Faulkner Telecom Weekly Dec 1, 2000 (fwd)

[Melissa Harvey]

---------- Forwarded Message ----------
Date: Monday, December 04, 2000, 11:29 AM -0500
From: Faulkner Telecom Weekly <telw...@faulknerinfo.com>
To: ???
Subject: Faulkner Telecom Weekly Dec 1, 2000

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

Telecom Weekly

Nov 27 - December 1, 2000

Top Story of the Week

Verizon Terminates NorthPoint Merger Agreement (11/30/2000)
Verizon Communications called off the NorthPoint Communications merger
agreement citing NorthPoint's deteriorating financial condition since last
August 7 when the companies had agreed to combine their DSL businesses. A
Verizon spokesman noted "material adverse change." Verizon also stated that
it is not obligated to arrange for additional financing for NorthPoint. The
merger, conditioned upon NorthPoint's business, financial, and operations
condition, would have formed a national broadband company combining the DSL
businesses, select assets, and select personnel. In response to Verizon's
abrogation of the agreement, NorthPoint said that it will pursue legal
action. The company, which is already struggling with deep financial
troubles, is seeking bank credit to pursue the legal battle. However, the
collapse of the deal could be ominous for NorthPoint, as its stock fell
further and the possibility of eventual bankruptcy loomed if its legal
struggles prove fruitless.

Acquisitions, Mergers, and Divestitures
BT, United News to ISP (12/01/2000)
British Telecom and United News &Media put another Internet service
provider on the market when they confirmed they were looking for a buyer
for LineOne, the UK's fifth largest ISP. BT is confident of finding a new
home for the ISP, recently valued at $483.8 million.

PictureTel Sells Audio Conferencing Unit (11/30/2000)
PictureTel sold its audioconferencing technology unit to conferencing
solution provider Spectel for up to $30 million. Spectel will pay $26
million in cash, plus up to $4 million of Spectel common stock.

Ericsson Completes Tender Offer (11/29/2000)
Ericsson completed its tender offer for Microwave Power Devices and
announced that it now owns 96.83 percent of MPD's outstanding shares. The
offer was priced at $8.70 per common share. With the offer complete,
Ericsson plans to merge MPD with one of its wholly owned subsidiaries.

Telesp Celular Finalizes Ceterp Acquisition (11/29/2000)
The largest cellular operator in Brazil, Telesp Celular, acquired CTERP
CELULAR from Centrais Telefonicas ("CETERP") for 148.6 million reals..
Telesp Celular is a subsidiary of Telesp Celular Participacoes, the
principal telco provider in Brazil.

Telecom Italia Unit Buys Maxitel Stakes (11/29/2000)
Italy's largest mobile-phone operator, Telecom Italia Mobile (TIM), gained
full control of another Latin American mobile-phone network by buying out
Brazilian shareholders of its Maxitel affiliate for $240 million. TIM had
brought a majority stake earlier this year in Venezuela's digital wireless
network.

Lockheed Completes Sale of Aerospace Business (11/27/2000)
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.

FT Grabs Control of Equant (11/27/2000)
France Telecom acquired control of Equant and merged it with its Global One
unit. FT will get a 54.3-percent stake in the new group, to be named in six
months, in exchange for Global One.

FT, Freeserve in Talks (11/27/2000)
UK Internet access provider Freeserve is negotiating with France Telecom
subsidiary, Wanadoo. Freeserve's fate has been uncertain since the
collapse, last June, of a merger with rival T-Online, controlled by
Deutsche Telekom.

Alliances and Joint Ventures
Compaq Launches Wireless Partnership (12/01/2000)
Compaq Computer International, in an attempt to increase the growth and
development of wireless technologies, launched the European Wireless
Center, which is part of the Compaq Solutions Alliance. The Compaq Wireless
Center provides an opportunity for partners from the telecommunications and
IT industries to test and develop new mobile solutions.

New York Times in Partnership with Nextel (12/01/2000)
New York Times Digital is joining with both Nextel Communications and Bell
Mobility to make online content from NYTimes.com available over the Nextel
Online wireless Internet service and the Mobile Browser on Bell Mobility's
digital PCS phones. New York Times Digital provides such information
content as Top Stories, international, political, technology, business, and
sports news, and book and movie reviews.

