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Technology Stocks : Newbridge Networks
NN 12.60+0.7%Nov 12 3:59 PM EST

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To: zbyslaw owczarczyk who wrote (15986)12/19/1999 3:53:00 PM
From: Tunica Albuginea  Read Replies (3) of 18016
 
NBTEL & NEWBRIDGE 3DSL: Pioneering new areas of business

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ft.com

ÿÿÿÿÿÿÿÿÿ <ÿ b>ÿ NBTEL & NEWBRIDGE 3DSL:
ÿÿÿÿÿÿÿÿÿÿÿÿ Pioneering new areas of business
ÿÿÿÿÿÿÿÿÿÿÿÿ The 3DSL technology aims to marry internet
ÿÿÿÿÿÿÿÿÿÿÿÿ networks and multimedia broadcasting,

ÿÿÿÿÿÿÿÿÿÿÿÿÿ by
ÿÿÿÿÿÿÿÿÿÿÿÿ Geoffrey Nairnÿ

ÿÿÿÿÿÿÿÿÿÿÿÿÿ In an era of mega-carriers,ÿ small regional operators
ÿÿÿÿÿÿÿÿÿÿÿÿÿ can feel left behind the wave of innovation and
ÿÿÿÿÿÿÿÿÿÿÿÿÿ change sweeping throughÿ telecommunications. But
ÿÿÿÿÿÿÿÿÿÿÿÿÿ this is not the case for NBTel, the operator for the
ÿÿÿÿÿÿÿÿÿÿÿÿ eastern Canadian province of New Brunswick,
ÿÿÿÿÿÿÿÿÿÿÿÿ which is pioneering new business areas and, in
ÿÿÿÿÿÿÿÿÿÿÿÿ particular, broadband services.

ÿÿÿÿÿÿÿÿÿÿÿÿ NBTel serves 750,000 customers in the
ÿÿÿÿÿÿÿÿÿÿÿÿ province and more than half live in rural areas.
ÿÿÿÿÿÿÿÿÿÿÿÿ "They are not sophisticated users so we have
ÿÿÿÿÿÿÿÿÿÿÿÿ to offer applications that are simple and
ÿÿÿÿÿÿÿÿÿÿÿÿ straightforward," says Paul Hanson, director of
ÿÿÿÿÿÿÿÿÿÿÿÿ strategic planning for NBTel.

ÿÿÿÿÿÿÿÿÿÿÿÿ The characteristics of its market impose
ÿÿÿÿÿÿÿÿÿÿÿÿ limitations on the new types of service that
ÿÿÿÿÿÿÿÿÿÿÿÿ NBTel can offer but the operator has
ÿÿÿÿÿÿÿÿÿÿÿÿ nevertheless realised it must become more
ÿÿÿÿÿÿÿÿÿÿÿÿ than a traditional "narrowband" telephone
ÿÿÿÿÿÿÿÿÿÿÿÿ company if it is to grow.

ÿÿÿÿÿÿÿÿÿÿÿÿ "Even though we are carrying more
ÿÿÿÿÿÿÿÿÿÿÿÿ long-distance traffic than at any time in our
ÿÿÿÿÿÿÿÿÿÿÿÿ history, prices in the long-distance market our
ÿÿÿÿÿÿÿÿÿÿÿÿ falling so fast that we must focus on emerging
ÿÿÿÿÿÿÿÿÿÿÿÿ revenues," says Mr Hanson.

ÿÿÿÿÿÿÿÿÿÿÿÿ One area where NBTel has had considerable
ÿÿÿÿÿÿÿÿÿÿÿÿ success is in call centres and Mr Hanson
ÿÿÿÿÿÿÿÿÿÿÿÿ attributes this partly to the bilingual strengths of
ÿÿÿÿÿÿÿÿÿÿÿÿ the province.

ÿÿÿÿÿÿÿÿÿÿÿÿ It has attracted more than 64 call centres from
ÿÿÿÿÿÿÿÿÿÿÿÿ businesses in North America and some
ÿÿÿÿÿÿÿÿÿÿÿÿ European companies are thinking about giving
ÿÿÿÿÿÿÿÿÿÿÿÿ NBTel their call centre operations, Mr Hanson
ÿÿÿÿÿÿÿÿÿÿÿÿ claims.

