Faulkner Com Flash 11/01/00 - (Part 1 of 2) (fwd)

[Missy Harvey]

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Date: Tuesday, November 07, 2000, 2:16 PM -0500
From: Faulkner Information Services <mails...@faulknerinfo.com>
To: ???
Subject: Faulkner Com Flash 11/01/00 - (Part 1 of 2)

Com-Flash

Copyright 2000, Faulkner Information Services. All Rights Reserved.

Publication Date: November 1, 2000

Preview
Com-Flash is a biweekly news summary, for Faulkner Subscribers, covering
computer systems and software, and vendors. This flash covers the period
October 18, 2000 to November 1, 2000.

Top of the News
After posting a 22 percent drop in its fourth-quarter profits and
drastically lowering its sales and profit expectations for the first
quarter 2001, Lucent fired Chairman and CEO Richard McGinn. The board voted
unanimously to oust McGinn, whose tenure at Lucent was plagued by several
quarters of disappearing profits and four profit warnings in 2000 alone.
The decision to fire McGinn came after profits fell from $768 million in
1999 to $600 million this year, and profit forecasts for 2001 looked
equally disappointing. McGinn will be replaced by interim CEO Henry
Schacht, its original CEO and spin-off Avaya's current top exec, while
searching for a permanent replacement.

Mergers/Acquisitions
In a statement saying it would split into four separately traded companies,
AT&T made no mention of plans for broadening its alliance with British
Telecom, except that it will continue to hold a 50 percent stake in
Concert, its international communications venture with BT.

BCE expects its acquisition of Teleglobe to close on November 1, and for
the international telecom network operator to release quarterly results on
November 10.

MegaPath Networks purchased Phoenix Networks in a deal which will make
MegaPath one of the largest privately held DSL providers. The companies
plan to merge operations and administrative functions over the next two
months.

PageNet's shareholders, along with its bondholders and banks, voted to
accept the Plan of Reorganization under Chapter 11, which includes the
merger agreement with Arch Wireless. The vote of approval from stockholders
was one of the last barriers to the completion of the two companies'
merger.

The proposed merger of French conglomerate Vivendi and Seagram has been
cleared by Canada's ministries. The deal already received antitrust
clearance from the European Commission, the Canadian Competition and US
regulators.

Alliances/Joint Ventures
BMC Software formed an alliance with Siebel Systems to create PATROL for
Siebel eBusiness Applications. PATROL for Siebel eBusiness Applications
will extend B2B enterprise management to the front office and deliver
availability and optimization of Siebel eBusiness Applications. BMC
Software will help users monitor and manage their e-businesses from the
back office to the front office and across the Internet.

In other news, Brocade Communications Systems and BMC Software entered a
partnership to deliver enhanced storage resource management services for
Brocade-based SANs. BMC Software will develop a PATROL Knowledge Module
(KM) for Brocade SANs, to become an interface to BMC Software storage
resource and network management products for management of Brocade-based
SANs.

Broadview Networks and Covad signed an agreement which will extend
Broadview's DSL service coverage. Broadview will use Covad's network
infrastructure and services to offer DSL in areas where Broadview has not
deployed DSL equipment.

Broadwing Communications is testing a service provided by Intertainer Inc
that delivers movies and other television programming over high speed phone
lines. Intertainer will supply films, music videos, television shows and
other content to a set-top box which accepts transmissions over DSL
connections. Broadwing will run technical tests beginning in November, and
launch a broader test early in 2001.

Charter Communications and KGI Wireless signed a Tower Listing Agreement to
launch a national tower licensing campaign. KGI agreed to audit Charter's
tower inventory, market towers to the wireless industry, and aid Charter in
negotiating Master Licensing Agreements with wireless carriers.

Comcast and Disney agreed to a one-week extension in talks over a local ABC
affiliate in Philadelphia, PA. The companies are negotiating terms of
compensation for carrying WPVI, ABC's most successful station, on its
networks. If the negotiations are not repaired, Comcast could become the
second cable company this year to stop transmission of a local ABC
affiliate station. Earlier this year, Time Warner Cable's transmission of
Disney channels was suspended as their talks dissolved.

Computer Associates and Sybari Software formed an alliance to protect
messaging infrastructures from malicious virus attacks. CA will integrate
Sybari's Antigen groupware product with its own anti-virus technology
combining InoculateIT with VET virus scanning engines.

