Feraldo - Glad I found this thread. I have been thinking about starting a thread on converged networks but it looks like you beat me to it. Good to see Frank Coluccio on this thread - I always enjoy reading his posts on the other broadband threads that I follow. I think you guys will be interested in the following excerpt from a 10-K filed recently by TeraGlobal Communications (NASD/BB: TGCC) from San Diego.
TGCC is bringing TeraCom to market in the 2nd half of '99, when Motorola's AltiVec PowerPC is in production. Although they have no announced TeraCom customers, there are several very large corporations that are said to be seriously evaluating their product. Despite the fact that they still have much to prove, this company has a market cap greater than VideoServer and approaching FCV.com.
I'd be interested to hear anyone's thoughts on it.
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TERACOM. TeraCOM is a communication service delivered over a
client/server computer network called a TeraCOM ServiceCell. The Service
Cells are custom designed and constructed for the Customer, creating a
private and secure communication network that delivers guaranteed network
access in a real-time two-way fashion. The TeraCOM Service is a complete and
supported communication service delivered over a patent-pending network
topology providing real-time two-way point-to-point, point to multipoint, and
multiple point-to-multipoint interactive multimedia-based communications
capability. TeraCOM is provided as a service for a monthly fee over the term
of a five year service contract, providing customers the full utility of the
network and TeraGLOBAL-communications technology without the high upfront
capital expenditures typically associated with the other networks. TeraCOM
allows users to create, distribute, and manage information and access a full
range of communication media (audio, video, data, still, animation,
documents, virtual reality or graphics) through a single technology, and
distribute it across a secure network.
THE TERACOM CLIENT. Each client station is a separate communications
terminal, which includes a monitor, processor, speaker, camera, and microphone.
The processors are currently PowerPC microprocessors from Motorola, Inc.
Customers can choose among several alternatives for monitors, speakers, cameras
and microphones to tailor the communications terminal to their specific
application requirements. As part of a single TeraCOM ServiceCell an individual
TeraCOM Client can reside in any location worldwide, with large quantities of
other Clients in a classroom-like environment, on a stand-alone basis, or any
combination thereof.
[SCHEMATIC OF SAMPLE CLIENT STATION SHOWING MONITOR, DESKTOP COMPUTER,
SPEAKERS, CAMERA AND MICROPHONE]
THE TERACOM SERVER. The TeraCOM Server employs a unique architecture
to deliver data to TeraCOM Clients. Each ServiceCell may employ multiple
TeraCOM Servers, providing mission critical, fault tolerant service. The
Server uses a routerless design, taking advantage of the processing power of
the PowerPC microprocessor. In addition, each TeraCOM Server connects to a
finite number of clients. These two features significantly impact
performance. The routerless design eliminates a majority of the capital cost
to build a network, reduces complexity, and lowers operational labor costs.
By fixing the number of TeraCOM Clients to a single server, each Client is
assured guaranteed access to data and greater responsiveness in comparison to
statistically based Internet servers.
CONNECTING TO THE NETWORK. The TeraCOM network uses an Asynchronous
Transfer Mode ("ATM"). The network topology supports the use of T1, E1, Frame
Relay, HDSL, Wireless, and satellite connectivety simultaneously providing
the ability to deliver service globally. Service delivery currently requires
a minimum of 1 Mbps full-duplex bandwidth between a TeraCOM communication
terminal and the TeraCOM Server. By design, TeraCOM service provides a level
of quality, reliability, security, and functionality that the Internet and
other communication technologies cannot currently offer. The TeraCOM
ServiceCell can be constructed to ensure guaranteed access to valuable
content at all times. Existing telephone service and Internet service are
statistically based, with more users attached to the system than the system
could handle simultaneously. During high usage periods, some users will not
be able to access the system. Because each TeraCOM ServiceCell is designed
specifically for a customer, it can be constructed to establish a permanent
"virtual" circuit for each client station to the server, guarantying access
to the network by all users simultaneously.
