Faulkner Telecom Weekly October 20, 2000 (fwd)
Missy Harvey
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Date: Monday, October 23, 2000, 11:45 AM -0400
From: Faulkner Telecom Weekly <telw...@faulknerinfo.com>
To: ???
Subject: Faulkner Telecom Weekly October 20, 2000
Scroll down for complete coverage of the telecom week in review.
Telecom Weekly
October 16, - October 20, 2000
Top Story of the Week
AT&T Appeals to Clinton (10/20/2000)
Facing a mid-December deadline on how to reduce its share of the US cable
market, AT&T is seeking President Clinton's help to change how the
government defines ownership in the cable market. Current laws limit
ownership of the cable market to 30 percent; AT&T is arguing that the
regulations take into account passive interests in companies that AT&T does
not control or influence, pushing its share of the cable market to 42
percent. AT&T agreed to shed some of its cable interests by May 19, 2001 as
a condition of the MediaOne acquisition. AT&T is now working with Senator
Ted Stevens to modify the rules and is calling on Clinton to help. In a
letter to the President, AT&T CEO Michael Armstrong lobbied for a
"modification of the rules that would attribute a cable system's
subscribers to a provider that owns the system, controls the system, or
influences the system's selection of programming." Consumer groups and the
US Telecom Association are urging lawmakers to reject any such changes
AT&T, contending that it would allow the company to exert control over
programmers and consumers.
Acquisitions, Mergers, and Divestitures
Vivendi, Seagrams Closer to Merger (10/20/2000)
The proposed merger of French conglomerate Vivendi and Seagram has been
cleared by Canada's Ministries of Canadian Heritage and of Industry Canada.
The deal already received antitrust clearance from the European Commission,
the Canadian Competition Bureau, and US regulators.
BT and AT&T Abandon Merger (10/18/2000)
A month after British Telecom confirmed that it and AT&T were exploring
ways of strengthening the scope of the relationship between their business
segments, BT and AT&T ended talks to merge their business units.
Discussions continue and other options are still under review.
PictureTel Sells Starlight Networks to AxessPoint (10/18/2000)
AxessPoint acquired Starlight Networks from PictureTel's 1414c subsidiary.
Starlight Networks adds highly competitive streaming capabilities to
AxessPoint's distance learning and knowledge management solutions. 1414c
will retain licensing rights to Starlight's core streaming technologies,
and the companies signed a co-marketing agreement for Starlight's eVAS
Web-based software.
Ericsson Buying MPD (10/16/2000)
Ericsson signed an agreement to acquire Microwave Power Devices (MPD) for
$100 million. Under the agreement, Ericsson will pay a cash tender offer
for all of the outstanding shares of MPD's stock. MPD manufactures radio
frequency and microwave linear high power amplifier products, including the
Multi Carrier Power Amplifier, which are used in radio base stations in 3G
mobile systems. Ericsson will use the technology to develop its own 3G
products. The transaction has been approved by the MPD board of directors,
but awaits regulatory approval.
ITXC Completes eFusion Acquisition (10/16/2000)
ITXC completed the acquisition of eFusion. The merger agreement calls for
the issue of 5.9 million shares of ITXC stock and ITXC stock options that
will substitute for eFusion stock options. eFusion is a developer of
voice-enabled applications for service providers, e-commerce companies, and
call centers. Its services include the Push to Talk Service, which allows
Web merchants to connect with buyers over Web browsers and through PCs or
phones. With the acquisition completed, ITXC will begin spending $200
million to expand the services of both itself and eFusion.
Sonera's Likely Partners are European (10/16/2000)
Finnish telecom operator, Sonera, is likely to find a future partner among
Europe's operators. The Finnish group, seen as too small to make it on its
own in the current market, has about six leading operators, including
France Telecom's Orange and Spain's Telefonica, willing to link up with it.
If the company does not find a partner by the end of the year, it is likely
to abandon attempts to merge with a foreign player.
Alliances and Joint Ventures
WebLink Creates International Network (10/20/2000)
WebLink Wireless and Canada's Bell Mobility made the first international
ReFLEX two-way messaging network available to customers. The two companies
entered into a 10-year agreement to offer wireless e-mail and instant
messaging over the network in both the US and Canada. Under a similar
agreement, WebLink will be offering two-way messaging in Mexico in
cooperation with Telmex beginning in 2001.
Motorola Joins with Go2 Systems (10/18/2000)
Motorola entered a Memorandum of Understanding with Go2 Systems to create a
multi-year strategic alliance. The two companies are integrating their
technologies and distribution channels to offer content and services from
Go2 using products and platforms from Motorola.
