DSL

DSL Prime News Weekly: The Inside Source —continued

Briefs

• "All the FCC Commissioners believe strongly in competition" Jessica Rosenworcel of the FCC told an intensely interested audience at the DSL Summit in Palm Springs. She urged the industry to get involved in crucial decisions that will shape the competitive landscape. In particular, she spoke of 251 (unbundled elements) as the rules of the game, and 271 (long distance approval) as the structured incentive, and pointed out several key issues the commission sought comment on. Article in next issue—email the editor if you need a copy as soon as it's ready. Meanwhile, attorneys in the field should check the Texas long distance approval for a reference to line-splitting. A data CLEC can lineshare with an incumbent, but the FCC also addessed line splitting with a different voice carrier.
• At Streaming Media West, Real is touting a new content delivery network standard (with Akamai & others), Microsoft introduced a new codec designed for decent quality full screen video at 500-800K, and Sun is leading an effort for a media format not dependent on either. Meanwhile, Intertainer, live in Cincinnati Bell with Video on Demand to a settop box, announced a deal with Into/Play for computer games on demand as well. NorthPoint is well along in broadband tests.
• BellSouth invested $4.5M in Israeli optical switchmaker Sivcom. BellSouth is quietly making some interesting moves, including satellite broadcasting, Internet switchpoints, and tripling DSL next year. Companies that followed the herd—like AT&T buying cable companies for market share—haven't done as well.
• Winfire/FreeDSL is now delivering service through Verizon in New York, moving towards 30,000 subscribers by yearend. The majority choose the paid service at a higher rate. Watch these folks—they're building a more robust network than most, a strong OSS, and an operation strong enough they are signing OEM partners. In this stock market, of course...

Deals

• Zhone, the one-box-does-it-all folks, got a big boost towards their pending IPO from a joint development agreement with Qwest. They are in active trials with Birch and other smaller carriers.
• Viagate hopes their distribution deal with Huneed in Korea will allow them to break into Korea Telecom's VDSL plans. Neither KT nor Hanaro have announced a second source to Next Level.
• Calgary's Shift Networks ordered 50 basement DSLAMs from AccessLan, which are flexible, inexpensive units.

International

• Israel's ECI Telecom, DSLAM supplier to DT, is close to selling a telephony division to Texas Pacific, parent company of Paradyne and Globespan, according to Haaretz/The Marker.

People

• Legerity, the AMD spinoff with interesting voice + data chips in the pipeline and an Alcatel license, named Ron Van Dell CEO. Before a stint at Dell Computers (not a relation, we believe) he was vice president and general manager for Harris Semiconductor's communication business.

Stock Market

• Adtran's earnings shortfall (down over 70% from predictions) was caused by disappointing sales to telcos. They've worked very hard to become a factor in G.shdsl, and expect production volumes in 3-5 months for this very hot market. They're also first, we believe, with a central office IAD for VoDSL, which Turnstone has integrated into an interesting lifeline cutover system.
• $250M from Rose Glenn Capital bailed out Teligent, whose key strategy—connecting fiber/wireless to a building—is not yet producing cash. But CSFB's Mark Kasten pointed out that the price was a 51% dilution of current stock, in return for cash that won't carry them through 2001.
• CSFB analysts Jamie Kiggen and Rick Vallieres took a trick from investigative reporters, signing on for a week's work incognito at Amazon.com. Proves that not all Wall Street analysts get their opinions from management briefings. No report on whether they are joining the unionization effort at Amazon.

Copyright 2000 Dave Burstein.
The DSL Prime Newsletter is reprinted with permission.

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