AT&T Teams with DoCoMo (11/30/2000)
AT&T Wireless entered a strategic alliance with NTT DoCoMo, which plans on
investing about $9.8 billion in AT&T. The investment grants DoCoMo 406
million shares of AT&T Wireless' tracking stock, a 16-percent interest. NTT
DoCoMo is also acquiring five-year warrants to purchase 41.7 million shares
of tracking stock. The two companies are working together to develop
next-generation, mobile multimedia services using a high-speed wireless
network that meets global standards for 3G services. Through this deal,
AT&T Wireless becomes one of the first major companies to deploy a UMTS
network in North America, and NTT DoCoMo will be the first of the world's
carriers to offer WCDMA-based mobile multimedia services. Such services
include graphic data presentation, video e-mail, music downloads, and
streaming audio and video.

Ericsson Joins with Juniper (11/30/2000)
Ericsson and Juniper created a joint venture that will concentrate on the
mobile Internet. The venture will provide ISPs and mobile operators with
mobile Internet routing products sold by Ericsson. ISPs and operators will
then use the technology in building GPRS and 3G systems. Ericsson is
combining its mobile network technology with Juniper's IP core backbone
technology as part of the agreement.

Vodafone in Venture with Cap Gemini (11/30/2000)
Vodafone created a 50/50 joint venture with Cap Gemini Ernst &Young to
develop mobile services for European businesses. The companies are
combining systems integration and mobile technology to create solutions for
freight handling, automotive, financial, and construction services.

Comcast Agrees to Deploy Wink on All Systems (11/30/2000)
In a deal designed to provide a significant boost to interactive television
on its systems, Comcast Cable signed an agreement with Wink Communications
to deliver Wink Enhanced Broadcasting and to use the Wink Response Network
on all its digital cable systems. Comcast estimates that with the expansion
of its digital cable systems, Wink will reach over 1.5 million homes over
the next three years. Wink Interactive TV enables programmers and
advertisers to enhance television content with interactive overlays
relating to the television program. These overlays appear as supplemental
text and graphics on the TV screen.

Juno Expands Time Warner Pact (11/30/2000)
Internet service provider Juno said it is expanding its open access
contract with Time Warner and TW's proposed merger partner AOL. Juno
originally reached an agreement for access to Time Warner's cable lines in
July, but specifics of the deal had not been ironed out at that time. Juno
said that it is negotiating details of the contract.

Comcast Opens Lines to Juno (11/30/2000)
Comcast agreed to offer Internet service provider Juno's high speed
Internet services over its cable lines. Comcast and Juno will begin trials
of the service in 2001 in Philadelphia. Comcast subscribers will have the
option of using Juno Express over the Comcast cable system. Juno will
become the first nonaffiliated company to acquire open access to Comcast's
broadband cable lines.

Amazon Signs with AT&T and Sprint (11/29/2000)
Amazon.com entered into agreements with both AT&T Wireless and Sprint PCS.
Under the agreement with AT&T Wireless, Amazon is offering the company's
wireless services to its online shopping customers in the US. Wireless
phones and services are now available through the Amazon Wireless Phone
Store, which is located at http://www.amazon.com/wirelessphones. Under a
similar agreement with Sprint PCS, Amazon customers can purchase Sprint PCS
phones and service plans at both customary and special introductory rates.

Cox Upgrading Digital Service in VA (11/29/2000)
Cox Communications and Scientific-Atlanta are working together to upgrade
Cox's digital plant and digital television services for over 240,000
customers in Fairfax County, VA. Scientific-Atlanta is offering solutions
covering content distribution, broadband access, subscriber networks, and
service support. Cox will be using the company's GainMaker platform and
other solutions to offer Internet access, enhanced TV, and t-commerce.

Motorola Working with Performance (11/27/2000)
Motorola's Computer Group is working with Performance Technologies to
develop gateway solutions for Motorola's Aspira line of communications
solutions. The gateway solutions are based on SST/IP-signaling and will be
combined with Motorola's third-generation solutions, which combine voice,
data, and multimedia services for next-generation portable devices.

QUALCOMM Signs Agreement with Axesstel (11/27/2000)
QUALCOMM signed a CDMA license agreement with Axesstel, which will use
QUALCOMM's CDMA technology and patents to develop wireless local loop
handsets and modem card products. The products created by Axesstel will be
used with cdmaOne, cdma2000, and 1xEV systems.

