Telecom Weekly Nov 10, 2000 (fwd)

[Missy Harvey]

---------- Forwarded Message ----------
Date: Monday, November 13, 2000, 10:33 AM -0500
From: Faulkner Telecom Weekly <telw...@faulknerinfo.com>
To: ???
Subject: Telecom Weekly Nov 10, 2000

Telecom Weekly

November 6 - November 10, 2000

Top Story of the Week

BT Announces Restructuring Plan (11/10/2000)
The global telecom unbundling continued as British Telecom announced a
restructuring plan to win back waning shareholder support and to cut
growing debt. Following the lead of American telecoms AT&T and MCI
WorldCom, BT plans to separate its network wholesale operations from its
consumer business, to create a BT Group holding company, to issue stocks
for its wireless and yellow pages units, and to dispose of unnecessary
struggling businesses. Under the plan, BT would separate its wholesale
business into a new entity named NetCo. Pending regulatory and governmental
approval, BT would list up to 25 percent of NetCo as stock. A holding
company will be created which BT hopes will provide operating flexibility
and tax efficiency to meet the interests of customers and shareholders. In
addition to the new NetCo stock, BT will list up to 25 percent of Yell,
formerly yellow pages, and up to 25 percent of BT Wireless by the end of
2001. BT's debt is expected to reach 30 billion pounds by Spring 2001, a
figure which it intends to cut by 10 billion in stock listings and another
by another 5 billion by divesting struggling business units.

back to top

Acquisitions, Mergers, and Divestitures
AT&T May Sell Liberty Media (11/10/2000)
AT&T may end its problematic relationship with Liberty Media Group as part
of its recently restructuring. Liberty chairman John Malone said that he
expects AT&T to announce plans to dispose of the media group, over which
AT&T has no managerial control over. One reason for AT&T to sell or spin
off Liberty is its difficult fit into the new AT&T restructuring plan.
MediaOne has its own tracking stock. Under the plan, Liberty would
apparently remain a tracking stock under the business services portion and
would continue trading as T. While AT&T has declined to comment on its
plans for Liberty, the regulatory scrutiny regarding its recent acquisition
of MediaOne could force it to sell. In order to gain approval for the
merger, AT&T had promised the FCC it would separate itself from programming
units such as Liberty, would sell cable systems, or would sell off its
investment in cable giant Time Warner. Since recent talks with Time Warner
appear to be going nowhere, disposing of Liberty and other programming
units could be its most attractive option.

Cisco Acquires Active Voice (11/10/2000)
Cisco Systems signed a definitive agreement to acquire Active Voice, a
provider of IP-based unified messaging solutions. Cisco will pay
approximately $226 million in stock for Active Voice's Unity operation and
approximately $30 million in stock for Active Voice's circuit switched PBX
voicemail solutions, which will be sold after the acquisition closes to a
newly formed entity comprised of former Active Voice employees. Active
Voice's Unity product offerings combine e-mail, voice, and fax messages
into a common mailbox accessible via any Internet connected device
anywhere. The acquisition supports Cisco's vision of delivering unified
communications over a single end-to-end IP network combining data, voice,
and video.

Murdoch Seeks to Close DirecTV Deal (11/10/2000)
Rupert Murdoch's News Corp. is seeking to buy DirecTV before he floats his
digital subsidiary, Sky Global Networks, next year. News Corp. executives
are looking at a variety of ways of making the acquisition including a
merger of Sky Global and Hughes Electronics, of which DirecTV is a part, or
buying just DirecTV.

SBC Invests In Covad Communications (11/09/2000)
SBC Communications has invested $150 million in Covad Communications,
translating to 9.4 million shares and a six-percent ownership. The
investment still needs regulatory approval.

Siemens Buys Trango (11/09/2000)
Siemens acquired Trango in a deal to enhance its HiPath customer
relationship management (CRM) product. Trango, a developer of CRM products,
will bring to Siemens expertise in IP-based, multi-channel contact center
solutions and skills-based routing products. The purchase continues
Siemens' aggressive investment strategy in the eCRM market.

Mediacom Acquires Systems from AT&T Broadband (11/09/2000)
Mediacom Communications signed a definitive asset purchase agreement with
AT&T Broadband to acquire cable television systems serving 14,000 basic
cable subscribers in and around Fairhope, AL, with a purchase price of
approximately $34.0 million. The acquisition is the ninth this year for
Mediacom, which serves 770,000 basic subscribers in 22 states.