ÿÿÿÿÿÿÿÿÿÿÿÿ Buoyed by its success with call centres, NBTel
ÿÿÿÿÿÿÿÿÿÿÿÿ has decided that its future depends on offering
ÿÿÿÿÿÿÿÿÿÿÿÿ a much wider range of services than a
ÿÿÿÿÿÿÿÿÿÿÿÿ traditional regional telephone company.

ÿÿÿÿÿÿÿÿÿÿÿÿ In particular, it is keen to offer a rich range of
ÿÿÿÿÿÿÿÿÿÿÿÿ broadband services such as video and
ÿÿÿÿÿÿÿÿÿÿÿÿ high-speed internet access over its network to
ÿÿÿÿÿÿÿÿÿÿÿÿ increase its revenue stream from small
ÿÿÿÿÿÿÿÿÿÿÿÿ businesses - there are few big businesses in
ÿÿÿÿÿÿÿÿÿÿÿÿ this corner of Canada - and its 250,000
ÿÿÿÿÿÿÿÿÿÿÿÿ households.

ÿÿÿÿÿÿÿÿÿÿÿÿ NBTel was the first telephone company in
ÿÿÿÿÿÿÿÿÿÿÿÿ Canada to be given a broadcast licence similar
ÿÿÿÿÿÿÿÿÿÿÿÿ to that of the cable companies that already
ÿÿÿÿÿÿÿÿÿÿÿÿ operate in New Brunswick. But getting the
ÿÿÿÿÿÿÿÿÿÿÿÿ licence was only the first hurdle in NBTel's
ÿÿÿÿÿÿÿÿÿÿÿÿ strategy to transform its copper wires into a
ÿÿÿÿÿÿÿÿÿÿÿÿ broadband infrastructure capable of much
ÿÿÿÿÿÿÿÿÿÿÿÿ more than simply handling phone calls.

ÿÿÿÿÿÿÿÿÿÿÿÿ Offering any type of video application is quite a
ÿÿÿÿÿÿÿÿÿÿÿÿ challenge for telephone companies. Video is
ÿÿÿÿÿÿÿÿÿÿÿÿ not something they typically knew much about
ÿÿÿÿÿÿÿÿÿÿÿÿ and the technology is far from mature.

ÿÿÿÿÿÿÿÿÿÿÿÿ NBTel therefore teamed up with Newbridge
ÿÿÿÿÿÿÿÿÿÿÿÿ Networks, the Canadian equipment supplier to
ÿÿÿÿÿÿÿÿÿÿÿÿ help it realise its broadband vision.

ÿÿÿÿÿÿÿÿÿÿÿÿ Using Digital Subscriber Line (DSL)
ÿÿÿÿÿÿÿÿÿÿÿÿ technology, NBTel wants to build a multimedia
ÿÿÿÿÿÿÿÿÿÿÿÿ link into every home. This link, which will initially
ÿÿÿÿÿÿÿÿÿÿÿÿ be able to handle 6 to 10 megabits a second,
ÿÿÿÿÿÿÿÿÿÿÿÿ will then be used to offer multiple services:
ÿÿÿÿÿÿÿÿÿÿÿÿ high-speed internet, TV, video on demand ÿÿÿÿÿÿÿÿÿÿÿÿ (VoD) as well as traditional "dial tone"
ÿÿÿÿÿÿÿÿÿÿÿÿ services.

ÿÿÿÿÿÿÿÿÿÿÿÿ The ability to easily offer different services is
ÿÿÿÿÿÿÿÿÿÿÿÿ seen as of paramount importance to the NBTel
ÿÿÿÿÿÿÿÿÿÿÿÿ project - and a big difference with other DSL
ÿÿÿÿÿÿÿÿÿÿÿÿ pilot networks which are typically marketed by
ÿÿÿÿÿÿÿÿÿÿÿÿ focusing on a particular application.

ÿÿÿÿÿÿÿÿÿÿÿÿ Today, the "killer application" for ADSL
ÿÿÿÿÿÿÿÿÿÿÿÿ (Asymmetric Digital Subscriber Line) is often
ÿÿÿÿÿÿÿÿÿÿÿÿ seen as high-speed internet access. But in an
ÿÿÿÿÿÿÿÿÿÿÿÿ area such as New Brunswick, Mr Hanson
ÿÿÿÿÿÿÿÿÿÿÿÿ believes there are not sufficient internet users
ÿÿÿÿÿÿÿÿÿÿÿÿ willing to pay premium prices to surf the net at
ÿÿÿÿÿÿÿÿÿÿÿÿ higher speeds. "We cannot afford to offer just
ÿÿÿÿÿÿÿÿÿÿÿÿ high-speed internet," says Mr Hanson.