Broadband/Cable Networking
OpenTV Signs Deal with Cable Provider (12/01/2000)
OpenTV signed its first contract with a cable provider, agreeing to upgrade
existing Motorola set-top boxes on the USA Media Group cable network.
OpenTV will upgrade analog set-top boxes with OpenTV interactive software,
eliminating the need for the cable company to purchase new interactive
boxes. OpenTV is working with set-top manufacturer Motorola to sell
upgrades to cable networks already using Motorola's DCT-2000 set-top boxes,
providing electronic program guides and pay-per-view movies. However, the
deal marks the first time a cable provider has agreed to upgrade, as well
as OpenTV's first contract with a cable company. The deployment of the
upgraded boxes will begin in the first quarter 2001 and will offer
subscribers on-screen television shopping and other interactive content.

Scientific-Atlanta Launches New Explorer (12/01/2000)
Scientific-Atlanta introduced its Explorer 8000 set-tops, which operate on
the company's existing platform and supports all Explorer models. The new
boxes also offer such features as hard drives, two tuners, MPEG encoding, a
high-speed RISC processor, and personal TV applications. Time Warner Cable
was the first to order the new Explorers. The company signed a purchase
order for enough Explorers to last until 2002.

SBC Launches OC-192 Optical Service (11/30/2000)
SBC Communications announced the availability of OC-192 in a twelve state
region of OC-192. This Synchronous Optical Network allows network traffic
to operate at almost 10G bps.

Motorola in Agreement with Commerce.TV (11/30/2000)
Motorola's Broadband Communications Sector forged an alliance with
Commerce.TV . Commerce.TV's CORE Tvnet will be integrated with Motorola's
digital set-top terminals to provide customers with an intelligent data
base network carrying enhanced television and Internet content through the
set-top boxes. Commerce.TV is also joining the Horizon Developers Program
created by Motorola. The program provides developers of ITV applications
with technical, marketing, and sales support.

CableLabs Releases New PacketCable Specs (11/30/2000)
CableLabs completed the second phase of its PacketCable project, releasing
several new PacketCable interim specifications and technical reports.
PacketCable is a CableLabs initiative to develop interoperable interface
specifications for delivering advanced, real-time multimedia services over
two-way cable. PacketCable will use internet protocol (IP) technology to
enable a wide range of multimedia services, including IP telephony,
multimedia conferencing, telecommuter services, and other multimedia
applications.

Level 3 Activates Undersea Cable (11/30/2000)
Level 3 activated an undersea cable connecting their North American and
European broadband networks. The cable is a 37,000-mile marine system and
features more capacity than previous transoceanic cables.

Versatel Increases Fiber Network, Completes Ring (11/30/2000)
Versatel connected its 100th building to its own broadband network, over a
month ahead of the year-end 2000 target. In addition, the Belgian company
completed construction of the City Ring of Ghent, allowing companies
located in the Ghent area to access Versatel's own broadband network.

Telia First with Network Ring (11/27/2000)
Telia's "Scandinavian Ring," which links up Copenhagen, Oslo, Stockholm,
Göteborrg, and Malmo, is now ready to operate. The ring makes Telia the
first carrier to connect the Scandinavian cities with broadband.

Versapoint Chosen as DSL Supplier (11/27/2000)
Dutch telco Versapoint signed an agreement to supply UK service provider
Easynet with DSL services in the Netherlands.

CLECs
Time Warner Telecom Enters Dayton Market (11/30/2000)
Time Warner Telecom began offering services in the greater Dayton metro
area. Dayton is the 23rd market where Time Warner Telecom launched its
local dial tone, dedicated Internet, and long distance services.

Financial News
NorthPoint Stock Drops after Verizon Deal Canceled (12/01/2000)
NorthPoint Communications shares dropped 73 percent after the Verizon
merger pact fell through. The company's market capitalization was down to
$70.6 million, compared with August's $1.9 billion when the deal was
proposed.

Deutsche Telekom's Margins Squeezed (12/01/2000)
Deutsche Telekom warned that the cost of winning new customers for its
fast-growing mobile business is squeezing profit margins. While confirming
earlier projections showing nine-month profit up fivefold on windfall
gains, the Bonn-based company said beating off rivals to secure new users
would hold back earnings for the last three months of the year.