Motient Teams with Yahoo! (10/18/2000)
Yahoo! agreed with Motient to offer its content and services over a new
wireless service from Motient called eLink two-way mobile and Internet
communications. Through the service, customers in 97 percent of the US'
MSAs have immediate access to Yahoo!, including Yahoo! Mail, Yahoo!
Messenger! Yahoo! Address Book, Calendar, and Yahoo! Alerts. In addition,
customers are able to access Yahoo! with the WAP-based mobile browser from
Neomar.
PanAmSat in Agreement with Networks (10/18/2000)
PanAmSat entered agreements with ABC Cable Networks Group, the ABC
Television Network, and ESPN Networks. Under the three agreements, PanAmSat
will offer programming from these networks for the next 15 years. The
company is expanding its distribution to include the Disney Channel, ESPN,
and SoapNet and is increasing capacity on its satellites for cable
programming offered by Disney.
EchoStar and GeoCast Provide Broadband via Satellite (10/18/2000)
EchoStar Communications and GeoCast Network Systems agreed to deliver
personalized broadband services to PC users via EchoStar's DISH Network.
The agreement will grant GeoCast a nationwide audience, while delivering
new PC services to EchoStar's subscribers.
Comcast Commits to Motorola Modems (10/18/2000)
Motorola committed to providing Comcast Cable with SB3100 and SB4100
SURFboard DOCSIS cable modems through the end of 2001. The agreement will
enable Comcast to continue to provide its high-speed Internet access to an
even larger base, while securing Motorola's place as the market leader for
DOCSIS cable modems.
Ericsson Invests in Littauer (10/17/2000)
Ericsson announced it is making a $36-million investment into Korea's
Littauer Technologies, an e-business solutions provider in Asia. With the
investment from Ericsson, Littauer is bringing together its e-business
solutions and infrastructure with Ericsson's mobile Internet technologies.
QUALCOMM Becomes Skybridge Partner (10/17/2000)
Skybridge announced that QUALCOMM is a shareholder and limited partner in
the satellite company. Having QUALCOMM as a limited partner will give
Skybridge access to the company's intellectual property, and other
Skybridge partners will be able to license QUALCOMM's CDMA technology for
terminals and gateways.
Mangosoft Licenses RSA's BSAFE (10/17/2000)
RSA Security reported that Mangosoft licensed the RSA BSAFE Crypto-C
software for its Mangomind (Multi-user InterNet Drive) Business Internet
File Service. By selecting RSA' software, Mangosoft will enable multiple
users secure transmission, sharing, and storage of files using private key
128-bit encryption via its Mangomind service.
Nokia in 3G Agreement (10/16/2000)
Nokia entered an agreement with KG Telecom for the development of 3G
technologies. The two companies are cooperating to create 3G networks and
applications as well as mobile IP services. Through its agreement with
Nokia, KG Telecom hopes to jump-start its entrance into the emerging 3G and
mobile Internet service markets.
Marubeni Plans Telecom Unit (10/16/2000)
Japanese trading house Marubeni plans to unveil a new telecom subsidiary,
run by foreign executives and with leading overseas software suppliers. The
new unit, called Vectant, will announce tie-ups with SAP of Germany and
Siebel Systems and Vastera of the US; it will outline plans to sell a range
of computer, Internet, and other services.
Broadband/Cable Networking
KDDI Mulling US Tie after March Wireless Auction (10/19/2000)
KDDI is considering ties with US wireless carriers after auctions for a
waveband, that can be used for 3G mobile phone services, in March 2001.
KDDI, created through a three-way merger on October 1, is the only telecom
group in Japan without a foreign alliance.
Focal Activates Fiber Network (10/18/2000)
Focal Communications activated 3426 miles of its own SONET fiber-network in
the New York, New Jersey, and Washington DC markets. Focal will continue to
implement the second phase of its "smart-build" approach to designing its
networks through ownership and operation of its own switches while leasing
fiber capacity.
Road Runner Adds 220,000 Subscribers (10/18/2000)
Road Runner set a record for new broadband subscribers in a single quarter
by adding 220,000 in the third quarter 2000. Of the 19.5 million homes Road
Runner passes, 1.1 million consumers have subscribed to the high-speed
Internet service.
Excite@Home and Comcast Introduces Self-Install Kits (10/18/2000)
Excite@Home offered a new retail software kit which will allow new
subscribers to install the company's broadband services themselves. The
QuickStart Kit, which is designed to eliminate the need for a technician to
install the service, will be available to Comcast subscribers at local
Circuit City and CompUSA stores. Other cable partners will begin offering
the service at a later time.
