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---------- Forwarded Message ----------
Date: Monday, October 02, 2000, 12:40 PM -0400
From: Mike Flaherty <mflaherty@faulkner.com>
To: ???
Subject: Faulkner Telecom Weekly Sept 29. 2000



Scroll down for complete coverage of the telecom week in review. 

Telecom Weekly 

September 25 - September 29, 2000 

Top Story of the Week

Open Access Dominates Week's News (09/29/2000)
AOL and Time Warner executives answered questions regarding their planned
merger in a hearing before the House Telecommunications Subcommittee. The
hearing was meant to address the future of interactive TV, but focused
instead on open access policies and the interoperability of AOL's instant
messaging service. Although AOL and Time Warner executives have pledged
access to the vast cable television and Internet network they would
control, the issue of second rate treatment for other IPs and content
providers dogs the approval process. While the House committee does not
have a direct role in approving the merger, it is advising the FCC and FTC
in their reviews. In related news, open access was the source of an appeal
brought to court involving AT&T and MediaOne in Henrico County, VA. The
Fourth Circuit Court of Appeals will decide whether AT&T must provide
competing ISPs nondiscriminatory access to their system. AT&T is currently
the only ISP providing high-speed Internet access in the county. Appearing
before the judicial panel of the Fourth Circuit, attorneys for Henrico
County, VA and Verizon Communications argued for open access to high-speed
cable lines. Henrico County defended its ordinance mandating open access to
high-speed Internet via cable. Also, arguing before the court were
representatives of Verizon who contended that the judges of the Fourth
Circuit should affirm the finding of the Ninth Circuit earlier this year
which held that Internet access via cable is a form of telecommunications
and subject to the same regulations. Even as these thorny issues of open
access were before the court, the FCC began a much-anticipated inquiry into
the possible regulation of high-speed Internet access over cable. The
Commission issued a Notice of Inquiry calling for information and testimony
as to the correct policies and regulations for high-speed service provided
over various platforms, such as cable, wireline, wireless, satellite,
broadcast, and unlicensed spectrum. In addition, the FCC will determine
whether high-speed Internet providers should be required to open their
systems to independent ISPs.  


Acquisitions, Mergers, and Divestitures
Boeing Purchase of Hughes Division OK'd (09/29/2000) 
U.S. and European regulators granted conditional permission to Boeing to
complete a $3.75-billion purchase of Hughes Electronics' space and
communication division. Under the terms of a consent agreement with the
FTC, Boeing would be barred from gaining access to nonpublic information
received by its satellite division and launch vehicle business from
competing suppliers. Boeing would also be required to provide all necessary
satellite interface information to make satellites compatible with launch
vehicles. The consent agreement is intended to ensure competition in the
highly specialized market. 

News Corp. and Liberty Swap Stock (09/29/2000) 
News Corp. announced it would become the top shareholder in GemStar-TV
Guide International in a $6.4-billion deal with Liberty Media. Under the
widely anticipated deal, News Corp. will purchase Liberty's 21-percent
stake in GemStar, providing it with a total interest of 43 percent in the
electronic program guide provider. In exchange, Liberty will receive 486
million limited-voting News Corp. shares, thus increasing its stake in News
to 18 percent. Liberty will also invest $500 million for a 4.76-percent
stake in News' Sky Global Networks satellite unit, which will soon go
public. By combining GemStar's technology with its Sky Global satellite
unit, News Corp. is anticipating a bid for Hughes Electronics, the parent
of satellite television service provider DirecTV. 

Covad Completes Acquisition of BlueStar (09/28/2000) 
Covad Communications completed the acquisition of BlueStar Communications
Group, a provider of broadband and Internet services for small to
medium-sized businesses throughout the Southeastern US. BlueStar will
continue to do business under the name BlueStar.net. 

WorldCom Takes Stake in Telemonde (09/28/2000) 
WorldCom acquired a 15.52-percent stake in Telemonde, a provider of
international voice, data, and Internet services. Under the terms, WorldCom
and MCI WorldCom Global Networks US jointly acquired about 15.8 million
shares of common stock from Telemonde. 

Exodus Acquiring Global Crossing Unit (09/28/2000) 
Exodus Communications agreed to acquire Global Crossing's GlobalCenter unit
for $6.525 billion in stock, a move that will transform Exodus into the
largest company in the quickly expanding Web-hosting market. Under terms of
the agreement, the companies also signed a 10-year network services
agreement under which Exodus committed to use Global Crossing's network of
fiber-optic cables. In addition, Exodus and Asia Global Crossing agreed to
form a joint venture to provide Web hosting and managed services in Asia.
Exodus will hold a 77-percent stake in that venture, and Asia Global
Crossing will own 33 percent. 

Orange Acquiring Stake in Phone Firm (09/27/2000) 
British mobile phone group Orange will acquire a one-third stake in
Wireless Communication Services, a Thai cellular phone concessionaire. The
acquisition is part of a strategic partnership deal and will represent
Orange's first equity investment in Southeast Asia. 


Alliances and Joint Ventures
Verizon, Aquis Ink Interconnection Agreement (09/29/2000) 
Verizon Communications and Aquis Communications have inked an agreement
providing for compensation arrangements to Aquis for terminating Verizon
originated calls and for transport and termination of traffic on each
others' networks. The agreements cover the territory of the District of
Columbia, MD, NJ, NY, and W VA. Aquis offers two-way interactive paging, as
well as national, region and local messaging services to customers in the
Northeast, mid-Atlantic, and Midwestern regions. 

