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MCI
WORLDCOM – SPRINT MERGER HIGHLIGHTS
MCI WorldCom and Sprint announced plans for the largest
corporate merger to date – a mega-deal valued at $129
billion ($115 billion in equity and $14 billion in debt and
preferred stock). Key
drivers for MCI WorldCom's acquisition of Sprint include the
operational savings of a combined network (estimated at $1.9
billion in 2001) and MCI WorldCom's entrance into the fast
growing mobile telephony business.
Sprint PCS has 4 million mobile customers and an annual
growth rate last reported at 177%. The combined company would
be named WorldCom. Its
broadband strategy would be to build DSL facilities and fixed
wireless access networks using the combined companies’
nationwide MMDS spectrum.
Sprint will transition away from its Global One venture
with Deutsche Telekom and France Telecom. http://www.wcom.com/cgi-bin/pr/display.pl?cr/19991005
MCI WorldCom, October 5, 1999
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MCI
WORLDCOM AND SPRINT'S DSL + MMDS ACTIVITIES
In July, MCI WorldCom reached more than 1,000 Points
of Presence (PoPs) in its DSL network deployment, giving it a
presence in 22 metro areas across the US.
At the time, MCI WorldCom said it would bring its count
of DSL PoPs to 1,500 by year-end and to 2,000 by the end of
next year. MCI
WorldCom has also committed to purchase 100,000 lines of
DSL-based services from Rhythms NetConnections to supplement
its own network.
In April, MCI WorldCom acquired CAI
Wireless Systems for its MMDS licenses in Boston, New York
City, Long Island, Philadelphia, Washington DC, Rochester,
Albany, Baltimore, Buffalo, Hartford, Norfolk/Virginia Beach,
Pittsburgh, Providence and Syracuse.
Earlier this
year, Sprint purchased Videotron USA (a subsidiary of
Montreal's Le Groupe Videotron), People's Choice Television
and American Telecasting Inc. for their MMDS broadband
wireless licenses. The
acquisitions were expected to provide Sprint ION with a
geographic footprint covering 24.2 million US households.
The acquired licenses covered the following cities:
Albuquerque, Chicago, Cincinnati, Columbus, Denver, Detroit,
Greenville (SC), Houston, Indianapolis, Las Vegas, Milwaukee,
Phoenix, Portland, Salt Lake City, San Francisco, San Jose,
Seattle, Spokane, St. Louis, the Tampa Bay area, Toledo and
Tucson.
Sprint is
also building its own DSL facilities in 35 cities and recently
activated its first DSL network in Charlottesville, VA.
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FCC
DESCRIBES MERGER AS SURRENDER
FCC Chairman William Kennard
described the proposed MCI WorldCom + Sprint merger as a
"surrender," saying the parties will have to show
how consumers would be better off. http://www.fcc.gov/Speeches/Kennard/Statements/stwek959.html
FCC, October 5, 1999
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INTEL
ACQUIRES IPIVOT FOR $500 MILLION, ITS 8TH
NETWORKING ACQUISITION THIS YEAR
Intel plans to acquire privately held IPivot, a start-up
offering network appliances for eCommerce sites, for $500
million in cash. IPivot
offers two product lines:
intelligent traffic management devices that accelerates
SSL processing operations on secure Web servers; and
Multi-Site Directors, which ensure that web hits are passed to
fastest responding web server.
IPivot's
Commerce Director 8000 traffic management device regains the
speed lost by servers processing secure transactions by
delivering up to 150 times faster SSL processing.
By using proprietary technology to perform
cryptographic processing and key management transparent to the
server, the Commerce Director 8000 can support up to 600 SSL
connections per second. The
device also combines Layer 4 through 7 application/content
awareness to speed up response times and eliminate error
messages for secure transactions. A smaller version of the product is available.
IPivot's
Multi-Site Director 9000 enables geographically redundant
sites or virtually redundant sites within the same data
center. All
servers connected to the Multi-Site Director 9000 are allowed
to respond to a user request. The content from the one that
responds fastest is passed through to the user and the others
are ignored.
Intel
plans to sell the IPivot equipment directly to OEMs and
through its Internet Service Provider (ISP) channel program.
IPivot was founded in May 1997, with $4.2 million in
first round venture funding from Enterprise Partners and Doll
Capital Management. The
company is based near San Diego, California.
http://www.intel.com/pressroom/archive/releases/Cn100599.htm
http://www.ipivot.com/
Intel, October 5, 1999
In
March 1999, IPivot announced a global OEM partnership
agreement with Nortel Networks.
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INTEL'S
RECENT NETWORKING ACQUISITIONS
* IPivot, network
appliances for eCommerce sites, October 1999, $500 million in
cash
* the Telecom Component
Products (TCP) division of Stanford Telecommunications,
silicon components for cable modems and head-end equipment,
September 1999, undisclosed cash
* Olicom A/S's development
group in Denmark, intellectual property and engineering
team focused on LAN solutions, September 1999, price not
disclosed
* NetBoost,
hardware/software accelerator for policy-based
networking, September 1999, price not disclosed
* Softcom MicroSystems,
network access processor designed for
full OC-12 cell rate performance for 64 byte packets,
July 1999,
price not
disclosed price
* Dialogic Corp.,
computer telephony software, network interfaces
and media processing boards that run on Intel-based servers,
June 1999, approximately $780 million.