Lucent and CopperCom Deliver In-Building Broadband (10/18/2000)
Lucent Technologies and CopperCom partnered to deliver in-building
voice-and-data-over wireless broadband solution to providers targeting
business consumers. Winstar Communications will rollout the service in
three primary markets, deploying a solution which combines the bandwidth
benefits of in-building DSL technology with the economy of an integrated
fiber and fixed wireless network. Los Angeles, San Diego, and San Antonio
will be offered the service, which uses Lucent's Cellpipe integrated access
devices and Stinger DSL access concentrators with CopperCom Gateways.
Rhythms Introduces Next Generation Network Solution (10/18/2000)
Rhythms NetConnections introduced IP Path, a bundled high-speed Internet
access service using DSL and backbone Internet access. IP Path supports
next generation broadband providers, including application service
providers (ASPs), broadband integrators, and Internet service providers
(ISPs). IP Path bundles Rhythms' high-speed Internet access over a
Cisco-powered network with (3)CrossRoads Internet access offered by Level 3
Communications. Rhythms' services include high-speed connections to the
Internet and private networks at speeds ranging from 128K bps to 8M bps.
Telstra, PCCW Plan $4B Cable (10/16/2000)
Telstra and Pacific Century CyberWorks will invest up to $4 billion to
build a global cable network. The network, which would initially span Asia,
North America, and Europe, would be the first major project undertaken by
the two companies IP backbone joint venture. The network would have a
capacity of more than 2.5 terabytes a second and will be operational by
2002.
CLECs
Allegiance Telecom Offers Service in Phoenix (10/18/2000)
Allegiance Telecom targeted small and medium sized businesses when
introducing service in the Phoenix area. Allegiance already offers service
in 25 other markets, offering a suite of services in one consolidated
telecommunications package. Allegiance also plans to provide services in
Tempe, AZ beginning in 2001.
Conferencing
PictureTel Customers Trade-up (10/20/2000)
PictureTel initiated a program that will increase the availability of their
newest series of videoconferencing equipment. Customers can swap their
current equipment for a PictureTel 960 or 970, and can take as much as
$6500 off the price. Customers can also use XGA monitors and projectors
they already own with the new equipment, or they may purchase new monitors
and other equipment for up to 50-percent off.
CTI and Call Centers
L&H Provides New Speech Solutions (10/18/2000)
Lernout &
Hauspie introduced the L&H Solution Series, a new line of speech
recognition and productivity products. The Solution Series, which consists
of four separate products for professional, legal, medical, and public
safety publications, offers tools for the creation, formatting, and
assembly of documents with the use of macros, dictation, and form filling
software.
Kana and Aspect Form Alliance (10/18/2000)
Kana Communications and Aspect Communications signed an agreement to
integrate Aspect's Customer Relationship Portal and Web Interaction with
Kana's Internet-based enterprise relationship management solutions. The
combined product will allow organizations to manage all interactions,
across all touch points, on a fully scalable and modular Internet-based
platform.
Financial News
Broadwing Announces Record Third Quarter (10/20/2000)
Broadwing reported a record financial performance for the third quarter
2000. Revenues increased by 25 percent, growing to $531 million, and EBITDA
increased 56 percent to $137 million. Broadwing's cable, local phone, and
wireless units all reported increased revenues over the same period of the
previous year.
Covad Stock Plummets 60 percent (10/20/2000)
Covad's stock fell nearly 60 percent and hit an all-time low after posting
revenues that decreased 15 percent. The company cited partners having
trouble paying bills as the reason for the drop. Covad also assured that
those revenues would be made up in the current quarter and that the company
would stop posting losses within two years. Stock of DSL providers
NorthPoint and Rhythms NetConnections also dropped 18 and 25 percent,
respectively.
Nokia Reports Strong Net Sales (10/20/2000)
For the third quarter 2000, Nokia's net sales totaled EUR 7.57 billion, a
50 percent increase from EUR 5.03 billion in the third quarter of 1999. The
company also experienced a big jump in operating profits, which rose 39
percent from EUR 951 million to EUR 1.322 billion. Two of the strongest
areas of Nokia's business included Nokia Networks, which continued to lead
in network technologies, and Nokia Mobile Phones, which was able to further
the combination of mobility and the Internet. Net profit for the quarter
was EUR 892 million, compared to EUR 638 million, and earnings per share
were EUR 0.19 per share, up from EUR 0.14 per share.
