Telecom Weekly November 17, 2000 (fwd)

[Missy Harvey]

---------- Forwarded Message ----------
Date: Monday, November 20, 2000, 9:20 AM -0500
From: Faulkner Telecom Weekly <telw...@faulknerinfo.com>
To: ???
Subject: Telecom Weekly November 17, 2000

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

Telecom Weekly

November 13 - November 17, 2000

Top Story of the Week

Liberty Media To Be Spun Off by AT&T (11/16/2000)
Following up on its restructuring plan, AT&T is spinning off Liberty Media,
which will become an independent company after its tracking stock is
converted into an asset-based security. The board of directors voted to
spin off the group and to launch it as a publicly traded company in the
second quarter 20001. As an independent company, Liberty Media could
generate revenues and raise capital on its own, could merge with or acquire
other companies, and could create its own partnerships. Also, this
divestiture satisfies one of the three FCC-imposed conditions for approval
of AT&T's acquisition of MediaOne.

Acquisitions, Mergers, and Divestitures
BT Buys Remaining 49 Percent of INet (11/16/2000)
British Telecom plans to purchase the remaining 49.1-percent of INet BV
that it did not already own for $144 million.

Verizon Buying Price Wireless (11/16/2000)
Verizon Wireless signed an agreement to acquire Price Communications
Wireless, the wireless arm of Price Communications, which operates in 16
markets in Georgia, Alabama, South Carolina, and Florida and serves over
500,000 subscribers in the region. Verizon is paying $2.6 billion for
Price; the agreement calls for Verizon's assuming or redeeming $550 million
in net debt from Price and paying $1.5 billion in stock. The company will
also acquire a call center in Atlanta, 41 retail stores, and Price's
network infrastructure. Verizon will expand its footprint in the Southeast
through this acquisition. The deal is conditional upon the completion of
Verizon Wireless' IPO, and either party may terminate the agreement if the
offering does not occur by September 30, 2001.

BT, AT&T To Reopen Merger Talks (11/16/2000)
British Telecom is set to reopen partial merger talks with AT&T. British
Telecom is considering selling its stake in French telecom company Cegetel.

WorldCom To Buy Datatec's UUNet South Africa Stake (11/16/2000)
Datatec agreed to sell WorldCom its 76-percent stake in Internet firm UUNet
South Africa. The sale is subject to the approval of the Competition
Commission and the South African central bank.

Arch and PageNet Complete Merger (11/13/2000)
Arch Wireless completed its merger with Paging Network. The two companies
are now one of the largest two-way wireless messaging companies in North
America. The combined company covers about 13 million people, and both Arch
and PageNet bring along alliances with Internet service and content
providers. The company will remain Arch Wireless and will be headquartered
in Westborough, MA. Terms of the merger included $1.2 billion in PageNet
Senior Notes being converted into Arch Wireless common stock.

KPNQwest Says Seeking Acquisitions (11/13/2000)
Dutch-based KPNQwest said it is seeking acquisitions but did not see
significant synergies from a tie with Equant. KPNQwest might follow up its
purchase of a German ISP for business clients last year or its acquisition
of Italy's COMM2000 with other moves in those sectors.

KPN, Telia Seek Exit in Eircom Deal (11/13/2000)
Dutch KPN and Sweden's Telia want to secure their exit from Eircom as part
of the planned sale of the Irish company's mobile unit. The sale of the
prized Eircell mobile business to Britain's Vodafone has been delayed while
an exit mechanism is found for KPN and Telia, who have a combined
35-percent stake.

DoCoMo to Take Stake in Taiwan Telco (11/13/2000)
Japan's DoCoMo is poised to take a 20-percent stake in KG Telecom, Taiwan's
fourth largest mobile phone company, for up to $556 million. DoCoMo has
already made investments in KPN Mobile in the Netherlands and Hutchison 3G
in the UK and is in talks to buy into AT&T Wireless in the US and C&W in
Australia.

