Faulkner Com Flash 11/29/00 - (Part 1 of 1) (fwd)

[Melissa Harvey]

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Date: Tuesday, December 05, 2000, 3:38 PM -0500
From: Faulkner Information Services <mails...@faulknerinfo.com>
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Subject: Faulkner Com Flash 11/29/00 - (Part 1 of 1)

Com-Flash

Copyright 2000, Faulkner Information Services. All Rights Reserved.

Publication Date: November 29, 2000

Preview
Com-Flash is a biweekly news summary for Faulkner Subscribers covering
computer systems and software, and vendors. This flash covers the period
November 15 to November 29, 2000.

Top of the News
NTT DoCoMo is nearing an agreement to buy a $9 billion stake in AT&T
Wireless. The transaction would give the Japanese company a 20-percent
stake in AT&T Wireless and signals its entrance into the US market. The
investment from DoCoMo helps AT&T Wireless strengthen its faltering
financial state as it is set to become an independent company as part of
AT&T's restructuring plan. The company could use the money to bid in the
upcoming wireless spectrum auctions and pay off some of its $62 billion in
debt. NTT DoCoMo's agreement with AT&T Wireless is part of the company's
strategy to create a global presence for itself. It is also in talks with
Cingular Wireless and has concluded a $100-million deal with AOL.

Mergers/Acquisitions
British Telecom plans to purchase the remaining 49.1-percent of INet BV
that it does not already own for $144 million.

3Com reported an agreement to acquire the Gigabit Ethernet NIC business of
Alteon WebSystems, a wholly owned subsidiary of Nortel Networks for US$110
million in cash. The deal will extend 3Com's business into the fast-growing
Gigabit Ethernet area. The transaction is structured as an asset sale and
is scheduled to close later in December 2000. No personnel from Altheon or
Nortel will transfer as a result of the deal.

Broadcom agreed to acquire chip maker SiByte for stock worth up to $2.04
billion, in the company's 11th purchase this year. Sibyte's technology puts
network traffic controls on a chip instead of software, allowing for
higher-speed transmission of growing traffic volume. Broadcom expects
Sibyte's technology to complement its line-up of chips for high-speed
broadband Internet access.

Cisco Systems agreed to acquire the Internet messaging operations of Active
Voice, a provider of Internet-based unified messaging services combining
e-mail, voice and fax messages into a single, common mailbox, for $266
million in stock. Cisco expects a one-time charge for research and
development expenses not to exceed 2 cents per share. Cisco reported it
will also pay $30 million in stock for Active Voice's voicemail business
after the close of the primary transaction, expected in the second quarter
of Cisco's fiscal year 2001. Cisco expects the acquisition will advance its
communications capabilities by unifying text and voice messaging and will
drive the adoption of Internet-based telephony. The company also completed
the acquisition of privately held Vovida Networks, a communications
software provider and supplier of networking protocols, which began with a
definitive agreement on Sept. 28, 2000. This acquisition is being accounted
for using purchase accounting.

France Telecom plans to acquire a majority stake in Equant and combine it
with its own data subsidiary, Global One. The merged company would have
around 3700 customers andrevenues of $2.5 billion to $3 billion. The merged
company will continue to trade on the NYSE and the Paris Bourse.

Lockheed Martin completed the sale of its Aerospace Electronics Systems
business for $1.67 billion. BAE Systems North America purchased the
business, which designs and develops global defense, civil, and commercial
systems. BAE Systems also bought the Control Systems unit for $510 million
earlier this year.

Verizon Wireless signed an agreement to acquire Price Communications
Wireless, which operates in 16 markets in Georgia, Alabama, South Carolina,
and Florida. 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 hopes to expand its footprint in
the Southeast through this acquisition. The company will also acquire a
call center in Atlanta, 41 retail stores, and Price's network
infrastructure. 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.

Alliances/Joint Ventures
3Com and Hitachi Telecom formed a relationship to enable hotels to offer
their guests advanced voice and broadband services. 3Com plans to integrate
its Visitor and Community Network (VCN) System with Hitachi's HCX5000
Private Branch Exchange product into one compact device. Services to result
from the relationship include web access, video services, and LANs via the
VCN system.