BellSouth Continues Financial Growth (10/20/2000)
Boosted by strong sales in the wireless and data sectors, BellSouth
reported that its third quarter profits rose 4.2 percent. Net income was
$1.04 billion, or $0.55 per share, compared to $995 million, or $0.52 per
share, for the same period last year. Consolidated revenues increased 7.5
percent to $6.9 billion. Data revenues or $894 million represented more
than 40 percent of consolidated revenue growth and the company's DSL
customer base increased more than 80 percent during the quarter. At the end
of the quarter BellSouth had 6.2 million wireless telephone customers in
the US before merging the wireless assets with SBC Communications wireless
operations this month. BellSouth also added more than one million
international wireless subscribers, bringing its total wireless base to
more than 8.7 million. Cingular, the wireless venture between BellSouth and
SBC, plans to tender an IPO next year. Also BellSouth will launch a
tracking stock for its wireless operations in Latin America next year.
Sprint Operating Income up 18% (10/20/2000)
For the third quarter 2000, Sprint reported consolidated net operating
revenues of $5.97 billion, an 18-percent increase from $5.07 billion in the
third quarter of 1999. Net operating revenues for the FON Group were $4.4
billion, compared to $4.3 billion. Net income for the group was $384
million, or $0.44 per diluted share, compared to $359 million, or $0.42 per
diluted share. Total net operating revenues for Sprint PCS nearly doubled
to $1.67 billion from $844 million. Net loss for the wireless operation was
$390 million, or $0.41 per share, compared to $615 million, or $0.65 per
share last year. At the end of the quarter, Sprint PCS had 8.61 million
direct and resale customers and more than 550,000 affiliate customers.
Ericsson Profits Increase (10/20/2000)
For the third quarter 2000, Ericsson earned 4.4 billion kronor, up from 2.6
billion kronor for the same quarter in 1999. Net sales for the quarter were
67.3 billion kronor, up from 49.2 billion kronor. Despite overall
increases, Ericsson's losses widened in its cellular phone unit. The
consumer products unit had an operating loss of 4.1 million kronor.
Operating loss for the same quarter in 1999 was 619 million. The company is
now predicting a loss of around 16 billion kronor for the full year in its
mobile phone unit. Ericsson attributed the losses to shortages from a key
supplier, price competition, and restructuring changes. In an attempt to
restore profitability, the company will transfer the production of handset
units from Sweden and the US to Asia, Eastern Europe, and Latin America.
Also in an effort to ease financial troubles, the company is canceling the
launch of its Bluetooth world T36 phone in favor of the R520 phone.
Scientific-Atlanta Reports High Profits (10/20/2000)
For its fiscal 2001 first quarter, Scientific-Atlanta's revenues were
$597.2 million, an increase from $349.3 million for the first quarter in
the previous year. The company earned $113.3 million, or $0.67 per share,
compared to $25.3 million, or $0.16 per share, including an after-tax gain
of $49.5 million. During the quarter, Scientific-Atlanta recorded 1.2
million orders for its Explorer set-tops.
FT Details Orange IPO (10/20/2000)
France Telecom expects to raise as much as $11.74 billion through its
planned IPO of shares in its Orange unit in January. If all goes according
to plan, FT would use proceeds from the IPO to repurchase FT shares held by
Vodafone, which acquired the shares through its sale of Orange.
Italian UMTS Auction Kicks Off (10/19/2000)
In Italy, six telecom rivals cast their opening bid for one of five
new-generation mobile phone licenses up for grabs in Europe's largest
mobile phone market. Four Italian telecom operators and two newcomers are
battling for UMTS licenses: Telecom Italia Mobile and Vodafone-controlled
Omnitel; Enel and France Telecom's joint venture, Wind; British Telecom and
Autostrade backed Blu; and IPSE, a group controlled by Telefonica and
Hutchison-backed Andala. The tender is expected to raise between $17 to $30
billion.
BT Receives Refund (10/19/2000)
Following a five-year legal battle to reduce charges accessed by local
governments in England and Wales, British Telecom is to receive a $362.7
million refund.
Blu Shareholders Must Decide on UMTS Bid (10/18/2000)
Amid mounting speculation of a rift over UMTS cost concerns, shareholders
of Blu, Italy's smallest wireless operator, are expected to decide whether
they will pull out of the bidding for a UMTS license and what role British
Telecom will play in the company. Blu's shareholders have given an informal
ultimatum to BT, which owns 20 percent of Blu, demanding that BT raise its
stake to at least 51 percent or that it agree to be replaced by another
telecom giant.