In addition, Computer Associates and Brooktrout Software formed a strategic
alliance to deliver voice-enabled Customer Relationship Management (CRM)
solutions to large enterprise customers. The alliance will combine CA's CRM
platform with Brooktrout's voice application development tools to create
highly customized CRM solutions including computer telephony integration,
interactive voice response self-help, and remote access to CRM data.

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.

VERITAS Software and Hewlett-Packard reported that HP will support the
VERITAS VERTEX Initiative for enterprise data protection. The VERITAS
VERTEX Initiative is a series of VERITAS NetBackup services based on
snapshot backup and recovery methods. HP will start by supporting the
integration of its snapshot backup technology, HP Surestore E Business Copy
XP for use with the HP Surestore E Disk Array XP256 and HP Surestore E Disk
Array XP512, which will be combined with VERITAS NetBackup data protection
software.

Level 3 Communications expanded its agreement withCorning to reduce the
cost of its communications network service. The companies will develop and
deploy cost-effective optical fiber through, and Corning will become the
worldwide provider of optical fiber and cable to Level 3 over the next four
years. In addition, Corning will supply more than 10 million kilometers of
advanced fiber for future installation in Level 3's inner-city and
metropolitan networks.

Motorola and ALLTEL signed a contract for third-generation CDMA hardware
and software. ALLTEL is the first US company to purchase 3G products and
services from Motorola, and it will install the equipment in New Orleans
and Baton Rouge, LA. Under the contract, Motorola is shipping its SC 4812
base stations to both cities, and ALLTEL will use the equipment to provide
high-speed packet data services at 144K bps.

Nortel Networks and Hewlett-Packard reported that they will integrate
Nortel's high-bandwidth optical networking technology with HP's Internet
infrastructure for both companies' high-performance Optical Internet data
center. Both companies will create an interoperable framework to reduce
Internet data center bottlenecks, allowing service providers to offer
higher performance content and e-business services.

RSA Security teamed with Cisco Systems to deliver security services for
e-business applications and communications. In addition, RSA Security
extended its charter membership in the Cisco Security and VPN Associate
program by including RSA Keon public key infrastructure (PKI) software,
further illustrating RSA's commitment to Cisco's SAFE security blueprint.

SkyStream Networks and Microsoft are collaborating to provide Internet
services over digital set-top boxes. The companies will integrate
SkyStream's zBand content distribution software with the Microsoft TV
platform, allowing broadcasts of high-quality streaming video and Internet
content for television set-top boxes.

StorageTek reported that it will support the VERITAS VERTEX Initiative by
including its tape drives, libraries, and SAN services with VERITAS
NetBackup software services. This initiative is designed to help businesses
improve backup and recovery performance and increase data availability.

Convergence
GoAmerica and EMC reported the opening of the GoAmerica Wireless Internet
Connectivity Center (WICC). The center was built to provide high
performance, reliable, and secure wireless access to mission critical data.
The center allows for rapid data transmission and offers vast data
capacity. Specifically, GoAmerica will deliver secure wireless access to
critical data and e-mail by utilizing EMC's Celerra Enterprise Storage
System.

Micromuse and Sun Microsystems reported that Aether Systems selected the
NETCOOL suite running on the Sun platform for real-time fault management
and service assurance of its wireless data infrastructure. Using
Micromuse's Netcool suite on Sun will ensure that Aether's Network
Operations Center is running at peak efficiency.

Web Authoring, Web Development Software
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.

BEA Systems also launched the BEA WebLogic Java Adapter for Mainframe 4.1.
The BEA WebLogic Java Adapter for Mainframe is an EAI product that allows
businesses built on the BEA WebLogic Server to integrate existing mainframe
application functionality and data into Java and Web-based computing
environments.

In addition, BEA Systems unveiled the BEA WebLogic Process Integrator 1.1.
This offering, downloadable from BEA's Web site, is a powerful business
process engine that enables companies and third-party developers to
implement e-business processes, automate enterprise workflows, and assemble
pre-built Java components into complete J2EE applications.

ePresence reported that it designed and implemented a new Web presence for
BellSouth Wireless Data. BellSouth Wireless Data selected ePresence to
design, develop, and implement its new Web presence to generate sales and
offer customers one-stop convenience for accessing news and product
information.

