Project Pronto initiative. As a condition of the 1999
merger, the FCC required that SBC and Ameritech set up a separate
subsidiary to provide advanced Internet services to avoid discriminating
against competing ISPs. In the lasted ruling, the FCC amended the
condition, allowing SBC to own the equipment used to provide the high-speed
DSL services, conditional upon SBC: making additional space available in
its remote terminals for competitors; maintaining its copper plant which
will allow rivals to provide other types of DSL service; and working with
competitors and manufacturers to develop remote access solutions.
Deployment of Project Pronto will make DSL services available to about 80
percent of the SBC's customers by the end of 2002 and will eliminate most
distance limitations. Currently, DSL technology is limited to homes and
businesses located less than 18,000 feet from a SBC central office facility
equipped with DSL. 

Feeling pressure from the WTO, Cofetel is mandating that Telmex adjust its
rates to provide cost-based interconnection tariffs and eliminate the high
fees that competing carriers must pay to connect to the network. Telmex was
given a deadline of mid-October to abide by the order. 








Financial News
ADC reported all-time high sales of $891 million in the third quarter ended
July 31, 2000, an increase of 67 percent over $535 million in the
comparable quarter of 1999. Third-quarter results for 2000 and 1999 include
acquisitions of PairGain Technologies and Altitun, which were both
accounted for as a pooling of interests. Net income was $19 million or
$0.02 per split-adjusted, diluted share in the third quarter of 2000,
compared to $7 million or $0.01 per split-adjusted, diluted share in the
third quarter of 1999. 

CIENA reported revenues for its third fiscal quarter ended July 31, 2000 of
$233.3 million, compared to $128.8 million for the same period of 1999. Net
income for the third quarter was $28.2 million, or $0.19 per diluted share.
This compares with net income for the same quarter of fiscal 1999 of $1.5
million, or $0.01 per diluted share. 

Juniper Networks became a component of the Nasdaq-100 Index at the
beginning of trading Thursday, September 7, 2000. Shares of Juniper
Networks will also be included in the Nasdaq-100 Index Tracking Stock. With
a market capitalization of over $60 billion, Juniper Networks is a leading
provider of purpose-built systems designed specifically for the
scalability, high performance, and reliability required by the Internet. 

Marconi bought a 15 percent stake in British e-commerce firm netdecisions
for about USD$86.88 million in cash. Marconi also made a commitment to buy
further shares in netdecisions over the next two years. Marconi added that
the two firms would collaborate in the areas of e-commerce, broadband
products, and Marconi's optical network unit Fibreway. 

NorthPoint Communications received a $150 million investment from Verizon
Communications, and in return, NorthPoint presented Verizon with $150
million worth of convertible preferred NorthPoint stock. The investment
will lead to the planned merger of Verizon's and NorthPoint's DSL
businesses, which is expected to close in 2001. 

Orbcomm Global, a joint venture between Orbital Services and Teleglobe,
said it filed for Chapter 11 bankruptcy protection to help restructure its
business. In August, Orbcomm missed an interest payment on a $170 million
loan and cut 100 jobs. It let go a similar number of employees in June. The
company said it expects to continue its satellites and ground facilities
during the restructuring. 

United Dominion announced that two units in its Test Measurement Division
have received two large orders, one totaling $10 million for AT&T and
another in excess of $5 million for Telstra. The Telstra order is to supply
Riser-Bond Instruments' Model 6000 multifunction telephone analyzers, and
AT&T order is for Radiodetection's Fiber Identifier. 

Verizon Communications instituted the Founders' Grant program that allows
210,000 Verizon employees with options to purchase a total of 55 million
shares of the company's common stock. Employees below the director level
will receive options to purchase between 100 and 700 shares, priced at
$43.34 per share, based on their employment category. The shares will vest
in three years. Eligible employees include benefits-eligible hourly,
salaried and part-time workers on the company's US payroll, and select
overseas and international payrolls as of September 7, 2000. Verizon
Wireless employees have a separate benefit package and do not qualify for
the Founders' Grant program. 