AT&T Broadband and ReplayTV launched a joint marketing trial of digital
video recorders (DVRs) in Boston and Denver. The ReplayTV DVRs will enable
selected AT&T Broadband customers to find, digitally record, and store TV
programs for playback, without any need for videotapes or VCR programming.

Fiber optic equipment maker Corning reported an alliance with Cisco to make
optical equipment for the Internet. Corning will package its fiber optic
equipment with Cisco's gear for networks based on Internet Protocol.

Deutsche Lufthansa AG said it was planning an e-business alliance with
Cisco Systems. Cisco will structure the network for Lufthansa's planned
e-business activities and will advise the German airline. No further
details of the alliance were given.

EMC reported that it is teaming with Intel Online Services to deliver EMC
storage services to e-Businesses using Intel Online Services' managed
hosting environment. In addition, Intel Online Services joined the EMC
Proven Program at the highest level and is participating in EMC's
xSPerience Provider Program. Under the agreement, the combined services
will be deployed in Intel Online's data centers in the U.S. and Europe,
enabling e-business to expand their storage rapidly.

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..

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.

@Network and Level 3 signed an agreement to send data from Asia to North
America and Europe using Level 3's network. @Network will make available
its Asian-based co-location, globalization, and managed services as part of
the Level 3 Enabled Global Partner Program. The agreement enables @Network
to provide its services to Level 3 customers globally, while using Level
3's undersea and metropolitan Asian fiber optic network to provide higher
bandwidth availability to its customers.

NoHold, a provider of interactive knowledge portals, started a pilot
project with Cisco Systems to develop a next-generation technical support
WEB tool based on noHold's DynamicDialog technology. Cisco customers will
be able to gather information and to find solutions from several sources
through a single point on Cisco's Web site. The interface allows users to
ask questions or to describe problems and then converses with the user
until it has enough information to present an answer.

SBC, Bell Canada, and Mexico's America Movil closed their joint venture
agreement and their formation of Telecom Americas Ltd, a facilities-based
company which will serve as the partners' principle vehicle for expansion
in Latin America.

Seagate Technology shareholders and Veritas Software approved a deal to
privatize Seagate for cash and shares of Veritas, both companies said
Tuesday. The transaction is valued at $20 billion, and Veritas will
repurchase 33 percent of Seagate-owned Veritas stock after purchasing
Seagate.

In a move that might hasten its proposed merger with AOL, cable giant Time
Warner agreed to open its cable lines to Internet service provider
EarthLink. Under the terms of the agreement, Time Warner will offer
EarthLink's high speed Internet access, content, applications, and features
to Time Warner cable subscribers. The agreement came the review period for
the proposed merger was extended for two weeks. The most contentious issue
in that review process has been the availability of Time Warner's cable
systems to AOL competitors. With the FTC and FCC's approval, the companies
expect the merger to close by the end of 2000, or early 2001.

Marconi reported its entry into the ASP arena via its ASP-empowering
program targeting the government, healthcare, and service provider markets.
Marconi recently formed a partnership with Centurion Solutions, a
public-safety services company, to provide ASP support.

Messaging and Groupware
Hewlett-Packard reported that it is developing the Service
Provider-in-a-Box (SP-in-a-Box) 2000 product for Microsoft Exchange 2000
and Windows 2000 servers. This version of the SP-in-a-Box 2000 will offer
service providers value-added services such as instant and unified
messaging and mobile access. This offering will enable users to outsource
hardware, network, and application management to a service providers.

Wireless Communications
Gateway introduced the first in a series of wireless devices for business,
education, and government clients. Based on the Wi-Fi 802.11b wireless
industry standard, the products include a PC Card for portable PCs, a PCI
Adapter for desktops, and two access points. The wireless devices will be
sold individually and in bundles.