Williams Communications Allies with Dominion Telecom (09/29/2000) 
Williams Communications and Dominion Telecom, a subsidiary of Dominion, a
natural gas and electric company, entered an agreement giving Dominion
Telecom the right to use more than 6,000 fiber miles throughout the
Northeast US for the next 20 years. Williams will be turning over the fiber
in stages over the coming months. Williams will become a preferred provider
of off-network services that Dominion may need to expand it high-capacity
wholesale telecom services. 

@Link, BullsEye to Offer High-Speed Internet Services (09/28/2000) 
@Link Networks and BullsEye Telecom teamed up to provide small to
medium-sized business customers with DSL-based Internet services. This
partnership enables @Link to reach smaller businesses. 

Nokia and TIBCO Work on M-Commerce (09/28/2000) 
TIBCO Software and Nokia entered into a strategic alliance to develop
solutions for the mobile commerce market. The agreement between the two
will result in the launch of TIBCO MobileConnect, a WAP-based product that
allows communications between businesses and customers through wireless
devices. 

VocalTec and ISF in Agreement (09/28/2000) 
VocalTec signed an agreement with ISF in which ISF will use the Internet
telephony platform from VocalTec to distribute products and services. In
addition, ISF purchases $1.6 million worth of equipment from VocalTec as a
sign of the two companies expanding relationship. 

WebLink Adds to Wireless Team (09/28/2000) 
Cross Communications, RPA Wireless, and Veriprise Wireless joined the
WebLink Wireless Enterprise Solutions Partner program, and each company is
bringing its own solution to expand business opportunities. Cross is
contributing its HipLink Production Paging/PCS Software, which allows
companies to use the WebLink two-way network to monitor their own
equipment. RPA is providing a universal gateway for wireless messages, and
Veriprise is offering its Wireless Platform, allowing customers of WebLink
to extend corporate information to their two-way devices. 

PCCW Partners with China Unicom (09/28/2000) 
Pacific Century CyberWorks and China Unicom are teaming to develop Greater
China's printed, online, and wireless Yellow Pages market. PCCW will invest
$25.6 million to acquire 37.65 percent of ChinaBIG, China's online business
directory.

NTT and AOL Ally (09/28/2000) 
NTT has joined forces with America Online. NTT will take a 42.3-percent
stake in AOL's Japan unit through a $120-million cash investment. AOL will
pour an additional $100 million into its unit, and, over the next two
years. Both companies will invest up to an additional $200 million in AOL
Japan. 

Sonera zed Adds Content Partners (09/28/2000) 
Reinforcing its US strategy, Sonera zed, a subsidiary of Sonera, entered
into several strategic alliances enabling the company to provide mobile
specific applications for its users. The four content partners added
include Fodors.com, Vicinity, zagat.com, and 1-800-TAXICAB. 

Covad Enables Convergent to Offer DSL Services (09/28/2000) 
Covad Communications and Convergent Communications entered a strategic
alliance, which allows Convergent to offer Covad's DSL services to its
customers. In addition, Covergent and Covad will be working together to
develop DSL applications. 

BCI, SBC, Telmex Team in South America (09/28/2000) 
Bell Canada International and SBC Communications are joining forces with
Telefonos de Mexico to create a cable and telephone company in South
America. The partnership is a move toward consolidating the Brazilian
telecommunications market prior to the January auction of additional mobile
licenses. Under the deal, BCI will sell it stake in the Vesper companies
for $875 million to US-based VeloCom; the proceeds will be invested into
the new company. SBC will hold an 11.4-percent stake in the company, which
will own Brazilian and Colombian cellular assets, Venezuelan and Argentine
broadband wireless properties, and Brazilian cable operations. Telmex and
BCI will each own a 44.3-percent stake in the joint venture. 

Ericsson Developing GPRS Portals (09/27/2000) 
Ericsson forged a development agreement with EC-Gate to create wireless
applications for GPRS wireless networks. The two companies are working on
development and deployment of broadband wireless applications for EC-Gate's
customers in Europe and North America. 

Hutchison Signs Roaming Deal (09/27/2000) 
Australia's Hutchison Telecommunications signed an international roaming
deal with Sprint PCS for CDMA services. Sprint PCS customers using the CDMA
standard will be able to roam on Hutchison's Orange One network when
visiting Australia. 

FT in Talks on MobiNil (09/27/2000) 
France Telecom is in talks with Motorola to buy the US firm's stake in
Egyptian Company for Mobile Services (MobiNil)). 

Haggling Expected to Save PCCW and Telstra Deal (09/27/2000) 
Serious haggling is expected to save a multi-billion dollar partnership
between Pacific Century Cyberworks and Telstra. Telstra is reported to be
seeking more favorable terms for the joint venture, worth $3 billion, and
could end up with a bigger chunk of assets at a lower price, as PCCW shares
have plunged since they announced the deal in April. 

