Headlines - October 15, 1999
TOP STORIES
ADSL
CONFERENCE NOTES (TELECOM ’99 GENEVA)
EARNINGS/STOCKS
EUROPE
INDIA
NETWORKS
TOP STORIES
Intel Responds to Wireless Internet Trend with $1.6 Billion Acquisition of DSP
Seeing the potential of the marriage between the Internet and wireless phones, Intel Corp. has reached an agreement to acquire DSP for $1.6 billion. The company has been expanding into the market for chips used in communications products as its microprocessor business has been hit by falling personal computer prices. This acquisition is Intel’s second largest purchase ever and its single largest all-cash purchase. Under the terms of the deal, Intel will pay $36 a share for DSP’s shares outstanding, 28 percent more that DSP’s $28 closing price Wednesday for a company much smaller than itself. Chief executive officer Craig Barrett said that DSPs products are major element in the company’s strategy to expand its role in the Internet sector. "Our vision is that the Internet will increasingly go wireless," said Barrett. "You should look at this as a beachhead into wireless communications over the Internet using a variety of devices." The market responded favorably to the deal as Intel’s stock rose $1.2188 to $73.3438 in trading on the Nasdaq stock market, and DSPs rose $6.9375, or 25 percent to $3.9375 in composite trading on the New York Stock Exchange.
Tyco Submarine Systems Ltd. Wins US$100 Million Seashore Atlantic Maintenance Contract
Tyco Submarine Systems Ltd. has won a US$100 million seashore Atlantic maintenance contract from Worldwide Telecom (Barbados) Inc., a wholly owned subsidiary of Worldwide Fiber Inc. (WFI), for its transatlantic Hibernia Cable System. This contract with TSSL for this five year maintenance program, WFI is the first cable system owner to participate in SEAHORSE Atlantic since the new premium service was announced a few months ago. The contract is valued at approximately US$100 million and has provided for extensions of the contract at the end of the initial five-year term. SEAHORSE Atlantic is a dedicated, full-service maintenance solution for undersea cable system owners, utilizing exclusively three vessels from TSSL's world class fleet. The innovative maintenance program is offered to a limited number of participants at a fixed price, inclusive of repairs. In addition to providing a comprehensive portfolio of maintenance services, SEAHORSE Atlantic sets a standard of repair times and other critical performance factors that are backed with financial incentives and penalties.
ADSL
New Startup Targets DSL Distance Limitations
As high-speed Internet access over copper lines becomes more of a reality in the United States, subscribers are being constantly hit with speed bumps if they live more than a couple of miles from the provider’s central office switch. To address this growing problem, a new Silicon Valley startup is making an attempt to fulfill the needs of subscribers who have a need for speed. Integrated Telecom Express Inc. yesterday unveiled a new chip that extends the range that high-speed Internet connection can travel from a central office switch to 3.8 miles, or 20,000 feet. Right now, these connections become distorted at between 12,000 and 16,000 feet. Further, the company claims that the chip will cut the cost of DSL modems that use the chip from about $150 to $100, and will work with any kind of DSL equipment present in the central office switch. The ITEX chip essentially filters the signals from the noise by transmitting corrective impulses that reduce the effects of noise and precisely control the amount of power used in the product, which also generates noise.
CONFERENCE NOTES (TELECOM ’99 GENEVA)
ECI Telecom Ltd. and Tdsoft Ltd. to Jointly Develop Voice Services Over DSL
ECI Telecom Ltd. and Tdsoft Communications Ltd. today announced a cooperation that will enable new and incumbent service providers to add voice services over DSL. Tdsoft and ECI enter this cooperation to interwork their products and to enable voice services over DSL next generation access network by combining ECI's Hi-FOCuS DSLAM systems with Tdsoft's versatile Voice Access Gateway; the VoNGATE. Having commenced in joint activity with Tdsoft's VoNGATE, ECI will be able to carry out telephony calls over their Hi-FOCuS DSLAM systems while maximizing the use of their bandwidth capacity, enabling service providers to increase revenues on existing infrastructure. Anticipating testing in Operators in Eastern Europe in the beginning of Q1 2000 the companies are looking forward to accelerate implementation of Tdsoft's VoNGATE with ECI's Hi-FOCuS DSLAM systems.
International Investors Evince Keen Interest in the Indian Telecom Sector
The Impressive growth of Indian Telecom Sector and the plans of the Government for faster growth under New Telecom Policy-1999 (NTP-99) have generated big investors' interest at the Telecom'99 + Interactive'99 being held at Geneva from October 10-17, 1999. The Indian delegation, which is led by Secretary, Department of Telecommunications (DoT), Shri Anil Kumar, informed the international telecom community that big investment opportunities under liberal NTP-99 policy regime are in the offing with Domestic Long Distance to be opened up from January 2000 and new licenses to be given shortly for basic as well as cellular mobile services. Shri Kumar said that there are vast opportunities for setting up ISPs and various IT enabled services for which a very liberal policy framework has already been set in place.
EARNINGS/STOCKS
Sun Microsystems Beats First Quarter Expectations, Net More than Doubles
Feeling the strong force in the fast-paced growth of the Internet economy, Sun Microsystems beat expectations for its fiscal first quarter posting compelling revenue growth of 25 percent. Net income for the quarter ended September 26 rose to $271.1 million, or 33 cents a diluted share, more than doubling the $113.9 million, or 14 cents a share, of the year earlier period. And company revenue rose to $3.12 billion, up from $2.49 billion in the year-earlier period. This marks the seventh straight quarter in which Sun’s net income has improved, blowing other computer server companies out of the water. Other companies such as Hewlett Packard, International Business Machines have struggled in recent months with weak sales. Hewlett Packard warned investors that its current quarter revenue might suffer partly as a result of lower than expected US server sales. New chief executive Carly Fiorina argued that this reflects HP’s sales force poor performance.
EUROPE
European Commission Approves Telia/Telenor Merger, Sets Precedent to Promote Competition in Incumbent Markets
Yesterday, the European Commission granted its approval of the first cross-border telecommunications merger in the 15-nation European Union, but not without several conditions. These conditions call for Telia AB and Norway’s Telenor to divest themselves of their overlapping assets, including mobile phone operations, cable television distribution and other telecommunications services. More importantly, the EU will require both companies to open their local telephone networks to competition. European Competition Commissioner Mario Monti said he wanted the merger to set a precedent for mergers between incumbent telecom operators by requiring divestitures to open up competition in these markets. However, new carriers were not satisfied with the ruling. Bredbandsbolaget, a Swedish broadband service provider, argued that the new company would keep out competition because of its control of regional and national fiber optic network. With the deal, the Swedish government will own 60 percent of the newly merged company, while the Norwegian government will hold 40 percent. The intention is to reduce these stakes to 33 percent each in a partial privatization no later than May.