When a customer orders the TeraCOM service, one or more custom designed
TeraCOM Service Cells are constructed for the customer, creating a private and
secure communication infrastructure. The TeraCOM Service Cell is scalable.
Additional servers and client stations can be added to meet nearly any
organization's demands. Each ServiceCell can be engineered to support up to
several thousand Clients communicating in an interactive fashion simultaneously.
The ServiceCell will support any combination of point-to-point and
point-to-multi-point communication sessions.
[SCHEMATIC OF A SAMPLE SERVICE CELL SHOWING CONNECTION OF SERVERS AND CLIENTS]
Once the ServiceCell is installed, any user on the network can access
any other user for a communication session with the click of a mouse. In
addition, users can deliver to others on the network any form of digital media
stored in the TeraCOM Servers forming a portion of the ServiceCell, whether
text, graphics, video, virtual reality or other media. TeraCOM, like the
Internet, is a packet-based communication technology. It can take any form of
information stored in digital format and stream data packets to any number of
recipients. Unlike the Internet, however, the unique architecture and software
of the TeraCOM ServiceCell allows the data packets to be delivered in a manner
that permits broadcast quality video in real time.
The TeraCOM Service incorporates all of the software necessary to
effectively develop, distribute, manage and assess the flow of data, including
the following discrete components.
CONTENT DEVELOPMENT. TeraCOM contains sophisticated content
development tools that allows subject matter experts to focus on the quality
of the content they develop versus the complexity of the software. A subject
matter expert can access any form of media stored on the TeraCOM Servers to
assemble a presentation. That presentation may include, for example, an
introductory video before moving to a slide presentation followed by a
virtual reality demonstration. TeraCOM's content development software treats
each medium the same. Therefore a subject matter expert assembling a
presentation can access each component from the media library contained on
the TeraCOM Server. He or she then edits the content for the specific purpose
and places it within the presentation. The interface for accessing, editing
and organizing the data is uniform irrespective of the type of media
involved. TeraCOM includes a Digital Versatile Disc (DVD) Read Only Memory
(ROM) based library of audible and visual elements that can be used during
the Content development process. Each Client contains this library of data
relating to the formatting of content. In addition to the ability to transmit
formatted data, a TeraCOM user can instruct a Client to access the formatting
data from its own library. This facilitates the distribution of interactive
multimedia Content without actually consuming bandwidth and subjecting the
User to unnecessary delays. This also preserves communication bandwidth for
real-time data like audio and video.
DISTRIBUTION. The TeraCOM Server software knows how to rapidly assemble
and distribute data packets derived from user requests and interaction. Current
server software cannot achieve the required efficiencies established by the
TeraCOM requirements. In addition, the server software can be used to customize
data packets based on a user profile so that, for example, different language
versions of the same document can be transmitted in real time to a number of
users located worldwide. The TeraCOM Server software also has another key
component, packet routing, eliminating the need for a router. The purchase of a
router represents the largest capital cost component of current communication
infrastructures. It also represents one more device handling data packets
contributing to existing inefficiencies. By eliminating the need for a router
TeraCOM also eliminates the expensive skilled labor necessary to keep them
running. The TeraCOM Client software is a user friendly, highly integrated
application that resides on a TeraCOM Client computer.
MANAGEMENT. TeraCOM provides the Manager software to allow a subject
matter expert to control a communication session. The Manager software allows
any user on the ServiceCell to contact any other user with a single mouse click.
In addition, the Manager software can provide information concerning who is
actively on the
system at any point in time, as well as limit access to the system or certain
client stations from other client stations. In a point-to-multipoint broadcast
situation, the Manager software lets the subject matter expert distribute
prepared course content to selected users. For the participants of the multicast
session, the Manager software facilitates the electronic equivalent of raising
your hand. Once a participant has notified the subject matter expert of his or
her desire to comment, the Manager software enables the audio and video of a
session participant to be broadcast to every user in the session or privately
transmitted to the subject matter expert.
