Thursday, October 6, 2005

Level 3 Issues Statement Concerning Internet Peering and Cogent

Level 3 Communications issued the following statement regarding its discontinued peering relationship with Cogent Communications.

Sureel Choksi, executive vice president of Level 3 Communications, stated:

"Free peering, also referred to as settlement-free peering, is a contractual relationship under which two companies exchange Internet traffic without charging each other. In order for free peering to be fair to both parties, the cost and benefit that parties contribute and receive should be roughly the same. The previous arrangement with Cogent was a contractual agreement that, when entered into, met that criteria.

"Over the last six months, our operating subsidiary has assessed all of our relationships to determine whether or not settlement-free peering is still appropriate. We determined that the agreement that we had with Cogent was not equitable to Level 3. There are a number of factors that determine whether a peering relationship is mutually beneficial. For example, Cogent was sending far more traffic to the Level 3 network than Level 3 was sending to Cogent's network. It is important to keep in mind that traffic received by Level 3 in a peering relationship must be moved across Level 3's network at considerable expense. Simply put, this means that, without paying, Cogent was using far more of Level 3's network, far more of the time, than the reverse. Following our review, we decided that it was unfair for us to be subsidizing Cogent's business."

"The arrangement with Cogent was terminable on 60 days' notice. On July 18, we sent Cogent a letter informing them of our intent to terminate the agreement and stop the free exchange of Internet traffic. On August 31, we sent a second letter to Cogent's management regarding our plans and advised them to make appropriate arrangements to prepare for the termination of our agreement. We then contacted Cogent senior management to offer to discuss alternative commercial terms to allow the continued exchange of traffic. Cogent refused. Subsequently, we had a discussion with Cogent's CEO, David Schaeffer, to again advise him of the impending termination. Despite more than 75 days of advance written notice of the termination of our agreement, Cogent apparently failed to notify its customers or make any business plans to prepare for disconnection."

"On October 6, Level 3, as it had repeatedly advised Cogent it would, terminated free traffic exchange with Cogent. Because Internet users, apparently without notice from Cogent and through no fault of their own, have been impacted, Level 3 has, effective immediately, re-established a free connection to Cogent. In order to allow Internet users to make alternative arrangements, we will maintain this connection until 6:00 a.m. ET, November 9, 2005. The effectiveness of this arrangement of course depends on Cogent's willingness to maintain their side of the traffic exchange."

Intel to Acquire Zarlink's Digital Broadcast Technology Assets

Intel agreed to acquire certain consumer electronics digital broadcast technology assets from Zarlink Semiconductor for approximately US$68 million in cash and US$2 million in other consideration.

The deal includes Zarlink's UK-based, Radio Frequency (RF) Front-End Consumer Business, which provides silicon demodulation and tuner devices to the satellite, terrestrial and cable market segments.

Zarlink's RF Front-End Consumer Business, headquartered in Swindon, United Kingdom, generated fiscal 2005 revenues of US$53 million as part of the US$75 million reported by Zarlink's Consumer Communications segment.

"The transition to digital products across the entertainment and CE industries is accompanied by changes in the underlying technology and delivery infrastructure," said Glenda Dorchak, vice president, Digital Home Group and general manager, Consumer Electronics Group, Intel. "Demodulation and tuner technologies are two key ingredients in this infrastructure and play an increasingly critical role in a broad range of CE devices. The addition of this technology and expertise complements Intel's CE roadmap and development plans."
  • In August 2005, Intel outlined its plans to power consumer electronics devices such as plasma TVs and personal media players. Specifically, Intel plans to introduce "Oplus" MN301, a "system-on-a-chip" multimedia display processor for flat panel displays. Production-ready reference designs for dual-channel HDTV are now available. The Oplus MN301 display processor and the Oplus Image Perfecting Engine were developed by Oplus Technologies, Ltd., the Israeli subsidiary of Oplus Technologies, Inc., and a company Intel acquired in April 2005.

    At the time, Intel also said it will begin marketing digital home entertainment systems in 2006 under a new "Viiv" (rhymes with "five") consumer brand. PCs based on Intel Viiv technology will be powered by a suite of Intel technologies, including a dual-core processor, chipset, platform software and wired networking capabilities.

AP: FCC Commissioner Seeks Merger Approvals without Strings

FCC Commissioner Kevin Martin is leaning to approve the SBC/AT&T merger and the Verizon/MCI merger without requiring either company to sell off any of its assets, according to an Associated Press report that cited unnamed sources inside the FCC. A coalition of CLECs has been lobbying the government to require the giant carriers to divest significant network assets in order to alleviate anti-competitive concerns. The FCC might vote on the pending mergers at its next open meeting on October 28.

Voiceglo Changes Name to tglo

Voiceglo, a VoIP provider based in Florida, has changed its name to "tglo" (pronounced "tee-glow") and that all of Voiceglo's products will be consolidated under the "tglo" brand. As such, the GloPhone will become known as the tglo phone in the future.

The company also released the beta version of its tglo Central Command or "Centcomm" product. The product utilizes tglo's network and software to converge all communications. Users download a free plug-in and then begin using tglo's Centcomm as the single point of management for all of their communications needs. Centcomm's capabilities include:
SMS, Peer-to-Peer calling, Email, Call back, music, directories, calendars, groups, instant messaging, photos, broadcast video, broadcast audio, faxing, voicemail, voicemail-to-email, conference calling, podcasting, blogs and search.

Users can access all of these communications abilities from any device, including: mobile phones, home phones, desktop and laptop computers.
  • voiceglo was founded by Michael Egan and Edward Cespedes. Egan is the Founder and former CEO of Alamo Rent A Car, which he directed to become one of the nation's largest car rental firms before selling it to Republic Industries. Cespedes is a former investment banker with JP Morgan and also serves as President of and voiceglo.

See also