Alliances and Joint Ventures
Telecom Americas is Created
Telmex's newly created America Movil, Bell Canada International, and SBC
Communications finalized plans for their Latin American joint venture,
Telecom Americas. The companies announced that Telecom Americas will have
an initial capitalization of $4 billion. America Movil and BCI will each
hold a 44.3-percent stake in the new company, while SBC will take an
11.4-percent stake. The new company has assumed operations serving over 3
million subscribers in South America's four largest markets, with 2.2
million cellular subscribers in Brazil and broadband and digital cable
operations. Carlos Slim, chairman of Telmex, will act as the initial
chairman; Daniel Hajj, CEO of Telmex's cellular operation Telcel, will be
the CEO; and Robert Lande, former CEO of Canbras Communications, will act
as CFO.

AT&T Broadband and ReplayTV Offer DVR Trial (11/17/2000)
AT&T
Broadband and ReplayTV launched a joint marketing trial of digital video
recorders (DVRs) in Boston and Denver. With the ReplayTV DVRs, selected
AT&T Broadband customers can find, digitally record, and store TV programs
for playback, without any need for videotapes or VCR programming.

AOL and Time Warner Talking with Others (11/17/2000)
Time Warner and AOL announced that they are in talks with other Internet
companies as part of a strategy to win government approval for their
merger. Purportedly, the two companies are in talks with competitors
EarthLink and Juno Online Services and are ready to grant them access to
Time Warner's cable television network, which can be used for Internet
service. Such a deal would satisfy the FTC's concerns about competition in
the marketplace, which could move AOL and Time Warner one step closer to
receiving regulatory approval.

IBM to Team with Major Partners (11/17/2000)
IBM is creating partnerships with Nortel Networks, Lucent Technologies,
Alcatel, Telcordia, and Ulticom to offer network products and services to
telecommunications companies. Together with the other companies, IBM will
provide telecommunications providers with network services for wireless
data, voice and data over the Internet, data center services, and products
that will allows companies to provide Internet and Intranet access, data,
Internet telephony, and wholesale services.

Motorola and Aura Developing Wireless Technology (11/16/2000)
Motorola signed an agreement with Aura Communications to develop
short-range wireless technology. Both companies are working on the
development of Aura's magnetic induction technology, which is used in
wireless headsets for cell phones and allows for hands-free use and
delivery of voice, audio, and data transmission within a personal area
network. Aura's technology also supports other wireless applications,
including voice and data transmission for PDAs and other mobile Internet
devices and point-to-point data. In addition to the collaboration
agreement, Motorola Ventures is making an equity investment in Aura.

Nokia in Deal with Endwave (11/16/2000)
Nokia Networks entered into a multi-year agreement to install Endwave's
advanced transceivers in its FlexiHoppera microwave radios, which are used
in broadband, next-generation cellular networks in Europe, Asia, and the
US. The multi-million contract will last for the next two-and-a-half years.

Global Crossing, Eschelon Telecom Form Network Agreement (11/16/2000)
Global Crossing North America has entered into $100-million agreement to
provide a full range of services to Eschelon Telecom. Global Crossing will
provide voice and data services such as ATM and IP. Global Crossing will
help to expand the company's integrated voice and data services network
build-out via a $5-million equity investment.

Global Crossing in Trial with Lucent (11/16/2000)
Global Crossing began a trial of Lucent Technologies' 40G optical
technology, which provides speeds four times faster than current systems.
For example, the optical systems' 40G bps of capacity allows for the
transmission of eight million, one-page e-mails per second. Global Crossing
started the tests on November 13 and will continue until November 17. The
company is using its 71km fiber link that connects Brussels and Antwerp,
Belgium. The Lucent 40G system is based on TDM technology and allows for
the transmission of voice, video, and data with a single laser over a
single wavelength of light. It is designed for core and metro networks and
can be integrated with a range of fibers..

Ericsson Teams with SpectraSite (11/15/2000)
Ericsson agreed with SpectraSite Holdings to increase the speed of wireless
network rollouts in the US and Europe. Under the agreement, Ericsson is
using SpectraSite's towers, rooftops, and raw land sites and combining them
with its own technology to develop the networks. SpectraSite is financing
their construction and retaining ownership of every developed site.

Motorola Works with OpenTV (11/15/2000)
Motorola and OpenTV are creating joint venture to deploy digital
interactive TV services. The companies are combining cable and satellite
technology and will begin offering services in 2001. Motorola and OpenTV
will support the venture through joint marketing to cable and satellite
operators. With digital TV, customers can access programming guides,
video-on-demand, and Internet content.

