ECHOSTAR PROPOSES MERGER WITH HUGHES TO CREATE COMPETITIVE
VIDEO/BROADBAND PROVIDER
EchoStar
Communications launched a stock-for-stock bid for Hughes
Electronics. If successful, the merger would combine the
two largest providers of direct satellite TV service in the
US. Hughes operates the DirecTV network and has over 10
million subscribers. EchoStar operates the DISH network and
has over 6 million subscribers. EchoStar said a merger
would create "the only fully competitive alternative to US
cable/broadband providers." EchoStar said a combined
company could lower its overhead by reducing programming and
distribution costs as a result of a larger subscriber base
and economies of scale. EchoStar has been discussing the
merger proposal with representatives of both
Hughes
Electronics and General Motors (Hughes’ parent company) for
the past several weeks, but due to an impasse in the
negotiations has now decided to make its proposal directly
to Hughes’ shareholders.
http://www.dishnetwork.com
http://www.hughes.com/home/default.xml
August 5, 2001
- Last
month, EchoStar announced plans to invest an additional
$50 million in cash in StarBand, increasing its equity
stake to 32%. EchoStar’s ownership will further increase
to 60% upon commencement of the construction of StarBand's
next generation satellite. In March, EchoStar and
StarBand signed a three-year distribution agreement under
which DISH dealers are selling the two-way StarBand
satellite Internet service both as a bundled offering with
DISH Network programming and as a stand-alone, high-speed
Internet service.
-
EchoStar also holds a minority equity stake in WildBlue
Communications (formerly iSKY), a service provider
planning to launch a next generation Ka-band satellite
service for the Americas. WildBlue plans to offer
always-on Internet access with downloads speeds of 3.0
Mbps and up to 400 Kbps upstream. A first satellite (built
by Space Systems/Loral) serving the US and Canada is
expected to launch in early 2002.
-
Hughes recently added a satellite uplink capability to its
DirecPC satellite Internet access service. The new
DirecPC Satellite Return system provides uplink speed of
up to 128 kbps and a downlink speed of up to 400 kbps.
The system requires a new DirecDuo antenna, which provides
broadband Internet access as well as access to more than
225 channels of DIRECTV programming. A major marketing
campaign for broadband-by-satellite services for
businesses and consumers was launched last month. Hughes
has alliances with a number of service providers,
including AOL, EarthLink, Juno and Pegasus. As of June,
Hughes’ DirecPC satellite service (with landline modem
return) had 116,000 subscribers. By the end of 2002
Hughes is also planning to launch Ka-band satellites for
advanced, two-way coverage across North America.
- Last
week, Hughes
introduced a new Teleworker Service using its DIRECWAY
satellite access system. The service package offers
business-class IP
connectivity and enhanced networking capabilities,
including secure virtual private network (VPN) technology
and the ability to deliver corporate video content. The
service is available now to corporations nationwide.
AGILENT
AND CORNING CABLE PUSH FOR PARALLEL-OPTICS
Agilent
Technologies and Corning Cable Systems are pushing for the
faster adoption of parallel-optics technology as a high
density interconnect between terabit switches and routers,
server to server backplane interconnects, and low-cost
SONET/SDH OC-192 very short reach (VSR) connections. The
companies are working together to provide joint customers
with access to Corning Cable Systems' passive optical
technologies and Agilent Technologies' active
parallel-optics modules. In addition to aiding in the
deployment of Corning InfiniCor multimode fiber and 30 Gbps
optical modules, Corning Cable Systems and Agilent will
jointly market and support parallel-optics solutions.
http://www.agilent.com/view/paralleloptics
http://www.corningcablesystems.com/
Agilent Technologies, August 3, 2001
VITESSE ANNOUNCES AVAILABILITY OF INP FOUNDRY SERVICES
Vitesse
will offer Indium Phosphide foundry services for designers
of next generation high performance integrated circuits
(ICs) and optoelectronic integrated circuits. Vitesse
currently uses Indium Phosphide (InP) in its own line of
fiber-based network products. Optical integration is also
available from Vitesse in the form of on-chip
photodetectors, reducing the number of components required
in an optical receiver. Vitesse said InP is uniquely capable
of integrating long-wavelength 1510nm detectors with other
electronic components. The resulting products will enable
the development of single chip integrated electronics
operating at rates from 2.5 Gbps to 40 Gbps and beyond.
http://www.vitesse.com
Vitesse Semiconductor, August 3, 2001
FLAG LIGHTS FIRST SEGMENT OF MULTI-TERABIT ASIAN CABLE
FLAG
Telecom initiated city-to-city services between Hong Kong
and Tokyo on the eastern leg of its multi-terabit,
intra-Asia cable system. Extensions are also being built to
Taiwan and to Korea. The FLAG North Asian Loop (FNAL) is a
six fiber pair, fully resilient loop system being developed
by FLAG Telecom in association with Level 3 Communications.