Nokia is creating a global initiative for the development of a technical
architecture for the mobile Internet. The company is calling it the Nokia
Mobile Internet Technical Architecture, which is designed to provide
interoperability between interaction modes and network environments. Nokia
is inviting other companies, including developers, service providers, and
operators, to take part in the initiative. In related news, Nokia created
the Advanced Application Programming Interface for its Nokia mPlatform
Solution, which allows operators, developers, and service providers to
develop mobile services. The company also introduced its 9210 Communicator,
a Web-enabled mobile device with a color screen that allows for mobile
calls, Web access, and e-mail. The company will make the device available
on the GSM market in Europe, Africa, and Asia beginning next year. The 9210
includes a color display and a keyboard and combines phone functions with
fax, e-mail, calendar, imaging and video clips, and WAP and Internet
services.

NTT DoCoMo will take its mobile Internet services to the US market by
buying 20-percent of AT&T Wireless. The alliance could be worth up to $9.0
billion.

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 then choose a service plan at a discount. The company is also adding a
voice portal to its wireless services through an agreement with BeVocal.
Using BeVocal's Total Voice Portal Solution, Sprint PCS customers will gain
access to Sprint PCS' Voice Command features to access driving direction,
business locations, and Internet content through voice-activation.

To compete with i-mode in Japan, Vivendi and Vodafone Group are offering
Internet content through cellular phones operating 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.

Broadband/Cable Networking
3Com's Carrier Networks Business released a package for provisioning voice
and data services over DSL. The product combines the CommWorks 5020
Intelligent Activation System and the Total Control 500 DSL access
concentrators product family. It enables service providers to activate
service to new subscribers quickly from a central location.

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.
Approximately, 3.6 million broadband cable subscribers are expected by
year's end.

Global Crossing announced a seamless fiber optic link from Brazil to North
America, Europe, and Asia. It is the first company to link these areas over
one seamless fiber optic network.

Lucent won a three-year contract worth $25.45 million to build the optical
backbone of Belgacom's pan-European network enabling transmission of
roughly 75 CD-ROMS a second.

Teleglobe, now owned by BCE, said it will buy $400 million of optical
networking equipment from Nortel and will use the equipment to transport
Internet and voice traffic in North America, Europe, and Asia.

Telia's "Scandinavian Ring," which links up Copenhagen, Oslo, Stockholm,
Göteborg, and Malmo, is now ready to operate. The ring makes Telia the
first carrier to connect the Scandinavian cities with broadband.

Millions of Internet users suffered major traffic jams after an undersea
cable that connects Australia, Asia, the Middle East, and Europe was cut.
Telstra, which relies on the cable for about 50-percent of its Internet
traffic, and Singapore Telecom managed to redirect most of their traffic to
another undersea cable. While the cause of damage was unclear,
possibilities include a ship or ship's anchor, since the break occurred in
"relatively shallow water."

Time Warner Telecom completed its Winston-Salem, NC network, an extension
of its already 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.

WorldCom released the Tecnoguia, an online searchable Spanish and English
telecommunications glossary of high-tech and Internet-related terms. The
glossary was co-developed by the Tomas Rivera Policy Institute, a think
tank on Latino issues.

InnoMedia, a supplier of Internet telephony appliances, business products,
and services, reported that its IP telephony offerings now interoperate
with Cisco Systems' products. The companies now provide end-to-end IP
telephony services for carriers.

Satellite Services
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 streaming video and online music.

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, provides video, data broadcasting, and broadband Internet
services to customers in the Americas, the Caribbean, Europe, and Africa.
The satellite also provides PanAmSat's SPOTbytes DVB service to Latin
America.

Wide Area Networking
SBC Communications and Cisco Systems released the first in a planned series
of bundled service and equipment packages, a dedicated Internet access
service, and a high-bandwidth enterprise networking package. The dedicated
access bundles SBC's frame relay/ATM access with Cisco's routers. The
networking package offers secure access between offices, clients, and
partners.

LAN/Intranet
Marconi introduced its state-of-the-art Solutions Test Center. The center
is a proving ground designed to help telecommunications service providers
and commercial customers design and validate their networks prior to
implementation via a six-step process that enables Marconi to analyze
possible scenarios. Customers are able to bring their own equipment to the
center.