QUALCOMM Joins Bluetooth Group (11/15/2000)
QUALCOMM accepted an Associate Membership in the Bluetooth 1.2 Special
Interest Group, which was formed by Ericsson, IBM, Intel, Nokia, and
Toshiba. QUALCOMM had been a member of the Bluetooth 1.0 Special Interest
Group as an Early Adopter. QUALCOMM will receive early access to Bluetooth
technology and specifications and will be able to provide input in the
development of the standard.

Broadband/Cable Networking
Time Warner Telecom Completes NC Network (11/17/2000)
Time Warner Telecom completed its Winston-Salem, NC network, an extension
of its existing Greensboro network. Combining the networks creates a local
and regional network for the Triad area of Winston-Salem, High Point, and
Greensboro. Time Warner Telecom will now offer local dial tone, long
distance, transport services, private rings, and dedicated Internet
services to customers in the Winston-Salem area.

Chicago is RCN’s Kind of Town (11/17/2000)
RCN announced that it is expanding its cable services to include Chicago
residents in its Area 2, 3, and 4. The company already offers bundled
phone, cable, and high-speed Internet services to customers in Area 1 in
the city. RCN will now be able to offer its services to 900,000 homes.

Cable Industry Adds 690,000 Broadband Subscribers (11/17/2000)
During the third quarter, US cable operators signed up about 690,000 new
subscribers for high-speed Internet access via cable. The National Cable
Television Association said that cable providers AT&T Broadband, Time
Warner, Comcast, Charter Communications, and Cox Communications contributed
to the growing trend of broadband Internet access using cable modems. The
number of broadband cable subscribers is expected to reach 3.6 million by
year's end.

Embratel to Acquire AcessoNet from UOL (11/13/2000)
Brazilian ISP, Universo Online (UOL), agreed to sell its backbone services
unit, AcessoNet, to Embratel, a unit of US-based WorldCom. The sale, which
sources close to the deal put at a single cash payment of $100 million,
transfers control of UOL's AcessoNet, its 186 access points, and staff of
30 to Embratel.

BT Urges Rivals to Keep Out of Its Exchanges (11/13/2000)
Telecom companies may have to go on a house-buying spree after British
Telecom told them it could speed up the launch of high-speed Internet
technology if they used buildings near its exchanges. The prospect arose
after a meeting to resolve disputes over a process intended to make fast,
permanently connected Internet services widely available. BT told its
rivals it expected to make at least 600 of its 6000 exchanges available
between January and June, but for 410 of those exchanges, operators would
have to install equipment in adjacent buildings, which could saddle them
with the cost of buying nearby houses or renting office space.

Financial News
Adelphia Releases Third Quarter Financials (11/17/2000)
Adelphia reported record revenues for the third quarter of 2000 of $727.9
million, compared to $232.3 million for the same period 1999. Adelphia's
net loss for the quarter rose to $145.3 million, or $1.06 per share,
compared with $$56.9 million, or $0.95 per share, for the third quarter
1999.

EchoStar Dishes Out Financial Results (11/17/2000)
EchoStar’s total revenues for the third quarter 2000 were $698 million,
compared to $428 million for the same quarter in 1999. The company’s net
loss was $124.4 million, or $0.28 per share, which is down from a loss of
$130.8 million, or $0.28 per share. During the quarter, EchoStar added over
455,000 new subscribers to its DISH Network DBS service.

Electric Lightwave Announces 3Q Results (11/17/2000)
Electric Lightwave reported that revenue for the quarter ended September
30, 2000 was $63.3 million, 31-percent above revenue of $48.6 million in
the third quarter of 1999. Net loss in the 2000 third quarter was $32.6
million, or $0.64 per share, compared to a net loss of $30.4 million or
$0.61 per share in the third quarter of 1999.

ICG Turns the Page to Chapter 11 (11/17/2000)
ICG Communications filed for voluntary Chapter 11 bankruptcy as part of a
plan to restructure its company and to emerge with increased financing.
This decision came after 300 ICG employees were fired and the company's
stock dropped in past weeks. The company has received complaints about the
reliability of its network and is facing lawsuits from investors who claim
the company misled them about its financial stability. ICG has already
received $350 million in financing from Chase Manhattan Bank, which made
$200 million immediately available but is holding $150 million until the
company meets conditions.