Motorola Teams with Entrust (09/26/2000) 
Motorola entered into an agreement with Entrust Technologies for the
development and marketing of wireless solutions. Together, the companies
are creating next-generation wireless solutions for phones, pagers, radios,
and other communications devices using Motorola's technology and Entrust's
PKI infrastructure. The solutions will be used by business customers in
need of securing their transactions.

ICTV and Cox To Deploy Broadband Browser (09/26/2000) 
ICTV and Cox Communications signed a letter of intent to deploy ICTV's
Digital Platform over Cox's cable systems. At the cable operator's site,
ICTV's headend-based system would convert computer VGA format to MPEG2
digital cable to be displayed on TV using a standard digital set-top box.
Cox's use of the ICTV broadband TV browser will eliminate the need for
middleware standards in deploying interactive content to the consumer's
set-top box. 

Sitara Partners With Siemens (09/26/2000) 
Sitara Networks signed an agreement with Siemens ICN incorporating Sitara's
QoSWORKS into Siemens' HiPath Product Portfolio. The agreement grants
Siemens distribution rights and calls for joint marketing of the QoS
product. Siemens will offer QoSWORKS and will develop an open architecture
of VoIP applications for integration  with the Siemens HiPath convergence
family. 

Xoriant and Aspect Ally (09/26/2000) 
Xoriant and Aspect Communications agreed to combine the Aspect Customer
Relationship Portal with Xoriant's eBusiness solutions. Under the
agreement, Xoriant will provide technology strategy, systems integration
and implementation, and lifecycle management in concert with the Aspect
Portal. The partnership will deliver an eCRM solution enabling businesses
to ensure consistent interactions with customers from a centrally managed
eBusiness system. 

Panasonic and AT&T BIS Offer Advanced Set-Top Boxes (09/26/2000) 
AT&T
Broadband and Panasonic announced a joint initiative to provide one million
advanced digital set-top boxes over the next three years. Under the
agreement, Panasonic will supply AT&T Broadband with DOCSIS modems that are
OpenCable compliant. In addition, Panasonic will supply IP phones, faxes,
and video specifically intended to enhance AT&T Broadband services. 

Ericsson Working with NCC (09/25/2000) 
Ericsson and NCC are working together to build out telecommunications and
data networks, which will include third-generation capabilities. Together,
the companies are offering turnkey systems solutions, service, and
maintenance to customers, and NCC TeleCom will focus on operations and
resources during the build-outs. 

Nextel in Partnership with Wireless Knowledge (09/25/2000) 
Nextel and Wireless Knowledge entered into a partnership to market each
other's services to business customers with a need for accessing critical
information. Nextel is adding the Workstyle Server from Wireless Knowledge
to its Nextel Online service, and both companies will co-market the
service. With the Workstyle Server, customers will be able to access
information such as Microsoft Exchange e-mail, calendars, and contacts. 




Broadband/Cable Networking
FT Inaugurates Fiber-Optic Cable (09/29/2000) 
France Telecom inaugurated its America-II fiber-optic submarine cable. The
8300-kilometer network links Florida to Puerto Rico, Martinique, Curacao,
Venezuela, Trinidad, French Guyana, and Brazil. Total cost of the project
is approximately $350 million. 

WorldCom Bundles Services for Corp Customers (09/28/2000) 
WorldCom unit UUNET launched Access Choice, a service that combines DSL,
broadband mobile wireless, and dial-up services into one integrated
offering. Access Choice is also available with UUsecure VPN. 

Sprint Launches Managed VoFR (09/28/2000) 
Sprint introduced it Managed network Service for Voice over Frame Relay,
which allows companies to outsource the design, implementation, and
management of a voice over frame relay solution. The service level
agreements include 100-percent frame relay service availability over
Sprint's SONET backbone, in addition to CPE configuration, installation,
initialization, and 24x7 support. 

Two Million Cable Modems Shipped in 2d Quarter (09/27/2000) 
Nearly 2 million cable modem units were shipped in the second quarter of
2000, reported Dataquest. The record shipment came despite component
constraints on the availability of radio frequency (RF) tuners and flash
memory. Motorola led the pack, shipping 650,000 units and holding 32.5% of
the market share. 

NTT Plans 'Fiber to the Home' (09/27/2000) 
Nippon Telegraph and Telephone disclosed plans for what it calls the
world's first widespread, high-speed Internet service delivered via
fiber-optic lines directly into people's homes. The service, scheduled to
debut in Tokyo and Osaka in December, marks a major push to bring Japanese
Internet use up to US levels. 

NetSpeak Demonstrating Voice over DSL (09/26/2000) 
At Networld+Interop in Atlanta, NetSpeak and Elastic Networks demonstrated
Voice over DSL technology using the EtherLoop DSL platform from Elastic. At
the demonstration, NetSpeak is using its Call Agent technology to converge
voice and data services onto one IP packet infrastructure. The two
companies are aiming this converged technology at service providers
offering basic voice to integrated voice and data. 

Low-Tech Argument for Wiring UK (09/26/2000) 
A dispute over the amount of space available for plans to wire up the UK
has cast doubt on whether high-speed Internet services will be widely and
cheaply available. Competitors argue that British Telecom is denying them
access to the most lucrative exchanges by claiming there is not enough
space for their equipment. BT is suspected of finding excuses to delay the
process of unbundling the local loop so it can hang on to its ISDN business
and thus establish a lead in grabbing market share for its recently
launched DSL services. 