Motorola's Broadband Communications Sector introduced two Customer Premise
Equipment products for integrated home-networking applications. The
third-generation CentriQ 1220 communications gateway and SURFboard SB3500
cable modem enable integrated voice, video, and data services. The CentriQ
1220 also offers home-networking and network powering.

Network/Systems Management
Computer Associates launched its Certified Managed Services Provider (MSP)
program in Europe. The program is designed to help channel partners expand
their presence in the remote network and systems management markets. The
company also unveiled Unicenter TNG version 2.4, an e-business management
service for enterprises and service providers. This version features MSP
management capabilities, Linux compatibility, an extended database for
online application services, Windows 2000 performance monitoring, and
enhanced SAN support functions. Computer Associates also unveiled the
Unicenter TNG PeopleSoft Option, a fully integrated management service for
PeopleSoft enterprise applications. This new option will monitor PeopleSoft
applications via cross-application scheduling, event monitoring, and
automated actions. The overall result will be simplified IT administration
through centralized control of application-integrated PeopleSoft workloads.

Security
3Com integrated the IP service intelligence of the Total Control 500
192-port DSL concentrator with the VPN tunnel-switching capabilities of the
Total Control 1000 multiservice access platform to create an end-to-end
offering enabling DSL providers to deliver secure VPNs over DSL. With these
products, service providers can offer enterprise customers secure,
encrypted Internet connectivity for intranet, extranet, and remote access,
as well as secure e-commerce applications with centralized, integrated
security management.

Servers and Mainframes
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.

Storage
EMC and CNT reported an implementation of true data mirroring between the
United States and Europe. The companies used container carrier P&O Nedlloyd
Container Line Limited to move data between U.S.- and U.K.-based data
centers over the firm's private IP network using EMC Symmetrix Remote Data
Facility (SRDF) software and IP networking technology from CNT.

Regulatory News
The FCC did not clear major wireless carriers such as AT&T Wireless,
Cingular Wireless, Nextel, Sprint PCS, and VoiceStream Wireless to bid in
the December 12 airwave auction. The FCC approved 44 wireless companies
while 66 others need to file new applications since the Commission stated
that the original applications were incomplete. Interest in this auction
is high because of the lack available spectrum.

In an effort to clear the way for competition for broadband Internet access
in Britain, Oftel laid out rules for allocating space in popular local
telephone exchanges. The "local loop unbundling" process has encountered
difficulties as space in the British Telecom exchanges for competitor's DSL
equipment is limited.

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. The RegTP told DT it would have to offer the wholesale flat
rate for use of its telephone network for Web access from February 1, 2000.

Dutch telco watchdog, OPTA, ruled that KPN must offer Internet access at a
flat rate to MCI Worldcom's ISDN clients until July 2001 and urged the
former telco monopoly to improve data transmission capacity on its network.

NextWave will not get another say in court as the US Supreme Court refused
to hear the company's latest appeal, which was filed in an attempt to stop
the FCC from auctioning licenses NextWave originally purchased in 1996. The
company, which is currently reorganizing under bankruptcy, had bid $4.8
billion for 90 licenses but defaulted on its payments, forcing the FCC to
repossess the licenses. NextWave has been fighting the FCC's decision; but
with the refusal from the Supreme Court, the company's efforts have proved
futile. The decision allows the FCC to auction the licenses as part of a
larger airwave auction scheduled to begin on December 12.

The FCC accepted Black Crow Wireless as a bidder for C and F block
broadband PCS spectrum to be auctioned off beginning December 12. The
company has the opportunity to bid for 422 licenses that cover over 195
markets. In other news, USCC Wireless Investment, a subsidiary of United
States Cellular, is now a limited partner in Black Crow Wireless.

WorldCom's acquisition of Intermedia Communications has been approved by
the Justice Department with the stipulation that it must shed Intermedia's
business operations except for the controlling stake in Digex.

In a statement critical of telco giant NTT, an advisory panel to the
Ministry of Posts and Telecommunications singled out high rates arising
from it monopoly of the local telecom market, as a key reason that Japan
fallen behind in the global info-tech race. The panel proposed opening up
NTT's telecom infrastructure for use by newcomers and rival carriers.