Citizens' Revenues Up 16 Percent (11/17/2000)
Citizen Communications reported that its revenues for the third quarter
2000 were $389.9 million, a 16-percent increase from $337.1 million. The
company's gas business generated $80.3 million. Net income for the quarter
was $1.5 million, or $0.01 per share, compared to a net income of $11.9
million, or $0.05 per share. The company's ILEC Segment revenues totaled
$246.8 million, 10 percent more than last year.

Telefonica Reports Financial Results (11/16/2000)
Telefonica generated revenues of EUR 20.755 billion in the first nine
months of 2000, an increase of 25.8-percent over the same period of 1999.
Net income reached EUR 1.484 billion in the first nine months, growth of
5.0-percent over the same period last year. Net income per share was EUR
6.8 per share.

Global Crossing Declares Dividend On Preferred Stock (11/16/2000)
Global Crossing Holdings Board of Directors declared a cash payable
dividend on its Senior Exchangeable Preferred Stock due 2008. Holders of
record on November 15, 2000 will receive a distribution of $5.25 per share
of the stock, payable on December 1, 2000.The company has the option to pay
dividends in cash or additional shares of Senior Exchangeable Preferred
Stock prior to June 1, 2002.

Global Crossing Third Quarter Revenues (11/16/2000)
Global Crossing Ltd's revenues were $1.0 billion, up 10 percent from the
second quarter revenues of $918.2 million. Loss applicable to common
shareholders was $602.4 million, or 69 cents a share, compared with a loss
of $516.2 million, or 62 cents in the second quarter. Pro forma cash
revenues were $1.3 billion, up 46 percent from the third quarter a year
ago, and up 4 percent from the second quarter. Cash revenues for its
telecommunications services business were $1.2 billion, up 46 percent from
a year ago, and data products showed an increase of 88 percent from the
year-ago quarter to $712 million.

Vodafone Profits Up (11/15/2000)
Vodafone Group's pretax profit for the six-month period ended September 30
was 1.82 billion pounds, nearly double the 879 million pounds generated
during the same period in 1999. The company's revenues jumped to 10.2
billion pounds, a 32-percent increase. Earnings per share decreased 24
percent from 2.25 pounds per share to 1.70 pounds per share. The company
ended the period with 65.5 million customers after adding 12.2 million new
customers during the six months. Revenues were helped by Verizon Wireless'
growth in the US market and by Mannesman's operations in the German market.
Vodafone spent over 15 billion pounds for third-generation mobile phone
licenses and intends to focus on the 3G market in coming years. As the
company has added new customers in most of its regions, it is now turning
its focus to the Asian regions, where it serves only 4.9 million customers.

BT Starts Sell-off with Swiss Deal (11/13/2000)
Kicking off its plan to slice 10 billion pounds off its debt, British
Telecom is selling its stake in Swiss joint venture, Sunrise, for 460
million pounds. It announced the sale of the 34 percent stake to
TeleDanmark, another shareholder in Sunrise, just ten minutes before the
venture was due to participate in a Swiss auction of 3G licenses.

Telecom Italia 3Q Up, Sheds 10,000 Jobs (11/13/2000)
Telecom Italia posted third-quarter profits at the top end of expectations
but took a hefty charge to pay for 10,000 redundancies as fierce
competition continued to slice revenue in its home phone market. Europe's
fifth largest telco saw the growth in its core profits more than double
last quarter as earnings before interest, tax, depreciation, and
amortization jumped 10.3 percent year-on-year, against 5.1 percent annual
growth seen in the first half.

BCE Announces Teleglobe and Excel 3Q Results (11/13/2000)
Starting in the fourth quarter, BCE, which recently acquired Teleglobe,
will include results for Teleglobe and Excel in its financial results. In
the interim, BCE announced Teleglobe and Excel's results for the third
quarter ended September 30, 2000. Revenues for Teleglobe were $339 million
in the quarter, compared with $359 million in the same period last year,
and a 6-percent increase compared with the second quarter of 2000. Excel's
revenues were $267 million in the quarter, compared with $362 million for
the same 1999 period and $286 million in the second quarter of 2000.