Verizon Buys Interest in Partnership (11/08/2000)
Verizon Wireless purchased the 24.2-percent limited interest in the
Sacramento-Valley Limited Partnership from Roseville Communications for
$236.2 million. The partnership sells cellular telephone services through
Verizon in Northern California and Nevada. With the proceeds from the sale,
Roseville will expand its local telephone, Internet, data, and DSL
services.

CenturyTel Sells Spectrum (11/06/2000)
CenturyTel is selling 30 PCS licenses to Leap Wireless for $205 million.
The licenses cover five states and seven million potential customers. The
transaction is subject to FCC approval.

IDT Buying AT&T Stock (11/06/2000)
IDT is paying $50 million to buy 2.2 million shares of AT&T stock, which
has consistently dropped in price over the past year, forcing the company
to restructure. IDT is planning a restructuring program of its own,
splitting into two companies, IDT Telecom and IDT Ventures and Investments.
IDT Telecom will include the company's international long distance,
wholesale carrier, and retail prepaid calling card businesses. IDT also
released its financial results for its fiscal fourth quarter. Loss reached
$53 million, or $1.37 per share, compared to a loss of $1.2 million, or
$0.04 per share for the same period last year.

Alliances and Joint Ventures
Sprint Signs Contract with CitX (11/10/2000)
Sprint signed a multimillion dollar contract with CitX Corporation to
provide Internet and VPN connectivity for its Trusted Digital Environments
(TDEs). CitX, a provider of turn-key e-business products, hosting
platforms, secure Internet connectivity, and secure digital environments,
will also become an inaugural member of the Sprint Enabling Application
Service Provider (eASP) Program. CitX will integrate Sprint's IP Services
into its e-business ASP infrastructure, utilizing CitX's eGuardIt group and
its sister company NetX Centric.

Global Crossing Announces Agreement with Lantern Comm (11/09/2000)
Global Crossing announced a technical collaboration agreement with Lantern
Communications. The agreement will help Lantern launch metropolitan gigabit
Ethernet networks. The companies will beta test Lantern's Metro Packet
Switch product line, based on Lantern's Resilient Optical Packet Ring
technology. Trials are scheduled for second quarter 2001.

Global Crossing Signs Deal with Financial Fusion (11/09/2000)
Global Crossing signed an agreement with Financial Fusion to be provided
with a comprehensive suite of FIX messaging services. Financial Fusion's
GlobalFIX will allow customers to access a single and secure trading
session on Global Crossing's IP financial Extranet. Customers can access
other pre-established FIX connections to trading partners.

Ericsson Adds to WISE Portal (11/09/2000)
Ericsson entered into a software agreement with BroadVision , which is
adding its application software to the Ericsson WISE Portal, a mobile
portal for mobile network operators. With the WISE Portal and BroadVision's
software, operators are able to offer services based on a customer's
profile and preferences. The WISE Portal also supports mobile Internet
applications, which can be customized by end users.

Nokia Brings GPRS to Proximus (11/09/2000)
Nokia is delivering its core GPRS solution to Proximus Belgacom Mobile,
which entered into a three-year agreement with Nokia for the supply of the
core network system. Nokia is also providing BSS upgrades for Proximus'
network. The Belgian operator can use the GPRS network to offer commercial
GPRS services during the evolution from second to third-generation
services.

Siemens and Toshiba Partner to Develop 3G Phones (11/09/2000)
Siemens and Toshiba formed a long-term alliance to research and develop
third generation (3G) mobile phones. The companies are also considering
marketing mobile handsets that can send and receive video images and that
can transfer data much faster than existing phones. The companies will
combine their research ad development resources to create products that
will be separately branded and available by March 2002.

Siemens and Portal Form Alliance (11/09/2000)
Siemens ICN and Portal Software signed a strategic business alliance
agreement to deliver value-added IP service solutions for Internet and
next-generation service providers. Portal's Infranet product has been
integrated into Siemens' Service Selection Center, which offers Internet
gateway access to ISPs and empowers subscribers to select content and a
variety of network services from a personalized user interface. Portal's
Infranet will provide the customer management and billing solution for
content and services.

AT&T Broadband Extends Virtual Truck Agreement (11/09/2000)
AT&T
Broadband extended its agreement with BroadJump to utilize its Virtual
Truck broadband self-installation software in new markets. AT&T Broadband
will deploy Virtual Truck Installer in Dallas, Denver, Pittsburgh,
Portland, Seattle, and the Bay Area. The Virtual Truck software allows
cable modem subscribers to install services themselves, eliminating the
need for a technician to install the connection thrus streamlining the
setting-up process.