AT&T Broadband Halts Deliveries (11/30/2000)
AT&T
Broadband, AT&T's cable television and high speed Internet unit, halted
deliveries of pending orders from component suppliers for the remainder of
the year. The company said that the reduction in shipments was not due to a
reduction in demand, but a normal budget-balancing decision based on an
overabundance of components in hand.

VTEL Reports 1Q Results for Fiscal Year 2001 (11/30/2000)
VTEL reported revenues of $24.5 million for the first quarter of fiscal
year 2001, compared with $35.1 million reported for the first quarter 2000.
The company posted a net loss of $13.8 million, or $0.58 per share,
compared with a net loss of $5.3 million, or $0.22 per share for the
previous year's first quarter.

Lockheed Announces Large Tender Offer (11/29/2000)
Lockheed Martin will buy back $1.95 billion in outstanding debt issues,
including notes issued by Martin Marietta and Loral.

Internet/Intranet
Interoute Subsidiary Using ITXC.net (12/01/2000)
Interoute Paris, a subsidiary of Interoute, utilizes ITXC.net to send voice
calls from France to the rest of the world. The total amount of voice
traffic sent by Interoute over ITXC.net has increased 4,062 percent since
the beginning of the year. Interoute operates both an in-country network
and a pan-European network and is involved in the construction of the i-21
fiber optic network, which will be one of the fastest communications
networks in Europe.

Motorola Offering VoIP Solution (11/30/2000)
Through an agreement with Net2Phone, Motorola is developing VoIP products
and services by combining its IP telephony solutions with the VoIP
communications network operated by Net2Phone. Motorola's solutions include
its SURFboard SB3500 cable modem, which allows for primary line telephony
service.

NTT-ME, InterNAP Plan Joint Venture (11/29/2000)
NTT subsidiary NTT-ME and InterNAP inked a memorandum of understanding
forming a joint venture that provides connectivity services in Japan. The
venture would be the first of its kind between NTT-ME and a US-based
Internet connectivity provider.

Japan Telecom Unit Ties up with AT&T, BT (11/29/2000)
Jens Corp, a unit of Japan Telecom, agreed to tie up with AT&T and British
Telecom's Ignite to provide Internet data center services worldwide. BT and
AT&T each own a 15-percent stake in Japan Telecom, which is Japan's third
largest telco firm.

C&W Opens Hosting Center in Spain (11/27/2000)
Under its plans to become a global Internet services business, Cable
&Wireless opened a $46-million Web hosting center in Barcelona. The 43,000
square foot center offers businesses computer facilities to run their Web
sites.

Legal News
Court Bars Sprint Executive from WorldCom Employment (11/30/2000)
Sprint's former chief technology officer Martin Kaplan has been barred from
accepting the position of president of operations at WorldCom. The Kansas
District Court decision was made on the basis that Kaplan holds key
proprietary Sprint information.

Personnel and Organizational Changes
Dorman Named AT&T President (11/30/2000)
AT&T appointed David Dorman president to run its core telephone and network
service operations. He was the chief executive of Concert, the AT&T and
British Telecom joint venture. This is appointment follows the promotion,
late last year, of John Zeglis to chairman and chief executive of the AT&T
Wireless Group. This appointment leaves chief executive Michael Armstrong
to focus on the company's re-structuring plan.

BellSouth Appoints Planning and Operations Officer (11/30/2000)
BellSouth appointed Paulino Barros to chief planning and operations
officer. He will oversee information technology, networks and engineering,
planning, and supply chain. The company also appointed Roberto Peon chief
marketing officer for BellSouth's Brazil operations.

Covad Cuts Work Force (11/30/2000)
Following a wider-than-expected third quarter loss and the resignation of
its CEO, Covad Communications announced a plan to cut costs by eliminating
400 jobs, or 13 percent of its work force. Covad speculates that cuts will
generate savings of 20 to 30 percent for the fiscal year 2001. The staff
reductions will take place in various facilities throughout the US,
including sites in Denver, CO, Atlanta, GA, Santa Clara, CA, and Manassas,
VA. In addition to the layoffs, Covad plans to hold its network at just
over 2000 central offices, to rely on line sharing for customer orders
received after January 1, 2001, and to halt construction of a new facility
in Alpharetta, GA.

