GENERAL EUROPE 

COMPUTERS   

11/8/99 
European PC Industry Grows by more than 23% in Q3 
http://gartner3.gartnerweb.com/dq/static/about/press/pr-b9965.html 
 
INTERNET 

12/13/99 
Study Shows Europe Now Much Closer to U.S. in Adoption of E-business; MORI Research Reveals a Massive E-business Explosion Coming...; Fear of Commercial Failure Seen as Key Driver  
Contrary to popular belief, Europe is not far behind the US in the basic uses of the Internet -- communication with customers and suppliers, promoting products and services, and recruitment.  

Many European companies are neck-and-neck with the US in getting `switched on' to the Internet. With e-business about to take off, the Internet is seen as a major new revenue stream, with all those surveyed forecasting total e-sales(a) averaging 13 percent of total sales, equivalent to $271 billion in the next two years ($118 billion in the US and $152 billion in Europe). However, many admit it is the fear of going out of business that is driving them to invest heavily in e-technology.  

These are some of the main findings of research carried out among 700 companies(b) in Europe and the US by MORI for Intentia, the enterprise applications global software group, and co-sponsored by IBM. It is the first annual comparative tracking study of tier -- two companies (revenues of $50 million to $1 billion) to establish a picture of how quickly e-business is being adopted, and intentions for the future. It focuses exclusively on 
board directors -- 100 each in the UK, France, Germany, Sweden and Spain, and 200 in the US -- with responsibility for e-business or business development strategy. All respondent companies operate in one of three industry sectors: manufacturing, wholesale and retail.  

The Intentia study reveals the e-business market is on the verge of a massive explosion. Of all those interviewed, 56 percent say e-business will become "essential/very important" in two years time in dealing with suppliers and customers. This compares with just 24 percent today who say it is important. By country, forecasts of its becoming essential/very important were highest in Sweden (66 percent), the UK (64 percent) and the US (60 percent), while expectations of its importance were lowest in Germany (53 percent), Spain (49 percent) and France (42 percent).  

The study found that e-business is also a hot topic on boardroom agendas. Of all the companies interviewed, 75 percent now have someone at board level responsible for e-business. In Europe as a whole, the figure is 68 percent and in the US, 91 percent. However, the UK leads marginally with 95 percent.  

Respondents believe that e-business is set to have a profound effect on whether they prosper or fail in the new digital economy. When asked if they agreed or disagreed that if they don't use e-business they will have difficulty surviving, 42 percent of US companies and 38 percent of European companies agreed.  Sixty-four percent of US companies and 51 percent of European companies say they will have to invest significantly in systems, processes and business applications.  

However, when companies were asked what they understood by the term e-business, very few were able to describe e-business in the context of integrated enterprise-wide business processes, and linking suppliers, partners and customers in the supply chain. Of all those surveyed, 40 percent describe it as business activities 
conducted using electronic mechanisms.  

"It's heartening to see that Europe is not as far behind the US as some may think, but it appears from these results that most companies, in both the US and Europe are really at stage one of adoption," said Bjorn Algkvist, CEO of Intentia. "The next stage is using the Internet to manage supply side relationships and integrate business processes."  

"This survey shows that there is a sense of urgency among top business people about e-business," said Lars Alm, General Manager, e-business services, IBM Europe, Middle East & Africa.  "More than half of the companies surveyed feel they must act now or become tomorrow's laggard in the digital economy."  

When companies in all six countries were asked to say, spontaneously, what they consider to be the main benefits of e-business, surprisingly few said increased sales (21 percent), access to new market segments  
(17 percent), access to overseas markets (14 percent) and integration with suppliers (16 percent).  The most widely mentioned were improving business efficiency and customer service (both 44 percent), access to a larger customer base (33 per cent), greater efficiency in the sales process, and greater ability to respond to customer demand (28 percent).  

There were also fairly wide variances in what companies in different countries are currently using e-business for. For example, companies based in Sweden (81 percent), the US (76 percent) and the UK (72 percent) are more likely to be using e-business to conduct financial transactions than are their counterparts in Spain 
(62 percent), Germany (61 percent) and France (45 percent).  