Time Warner Beats Estimates (10/18/2000)
Time Warner announced that its third quarter earnings beat Wall Street
estimates by 13 percent. The media giant's earnings before interest rose to
$1.27 billion in the third quarter from $1.128 billion in the previous
year. Time Warner's earnings rose to $0.07 per share, beating Wall Street
estimates of $0.04 per share.
Verizon Wireless Delays IPO (10/17/2000)
Because of the volatile nature of the stock market, Vodafone Group, Verizon
Communications, and Verizon Wireless are delaying the $5 billion IPO for
Verizon Wireless that was scheduled for later this year.
US Cellular Has Growing Service Revenues (10/17/2000)
During the third quarter 2000, US Cellular reported service revenues of
$396.6 million, a $36.5 million increase from $360.1 million in the same
quarter in 1999. Net income was $71.8 million, or $0.84 per share, compared
to $57.1 million, or $0.65 per share. The company added 107,000 net
customers throughout the quarter.
Orange Quits UK's Internet Auction (10/17/2000)
Mobile phone firm Orange pulled out of the UK government's auction of
licenses to provide wireless Internet services to desktop computers,
bringing to 11 the number of companies still bidding for 42 licenses that
are expected to raise some $2.93 billion for the government. Orange's
owner, France Telecom, is preparing to float the company next year.
Network Associates Posts 3rd Q 2000 Results (10/17/2000)
Network Associates reported third quarter 2000 revenues of $226.2 million,
a 20 percent increase over last year's $188.4 million. The company reported
a net income of $39.8 million, or $0.27 per diluted share, compared with a
net income of $20.3 million, or $0.13 per diluted share a year ago.
Tellabs Reports 3rd Q 2000 Results (10/17/2000)
Tellabs reported third quarter 2000 revenues of $870.6 million, up 46.2
percent from last year's $595.4 million revenues. The company reported a
net income of $210.4 million, a 48.9 percent increase from last year's net
income of $141.2 million. Diluted earnings per share were $0.50, compares
with diluted earnings per share of $0.34 last year.
Internet/Intranet
NetVoice Working with NetSpeak (10/20/2000)
NetSpeak is part of NetVoice's plan to expand its Cisco Powered Network.
NetVoice currently covers 34 markets covering 400 cities, and the company
wants to cover 50 markets by the end of the year. As part of the existing
relationship with NetVoice, NetSpeak is providing its iTEL platform, which
will allow NetVoice to manage its IP network and to offer lower costs and
better quality of service.
Infonet Helps Lineinvest Expand in Latin America (10/19/2000)
Infonet has been selected to support the regional expansion of Lineinvest,
an independent online distributor of financial products in Latin America.
Lineinvest will use Infonet's Global Internet Services to unite and
consolidate local and regional communications as the company expands its
financial portal from Argentina and Brazil to Chile, Peru and Venezuela.
Lycos Asia Launches Portal Site (10/19/2000)
Lycos Asia, a joint venture between Lycos and Singapore Telecom (SingTel),
Southeast Asia's leading telecom provider, announced the launch of Lycos
Indonesia, a portal site dedicated to Internet users in Indonesia and
individuals with a special interest in that country.
First Capital and Infonet Subsidiary Sign Agreement (10/18/2000)
First Capital International, an Internet Holding company, signed a VoIP
service agreement with Networks Telephony, a wholly owned subsidiary of
Infonet. The agreement will provide a full VoIP service to the company's
customers in Central and Eastern Europe.
Sprint PCS and Nortel Building Network (10/17/2000)
Using IP technology for voice and data, Sprint PCS and Nortel Networks are
collaborating on the construction of a wireless network test bed. With the
test bed, both companies will be able to test the e-mobility Multimedia
Core IP Network designed for operators, service providers, and other
vendors. The IP network from Nortel will allow mobility across a wide range
of access technologies. In addition, Sprint PCS is testing those access
technologies, including cdmaOne and cdma2000 IXRTT, which supports 144K bps
data transmissions.
PhoneFree.com Connects to ITXC (10/16/2000)
PhoneFree.com connected its PC-to-Phone calls to ITXC, adding the company
to its list of providers. With the webtalkNOW! Service from ITXC,
PhoneFree.com will be able to send calls all throughout the US and from
anywhere in the world to the US.
Wanadoo in Talks to Acquire iBazar (10/16/2000)
France Telecom's Internet service, Wanadoo, is in talks to acquire French
online auction leader iBazar in an all stock transaction. The purchase of
iBazar could increase Wanadoo's ability to draw more e-commerce-related
revenue from its approximately two million subscribers.