Alcatel Names Burns Senior VP (11/30/2000)
Alcatel named Brad Burns senior vice president, corporate communications,
of Alcatel Americas, the company's USA, Canada, and Latin America unit.
Burns joins Alcatel after serving as vice president, corporate
communications, of WorldCom. Burns will be responsible for internal and
external communications, including advertising and investor relations.

Level 3 Names Charles Miller Vice Chairman (11/30/2000)
Level 3 Communications named Charles Miller vice chairman. Miller, who had
served as president of BellSouth International, will assume his duties at
high-speed Internet connection provider Level 3 immediately.

T-Online Gets New CEO (11/30/2000)
Europe's largest ISP, Deutsche Telekom's T-Online, recruited Thomas Holtrop
to fill its CEO position. Holtrop faces the unenviable task of restoring
investor confidence in T-Online after months of uncertainty about its
business mix.

German Telco Regulator Quits (11/27/2000)
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.

Regulatory News
Regulator Drops Claim of Unfair BT Subsidies (12/01/2000)
British Telecom won a reprieve from its battles with Oftel when the UK
regulator dropped its charge that BT Cellnet was unfairly subsidizing its
mobile phone prices. Oftel published a draft directive in July ordering
Cellnet to stop the subsidies but recently admitted that the decision was
based on erroneous data.

FCC Approves Sharing of Satellite Band (12/01/2000)
The FCC is allowing fixed satellite service providers to operate in the
12.2-12.7GHz band, the same airwaves used by direct broadcast satellite
companies such as EchoStar Communications. A new order from the Commission
states that fixed multichannel video distribution and data service using
these bands do not cause interference to other companies. SkyBridge and
Northpoint Technology petitioned the FCC to allow this band-sharing, and
they will use these airwaves to offer video, telephony, high-speed Internet
services.

FTC Delays AOL-Time Warner Decision (11/30/2000)
The FTC delayed plans to sue to block AOL's merger with Time Warner. The
regulatory agency voted to delay taking action on the deal as negotiations
between the parties continue. The delay is primarily due to the FTC's
reluctance to allow the ISP and cable giant to merge and then emerge as a
dominant force in the high speed Internet market. As a precaution to ensure
competition in that market, the FTC is attempting to procure assurances
that Time Warner's cable lines will be open to competitors. The delay comes
a week after Time Warner reached an agreement to open its cable lines to
AOL rival EarthLink.

Telefonica May Be Key to Troubled Polish 3G Tender (11/30/2000)
Poland's UMTS tender became Eastern Europe's first attempt to award 3G
mobile licenses. Local incumbents held off bidding until Spain's Telefonica
made its move. Poland hopes to raise $2.81 billion by selling five UMTS
permits by year's end, but protests over tender costs and conditions have
frightened off most foreign players and have elicited threats of a boycott
by the three current GSM operators.

Telia Awarded 3G License in Norway (11/30/2000)
Sweden's Telia unit, NetCom, was awarded one of five UMTS licenses in
Norway. Telia now has UMTS licenses in both Norway and Finland and has also
applied for a license in Sweden.

Norway to Award UMTS Licenses (11/29/2000)
Norway will award four UMTS licenses in December 2000. Among the applicants
are Norway's Telenor and NetCom, controlled by Sweden's Telia; both Telenor
and NetCom are viewed as strong bidders in the auction process.

Watchdog Rules against BT (11/27/2000)
Oftel upheld complaints that British Telecom made unreasonable demands of
rivals who want to house high-speed Internet equipment in its local
exchanges. To challenge BT's claims of space shortage, Oftel proposed
rewriting the company's exchange contracts to allow operators to commission
an independent survey if BT claims there is insufficient space in an
exchange.

Oftel Sets Rules on Local Lines (11/28/2000)
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.

NextWave Appeal Rejected (11/27/2000)
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 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 are for naught. The
decision allows the FCC to auction the licenses as part of a larger airwave
auction scheduled to begin on December 12.

Japan Looks to Competition to Boost Technology (11/28/2000)
Taking a veiled swipe at telco giant, NTT, an advisory panel to the
Ministry of Posts and Telecommunications singled out high rates, due to a
monopoly of the local telecom market, as a key reason Japan lagged in the
global info-tech race. The panel proposed opening up NTT's telecom
infrastructure for use by newcomers and rival carriers.

