To: H James Morris who wrote (61354 ) 6/9/1999 8:59:00 AM From: Glenn D. Rudolph Respond to of 164684
INTERVIEW-Web wait threatens E-commerce - Nortel By Neil Winton, Science and Technology Correspondent MONTE CARLO, June 9 (Reuters) - Delays on the Internet are frustrating new subscribers and are endangering the future of electronic commerce, Nortel Networks Corp <NT.TO>, the Canadian telephone equipment company, said. Kurt Bertone, Chief Technology Officer, Nortel Networks Europe, said aggravating time lags often occur because software and personal computers sold to consumers often cannot meet the claims they make in their sales pitches. He conceded that inefficient telephone networks were also contributing to delays. Nortel was dedicated to building telephone networks to alleviate the problem, which threatens to derail the runaway success of the Internet, said Bertone. Nortel Networks was formed through the acquisition nine months ago of Bay Networks of the United States by Canada's Northern Telecom. "We have estimated that 2.5 billion hours were wasted during web-site downloading in 1998," Bertone said in an interview. This figure added up to a massive amount of frustration for businesses and consumers waiting endlessly in front of their personal computer screens to read news and information, or complete electronic commerce deals. "We estimated the number of global page hits in the year and the average time it took to download. It gives a general idea about Internet performance. It's a simplistic way to look at how long it takes to download a web page but it shows how people would get frustrated waiting," Bertone said. "What's interesting to us is what really is the cause of delays, because it could be different things. It's not always the network, a lot of times it's the server that's overloaded and it just can't handle all the traffic. We want to identify where the bottlenecks are occurring and eliminate them. "There is a threshold and its different for individuals but there is a point where a person says this is crazy, the thing doesn't work, I'm not going to do this any more." Last month Compaq Computer Corp <CPQ.N> published a survey which found that anger generated by failing technology was becoming an issue in the workplace. Bertone, who earlier had addressed U.S. research company IDC's eCommerce Forum, agreed that this issue, labelled "technology rage," was a problem for the information technology industry. "I think sometimes the industry oversells its products. There is sometimes a gap between expectation and reality." Bertone said Nortel Networks products would help to boost the efficiency of Internet networks, and persuade Europeans to embrace the Internet. "Europeans need low cost connectivity. You need to have low cost transmission capacity. This is one of the areas where Europe lags the U.S., but soon this won't be true. We are building huge high speed optical transmission networks all over Europe now. There were eight of these type of networks built over Europe last year and we built six of them." "You need a regulatory environment that forces service providers like PTTs to make that bandwidth available at a competitive price, and that's happening too." On Tuesday, Nortel Networks announced a series of strategy moves which it said would unify voice and data telephone services, and give it a competitive advantage over its main rivals Cisco Systems Inc <CSCO.O> and Lucent Technologies <LU.N>.