Cox Offers Movies-On-Demand (09/26/2000) 
Cox Communications offered its initial deployment of Movies-On-Demand (MOD)
service in San Diego. The offering to selected customers in San Diego is
Cox's first commercial venture with MOD and is designed to strengthen the
company's position as a provider of video, voice, and data services. Cox's
MOD service will utilize the Explorer 2000 set-top box by Scientific
Atlanta, hardware and software by Concurrent Computer Corporation, and
content by iN DEMAND. Customers will have a 24-hour viewing window for
titles costing $1.95 to $3.95 and will be able to pause, fast forward and
rewind using remote controls and their existing set-top boxes. 




CLECs
Level 3 Offers Services in Co-location Facilities (09/28/2000) 
Level 3 Communications will be offering low-cost bandwidth in approximately
10 COLO.COM co-location facilities. This move enables Level 3 to offer its
services beyond the data centers that the company currently operates. Level
3 will offer high-speed Internet access and network services. 

Teligent Launches Bandwidth Services in Pittsburgh (09/28/2000) 
Teligent launched lower cost, high bandwidth communications services for
business customers in Pittsburgh. With the addition of the Pittsburgh
market, Teligent currently serves business customers in 43 of the nation's
top metropolitan areas. 




CTI and Call Centers
Broadwing Adds VoIP to Network Services (09/27/2000) 
Broadwing offered VoIP in its eClass IP VPN services. The VoIP offering
will allow businesses to reduce long distance and to simplify network
management while utilizing traffic prioritization capabilities of the
eClass suite. 

Avaya Introduces Six IP Products (09/26/2000) 
Avaya, former Enterprise Networks Group of Lucent Technologies, introduced
six new products for IP solutions. The Avaya Enterprise Class IP Solutions
(ECLIPS) products include the IP600 Communications Server, the R300 Remote
Office Communicator, DEFINITY IP Solutions software, the advanced Directory
Gateway, new IP telephones, and second-generation IP Softphone. ECLIPS
products aim to combine voice, data, customer relationship management,
messaging, and multi-service networking in an IP environment over new or
existing PBX or LAN/WAN networks. All of the new ECLIPS products will
become available within 60 days. 

BellSouth, AllConnect Form Strategic Partnership (09/29/2000) 
BellSouth entered a strategic partnership with AllConnect, a company that
assists consumers in selecting and ordering brand name utility and
communications services. AllConnect will market BellSouth's consumer
services throughout the telco's nine-state coverage area. This
comprehensive marketing strategy will include BellSouth's complete consumer
offerings including Internet service, paging, and home security. Its DSL
and wireless services will be added in the near future. 

Equant Accelerates Launch of Online Exchange (09/27/2000) 
Equant announced it is providing the application used by Aircharter
Exchange to launch the world's first online exchange for airlines and air
charterers. The application, designed, developed, and hosted by Equant,
enables airlines to offer charterers whole aircraft charters as well as
passenger and freight charters.   

Excite@Home Launches New Messenger (09/26/2000) 
Excite@Home introduced a new Excite Messenger with voice and
interoperability features. The messenger offers text and voice messaging,
and is tightly integrated into Excite@Home's products and services such as
Excite Inbox and Excite Address Book. Excite Messenger follows standards
for interoperable instant messaging as set down the coalition of instant
messaging services IMUnified. 




Financial News
Vodafone Close to Italian Sell-Off (09/29/2000) 
Vodafone is within days of completing the sale of Infostrada, its Italian
Internet and fixed phone business, for $10.55 billion in cash and loan
notes. Vodafone is reported to have agreed to sell Infostrada to Enel, the
Italian electricity generator, but it remains unclear whether Enel will be
joined by France Telecom. 

Nextel Unit Sets IPO (09/28/2000) 
Nextel Communications' Nextel International announced that it will sell
45.5 million Class A shares for $16 to $18 per share when it holds its
initial public offering. The company, with operations in Mexico and South
America, plans to raise nearly $735 million from the IPO and will use the
money to expand its network, acquire other companies, and repay debts. 

Cabletron Achieves Profitability (09/27/2000) 
Cabletron Systems and its four subsidiaries reported a profit in its second
quarter financial results. Cabletron surpassed growth expectations for the
second consecutive quarter, achieving a pro forma income of $0.01 per
share, or $1.1 million, for the second quarter of fiscal year 2000. 

Chunghwa IPO Has New Setback (09/27/2000) 
Taiwan's state-controlled Chunghwa was dealt a fresh blow as 90 percent of
subscribers for its IPO failed to settle by the September 22 deadline.
Taiwan's government originally offered to sell 16 percent of Chunghwa and
hoped to pocket NT$192 billion from the share sales this year. 

Vodafone Group Creates Fund (09/26/2000) 
Vodafone Group launched a 100-million-pound venture fund for investments in
wireless and Internet companies and technologies. In other news, Klaus
Esser, the former head of Mannesman, is leaving the Vodafone board of
directors. 

Globalstar Receives Investments (09/25/2000) 
Five of the founding companies of Globalstar are purchasing common stock
and investing a total of $56 million into Globalstar Telecommunications.
Loral Space &

Communications, Vodafone Group, QUALCOMM, Elsacom, and France
Telecom/Alcatel are purchasing 5.2 million shares of common stock, and a
sixth partner, ChinaSat, may purchase $12 million of Globalstar stock. 




