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 at providing a personal data repository.

This was a move to compete with Microsoft’s recently unveiled Passport
service. This was Novell’s first venture into Internet based services,
as the company is known for network management software.

15. 7-Oct-99: "AT&T’s Top Cable

Executive Resigns Amid Internet-Access Fracas" – After making public statements
denying that AT&T had been in secret talks with