FLAG Telecom and Level 3 will each have three fiber pairs on
the system. Maximum capacity will be in the 2.5 to 3.8Tbps
range.
http://www.flagtelecom.com/index_e1.htm
FLAG Telecom, August 3, 2001
NTT
DOCOMO’S I-MODE SERVICE TO SUPPORT WAP 2.0
NTT DoCoMo
has already adopted specifications equivalent to the ones
for WAP2.0 for its 3G i-mode service. NTT DoCoMo and
Ericsson were the initial proponents for a next generation
Wireless Application Protocol (WAP) based on a TCP/ IP-based
protocol stack and an XHTML-based mark-up language.
http://www.nttdocomo.com/new/contents/01/whatnew0802.html
NTT DoCoMo, August 2, 2001
- Last
week, The WAP Forum released its next generation
specification for developing richer mobile Internet
services. Key highlights of WAP 2.0 include support for
XHTML, which will let developers write applications for
both PC and WAP clients using a common subset of language
elements and development tools. XHTML's modular
architecture also enables developers to quickly and easily
build applications that can adapt to changes in the
hardware environment.
http://www.wapforum.org/
METRICOM POWERS DOWN, SCHEDULES NETWORK AUCTION FOR AUGUST
16
Following
a hearing in bankruptcy court, Metricom announced plans to
shut down its Ricochet wireless data network operations in
all of its markets effective August 8. The company will
auction all of its technology assets, either as a going
concern or as separate networks serving one or several wired
cities. The auction will take place in San Jose on August
16, 2001.
http://www.metricom.com/auctioninfo/index.html
Metricom, August 5, 2001
Metricom’s current assets include:
-
wireless access networks serving 15 US cities with 128
kbps subscriber speeds and 2 US cities with 28 kbps access
speeds
- all
patents for Ricochet’s MCDN technology
- 2.3
GHz wireless spectrum
Metricom uses a unique MicroCellular Data Network (MCDN)
architecture that uses intelligent routing and “pole-top”
radios mounted to streetlight or utility poles.
NORTEL TRANSFERS INTEREST IN ARRIS INTERACTIVE TO NEWLY
CREATED ARRIS GROUP
Nortel
Networks completed the previously announced sale of its
interest in Arris Interactive to Arris Group (ANTEC
Corporation’s new parent company) in return for 49.2% of the
outstanding common stock of Arris Group. Former ANTEC
shareholders hold the remaining 50.8%. The new company will
be publicly traded under the NASDAQ symbol “ARRS.”
http://www.nortelnetworks.com/corporate/news/newsreleases/2001c/08_03_0101533_arris_closing.html
Nortel Networks, August 3, 2001
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Guest Column
Fulfilling The Promise of MPLS:
Ethernet Private Line Services Emerge as a First Killer
App
Stephen Vogelsang
Co-Founder and Vice President of Sales and Marketing,
Laurel Networks
August 6, 2001
Service providers have reached a critical stage in the
development of their data networks. The flood of capital
invested by service providers to build out the Internet
and its optical foundation has all but dried up. In most
cases, the resulting network infrastructures are not yet
generating enough revenue to offset the associated
capital and operating costs. Meanwhile ATM, Frame Relay
and Private Line services remain a profitable revenue
source, but are facing pricing pressure due to an
overabundance of long-haul bandwidth. Together, these
factors are driving service providers to seek ways to
increase the capacity of existing Layer 2 services while
deriving additional service revenues from their
high-capacity IP networks.
What if the excess capacity in existing
service provider IP network infrastructures could be
used to deliver profitable Layer 2 services such as
Frame Relay and ATM? This would allow service providers
to maintain or even increase their current ATM and Frame
Relay revenue streams by scaling capacity-constrained
ATM and Frame Relay services without the associated cost
of infrastructure expansion. This could be done by
simply taking advantage of the excess capacity of IP
networks. The resulting converged service network would
also reduce ongoing operating costs by carrying multiple
services over a single IP backbone.
What if this same IP
network infrastructure could be used to introduce new
services and service bundles while also enhancing
existing IP services? For example, providers could
generate additional revenue through VPNs, new Ethernet
Private Line (EPL) services and premium Internet
services.
Read the full column
http://www.convergedigest.com/Bandwidth/archive/010806GUEST-stephenvogelsgang1.htm |
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