IXCs
Vodafone to Compete with BT (10/20/2000)
Vodafone announced plans to move into fixed line businesses to compete with
BT. The company's strategy is to offer services to both UK businesses and
consumers at a lower price that BT's. Vodafone struck a deal with Atlantic
Telecom Group to provide the services, although they will be offered under
the Vodafone brand name.
Vodafone Steps Up Fixed-Line Challenge to BT (10/19/2000)
Vodafone increased the pressure on British Telecom by announcing an
aggressive expansion of its UK fixed-line services. Vodafone will offer
calls up to a third cheaper than BT's under a deal with Atlantic Telecom.
Vodafone has offered fixed-line services for more than three years, but the
new deal adds to the intense competition that is eroding profits for BT in
its traditional core market.
Telia to Expand Carrier Network (10/16/2000)
Telia chose Ericsson's ENGINE Bridgehead service to enable the Swedish
operator fast deployment of carrier class voice and data services as they
expand throughout the European market.
Personnel and Organizational Changes
WorldCom Considers Tracking Stock (10/20/2000)
Instead of spinning off or selling its consumer and wholesale businesses,
WorldCom may be creating a tracking stock to help boost its floundering
operations. The company was not planning a stock offering while the merger
with Sprint was still a possibility; but since the merger was blocked, and
because of the sliding stocks of long-distance companies, WorldCom has
changed its focus. By creating a tracking stock for the two units, WorldCom
will be able to concentrate on faster-growing businesses, such as data and
Internet. Long distance companies are being hurt by increased competition,
which forces companies to lower prices. Other options, including selling or
spinning off the operations, could cause WorldCom to face regulatory
hurdles and massive tax consequences.
AT&T Meeting to Discuss LD Spin-off (10/20/2000)
The Wall Street Journal reported that AT&T's board of directors in meeting
on October 23 to discuss the possibility of spinning off the company's
consumer long distance business. If the reorganization is approved, it
could be announced as early as next Wednesday when AT&T reports its third
quarter financials. Earlier in the week there were reports that AT&T was
talking with Sol Trujillo, former head of US WEST, now Qwest
Communications, about taking charge of long distance operations.
Lockheed President Calls It Quits (10/20/2000)
Louis R. Hughes, president and COO of Lockheed Martin, is leaving the
company on October 31 for personal reasons. Hughes has held this position
for only six months and is being replaced by Robert J. Stevens, who has
been serving as the company's executive vice president and CFO. As both CFO
and COO, Stevens will be able to focus on restoring Lockheed's financial
stability. Stevens will remain CFO while taking over both positions held by
Hughes; he was also elected to the board of directors.
Motorola Names CIO (10/17/2000)
David R. Cox was named senior vice president and CIO of Motorola. Cox joins
the company after servings as the CIO for both Bell Canada and Nortel
Networks. He will be in charge of enterprise resource planning and of
developing e-business strategies, strengthening Motorola's information
technology services.
Motorola Unit Head Resigns (10/16/2000)
Motorola announced the resignation of its Communications Enterprise unit
president, Merle Gilmore, who will be replaced on an interim basis by
Robert L Growney, the company's president and COO. Gilmore's unit is in
charge of Motorola's cellular phone operations, a unit plagued by declining
orders and intense competition-notable from Nokia..
Surprise Departures at T-Online (10/16/2000)
The unexpected departures of three top executives at Deutsche Telekom's
T-Online have unnerved DT management. CEO Wolfgang Keuntje, who built the
company from scratch through mergers and acquisitions, resigned in late
August. Keuntje was replaced by Detlev Buchal. In late September, CFO
Christian Heoning walked out the door. The week before it was Ralf Eck, who
oversaw product development and marketing.
RBOCs
Verizon Warns of Calling Card Scam (10/20/2000)
Customers of Verizon Communications are being warned to watch out for a new
calling card scam that could add unauthorized charges to their phone bills.
With a customer's personal information, scam artists are able to obtain
phone cards that can be used to make long distance calls that are charged
to customers. The scam begins when thieves call Verizon customers claiming
to be Verizon employees. They inform customers that they have overpaid for
phone service and offer to credit the customers' accounts if they confirm
their personal information. With the information in hand, scam artists are
able to obtain the phone cards. Verizon warns its customers not to give
their information over the phone and states that all accounts are
automatically credited when customers overpay. No Verizon employee will
contact them.