Internet/Intranet
DT Will Fight Flat Rule Ruling (11/17/2000)
Deutsche Telekom CEO Ron Sommer reported the company will not accept a
ruling by the RegTP that it must offer Internet access providers unmetered
Web access.

AT&T Broadband Hits One Million (11/17/2000)
AT&T Broadband announced that it now serves one million high-speed cable
Internet customers; the company believes that it will reach its goal of 1.1
million customers by the end of the year.

Ericsson Demonstrates IPv6 (11/15/2000)
In Hong Kong, Ericsson, BT Wireless, and SmarTone demonstrated IPv6 using a
mobile network. SmarTone conducted the trial, with assistance from BT's
research, over Ericsson's IPv6 systems, including GPRS and using current
software and wireless LANs. The company tested roaming between fixed and
wireless networks and interworking between IPv4 and IPv6. IPv6 provides an
128-bit address base, while IPv4 provides only 32 bits, a capacity unable
to handle the growth of IP-based networks and Internet-ready devices.

IXCs
DoCoMo to Cut Phone Rates (11/14/2000)
NTT DoCoMo will cut rates on mobile phone calls by as much as 21 percent
starting December 1 to make it Japan's lowest-priced service. President
Tachikawa denied that the cuts were aimed at warding off criticism that
DoCoMo is becoming too powerful and is choking off competition in the
market.

FT Announces Lower Call Rates, Net Service (11/13/2000)
Effective December 5, France Telecom will lower local call charges for all
residential customers. The reductions will have a significant impact on the
price of short calls (under 2 minutes), which account for nearly half the
local calls made by residential customers. FT will also launch Ligne Surf,
on November 13, which provides a separate line for Internet access and 24
hours of connection time per month.

COMSAT Launches Service in Argentina (11/13/2000)
COMSAT Argentina brought long distance telephone services to customers in
Argentina beginning November 9. The company is adding long distance to its
range of telecommunications services already offered, which include
corporate Intranet access, e-commerce, solutions, Web hosting, and VPNs.

Sprint Enhances Bundled Calling Package (11/16/2000)
Sprint has enhanced its Business Solutions bundled long distance and local
calling plans. The single billed monthly rate gives small business
customers unlimited local calling and long distance blocks of time. Sprint
is also offering early adopters their choice of long distance, calling
cards, or a cordless telephone, all valued at $120. Business Solutions is
available to small business customers in Sprint's Local Telecommunications
Division's (LTD) franchised territory, currently available in Florida,
Indiana, Kansas, Minnesota, Missouri, Nebraska, New Jersey, Nevada, North
Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas,
Virginia, Washington, and Wyoming.

Legal News
BT Pursues Vivendi for Damages (11/16/2000)
British Telecom sought "substantial damages" from Vivendi after being kept
out of the French company's Vizzavi Internet alliance with Vodafone. BT
alleges that the Vizzavi alliance breaches an accord reached bt the
shareholders of French telco Cegetel, in which Vivendi holds a 44-percent
and BT holds a 26-percent share.

Qwest To Pay AT&T $350M (11/16/2000)
Qwest Communications was ordered to pay AT&T more than $350 million. The
jury-awarded sum could be changed by the trial judge or on appeal, and
Qwest is likely to appeal. The suit concerns Qwest's repeated cutting of
AT&T's Austin and San Antonio connecting fiber-optic line in September,
November, and December of 1997. Each occurrence resulted in over three
hours of disrupted service. The award is $1.2 million in actual damages and
$350 million for punitive damages.

Belgacom Complies with Internet Access Ruling (11/13/2000)
Following a court order to eliminate discrepancies between different types
of users, Belgacom changed its fee structure for Internet access. The
company scrapped tariffs which differentiated between users connecting to
the Internet via their area code and those using a "0909" access code.
Under the new fee structure, Internet users will pay 40 francs an hour
off-peak and 100 francs an hour at peak times when they go online. Under
the previous plan, those using the "0909" access code had paid less money
than those using their own area code.