ATM Tariffing `Immature' and A Key Barrier to Growth
ATM is still an immature market in Europe and tariffing is in its formative stage, according to a new report by Phillips Tarifica, the London based telecommunications consultancy. PVCs and CBRs are offered widely, yet very few operators offer VBR-rt, ABR and UBR and international ATM services are in the early stages of development. Operators are also highly reluctant to reveal prices, going against the grain of current EC thinking which favors open and transparent pricing. The report, based on interviews with providers of ATM services across Europe, clearly illustrates that the majority of operators intend to keep tariff information confidential. Much of the disparity reflects the fact that PTOs, used to doing business in a voice and low bandwidth data environment, are themselves grappling with the challenge of how to price position new high bandwidth services. Some have loosely aligned their ATM pricing structures with an existing product, while others are pricing on a per project basis. Due to the high bandwidth and different classes of service within the one product, ATM is significantly different from previous services. Consequently, there appears to be some "trial and error" tariffing at present - to see what works best.
BT and Microsoft to Jointly Develop Mobile Internet Products and Services
BT and Microsoft will combine efforts to develop mobile Internet and multimedia applications and equipment. The Worldwide agreement will lead rapidly to new types of service with broad consumer appeal. The two companies will join forces to: create a mobile multimedia service, which allows customers to display, and access personalized information on handheld wireless devices, develop handheld interactive wireless devices based on the Microsoft Windows CE operating system, establish an open industry forum for the development of third generation (3G) mobile Internet applications. Both companies are to commit substantial resources to collaborative work in the belief that the market for mobile Internet and multimedia products and services represents a massive opportunity for rapid business growth based on existing mobile networks and the forthcoming third generation (3G) networks, including UMTS.
TP S.A. Finance Establishes New Unit Based In Amsterdam
The Management Board of Telecomunikacja Polska SA.’s wholly owned subsidiary, TP S.A. Finance BV, has established a new limited liability subsidiary under Dutch law, TP S.A. Eurofinance BV. The new entity is wholly owned by TP S. A. Finance and is headquartered in Amsterdam. The authorized equity of TP S.A. Finance BV amounts to 200,000 Dutch guilders divided into 2000 shares, with nominal value of 100 Dutch guilders each. TP S.A. is the sole shareholder of TP S.A. Finance BV and holds 400 shares in the authorized equity of TP S.A. Finance BV with a total nominal value of 40,000 Dutch guilders, i.e. all of the shares issued by the company to date. The shares carry 400 votes at the Shareholders' Meeting of that company. Donald Chodak, Marian Ogonowski and MessPierson Trust BV constitute the Management Board of TP S.A. Finance BV. In addition, Mr. Chodak and Mr. Ogonowski are at the same time members of the Management Board of TP S.A. The Company's activities include issue and purchase of bonds and other obligations relating to debt securities interest, participation in other ventures and companies, their financing and management, and undertaking of obligations of the Capital Group, of which the Company is a member.
Parecelforce Worldwide and IBM to Jointly Promote E-Business
Parcelforce Worldwide has linked up with IBM to offer small and medium sized customers access to IBM's HomePage Creator e-business service free of charge for a 60-day period. Contract customers using Parcelforce Worldwide services have already received details of IBM's unique HomePage Creator service in Parcelforce Worldwide's customer newspaper. The first 500 people to register for IBM's HomePage Creator for e-business will receive a free 60-day trial. Thereafter everyone who registers for the HomePage Creator will receive a free 30-day trial. Parcelforce Worldwide's recently redesigned web site, http://www.parcelforce.com now has a hot link to IBM's HomePage Creator for e-business, which gives on screen, step-by-step guidance on how to set up a catalogue based web site with fully secure transactional capability tailored to suit individual business needs.
INDIA
MTNL's to be Fix Mobile Tariff Next Month
The Telecom Regulatory Authority of India (TRAI) will determine tariffs for Mahanagar Telephone Nigam Ltd's (MTNL) mobile services in a month. The authority would subsequently recommend terms and conditions for its mobile license. TRAI has introduced a consultation paper on this issue, and has sought written responses by October 25, after which the final tariffs would be determined within the following 10-15 days. The regulator has concluded that MTNL has to include a provision for payment of interconnection costs. This will require MTNL to collect additional amounts from its subscribers. TRAI will also take up the issue of subsidiary for MTNL's mobile services. Meanwhile, MTNL contested TRAI's conclusion that revenues from CDMA-based mobile phones would fail to cover its costs, saying that it was based on faulty calculations.
MTNL Charges TRAI with Breach of Confidentiality
A new twist has been added to the ongoing face-off between Mahanagar Telephone Nigam Ltd. (MTNL) and the Telecom Regulatory Authority of India (TRAI). MTNL chairman and managing director, S Rajagopalan, has charged the regulator with breach of confidentiality, by including crucial information regarding the CDMA-based mobile telephony project in the consultation paper on MTNL's tariff and thereby making it public. TRAI had, in its consultation paper, made public crucial information regarding MTNL's handset cost, operating cost, insurance for handsets. Maintaining that vital statistics regarding the project had been provided to TRAI "in good faith," the MTNL chief expressed the apprehension that its rivals might use the project-critical information.
NETWORKS
Network World to Host One-Day Seminar on VPN Deployment – Practical VPN Deployment: The Next Step
Network World Fusion will host a one-day seminar that addresses the technical issues in developing a corporate VPN. Practical VPN Deployment: The Next Step is a one-day seminar designed to give you a clear understanding of these technical issues and how to meet them head on. Seminar director Eric Zines, a Senior VPN Consultant with TeleChoice, Inc., will explore the greatest challenges to deploying and growing a successful VPN, and will provide solutions to these problems. You will learn from the success stories of early adopters, and will learn to avoid the common VPN pitfalls. If you need technical information to expand your existing VPN, or want to get up to speed quickly on implementing your first VPN pilot, this seminar will help you get it right. The seminar begins at 8:00 AM with registration and a continental breakfast. The seminar will begin promptly at 9:00 AM, and will end at 3:00 PM. Luncheon and refreshment breaks are included.
"Today in Telecom" is a publication of Information Gatekeepers Inc. ©1999. 214 Harvard Ave, Boston, MA 02134; Tel: 617-232-3111; Fax: 617-734-8562
Headlines - October 14, 1999
TOP STORIES
CABLE OPTICS
COMPUTERS
CONFERENCE NOTES (TELECOM ’99 GENEVA)
EUROPE
FIBER OPTICS
TOP STORIES
Demand for Optical Components Drives up Corning’s Profit 28 Percent
On the wave of strong demand for its fiber optic components for telecommunications networks, Corning’s sales and profit rose 28 percent to $133.3 million, or 54 cents a diluted share. Analysts expected the company to earn 53 cents a share. Sales rose 25 percent to $1.14 billion from $906.5 million in 1998. Excluding the impact of acquisitions, sales jumped 17 percent. One of the main factors that contributed to the company’s strong showing this quarter was the sale of its LEAF optical fiber product, which tripled over the past year. Also, sales in optical amplifiers were strong and sales of liquid crystal display glass used in computer monitors, semiconductor materials and substrates used in catalytic converters.
Tyco International Shares Drop 6.2 Percent on Unfavorable Reports on Company’s Accounting Practices
In response to reports that were critical of its accounting practices, Tyco International Ltd,’s stock dropped more than 6.2 percent yesterday before being halted. A Tyco spokesman called the report inaccurate and off base and said the company would hold a conference call today to discuss the report in detail. It also expected to report next week better-than-expected results for its fiscal fourth quarter, ended September 30. This report was included in "Behind the Numbers," a newsletter published by David W. Tice, who also manages the Prudent Bear Fund. In the report, Tice focused on Tyco’s practice of taking large acquisition-related charges, which he said obscures the company’s actual results. Tice found at least two places where Tyco may have overreserved for costs associated with severance pay and facilities closures, which raises the issue of whether management could later those excess reserves to pump up profits.