Messaging and Groupware
Microsoft launched the Exchange consumer services program, designed to
extend the strength of the Microsoft Exchange 2000 Server for enterprise
ASPs into the carrier, ISP, and portal marketplaces. This platform will
consist of features like e-mail functionality with Exchange consumer
services to productivity and collaboration.

Network Switching
ADC and MEMSCAP, a provider of MEMS (Micro-Electro-Mechanical Systems)
components, formed a production agreement to develop a family MEMS-based
optical communications components for various applications, including
optical switching. The alliance will equip ADC's optical communication
customers with MEMS-based devices, enabling them with higher bandwidth and
faster transmission speeds for data communications applications.

Carriers and Carrier Services
Level 3 Communications offered its Internet and communications services in
four new markets in Germany. Level 3 added Berlin, Munich, Hamburg, and
Dusseldorf to its existing presence, bringing the number of markets it
operates in Germany to five. Level 3 plans to connect its pan-European
markets to 41 North American markets and two Asian markets currently
served.

Verizon Advanced Data and EagleNet received licenses to provide basic
telephone service in Michigan. Verizon was granted a license to provide
basic local service for all telephone exchanges currently served by Verizon
North and Contel. EagleNet was granted a license to provide basic phone
service for all telephone exchanges and zones currently served by
Ameritech, Verizon North, and Contel.

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.

Wireless Communications
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.

Arch Wireless debuted its Arch Message Center for home and office users.
With either a Web-connected desktop or wireless devices from Arch,
customers are able to access both office and Internet e-mail accounts and
other office tools, such as address books and online files. Message Center
also allows users to combine several e-mail accounts into one and to create
Web-based addresses. Arch Wireless' new service will be offered to
customers using Arch numeric and text pagers and two-way messaging devices.

Barbados plans to shed Cable &

Wireless' legal monopoly over its telecom market in two years, becoming the
latest Caribbean island to loosen the British firm's hold on the region.
The government will begin granting cellular licenses to other companies in
December. Starting in April, it will open the local telephone market to
competition and will liberalize the long-distance market in 2002. C&W has a
contract for exclusive service in Barbados through 2001.

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 roll out of the network will
begin.

Ericsson decided to move some of its cell phone manufacturing business to
Brazil and other parts of Latin America, Eastern Europe, and Asia from the
US and Sweden. The company hopes to increase the profits from its
struggling phone making business by moving its cell phone plants to
lower-cost countries.

Nokia launched its TETRA 800MHz system after introducing it in China. The
system expands the company's TETRA solutions and allows the company to
expand its services into China and in Latin America. With the TETRA system,
Nokia is able to offer digital, mobile communications to public safety
organizations, network operators, and transportation and utility companies.

In anticipation of next-generation wireless networks and services, Nokia
introduced the model 3390 wireless phone designed to meet the demands of
the mobile Internet. The company is targeting young adults with the release
of this entry-level phone, although it includes more features than are
typically included in an entry-level product. The phone is based on GSM
1900 and includes capabilities for two-way communications methods such as
mobile text and picture messaging.

In other news, Nokia agreed to supply mobile operator and recent France
Telecom acquisition Orange with third generation network solutions. The
companies signed a three-year agreement in which Nokia will supply 3G
packet cores elements, 3G Mobile Switching Centers, and all the elements
necessary for a complete 3G radio access network supporting WCDM, EDGE, and
GSM. The deal will give Orange advanced mobile services, while establishing
Nokia as more than a simple cell phone manufacturer.

Qwest Communications announced that it might stay out of the US wireless
license auctions. The company believes that it holds sufficient airwaves to
handle customer growth for three to four years to come. Qwest has seen the
prices paid in auction in the UK and Germany and expects for prices in the
US auction to be as high or even higher. With its current amount of
spectrum, the company expects to serve between 4 to 5 million customers.
The only licenses the company would consider buying are in its home
territories.

Spain's Telefonica awarded contracts for third-generation networks to
Motorola. Under the contracts, Motorola will provide UMTS and GPRS
technology for mobile Internet services. Telefonica plans to offer the
services in August 2001.

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.

Broadband/Cable Networking
Excite@Home offered a retail software kit which will allow 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 become available to Comcast subscribers at local Circuit City
and CompUSA stores. Other cable partners will begin offering the service at
a later time.