* Level One Communications,
a developer of LAN/WAN silicon devices,
March 1999, about $2.2 billion in stock.
* Shiva, remote access
and VPN products, October 98, $185 million in cash
In September, Intel unveiled a
major initiative to increase its presence in the networking
silicon business through an Internet Exchange (IX)
Architecture that could be applied to a range of core and edge
networking devices. Intel
also established a $200 million venture fund for network
communications.
Last month, Intel Online
Services commenced operations at its first two Internet
service centers -- a major production facility in Santa Clara,
California and a development facility in Folsom, California.
Intel is also building hosting centers in Virginia, the
UK and Japan.
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UNIVERSAL
SERIAL BUS (USB 2.0) SPECIFICATION TO DELIVER 360 TO 480 MBPS
PERFORMANCE
The next generation universal serial bus specification (USB
2.0) is expected to deliver performance 30 to 40 times faster
than the existing USB. The
target speed is in the 360 to 480 Mbps.
A USB 2.0 Specification Draft will be released next
week by the USB 2.0 Promoter Group, which consists of Compaq,
Hewlett Packard, Intel, Lucent, Microsoft, NEC and Philips. http://www.intel.com/pressroom/archive/alert/US093099.htm
http://www.usb.org/
Intel, October 5, 1999
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MICROSOFT
SELECTS EQUANT'S ATM NETWORK FOR UK, S. AFRICA, MIDDLE EAST
Equant was awarded a one-year contract to provide ATM and
Frame Relay connections between Microsoft's locations in the
UK, South Africa and the Middle East.
ATM service will initially be at speeds up to 3 Mbps
peak cell rate (PCR) and will be implemented by Q4.
Equant launched its global ATM network in May with
service to 42 countries.
http://www.equant.com/home.html
Equant,
October 5, 1999
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NORTEL
SIGNS OEM AGREEMENT FOR PROMATORY'S MULTISERVICE DSL ACCESS
SYSTEM
Nortel Networks signed an
OEM agreement covering the resale of Promatory Communications'
Intelligent Multiservice Access System (IMAS), which combines
multiple DSL transmission types with ATM switching in a single
box. Promatory's
IMAS aggregator ATM-standard QoS levels traffic management and
policing capabilities, which could be used for delivering
voice and video over secure DSL connections.
It supports up to 128 individually QoS-definable
virtual circuits per port, enabling a carrier to deliver the
appropriate transmission bandwidth for different application
types and service levels. ADSL, SDSL, IDSL, and G.Lite line
cards are currently offered.
The solution will be marketed at ILECs and CLECs as
part of Nortel Networks' access portfolio, which also includes
its Universal Edge 9000 Integrated Access Platform, 1 Meg
Modem and the Shasta 5000 Broadband Service Node (BSN).
Promatory Communications is a start-up based in
Fremont, California. http://www.promatory.com
http://www.nortelnetworks.com
Nortel Networks, October 5, 1999
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CITIZENS
COMMUNICATIONS SELECTS PAIRGAIN'S AVIDIA FOR LONG REACH ADSL
Citizens Communications', a telecommunications
provider serving one million rural and suburban customers in
13 states, selected PairGain Technologies' Avidia System for
its ADSL deployment. The
Avidia system is a multiservice platform (G.Lite and full-rate
ADSL) based on a distributed ATM switching fabric that
provides adaptation for IP traffic.
The system supports SDSL, HDSL2, DS1 and IP voice
services, in addition to ATM over ADSL and Ethernet frames
over SDSL. PairGain
said its system features superior reach, more than three times
greater than comparable products, with capacity of 1,296 ports
in a seven-foot bay. Financial
terms were not disclosed. http://www.pairgain.com/WHATS_NEW/nw991005.html
PairGain, October 5, 1999
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N.E.T.
ENTERS INTO STRATEGIC PARTNERSHIP WITH TOYOCOM
N.E.T. announced a strategic alliance with Toyo
Communication Equipment Co., a Japanese supplier of wireline
and wireless communications system, focusing on the
distribution of N.E.T.'s Promina 800 multiservice platform and
Promina 4000 ATM switch. http://internet.net.com/corporate/releases/pr99/pr3399.html
N.E.T., October 5, 1999
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FORMER
AT&T VP JOINS INTEL ONLINE SERVICES
Dr. Dalibor F. Vrsalovic was named Intel's chief
technology officer and vice president of engineering for all
Internet-related activity within Intel's New Business Group,
including Intel Online Services. Most recently, Dr. Vrsalovic was vice president of Internet
technology at AT&T. http://www.intel.com/pressroom/archive/releases/Cn100499.htm
Intel, October 5, 1999
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PLANS
ADVANCE FOR 640 GBPS AUSTRALIA-JAPAN CABLE
Telstra, Teleglobe (Canada) and Japan Telecom agreed
to continue with planning activities for a 640 Gbps undersea
cable system between Australia and Japan. Forty additional
telecommunications companies are interested in the proposed
cable, which could be ready for service in 2001. A final decision to proceed is expected later this year.
Telstra. October 5, 1999
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A Daily Journal For Broadband Networking
Copyright 1999 ATM News Inc.
All Rights Reserved. ISSN 1084-2438
News sources are listed for your reference.
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Copyright 1999 ATM News Inc. All Rights Reserved. ISSN 1526-1778
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