IP Telephony News Wrap-up for Jan, 14 1999

Qwest Gearing Up to Become Major U.S. ITSP

Qwest is preparing to be the U.S.’ premiere ITSP, releasing a series of
announcements indicating that it is aggressively expanding its network and
on-track to introduce telephony services at 7.5 cents a minute. Qwest has
just announced that it is extending its network to Europe via exchanged
assets with Teleglobe Inc. In the exchange, Teleglobe will use Qwest’s
network to expand its reach into the U.S. market. In return,
Qwest will gain access to two of Teleglobe’s 155 megabit circuits crossing
the Atlantic Ocean from New York City to London, and be provided with the
option to access two additional circuits.

Last week, Qwest reported that it had acquired Colorado-based Phoenix
Network, a service provider offering long distance, Internet access,
enhanced facsimile services, international callback, and conference
calling. The deal is valued at $32.5 million, with $4 million in cash and
the remaining in common stock.

In a separate announcement, Qwest reported that it had finalized an
agreement with Apex Global Internet Services to provide the company
with access to its network. The deal gives AGIS an indefeasible right of
use for 10,0000 miles of its OC-48 SONET network, allowing 125 more AGIS
POPs. As part of the deal, AGIS has an option to access 6000 more
miles of Qwest’s OC-192 SONET. The agreement also contains provisions for
network interconnectivity and the co-development and co-marketing of IP
telephony services. Qwest, which values the deal at $260 million, will get
19.99% of AGIS common stock and a spot on AGIS’ board of directors.

On the heels of news that Qwest will offer IT long distance service at 7.5
cents per minute in California and midwest markets, the provider has
announced its schedule for expanding service throughout the U.S. By April,
Qwest plans to add east coast markets including New York. By fall, the
provider hopes to be operational in 25 markets and by Q’2 of ’99, it
expects to expand to 125 markets. By fall of ’98, Qwest plans to extend
its long distance services to Mexico.

Qwest plans to deliver all of its intercontinental traffic on its own
OC-192 SONET network. The company will utilize Cisco’s GSR 12000 routers,
and telephony system equipment from Vienna Systems.



Apex Global Internet Services


Phoenix Network


Vienna Systems


Cisco Systems




FaxSav to Offer Services in China

FaxSav has announced that it signed an agreement with the Chinese Ministry
of Foreign Trade and Economic Cooperation (MOFTEC) to deploy an additional
node in Beijing. The node will provide Internet fax services to Chinese
customers. MOFTEC will provide all customer service and marketing for the
service, which is scheduled to launch later this month.



GlobalNet Acquires Nova

GlobalNet has announced that it has acquired Nova Interactive, a computer
systems designer and distributor.

Nova distributes 32-bit soundcards, video and audio integrated motherboards,
and a line of analog modems, workstations, servers, and routers.



Nova Interactive


Phillips Semiconductors to Introduce Video Phone

Phillips Semiconductors TriMedia Product Group has introduced a H.324
videoconferencing software library for its TriMedia processor. The new
videophone will be capable to maintaining latencies of less than 200ms. The
TriMedia processor will handle all of the audio and video communications

Enhancements to the software library will include video noise reduction
pre-filtering and a de-blocking post filter, a proprietary motion estimation
algorithm, and acoustic echo cancellation.

Product availability is scheduled for February.

TriMedia Product Group


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