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

For the period ending September 30, 2000, KDDI reported net profit of $79.5
million, down 21-percent from the year-earlier period.

ADC said its venture unit invested in Cinta Corp., a private developer of
next-generation switches. Cinta's wavelength switch integrates optical
switching, transport capabilities, and network management in a single
system. ADC declined to specify the amount of the investment, but it
occurred as part of a $35-million funding round.

Adelphia Communications results for the third quarter ending September 30,
2000, saw record revenues of $727.9 million compared with $232.3 million
for the quarter ended September 30, 1999 while EBITDA grew to $280.3
million compared with $77.4 million for the quarter ended September 30,
1999. Net loss for the third quarter totaled $145.3 million, or $1.06 per
share, applicable to common stockholders, compared with $56.9 million, or
$0.95 per share, for the same period in the prior year. Pro forma
consolidated revenues and EBITDA grew 14.3 percent and 6.8 percent.

BEA Systems reported third quarter revenues of $224.0 million, up 77
percent from $126.5 million last year. Net income was $31.3 million, up 200
percent from $10.4 million last year. Earnings per share were $0.07,
compared to $0.03 per share last year. BEA attributes its continuing
success to the increasing value of its platform.

Cisco Systems reported results for the first quarter 2001 ending October
28, 2000. Net sales for the quarter were $6.52 billion, compared with $3.92
billion for the same quarter of the previous year, an increase of 66
percent. Pro forma net income, which excludes the effects of acquisition
charges, payroll tax on stock option exercises, and net gains realized on
minority investments, was $1.36 billion or $0.18 per share for the first
quarter of fiscal 2001, compared with pro forma net income of $814 million
or $0.11 per share for the first quarter of fiscal 2000, for increases of
67 percent and 64 percent, respectively. During the first quarter of fiscal
2001, Cisco completed the acquisitions of HyNEX, IPmobile, Komodo
Technology, Netiverse, and NuSpeed, for a combined purchase price,
including assumed liabilities, of approximately $1.37 billion and took a
one-time charge of $509 million, or approximately $0.07 per share, on an
after-tax basis, as a write-off of in-process R&D. Actual net income for
the first quarter of fiscal 2001 was $798 million or $0.11 per share,
compared with $415 million or $0.06 per share for the same period last
year.

ECI Telecom reported consolidated results of operations for the third
quarter ended September 30, 2000. Revenues for the quarter were $327.2
million, an increase of 15 percent compared to $285.7 million recorded in
the third quarter of 1999. Net income from continuing operations for the
third quarter of 2000 was $14.6 million or $0.16 per diluted share compared
to $57.5 million or $0.61 per diluted share for the same quarter of 1999.

Electric Lightwave reported 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.

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. Global Crossing rported that
its recurring EBITDA was $355 million in the third quarter. Cash revenues
for its telecommunications services business were $1.2 billion, up 46
percent from a year ago.

ICG Communications filed for voluntary Chapter 11 bankruptcy as part of a
plan to restructure. This decision came after 300 ICG employees were fired,
and the company's stock had dropped drastically in past weeks. The company
had 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 certain conditions.

NorthPoint Communications restated its third quarter results, cutting
revenues by $6 million to $24 million. Citing the financial weakness of
some of its customers, NorthPoint claimed that it would not receive timely
payment for its services. The result was an EBITDA loss widening to $90.9
million from the $79.2 million previously reported.

Nippon Telegraph &Telephone reported operating profit was 610.3 billion yen
in the April-September 2000 period, up from 563.9 billion yen a year
earlier. Revenue rose to 5.5 trillion yen.

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, 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 that market in coming years. Having expanded
significantly in Europe and North America, Vodafone is turning its Asia,
where it serves only 4.9 million customers.

VoteHere.net, a developer of secure online voting systems, reported that
Compaq Computer Corporation and Cisco Systems have made financial
investments in the company. VoteHere.net worked with Compaq this fall
conducting online voting pilots during the general election in California
and Arizona. The Series C round funding now amounts to some $15 million.

Legal News
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 in punitive damages.

