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Today's report from Web Editor Susan
Rush
• RealNetworks takes
an open-source approach
• Best Buy, Boeing tap
Nortel
• IP Unity boosts telephony
plans with EmpowerTel merger
• AT&T, Lucent post
quarterly loss
• Phonex serves up plug-and-play
home networking
• Comcast plan to feature
high-speed downloading
• FTC: Nix to Malone
• Broadband briefs
RealNetworks takes an open-source
approach
RealNetworks
has attempted to take another jab at its biggest competitor, software
giant Microsoft Corp., with the introduction on a digital media
software that supports various file formats for audio and video,
including Microsoft's Windows Media technology and Apple's QuickTime.
The open-source software, dubbed Helix, is designed
to enable a company to use a single server to stream content no
matter the format, rather than having to use multiple programs.
RealNetworks has established the Helix Community,
which consists of 29 companies, including CollabNet, Cisco Systems,
Hitachi, HP, Intel, Nokia, Oracle, PalmSource, Sony Corp. and
Sun Microsystems. The Helix Community will offer two license structures:
the RealNetworks Community Source License and the RealNetworks
Public Source License. RealNetworks expects to make the initial
client source code available within 90 days.
"When you have all these different platforms, and
all these different protocols, it gets unmanageable," said Rob
Glaser, RealNetworks' founder and CEO. "A lot of what (this technology)
is about is breaking those bottlenecks and making convergence
really converge."
Related stories:
In
other financial news..., 7/17/02
"Big
Brother 3" streams for a fee, 7/11/02

Best Buy, Boeing tap Nortel
Retailer Best Buy is turning to
Nortel Networks to establish a voice-over-IP network at its
Richfield, Minn.-based corporate headquarters, while Boeing has
turned to Nortel to build a nationwide optical network.
Best Buy's VoIP network will be based on Nortel's
Succession Enterprise solution and will feature a Meridian IP-enabled
PBX. The network will support the 7,500 employees working out
of the 1.5 million square-foot office.
Nortel's CallPilot Unified Messaging will be used
to integrate desktop applications. Nortel's Symposium Call Center
Service will deliver reporting and call center functionality to
the building's 750 call center agents. Terms of the deal were
not disclosed.
Nortel distribution partner HickoryTech Enterprise
will deploy the network and provide on-site upgrades and support.
Separately, Nortel announced it has landed a $20
million contract to build The Boeing Company a private optical
network based on dense wavelength division multiplexing and next-generation
SONET technology.
The deal calls for Nortel to deliver its OPTera Long
Haul 1600 Optical Line Systems and OPTera Metro 3500 Multiservice
platform in various cities. The network extends for 9,100 miles.
Related stories:
Net2Phone
makes first IP call, 7/1/02
Tip-toeing
into VoIP's woolly verbiage, 4/29/02

IP Unity boosts telephony plans
with EmpowerTel merger
IP
Unity said it will acquire silicon vendor EmpowerTel Networks
as part of a plan to serve operators that offer voice over traditional
TDM (Time Division Multiplex) networks but also have plans to
offer next-generation Internet protocol-based telephony services.
Financial terms were not disclosed.
Though IP Unity's plan of attack involved the VoIP
market, the addition of EmpowerTel's technology will allow the
company to tackle a "blended" market that consists of carriers
of both circuit- and packet-switched voice services.
"The key to that [blended market] is to be cost-effective
in both," said IP Unity CEO Arun Sobti.
IP Unity hopes to achieve that by integrating EmpowerTel's
MediaXpress system-on-a-chip silicon with IP Unity's Harmony6000
Platform, which includes a media server designed to handle multiple
services, including interactive voice response and automated speech
recognition, on one platform. The integration will reduce the
cost-per-port for TDM deployments dramatically, Sobti said.
Rather than purchasing a media gateway from a partner,
the integration of EmpowerTel's chipset will save IP Unity on
the order of 80 percent for the TDM extensions, Sobti said.
In addition to selling its own gear, the Milpitas,
Calif.-based company plans to leverage EmpowerTel's technology
in the OEM sector as well.
Although packetized voice services are expected to
become the calling card of telephony's future, TDM- and IP-based
services "will co-exist for the next decade," Sobti predicted.
In the meantime, IP Unity is starting to pick up
some business in the VoIP sphere. Most recently, Comcast said
it will leverage IP Unity's Harmony 6000 for its planned VoIP
deployment in Philadelphia by the second quarter of 2003.
- Jeff Baumgartner

AT&T, Lucent post quarterly
loss
AT&T Corp. posted its biggest quarterly loss
in 22 years, while Lucent Technologies Inc. reported its ninth
straight quarterly loss.
For second quarter ended June 30,
AT&T reported a loss of $12.7 billion, or $3.49 per diluted
share. The loss excludes charges related to the write down of
some assets. Revenue dipped to $12.1 billion, down from $13.3
billion in the same quarter a year ago.
During the quarter, AT&T Broadband added 137,000
high-speed data and 105,000 cable telephony customers. The broadband
unit's merger with Comcast is expected to be completed by the
end of the year.
Telecom equipment giant
Lucent posted a third-quarter loss of $7.86 billion, or $2.31
per diluted share. The loss widened from the $3.24 billion posted
in the year-ago quarter.
The ongoing spending slump in the telecom industry
is forcing Lucent to shed another 7,000 jobs. The company will
eliminate the positions by the end of the year. At the end of
June, Lucent employed 53,000.
Although Lucent did not provide fourth quarter guidance,
the company says it is on target to return to profitability in
late fiscal 2003.