Polycom and Avaya Agree to Develop VoDSL (11/09/2000)
Polycom and Avaya signed an agreement to integrate Polycom's NetEngine
Integrated Access Devices into Avaya's PARTNER Advanced Communications
System. The agreement will give small and medium sized businesses access to
the benefits of a converged network by delivering highly reliable voice
communications over DSL lines. Customers will benefit by competitive
telecommunications rates in an integrated voice and data network.

Williams Offers Services in COLO.COM Facilities (11/09/2000)
Williams Communications announced plans to provide network services in
COLO.COM's co-location facilities. The agreement allows Williams to expand
its services, including metro private lines, metro wave services, high
speed Internet and local and global transport services, in 13 COLO.COM
facilities. Williams services will be available in Tier 1 and Tier 2
markets including Boston, Chicago, Dallas, Seattle, and St.Louis.

Electric Lightwave and Akamai Form Alliance (11/09/2000)
Electric Lightwave formed a strategic alliance with Akamai Technologies to
enhance the quality, performance, and reliability of content served to end
users over Electric Lightwave's Internet backbone. Akamai will deploy
servers in multiple, geographically dispersed, Electric Lightwave data
centers and ISP points of presence to accelerate the delivery of rich
content and to improve the quality of streaming media.

Ericsson in the Car with ViaSat (11/08/2000)
Ericsson entered an agreement with ViaSat in which both companies will
develop mobile equipment for use in automobiles. Ericsson will implement
GPRS technology in motor vehicles, allowing mobile terminals provided by
ViaSat to connect cars with operation centers. Drivers can use the
technology to access traffic information, stock quotes, news, and other
Internet content services. In addition, emergency services will be able to
monitor automobiles in case of accidents. ViaSat will offer its Internet
Car driver portal, which allows for access to Web surfing, e-mail, and
v-commerce (vehicle commerce).

Nokia Expanding Polkomtel's Network (11/08/2000)
Nokia extended its agreement with Polkomtel for the supply of GSM
equipment. Under the new EUR 260 million deal, Nokia will continue to
provide infrastructure equipment, including its UltraSite and InSite base
stations, for the Polish company's Plus GSM network.

Vodafone Takes Stake in Swisscom (11/08/2000)
Vodafone Group is taking a 25-percent stake in Swisscom Mobile as part of a
partnership with the Swiss operator. The two companies also created a
service agreement, the terms of which grant Swisscom Mobile access to
Vodafone's products and services. The companies will work together on the
development of new services. The partnership also includes an agreement
between subsidiaries. Mannesman D2 Mobilfunk, Vodafone's subsidiary, will
allow debitel, Swisscom's subsidiary, access to its UMTS technologies. This
stake in Swisscom, which has an equity value of 7.1 billion pounds, allows
Vodafone to enter the Swiss market and to access Swisscom's three million
customers.

NTT America Partners to Implement Expansion (11/08/2000)
NTT America took steps to expand its Los Angeles node facility by signing a
$2.8-million contract with COLO.COM, a provider of co-location facilities,
as part of the company's development of service capability in the US
market.

NTT Teams with China Telecom (11/08/2000)
NTT Communications concluded a memorandum of understanding with China
Telecom in which the two companies are forming an alliance to create global
telecommunications services. China Telecom is now a part of NTT's Arcstar
family, which manages the Arcstar IP backbone network that carries
fixed-line, cellular, and Internet traffic over NTT's network and will now
carry it over China Telecom's. Under the memorandum of understanding, the
two companies will develop new Arcstar IP-based services, such as VoIP and
IP-VPN, and will provide seamless network services, such as ATM, between
China and Japan.

Cisco Gets $300-Million Order from BT (11/08/2000)
Cisco won a deal worth up to $300 million to expand British Telecom's
Internet network. The agreement will help expand the capacity of BT
Ignite's Colossus Internet backbone 100-fold over two years.

FT Brokers Swiss Orange Deal (11/08/2000)
France Telecom brokered a deal to buy a 42.5-percent stake in Swiss Orange
for EUR one billion in security and cash. The deal with German energy
group, E.On, the current stake owner, would give FT majority control over
Orange in Switzerland.

Broadband/Cable Networking
AT&T Broadband and WorldGate Deploy Interactive TV (11/09/2000)
AT&T
Broadband and WorldGate intend to deploy interactive services to television
viewers with digital cable set-top boxes in Cedar Falls and Waterloo, IA,
and Tacoma, WA. AT&T Broadband is making the interactive services,
co-developed by AT&T Broadband and WorldGate, available to customers using
a Motorola DCT-200 set-top box, remote control, and optional wireless
keyboard. The initial deployment will provide customers with access to
customized local and national interactive content, including links to
television program-related web sites, as well as Internet and e-mail. AT&T
Broadband intends to measure customer interest in various types of
interactive options to determine price points and packaging designs for a
later deployment of interactive services to all its cable subscribers.