Internet/Intranet
Verizon Achieves VoIP Cisco Specialization (09/29/2000) 
Verizon Communications achieved Internet Protocol (IP) Telephony
Specialization from Cisco Systems. With this specialized training
consultants from Verizon's Enterprise Solutions division can help business
customers take full advantage of the emerging voice-over-internet
technology. 

Level 3 Offers Cheaper, Faster Internet Connectivity (09/28/2000) 
Level 3 Communications will be offering businesses faster Internet access
services utilizing advanced Ethernet technology, which cuts the cost by
approximately 50 percent as compared to similar services. The service will
be available to businesses in non-Level 3 data centers, carrier hotels, and
other buildings in the US, Europe, and eventually Asia. 

Orange Chooses Phone.com for Internet Software (09/28/2000) 
Orange Communications will be implementing Phone.com's UP.Link WAP Gateway
to provide Internet access for its customers. Orange is Phone.com's second
customer in Switzerland. 

WorldStream Joins C&W Provider Program (09/27/2000) 
WorldStream Communications announced that it joined the Cable &Wireless
Enhanced Solutions Provider Program, which allows WorldStream to offer
interactive webcasting technology and services along with C&W's menu of
data and Internet services. 

Ericsson Intros IP Business Systems (09/26/2000) 
Ericsson added an IP gateway to its BusinessPhone 250 and BusinessPhone 50
digital office telephone systems as part of a series of enhancements that
includes cordless telephones and Web-based management tools. The
BusinessPhone systems are designed for enterprises with 8-200 extensions,
and the IP gateway provides for IP telephony networking using IP links. 

LookSmart Ends Telstra Talks (09/26/2000) 
LookSmartsaid it ended talks with Telstra over a possible alliance. It is
rumored that Telstra wanted exclusive rights to LookSmart's content and
applications in Australia. The two groups might consider other
opportunities down the road. 




IXCs
FT to Build Advanced Backbone Network (09/26/2000) 
France Telecom announced plans to build a 15000-mile transmission backbone
network to connect 28 major cities in North America. FT selected Alcatel to
design, build, install, and maintain the network and Nortel to provide the
equipment. Level 3 Communications will provide the dark fiber for the
project. FT plans to invest about $200 million to build the 28-city
network, which is scheduled for completion by the end of 2001. 




LECs
Cell Phones Big in Estonia (09/27/2000) 
According to Eesti Telekom, Estonia's largest mobile phone provider, the
country spent 5.4 percent of its annual GDP on telecommunications in 1999,
a large portion of which was wireless, in comparison to most European
countries, who spent between two and four percent. Although Estonia is
liberalizing its telecom market in 2001, it is unlikely to have a big
effect on mobile phone prices because intense competition already exists.
Estonia has three separate mobile-phone operators serving a population of
1.4 million, while the UK has four operators for 60 million people. 




Legal News
Verizon Okay with Restricting Car Phones (09/29/2000) 
Verizon Wireless broke with the rest of the cell phone industry to back
restrictions on phone use while driving. Verizon will back state
initiatives, though not local or federal ones, that would require the use
of hands-free equipment in using a phone while driving. This move comes in
the wake of considerable anecdotal evidence of accidents caused by drivers
distracted by phone use. Other wireless companies oppose such regulations
insisting that existing laws against distracted driving are sufficient. 

US Bill Aimed at DT Criticized (09/27/2000) 
Deutsche Telekom's planned acquisition of VoiceStream Wireless and Powertel
has come under fire from Sen. Ernest Hollings (D., S.C.), who is concerned
about its potential impact on US national security. US law prohibits
American telecoms from being acquired by a foreign company that is more
than 25 percent government owned; the proposed acquisition would reportedly
dilute the government's direct stake in DT from 44 percent to 33 percent. 

Belgacom Rivals Angered by Abuse of Position (09/26/2000) 
Citing abuse of power, violation of competition rules, and a practice
contrary to norms in commercial matters, three competitors filed suit
against Belgacom. British Telecom, WorldCom, and Versatel, said Belgacom's
drastic price cuts for both international and national calls had not been
accompanied by a cut in charges levied at other telecom providers using
Belgacom's grid. The companies filed a formal complaint with the Commercial
Court in Brussels. 

SEC Probes L&H Practices on Accounting (09/26/2000) 
The Security and Exchange Commission launched a formal investigation of
accounting practices at Lernout &Hauspie Speech Products. Information the
SEC seeks includes L&H's transaction with related parties and recent large
increases in their sales in Korea and Singapore. Last year, the company
recorded $143.2 million in revenue from customers in the two Asian nations,
up from less than $300,000 the prior year. L&H reported full-year 1999
revenue of $344.2 million. 




Network Service Providers
Telstra and Infonet Combine Networks (09/28/2000) 
Telstra and Infonet completed the integration of their Dial-IP services.
The new common infrastructure enables Telstra to upgrade its business class
national dial network while also enabling Infonet to benefit from the
addition of hundreds of local point of presence in Australia. 




Personnel and Organizational Changes
Versatel Announces New Executives (09/29/2000) 
Mr. Raj Raithatha has been appointed CEO at Versatel. Mr. Raithatha's
former position as CFO will be filled by Mr. Phillippe Santin on November
1. 