ASSESSMENT. Assessment can be the most expensive and time-consuming
aspect of effective communication. In the corporate training or distance
education contexts, the time required to evaluate and administer exams makes
assessment impractical. Automating and facilitating the assessment process can
therefore be the key to assuring effective communication. The ability to
automate the assessment process is the essence of the TeraCOM solution. TeraCOM
uses next generation database architecture designed for real-time communication
networks. This architecture includes a mechanism for keeping track of every
user's actions at all times. This information, called an "audit trail" tracks
every user's activities and what data they access. It is this new data structure
implementation that facilitates responsive interaction and subsequently
real-time assessment. By analyzing the accumulated audit trail the administrator
software knows who has accessed what data, when, for how long, and what they did
with it. This audit trail can be used, for example, to give online examinations,
with immediate feedback to the subject matter expert on the individual answers a
student gives, the percentage of correct answers, and the amount of time it took
to develop each answer.
HELP-DESK AND SECURITY. TeraCOM provides a remote security software
package due to the necessity to deliver accredited course material,
certification of skill mastery, and to control access to sensitive content. This
security software allows a security agent to validate, confirm, monitor, or
limit in any way desired the actions of any user on any TeraCOM Service Cell. By
hitting the clearly presented Help Desk button in any TeraCOM software package,
the user is connected to a member of the TeraCOM Help-Desk staff. The Help
Desk-staff member can either talk the user through the resolution of their
problem or take control of their computer and solve the problem remotely.
TERAMEDIA-TM-. TeraMEDIA-TM- is an enhanced version of TeraCOM,
being developed with all the functionality of TeraCOM plus the capabilities
that are specific to the film production, post-production and commercial
production companies. With enhanced hardware and software, TeraMEDIA-TM- will
cost effectively and securely transfers full motion, real-time, video and
audio over a secure network. The Company is currently working with industry
participants to define their needs and the final specifications of
TeraMEDIA-TM-.
TeraSCANNER. The Company is in the final stages of delivering of a
USB-based (Universal Serial Bus) fingerprint scanner for the Power MacIntosh
and the new iMac line of Apple computers. The current labor cost to the
industry of issuing, maintaining and re-issuing passwords is growing. Through
the use of the TeraSCANNER, which includes both hardware and software,
network managers can provide a more secure, economical, and intuitive means
to control access. The TeraSCANNER can be used to grant prescribed levels of
access or restriction at any time in the communications process. The Company
will be using the TeraSCANNER for account management and accredited course
content delivery in its TeraCOM Service for the corporate training and
distance education markets.
There are a number of current and potential applications for the
TeraSCANNER. In the corporate and government settings, database access can be
limited for specified individuals. In addition, multiple users can use a
single computer without having access to the other users' information.
Parents or businesses can restrict access to Internet sites. Internet
commerce transactions using credit cards can be validated through fingerprint
signatures. In the education arena, sign on times and testing can be
validated.
KEY FEATURES AND TECHNOLOGY
The Company's TeraCOM service will provide unique features and services
compared to other product and solutions because of its core base of proprietary
and licensed technology, including the following:
ADVANCED SOFTWARE-BASED VIDEO COMPRESSION. TeraCOM includes the
Company's highly optimized Wavelet software for the compression/decompression
of video. Video presently places the greatest demand on communication
bandwidth. Low compression ratios for video translate directly into a vastly
more expensive communication infrastructure in order to move data packets. By
offering a higher quality of video that simultaneously requires less
bandwidth, TeraCOM can deliver a low cost to performance ratio. Moreover,
because of the extent of data compression, each TeraCOM Client can send and
receive the highest quality video simultaneously to any number of users
during a communication session. For a fraction of what it currently costs to
broadcast one way video to a large body of viewers, TeraCOM can provide
two-way interactive video. The fact that the video compression is software
based is critical as well. Updates to the compression can be implemented
remotely through the network. The focus on software also reduces the
necessity for expensive short-lived hardware.