Phonex serves up plug-and-play
home networking
Phonex
Broadband continues its surge into the powerline home networking
marketplace with the introduction of its HomePlug 1.0-compliant
device.
The NeverWire 14 QX-201 device uses power carrier
technology to make use of unused bandwidth in standard electrical
wiring. The company is marketing the device to business and residential
customers with multiple computers. The product, which consists
of a modem-sized box with a power plug and a RJ-45 Ethernet jack,
enables users to leverage existing power lines to create a 14
MB Ethernet network. No software drives are required for the NeverWire
14.
The NeverWire 14 costs $129 per node. The device
can be used to share high-speed Internet access, share peripheral
devices and play interactive games.
Up to 16 NeverWire units can be used per powerline
network.

Comcast plan to feature high-speed
downloading
Copyright 2002 Knight Ridder/Tribune
Business News
Copyright 2002 Detroit Free Press
Detroit Free Press...07/23/2002
From LexisNexis
Brenda Rios
Small businesses that need faster Internet speeds
but can't afford some of the high-priced options such as T1 lines,
which can cost upwards of $1,000 a month, have a new choice.
Comcast
Corp. this week is to unveil a new cable modem plan with faster
download speeds designed for small businesses or people who work
from home and send big electronic files -- groups that haven't
had many affordable high-speed options.
The download speed with the new Comcast High-Speed
Internet Pro will be up to twice as fast as Comcast's residential
cable modem service and cost about twice as much, the company
said.
The service will cost $95 a month, compared with
$44.95 a month for Comcast's original residential high-speed service.
The fee for the cable modem rental is included in the new plan
and costs an additional $5 a month under the residential plan.
The Internet Pro plan is designed for telecommuters
who send and receive extensive electronic files or for small businesses
that have up to five computers on the same network.
It will be available anywhere Comcast offers high-speed
Internet access to homes.
Louis P. Kasman, a media consultant who works from
his Ann Arbor home, said he might be interested in the new plan,
but he doesn't want to pay Comcast more money until he's sure
it's worth it.
"They would have to live up to what they committed
to regular service before I would entertain paying them more,"
Kasman said.
He said he's never been able to get remote access
to his e-mail, something the company said would be available.
Comcast's new service has download speeds of up to
3.5 megabits per second, compared with the residential plan's
1.5 megabits per second. Speeds aren't guaranteed.

FTC: Nix to Malone
Copyright 2002 Reed Elsevier
Inc.
Daily Variety...07/23/2002
From LexisNexis
Pamela mcclintock
WASHINGTON --- The
Federal Trade Commission has nixed a request by
Liberty Media topper John Malone to up the company's stake
in
AOL Time Warner and lift restrictions on his shareholder voting
rights.
In an unanimous vote, the FTC said there was no
reason to relax conditions imposed on the 1996 merger of Time
Warner and Turner Broadcasting.
Back then, Malone ran Liberty's then-parent Tele-Communications
--- a large cable-systems operator that's since been folded into
AT&T --- and TCI was an investor in Turner Broadcasting.
Worried that TCI would become too closely allied
with cable systems operated by Time Warner, the FTC demanded that
Liberty enter into a consent decree limiting Malone's shareholder
voting rights and capping his stake in TW at under 10 percent.
In asking federal regulators to ease those limits,
Liberty argued that, as it now owns no U.S. cable systems, there's
no chance for a conflict of interest. Liberty was spun off from
TCI last year.
But the FTC didn't buy the argument, saying Liberty
never mentioned whether it intended to stay out of the cable systems
biz.
"Your petition has provided no basis for concluding
that similar ties between Liberty and other cable systems would
not produce this same distortion of incentives --- with the same
effects on competition in the cable programming market --- if
Liberty were allowed to own more stock in Time Warner," the FTC
said in its ruling, released late Friday.
Liberty has a 4 percent stake in AOL Time Warner,
and through Liberty, Malone is already one of the biggest individual
shareholders in AOL TW. His request to regulators had prompted
speculation he'd like to acquire even more stock in the media
giant --- and maybe even a seat on the conglom's board.
Malone has denied wanting a board seat.

Broadband briefs:
• WorldCom gets approval in court
The U.S. Bankruptcy Court for the Southern District of New York
has approved $750 million in interim financing for WorldCom.
The funds will enable the company to continue its day-to-day operations,
pay employees and service customers while it waits for approval
on $2 billion in debtor-in-possession financing. The DIP hearing
is slated for Sept. 4.
• iPass and InfoExpress form alliance
To provide customers with integrated secure mobile access platforms,
iPass
Inc. has formed a technology alliance with InfoExpress.
The companies will work to provide interoperability between iPass'
secure mobile solutions and InfoExpress' centrally managed personal
firewall suite, remote system policy enforcer and remote VPN/extranet
product.
• BIFS to launch service in Miami-Dade
BIFS
Technologies Corp. has inked a deal with MIG Broadcast Group
Inc. to purchase the station's excess digital broadband capacity
and use MIG's TV+ Internet last mile solution to deliver wireless
high-speed Internet access to the station's Miami-Dade viewers.
Financial terms were not disclosed.

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