Faulkner Com Flash 10/18/00 - (Part 1 of 2) (fwd)

[Missy Harvey]

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Date: Wednesday, October 25, 2000, 12:05 PM -0400
From: Faulkner Information Services <mails...@faulknerinfo.com>
To: ???
Subject: Faulkner Com Flash 10/18/00 - (Part 1 of 2)

Com-Flash

Copyright 2000, Faulkner Information Services. All Rights Reserved.

Publication Date: 10/18/2000

Preview
Com-Flash is a biweekly news summary for Faulkner subscribers, covering
computer systems and software, and vendors. This flash covers the period
10/04/2000 to 10/18/2000.

Top of the News
After a four-month probe, the EU conditionally approved the $129 billion
merger of AOL and Time Warner. AOL and Time Warner agreed to allow a
competitive market for media and entertainment, first by severing ties with
Germany's Bertelsmann. Bertelsmann is one of five major music distributors
in the world and a joint owner of AOL Europe. The dissolution of AOL ties
with Bertelsmann and the recent ending of EMI/Time Warner's merger talks
have assured the EU that free market competition, especially in online
music distribution, will continue in Europe. AOL and Time Warner still must
gain approval of American regulators, where the mixture of AOL's media
distribution and Time Warner's high-speed Internet access has caused
concerns.

Mergers/Acquisitions
Arch Wireless' shareholders approved the company's pending merger with
Paging Network, one of the last hurdles to overcome to complete the
transaction. The deal also requires the approval of PageNet shareholders,
who are currently assessing the planned reorganization of the company as
outlined in its Chapter 11 proceeding. The reorganization is what
implements the Arch merger. A hearing on the PageNet plan is set for
October 26. In related news, the US Bankruptcy Court for the District of
Delaware denied Metrocall's request to file a competing plan to merge with
PageNet despite Metrocall's claims that its offer is superior to Arch's.

Metromedia Fiber Network agreed to acquire SiteSmith in a deal valued at
$1.36 billion. The acquisition will be an all-stock transaction which will
leverage MFN's optical IP infrastructures with the first global end-to-end
optical IP outsourcing solution, including design, architecture, hardware
and software installation, co-location and network connectivity, and
ongoing management. The merger also adds senior executives with extensive
managed services experience to MFN's management team. The deal is expected
to close by the end of 2000.

Finnish telecom operator, Sonera, is likely to find a future partner among
Europe's operators. The Finnish group, viewed as too minute to make it on
its own in the current market, has approximately 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.

As part of its plan to increase its presence in Latin America, Telefonica
plans to acquire five Mexican wireless operators from Motorola. The $2.63
billion acquisition will allow Telefonica to expand its Latin American
wireless network through Cedetel, Baja Cellular, Movitel, Norcel, and
Portatel. The company is in a hurry to complete this deal since its mobile
unit, Telefonica Moviles, is planning an IPO for next month, expecting to
offer 15 percent of its shares. Motorola's plans to spin off of its
wireless businesses, followed by an IPO, are thwarted due to the deal with
Telefonica.

Negotiations between Time Warner and AT&T are likely to come to an end
without resolution. Regulators reviewing America Online's acquisition of
Time Warner are questioning the potential anti-competitive ties between TW
and AT&T, the top two cable operators in the US. AT&T has a 25.5-percent
stake in Time Warner Entertainment through its MediaOne acquisition. Under
the conditions for the MediaOne deal, AT&T agreed to get rid of its stake
in TWE, sell some of Liberty Media Group, or shed cable systems to fall
below the FCC's 30 percent cap in the cable subscriber market. Compared to
the alternatives, the company believes cutting ties with Time Warner is the
most favorable option. If regulators require that TW dissolve its
relationship with AT&T as a condition of the AOL deal, AT&T could force TW
to pay a premium price for the stake.

Verizon Wireless is acquiring additional stakes in the Sacramento Valley
Limited Partnership for $236 million, which is being paid to Roseville
Communications. The company is buying the 24.2 percent stake owned by
Roseville along with 920,000 POPs, increasing Verizon Wireless' total stake
to 76.6 percent. Sacramento Valley Limited Partnership serves markets in
both Northern California and Nevada, including Sacramento, Stockton, and
Reno.

Vodafone Group sold seven of its networks to China Mobile for $32.84
billion, buying a two percent stake in the company worth $2.5 billion in
return. With the networks, China Mobile serves 48 percent of China's
population, making it the number two operator in the world in terms of
subscribers. The deal allows Vodafone to enter Chinese markets.

To expand its presence in Europe and to give itself a foothold in Ireland,
Vodafone Group is looking to acquire Eircom's wireless business, Eircell.
The four billion transaction would give Vodafone access to Eircell's one
million customers. Talks between the two companies are still at an early
stage and nothing is certain, especially since a number of other companies
also have their eye on Eircell. Eircom is possibly selling all or part of
the wireless unit in order to boost its stock or because it sees itself
unable to compete in the growing market in Ireland.