Source:  Press Release - Intentia International  
 

12/7/99 
Internet penetration in Europe will grow from 19% to 33% by 2003 as Europeans accelerate their integration of new technologies into everyday life. However, the popular embrace of mobile phones and the Internet will not mean that Europe can be viewed as a single market. In a new Technographics(R) Europe Report, Forrester Research B.V. (Nasdaq:FORR) explains how consumer attitudes will shape the technology landscape within 
Europe and lead to divergent digital lifestyles across the continent.  

Driven by tumbling prices and the lure of the Net, PC ownership in Europe will surge over the next four years, surpassing the US in some countries. Led by a 72% penetration rate in Sweden, PC adoption across Europe will grow from 36% to more than 46% in 2003. The Internet is the killer app that will motivate most of these purchases. By 2003, Forrester expects the online population in the countries it surveyed to reach nearly 60 million -- up from 33.9 million in 1999 -- with more than 20 million enjoying broadband access.  

Meanwhile, Europe will continue to lead the world in digital telephone ownership, reaching almost 100 million European adults by 2003. With 12% of Europe's Internet users spending 10 or more hours per week online, Europeans will be the first to use  digital phones to access the Internet. By 2003, Forrester expects nearly 30% of Europe's online consumers to be using non-PC devices to access the Web, although only 2 million will use these devices as their primary means of access.  

"Despite the political and cultural differences that exist within Europe, consumers own many of the same electronics products and exhibit similar online behaviors," explained Technographics Europe Analyst Reineke Reitsma. "These similarities suggest that consumer demand for technology is primarily needs-driven, and 
that these needs for entertainment, security, or status, for example -- are shared across borders." Europeans demonstrate the strongest demand for mature consumer electronics technologies like VCRs and CD players. While there are some adoption gaps between countries for these technologies, these can be explained by pricing differences  and cultural proclivities. Similarly, Europe's Internet population tends to migrate toward many of the same online activities. Sending email, going to the Web, using search engines, and visiting company/product sites are universally popular activities. Europe's online shoppers value the Web's      convenience as a retail channel, with books, CDs, and computer products topping the list of most popular purchase items. However, consumers' online shopping behaviors exhibit distinct national tendencies. Germans, for example, are twice as likely to buy books online as the Dutch, while the British are twice as likely as Swedes to purchase airline tickets online. Meanwhile, the French are the least likely to use the Web for company or product information, or to buy online at all. For the Report "Europe's Digital Decade," Forrester surveyed nearly 17,000 consumers in five countries -- France, Germany, the Netherlands, Sweden, and the United Kingdom -- about their attitudes, motivations, and financial ability to own or use technology.  The survey results indicate that technology optimism is a      strong determinant of technology adoption in Europe. Consumers who own a PC are 80% more likely to be excited and enthusiastic about technology in general. The 
orresponding figure is 150% for Internet users and 50% for digital phone owners. Forrester Research is a leading independent research firm that analyzes technology change and its impact on business, consumers, and society. 

Source:  Forrester Research Press Release 
 

11/26/99 
ETSI Teams with IPv6 for Next Generation Internet 
The European Telecommunications Standards Institute (ETSI) and the IPv6 Forum yesterday joined forces to promote the next generation of Internet Protocol numbering, known as IPv6. 

The move was prompted by "the strong desire of wireless operators to get IP into 3G," said Bridget Cosgrove, deputy director general at ETSI.  

IPv6 is a new Internet numbering protocol being developed by the Internet Engineering Taskforce to provide almost unlimited IP numbers once the existing protocol, IPv4, runs out. 

This will allow networking to extend to consumer and industrial devices like mobile phones, fridges and toasters. 

"We will need around 100 IP numbers each in 20 years time," said Latif Ladid, president of IPv6 Forum.  

As well as addressing space issues, IPv6 will add security and quality of service to the IP world, he said.  

Mobile devices become more suited to accessing the Internet with increased wireless bandwidth in the offing and the emergence of wireless application protocol devices (WAP).  Traditionally ETSI members with IP experience come from the fixed world, said Cosgrove. Now wireless operators are seeing the need to work more closely with Internet standards bodies. 

The IPv6 Forum has also partnered the UMTS Forum and GSM Association, and is in discussion with the 3GPP (led by ETSI), the WAP Forum and the Bluetooth consortium. 