Time Warner Inc. Beats Third Quarter Forecasts
Time Warner Inc. reported that third quarter revenue shot up significantly, as a result of one-time gains. However, growth in the company’s cable network offest declines in its music and filed entertainment units. Company net income for the quarter totaled $369 million, or 27 cents a diluted share after preferred dividends. One-time pretax gains of $477 million from the sale or swap of cable systems boosted the latest quarter’s result. Although the results exceeded expectations, Time Warner’s shares fell $1.25 to $62.025 in New York Stock Exchange trading yesterday.
CABLE OPTICS
MediaOne Brings Local Telephone Service to the Massachusetts South Shore
Introducing its local telephone service for the first time to the South Shore of Massachusetts, MediaOne will be offering digital telephone service to residents in Hanover, Hingham, Hull and Weymouth beginning on October 19. With digital telephone services, MediaOne will be providing these residents with a full spectrum of popular calling features and two regional calling plans at prices they claim that are between 26 to 59 percent below the competition. MediaOne’s Digital Telephone Services is a competitive, local telephone service that includes 15 popular calling features, such as Caller ID, Call Waiting and last call return *69 and unlimited local calling plus touchtone service to residents for a monthly price of $26.95. The new service will be carried over the company’s hybrid fiber optic coaxial cable or interactive broadband network, which also brings MediaOne customers cable television and RoadRunner high-speed Internet services.
COMPUTERS
Apple Computer Exceeds Fourth Quarter Predictions
Apple Computer reported that fourth quarter profit was above predictions it had last month, when it lowered earnings expectations. The computer maker, however, is putting off delivery of its fastest Macintosh systems until early next year because of continued production problems with chipmaker Motorola Inc. As a result of these shortages, which involve he microprocessors that the company uses in the high-end machines that make up 25 percent of its product line, caused the quarterly profit to be well below Wall Street’s expectations. IBM has stepped in to address the chip shortage by resuming to make microprocessor for Apple. Company net income for the quarter was $111 million, or 63 cents a diluted share, compared with $106 million, or 68 cents a share in 1998. Minus a series of one-time charges, income was $90 million, or 51 cents a share.
CONFERENCE NOTES (TELECOM ’99 GENEVA)
Project Oxygen Denies Rumors that Venture is in Trouble
In response to rumors in the industry that the Project Oxygen venture is in trouble, vice chairman Pekka Tarjanne made a statement arguing that the venture is all set for takeoff. "We’ve got our financing essentially in order," Details will be announces in a few week time. Tarjanne also says stories about Oxygen shedding staff had been misconstrued. "We’ve got rid of people, that’s true. But we’ve recruited others."
Corvis and Ciena Corp. to Develop New All-Optical Devices
One of the major trends at this year’s Telecom Geneva event is the development of all-optical devices. Ciena and startup Corvis Corp. plan to develop new all-optical devices, with no electrical conversion required. Corvis’s optical router will enable carriers to build longer fiber spans without the need for electrical regeneration, and will enter trials in early 2000.
Three International Telecom Players to Launch International Undersea Networks
Global TeleSystems and FLAG Telecom announced plans to lay a dual terabit cable connecting London, Paris and New York. Teleglobe Communications will unveil its undersea cable expansion plans. And Pangea is in the process of readying a US$400 million Scandinavian cable for completion in late 2000.
China Telecom Launches Dedicated IP-Based Economy IDD Prepaid Phone Card Service with Global Partnerships
Clarent Corp. has become the main supplier of IP telephony products to China Telecom for a new dedicated IP-based "Economy International Direct Dial" phone service in China. This new IP Telephony based network will enhance China Telecom’s communications infrastructure and is intended to provide the foundation for China Telecom to offer new services to consumers and enterprise customers in China. China Telecom plans to launch a variety of international long distance calling services using Clarent products. One of the initial services is a newly branded Economy prepaid calling card called YiTong, which can be purchased from China Telecom’s retail locations.
France Telecom to Deploy Alcatel’s DWDM Optinex System in Pan European Network
France Telecom will deploy Alcatel’s DWDM and SDH equipment for its Pan European and national networks. This equipment will be installed in 40 cities and in 16 countries. The installation of the network has already begun and is due to be completed by 2001. As a turnkey supplier, Alcatel will install and commission the network.
EUROPE
HarvardNet and COLT Telecom to Jointly Develop International Web Hosting Services Network
HarvardNet and COLT Telecom Group. have reached an agreement to coordinate Web hosting and collocation activities under a joint marketing agreement. The agreement will allow the two companies to capitalize on the rapidly growing Web hosting and services market. Leveraging opportunities created by the explosive international growth of the Internet, the two companies will work together to deliver a comprehensive portfolio of hosting services to business and customers and service providers, including collocated, dedicated, and shared hosting services. The agreement between HarvardNet and COLT will involve joint sales and marketing efforts aimed at addressing the needs of customers with business critical web hosting and e-commerce applications.
UPC Unit UPCtv to Launch New Television Channels in Europe
United Pan European Communications NV unit UPCtv will launch seven new special interest television channels across Europe before the end of the year. Extreme Sports and Film channels that were launched in the Netherlands in May will now also be offered in other European countries. The new channels will initially be available on UPC and non-UPC cable networks in the Netherlands, Austria, Belgium and Norway.
Ericsson Begins Global Scale GPRS Mobile Internet Trials
LM Ericsson has begun global scale trials of General Packet Radio Services mobile Internet. It will deliver GPRS systems to more than 45 leading-edge operators in the Americas, Asia Pacific and Europe, for GPRS field trials. GPRS introduces packet data mobile networks and is a vital step in the evolution to third generation mobile networks, fully enabling Internet applications and a range of other advanced data communications services.
Nokia Wins Eur$425 Base Station Order From Omnitel
Nokia Corp. has won an Eur 425 million order from Omnitel Pronto Italia SpA for the supply of base stations and related equipment for an expansion of the operator’s network in Italy. It includes the recently launched Nokia UltraSite site solution which is multimedia compatible.
FIBER OPTICS
E-TEK Dynamics Reports that Net Revenues up 83 Percent, Pro Forma Net Income up 120 Percent
E-TEK Dynamics, Inc. announced financial results for its first fiscal quarter ended October 2, 1999. Net revenues for the first quarter of fiscal 2000 were $60.3 million, up 83 percent from $32.9 million reported in the same period of fiscal 1999. Pro forma net income for the first quarter of fiscal 2000 was $11.6 million, up 120 percent from $5.3 million reported in the same period of fiscal 1999. Pro forma net income per share on a diluted basis for the first quarter of fiscal 2000 was $0.17 compared with $0.09 in the prior years first quarter. Actual net income for the first quarter of fiscal 2000 was $6.7 million, up 27 percent from $5.3 million reported in the same period of fiscal 1999. Actual net income per share on a diluted basis for the first quarter of fiscal 2000 was $0.10 compared with $0.09 in the prior year’s first quarter.