Alliances/Joint Ventures
Cable &Wireless (CWC) teamed up with Nortel Networks, creating the
industry's largest global Vo IP program. In a deal worth approximately $1.4
billion, CWC is upgrading its European and US resources to IP and VoIP
Internetworking. Nortel manages the network migration to IP, while CWC
retains full control of the network architecture and design of the VoIP
platform.

Ericsson and Compaq forged an alliance, developing switching computers for
the AXE-based wireless and wireline networks from Ericsson. Compaq is
incorporating its AlphaServer and Tru64 UNIX technology into the switches
so that Ericsson's networks can handle increased calling capacity with
standards-based technology. With Compaq's solutions imbedded in the
switches, Ericsson's network technology is compatible with the CompactPCI
platform, integrated systems that are based on Alpha technology and that
enable the delivery of standards-based servers. The agreement allows
Ericsson to develop network solutions with increased speed.

Nokia entered into a three-year agreement with DualStar Communications to
bring high-speed DSL equipment to major metropolitan US markets. After
conducting trials of the technology in the New York City metro area, Nokia
made deliveries to major cities across the country. The equipment includes
the Nokia D50 Digital Subscriber Line Access Multiplexer, network
terminals, the Nokia Network Management System, and components for the
Nokia Broadband IP Access solution. DualStar is using these tools and
components to provide a range of communications offerings to customers in
residential and commercial buildings. Such services include local and long
distance calling, high-speed Internet access, and satellite-based
television.

Novell and Akamai Technologies entered a into a strategic alliance to
enhance Web content delivery. Novell integrated Akamai's Akamaizer
functionality into the Novell Internet Caching System (ICS) and Novell
Content Exchange products. The combined offering results in faster
acceleration of content to the end user, utilizing Novell's ability to
accelerate Web servers.

SBC and BellSouth launched their joint wireless venture Cingular Wireless.
The company is the second largest wireless carrier in the US with over 19
million customers in 42 of the top 50 markets; it also expects to have over
$12 billion in annual revenue. The launch and release of the company's name
follows the recent FCC approval granted on September 29. Both companies
will continue to offer their services under existing brand names until the
beginning of next year, when all 11 brands are consolidated and offered
under the Cingular Wireless brand. The company launched a national
advertising campaign, releasing ads in the Wall Street Journal, the New
York Times, USA Today, and Investor's Business Daily. Until the company's
services are offered under Cingular Wireless, SBC and BellSouth will offer
national and regional rate plans as DigitalEdge USA and wireless Internet
service under My Wireless Window.

SBC Communications awarded Lucent Technologies a $1-billion contract to
supply equipment for its national network expansion. Lucent supplies data,
voice, and access infrastructure technology for the expansion project.

Convergence
Wireless Knowledge and QUALCOMM launched the Workstyle Server for Lotus
Domino. This combined offering allows mobile workers to access Lotus
Domino-based enterprise information using a variety of mobile
Internet-ready devices. Wireless Knowledge will supply the wireless
devices, including AT&T Wireless, Nextel, and Sprint PCS, and will be
jointly marketed nationwide to enterprise customers.

Internet
AT&T is reviewing a plan that would charge Internet merchants for each
customer accessing an Internet retail site using AT&T's network. The
company also proposed that it be awarded an additional commission if the
customer buys something. AT&T would not confirm the plan, however, the new
fee structuring is expected to take effect next year. Such a shift would
mark a departure from traditional traffic volume-based fees. With its long
distance revenues on a steady decline, AT&T is now looking for a new way to
generate profits.

Web Authoring, Web Development Software
BEA Systems unveiled the BEA WebLogic Commerce Server 3.1 and the BEA
WebLogic Personalization Server 3.1. The updated releases include a choice
of content management software: Documentum 4i Web Content Management
Edition and Interwoven Content Express for BEA. BEA's servers are
integrated with Broadbase Software's e-marketing system.

BEA Systems launched the BEA 360D Customer Lifecycle, a suite of
personalization, commerce, and business scenario features for e-businesses.
Integral to BEA's 360Degree Customer Lifecycle management strategy are the
freshly-launched BEA WebLogic Commerce Server 3.1 and BEA WebLogic
Personalization Server 3.1

BEA Systems launched the BEA WebLogic Server 6.0 beta release. BEA WebLogic
Server 6.0 features application lifecycle enhancement, which includes
development to installation, configuration, and systems management. These
features will increase the server's ease-of-use and will help decrease
deployment costs.

BEA Systems reported that Fujimic implemented the BEA WebLogic Server as
the platform to power Fuji Televi, its wireless subscription service for
on-demand content. Fuji Televi is based on i-mode technology from NTT
DoCoMo, the mobile communications subsidiary of Nippon Telegraph and
Telephone.