Williams Communications announced the auction of $250 million worth of its
12-year convertible preferred shares. Williams plan to use the investment
to fund its $5.8 billion expansion plan. 








Legal News
3Com filed a complaint against Xircom for patent infringement in the United
States District Court for the District of Utah. The suit is to protect
certain intellectual property associated with 3Com's PC Cards. 

With the publication of the French government's decree in "Journal
Offiiciel," FT was informed of the legal framework and timetable governing
unbundling of the local loop. At the initiative of FT, work began in early
2000 with 25 competitors on unbundling of the loop. Trials have been
conducted since July in order to define the technical and commercial
processes to be followed by FT and operators who will take advantage of
this unbundling. 

Ariawest, a partner of PT Telkom (KSO) said it shareholders agreed to
continue negotiations with the state company, putting off a likely plan to
file an arbitration suit for the loss it would suffer from the early
termination of Telekom's monopoly. Indonesia's new telecom law will end
Telkom's exclusive rights in providing domestic telecommunications services
sooner than planned. 








Personnel and Organizational Changes
Current president and CEO of BCE Emergis, W. Brian Edwards, has been named
Chair of the Canadian Advanced Technology Alliance. 

Creditors that funded Olivetti's takeover of Telecom Italia met in London
to vote on a shake-up of the ownership structure. They were asked to vote
on a scheme dreamed up by Olivetti that would boost the return on their
investments, compensating for cuts in credit rating triggered by plans to
merge Olivetti with its takeover funding unit Tecnost. 

ADC formed the Advanced Photonics Integration Center, which will develop
photonics products for ADC's customers and OEMs. ADC intends to use the
center to leverage its expertise in photonics to become one of the leading
global suppliers of fiber-optic products. The center, based in ADC's
headquarters in Minneapolis, will draw on the company's resources in the
broad area of fiber optics, and focusing on optical components, or
photonics. A core team of engineers and product managers was established,
and the Center is expected to grow to 40 to 50 team members within the next
year. 

In the wake of a FCC investigation in response to an outpouring of
complaints about poor service, Ameritech reorganized its top executives.
Parent-company SBC Communications appointed Edward Mueller president and
CEO of Ameritech, responsible for Ameritech's five-state region. Mueller
replaces Jim Shelley, who will now report to Mueller as president of
external affairs. Shelly was lambasted at an Illinois Commerce Commission
hearing last week for the deplorable quality of service Ameritech has come
to be known for. Since SBC and Ameritech completed their merger in 1999,
Ameritech customers have had to wait weeks or months to get new phone lines
installed; average repair time went from 29 hours in 1999 to 160 hours in
August 2000. 

On track to meet its year-end target goal of 500,000 to 650,000 telephone
subscribers, AT&T Broadband recently passed the 300,000 customer mark for
its AT&T Digital Phone service. AT&T Broadband now installs over 1,800
customers each day, adding more than 40,000 customers in August alone. 

ePresence appointed Bob Creegan as senior vice president, worldwide sales.
Creegan's responsibilities will include managing the company's worldwide
sales force and promoting ePresence's aggressive growth objectives. 

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. 

Level 3 Communications announced the construction of a new 500,000 square
foot Gateway facility in Needham, MA., which is located in the Boston
metropolitan area. The additional Internet and communications facility will
be connected to the existing Boston metro Gateway through the Level 3
network.

In addition, Level 3 announced the completion of Ring 1 of its inter-city
fiber optic network in Europe. Ring 1 is 1900-mile of fiber placed in 10 to
12 conduits, which connects data centers in London, Amsterdam, Frankfurt,
Paris, and Brussels. Level 3 expects to complete the second European
network by the end of the year.

Finally, Level 3 announced the opening of its second advanced data center
in Silicon Valley. Level 3 has already sold out all the collocation spaces
in the new 96,000 square foot building and is planning to build a third
facility to satisfy the growing demand for space. 