The two organizations have teamed to promote IPv6 to the telecoms industry by hosting a series of conferences starting this year. They also plan so-called interoperability "bake-offs" to test how different IPv6 products work together. 
 

11/24/99 
EU To Unveil "eEurope" Plan In December  
European Commissioner Erkki Liikanen said on Monday a European Commission plan due to be presented next month aimed to get more Europeans online and help catch up with Americans in the move towards electronic commerce. Liikanen, who is the Commissioner for Enterprise and Information Society, told an international information technology conference that European Commission President Romano Prodi would present the new "eEurope" initiative in December at the EU summit in Helsinki. 

He said its aim was to bring all of Europe online as soon as possible by providing cheaper and faster Internet access and promoting greater computer literacy among Europeans. 

Low-cost Internet access and telecom prices were crucial because they were an obstacle to higher penetration into networks in Europe, he said. 

"We risk being left behind," Liikanen said. "We need a wake-up call." 

Liikanen identified three main drivers of change - the Internet; convergence of telecommunications, computing and media; and increased competition through deregulation. 

He said the eEurope initiative would mark a major effort in the move towards the world of electronic commerce. 

"The time has come to consolidate our positions and accelerate the transition to the new economy," he said. "Failing to do this now would compromise Europe's future." 

Besides computer skills and Internet access, the initiative would also focus on creating more effective markets, especially for venture capital, and boosting digital technologies in the public sector, Liikanen said. 

He did not give any further details on the initiative. 

Source:  Reuters 
 

TELECOM  

11/24/99 
The European Commission taking steps to cut the cost of short-distance leased lines 
The European Commission is taking steps to cut the cost of short-distance leased lines because it says charges in the EU are too high. It published price ceilings for the industry, and will penalize operators which ignore these. 

Although these prices have been published as a Recommendation, and hence do not have the legal weight of a 
Directive or a Regulation, they have been linked by Brussels to the Leased Lines Directive 92/44/EC, which requires Member States to ensure that tariffs are "transparent, non-discriminatory and cost-oriented". 

It means that if companies ignore the new guidelines, they could find themselves being threatened with legal action by the Commission, claiming a breach of the directive. 

Brussels' action is especially designed to make Internet access cheaper - particularly for small and medium-sized businesses (SMEs) - and sharpen competition. 

The suggested monthly rental limits (excluding VAT) for short distance leased lines charges made by incumbent telecommunications operators for a 5km link are 80 Euros for 64 Kilobit/s capacity circuit, 350 Euros for 2 Megabit/s and 2,600 Euros for 34 Megabit/s. 

The Commission says these figures are comparable to charges in other competitive markets, such as the USA, and will allow national regulatory authorities to assess whether prices are cost-oriented, as required by Community legislation. 

If an incumbent operator charges more, the recommendation advises that telecommunications regulators demand an explanation. 

The recommendation also asks Member States to take additional steps to stimulate competition and technical 
innovation in the local access network. 

Measures could include: 

Mandating unbundled access to the local loop of the incumbent operator.  Encouraging the use of new technologies like Digital Subscriber Loops (DSL), especially for high-speed Internet and data services. 

Allocating spectrum for Wireless Local Loops (WLL). 

Enterprise and Information Society Commissioner, Erkki Liikanen, said: "The high price of leased lines in Europe has been detrimental to the competitiveness of European companies and has hampered the spread of the Internet in Europe. This recommendation will be of benefit to all Internet users, and in particular to SMEs." 

The Commission says the sector of leased lines, data networks and business communications is becoming increasingly important - especially with the emergence of e-commerce - and represents about 25% of the total telecoms market in some Member States. 

Businesses rent leased lines - which can carry high volumes of voice, data and multimedia traffic - for the advantages of cost, security and reliability over using the public switched telephone network. 

But the Commission says that leased line charges paid to the incumbent can represent up to 40% of the total market entry costs for a new network operator. 

Source:   Gary Spinks 
 

11/12/99 
Europe Overhauls Telecoms Regulations 
The European Commission has unveiled its review of  European telecommunications legislation, publishing a 
Communication (white paper) that reflects new information society commissioner Erkki Liikanen's commitment to deregulation and free enterprise. 

In particular, it suggests that larger companies in newly emerging telecommunications sectors, such as mobile  telephony, should not be forced to open up access to their  lines to competitors when they gain 25 per cent market share, as they have to do under existing guidelines. 