More than 1.6 million cable subscribers will be able to access Pay-Per-View
listings and ordering over the Internet using customized program listings
by Gist Communications and Telvue Corporation. AT&T, Cablevision, Comcast,
and Time Warner will bring the service to subscribers in Boston, New
Jersey, Maryland, Virginia, and Milwaukee. Subscribers in the available
markets will be able to log in and receive system-specific, searchable and
customizable listings as well as online PPV ordering.

Inmarsat entered into contracts worth $220 million with Hughes Network
Systems and Thuraya for the launch of a broadband 144K bps mobile service
in 2002. The service is using the Thuraya satellite system and will provide
Inmarsat's customers with high-speed access to the Internet and intranets,
e-mail, and remote LANs in Europe, North Africa, the Middle East and India.
Inmarsat's services will support such industries as construction, mining,
media, manufacturing, and finance.

KDDI is considering tying 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.

Lucent Technologies and CopperCom partnered to deliver an 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.

Japan's MPT plans to allow telecom firms to begin cable and satellite
broadcasting services. As a result, NTT could use its fiber-optics network
to air programs without needing a license, as long as it notifies the
ministry. Under current law, NTT is banned from broadcasting.

Challenging the dominance of NTT, Cable &Wireless will spend $1.4 billion
to build a fiber-optic network throughout Japan. The network represents the
largest single investment by a British company in the Japanese telecoms
industry and will be set up over the next five years.

Seven telecom companies, including a unit of NTT, Korea Telecom, and China
Unicom agreed to construct an Asia-America fiber-optic cable that will link
five countries and regions in Asia and America with cable. Scheduled to
begin operation in 2002, the network could be extended to other countries.

In related news, a consortium of Asia's biggest telecom names, including
Telstra and Singapore Telecom, are building the Asia Pacific Cable Network
2, which links eight Asian countries and is set to be completed in
September 2001.

To tap into the Dutch broadband market next year Telecom Italia set up a
company, Bbned, in the Netherlands. Initially, Telecom Italia will rent
space on the existing telephone network of former Dutch telephone monopoly
KPN, but intends to have its own network by the end of 2001.

Telia closed a long-term agreement worth $89 million for wavelength
capacity on over 11,000 route miles on its US backbone network. The deal
was signed with an applications infrastructure provider (AIP) that is
establishing a new standard for deploying broadband intelligent IP network
for integrated voice and data services. The deal moves Telia from an
international gateway provider to a full-fledged wholesale backbone network
provider.

CTI/Call Center News
Artisoft launched the TeleVantage CTM Suite, a set of turnkey computer
telephony products for SMBs. Developed on Dialogic's CT Media converged
communications server software, the TeleVantage CTM Suite will be bundled
with the Intel Communications Platform, which includes soft switch, auto
attendant, and voicemail applications that feature traditional phone system
and VoIP capabilities.

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.

PeopleSoft launched its newest suite of Customer Relationship Management
solutions, PeopleSoft 8. PeopleSoft 8 will include a pure Internet
architecture with a Customer Portal, Customer Interaction Center, mobile
applications, integrated CRM Analytics, and CRM integration to third-party
vendors built on PeopleSoft's Open Integration Framework. PeopleSoft 8,
which is designed to deliver a company-wide eBusiness solution, will be
available in the fourth quarter 2000.

Voice Processing News
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.

Satellite Services
DirecPC, Hughes Electronics' satellite broadband service, launched AOL
PLUS, a service combining AOL service and high speed Internet access via
satellite. AOL PLUS will allow AOL members to connect over DirecPC's
broadband satellite, providing rich content and features from
broadband-enhanced content providers.

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.

Motorola and the United Arab Emirates' ETISALAT completed mobile data
transfers throughout the Middle East. ETISALAT has over one million
subscribers and with mobile data it will be able to offer new,
Internet-based services to its customers. The company is using the GPRS
system provided by Motorola and Cisco Systems. The system allows for such
applications as e-mail access, stock information, tracking, instant
messaging, and e-commerce.

The Thuraya-1 mobile communications satellite, owned by Thuraya Satellite
Telecommunications, was launched by Sea Launch on a spacecraft built by
Boeing Satellite Systems, formerly Hughes Spaces and Communications.
Designed to last for 12 years, the satellite will provide telephone,
voicemail, Interactive Voice Response, data, fax, and GPS to over 1.8
billion customers.

Internetworking
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 128 kbps to 8.0 Mbps.

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