Regulatory News
Verizon fined for Slamming (10/20/2000)
Verizon Communications, the first regional Bell to sell long distance
services within its own area, agreed to pay $1.75 million in fines for
possibly slamming New York customers. The company was slapped with a
$250,000 fine by the FCC and agreed to reimburse 34,000 NY customers $1.5
million. The FCC launched an investigation for possible slamming when
Verizon did not have records for some long distance customers that were
signed up by third parties. In other news, the Massachusetts Department of
Telecommunications and Energy recommended that the FCC approve Verizon's
bid to offer long distance services in the state. The FCC is expected to
decide my December.
Clause Limiting DT, VoiceStream Deal Review Out (10/19/2000)
A provision to a spending bill that would have prevented US regulators from
considering Deutsche Telekom's proposed acquisition of VoiceStream Wireless
has been struck out of legislation. The deal, now valued at about $28
billion, already received clearance from the US Justice Department but must
also win approval from the US Committee on Foreign Investment.
FCC Clearing Airwaves for Wireless (10/16/2000)
The FCC is allocating airwaves for commercial wireless use. The FCC is
making 50MHz of spectrum available in the 3650-3700 band for commercial
services, such as voice, data, and video. In addition, the FCC is proposing
licensing and service rules for this spectrum and may be pairing it with
50MHz of spectrum on the 4940-4990 band. Through these actions, the
Commission hopes to foster increased competition and to enable the
introduction of services into new areas, especially in rural regions.
Satellite Communications
DIRECTV Presents Interactive TV Preview (10/20/2000)
DIRECTV, Wink Communications, and THOMSON introduced DIRECTV INTERACTIVE to
one million households subscribing to DirecTV's digital satellite service.
The new service includes program-related interactive content from existing
networks, as well as new interactive channel offerings from DIRECTV, Barnes
&Noble.com, ESPN, NBC, and the Weather Channel. DIRECTV expects to have
five million subscribers by the end of 2001.
Globalstar USA Announces Pricing Promotion (10/16/2000)
Globalstar USA introduced its Time or Money promotion, which allows new
customers purchasing a handset and a Globalstar plan to receive a coupon
redeemable for 300 free minutes or a $300 rebate on the price of a phone.
Even though Globalstar phones can function as both cellular and satellite
phones, this offer is aimed at potential customers in regions where
cellular is not available.
Security
Entrust Selects Ventaso for Sales Force Merger (10/17/2000)
Ventaso reported that Entrust Technologies will implement Ventaso's sales
and marketing software to help solidify Entrust's corporate messaging and
to serve its expanded sales force. Entrust recently merged with enCommerce
and is currently integrating the two sales forces and complementary product
lines.
Voice Processing
DataVoN and Broadwing Deploy VoIP to 29 Markets (10/18/2000)
DataVoN announced a deployment of its VoIP network to 29 new markets over
Broadwing's 18,000 mile pure-IP backbone. The deal grants DataVoN access to
a nationwide network infrastructure, bringing its total points of presence
to over 40 US markets.
Wireless Communications
Nextel Partners Expanding in Texas (10/20/2000)
Nextel Partners launched both its network and its four-in-one service in
the Corpus Christi-Victoria region in Texas. Designed for business
customers, the service combines cellular, two-way radio, wireless Internet,
and paging, and through Nextel Direct Connect, employees can contact other
employees with the touch of one button. The launch in the region also
includes four corridors: Interstate 37, Highway 281, Highway 77 north and
south, and Highway 59. With Nextel services in Corpus Christi, Nextel's
coverage expands further in Texas. The company already covers San Antonio,
Houston, Dallas, and Austin.
AOL Instant Messaging to Launch on Wireless Web (10/20/2000)
Sprint PCS entered an agreement with AOL to offer Instant Messaging on the
Sprint PCS Wireless Web. The service is available to AOL members, AIM
users, and Sprint PCS customers, who can send and receive private text
messages to other users in real-time through an Internet-ready phone. AIM
service is in addition to the AOL Mobile services already available on the
Wireless Web, and Sprint PCS is the first company to provide AOL Instant
Messaging through its wireless Internet service. The agreements forged with
Sprint are part of the AOL Anywhere strategy, which is designed to offer
AOL services through a range of platforms and devices.
Nokia and BT Cellnet in Expansion Deal (10/20/2000)
Nokia signed a deal worth 300 million pounds with BT Cellnet. Under the
agreement, Nokia is to supply GSM base stations and other GSM equipment to
expand BT Cellnet's network, making it ready to meet the demands of
offering voice and mobile Internet services. The Nokia UltraSite base
station will allow Cellnet to handle increasing amounts of voice and data
traffic and to support High-Speed Data, GPRS, EDGE, WCDMA as well as GSM.
In addition, Nokia is supplying its MetroSite base stations, which can be
installed in billboards and bus stops, and its InSite base stations, which
can be installed almost everywhere.