Lucent Expands DSL Portfolio (11/09/2000)
Lucent Technologies added two Stinger DSL Access Concentrator models to its
family of DSL solutions. The Stinger Remote Terminal systems are designed
to carry broadband services at faster speeds while installed outdoors
instead of in a telephone company's central office. With DSL equipment
stored in outdoor locations, broadband service providers can offer
high-speed Internet access without the usual distance limitation inherent
in DSL technology. In addition, Lucent added SHDSL capabilities to the
Stinger RT family.

Sprint North Supply Adds Testing Component to Program (11/09/2000)
Sprint North Supply is adding a testing component to its ClearCapacity
strategic sourcing initiative. The initiative tests and troubleshoots DSL
lines. The company will distribute the handheld test set for verifying
transmissions and services, SunSet xDSL, developed by Sunrise Telecom. The
test products allow a single technician to perform most work.

CLECs
Verizon Offering Bulk-Rate Long Distance (11/09/2000)
Verizon Long Distance announced the launch of its bulk-rate long distance
plan in New York. The plan, named TalkTime, offers $0.078 per minute long
distance calling as well as three consumer calling packages. Verizon offers
180 minutes for $15 per month, 300 minutes for $24 per month, and 500
minutes for $39 per month for state-to-state and in-state direct-dial long
distance calls.

Financial News
WebLink's Data Unit Sparks Revenues (11/10/2000)
For the third quarter 2000, WebLink Wireless' revenues were $53.1 million,
down from $64.6 million in the third quarter 1999. Net loss was $30.9
million, or $0.68 per share, compared with $24.2 million, or $0.60 per
share. The company's Wireless Data Division helped the company's revenues
by adding a record 81,055 subscribers.

Adelphia Business Solutions Third Quarter Financials (11/10/2000)
Adelphia Business Solutions saw third quarter results of consolidated
operating revenues of $93.6 million, with record access line installations
of 83,225. Net loss applicable to common shareholders for the third quarter
totaled $75.8 million, or $1.08 per share, compared with $53.7 million or
$0.97 per share, for the same period in the prior year.

Asia Global Crossing Reports Third Quarter Financials (11/09/2000)
Asia Global Crossing announced cash revenues of $57.7 million and adjusted
EBITDA of $9.0 million for the period ending September 30, 2000. Third
quarter revenues totaled $21.8 million with a net loss $23.3 million.
Revenues for the nine-month period were $130.5 million, and net loss was
$54.8 million.

Arch's Third Quarter Results (11/09/2000)
Revenues generated by Arch Wireless for the third quarter 2000 were $175.5
million. The company's two-way messaging service, Arch Webster, contributed
$939,000 to the total net revenues. During the quarter, the company added
24,600 customers to its messaging service, and the way was cleared to
complete the merger with PageNet. Net loss was $66.2 million, or $1.00 per
share, compared to a loss of $68.2 million, or $1.42 per share.

Loral's Revenues Down in Third Quarter (11/09/2000)
Loral Space &

Communications' segment revenues were down in the third quarter, totaling
$373 million, compared to $476 million in the previous year's quarter.
Reported revenues were also down, dropping to $293 million from $347
million. The company recorded bookings of $719 million, a 33 percent
increase. Net loss was $97 million, or $0.33 per share.

Siemens Reports Higher Profits, Lowers Expectations (11/09/2000)
Siemens AG reported a rise in profits of 33 percent, but warned that
earnings in 2001 would decrease as the economy cools. Siemens earned EUR
1.1 billion in the three months ending September 30, 2000, up from EUR 799
million in the same period 1999. Still, the company forecast that growth
for fiscal 2001 would not be as dramatic as fiscal 2000, reflecting
developments in the worldwide economy.

Cablevision Posts 3Q Revenues of $945 Million (11/09/2000)
Cablevision Systems reported third quarter revenues of $945 million, a
14-percent increase from the previous year's $831 million. The company
posted a net loss of $40.1 million, or $0.23 per share, compared with a
loss of $178 million, or $1.17 per share, for the same period 1999.

Teligent Reports 33-Percent Increase in Revenue (11/09/2000)
Teligent reported third quarter revenues of $42.7 million, a 33-percent
increase from the 32.2 million posted for the same period 1999. Teligent
reported a 15-percent increase of on-net buildings to 4,142 from 3,614 and
an increase of lines to 433,997. Net loss for the quarter was $228 million,
or $3.88 per share, compared with $143 million, or $2.66 per share, for the
previous year.

