**Internet Stock News Announces Investment Opinion**
Business Wire - June 29, 1999 07:13
SAN DIEGO--(BUSINESS WIRE)--June 29, 1999--
INTERNET STOCK NEWS 6/29/99 Insight For The Intelligent Internet Investor
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One stock that we continue to hear good things about is Starnet Communications (OTC BB: SNMM). The company's earnings, due out in July may be higher than anyone expects. Within the next month and a half, SNMM expects to announce its Nasdaq National Market listing which would dramatically increase the company's visibility. This week, the company also announced that its wholly owned subsidiary, Softec Systems Caribbean Inc. ("Softec") has licensed its proprietary Internet gaming technologies to Jewel Holdings Ltd. and Universe Investments Inc. Jewel and Universe will be provided with a customized, integrated Internet gaming system including virtual casino games, a Sportsbook with real time odds feed from Las Vegas and Europe, and simulcast horse and dog racing (no wagers taken at this time). The licensee's customers will be able to place wagers via a secure online financial transaction system.
I am frequently asked which high speed Internet access technology I think will win, cable or xDSL? Whether there ever will be a clear cut winner is difficult to say, but the limitations of existing technology today demands that companies consider both - as well as other options.
Cable appears to have a head start on the others. For it to be available in all areas, the existing cable must be upgraded to allow two way data flow, usually involving the installation of hybrid fiber coax (HFC). Completely upgrading all of the systems in the US will cost many $ millions and at least 3 years time. Even then, cable might only reach two - thirds of the population in the US. Most cities, surprisingly, are not wired for cable; only the suburbs and towns. (This provides a window of opportunity for a company like Internet Ventures, which offers high speed Internet access through cable systems that have not yet been upgraded. This requires using a telephone line for uploads. Internet Ventures is currently performing a private placement offering at $7.50 per unit, 1000 unit minimum purchase. Contact Investor Relations at E-mail: info@perki.net or Phone: 1-800-701-7020 for more information.
xDSL is a high speed technology using the existing copper telephone lines. To be made available, the telephone company (telco) must test and sometimes "decondition" the phone lines. A telco rep must also visit the customer premises and install a splitter and the xDSL modem. This personal touch is expensive, which is why there is currently a push for a new "splitterless" xDSL technology (sometimes called gDSL or "DSL Light"). The major problem with xDSL is that a customer needs to be within several miles of the telco central office in order to receive adequate signal strength.
Contrary to the beliefs of some, there is no "market leader" in the xDSL industry. There are a great many players and a great many variants on DSL technology (the "x" prefix is used to represent all of them). We support mPhase Technologies, Inc. (OTC BB: XDSL). They are able to offer telcos a complete turnkey package using a proven system based on their RADSL (Rate Adaptive Digital Subscriber Line) technology which can deliver 80 channels of digital television programming, 1 MB of high-speed Internet access and traditional voice services over the existing local loop infrastructure.
So, we may have cable in the country and xDSL in the city. For the middle, we have to consider wireless. It is very early in the game here, but we have to look at MCI WorldCom (Nasdaq:WCOM), Sprint (NYSE: FON) and Nextel (Nasdaq: NXTL) as being potential leaders here. The big problem with wireless is the mode of transmission itself: line of sight. It is extremely difficult (and expensive) for wireless to be a viable option in hilly or mountainous terrain like San Francisco.
The last known means of high speed Internet access is satellite. It has been largely ignored until this week. America Online, Inc. (NYSE: AOL) and Hughes Electronics Corporation (NYSE: GMH) announced a strategic alliance to develop and market uniquely integrated digital entertainment and Internet services nationwide. Hughes and America Online will market the DIRECTV/AOL TV package to America Online's more than 16 million AOL and CompuServe members in the U.S., as well as to millions more consumers of its Internet brands. Hughes also will market AOL TV to its more than 7 million current DIRECTV subscribers. As part of the deal, AOL will make a $1.5 billion investment in Hughes.
Like all the other technologies, satellite has disadvantages. In this case, you must use a telephone modem to upload data, just like a cable system that has not yet been upgraded. Its download speed is also slower than the other three, about 400 KBPS maximum. The big advantage for AOL? Through Hugh's network, the service could be available to nearly every man, woman and child living in the US.
