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To: debra vogt who wrote (41479)	5/21/1999 8:02:00 PM
From: violatrader	Respond to of 120523

Search I@W Search by Issue NEWS & VIEWS B2B Commerce B2C Commerce Data Networks Infr@structure Web Computing Strategy & Policy Financial News @ Net Index E-Mail Alert RESOURCES Subscription Info Industry Events Ad Marketplace Ad Index 99 Edit Calendar ABOUT US General Info Copyright CONTACT US Editorial Sales Operations Web ADVERTISING SUPPLEMENTS CTI Trends 2 Web Host 4 Web Host 3 CTI Trends Web Host 2 Web Host 1 VPN Solutions 2 VPN Solutions 1 What does everyone think about this??? AboveNet Close To PAIX Buy By Randy Barrett May 21, 1999 5:01 PM ET AboveNet Communications is in final negotiations to buy the Palo Alto (Calif.) Internet Exchange for an undisclosed sum. The news that the exchange will fall into the hands of a commercial Internet provider sent waves through the backbone industry. The exchange, where national and local networks trade Internet Protocol packets, is a major intersection for West Coast Internet traffic and one of six leading public connection points on the Net. PAIX originally was developed and operated by Digital Equipment, but it now is owned by Compaq Computer. Inter@ctive Week has learned from sources close to the deal that AboveNet plans to buy and operate PAIX under a separate management board and that the focus and operation of the facility are likely to remain the same. Exchanges traditionally have been owned by telephone companies that were generally perceived to be neutral. Since it never has been owned by a carrier, PAIX is especially viewed as a networking Switzerland, industry experts said. "It would be better for it not to be [owned by] AboveNet," RMI.Net Chief Technical Officer Robert Laughlin said. Executives at other backbone operators were similarly negative on the idea that PAIX soon will be owned by a competitor. "How can you be an Internet provider and be an exchange too?" asked one executive who did not want to be named. Craig Labovitz, chairman of the North American Network Operators Group, a network service provider professional organization, wouldn't comment on the impact of the sale, but he said: "It's an interesting move. It's something we haven't seen before." Compaq officials could not be reached for comment. PAIX has a good reputation among network operators as an exchange that is well-managed and well-operated. AboveNet's motive for buying PAIX is unclear. The San Jose-based company provides long-haul transit of traffic between two very large data centers on the East and West coasts; it is expanding its colocation and content delivery business to Europe. The likely sale to AboveNet comes as many question the future of public exchanges in the evolution of the Net. Metropolitan Access Exchange East and West have been roundly criticized by MCI WorldCom for high packet loss and poor upkeep. Most large networks avoid the public exchanges altogether and trade traffic privately among themselves. Talkback Post Talkback no comments have been posted yet Today's Top News Updated May 21, 1999 5:03 PM ET AboveNet Close To PAIX Buy M'soft vs. DOJ: AOL's Case Deposed About.com Enters Novel Partnership MindSpring Offers Cable ISP Service In Georgia Is Web Usage On The Decline? Linux Site Off To A Good Start Cisco Leads Charge Into IP-based Services Excite Ends Partnership With Netscape MTV Taking More Music Online 3Com To Launch Wireless Palm Amazon.com Files To Raise Another $2 Billion EToys Prices IPO At $20 A Share Nortel Spins Off Elastic Networks NCI Becomes Liberate Technologies VC Launches Convergence Fund Related Stories Updated May 21, 1999 5:01 PM ET AboveNet Plans European Expansion AboveNet Posts Higher Revenue, Loss I@W E-MAIL ALERT Want to stay on top of all the news and special features on Inter@ctive Week Online? Then subscribe to the I@W E-Mail Alert. Sponsored Links IT Intelligent Storage? Get smart with Jini Technology! Careers Hi-Tech Jobs, Salary Surveys, Discussions, and more! Contest Win a FREE Compaq laptop, a palm-size PC and more! Very Cool X10.com - DVD Anywhere - from your PC - check it out! Books All NYT Bestsellers 50% off @ BARNES & NOBLE ZDNet Featured Links Freebies 50 FREE downloads -- the top programs of the year Bargains! Shop the Basement for best buys on computer products Learning FREE, convenient web/PC classes to try at ZDU now! Magazine Offers Free Issue Get a risk-free issue of RED HERRING magazine today! Reviews \| News \| Downloads \| Shop \| MyZDNet \| Games \| ZDTV \| Forums AnchorDesk \| PC Magazine \| PC Week \| Help! \| Yahoo! Internet Life HOME \| FREE MEMBERSHIP \| CONTACT ZD \| AD INFO \| ZIFF-DAVIS Copyright (c) 1999 ZD, Inc. All Rights Reserved. Reproduction in whole or in part in any form or medium without express written permission of ZD, Inc. is prohibited. Inter@ctive Week and the Inter@ctive Week logo are trademarks of ZD, Inc.