Messaging and Groupware
IT Factory reported that it is developing a collaborative application
architecture for the Microsoft Exchange 2000 platform, thus extending its
IT partnering reach beyond its exclusive work with the Lotus Domino/Notes
platform. The launching of Exchange 2000 will take place at Microsoft's
Exchange and Collaboration Solutions conference in Dallas.

Trend Micro unveiled ScanMail version 5.0 for Microsoft Exchange 2000. This
combined offering features single instance scanning of both inbound and
outbound e-mail documents and tight integration with Microsoft Windows 2000
Cluster API. Scanmail 5.0 for Exchange 2000 protects corporate networks
from accumulating e-mail-bound viruses at the Exchange server.

McAfee introduced McAfee GroupShield 4.5 for Microsoft Exchange 2000. The
McAfee GroupShield for Exchange 2000 is fully integrated with the virus
scanning API included in the Microsoft Exchange 2000 Server. GroupShield
enhances performance by fast scanning and by maximizing protection from
viruses for worldwide Exchange users.

Network Switching
Corvis delivered what they believe to be the first all-optical switch to
Broadwing Communications for commercial use. The new switch offers 2.4
terabit capacity and enables service providers to switch traffic without
optical-to-electric and electric-to-optical conversions.

Paion released a chip technology to be used with 1/10G Ethernet Switches.
The company also introduced its gigabitPLUS switch architecture, including
a full range of switch fabric chips with 64G bps throughput and 32- port
controller chips. Paion developed these chips for use by OEMs in building
Ethernet switches. They work together in a variety of configurations
ranging from simple Fast-Ethernet-to-Gigabit-Ethernet uplinking all the way
to complex multi-stage non-blocking.

Carriers and Carrier Services
France Telecom introduced two residential phone packages that include the
cost of access, calls, and services. The packages allow customers to use
their home tele phones 24 hours a day for a single flat price, without
additional subscription charges.

Consumers in Miami-Dade County Florida now have a choice of local telephone
carriers. SBC Telecom, a unit of SBC Communications, competes with
BellSouth in the region for local customers and provides consumers with the
option of buying local and long distance services from a single carrier.
According to the company, average service prices are about 15 percent lower
than what BellSouth charges. Package prices start at $25. SBC Telecom will
also offer dial-up Internet and DSL services.

Wireless Communications
Lowe's retail stores are offering Arch Wireless' Webster 100, an
interactive, two-way wireless service. The national chain is also offering
the company's one-way numeric and alphanumeric messaging. With Arch
Webster, users are able to communicate through e-mail, chat, and
information services using a Motorola Talkabout T900 messaging device.

BellSouth launched cellular phone service in its 11th Latin American
market, Guatemala. The BellSouth-branded service is currently offered in
Guatemala City and will cover the entire country within a year. Launching
service in Guatemala increased the company's total Latin American coverage
to include a population of 247 million and gives BellSouth access to
Central America's largest country and economy.

During the third quarter, Nextel Communications added over 540,000 domestic
subscribers, including more than 200,000 data subscribers to its Nextel
National Network. The company could possibly merge with AT&T Wireless
because talks continue on the subject.

At the UMTS 2000 Congress in Barcelona, Spain, Nokia introduced its new
suite of 3G network tools and Mobile Internet Application Platforms. Using
the Nokia Positioning and Platform Tool, operators and service providers
can bring their services to market quickly and can customize those tools to
meet specific needs. The company also introduced the UltraSite WCDMA Optima
family of WCDMA-based stations, allowing operators to increase capacity by
75 percent. Other tools unveiled at the Congress include the IP-RAN Common
Radio Resource Management for multi-standards 3G networks, which places
radio resource controls onto a single server and the SGSN for 3G networks,
which combines IP routing with mobile networks.

After meeting with Chinese Premier Zhu Rongji and Minister of Information
Industry Wu Jichuan, QUALCOMM's CEO Irwin Jacobs learned that China plans
to build a wireless network using the company's technology. Jacobs also met
with executives from China United Telecommunications, who promised to build
a wireless network with QUALCOMM's equipment for five to 10 million
subscribers. This news comes after earlier reports that QUALCOMM's CDMA
technology would not be used for Chinese networks.

Sprint PCS teamed with MSN to offer the portal's content over
Internet-ready Sprint PCS phones. Using the Wireless Web, MSN customers can
access all needed information and services using any of Sprint's 15 phones
with Internet capabilities. MSN Mobile 2.0 includes customizable
information from MSNBC.com, MSN MoneyCentral, and Expedia, which provides
online travel services. About 70 million users signed up to MSN Hotmail can
access their in-boxes and respond to messages. In addition, MSN's wireless
Internet content services include news, weather, sports, address books,
instant messaging, and driving directions.

Should you have any questions, concerns or problems with your flash, please
contact us at: mailto:fl...@faulkner.com

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