PBX News
VocalTec Subsidiary Intros New Service (11/16/2000)
VocalTec subsidiary TrulyGlobal introduced a personal unified
communications service at COMDEX Fall 2000. TrulyGlobal's solution includes
a Web-based platform that combines multiple communications services,
including phone lines, voicemail, mobile phones, pagers, and e-mail. The
solution also routes incoming calls to any location or communications
device.

Personnel and Organizational Changes
BT's Openworld More Likely to Merge than Float (11/17/2000)
British Telecom unit, Openworld, is more likely to seek a merger than float
on the stock market. Openworld was not among the divisions that BT planned
to float when it announced a restructuring last week.

AT&T Business Services Names VP and CFO (11/17/2000)
AT&T named John Adams as vice president and chief financial officer of AT&T
Business Services (ABS); Adams had been vice president and controller of
Electronic Data Systems.

VTEL Creates Business Units (11/17/2000)
VTEL formed two independently operated business units that separate the
videoconferencing products business from the company's solutions business,
the catalyst of the company's new business charter aimed at visually
enabling enterprise IP networks through customer care and integration
services and network management software.

Sprint Launches e-Solutions (11/16/2000)
Sprint launched Sprint e-Solutions. A combination of Sprint Internet
Services and Sprint Enterprise Network Services, e-Solutions controls such
services as network access, hosting, applications management, and business
and systems integration. The e-Solutions unit will be headed by Keith
Paglusch.

Telmex Plans Movil Spin-off (11/13/2000)
Telmex plans to spin off its international and wireless unit, America
Movil, in early- or mid-December. Telmex announced it would create American
Movil in September, grouping units such as Telcel, the country's main
wireless operator, and data, mobile, and traditional telephone operations
in Puerto Rico, Spain, South America, Central America, and the US.

Infonet Appoints New Senior VP (11/13/2000)
Infonet announced that its senior vice president, Dr. Ernest U. Gambaro
retired as planned effective November 1. Paul Galleberg replaced Gambaro
and became Infonet's senior vice president and general counsel.

VoiceStream's CEO to Join T-Mobile Board (11/13/2000)
VoiceStream founder and Chief Executive, John Stanton, will join the
management board of T-Mobile after the firm's takeover by Deutsche Telekom
is completed.

Japan Plans Major Overhaul of NTT (11/13/2000)
Japan is considering a plan that would cut the stake Nippon Telegraph and
Telephone holds in its mobile telco NTT DoCoMo. The drastic overhaul would
vastly expand the independence of NTT DoCoMo, giving it far greater
autonomy in negotiating the overseas expansion it sees as essential for its
future strategy.

Regulatory News
FCC Official Concerned over Legal Action (11/17/2000)
One FCC commissioner believes that legal action concerning wireless
licenses could hamper the bidding in the December. NextWave's two appeals
pertaining to its 90 licenses, which are to be re-auctioned by the FCC in
since the company defaulted on its payments, could mean that any company
bidding on those licenses would have to consider a potential legal cloud
regarding ownership. Such uncertainty could mean lower bids.

Japanese Recommend NTT Restructure
An advisory panel to Japan's Ministry of Posts and Telecommunications
recommended a restructuring of the once state-owned monopoly, NTT. The
panel recommended that the NTT holding company reduce its stake in its
wireless business, NTT DoCoMo, from its current hold of 67 percent, in
order to ensure the mobile phone group management independence. The panel
also advised that the Japanese government lift the ceiling on foreign
ownership of NTT's stock to 33 percent, from its current 20 percent, to
meet foreign demand for Japanese shares. Finally, the panel recommended
that NTT allow its long distance and international units to list shares.
While these recommendations will form the basis for a national review of
Japanese telecommunications policy, they are subject to change before
implementation. The panel's final report will be reviewed by the ministry
and will most likely bring changes in telecom regulations.

US Pushes WTO Case against Mexico (11/13/2000)
The Clinton Administration said it would push forward with a case before
the World Trade Organization accusing Mexico of erecting unfair barriers to
keep American companies from competing in Mexico's $12 billion telecom
market.

Satellite Communications
EchoStar's DISH Offers New Services (11/17/2000)
With final passage of satellite TV legislation by Congress last December,
EchoStar announced that DISH network will offer counties in New Mexico,
Arizona, and Colorado local ABC, CBS, NBC, and FOX network channels for
$4.99 a month.

