Broadband Week Direct - Daily News 10/3/00

Today's report from Web Editor Susan Rush

• Ericsson Is Looking To 4G
• Comdisco Pulls Plug On Prism
• AT&T Sings To VOD's Tune With DIVA
• Chip Sales Jump 53%
• Broadband Briefs

Ericsson Is Looking To 4G

Billions are being spent for third-generation high-speed wireless licenses around globe. And, if these auctions are any indication, 3G is going to be BIG business. But as many carriers, infrastructure builders and manufacturers are working to build out networks and launch much-discussed 3G wireless services, Ericsson is trying to pull ahead of the pack with the next, next wireless generation, 4G.

"4G could bring connection speeds up to 50 times faster than third-generation networks and three-dimensional visual experiences for the first time," says Hakan Eriksson, head of Ericsson research. Third-generation networks will be much faster than current technology, offering connection speeds of 2 megabits per second. Fourth-generation networks will blow 3G out of the water, with speeds reaching as high as 100 megabits per second, according to Ericsson.

But don't get your checkbooks out to purchase a phone with 4G technology just yet. Eriksson believes it will take about 10 years for the technology to be fully functional, however some services could be unveiled as early as next year. "Third-generation technology has a very strict definition, but 4G technology will have a much wider definition, enabling services to be rolled out over time," explains Eriksson.

Other firms have announced plans to develop fourth-generation wireless technology, including AT&T Labs and various Japanese wireless firms.

Comdisco Pulls Plug On Prism

The buck stops here -- the money will no longer be rolling into DSL-service provider Prism Communication Services, Inc. Comdisco, Inc., a Prism majority interest holder, ceased funding to its New York City-based subsidiary. Significant valuation changes and a lack of provisioning throughout the industry has forced the company to reevaluate its investment in Prism, according to Comdisco president Nicholas K. Pontikes. The technology services company, which acquired a controlling interest in Prism in March 1999 for an undisclosed amount, puts the net book value of Prism at $375 million.

Prism has put itself up on the sale block, according to a prepared company statement. The company will continue to service its existing DSL customer base, but is stopping all sales and marketing efforts.

AT&T Sings To VOD's Tune With DIVA

AT&T Broadband unleashes video-on-demand services with the help of California-based DIVA Systems Corp. AT&T digital cable subscribers in the San Francisco Bay area, Los Angeles and Pittsburgh will be the first to gain access to the VOD service.

VOD will enable digital cable subscribers to use their current set-top boxes and remotes to choose from hundreds of video titles, start selections at a time convenient for the them, as well as pause, rewind and fast forward a movie.

DIVA's interactive turnkey solution will be used for headend equipment, software and content to assist AT&T in the commercial deployment of VOD services. AT&T is currently testing the DIVA product in Atlanta and plans to launch the service commercially in that city by the end of the year.

Chip Sales Jump 53%

Consumer demand for telecommunications products has sparked growth in the semiconductor industry. Chip sales grew to $18.19 billion during the month of August, a 52.7 percent increase over sales a year ago. Regions experiencing the most growth were areas where wireless and Internet infrastructure build out is exploding. The Asia Pacific and Japan markets grew 60.2 percent and 53.7 percent respectively over last year. America experienced a 50.3 percent growth rate, while Europe's sales grew 46.4 percent.

Grow was tabulated based on the Semiconductor Industry Association's (www.semichips.org) "SIA Global Sales Report," a three-month moving average of sales activity. The organization is predicting, based on sales to date, that the industry will experience more than a 30 percent growth rate for the year 2000.

Broadband Briefs:

Rhythms NetConnections wins approval by the Massachusetts Department of Telecommunications and Energy to deploy its DSL-based Internet service over Verizon Communications' network. The ruling reduces line-sharing provisioning and collocation augment intervals, and ensures Rhythms access to Verizon's fiber loops.
United Airlines will use Aerzone's broadband wireless technology to deliver wireless communications services to its customers. The service will be available at UAL's terminals, Red Carpet Clubs, First Class Lounges and 1K Rooms.
Level 3 Communications, Inc. completes 15,000 miles of its 16,000-mile North American intercity network. The network is designed to be continuously upgradeable.
NEC Corp. believes it has set a high-density dense wavelength division multiplexing capacity record. NEC transmitted 6.4 Tb/s over a single 186 km fiber.
DSLnetworks releases 3PN, a Layer 3 private network, as an alternative to Frame Relay and traditional virtual private networks. Integrating DSL for last mile connectivity and a private IP backbone network creates the private network.
Streaming video technology provider EyeWonder Inc. joins Akamai Technologies, Inc.'s Alliance Partner Program. The two companies will co-market each other's services to customers.
BMW Manufacturing Corp. turns to mPhase Technologies to deliver DSL video service with up-to-the minute news, marketing information and corporate communication to its 3,700 employees.
Conexant Systems, Inc. will use Terayon Communication Systems' single-chip programmable cable modem to develop a line of Data Over Cable System Interface Specification, EuroDOCSIS and EuroModem compatible products.
Optical networking solutions provider Quantum Bridge Communications wins a multi-year contract from Comcast Telecommunications, Inc. Comcast will deploy the Quantum Bridge Optical Access System in several select markets.