Satellite Communications
BVI, DIRECTV Sign Pay-Per-View Agreement (12/01/2000)
Buena Vista International and DIRECTV Latin America signed a 10-year
pay-per-view agreement for DIRECTV to broadcast the motion picture output
of the Disney studios to subscribers in Brazil.

PanAmSat Intros Power of 5 (12/01/2000)
PanAmSat launched its Power of 5 program for cable operators and content
providers distributing and receiving entertainment and information. The
company is giving away Multi-Beam-Feed kits and new antennas to operators;
these kits provide access to cable television channels and to PanAmSat's
NET-36 IP Broadcast Network and IP content distribution networks.

Hughes Awards Contract to Globecomm (11/30/2000)
Hughes Network Systems awarded a contract to Globecomm Systems under which
it will provide Telecom Anywhere services to an international network
connecting the US and the Caribbean and Latin America regions. The
five-year, $3.5-million contract calls for Globecomm to provide its
satellite-based solutions through its SATMEX 5, NSS-803, and INT 805
satellites.

Iridium Satellite Comes Falling Down (11/30/2000)
As expected, one of Iridium's non-operational satellites fell out of orbit
and re-entered the Earth's atmosphere, where it burned and broke up over
the Arctic Ocean. The US Space Command tracked the falling Iridium 79
satellite and expects another, the Iridium 85, to do its meteorite
impression around December 17. Over 70 of Iridium's satellites are still
secure in orbit and are ready for operation, whenever that may occur, now
that the US Bankruptcy Court for the District of New York approved a
$25-million bid from Iridium Satellite LLC for the assets of Iridium LLC
and its subsidiaries.

Motorola Links Earth and Space Station (11/29/2000)
Motorola is launching a communications system to link Earth with the
International Space Station. Using its S-Band telemetry and control
transponders, Motorola's system will provide voice and data transmissions
to and from the space station. The system will carry scientific data and
video from research conducted in the ISS laboratory.

Globalstar Opens New Ground Station (11/29/2000)
Globalstar USA, along with Globalstar Caribbean, opened a new gateway, or
ground station, in Cabo Rojo, Puerto Rico. Through the gateway, Globalstar
can provide enhanced satellite coverage to customers in the Caribbean. The
gateway allows customers in the region to make calls without international
roaming charges.

Hughes Awards Contract (11/27/2000)
Hughes Network Systems awarded a contract to Spectrum Signal Processing,
which will supply the signal processing technology that Hughes will
implement in its satellite base stations for both enterprises and
consumers. The flexComm CompactPCI signal processing engine and the
Motorola CompactPCI-based CPX8216 system will be integrated with Hughes'
base-stations.

PanAmSat Satellite Fails (11/27/2000)
PanAmSat's Galaxy VII satellite reportedly failed after a backup control
system malfunction. The loss does not affect the company's services or
revenues since Galaxy VIIserved as a backup satellite and was used only
occasionally in the US. The company plans to file an insurance claim worth
$130 million.

Level 3 Awarded Contracts Worth $700 Million (11/30/2000)
Level 3 Communications signed new network capacity and service deals valued
at over $700 million with three companies. McLeod USA and XO Communications
agreed to buy capacity on dark fiber lines and to purchase co-location and
network management services in deals worth $200 million each. These
companies will also rent space in one of Level 3's data center facilities
to house their communications and Internet equipment. Level 3 also
announced a third contract with an undisclosed customer valued at $325
million. The deals typically span 15 to 20 years, providing Level 3 with
long-term guaranteed revenue and increasing its total dark fiber sales for
the year to over $2 billion.

Wireless Communications
Motorola in GPRS Expansion Deal (12/01/2000)
Local cellular operators in India are negotiating with Motorola India for
the right to use a global technology to develop Internet-enabled mobile
phones. Motorola is in talks with Orange and Spice Telecom, which are
planning to integrate GPRS with their existing networks. The company
already installed GPRS for BPL Mobile, one of the companies operating in
Bombay.

Nokia Signs Agreement with Digital Phone (12/01/2000)
Nokia signed an $85-million agreement with Thailand's Digital Phone
Company. Nokia. will deliver GSM 1800 equipment that will cover the
metropolitan area of Bangkok. Nokia is supplying mobile switching centers,
base stations, and controllers, including its UltraSite base station
solution, which supports GSM, high-speed data, GPRS, EDGE, and WCDMA.