ADVANCED PROCESSING POWER. For the TeraCOM solution to deliver
real-time performance, deal with multiple video streams, and handle complex
media types (3D graphics, virtual reality, and advanced simulations) a next
generation microprocessor was required. After researching the capabilities of
all new processor technologies, the Company selected Motorola's new PowerPC
microprocessor on all of its computers. Based on the Company's research,
there is currently no other processor from any other vendor that can deliver
the performance of the PowerPC.
ROUTERLESS NETWORK TOPOLOGY. The Company has a patent pending on its
network topology. The TeraCOM ServiceCell takes advantage of the Company's
wavelet compression module and the processing power of the PowerPC
microprocessor to distribute data across the network without the use of
routers. The routerless design eliminates a majority of the capital cost to
build a network, reduces complexity, and lowers operational labor costs. In
addition, the absence of routers allows data packets to be distributed across
the network faster than in a router-based network.
ATM TO THE DESKTOP. The Company's software compression and the
processing power of the PowerPC Microprocessor allow the Company to deliver
ATM-based communications to the desktop. ATM is a communications networking
technology that carries voice, video and data in fixed 53 byte cells which
allows the network to carry any type of information and provide stringent
service qualities. TeraCOM's design matches the guaranteed access and data
transmission capacity of ATM with cost-effective high performance work
stations.
GUARANTEED "CONNECTIONLESS" ACCESS. On a TeraCOM ServiceCell every
communication terminal is always connected to every other communications
terminal. This eliminates the need to dial a phone number or enter in IP
address. The process of establishing communication consists simply of selecting
the individual recipient or recipients of a transmission. Moreover, the system
can identify whether an intended recipient is on the system and whether the
recipient is currently on another session. This information can dramatically
improve the efficiency of communicating with large groups of individuals. In
addition, access to the system is guaranteed. Every TeraCOM Client terminal
permanently owns one two-way communication channel to its respective TeraCOM
Server. Unlike existing telephone and Internet systems, a TeraCOM Client cannot
experience a busy signal. Through TeraCOM's service, a TeraCOM Client always has
access to the information on a TeraCOM Server.
BACKWARDS COMPATIBILITY. A TeraCOM ServiceCell is a secure private
communications network. Each ServiceCell can, however, be connected to other
networks including corporate Intranets as well as the Internet, with the same
level of performance inherent in those networks. Each TeraCOM Client
communication terminal has the ability to interoperate with all major digital
media assets, allowing users to import/export all major audio, video, and
graphic formats. Through this backwards compatibility, TeraCOM can protect a
customer from losing a past investment in technology and software while
supporting an entirely new set of critical communication capabilities.
SINGLE SOURCE SOLUTION. TeraCOM is a single source solution, delivering
a complete, integrated multimedia communications network. The Company charges
the service based upon a monthly service fee. The service fee includes all
hardware, installation, software, upgrades, bandwidth, network management and
hardware maintenance necessary to provide a turnkey service. The Company
maintains ownership of all of the hardware that is a part of the ServiceCell.
This removes the burden of repair, maintenance and replacement from the
customer, and places it on the Company, which is developing and operating the
service. The TeraCOM service is fully supported, with a 24 hour, seven day a
week Help-Desk. Because of the system design, a Help-Desk staff member can take
control of any
TeraCOM Client communication terminal and do anything from
demonstrating for the user how to use the system to installing an upgraded
software package.
CONTINUOUSLY UPGRADEABLE. The TeraCOM Service, including both its
hardware and software aspects has been developed in a manner that allows it to
be upgraded. Every component of the TeraCOM ServiceCell can be selectively
upgraded at any time. This network design enables the Company to upgrade the
service, for example, as faster processors and bandwidth become available.
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