"Today in Telecom" is a publication of Information Gatekeepers Inc. ©1999. 214 Harvard Ave, Boston, MA 02134; Tel: 617-232-3111; Fax: 617-734-8562
Headlines - October 13, 1999
TOP STORIES
CABLE OPTICS
CONFERNECE NOTES (TELECOM ’99 GENEVA)
EUROPE
INDIA
INTERNET/E-COMMERCE
TOP STORIES
Nortel Networks Wins US$150 Million Optical Networking Contract from Cable & Wireless
Cable & Wireless will deploy Nortel Networks open optical networking solutions throughout its US national network linking more than 60 metropolitan areas across the country, an investment of approximately US$150 million which brings Cable & Wireless’ estimated global optical networking business with Nortel Networks to more than US$600 million. In August, as part of a strategic global expansion plan, Cable & Wireless named Nortel Networks as the systems integrator and provider of open optical networking equipment for its European network build. The Cable & Wireless network build will include Nortel Networks’ OPTera LH optical systems which provide industry-leading capacity and open optical interfaces for maximum flexibility and direct connectivity to Internet routers and switches. The OPTera LH can achieve 1.6 terabits per second on a single fiber using Dense-Wavelength Division Multiplexing (D-WDM) to carry streams of light at different wavelengths and enabling greater capacity on backbone networks.
Motorola’s Net Earnings Meet Third Quarter Estimates
Buouyed by strong growth in its chip business and the increasing demand for cellular phones, Motorola Inc.’s third quarter earnings met expectations. The company posted net income for the period ended October 2 of $91 million, or 14 cents a diluted share, compared with $27 million, or four cents a share, in the same period a year earlier. One issue that did hurt the company’s overall earnings was a $994 pretax charge related to Iridium LLC, the beleaguered satellite phone service provider that filed for creditor protection under Chapter 11 of the US Bankruptcy Code. Motorola is a major backer of Iridium.
Intel’s Third Quarter Earnings Fall Short of Expectations
Stung by the effects of falling personal computer prices and product delays, Intel Corp. reported that its third quarter earnings would not meet expectations, but expects results to improve during the fourth quarter. For this quarter, Intel posted net income of $1.46 billion, or 42 cents a diluted share, down 6 percent from $1.56 billion, or 44 cents a share, a year earlier. Revenue was $7.33 billion, up 9 percent from $6.73 billion. Without charges related to acquisitions, the company had profit of $1.90 billion, or 55 cents a diluted share. Industry analysts expected Intel to hit a "whisper number" of 60 cents a share, with revenue of about $7.5 billion.
CABLE OPTICS
AT&T Cable Chief Leo Hindery Delivers Key Note Speech at East Coast Cable ’99
AT&T Cable TV chief Leo Hindery today delivered the keynote address and accept "Operator of the Year Award" at East Coast Cable ’99 presented by the Atlantic Cable Show on Wednesday, October 13 in Baltimore. Hindery recently announced that he would resign as president and chief executive officer of AT&T’s cable unit to pursue other interests.
CONFERNECE NOTES (TELECOM ’99 GENEVA)
Alcatel Launches VDSL Video, Multimedia Transmission System
Alcatel today launched its VDSL system for the high-speed transmission of video and multimedia services over copper phone lines. This move reflects the company’s goal to target the same market in VDSL as in the related ADSL technology market.
Nortel Networks Wins US$100 Million Optical Network Contract from Pangea Ltd.
Start up service provider Pangea Limited has awarded Nortel Networks a contract with an estimated value of US$100 million to provide an optical fiber cable system linking London, Amsterdam, Dusseldorf, Hamburg, Copenhagen, Malmo, Gothenburg, Stockholm, Oslo and Helsinki in Northern Europe. The initial project, entitled Pangea 1, will enable Pangea to provide a single-source, integrated broadband solution for carriers and Internet Service Providers wishing to offer voice, data, video, Internet transmission and leased wavelength services into, within and out of the coverage area. Pangea 1 will link the terrestrial portion (5,000km) of a 6,000km network across the seven cities with self-healing optical fiber rings. The network will initially provide up to 160 Gbps of fully protected capacity providing ring and span switching per single fiber. Under the terms of the contract, Nortel Networks will provide Pangea with a comprehensive selection of solutions including open interface optical connections at 2.5 Gbps and 10 Gbps, OPTera LH, its open optical platform and OPTera Connect, its core optical network platform for bandwidth management of these services.
Nortel Networks Breaks Own ‘Land Speed Record’ Using Light
Nortel Networks broke its own speed and capacity record today by debuting Optical Internet capabilities to carry up to 6.4 Tbps of Internet and other traffic over a single, hair-thin strand of fiber. Commercial availability of Nortel Networks’ scalable 40 to 80 Gbps platform is planned for 2001. The platform will be capable of increasing capacity as high as 6.4 Tbps through DWDM.
e.spire Communications to Deploy Nortel’s OPTera Solution in New York to Boston Fiber Optic Link
e.spire Communications Inc. has turned up a 194-mile long-haul Internet, data and voice network in the US northeast based on Nortel Networks optical solutions. The backbone network connects e.spire’s metropolitan area networks in New York City, Newark, Wilmington, Philadelphia, Baltimore, Washington, D.C., and northern Virginia, creating a highly reliable regional network linking some of the busiest commercial centers in the United States. The network backbone is based on Nortel Networks’ 2.5 Gbps platform with Dense-Wavelength Division Multiplexing scalable to 320 Gbps on a single fiber. The network supports inter-city connectivity of multi-protocol services including private lines, IP, ATM, frame relay and voice traffic, and is monitored through Nortel Networks remote surveillance facility using Nortel Networks’ integrated network management.
Nortel Networks Wins US$100 Million Optical Network Contract from LambdaNet Communications
Germany’s LambdaNet Communications will ride the wave of data explosion in the German Internet market by building cutting-edge, high-speed transport networks for Germany and Europe with solutions from Nortel Networks. The agreement for Nortel Networks fiber optic technology will enable LambdaNet to aggressively compete for customers following the German government’s recently announced national technology plan which aims to have 40 percent of the German population (32 million people) on-line by 2005. LambdaNet’s inter-city network is planned to be in operation by January 2000 linking 21 cities in Germany and is expected to expand to a pan-European network later that year. The network will be centrally coordinated and supervised in Hannover. The contract, estimated to be worth approximately US$100 million over three years, with Nortel Dasa Network Systems, a joint venture between Nortel Networks and Daimler Chrysler Aerospace, follows successful hands-on testing of the equipment in July this year.
EUROPE
3Com Close to Signing Deal to Permit Nokia Corp. to Use Palm Pilot Software
3Com Corp. and Nokia are close to signing a deal that would permit Nokia to license software from its Palm Pilot units to Nokia Corp. It is expected that the two companies will jointly develop a new version of the Palm Pilot operating system for mobile phones. Under such an agreement, Nokia would use a version of the product in some handsets, but Palm would retain rights to license the operating system to other mobile phone handset makers. Such a deal could enhance the unit’s effort to license its operating system widely to other hardware manufacturers in addition to continuing to make its own devices. Nokia would be the second hardware maker to license the Palm operating system after Handspring Inc.
