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To: Chemsync who wrote (11368)6/9/1998 6:52:00 AM
From: Karl Brandt  Read Replies (1) | Respond to of 21342
 
Say goodbye to a Microsoft/Nortel Deal:

Northern Telecom, Microsoft to Bundle Internet-Access Products

Brampton, Ontario, June 9 (Bloomberg) -- Northern Telecom
Ltd., the second-largest maker of phone equipment in the U.S.,
and Microsoft Corp. are expected today to announce an agreement
to sell Northern Telecom's modems with Microsoft software to
phone companies that want to provide high-speed Internet access.

Northern Telecom is also expected to select Microsoft's
Windows NT operating system as the computer ''platform'' for
running software that lets carriers provide phone calls over the
Internet.

The two companies want to be the foundation for how
consumers and businesses get next-generation high-speed Internet
access. The agreement combines the marketing power of Microsoft,
the largest independent software maker, with Northern Telecom's
long-standing relationships with phone company customers.

Northern Telecom's 1-Meg modems, which transit as much as a
million bits of information a second, will be sold with
Microsoft's NT and other operating systems as well as its Netshow
software for getting video over the Internet. That compares with
traditional modems that typically transmit 28,800 bits a second.

The companies are expected to train salespeople to sell both
products and jointly to develop future applications.

As part of the agreement, Microsoft is expected to endorse
Northern Telecom's technology for adoption by the universal ADSL
working group, the body that's working to set standards for new
asynchronous digital subscriber line, or ADSL, modems that send
information at higher speeds over copper phone lines.

The group is led by Microsoft, No. 1 PC maker Compaq
Computer Corp. and chipmaker Intel Corp. and includes several of
the largest U.S. phone companies.

Northern Telecom, in turn, would adopt Microsoft's Windows
NT as the operating system for applications used to transmit
voice calls over the Internet. That would require phone companies
to buy NT to offer the services, which include a feature that
lets an Internet user click a button on a Web site to be
connected to an operator and a call-waiting service that notifies
a user on the Web of incoming phone calls.

Shares of Brampton, Ontario-based Northern Telecom rose 5/16
to 63 9/16 yesterday. Redmond, Washington-based Microsoft fell
9/16 to 85 11/16.
--Andrew Brooks in Atlanta through the San Francisco newsroom (415)
912-2980/smw

.

c Copyright 1998, Bloomberg L.P. All Rights Reserved.



To: Chemsync who wrote (11368)6/9/1998 7:46:00 AM
From: A. Reader  Read Replies (1) | Respond to of 21342
 
The DSL Threat: U S West Plans 20 More Cities

Jun 8, 1998 (CABLEFAX, Vol. 9, No. 109) -- U S West [USW] announced the second phase of its 40-city DSL rollout with plans to enter 20 more markets by the end of July. Communities in Washington, including Seattle/Olympia, Spokane/Tacoma and Bellingham, will be up by mid-June, says the RBOC. Availability of the service is still limited; only about 30% to 40% of Denver residents, for example, are close enough to a central office to receive it. U S West says that number should rise to 80% by the end of this year as technology advances. The additional rollout shouldn't cause additional concern for cable ops, says Janco Partners analyst Ted Henderson. DSL remains a threat, but cable ops need to stay on their toes and continue rolling out their service. On an apples- for- apples basis, cable modem service still remains the more attractive option at $40 a month for about 1Mbps to 1.5 Mbps, compared to about $120, plus ISP charges, for DSL service at 1Mbps. Residentially priced service for 256K is $40, plus ISP charges. While the service is priced more attractively for businesses, U S West says 60% of its DSL customers are residential, but those may be home-based businesses. Other markets to be launched by July include: Colorado Springs; Ames, IA; Cedar Rapids, IA; Council Bluffs, IA; Des Moines, IA; St. Cloud, MN; Helena, MT; Albuquerque; Las Cruces, NM; Los Alamos, NM; Santa Fe, NM; White Rock, NM; Corvallis, OR; Eugene, OR; Portland/Salem, OR; Sioux Falls, SD; and Cheyenne, WY.
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