AOL Introduces Mobile Communicator (12/01/2000)
AOL released its AOL Mobile Communicator, which provides access to AOL
Instant Messaging and e-mail services. The two-way paging device, part of
the AOL Anywhere strategy, is available to AOL members, who can stay
connected any time and in any place. The Mobile Communicator includes a
built-in keyboard for typing instant messages; members sign on to the
service with their AOL screen name.

ALLTEL Offering Wireless Banking (12/01/2000)
Through an agreement with SensCom, ALLTEL is now able to offer banking
services through the wireless Internet, which allows banking customers to
make transactions through a wireless device. Under the agreement, ALLTEL is
integrating its e-drive products with the SensCom's platform. ALLTEL's
solutions include Internet banking, personal cash management, and
electronic bill payment and presentment.

Mobile Messaging Available from Verizon (12/01/2000)
Verizon Wireless is making its Mobile Messaging service available to
customers in Greater Los Angeles. These customers will be able to swap text
messages through their digital phones. Mobile Messaging is a two-way short
messaging service that customers can pay for as they use it instead of
subscribing to it. The company plans to add markets until Mobile Messaging
is available nationwide in 2001.

AT&T Chooses Ericsson, Nokia, Lucent, and Nortel (11/30/2000)
AT&T Wireless signed Ericsson to a letter of intent to supply
third-generation, wireless network equipment. Ericsson is delivering four
base stations systems: GSM for voice; GPRS for packet data; and EDGE and
UMTS for high-speed 3G applications. The company is also supplying its R520
mobile phones, which AT&T Wireless will use in conjunction with the launch
of its GPRS network. The GPRS system supports high-speed, packet-based
access to the mobile Internet at higher rates than current mobile networks.
AT&T Wireless also chose Nokia as a supplier of high-speed, mobile,
Web-enabled GPRS networks. Nokia is delivering mobile network systems and
wireless terminals. In related news, Lucent Technologies will supply
equipment for AT&T Wireless' high-speed data network and for the company's
migration to third-generation services such as UMTS. Lucent is installing
its Global System for Mobile Communications base stations along with GPRS,
which will work with AT&T's Digital PCS network. Lucent's equipment will
also be part of AT&T Wireless' evolution to 3G. Finally, Canada's Nortel
Networks was awarded a core portion of the contract and will supply IP
infrastructure equipment, which will be used to offer next-generation
services. Nortel's core network equipment supports 3G global standards and
such mobile Internet services as video, data, graphics, and broadband
multimedia services.

US Companies Using GSM (11/30/2000)
Cingular Wireless and AT&T Wireless are reportedly adding GSM technology to
their wireless networks. GSM technology would allow customers to use one
phone when traveling throughout the US and the rest of the world, and it
would allow both companies to migrate toward next-generation wireless
technology that transmits voice and data at high speeds.

Ericsson Wins Contract from Dutch Company (11/30/2000)
Ericsson is installing a third-generation UMTS network in the Netherlands
as part of a $300-million agreement with Telfort. The company is supplying
Telfort with a complete system based on WCDMA, including both professional
services and terminals. Telfort will use the network to launch mobile
office, unified messaging, location-based, and entertainment services.

Sprint PCS Launches Wireless Web Modem (11/30/2000)
Sprint PCS, after collaborating with BlueKite.com and Sierra Wireless, made
its Wireless Web Modem solution available to business customers. By
utilizing both wireless data hardware--the AirCard 510--from Sierra
Wireless and BlueKite's wireless Internet services, Sprint PCS created a
solution that provides wireless access to the Internet through a laptop at
speeds of at least 56K bps. With the AirCard 510, which fits into a Type II
slot on a laptop with Microsoft Windows, business customers can connect to
the Internet or to a corporate network without the use of a landline
connection or a wireless phone and cable.

Sonera Cuts Ipse Stake (11/30/2000)
As part of an ownership reshuffle, Finnish telco Sonera reduced its stake
in the Italian 3G mobile license consortium Ipse 2000 19 percent to 12.55
percent. Sonera aims to focus instead on existing licenses in Finland,
Spain, Germany, and Italy.