Comcast Profit Increases on One Time Gains (11/09/2000)
Comcast reported an increase in third quarter profits to $1.25 billion, or
$1.29 per share, compared with $327.8 million, or $0.41 per share, for the
same period in 1999. The quarter included a gain of $1.06 billion from an
adjustment in debt indexed to shares of Sprint PCS and a gain of $1.05
billion stemming from securities it received in a distribution agreement
with Excite@Home. Reflecting strong digital cable and broadband sales,
revenues for the third quarter also increased 22.6 percent to $1.96 billion
from $1.60 billion for the previous year. Comcast increased its estimates
for the year for digital cable subscribers, up 100,000 to 1.35 million, and
for broadband subscribers, up 25,000 to 375,000.

Time Warner Telecom Revenues Increase 70 Percent (11/09/2000)
Time Warner Telecom reported an increase in revenue for the third quarter
2000, to $121 million from $71 million for the same period 1999. The
company posted a net loss of $2.3 million, or $0.03 per share, compared
with a loss of $9.1 million, or $0.14 per share, in the previous year.

FT's Wanadoo Continues Growth in 3Q (11/07/2000)
France Telecom's Internet service, Wanadoo, confirmed robust growth in
consolidated pro forma revenue for the first nine months of 2000,
strengthening its position as a leading Internet media group. Wanadoo's
international activities contributed EUR 40.9 million, up 26 percent over
full year 1999 revenues. A full 25 percent of Wanadoo customers now connect
to its services outside of France.

Versatel Announces 3Q Results (11/07/2000)
Versatel announced third quarter revenues increased 174 percent to EUR 48.5
million, up 4.3 percent compared with the second quarter of 2000, and 174.1
percent compared with the third quarter of 1999. The net loss for the third
quarter was EUR 162.8 million, compared to the second quarter 2000 net loss
of EUR 90.1 million.

Equant Announces Third Quarter 2000 Results (11/07/2000)
Equant's revenues for the quarter increased 45 percent to $404 million,
compared with the third quarter 1999, or 49 percent excluding the impact of
unfavorable foreign exchange movements. The net loss for the quarter,
including share plan costs, was $31.0 million, or $0.15 per share, compared
with the net loss of $10.4 million or $0.05 in the third quarter of 1999.

Infonet Announces Profitable Second Quarter (11/06/2000)
Infonet announced second quarter revenues of $156.1 million verses $87.5
million for the same 2000 quarter. Second quarter net income was $4.7
million, compared to a loss of $8.4 million in the comparable quarter.

Internet/Intranet
Global One Announces New Customers, Services (11/07/2000)
Global One announced the success of its Global IP VPN service, with
significant new customer additions. Over 20 major multinational companies
in the US, Europe, South America, and Asia have opted for the industry's
MPLS-based IP VPN service, gaining capabilities to carry out operations at
over 2,500 of their corporate, vendor, and partner sites.

Ericsson Teams with CacheFlow (11/06/2000)
Ericsson entered into a reseller partnership with CacheFlow, which will
integrate its intelligent networking solutions with Ericsson's IP backbone.
Under the agreement, Ericsson is selling CacheFlow's technology to both
mobile and fixed service providers offering high-speed Internet access.

Legal News
AT&T settles patent dispute (11/09/2000)
AT&T will pay an undisclosed sum settling a patent dispute with Ronald A.
Katz Technology Licensing LP for global rights for such services as
1-800-CALL-ATT, calling cards, teleconferencing, and other services. The
settlement includes sublicensing agreement rights, which will allow
business customers to obtain services without the need for an independent
license from Katz.

Court to Decide Guatemalan Privatization Issue (11/08/2000)
Telgua, majority-owned by Telmex, could have its 1998 privatization revoked
by a Guatemalan court. In a deal rife with allegations of foul play, Telgua
was sold off for some $700 million to a consortium of Central American
investors who later passed on 79 percent of the company's shares to Telmex.
The case, which is being reviewed in an administrative court, focuses on
previous administration's handling of the sale, rather than on Telex's
later participation.

QUALCOMM Patents Upheld (11/10/2000)
Three of QUALCOMM's patents covering CDMA technology were upheld by the
European Patent Office despite opposition from Nokia, which challenged the
patents in 1998. The Patent Office rejected Nokia's claims and stated that
QUALCOMM's CDMA features were inventive enough to be patented. The
technology allows for voice to be transmitted at a variable rate without
data transmissions having to match the rate.