ICG Appoints Randell E. Curran as CEO (09/28/2000) 
ICG Communications announced that the company appointed Randall E. Curran
as CEO of ICG. Curran succeeds Carl E. Vogel, who recently resigned as
chairman and CEO. Curran most recently served as chairman, president, and
CEO of Thermadyne Holdings Corporation. 

PCCW Appoints New Executive VP (09/28/2000) 
Pacific Century CyberWorks selected Jeffrey A. Bowden to assume the post of
Executive Vice President of the company's Strategic Integration Office. 

T-Online Executive Quits (09/28/2000) 
In the third high-level defection from Deutsche Telekom's T-Online unit in
one month, Christian Hoenning, chief financial officer for the German ISP,
left the company citing personal reasons. Rainer Beaujaen has been proposed
as Hoenning's successor. 

Siemen's Unisphere Sets IPO at 8.5 Million Shares (09/26/2000) 
Siemens set the planned IPO for its Unisphere Solutions unit at 8.5 million
shares in an estimated range of $20 to $25 per share. Unisphere, which
provides data and voice networking products to communications service
providers, expects to raise $163.8 million in net proceed from the
offering. Siemens' stake in the Unisphere unit will be reduced from 95.5
percent to 87 percent. 

AT&T Broadband CTO Steps Down (09/26/2000) 
AT&T Broadband CTO Tony Werner announced plans to leave the company. AT&T
began looking for a new CTO soon after the announcement. 

Arch Changes Name (09/25/2000) 
In line with its new strategy to focus on two-way wireless Internet
messaging and wireless information, Arch Communications is changing its
name to Arch Wireless, and it is also offering its products and services
under a new logo, Net@Hand. The company's stock ticker symbol on the Nasdaq
is now ARCH instead of APGR. 




RBOCs
BellSouth Launches e-Platform Initiative (09/28/2000) 
BellSouth is breaking into the Web hosting market. The RBOC opened
"e-Business Centers", or data centers, in Atlanta and Miami, and plans to
open four more centers within the next two years. Through the data centers,
BellSouth will offer Web hosting and other electronic business services.
The e-Platform initiative will provide dedicated and custom hosting
solutions, managed storage, managed security, content distribution, caching
services, disaster recovery, and ASP services. In addition, BellSouth
contracted Sun Microsystems to provide hardware, software, and professional
services under a multi-year deal valued at about $450 million. Qwest
Communications, in which BellSouth has a significant ownership, will
provide out-of-region data center space and will gain access to the RBOC's
data centers. 




Regulatory News
Mexico Delays Access Fees Announcement (09/29/2000) 
Mexican telecom regulator, Cofetel, delayed a long awaited announcement to
reduce access fees that Telmex charges long-distance rivals to connect into
its network. The FTC (Cofetel) is expected to significantly lower fees from
the current three cents a minute, forcing the company to charge fees
related to its actual cost. In other news, Telmex said it was willing to
negotiate with Cofetel rather than go to court over new rules that seek to
break up its dominant hold over the Mexican telephone market. 

NTT Demands Guidelines for Fiber-Optic Network (09/29/2000) 
NTT said it would accept a government proposal to open its fiber-optic
network but made demands to ensure that it will not lose out in the
broadband business. The company argues that while it may have been a
monopoly in the past, it should not be punished for that in the current
competitive environment, and wants rules based on free competition for the
development of fiber-optic services. 

Verizon Makes Bid for LD Service in Bay State (09/29/2000) 
Verizon filed for FCCapproval of its offering long-distance service in
Massachusetts. Although Verizon avers that it is in compliance with the
14-point checklist that must be met before an RBOC can offer long-distance
within its territory, Massachusetts Attorney General Tom Reilly issued a
statement that expressed doubts about Verizon's compliance with the
checklist. Spokespersons for LD rivals AT&T and WorldCom also voiced their
doubts and characterized the application as premature. A Verizon move into
long-distance in the state would require both state and federal level
regulatory approval. 

Oklahoma Okays SBC Unit for LD Service (09/29/2000) 
The Oklahoma Corporate Commission voted unanimously to recommend to the FCC
that Southwestern Bell, a unit of SBC Communications be allowed to offer
long-distance service in Oklahoma. Southwestern Bell will file its
application with the FCC and will present its data indicating compliance
with the 14-point checklist mandated by federal law. 

WorldCom Files Merger Appeal with EU (09/29/2000) 
In a largely symbolic move, WorldCom filed an appeal with the EU to
overturn this summer's ruling blocking the Sprint/WorldCom merger. WorldCom
contends that the commission failed to take into account new realities in
the worldwide telecom market. Although WorldCom affirmed that there were no
intentions of reviving the deal with Sprint, the company hopes to clear the
way for consideration of other possible mergers in the future. 