Sonera Launches Finnish GPRS (11/30/2000)
Sonera launched it General Packet Radio Service (GPRS) and indicated that
new services would be on sale by December 11,2000. GPRS, a stepping stone
to 3G mobile networks, supports higher data transmission rates and will
allow for permanent Internet connections.

Cingular Launches Wireless Messaging (11/29/2000)
Cingular Wireless, through an agreement with InfoSpace, launched a wireless
instant messaging service for its My Wireless Window. InfoSpace's platform
powers the service, which is integrated with MSN Messenger. Using a
Web-enabled phone, Cingular customers in California, Nevada, Chicago,
Dallas, and Tulsa can send and receive real-time messages. The company is
launching the service in additional markets in early 2001.

Three Companies Building UMTS Network (11/29/2000)
Nokia, Ericsson, and Motorola were awarded contracts for the initial phase
of construction of Telefonica Moviles' UMTS network. This contract is part
of Telefonica's strategy to spend around 20 billion pesetas on a UMTS
network covering Spain's 16 largest cities. In related news, Nokia is
supplying third-generation core and advanced radio network equipment to
Telefonica Moviles. Nokia's IP-based mobility core and radio access
technology will allow Telefonica to launch 3G services beginning August
2001.

Nokia Bringing Wireless LANS to Norway (11/29/2000)
Nokia agreed to deliver Wireless LAN technology to Norway's Telenor Mobil.
The company is supplying Wireless LAN access points and Access Controllers,
which Telenor will use to provide access to corporate Intranets and the
Internet at speeds of 11M bps. Telenor Mobil is offering this service in
areas with high human traffic, including hotels, airports, and transport
hubs.

BellSouth WD Enters Agreement (11/29/2000)
Research in Motion signed an agreement to provide 150,000 Wireless
Handhelds to BellSouth Wireless Data, including 75,000 of its 950 model and
75,000 of its 957 model. BellSouth Wireless Data offers RIM Wireless
Handhelds to consumers and enterprises. In addition to the supply
agreement, BellSouth Wireless Data is offering the RIM Blackberry e-mail
solution directly to its enterprise customers.

Nextel Providing M-Commerce Solution (11/29/2000)
Nextel Communications is licensing the PayWare Wireless Payment Platform
from Trintech to offer a secure payment process for its m-commerce
customers. PayWare allows customers to make m-commerce transactions without
entering personal or credit information with each purchase. PayWare
includes three solutions: PayWare mAccess, PayWare eIssuer, and PayWare
ezCard.

Verizon Wireless Offers Flat Rates in Iowa (11/29/2000)
Verizon Wireless announced that its SingleRate calling plans are available
to communities in Eastern Iowa. The company is offering national calling
with no roaming or long distance charges to customers in Waterloo, Cedar
Rapids, Iowa City, and Dubuque. Rates range from $35 per month for 150
minutes to $200 per month for 2000 minutes.

Ericsson in Partnership with D2 (11/27/2000)
Ericsson signed an agreement worth EUR 500 million with D2 to rollout a
UMTS network in Germany. The company is supplying and installing
infrastructure equipment for the network and will provide ongoing service
after the rollout. This agreement augments an existing partnership between
the two companies, which operated a UMTS network in a test environment in
Düsseldorf and jointly launched a GSM network throughout the country.

Nokia Announced TETRA WAP Browser (11/27/2000)
Nokia introduced its TETRA WAP Browser designed for professional mobile
radio networks. With the TETRA WAP Browser, users are able to access data
communications through a PC or a laptop. The WAP-enabled browser supports
such applications as TETRA short data SDS and TETRA IP packet data services
for digital mobile radio users. In addition to the launch of the browser,
Nokia announced that over 100 application developers joined the TETRA
Wireless Services Partner Program that provides information for the
integration of TETRA-based applications in TETRA networks.

Ericsson Expects 3G Sales in Japan (11/27/2000)
Ericsson expects to begin selling third-generation mobile phones in Japan
beginning late in 2001. The company plans the installation of a 3G network
in the country in the spring of next year. Ericsson's mobile phones will
allow users to remain connected to the Internet and to access such services
as live video and advanced graphics.

Nokia Supplying GSM 1800 to Jilin (11/27/2000)
Nokia was contracted by China's Jilin Mobile Communications to provide a
GSM 1800 network. Under the $15-million agreement.The network to be started
in early 2001 will cover Changchun, Yanji, Siping, and Songyuan.

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