INDIA
vSplash.com Inc. to Offload 30 Percent Stake to US-Based Fund
Umesh Tibrewal, founder of vSplash.com, is planning to sell 20 percent to 30 percent stake in its American subsidiary vSplash.com Inc to a venture capital fund for an undisclosed amount. The American subsidiary would become the marketing arm of vSplash.com Ltd. A formal announcement regarding the strategic alliance is expected within a couple of months.
Cell Firms Seek Lower License Fees and Access Rates
Cellular operators are pushing for lower access charges and license fees and share of the inter-circle revenues, to make up for expected dips in revenue due to the calling-party-pays (CPP) regime. All the cellular operators would get a share called mobile termination charge (MTC) from the premium rates charged on fixed phone subscribers dialing a mobile number. Operators claim that even after the hike in the MTC, it would not negate the effects of CPP. They point out that while they will meet costs at the minimum outgoing rate, they will lose money on incoming calls.
India’s Telecom Industry and DoT Put up Joint Face
The Indian telecom industry and the Department of Telecommunications put up a joint front on October 12 at India Day celebration's press conference to assure the foreign media that India was still an upbeat place for investment in telecom. Telecom Commission chairman, Anil Kumar, said that India is poised for faster growth in telecom despite the hiccups of the past. With a better telecom policy in place, he said that the government would encourage foreign investment in telecom. The government is ensuring representatives from industrial chambers and bodies all emphasized that level-playing field.
Lucent to Review Ties with Indian Partners
Lucent Technologies announced that it was "reviewing" its ties with the Tata group and other Indian partners. Lucent chairman Richard McGinn confirmed such a move. Lucent has a tie-up with the Tata group for manufacturing telephone exchanges and other equipment. Lucent also has alliances with other business firms in the field of fiber cables.
VSNL Gets Ready for Domestic Foray
Videsh Sanchar Nigam Ltd (VSNL) has amended its Memorandum of Association to include a provision for foray into domestic telecom services, particularly long-distance telephony. This move comes after the Department of Telecommunications (DoT) clearance for its entry into this segment. Until this date, VSNL's mandate was only for international telecom services. A similar change is likely to be affected by Mahanagar Telephone Nigam Ltd (MTNL). However, the DoT sources said that the government would take a final decision on the modalities for VSNL and MTNL's participation in the long-distance market, including forming of joint ventures by them, at the time of framing policy.
Shareholders Approve Launch of VSNL’s New Subsidiary VSNL Seamless Services Ltd.
Shareholders of the state-owned Videsh Sanchar Nigam Ltd. have approved setting up of a wholly owned subsidiary, VSNL Seamless Services Ltd., for its Internet and other value-added services. However, its gateway services will not be moved to this arm. The subsidiary has been in the pipeline for the past three years. The VSNL board will meet shortly to approve the terms and conditions of the new subsidiary. The government, too, is expected to give its formal assent to the subsidiary.
INTERNET/E-COMMERCE
Sprint and Deloitte Touche to Create E-Business Alliance
In the effort to grab onto the e-business market craze, Sprint Corp. and Deloitte Consulting have formed a joint alliance to sell electronic business outsourcing services to large and medium-sized multinational companies. Based in Kansas City, MO, the alliance will execute and manage applications including e-commerce, data warehousing, and software packages that join a company’s back-office operations. Neither company would disclose the amount that they were investing in the alliance.
Agency.com to Acquire i-traffic for $30 to $50 Million in Cash and Stock
Agency.com, a web consulting firm, has reached an agreement to acquire i-traffic at an estimated $30 to $50 million in cash and stock. According to those close to the talks, Agency.com is expected to pay mostly with stock, with the remainder to be paid in cash. Agency, which filed for an initial public offering in September, wants to go public as early as November.
"Today in Telecom" is a publication of Information Gatekeepers Inc. ©1999. 214 Harvard Ave, Boston, MA 02134; Tel: 617-232-3111; Fax: 617-734-8562
Headlines - October 12, 1999
TOP STORIES
ASIA PACIFIC
BRAZIL
COMPUTERS
CONFERENCE NOTES (TELECOM ’99 GENEVA)
EUROPE
INDIA
TOP STORIES
AT&T and British Telecom to Step up Expansion Plans for New Global Venture
In the effort to step out from the rubble of other failed telecommunications ventures, AT&T and British Telecom will accelerate their expansion plans for their new global venture, Concert. The venture, which has constructed an Internet-based network in 22 cities in 17 countries, plans to double that reach early next year. In addition, the companies announced at a news conference at Telecom Geneva plans to expand its frame relay service by 50 percent to 60 countries. AT&T’s previous attempt at a global venture, AT&T Unisource, largely failed to deliver and will be dissolved next year. British Telecom had some success with a similar alliance with MCI Communications, but that was terminated following WorldCom’s acquisition of the company. One global venture that is struggling to keep itself afloat is the Global One Venture between Deutsche Telekom, France Telecom and Sprint Corp. However, AT&T executives argue that their alliance with BT will succeed. Concert will own all of the transmission facilities, switches and other equipment on the global network, giving it control over customer service and enabling it to introduce new offerings quickly. The venture is still awaiting the approval of the Federal Communications Commission, but it expects to be operational after receiving it.
Phone.com to Acquire Apion Ltd. for $266.5 Million in Stock
As it continues to expand its European presence, Phone.com, a maker of wireless Internet software, has reached an agreement to acquire wireless technology assets of Apion Ltd. of Northern Ireland for about $266.5 million in stock. Phone.com, which was previously known as Uwired Planet, went public in June. Company shares have since rose more than tenfold, including yesterday’s 14 percent gain. Despite low revenues, the company has licensed its technology to many major telecommunications companies including AT&T, Bell Atlantic and GTE Corp.
ASIA PACIFIC
Daewoo Group’s Foreign Creditors Meet to Make Decision on Debt Freeze
Foreign investors of South Korea’s Daewoo Group will meet on October 22 in Hong Kong, to announce their acceptance or rejection of the struggling conglomerate’s request for a freeze on foreign debt. Foreign creditors’ steering committee met with Daewoo and its international advisers last week, spelling out the prerequisites that need to be included in any debt freeze and workout plan. According to a source close to the talks, if the demands, which include unwinding global transactions after a certain date and giving foreign creditors more say in a workout plan, are not met, the committee will disband and recommend that Daewoo’s 200-plus creditors pursue claims in international courts.
BRAZIL
Schneider Electric to Invest R$10 Million on Second Brazil Plant
Schneider Electric will invest R$10 million to build its second factory in Brazil to increase local production and compete on more equal terms with Siemens AG and ABB Ltd. The company decided to build a second factory in Brazil after January’s currency devaluation increased the cost of imports. It is in the final stages of planning the new factory and although it is still not yet known where it will be located, production is expected to begin in about nine months.
COMPUTERS
Five Computer Companies Launch Alliance to Create Security Standards for PCs
In response to concerns over personal computer security issues, five major computer companies have formed an alliance to develop a common industry standard. The alliance, which include major players such as Compaq Computer Corp., Hewlett Packard, International Business Machines, Intel and Microsoft, will be called the Trusted Computing Platform Alliance. It will address the enhancement of security of PC hardware, operating systems and embedded software, called the basic input-output system. More importantly, the alliance will examine better ways to securely store information on PCs, generation of random numbers for use in encrypting data and electronic signatures to authenticate parties in electronic commerce. By next year, the alliance hopes to create a proposal for a for a security specification that will be openly licensed to the industry.