Mitel announced that it will add 400 new engineering positions to its
semiconductor division to meet growing demand. Mitel will spend C$20
million to expand its Ottawa facility to house the expanded workforce. A
new building, which will add 100,000 square feet to its campus, will be
completed in one year. 

Novell reported that it is reducing its workforce by 16 percent, or
approximately 900 positions, knocking the worldwide employee total down to
4,600. The company is also writing off certain other assets, which might
include a pre-tax restructuring charge of between $40 and $50 million in
its fourth fiscal quarter. 

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 Chief Executive Charles Roesslein will assume his
post. 

Qwest Communications launched its Digital Media subsidiary to provide
end-to-end digital multimedia services via broadband distribution, focusing
on the convergence of traditional and digital media. Qwest Digital Media
will offer a complete portfolio of managed content services, including
Web-casting and video-on-demand. Qwest appointed David Woodrow, former
executive vice president of new business development at Cox Communications,
CEO. Woodrow will report to Qwest Chairman and CEO Joe Nacchio. 

In addition, Qwest, still working out the kinks surrounding its June
acquisition of US WEST, raised its revenue and EBITDA targets for 2000 and
2001. Qwest Chairman and CEO Joe Nacchio said that the company is raising
its 2000 revenue target from $18.5 billion to a range of $18.8 to $19.1
billion, with an EBITDA target of $7.4 billion. The company also raised
revenue estimates for 2001 from $21 billion to a range of $21.3 to $21.7
billion, with EBITDA expected to come in between $8.5 to $8.7 billion.
Nacchio also reaffirmed the five-year compounded annual growth targets of
15-17 percent for revenue. In addition, Qwest announced that it plans to
complete the previously announced sale of 570,000 access lines in US WEST's
14-state region over the next 12 months. Also, confirming earlier reports,
Qwest reported that it would eliminate 4500 jobs by December 31, 2000, and
an additional 6500 jobs by the end of 2001. Additionally, 1800 contractor
positions will be eliminated by the end of next year. 

Rhythms NetConnections expanded its network into New Orleans, LA. This
enables Rhythms to provide DSL-based, high-speed Internet access and
networking services to New Orleans businesses and residences. Rhythms now
provides DSL in 58 markets. 

SBC Communications named Ray Wilkins president and CEO of Pacific Bell and
Nevada Bell. Wilkins, a 26-year veteran of SBC, will report to Edward E.
Whitacre, chairman and CEO of SBC, the parent company of PacBell. 

Seagate Software appointed Randy Harris as vice president of worldwide
sales. Harris will bring more than 17 years of global sales and marketing
management experience to Seagate's executive management team.

Seagate also appointed William Gibson as its chief operating officer.
Gibson will report to Seagate president Greg Kerfoot and will become a key
member of Seagate Software's executive team, bringing over 25 years of
telecommunication sales and management experience. 

Sprint created the Global Business Markets Group to serve international and
domestic business customers. Len Lauer was named president of the new
organization. Reporting to Lauer will be Keith Paglusch, president Sprint
Internet; John Berndt, president Sprint International; and the existing
Sprint Business management team. 

Sprint PCS' interim president Ronald LeMay promoted chief sales and
marketing officer Charles Levine to COO. Levine had been the president of
OctelLink and senior vice president of Octel Services before joining Sprint
PCS. As COO, he will report to LeMay. 

President and COO of Teligent, Kirby Pickle, resigned from his position,
and joined PF.Net, a fiber-optic telecommunications firm, as CEO. Alex
Mandl, chairman and CEO of Teligent, will take over Pickle's
responsibilities in the company. In addition, Teligent also named John C.
Wright as new CFO. Wright is a partner in the Washington office of Ernst
&Young, and has been with E&Y for 29 years. 

US LEC announced the completion of its 15th Lucent CBX500 ATM switch
installation. US LEC will now begin its second expansion phase of ATM
switches, which will add an additional eight markets and a second switch in
Atlanta to the US LEC network. The second phase will be completed by the
end of 2000 and raise the number of ATM switches to 24. 


Anthony Simeone

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