Personnel and Organizational Changes
Cox Appoints General Manager (11/10/2000)
Cox Interactive promoted Claudine Langan, a 13-year broadcasting veteran,
to general manager of its Northern Virginia website, allnva.com.

Time Warner Telecom Divisions Name Presidents (11/10/2000)
Time Warner Telecom has named Joe McCourt president for the Eastern
Division. Based in Charlotte, North Carolina, McCourt is responsible for
field operations and sales in Florida, Georgia, New Jersey, New York, North
Carolina, South Carolina, and Tennessee. The company also named Mark Titus
president of their Central Division. Based in Indianapolis, Titus is
responsible for Time Warner Telecom's data and Internet operations, as well
as field operations and sales in Indianapolis, Dayton, Columbus,
Cincinnati, Chicago, Milwaukee, Minneapolis, Dallas, Austin, San Antonio,
Houston, and Denver.

Scientific-Atlanta Names Chairman (11/09/2000)
James F. McDonald, president and CEO of Scientific-Atlanta, was named
chairman by the company's board of directors, succeeding James Napier. The
board also reelected Napier, Sam Nunn, and David J. McLaughlin as
directors.

VersaPoint Appoints CEO (11/08/2000)
VersaPoint appointed Rod Matthews as its full-time CEO. Mr. Matthews, age
57, will join VersaPoint in this position mid-November, replacing the
company's interim CEO, Ray Solnik.

Telstra Appoints American CEO (11/08/2000)
Telstra appointed Rob Tsarnas as President and CEO of its wholly owned US
subsidiary, Telstra Incorporated. In addition to managing the development
of the company's wholesale carrier business in North America, Mr. Tsarnas
will oversee global account management for the company's US-based Fortune
500 and 1000 customers with operations in the Asia Pacific region, Europe,
and Latin America.

Snook's Role Uncertain as French Line Up Orange Team (11/07/2000)
Speculation has been rife that Orange CEO Hans Snook may be headed for a
less hands-on position, such as executive chairman or a non-executive post.
France Telecom announced that it wants Jean-Francois Pontal on board Orange
in a top executive role. Snook, himself, announced that he expects a new
management structure for the company to be announced within a month. In
related news, FT plans to list around 15 percent of Orange, and hopes the
flotation would value the group, whose businesses span France, Britain,
Germany, Belgium and the Netherlands, at up to $130 billion.

Changed Ownership Structure in Ben (11/06/2000)
The July acquistion of a Dutch UMTS license by Belgacom, Deutsche Telekom's
T-Mobile, and Tele Danmark was recently finalized; the new wireless entity
will operate under the name, Ben. The ownership structure is as follows: 50
percent plus one share is owned by Belgacom and Tele Danmark, while
T-Mobile owns 50 percent minus one share.

Austria Ends Shortest, Cheapest UMTS Auction (11/06/2000)
Europe's shortest and cheapest UMTS auction ended in Austria on Friday with
bids totaling EUR 832 million--i.e., EUR 94 million above the minimum bid
level set by telco regulator, Telekom Control. After less than two days of
bidding, all six contender gained a UTMS license, including two newcomers
to Austria's mobile market, Spain's Telefonica and Hong Kong's Hutchison
Whampoa.

Regulatory News
Japan to Order NTT to Cut Rates (11/06/2000)
Japan's Ministry of Posts and Telecommunications is considering ordering
NTT regional carriers to offer lower rates to rivals. To encourage small
firms without their own telecommunications infrastructure to enter the
business, the MPT may order NTT to offer public phone lines to other
carriers at a discount of about 20 percent beginning next April. Currently,
companies wanting to enter the market need to spend at least $933.3 million
to offer full-scale phone service.

Oftel Sets New Charges for BT (11/06/2000)
The UK's Oftel announced proposals that will determine how much Britons pay
for Internet access, setting charges for rivals' access to British
Telecom's local exchanges. Operators will have to pay BT 118 pounds annual
rental and a 95- pound connection cost for each customer they hook up to
the Internet using ADSL technology.

FCC Cuts Regulations (11/10/2000)
The FCC loosened its control over regulations for the manufacture of
telephone equipment, agreeing to allow manufacturers to develop standards
for such products as fax machines, phone handsets, and modems and to
certify the equipment. The Commission will retain its monitoring to
determine that equipment does no harm the public telephone network. Only
equipment that meets industry and FCC standards may be connected.