CONFERENCE NOTES (TELECOM ’99 GENEVA)
Teleglobe Expands European Presence with New Operations in Belgium
Teleglobe Communications Corp. continues to expand its foothold in the European telecommunications market as it secured its 15th European contract to provide carrier-to-carrier voice service in Belgium. In addition, the company could offer Internet access and ATM services to carriers, Internet service providers, content providers and business customers in Belgium.
Algient Technologies Introduces Gigabit/Terabit Router Test System for Internet Scale Simulation
Aglient Technologies, a new company formed with the realignment of Hewlett Packard Company, introduced RouterTester, a multiport, IP-based system for testing the performance of the gigabit/terabit routers that will form a key switching component of carriers’ IP-based voice and data infrastructure. RouterTester, which incorporates multiple packet over SONET interfaces and integrated support for the BGP-4 routing protocol, is a test system capable of performing true Internet-scale simulation, required for development and performance testing of routers operating at high speeds. It can simulate traffic from many thousands of networks of varying sizes, creating traffic with realistic distributions of IP source and destination addresses. Traffic that is characteristic of data, voice or video streams can be generated automatically between many combinations of these networks. Router performance in delivering this traffic is analyzed in real time, providing detailed Quality of Service levels for each type and simulated network source of traffic.
Sonus Neworks’ GSX9000 Open Services Switch Featured in Global Crossing’s VoIP Network Simulation
Sonus Networks will demonstrate their GSX9000 open services switch in a simulation of Global Crossing’s global VoIP network with Lucent’s Softswitch. These systems will form the foundation of Global Crossing’s next-generation VoIP network, which is currently being rolled out in the United States. In July, Frontier Communications, which recently completed its merger with Global Crossing, selected Sonus’ GSX9000 as the exclusive trunking gateway for the carrier’s next-generation VoIP network. This new IP-based network is expected to carry 100 percent of Global Crossing’s US voice traffic by the end of 2002 and also provides Global Crossing with a software services creation platform for the rapid deployment of new services.
Alcatel to Invest US$180 Million in Fiber Optic Operations
At Telecom ’99 in Geneva Alcatel announced that it will invest US$180 million in its fiber optic businesses to meet increased customer demand. The investments include Over $80 million in two new cable ships for installing an burying long-haul underwater telecommunications cables and US$100 million to double capacity at its optronics facility in Nozay, near Paris. Also, Alcatel was awarded a US$84 million initial contract from Pangea Ltd. to deliver two undersea cables across the North Sea, each with a capacity of 3.6 Tbps, forming part of a network linking London, Amsterdam, Dusseldorf, Hamburg and Copenhagen.
EUROPE
Nortel Networks Study Predicts Western European Internet Market to Reach 150 Million by 2005
Western European’s are on the verge of experiencing an Internet explosion that will see the number of online users skyrocket from 38 million today to 150 million within the next six years, according to a study commissioned by Nortel Networks. The explosive growth in Internet usage in Western Europe is among the many key findings of the study conducted by independent telecommunications consultant Ovum for Nortel Networks. John Roth, president and chief executive officer announced the results in Geneva, Switzerland, on October 12, Nortel Networks, during Telecommunications ’99. An explosion in demand for services will lead to a massive increase in deployment of Internet protocol technology and many new services and applications for consumers and businesses throughout Europe. Growing competition and deregulation will help drive the adoption of these technologies.
General Electric Co to Change Name to Marconi PLC
Britain’s General Electric Co. PLC will change its name to Marconi PLC following the planned merger of Marconi Electronics Systems business with British Aerospace. The company expects that Marconi PLC will be listed on the London stock exchange and will be a constituent of the FTSE-100 index.
Ericsson and Sonera Develop Secure Signature for e-commerce Using WAP Phones
LM Ericsson and Sonera Corp.’s units SmartTrust have jointly developed a secure digital signature for e-commerce using WAP telephones. To date, security issues have been considered one of the main obstacles to the successful deployment of wireless e-commerce services. Sonera SmartTrust provides public key infrastructure based security solutions for mobile commerce and the new product for WAP phones is based on PKI digital signatures and 1024 bit RS data encryption.
Ericsson Predicts it will have 100 Million Users by 2004
Ericsson Telefon has raised the forecast of its mobile phone services from 50 million users to 100 million of IMT-2000 mobile phones by early 2004 and around 120 million by the end of that year. Further, it expects the total number of mobile telephony users in 2004 to be 1.1 billion, up from 1 billion in its previous forecast.
Alcatel Space Wins $90 Million Satellite Order from US DBS Industries
Alcatel Space has been awarded a US$90 million from DBS Industries to serve as prime contractor for DBSI’s six-satellite, low-earth orbit data communications system. The unit, which is 51 percent owned by Alcatel and 49 by Thomson CSF, will also participate in the project by making an investment of US$5 million in DBSI. Under the terms of the contract, Alcatel Space will be responsible for all elements of the system, including satellites, space segment control system, the ground communications network, the communication center, and the user terminal development. The contract calls for the initial launch of three satellites the following December. Ground-based data terminals, which will transmit information incorporating CDMA modulation technology, will also be designed under the Alcatel Space contract.
INDIA
Birla AT&T Lines up Expansion Plans
Birla AT&T Communications, the cellular service provider for Maharashtra and Gujarat circles, is looking at options to fund its expansion plans. officials said that this move would not be affected by the accumulated losses of the company. Birla AT&T is expected to finalize the modalities and quantum of funding by January 2000. The company is neck deep in trouble, with its equity almost eroded, but the officials are confident that its problems would disappear with the New Telecom Policy and turnaround in economic outlook of the country.
Zip Telecom's Value Pegged at INR 1.3 Billion
Zip Telecom, which offers payphone services in Maharashtra - has been evaluated to the tune of INR 1.3 billion by a US consortium of venture capitalists. The company has signed up agreements with a group of strategic international investors led by Anderson, Weinroth Capital Corp of New York, who acted as investment bankers and also acted as principal investor. Zip Telecom will now become a 100-per cent subsidiary of Z-Tel - headquartered in Mauritius. As part of the agreement, the investment group will bring in equity investment amounting to $10 million and $9.10 million as outstanding options and warrants. The company is planning to operate in US, Singapore, West Asia, Europe and Latin America.
VSNL Plans US Listing by 2000
Videsh Sanchar Nigam Ltd. (VSNL) is mulling listing in the US stock market by the end of 2000, with an objective of raising funds to part-finance its INR 73-billion investment outlay for the next five years. The company is still undecided on the NASDAQ or NYSE listing VSNL is at present involved in preparing its accounts according to the disclosure norms under the GAAP, and officials say that it will take at least a year to complete all formalities with the Securities and Exchange Commission.