British Telecom sought "substantial damages" from Vivendi after being kept
out of the French company's Vizzavi Internet alliance with Vodafone. BT
cited the breach of accord between the shareholders of French telco
Cegetel, in which Vivendi owns 44 percent and BT holds 26 percent.

Personnel and Organizational Changes
As announced last September, Telmex plans to spin off its cellular business
in Mexico and most of its international investments to create a new
company, America Movil, by the end of the year. America Movil, which will
be based in Mexico City, will be Latin America's largest cellular provider.

Klaus-Dieter Scheurle, Germany's top postal and telco regulator, plans to
quit by the end of the year, signaling a possible setback for the country's
attempt to curb former government monopolies and to open markets to
competition.

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. The proposed
spin-off would eliminate regulatory concerns arising from the FCC's,
re-interpretation of cable ownership rules. In addition, this divestiture
satisfies one of the three FCC-imposed conditions for approval of AT&T's
acquisition of MediaOne.

Efficient Networks reported that it named Bruce W. Brown, 50, to be chief
executive officer. Mark A. Floyd, 45, co-founder and former CEO, will
continue as chairman of the board, in charge of Efficient's long-term
business and financial strategy. As CEO, Brown will be responsible for all
aspects of the day-to-day operations of the company. He will begin
immediately.

EMC appointed Dave Ellard Senior Vice President and Chief Information
Officer. Ellard will be responsible for EMC's worldwide information systems
(IS) infrastructure and will report to Joe Tucci, President and Chief
Operating Officer.

ePresence reported that it opened a new office and service center in New
York City. Located in the heart of the financial district at 20 Exchange
Place, this new facility will enable ePresence to work closely with clients
in focused teams to deliver personalized e-business services to the
financial services market.

As part of a plan to focus on Bluetooth development, Ericsson is forming a
new company that will expand Ericsson's current Bluetooth product
portfolio. The company will license technology to develop solutions for
hardware, software, training, and support. Ericsson's Bluetooth company
will license its own technology to chip and module manufacturers and OEM
manufacturers that develop mobile devices for consumers.

The INTELSAT Assembly of Parties, which represents the 144 member countries
that are involved with the satellite venture, approved a privatization plan
for INTELSAT. Under the plan, all assets, liabilities, and operations are
being transferred to Intelsat Ltd., a holding company based in Bermuda,
while all C- and Ku-band satellites and the licenses to operate them will
be held by Intelsat LLC, which is located in Delaware. The company's
service subsidiary will maintain its headquarters in Washington, DC. In
addition, a new board of directors will be chosen by all of INTELSAT's
shareholders when the group is privatized; and a year after the plan is
complete, INTELSAT will conduct an initial public offering.

Lucent Technologies' Optical Fiber Solutions business opened an optical
fiber cable manufacturing facility on Lucent' campus in Campinas, Brazil,
which already includes a wireless equipment manufacturing plant and the
Lucent Training and Advanced Technology Center. The $50-million facility
will serve the growing fiber optic cable market across Latin America. The
company also implemented changes in the structure of its senior management
team to integrate its sales and service organizations and to quicken the
pace of decision making. Ben Verwaayen, 48, Vice Chairman, will be
responsible for world-wide marketing, sales, and services. Bob Holder, 54,
previously Executive VP, Corporate Operations, will be responsible for the
company's product organizations, manufacturing, and supply chain
management. Also Executive VP and CFO Deborah Hopkins, 45, will assume
additional responsibility for developing the information systems
infrastructure to support Lucent.

Nextel Communications is appointing Steve Shindler CEO of Nextel
International. Shindler had been serving as the company's CFO along with
being acting CEO of the international unit, which provides wireless
services in Latin America and Asia. Nextel treasurer John Brittain will
succeed Shindler as CFO.

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. e-Solutions will be headed by Keith Paglusch.

Time Warner Telecom promoted Bob Miracle to regional vice president of the
Midwest Region. Mr. Miracle, who previously held the position of general
manager of Columbus operations, will be responsible for operations in
Columbus, Cincinnati, Dayton, Milwaukee, and Indianapolis.

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