Gary, Gerard, and All,
The following article is a must read.
For investors who interpret the article as a warning of a significant and eventual competitor to NTOP, it might explain why IDTC has been selling off over the last week. However, I am of the opinion, that it is extremely positive for NTOP. Rather than being a harbinger of bad news, it validates NTOP's approach of simultaneous Voice and Data, over the Internet,/over copper telephone lines. For any Telco that thought this application was still off in the future, time has run out. Telcos must now immediately scramble to put out a viable Voice over Net Strategy. Enter IDT/NTOP.
While this is my take, (someone who writes market strategy), I would appreciate hearing from some of you who are more technical than I. Please help us evaluate what the potential effect on IDT, might be.
Jules
======================
Rhythms and MCI WorldCom Complete Unprecedented Voice and Data Over DSL Test
Proof-of-Concept with Cisco and Jetstream Communications Delivers Voice And Data Access Over DSL-Enabled Standard Phone Line
ENGLEWOOD, Colo., June 4 /PRNewswire/ -- In a ground-breaking test completed this week, Rhythms NetConnections Inc. (Nasdaq: RTHM), and MCI WorldCom (Nasdaq: WCOM), in conjunction with Cisco and Jetstream Communications, successfully demonstrated toll-quality voice and high-speed data communication over a DSL-enabled copper phone line in New York City. Together, Rhythms and MCI WorldCom are developing next generation DSL networking solutions, including integrated voice, data, and Internet access and applications. Rhythms is a leading provider of DSL-based, high-performance networking solutions for remote access to private networks and the Internet.
The trial is part of Rhythms' and MCI WorldCom's evaluation of Jetstream's enhanced CPX-1000 gateway designed to handle local voice and data access over DSL. Jetstream is a supplier of broadband access solutions for next- generation local telecommunications networks.
In the demonstration, phone calls and Internet access were delivered simultaneously over a single DSL line. A telephone was plugged into an analog voice port on a Jetstream Integrated Access Device (IAD), while a PC was connected to an Ethernet port on the IAD. The Jetstream IAD was connected via the Cisco 6100 DSL Access Concentrator to Rhythms' DSL network. Voice calls were then transported via Cisco's 8650 BPX IP+ATM switches, through Jetstream's CPX-1000 voice gateway interface with MCI WorldCom's Class 5 PSTN (public switched telephone network) switch over MCI WorldCom's ATM network. Data traffic was transported to the Internet and also could be directed to a corporate LAN.
"This success is a significant advancement in Rhythms' and MCI WorldCom's development of voice and data over DSL," said Jim Greenberg, Chief Network Officer at Rhythms. "This type of solution can address the needs of corporations with remote workers and branch offices that must have high performance, the flexibility of both voice and data capabilities, and cost-effective management to justify outsourcing remote network management."
Voice and data over DSL offers the advantages of DSL connectivity including always-on, high-speed remote access, plus the benefits of multiple local access phone connections over a single copper twisted-pair line. Jetstream's CPX-1000 large-scale voice gateway and IADs support ATM-based DSLAMs, such as the Cisco 6100 Series, DSL Access Concentrators, which are widely deployed throughout Rhythms' network. Voice and data over DSL also provides bandwidth on demand, as when the phones aren't on, the data connection receives all of the bandwidth.
"MCI WorldCom is working with Rhythms to transform DSL from an Internet-only technology to a business critical broadband access method for companies requiring integrated access to a wide variety of enterprise applications," said Brian Brewer, Senior Vice President of Business Marketing at MCI WorldCom.
"Jetstream's IADs and gateway offer innovative competitive local exchange carriers, such as Rhythms and MCI WorldCom, the means to provide customers both high-speed data and traditional voice services that they won't outgrow," said S. 'Sundi' Sundaresh, President and CEO of Jetstream.
"We are pleased to be a part of this ground-breaking test demonstrating voice and data over DSL," said Tim McShane, Director of Marketing for the DSL Business Unit at Cisco. "Voice and data over DSL is an important value-added New World service that will enable leading-edge companies like Rhythms and MCI WorldCom to expand their market penetration and generate additional revenue."