ÿÿÿÿÿÿÿÿÿÿÿÿ So NBTel is focusing heavily on the video
ÿÿÿÿÿÿÿÿÿÿÿÿ capabilities of its enhanced network and it
ÿÿÿÿÿÿÿÿÿÿÿÿ plans to offer subscribers a package of up to
ÿÿÿÿÿÿÿÿÿÿÿÿ 76 TV channels.

ÿÿÿÿÿÿÿÿÿÿÿÿ Recognising that this move brings it into direct
ÿÿÿÿÿÿÿÿÿÿÿÿ competition with the cable TV operators, it is
ÿÿÿÿÿÿÿÿÿÿÿÿ working hard on a pricing strategy to attract
ÿÿÿÿÿÿÿÿÿÿÿÿ customers. Mr Hanson believes it has to
ÿÿÿÿÿÿÿÿÿÿÿÿ charge less than $80 a month for its package
ÿÿÿÿÿÿÿÿÿÿÿÿ because that is equivalent to what it would cost
ÿÿÿÿÿÿÿÿÿÿÿÿ to sign up for cable TV and high-speed internet
ÿÿÿÿÿÿÿÿÿÿÿÿ as separate services.

ÿÿÿÿÿÿÿÿÿÿÿÿ In addition, NBTel's ADSL users will get a wide
ÿÿÿÿÿÿÿÿÿÿÿÿ range of additional services such as music,
ÿÿÿÿÿÿÿÿÿÿÿÿ interactive TV and local content. Much of the
ÿÿÿÿÿÿÿÿÿÿÿÿ "additional value" contained in the NBTel
ÿÿÿÿÿÿÿÿÿÿÿÿ package has still to be defined but Mr Hanson
ÿÿÿÿÿÿÿÿÿÿÿÿ sees this as a big advantage as the technology
ÿÿÿÿÿÿÿÿÿÿÿÿ adopted allows it to easily configure different
ÿÿÿÿÿÿÿÿÿÿÿÿ services over its ADSL network to cater for
ÿÿÿÿÿÿÿÿÿÿÿÿ changing customer demand.

ÿÿÿÿÿÿÿÿÿÿÿÿ The key to this flexibility is the Newbridge
ÿÿÿÿÿÿÿÿÿÿÿÿ 3DSL technology which aims to marry the
ÿÿÿÿÿÿÿÿÿÿÿÿ distinct worlds of internet networks and
ÿÿÿÿÿÿÿÿÿÿÿÿ multimedia broadcasting. A fundamental
ÿÿÿÿÿÿÿÿÿÿÿÿ element in the Newbridge system is advanced
ÿÿÿÿÿÿÿÿÿÿÿÿ video technology which takes feeds from
ÿÿÿÿÿÿÿÿÿÿÿÿ various video sources, such as terrestrial or
ÿÿÿÿÿÿÿÿÿÿÿÿ satellite broadcasters or content stored on a
ÿÿÿÿÿÿÿÿÿÿÿÿ video server, and then transmits them as
ÿÿÿÿÿÿÿÿÿÿÿÿ internet-type data. This video content which can
ÿÿÿÿÿÿÿÿÿÿÿÿ be mixed with internet content and delivered
ÿÿÿÿÿÿÿÿÿÿÿÿ over the local ADSL networks.

ÿÿÿÿÿÿÿÿÿÿÿÿ Sending video broadcasts over the internet is
ÿÿÿÿÿÿÿÿÿÿÿÿ quite a challenge using conventional
ÿÿÿÿÿÿÿÿÿÿÿÿ technologies because each user requires a
ÿÿÿÿÿÿÿÿÿÿÿÿ dedicated amount of bandwidth. As the number
ÿÿÿÿÿÿÿÿÿÿÿÿ of users grow, the bandwidth required grows
ÿÿÿÿÿÿÿÿÿÿÿÿ rapidly and can swamp the network. The
ÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge system gets round this by using a
ÿÿÿÿÿÿÿÿÿÿÿÿ technology called IP multicast to deliver multiple
ÿÿÿÿÿÿÿÿÿÿÿÿ channels of broadcast video or other content
ÿÿÿÿÿÿÿÿÿÿÿÿ efficiently to a TV or PC - or any other device.