Pegasus Launches Satellite Internet Service (11/17/2000)
Pegasus Communications introduced its Pegasus Express Powered by DirecPC
services, which is to be launched by its broadband division in the first
quarter 2001. Pegasus’ service offers high-speed Internet access to US
consumers through a two-way, broadband, satellite connection. Features
available through the service include Web browsing, streaming data, and
video multicasting.

Comcast Plays Country Music (11/17/2000)
MTV announced that its 24-hour music channel, CMT, will launch in more than
4 million Comcast Cable households nationally over the next four years,
with 2 million to launch by year's end.

PanAmSat Launches New Satellite (11/16/2000)
PanAmSat announced the successful launch of its PAS-1R satellite, which is
part of the company's Atlantic Ocean Region satellite system. The launch
took place from the Guiana Space Center in Kourou, French Guiana. The
PAS-1R replaces the PAS-1 satellite and, located at 45 degrees west
longitude, will provide video, data broadcasting, and broadband Internet
services to customers in the Americas, the Caribbean, Europe, and Africa.
The satellite will also provide PanAmSat's SPOTbytes DVB service to Latin
America and its NET-36 service to Latin America and Europe. SPOTbytes DVB
provides a connection to the US Internet backbone, and the NET-36 IP
Broadcast Network offers broadband streaming media to edge servers in
broadband networks.

Hughes in Pact with EarthLink (11/16/2000)
Hughes Network Systems formed a pact with EarthLink to offer two-way,
high-speed satellite Internet services through DirecPC. EarthLink's service
will include high-speed access with such content as streaming video and
online music.

Alcatel Introduces PnP Broadband Access Server (11/17/2000)
Alcatel introduced the 7404 Broadband Access Server, a plug-and-play device
offering a wide range of high-value revenue opportunities for Internet
service providers (ISPs). The 7404 aggregates DSL, cable, and wireless
broadband with the processing power to run even the most complicated
network.

Wireless Communications
BellSouth Wireless Data Teams with EverTrac (11/17/2000)
BellSouth Wireless Data joined with EverTrac to develop location-aware,
mobile e-business solutions. EverTrac is offering its fleet management
system, which will be used in conjunction with BellSouth's Intelligent
Wireless Network to send vehicle and fleet data from the automobile to the
home office.

BT Offers Unlimited Wireless Internet (11/17/2000)
In a move to stimulate its mobile Internet service, British Telecom
announced that it will offer unlimited wireless Internet access for a flat
monthly fee. The services will be offered through BT's Openworld Internet
division rather than its Cellnet mobile unit, and will offer unlimited text
messaging and un-metered Wireless Application Protocol (WAP) mobile
Internet access for 10 pounds a month each. The service, which uses the
Genie brand name, was established to revive enthusiasm for the mobile
Internet; but in the end, its operating costs may outstrip the revenues it
generates. Unlimited text messaging is bound to be popular in a country
that sends over 500 million text messages per month, and ten pounds per
month would pay for less than four text messages per day on a metered
tariff.

Ericsson to Ship CDMA Handset (11/16/2000)
Ericsson is shipping its A1228c CDMA-based handset, which completes the
company's portfolio of mobile Internet products. Users of the A1228c, which
operates on the 800-MHz band on both digital and analog networks, have
access to the Web, e-mail, and mobile information and communication
services. The phone also includes a WAP microbrowser for Internet
connections over WAP networks.

Sprint PCS Offered through CompUSA (11/16/2000)
Sprint PCS is offering its services through 220 CompUSA stores located
within the company's network coverage area. CompUSA customers can purchase
any Sprint PCS phone, provided by Kyocera, QUALCOMM, Motorola, and Samsung,
and can purchase a service plan at a discount.

Alamosa PCS Expands to Six New Markets (11/16/2000)
Alamosa PCS, a Sprint PCS Network Partner, is launching its service in six
markets in Wisconsin. The company is offering Sprint PCS services in
Appleton, Oshkosh, Green Bay, Fond du Lac, Manitowoc, and Sheboygan. These
markets include 955,000 residents.