Ameritech Still Under Investigation (09/28/2000) 
The promises Ameritech made to improve installation and repair times in its
five-state region might not be enough to ease the minds of regulators and
consumers in those states. Utility regulators from Ohio, Illinois,
Michigan, Wisconsin, and Indiana are meeting to pool their resources to
find solutions to the increasing service problems. The meeting is likely to
put the pressure on Ameritech to improve its service; between January and
August of this year there have been 37-percent more complaints than the
past five years combined. A spokesperson for the Illinois Commerce
Commission said the poor service history could lead to an audit of
Ameritech's management practices by state regulators. Earlier in the week
the Michigan Public Service Commission slapped Ameritech with a
$1.5-million fine for failing to clear up a customer's credit record. Last
week the Ohio Public Utilities Commission ordered Ameritech to reimburse
consumers $5.1 million for missed or late repair service. The company is
also at risk of being handed a $34-million fine by the ICC. Ameritech's
quality of service has been on the decline since it was acquired by SBC
Communications in October 1999. 

Germany Vows to Eliminate DT Stake (09/26/2000) 
The German government pledged to eliminate its direct interest in Deutsche
Telecom, a stake that has drawn criticism from US lawmakers who are
concerned about the company's proposed purchase of VoiceStream Wireless.
Currently, the German government holds a 43.2 percent direct stake in DT,
but that share will fall to 33 percent after DT purchases VoiceStream. The
deal has already won US Justice Department approval but still needs
clearance from the FCC and a task force that examines mergers of this kind
for national security implications. 




Satellite Communications
Globalstar Brings Service to North Atlantic (09/27/2000) 
Globalstar launched commercial satellite telephone services in Iceland and
the North Atlantic through its Globalstar Atlantic subsidiary. The
company's service, which includes voice, voicemail, SMS, fax, and data
features, is being offered to customers such as fishing vessels, cargo and
passenger ships, miners, oil workers, travelers, and rescue teams. 

INTELSAT in Satellite Partnership (09/27/2000) 
Telenor's Satellite Services purchased capacity on an INTELSAT satellite
for $100 million allowing it to use two spot beams for transmissions to
Europe. The INTELSAT 10-02 satellite operates from 359 degrees E and allows
Telenor to provide 100 digital television and radio channels. In addition,
Telenor has access to 10 Ku-band transponders that ensure stable capacity. 

PanAmSat Makes NET-36 Available (09/26/2000) 
PanAmSat made its NET-36 satellite-based Internet network available on a
commercial basis to content providers. NET-36 allows companies to provide
Internet entertainment services such as streaming audio, video, and data to
broadband audiences. Through partnerships with cable, ISP, DSL, and
wireless vendors, PanAmSat is able to bring and Internet broadcast network
to broadband customers. Content providers that have selected NET-36 include
ABC, Bloomberg, Disney, ESPN, and Hollywood.com. 




Network Switching
Mitel Introduces New Switching Chips (09/26/2000) 
Mitel introduced four new packet switching chips for IP and VoIP networks.
The VTX2600 family consists of three single-chip VoIP switches designed by
Vertex Networks, which was acquired by Mitel in July 2000. The VoIP
switches integrate up to twenty-four 10/100 and two 10/100/1000 Gigabit
ports and are based on Vertex's CoSMOS architecture. The DS313 is a single
chip distributed for Layer 2, 3, and 4 packet forwarding and filtering in
LANs. The DS313 includes 12 Fast Ethernet ports and one Gigabit port and
was also designed by Vertex. These products will be available in October. 




Wireless Communications
NTT Plans to Take AOL Venture to Europe (09/29/2000) 
NTT is considering taking its wireless Internet joint venture with America
Online to Europe. With a view to conquering the French market, which the
company says is its last remaining European target for a 3G wireless
network, NTT will continue to work with Netherlands-based KPN. 

KPN, NTT to Launch Portal in 2001 (09/29/2000) 
KPN unit KPN Mobile and its partner, NTT, announced they planned to form an
Internet portal joint venture, offering Internet services on mobile phones
across Europe. The agreement comes after NTT, which owns a 15 percent stake
in the unit, said it was considering taking its wireless Web joint venture
it has with America Online to Europe. 

Tritel Launches Wireless Service in New Markets (09/29/2000) 
Tritel, a member of the AT&T Wireless Network, recently launched digital
wireless phone services in nine new markets. Using the SunCom brand name,
Tritel began offering service in Corbin and Owensboro, Kentucky; Florence,
Muscle Shoals and Gadsden, Alabama; Brookhaven, McComb, Greenville, and
Greenwood, Mississippi. 

Starfish Software Demonstrates SyncML (09/29/2000) 
Motorola subsidiary Starfish Software successfully showcased a live
demonstration of SyncML-enable wireless TrueSync synchronization solutions
with Excite@Home in Dublin, Ireland, which will be available to partners in
early 2001 

Motorola Unveils Bluetooth Phone (09/29/2000) 
Motorola announced its first Bluetooth phone, the Timeport 270. The
Timeport 270 has an integrated speaker phone and a WAP browser for
accessing web content reformatted for display on a phone. It is scheduled
to be available in the US in December and will be marketed through
carriers, which will set pricing. 

BellSouth Offers Interactive Communicator (09/29/2000) 
BellSouth Small Business Services division now offers Motorola's Talkabout
T900 Personal Interactive Communicator through its small business sales
centers. These devises can send and receive short messages from other
pagers, the Internet, and telephones for instant accessibility. The T900
also retrieves news, stock quotes, and other information without dialing or
logging in. The device fits in the user's hand and features a four-line
80-character lighted display. 

