Telecom Industry News Roundup: April 2000

Strategic Insights -

Major players in the telecom industry made several significant moves in the week of April 21, 2000, further shaping the landscape of broadband technology, global Internet access, and digital services. Amidst these developments, key concerns about innovation, accessibility, and competition remained central to the industry's progress.

Key Takeaways:

  • America Online (AOL) denied allegations of blocking e-mail from Pacific Bell's high-speed DSL customers, attributing the issue to a minor technical glitch.
  • AT&T announced it would not influence programming at cable television properties acquired through its pending MediaOne acquisition, in an apparent move to appease federal regulators.
  • The Insight Research Corp. reported that the US cable-modem industry will maintain its lead over DSL broadband technology for at least five years, contradicting a study by Cahners In-stat Group suggesting DSL would overtake the market by next year.
  • A Frost & Sullivan report predicted an impressive rate of growth in the global Internet roaming market.
  • SBC Communications and Cisco Systems partnered to accelerate the delivery of open-standard IP services to customers.
  • Asia Pacific carriers invested in a $1 billion submarine cable network project, while 26 carriers signed up to lease capacity on the Asia Pacific Cable Network 2.
  • President Clinton announced that major tech companies would offer $100 million in cash and product donations to bridge the digital divide.
  • The President proposed increasing telecom taxes to fund universal service for Native American communities.
  • Net2Phone introduced a new non-PC Internet telephony service, Your Alternative Phone (YAP), designed for non-PC users.
  • AT&T and Microsoft considered a potential merger in the Japanese cable Internet market.

Statistics:

  • $1 billion: The estimated investment in the Asia Pacific submarine cable network project.
  • $100 million: The cash and product donation pledged by major tech companies to address the digital divide.
  • "$100M Digital Divide Dollars": The amount donated to help bridge the technology gap in lower-income communities.
  • 26: The number of Asia Pacific and global telecom carriers signing up for the submarine cable network project.
  • 20: The number of carriers that have already leased capacity on the Asia Pacific Cable Network 2 (APCN 2).
  • 5 years: The time frame during which the US cable-modem industry is expected to maintain its lead over DSL technology.

Sources:

  • "AOL Not Blocking Pac Bell E-Mail, Phone Co. Says" - Newsbytes.com
  • "AT&T Seeks To Appease FCC In MediaOne Cable Acquisition" - Newsbytes.com
  • "Cable's Broadband Lead Over DSL Remains Solid - Report" - Newsbytes.com
  • "Growing Market For Global Internet Roaming - Report" - Newsbytes.com
  • "SBC, Cisco Ally To Deploy Open-Standard IP Services" - Newsbytes.com
  • "Asia Pacific Carriers Invest In $1Bil Cable Project" - Newsbytes.com
  • "IT Industry Ponies Up $100M Digital Divide Dollars" - Newsbytes.com
  • "Clinton Proposes Telecom Tax Hike For Universal Service" - Newsbytes.com
  • "Net2Phone Intros New Non-PC Net Products" - Newsbytes.com
  • "AT&T, Microsoft Eye Japanese Cable Market" - Newsbytes.com
  • "Telecom Week in Review Now Available Direct by E-mail" - Newsbytes.com
  • Reported by Newsbytes.com, http://www.newsbytes.com (20000421/WIRES TELECOM, BUSINESS/TELEWEEKREV/PHOTO)