"Today in Telecom" is a publication of Information Gatekeepers Inc. ©1999. 214 Harvard Ave, Boston, MA 02134; Tel: 617-232-3111; Fax: 617-734-8562
Headlines - October 11, 1999
TOP STORIES
ASIA PACIFIC
CHINA
CONFERENCE NOTES (TELECOM ‘99 GENEVA)
EUROPE
FIBER OPTICS
INDIA
TOP STORIES
Global Crossing to Acquire Racal Telecom for US$1.65 Billion
As its looks to expand its strategy in the European telecommunications sector, Global Crossing Ltd. has reached an agreement to acquire Racal Telecom, a group of wholly owned subsidiaries of Racal, for US$1.65 billion in cash. With the acquisition of Racal’s telecommunications operations, Global Crossing would gain an additional 7,300-km of fiber optic network capacity in the UK, including a fiber ring around London. In addition, the company would gain a unit that currently employs 1,200 people, including sales and marketing staff. This purchase is the latest in a string of high-profile transactions made by Global Crossing. The company recently announced a joint venture with Microsoft Corp. and Softbank Corp. of Japan to construct an advanced phone network in Asia, and acquired the undersea cable operations of Cable & Wireless PLC for approximately $725 million. In a separate agreement, the company formed an alliance with Alcatel to manage its Pan European Crossing Network. Under the terms of that agreement, Alcatel will provide personnel for its London network operations center and maintain and repair traffic nodes and cable routes.
IBM to Cut 1,000 Jobs from its PC Division
As a result of $1 billion loss last year, International Business Machines Corp. will eliminate 500 to 1,000 jobs in its personal computer division. The company said 10,000 people work in its Personal Systems Group out of IBM’s total work force of 290,000. IBM reported that most of jobs, which were in marketing, were primarily in New York, North Carolina and Texas. One of the factors that hurt the division was inefficiencies in manufacturing and sales had hurt PC sales. In the first half of this year, the PC operations reported a pretax loss of $242 million, down from a loss $894 million in 1998.
ASIA PACIFIC
Nokia to Launch New 8210 Handset in Europe and Asia
Nokia Corp. will launch its new 8210 handset in the European and Asian markets next month. Weighing just 79 grams, the new handset operates on both GSM 900 and GSM 1800 frequencies. Talk time is up to 3 hours 20 minutes and standby time without recharging is 150 hours.
CHINA
Lucent Technologies and Konka Sign Mobile Phone Production Deal
Konka Group. has signed an agreement with Lucent Technologies under which the two companies will cooperate in the production of advanced technology mobile phones. The cooperation will facilitate the production of mobile phones using high-speed digital transmission, advanced language and video technology and extra large fingertouch screens. Chen Weirong, general manager of Konka, said that the company intends to achieve a share of the domestic mobile phone market as large as its share of the domestic television market. Lucent said the company chose to cooperate with Konka because it has the ability to develop new technology, and has an important position in the Chinese market and strong sales and production capacity.
Ericsson Wins US$55 Million Contract from China Unicom
Ericsson Telefon AB has won a $55 million contract for third phase of the expansion of China Unicom’s GSM network in the Sichuan province. Under the terms of the agreement, Ericsson will supply wireless datacom solutions enabling China Unicom to offer its customers services in line with growing new user demands, and will also, at a later date, supply further solutions for enhancing speeds of datacom services over the mobile network. The expansion will be completed in February 2000. During the year, Ericsson has signed over nine contracts with China Unicom.
Ericsson Wins US$102 Mobile Expansion Contract from Shandong Communications Corp.
Ericsson has signed a US$102 million contract to expand Shandong Mobile Communications Corp.’s GSM network. In addition to the contract win, Ericsson has concluded a Memorandum of Understanding with Shandong MCC for additional purchase of solutions for offering high-speed mobile datacom services, and radio equipment providing an additional capacity of more than 500,000 users. Installations within the contract will increase the capacity of Shandong MCC’s GSM network in the province to 3.8 million subscribers upon its completion in April 2000.
CONFERENCE NOTES (TELECOM ‘99 GENEVA)
Destia and Viatel Launch Joint Offering: One World, One Rate Club
Destia Communications Inc. and Viatel Inc. jointly announced at Telecom ’99 in Geneva a new product called the "One World, One Rate" Club. Membership is open to businesses and residential customers in Belgium, Canada, France, Germany, The Netherlands, Switzerland, the UK and the United States. Under the new plan, club members will be able to make domestic and international long-distance calls within and to the eight countries, for only five cents per minute. The new Club rate is scheduled to be rolled out on January 1, 2000. However, customers may begin signing up now and will be switched automatically to the new service on January 1. At that time they will charged only five cents per minute for any call placed within and to any country in the combined Viatel-Destia network, including Belgium, Canada, France, Germany, Switzerland, The Netherlands, the UK and the US. It will also apply to calls to Hong Kong and Sweden.
ADC Telecommunications Redefines Wide-area Network Access in Europe
At the Telecom 99 Conference in Geneva, ADC Telecommunications Access Products Division is now offering E1 products for ServicePoint, its innovative line of service delivery access devices. The ServicePoint service delivery platform centers on the concept of termination, monitoring and control. The ServicePoint portfolio of products allows service providers and enterprise network managers to add functionality as they need it through software downloads. The ServicePoint E1 2041 includes ServicePoint monitoring software and the ServicePoint E1 2141 features an add/drop port for connecting routers and voice traffic to integrated service offerings. Both models have an embedded Simple Network Management Protocol (SNMP) agent and local Ethernet port, as well as in-band access options. The ServicePoint E1 2041-tm is priced at $2495 and the ServicePoint E1 2141-tm Add/Drop is priced at $2995, with availability in Q1 2000.
ADC Delivers New Optical Fiber Management Systems Designed for 600mm Environment
ADC Telecommunications Inc. has released a new family of fiber management products for protecting, managing and enhancing your valuable optical network. The family includes ETSI Next Generation Frame (NGF) products, the new OMX-600 fiber frame, and the FL2000(TM) family of panel products. The NGF-600 frame is a high-density frame ideal for applications where the front and rear of the frame are accessible and maximum density is required. Providing superior protection, management and optical network enhancement, the NGF is designed for high-density requirements. The NGF can terminate up to 1172 fibers in a 600mm x 600mm footprint. Superior cable management makes the NGF-600 the answer where maximum cable protection and accessibility are necessary in a high-density solution.
EUROPE
Eight Mobile Telecommunications Companies Form Joint Technology Alliance
Eight major mobile telecommunications companies have launched a joint technology alliance that will facilitate common technical standards to ensure that equipment and services from different companies work together to support wireless devices. Members in the alliance include British Telecommunications, the wireless unit of AT&T of the US, Deutsche Telekom MobiNet, France Telecom, the wireless unit of NTT, Singapore Telecom Mobile, SK Telecom and Vodafone AirTouch.
Belgacom’s Internet Tariffs Face Competition Complaint from Six Rivals
Belgacom SA faces a complaint over its latest Internet tariffs from six rival operators, including Versatel, Mobistar, KPN Belgium, British Telecommunications PLC, Telnet and WorldCom. The rival has made their complaint to Belgium’s competition council and said Belgacom is abusing its dominant position in the market.
Mobilcom to Acquire Fixed-Net Operator Telepassport for 50 Million DM
MobilCom AG plans to acquire fixed-net telecommunications company Telepassport AG for about 50 million DM in stock. Talks are close to being concluded, and Telepassport founder Georg Hofer will leave the company once it is bought out.
