Telecommunications & Networking Report
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Telecommunications & Networking Report
1. 23-Sep-99: “Free Web Services Challenge AOL’s Dominance” - Internet business analysts generally are not yet convinced of the viability of the free web service business model for bring profitable. None-the-less, most agree that the free access will probably take a significant chunk of AOL’s market share before running out of investor’s money.
2. 23-Sep-99: “Visitalk.com Builds White Pages for Web Phone Calls” - Visitalk.com has unveiled plans to simplify the routing of phone calls over the Internet. They will provide a directory service which will provide subscribers with a unique 12 digit Internet phone number. The directory will capture user’s current IP address and update their database, serving as a switchboard for Internet phone calls which are routed over IP. This solves a major problem with the fact that IP addresses change for users as they move from computer to computer.
3. 23-Sep-99: “Cisco to But Software Maker for $325 Million” – Cisco Systems agreed to acquire WebLine Communications, a software maker producing e-mail routing and collaborating software. WebLine is to be assimilated into Cisco’s Applications Technology Group. This was Cisco’s 12th acquisition this year.
4. 24-Sep-99: “Firm Agrees to Purchase Cable-Modem Technology” – Intel agreed to purchase the cable modem technology of Stanford Telecommunications, Inc. The deal puts Intel face to face in the marketplace with Broadcom Corp., which currently holds the majority market share for cable modem chips.
5. 24-Sep-99: “Qualcomm Pact Targets Wireless Network Products” – Lucent Technologies signed a development agreement with Qualcomm to product wireless networking equipment. Qualcomm will give its CDMA technology, including chips and software to Lucent. Lucent plans to have trial systems utilizing the technology in place next year.
6. 24-Sep-99: “MCI Worldcom, Sprint Ponder Merger” – The world’s second and third largest long-distance carriers are in talks are in talks over a possible merger. The deal would give MCI it’s only nationwide wireless network. An obvious stumbling block over such a large telcom merger would be close scrutiny by regulators. It is also expected that regional Bell companies may soon have permission to compete in the long distance market as well.
7. 24-Sep-99: “Earthlink and MindSpring to Merge, Forming No. 2 Internet Access Firm” – This deal makes the new Internet Provider second only to AOL. The combined company will have 3 million subscribers, still a far cry from AOL’s 18 million, but none-the-less a viable competitor.
8. 27-Sep-99: “Teledesic ‘Sky Internet’ May Start Sooner” – Teledesic chief Craig McCaw is attempting to raise funds for his planned ‘Sky Internet.’ However, McCaw has also been exploring partnerships with other wireless providers including Motorola, Spaceway, and Hughes electronics, to implement a smaller scale version of their planned system to prove viability.
9. 27-Sep-99: “Microsoft Corp. Agrees to Invest In Net Start-Up” – Microsoft agreed to invest $15 million in Akamai Technologies Inc. Akamai provides services which focus on speeding the downloading of web pages. As part of this agreement, Akamai will develop a version of it’s software to run on Windows NT, as opposed to it’s current Unix based versions.
10. 28-Sep-99: “Maker of Voice Software for the Web Is Acquired” – Mpath Interactive Inc. acquired Resounding Technology to strengthen its position as a provider of Internet voice software. Resounding Technologies’ Roger Wilco software had been very successful in providing Internet voice chat.
11. 4-Oct-99: “BellSouth Makes Bid to Acquire Sprint” – BellSouth made a bid to purchase wireless provider Sprint as Sprint & WorldCom came closer to closing their deal. Spring is expected to go with the WorldCom offer, even though the BellSouth offer if more lucrative. Regardless, either acquisition would face regulatory issues.
12. 4-Oct-99: “Paul Allen is Investing $1.65 Billion In Telecommunications Firm RCN Corp.” – RCN is planning to use the investment to speed development of its high-speed fiber optic network. RCN is one of several companies known as competitive local exchange carriers (CLEC’s) trying to take a share of the local telephone business.
13. 5-Oct-99: “Big Landlords Are Joining Telecom Fray” – Eight of the largest office space landlords are joining venture capitalist Kleiner Perkins Caufield & Bryers to form a new company, Broadband Office. The company is to provide high speed Internet access to it tenants.
14. 6-Oct-99: “Novell Plans to Create Repository for Information on Internet Users” – Novell brought online its new service called Digitalme, aimed
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American brands, Bell System, New media, Broadband, Videotelephony, Telecommuting, Nortel, Sprint Corporation, Internet, Verizon Communications, Cisco Systems, EarthLink
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