Sprint Adding Voice to PCS Services (11/16/2000)
Through an agreement with BeVocal, Sprint PCS is adding a voice portal to
its wireless services. Using BeVocal's Total Voice Portal Solution, Sprint
PCS customers will gain access to Sprint PCS' Voice Command features that
allow them to access driving direction, business locations, Internet
content through voice-activation. Users will also be able to make calls by
dialing with their voices.

Ericsson Signs ENGINE Contract (11/15/2000)
Ericsson signed a multi-service network contract with Germany's Callino,
which selected Ericsson's ENGINE for the upgrade of its network. Ericsson
is providing the company with an ATM-based network that includes interfaces
for both Wireless Local Loops and DSL. Callino will connect that network
with voice networks throughout Germany. Ericsson's ENGINE solution allows
operators to provide fixed and variable data transmission rates and
supports such services as UMTS.

Vivendi and Vodafone Offering Content (11/15/2000)
To compete with i-mode in Japan, Vivendi and Vodafone Group are offering
Internet content through cellular phones operated by J-Phone as part of a
mobile Internet information service. The two companies are offering the
services through the WAP system and are pitting themselves against NTT's
i-mode.

OmniSky To Offer Wireless Internet (11/13/2000)
OmniSky announced a test of its wireless Internet and e-mail service, which
is running on the Compaq iPAC Pocket PC. The OmniSky service includes
full-color features and supports such protocols as PQAs, Microsoft Mobile
Channels, and AvantGo. The test is beginning in January 2001 for iPAQ
owners.

TeleCorp out of Spectrum Auction (11/13/2000)
AT&T Wireless' largest affiliate, TeleCorp PCS, is keeping out of the
auction of wireless spectrum to take place in December. The company
believes that the cost of the spectrum would be too high and that it
already has enough spectrum to ensure a strong position. TeleCorp did not
file as a separate entity with the FCC to take part in the auction.

BellSouth Wireless Data in New Strategy (11/13/2000)
BellSouth Wireless Data is launching an AirBoss Wireless Web proxy server
based on HTTP along with a AirBoss Microbrowser. Both products were
supplied by Geoworks and will allow BellSouth to offer Web access through
its handheld devices over the BellSouth Intelligent Wireless Networks.
Using the service, enterprises will be able to implement Web-based
applications such as sales force automation, banking, and field services.

Ericsson in Bolivian Contract (11/13/2000)
Entel Movil, an operator in Bolivia, awarded Ericsson a $36-million
contract for a GPRS mobile network, the first to be implemented in Latin
America. The contract calls for the build out of a GSM network in La Paz,
Santa Cruz, and Cochabamba. Ericsson will then supply Entel Movil with the
GPRS network, which can be used to offer high-speed Internet and online
services.

Nokia Supplying Base Stations to Irish Company (11/13/2000)
Nokia entered an agreement to supply Esat Digifone with its GSM base
stations, which will be used to expand and upgrade the Irish operator's
dual band network throughout the country. Nokia is delivering both its 900
and 1800 GSM base stations and controllers for the expansion and upgrade,
which should be completed by the end of 2000.

Sierra in Agreement with Verizon (11/13/2000)
Verizon Wireless entered a $30-million agreement with Sierra Wireless for
the provision of AirCard 555 dual-band wireless PC cards. With the
CDMA-based technology, wireless Internet users will be able to access the
Internet and other applications through wireless devices at speeds of 144K
bps. The AirCard 555 fits in either a laptop or handheld computer device.

BT Shows Lack of Interest In Belgium UMTS (11/13/2000)
While British Telecom indicated a lack of interest in bidding for a 3G
license in Belgium, citing that it does not have a presence in the
country's cell phone market in the first place, the company may reconsider
as the date of the auction draws closer. BT, which is undergoing a major
restructuring, is the fourth telecom operator to express a lack of interest
in the auction.

Swiss Postpone UMTS Auction as Bidders Merge (11/13/2000)
Switzerland postponed its UMTS auction as the number of bidders dwindled to
four, who would bid on four UMTS licenses. The postponment makes the Swiss
sale the third flop in a row after Austria and Italy. Swiss authorities
delayed the affair at the last moment when two of the five remaining
bidders agreed to merge.

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

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