Telefonica to Construct Complex to House Central Offices
As it looks for solutions to cut costs, Telefonica SA will build a new complex in Madrid to house its central offices. This new facility will enable the company to save 4 billion ptas per-year in rentals. The complex, which will be 271,000 square meters and will accommodate 10,000 employees, will be able to reduce the number of buildings it currently occupies in Madrid to 20 from 76.
Poland’s Telecommunications Ministry Launches Tenders for Offers to Compete with TPSA
Poland’s telecommunications industry launched a tender for offers to select the three companies to compete with state-run TPSA on inter-city services beginning in 2000. The choice of companies will be made at the end of the year or at the beginning of 2000 at the latest. According to the terms of the offer, interested companies need to acquire the necessary documentation by Wednesday, October 13 and submit a bid by October 25. TSPA will also lose its international calls monopoly from January 2003 as part of Poland’s efforts to gain entry to the EU.
Telecom Italia to Raise 10 Trillion Lire from Property Stake Sales
Telecom Italia SpA plans to raise 10 trillion lire from divesting various property stakes. Through this process, it intends to free up 10 trillion lire that is currently invested in property for investments in the core business of telecommunications. Chief executive officer Roberto Colaninno said Telecom Italia does not want to directly sell the property assets, but will look for a partnership where Telecom Italia will maintain a 30-40 percent stake. The 28 trillion lire debt of Tecnost SpA is neither dangerous nor problematic because with the Telecom Italia and TIM SpA stakes held by Tecnost the company can count on a cash flow of 20 trillion lire. A possible future sale by Tecnost of a 9 percent stake in TIM would instantly lower Tecnost’s debt to 18 trillion from 28 trillion.
FIBER OPTICS
MP Telecom Fiber Optic Network Expansion to Link 75 Percent of Minnesota
MP Telecom, a wholly owned subsidiary of Minnesota Power Inc., is expanding its network through construction of a 208-mile fiber optic route into southern Minnesota. The new fiber route will link Winona, Rochester, Austin, Albert Lea, Owatonna, Faribault and Minneapolis. This expansion project is part of the company’s overall plan to tie its fiber optic network to Minneapolis St. Paul, Wadena and Eau Claire, WI. MP Telecom is currently holding discussions with larger wholesale communications customers interested in securing capacity along the new southern route. It will offer capacity on the fiber optics network to incumbent and competitive local exchange carriers, wireless companies, ISPs, national long distance carriers and large commercial users of point-to-point fiber optic bandwidth. Currently, the company’s fiber network interconnects the communities of Duluth, Grand Rapids, Hibbing, Virginia, Eveleth, Ely, Brainerd and St. Cloud.
Berk-Tek’s Upgraded GIGAlite Fiber will Extend Gigabit Ethernet Installation Support Distance to 600 Meters
Berk-Tek has upgraded its GIGAlite multimode fiber used in its fiber optic cables to offer users the ability to support Gigabit Ethernet at installation distances of up to 600 meters using 62.5 micron GIGAlite fiber. The fiber has been specifically designed and manufactured to take advantage of VCSEL technology. GIGAlite fiber offers an improved index profile, which was achieved through minimizing glass imperfections during the fiber manufacturing process. It will continue to specify the Overfilled Launch bandwidth for GIGAlite fiber at 500 MHz km in both the 850 and 1300nm windows.
Alcatel to Help Manage Global Crossing’s Pan European Network
Global Crossing has agreed to partner with Alcatel in managing the operation and maintenance of its Pan European Crossing network. Global Crossing’s Pan European Crossing, an 11,000 km fiber optic communication system, will connect over nine European countries and will deliver high-capacity transmission service between 24 major European cities, linking those cities with the worldwide Global Crossing network. Under the terms of the agreement, Alcatel will build a dedicated team of skilled O&M personnel, who will apply strict operation and maintenance methods and procedures. It will be responsible for working with Global Crossing’s network operation center in London to monitor the smooth operation of the network, and will perform and mange repair maintenance at PEC’s 27 point-of-presence and traffic nodes and along the cable routes.
INDIA
DoT Scales down Proposed Launch of Cellular Services
The Department of Telecommunications (DoT) has scaled down its proposed launch of its cellular services to about 10 cities from the earlier proposed 17 cities. It is also reviewing the choice of technology for its services. This move comes in the wake of some government officials expressing doubt over the commercial feasibility of the project. DoT has now excluded about 8 cities in the eastern and northern states of the country in the revised proposal, due to the poor customer response to the existing cellular service providers. As per the re-drafted plan, the cellular project will be implemented in two phases within six years. The fund allocated to the mobile project remains at the earlier INR 33.83 billion, as a more efficient network will cost more.
Satyam Infoway Places Shares with Sterling Commerce
Satyam Infoway has placed 481,000 equity shares with Sterling Commerce, the US technology firm, for US$5 million. The transaction was completed in September 1999. Satyam has used the funds for general corporate purposes, primarily the repayment of its debt. The company had signed a five-year agreement with Sterling Commerce in February 1997 for rights in India to market, provide, sub-license, install, facilitate, maintain and support the electronic commerce network services and other products developed by the US company.
Bharti to Acquire Crompton Greaves Stake in SkyCell
Crompton Greaves is in advanced stage of negotiations with Bharti Enterprises to sell its 40.1 per cent equity stake in Chennai cellular service provider SkyCell Communications for around INR 2.55 billion. Other stakeholders in SkyCell are DSS Enterprises, Bellsouth and Millicom of the US. DSS holds 10.5 percent stake, while Bellsouth and Millicom hold 24.5 per cent equity in the venture.
Foreign Investment Promotion Board will Soon Clear Hughes Equity Recast
The equity recast of Hughes Escorts Communications Ltd. (HECL) is set to be cleared by the Foreign Investment Promotion Board (FIPB), with the Department of Telecommunications (DoT) now ready to give the green signal. HECL holds a license to operate VSAT services in India. The approval will clear a 49:49:2 equity structure with both Escorts and Hughes holding equal stakes and IndOcean holding the remaining two per cent. The green signal from the DoT comes after much dilly-dallying over the issue since August 1999.
Usha Martin’s Cellular Unit Awarded Permanent Bandwidth from DoT’s Wireless Planning Committee
Usha Martin Telekom Ltd. (UMTL), which operates the Command cellular service, has become the country's first mobile service operator to receive a permanent bandwidth from the Department of Telecommunication's (DoT) Wireless Planning Committee (WPC). The WPC issued a permanent-operating license for the allotted bandwidth to UMTL on October 6.
Fatehabad becomes the first fully wired district
Fatehabad has become the first-ever district in the country to have a computer network enabling it to transfer a government data file from its remotest corner to its headquarters. The technological advancement is a brainchild of Fatehabad Deputy Commissioner V Raja Sekhar. The wide area network uses a dual server to link district headquarter with all sub-divisions, villages, municipal committees and district offices, located at each of the 22 sites in the district. The district offices are expected to get Internet access sooner or later.
"Today in Telecom" is a publication of Information Gatekeepers Inc. @1999. 214 Harvard Ave, Boston, MA 02134; Tel: 617-232-3111; Fax: 617-734-8562 |