General Magic (Nasdaq:GMGC) announced that Excite@Home (Nasdaq: ATHM) has made a $6 million investment in General Magic. The two companies also announced General Magic's magicTalk(TM) voice user interface will be used in Excite@Home's new Excite Voicemail service. The service gives consumers the ability to receive and access voicemail and fax messages in their e-mail accounts using a toll-free number and a personal extension. I envision a day soon when we can communicate by voice or data from an inexpensive hand held wireless device using the Internet instead of the telephone network.
CNET, Inc. (Nasdaq:CNET) announced a partnership with ebetween, a subsidiary of Phoenix Technologies Ltd. (Nasdaq:PTEC), providers of system-level software used in more than 70 million new PCs sold, to offer PC users direct access to CNET from the desktop. ebetween's initial contract with CNET is for "Sequencer," a new product category called Virtual Bundling Technology (VBT). VBT will provide a unique "first look" position on the desktop for immediate user access to CNET. To put it simply, CNET will be loaded into your Bios. Boot up your PC and you're ready to go to CNET! Lycos (Nasdaq: LCOS) also announced a similar arrangement with PTEC.
Most important for Lycos, however, is the deal with IBM (NYSE: IBM) to act as the web portal in Lotus Notes. This potentially exposes Lycos to 37 million Lotus Notes users worldwide. A very big deal indeed!
InfoSpace.com (Nasdaq:INSP), and privately held Global Mobility Systems announced an agreement for InfoSpace.com to deliver Web content and interactive Internet services to national wireless carriers. The service is available today on existing digital phones and wireless networks. This agreement gives InfoSpace.com immediate access to 25 million digital subscribers from wireless service providers such as AT&T Wireless (NYSE: T), AirTouch Communications (NYSE: ATI) and Sprint PCS (NYSE: FON), among others. This could be a major revenue source for INSP down the road.
Metromedia Fiber Network, Inc. (Nasdaq:MFNX), an international provider of dedicated fiber optic networks and AboveNet Communications Inc. (NASDAQ: ABOV), the architect of a global one-hop network that brings together high-bandwidth content sites and ISPs, announced that they had entered into a merger agreement. Under the terms of the agreement, AboveNet will become a wholly owned subsidiary of Metromedia Fiber Network, Inc. I think these companies will make beautiful networks together!
Healtheon Corp. (Nasdaq:HLTH) and Yahoo! Inc. (Nasdaq:YHOO) announced a content and online marketing agreement Healtheon will have an integrated presence on Yahoo! (R) Health (http://health.yahoo.com), be a featured sponsor of the health channel on Yahoo! Chat (http://chat.yahoo.com) and appear in health-related areas of Yahoo! News (http://dailynews.yahoo.com).
Next week, we have several rumors that may develop more fully. CMGI (Nasdaq:CMGI) is reportedly in talks with Compaq (NYSE: CPQ) to purchase the Alta Vista web properties. Next, Dell (Nasdaq: DELL) is reported to be buying ISP Earthlink (Nasdaq: ELNK). We likely will see a 1/4 point hike in interest rates when the Fed meets, and we may have a few companies providing us with earnings warnings. All in all, I expect the markets to be mostly down. I believe the potential still exists for the NASDAQ Composite to go below 2039.17 if the 2345.61 level is broken first. Keep looking for bargains!
Sincerely, Internet Stock News Insight For The Intelligent Internet Investor internetstocknews.com
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DISCLAIMER:
This Internet Stock News press release contains independent and objective commentary about Internet stocks. This service is provided by Internet Stock News which is a web-based media entity. Pursuant to SEC disclosure requirements, the editors, employees, and directors of Internet Stock News and IP Equity, Inc., the publisher of Internet Stock News, are believed to hold no more than the following amounts of shares (long positions) in the following companies mentioned in this press release: fifteen thousand shares of CMGI, Inc., six thousand shares of Excite@Home, Inc., and one hundred thousand shares of Starnet Communications, Inc. In addition, IP Equity has been compensated with no more than three hundred four thousand dollars for providing financial services for mPhase Technologies, Inc.
CONTACT: IP Equity Internet Investments
Dan Mutters, 1-800/997-3323
Dan@ipequity.com
(For Interview Scheduling & Venture Investments)
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