Ericsson Launches Wireless LAN (09/28/2000) 
Ericsson launched a Wireless LAN for enterprise customers that provides
service at speeds of 11M bps. The total product includes a central WLAN
guard for handling several access points and a WLAN card and software. The
new product complies with the 1EEE 802.11b standard for Direct Sequence
Spread Spectrum and combines data communications with security. 

Talk About a New Pager (09/28/2000) 
Motorola added to its list of paging products by introducing the Talkabout
T10 numeric pager. The device provides basic one-way numeric paging with
Message Time/Datestamping and Alarm Clock features that enable customers to
keep track of messages. 

Sprint PCS Teams with AnyDevice (09/28/2000) 
AnyDevice was named by Sprint PCS as a custom solutions provider of
wireless applications for enterprises. Using the GoAnywhere Platform 2.0
from AnyDevice, Sprint PCS is able to provide business customers with
wireless access to corporate e-mail, directories, and data bases in
real-time using an Internet-ready mobile phone. Sprint PCS is adding the
platform to its solutions for the Wireless Web for Business. 

Nortel to Supply Digital Network (09/28/2000) 
Digitel awarded Nortel Networks a $200 million contract to supply the
equipment, software, and network for its mobile phone service. Digitel must
have installed capacity to service at least 400,000 wireless subscribers
within three years from the issuance of its license, or August 2003. The
GSM network provided by Nortel will have the capacity to service 500,000
clients. 

Motorola Expanding GSM Network in Jordan (09/27/2000) 
Motorola was awarded a $23 million contract in Jordan for the expansion of
a Fastlink GSM mobile network, which is made up solely of an infrastructure
supplied by Motorola's Global Telecom Solutions Sector. The contract calls
for the supply of the Horizonsystems GSM solutions from Motorola that
provide wide area coverage with high capacity. The Fastlink network will be
able to serve over 250,000 subscribers. 

QUALCOMM Signs with Agilent (09/27/2000) 
QUALCOMM signed a multi-million-dollar CDMA test license agreement with
Agilent Technologies allowing Agilent to purchase CDMA licenses and patents
from QUALCOMM. Using the licenses and patents along with chips and system
software, Agilent is developing and supplying its customers with test
equipment products for current and next-generation CDMA, WCDMA, cdma2000,
TD-SCDMA, and 1xEV applications. 

Motorola Launches Phone with Digital Display (09/27/2000) 
Motorola introduced the Timeport P8767 wireless phone along with Verizon
Wireless. The new phone includes a digital multicolor display screen with
green, blue, and red that allows for easier navigation and Web surfing.
Verizon Wireless is the first carrier to offer the Timeport P8767 and will
make its Mobile Web available through the phone. 

Ericsson Selling i-Mode Phones (09/26/2000) 
Beginning in November, Ericsson will be selling i-mode phones, which
include Internet access capabilities, in Japan. The company is developing
the phones and will launch them in cooperation with NTT DoCoMo, which
serves over 12 million customers. Ericsson is using the launch to enter
into the Japanese i-mode market, which is the equivalent of the European
WAP market. 

Metricom Launches Mobile Modem (09/25/2000) 
Metricom is bringing its high-speed mobile Internet to six cities as part
of a plan to attract more mobile PC customers to its service. Ricochet,
which provides Internet content to wireless laptop PCs at speeds of 128K
bps, is being offered in Baltimore, Dallas, Houston, Philadelphia, Phoenix,
and New York. 

Motorola Intros Bluetooth Products (09/25/2000) 
Motorola introduced two Bluetooth products, including it first phone
applications for the wireless technology. The company's Timeport 270 is the
first of its phones with Bluetooth capabilities and will be combined with
its other newly introduced product, the Smart Module Accessory, as well as
the Bluetooth PC card. These three products make up Motorola's initial
Bluetooth package. 

Palm and Motorola Deliver Cell Phone (09/25/2000) 
Motorola and Palm are planning a new cellular phone that includes handheld
computer software developed by Palm. The two companies will create a smart
phone with PDA software, wireless Internet access, and technology that will
allow data to be synchronized with a PC. 

QUALCOMM Buys COM DEV shares (09/25/2000) 
QUALCOMM is licensing its High Data Rate technology and modem cards to COM
DEV as part of a multi-million dollar agreement that includes licensing
fees and royalties paid to QUALCOMM. COM DEV is using the technology to
create a wireless Internet system with HDR technology integrated into its
wireless base stations and modem cards. In addition to the licensing
agreement, QUALCOMM is buying a stake in COM DEV. 

Verizon Wireless Introduces Upgrade (09/25/2000) 
Verizon Wireless introduced a program to upgrade its customers' cellular
phone every two years for free to eliminate the concerns over phones
becoming obsolete. New Every Two allows customers purchasing a two-year
plan of $35 per month or more to receive a free phone upgrade when the
agreement is renewed. 

Sprint Brings Video to Wireless Web (09/25/2000) 
Sprint PCS agreed with PacketVideo to bring wireless video applications to
Wireless Web consumers. As part of their agreement, the two companies are
bringing live streaming video to US customers based on wireless media
technology from Packet Video. The new applications will be available
through Internet-ready phones and PDAs. One of the services popular among
consumers during a one-month trial was "Eye-on-My," which allowed parents
to view children through live cameras. 

Comments or suggestions about Telecom Weekly may be sent to Mark Beamen.
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