Ericsson Named as 3G Supplier for MobilCom (10/20/2000)
MobilCom made Ericsson their sole supplier for third-generation services in
a contract valued at $1.35 billion. As the only supplier, Ericsson will
build out MobilCom's network infrastructure as a turnkey solution for the
next three years. Choosing Ericsson comes just after MobilCom won one of
Germany's six UMTS licenses. The company desires a quick rollout of its
network, which will support services such as the mobile Internet.
China Unicom Building Network with QUALCOMM (10/20/2000)
Despite refusing to use CDMA technology in its network earlier in the year,
China Unicom is confirming plans to build a mobile phone network with
QUALCOMM's narrowband CDMA technology. When the network is built, it should
have the capabilities to cover nearly 10 million subscribers beginning some
time next year. China Unicom is creating a subsidiary to build and operate
the network, but it has not decided when the rollout of the network will
begin.
Verizon Unveils Prepaid Plan (10/20/2000)
Verizon Wireless launched its National Prepay Wireless Plan, a prepaid
version of its SingleRate plan. National Prepay Wireless includes no
roaming or long distance charges and low prepaid prices. Customers can
purchase replenishment cards at $30 for 60 minutes to $150 for 750 minutes.
The plan includes normal Verizon Wireless features such as voicemail and
call waiting.
China to Use QUALCOMM Technology (10/20/2000)
After a series of strategic talks, China Unicom will expand an existing
mobile phone network using technology pioneered by QUALCOMM. Last year, to
woo US support for its efforts to join the WTO, China agreed to build a
CDMA network, but Chinese support vanished as political tensions rose
between the two companies and telecom bureaucrats opposed building a new
network.
AT&T Wireless Offering News with i3 Mobile (10/18/2000)
AT&T Wireless enhanced its AT&T Personal News services through an agreement
with i3 Mobile. As part of the service enhancements, customers are allowed
three text messages on news, sports, or weather for free each day. The news
is provided by a wide selection of Internet content providers. In addition,
customers can purchase eight more new sources for $3.99 a month. In related
news, AT&T Wireless is offering instant, two-way text messaging for mobile
phones, which customers can use to send messages up to 150 characters long
to other phones, handheld devices, pagers, and e-mail addresses.
Bluetooth Spec Adopted by AnyDevice (10/18/2000)
The Bluetooth Special Interest Group industry consortium selected Any
Device as an Early Adopter member, making the company an important
developer of the technology standard. AnyDevice, as an Early Adopter, is
cooperating with companies like Ericsson, Intel, IBM, Microsoft, and
Motorola to further the adoption of Bluetooth for use in wireless and
landline equipment.
MSN Leading in Wireless Web Content (10/17/2000)
MSN released its MSN Mobile 3.0, the latest version of the company wireless
Internet content service. Following its initial release of MSN Mobile in
1999, the service has attracted over 1.5 million customers. Carriers such
as Sprint PCS and Verizon Wireless chose MSN to offer content for their
wireless Internet services. New features included in MSN Mobile 3.0 include
ticket purchasing, full news stories, calendars, and a customizable Start
menu.
Cingular Beginning Ad Campaign (10/17/2000)
After choosing BBDO as its advertising agency, Cingular Wireless will be
launching a marketing and advertising campaign next year when the
properties of both SBC and BellSouth are consolidated under the Cingular
brand name.
Motorola Signs with KDDI (10/17/2000)
Motorola was awarded a contract from Japan's KDDI for the provision of a
cdma2000 1x wireless network system. Under the contract Motorola is
developing the system to operate on KDDI's 800MHz network. After the
implementation of the system, KDDI will be able to provide a high-speed
packet data service at 144K bps and increased capacity for voice.
WebLink Activates International Network (10/17/2000)
WebLink Wireless and Canada's Bell Mobility made the first international
ReFLEX two-way messaging network available to customers. The two companies
entered into a 10-year agreement to offer wireless e-mail and instant
messaging in both the US and Canada over the network. Under a similar
agreement, WebLink will be offering two-way messaging in cooperation with
TelMex beginning 2001.
QUALCOMM Introduces CDMA Phone (10/16/2000)
In cooperation with China's ZTE Corp, QUALCOMM is introducing a CDMA phone
as part of the technology's introduction into the Chinese markets. QUALCOMM
is hoping that the release of a new CDMA phone in China is a sign that the
country will begin building networks using the technology standard. Even
after the company struck a deal with China Unicom for a CDMA network,
QUALCOMM is shifting its focus to equipment makers rather than carriers.
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