FTC Extends AOL-Warner Deadline (11/10/2000)
The Federal Trade Commission released a statement which extended the
deadline for its vote of approval on the $115- billion acquisition of Time
Warner by America Online by "a period of not more than three weeks." The
unanimous vote to extend the timeframe for negotiations came amidst new
proposals by AOL and Time Warner to allow rival Internet service providers
access to Time Warner's high-speed cable lines. Earlier this week, the
commission increased its demands in this area, vowing to block the merger
unless a signed contract with at least one ISP was completed before merger
plans are finalized. Shares of AOL and Time Warner dropped 6.4 percent and
5.2 percent, respectively, as investors who had been confident of the
merger's approval showed skepticism. In the first public statement since
the merger review began, the FTC reaffirmed its position of demanding a
signed contract prior to the deal, as opposed to assurances.

FCC Wants New Airwave Rules (11/09/2000)
The FCC is proposing to change the rules for acquiring airwaves. The hope
is to increase the amount of spectrum for wireless companies, who compete
with television and radio for airwave use. Regulators believe thatthe
current rules for buying or leasing airwaves are archaic and confusing. For
example, companies leasing airwaves must undergo a test to determine the
lessee is ultimately controlled by the company leasing the spectrum. One
proposal would make this 40-year-old test less confusing. Another
Commission goal to remove barriers to leasing or buying airwave in order to
encourage increased wireless use. Other obstacles facing companies
acquiring airwaves are the sheer length of the process and lack of
information as to what parts of the broadcast spectrum are legally
available for lease or purchase. The FCC is also trying to decide which
airwaves can be used in secondary markets.

Nextel Gains Access to 800-MHz Band (11/10/2000)
The FCC decided to allow Nextel Communications increased access to the
800-MHz band. The Commission will open 5 MHz, from 21.5 MHz to 26.5 MHz,
to commercial use. Nextel will use the extra spectrum to offer its enhanced
services.

Satellite Communications
Hughes Moves into Cradle of Civilization (11/09/2000)
Hughes Network Systems opened a regional office in Dubai, United Arab
Emirates, and expanded its presence to include markets in the Middle East
and Africa. Working with regional distributors, Hughes Network Systems will
provide customers in these regions with access to the Hughes global network
and its Broadband Everywhere services for consumers and businesses. Hughes'
services are based on VSAT technology and include high-speed Internet
connectivity, e-business solutions, rural telephony services, and
e-government solutions.

StarBand Launches Broadband Internet via Satellite (11/09/2000)
StarBand Communications launched high speed, two-way Internet services via
satellite, making broadband connections available to consumers who do not
have access to digital cable or DSL. StarBand's service can be ordered at
selected DISH Network retailers and Microsoft Internet Centers at
RadioShack stores.

Hughes Announces DirecPC 3.0 (11/06/2000)
Hughes Network Systems is releasing its DirecPC 3.0 software. Hughes added
enhanced features to earlier versions of DirecPC, including a refurbished
Program Guide, increased Windows support, and enhanced TCP/IP performance.
The new version also creates a platform for future satellite enhancements.

Network Switching
Alcatel Introduces 7770 Routing Core Platform (11/09/2000)
Alcatel introduced the 7770 Routing Core Platform (RCP), a multi-terabit IP
core router designed to enable service providers to deliver differentiated
IP services by guaranteeing network performance. The RCP integrates IP
routing with optical transport, allows multi-layer restoration, and
delivers wirespeed routing/forwarding performance.

Orange to Standardize on Web Switching Service (11/06/2000)
To support the build-out of its infrastructure and the provisioning of new
services throughout Europe, Orange standardized on Nortel Networks Alteon
Web switching services. Orange, which recently agreed to be purchased by
France Telecom for 40.3 billion Euros, serves approximately eight million
subscribers, adding one million new subscribers every quarter.

Wireless Communications
Field Narrows to Five for Swiss UMTS Auction (11/10/2000)
The field for the coming auction of four Swiss UMTS mobile telephone
licenses narrowed to five when three more bidders dropped out of the race.
Norway's Telenor Mobile, Hong Kong's Hutchison 3G have pulled out, and
Deutsche Telekom unit, T-Mobile, quit just three days before the sale was
set to begin.

Ericsson and Cingular Demo Wireless Internet (11/10/2000)
Ericsson and Cingular Wireless are demonstrating mobile Internet services
using a GPRS network from Cingular Wireless at Fall Comdex 2000. Cingular's
GPRS service will be the first in the US to run using a third-generation
digital network. Ericsson, using its R520 GPRS terminals, will demonstrate
applications for both consumers and business customers.

ALLTEL Selling Licenses to Verizon (11/09/2000)
ALLTEL is selling 20 PCS licenses covering six states to Verizon Wireless.
Those 20 markets cover a population of 11.4 million people. The
transaction, which should be closed by the end of the first quarter 2001,
cover cities in Alabama, Tennessee, Missouri, Georgia, Kansas, and
Oklahoma.