ÿÿÿÿÿÿÿÿÿÿÿÿ For a tractional telephone company, the idea
ÿÿÿÿÿÿÿÿÿÿÿÿ that the telephone is no longer central to its
ÿÿÿÿÿÿÿÿÿÿÿÿ strategy can be difficult to accept. But NBTel
ÿÿÿÿÿÿÿÿÿÿÿÿ has no such reservations. "You can access our
ÿÿÿÿÿÿÿÿÿÿÿÿ service on a PC, phone or TV, it really does not
ÿÿÿÿÿÿÿÿÿÿÿÿ matter to us any more" says Mr Hanson.

==========================================

Message #15986 from zbyslaw owczarczyk at Dec 19 1999 10:32AM

NEWBRIDGE NETWORKS WINS HAMCOM CONTRACT TO PROVIDE TAILORED INTERNET SERVICES
quote.bloomberg.com.

Hamm, Germany, December 16 -- Over 5000 internet users in the region
of Hamm, north-west Germany are set to benefit from Newbridge Networks'
unique three-pronged Internet connection offering, which for the first time
will allow them to tailor their Internet service requirements. Business and
residential customers in the larger region will be able to select one of
five Internet packages from HeLiNET, a joint venture incorporating Hamcom
GmbH and four other German operators.

As the Internet industry debates the advantage of a flat rate over
metered calls, Newbridge technology means that HeLiNET customers can select
a standard, professional or premium package from one company and therefore
allows HeLiNET to differentiate service levels, essential to lead in the
highly competitive IP market. By using the Newbridge solution the company
is able to significantly save network and operation costs which, in turn
allows HeLiNET to offer very competitive prices.

The Internet services packages, known as flex, flat and advanced, are
incorporated within the company's WorldConnect portfolio. The services
operate from 4 highly integrated Newbridge 36100 hardware platforms, an
easy to manage, cost effective solution, from which the company can also
build other services, such as virtual private networks. More than 5000
customers are actually selecting dial-in, fixed access or leased lines when
connected to the Hamcom network.

Newbridge Networks, together with ABB, won the contract in a five way
competitive evaluation, against 3COM, Cisco, Lucent and Nortel. Hamcom
awarded the contract to Newbridge Networks and ABB because the companies
were able to offer the most cost-effective solution that could be easily
integrated with existing systems. The contract was won through ABB, sales
channel for Newbridge Networks. ABB is acting as a channel partner
providing consultancy, network design and also Support on the installed
network. Torsten Valentin, manager of Internet services at Hamcom,
commented: ``Internet users are at last being given the opportunity to
select the right package and level of service for their needs. This will
allow us to understand our customers better and to ensure we are providing
the best Internet service packages at the least cost.'

Frank Zwirner, sector marketing manager at Newbridge Networks said:
``We are confident that our next-generation Internet service packages will
lead to improved, targeted services for Hamcom's business and residential
customers in Germany. We believe this customer-centric approach is the way
forward in encouraging Internet take-up and in delivering tailored services
to the right market.'

Newbridge Networks designs, manufactures, markets and services wide
area networking solutions for Internet service providers; local, long-
distance, and wireless communications companies; cable television carriers;
and corporate customers in more than 100 countries. The Company leverages
its relationship with Newbridge Affiliate companies and strategic alliances
with numerous other networking companies to deliver complete, end-to-end
solutions. Newbridge customers include the world's 350 largest
telecommunications service providers and more than 10,000 corporations,
government organizations and other institutions. Founded in 1986, the
Company employs more than 6,000 people on six continents. News and
information are available at www.newbridge.com.

Newbridge and logo are registered trademarks of Newbridge Networks
Corporation.

Firefly contact:
Alexine Waspe
alexine.waspe@firefly.co.uk
Telephone: 0207 386 1428
Newbridge Networks contact:
Nikki Fraser
nfraser@newbridge.com
Telephone: 01628 428 504
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