Today's announcement marks a milestone for Rhythms and MCI WorldCom's strategic alliance announced in January. The partnership was forged based on the promise of jointly developing services that would give customers the cost efficiencies inherent in DSL technology for a wide range of critical networking applications.
Rhythms provides managed network services for business users, based on "always on," high-speed DSL access via local connections ranging in speeds from 128 kbps to 7.1 Mbps (approximately 125 times the speed of today's fastest dial-up modem). Pricing for customers is based on integrated pricing for leased, fully managed networks and includes configuration, installation, equipment and network management. Because the Rhythms network design requires no equipment purchase by the user and optimizes both local and wide area network capacities, the acquisition price for customers is generally 30 to 50 percent less than other high-speed services.
About Cisco Systems
Cisco Systems, Inc. (Nasdaq: CSCO) is the worldwide leader in networking for the Internet. News and information are available at cisco.com.
About Jetstream VoDSL
Jetstream's VoDSL broadband access solution enables ICPs to deliver multi-line local telephone service and high-speed data services over packet-based DSL access networks. It consists of three components. The first, the CPX-1000, is a large-scale voice gateway that resides in a carrier's regional switching center and serves as a bridge between a Class 5 voice switch and a DSL access network. The second component is a family of integrated access devices (IADs) provided by Jetstream and its partner companies. IADs connect to a DSL line at subscriber premises and deliver 16 or more telephone lines and continuous high-speed Internet or remote LAN access. The last component, Jet-EMS, is a carrier-class element management system enabling rapid deployments of large scale VoDSL networks.
About Jetstream Communications
Jetstream Communications Inc., the leader in Voice over DSL solutions, develops, manufactures, and markets broadband access products for next generation local telecommunications networks. Jetstream's products are rapidly becoming the standard for integrated voice and data service delivery to the small business and high-end residential communications markets. Based in Los Gatos, California, Jetstream is a privately held, venture-backed company led by a seasoned management team consisting of veterans from both the telecommunications and data communications industries. Investors include Mohr, Davidow Ventures, Crosspoint Venture Partners, Mayfield Fund and Canaan Partners.
About MCI WorldCom
MCI WorldCom is a global leader in communications services with 1998 revenues of more than $30 billion and established operations in over 65 countries encompassing the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier provider of facilities-based and fully integrated local, long distance, international and Internet services. MCI WorldCom's global networks, including its state-of-the-art pan-European network and transoceanic cable systems, provide end-to-end high-capacity connectivity to more than 40,000 buildings worldwide. MCI WorldCom is traded on NASDAQ under WCOM. For more information on MCI WorldCom, visit the World Wide Web at wcom.com.
About Rhythms
Rhythms NetConnections Inc. is an Englewood, Colorado-based business with commercial services in San Diego, San Francisco, Oakland/East Bay, San Jose, Sacramento, Los Angeles, Orange County, Chicago, Boston, New York, Philadelphia, Washington, D.C., Detroit, and Denver. The company is a provider of networking solutions for businesses, using DSL technology to provide high-speed remote access to private networks and the Internet. Telecommunications services for Rhythms are provided by ACI, a wholly owned subsidiary of Rhythms. For more information, call 1-800-RHYTHMS, or visit the Web site at www.rhythms.net.
This news release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially because of various risks. These risks include risks associated with the demand and competition for the services and products to be sold by Rhythms, the continued availability of adequate financing to support our activities, the timing of rollouts in additional regions, the number of potential customers who could access such services, and our dependence on third parties for services such as providing collocation and transmission facilities, providing marketing and sales efforts, and supplying and installing equipment. For an expanded discussion on these and additional risks associated with Rhythms' business, please see the documents filed by Rhythms NetConnections Inc. with the U.S. Securities and Exchange Commission.
SOURCE Rhythms NetConnections Inc. |