AT&T Wireless Introduces Prepaid Service (11/08/2000)
AT&T Wireless unveiled its prepaid service with a choice of two calling
plans: the National Calling Plan, which includes roaming and rates from
$0.25 to $0.65 per minute, and the Local Calling Plan, which offers rates
as low as $0.15 per minute in home calling areas. The service also includes
two boxed products: the Free2Go Wireless plan and the AT&T PrePaid
Advantage plan. The service is available through any of AT&T's digital
multi-network phones. Both prepaid services include direct dialing for
domestic and international calling and features such as caller ID, call
waiting, and voicemail. AT&T Wireless is selling its prepaid services
through such retail outlets as 7-Eleven and Best Buy, by phone at
800-IMAGINE, and through the Web at www.att.com/wireless/prepaid.

Ericsson Wins Contract in Spain (11/08/2000)
Banda Ancha awarded Ericsson with a 7.0 billion- peseta, or $35.9- million,
contract for the delivery of a broadband wireless network over two years.

Nokia Licenses WAP to Symbian (11/08/2000)
Nokia is allowing Symbian to license its WAP browser technology, which will
be included with Symbian's mobile phone software platform. The company's
platform integrates Java, Bluetooth, and WAP, and includes an operating
system and application engines; it has been licensed to companies such as
Nokia, Ericsson, and Motorola. The Nokia browser is WAP compliant and
supports WML 1.2 and WML Script.

QUALCOMM Announces CDMA Solution (11/08/2000)
QUALCOMM introduced its CSM5200 cell site modem, part of its CSM5200
chipset and system software solutions that support third-generation
solutions and UMTS systems. The chipset and software solutions support the
WCDMA mode and high-data rates.

C&W Announces New Service (11/08/2000)
Cable &Wireless announced a service, Mobile Internet Solutions, that
enables ISPs and mobile operators to offer customers access to Internet
services and customized content from Internet-enabled devices.

Concert Selects Logia (11/08/2000)
AT&T and British Telecom's global venture, Concert, selected Logica's
Roaming Interworking Gateway for its GSM roaming service. The service
provides global access via Concert's platform to 273 roaming networks in
118 countries.

NTT Plans Music Service-Media (11/07/2000)
Along with Sony and Matsushita Electric, NTT plans to deliver music through
wireless phones, leveraging Japan's leading position in wireless services.
Japan has the world's largest population of users, at 13 million, connected
to the Internet on cellular phones with business-card sized screens.

DT Hopes for Swift VoiceStream Approval (11/07/2000)
Deutsche Telekom hopes its takeover of US cellphone operator VoiceStream
Wireless will be approved swiftly but gave no date for the anticipated
go-ahead. Still, DT expects approval by the first quarter of 2001.
Separately, DT expects to offer cellphone services with the GPRS standard,
a forerunner to the eagerly awaited UMTS standard, in the first quarter of
2001.

Sprint In Agreement with SolidStreaming (11/06/2000)
Sprint PCS agreed to test wireless multimedia streaming services with
SolidStreaming. With technology from SolidStreaming, Sprint PCS can offer
real-time video, audio, and text to its wireless devices with multimedia
capabilities. Streaming applications are being developed along with
multimedia-enabled phones with larger screens and better processing
capabilities. In related news, Sprint PCS and FlashPoint entered into a
partnership to include FlashPoint's digital imaging platform into Sprint
PCS's wireless services. With a Sprint PCS Internet-enabled phone and a
digital camera, business customers can send images to the Internet.

Sonera Launches M-Mail (11/06/2000)
Finnish operator Sonera launched its m-mail service this week, providing
subscribers with access to e-mail from mobile phones using WAP and SMS
technologies. Sonera already operates a messaging service on the Internet
and is extending this type of service into the mobile market.

Sonera Pulls Out of Swiss 3G Bid (11/06/2000)
With an eye towards scaling back its UMTS license commitments and easing
its financial burden, Sonera will not bid for a 3G mobile license in
Switzerland. The company, which currently has 3G licenses in Finland,
Germany, Italy, and Spain, will instead focus on the licenses it has
already won.

Telefonica Movile Sees Expansion (11/07/2000)
Telefonica Movile, the soon-to-be-listed wireless arm of Spanish telco
group, Telefonica, plans to use its stock to fund acquisitions and to forge
alliances. Telefonica Moviles also wants to add to the 3G UMTS licenses
already picked up in Spain, Germany, Italy, and Austria, citing France and
Poland as priority markets.

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