Its 1999 Communications Review - Towards a New Framework  for Electronic Communications Infrastructure and Associated  Services says: "In order not to hinder innovation, the obligation not to negotiate access should not apply to newly emerging markets, where de facto, the market leader is likely to have substantial market share." 

Instead, established EU competition law would be used to  establish when a company is "dominant." This threshold would be higher than 25 per cent and could be as high as 50%. 

Brussels said that its package of proposals outlined in the Communication would benefit telecoms companies and customers by boosting competition. 

Its central message was that future European telecommunications regulations needed to reduce problems for businesses, give customers more choice and yet also maintain effective controls. 

Industry will now be consulted on the proposals. Brussels is to take account of the views received when it frames firm proposals for legislation to present to the European Parliament and the EU Council of Ministers. 

The paper suggests that a new EU framework directive should cover "all communications infrastructure and associated services". This means it would apply to telecoms networks  (fixed or mobile), satellite networks, cable TV networks and terrestrial broadcast networks. 

The key Commission proposals are: 

General regulation: 

A lighter EU regulatory touch with more decision-making left to national authorities. The Commission is proposing a simplification of the EU regulatory framework, reducing legal texts from 20 to 6 through the proposed introduction of four new directives - liberalization, framework, licensing and  authorizations, telecoms data protection - which will cover theground of the existing legislation. 

The shelving of proposals to set up a European Regulatory Authority for communications services. 

Making improvements to cooperation between the Commission and national regulators. 

Licensing: 

Here, the Commission is suggesting that general authorizations could be provided for all telecommunications networks - including Internet services - rather than authorizations that are specific to individual services.   Authorization fees should cover only 'justified and relevant'administrative costs. 

Access and Interconnection: 

The Communication suggests that EU Recommendations or  laws are employed to encourage competition in the local loop -   the line between the local exchange and the subscribers' premises - for instance by forcing incumbent operators to  'unbundle' their local access networks. It suggests that national regulators should retain an intervention role in disputes. 

Making carrier selection that is already available to land lines available to mobile users by placing obligations on dominant mobile operators. 

Other suggestions include: 

The ruling out of specific regulatory measures on Internet  addresses for the time being. 

A withdrawal of Leased Lines Directive 92/44/EC once there is an adequate choice of leased lines for all users and line prices are competitive.. The development of pricing principles at EU level to ensure the affordability of universal service. 

Measures to increase radio spectrum efficiency in member states and the establishment of a Spectrum Policy Expert Group. The establishment of a new Communications Committee to replace EU's two existing telecoms committees. 

The Commission says the current regulatory framework has \already allowed substantial market competition in telecoms but \some features are no longer relevant to a rapidly changing  sector. 

Commissioner for the Information Society, Erkki Liikanen, said:   "We should not rest on our laurels - more competition is still needed, in particular at the local level where incumbent operators remain dominant. 

"Only this way will we be able to grasp the full benefits of the development of the Internet in Europe. 

"It is important that Europe becomes an inclusive Information Society. For that we need to guarantee access for everybody everywhere at affordable prices." 

The Commission says that comments must be in by 15 February next year and that it will come forward with final proposals by the middle of 2000 with the aim of implementation in 2003. 

Comments can be sent to the Commission: 

E-mail: 99review@cec.eu.int 

Post:  

J-E de Cockborne 
Head of Regulatory Framework Unit (A/1) 
Information Society Directorate-General 
Rue de la Loi 200 
B-1049 Brussels 
Belgium  

Source:  Gary Spinks, Total Telecom 
 

11/3/99 

GLOBENET TO ENTER A MARKETING AGREEMENT FOR SEAMLESS UNDERSEA FIBER OPTIC CABLE 
CONNECTIONS BETWEEN LATIN AMERICA AND EUROPE  
Washington, DC, Nov. 2 - Global TeleSystems Group, Inc. (GTS) and GlobeNet Communications Group 
Limited, through its wholly owned subsidiary, Atlantica Network (Bermuda) Ltd., have entered into a 
Memorandum of Understanding to be one of the first providers of high-quality, seamless undersea 
connections between Europe and South America.  

The agreement will enable GTS to sell managed bandwidth services from a variety of European cities to Latin 
America and GlobeNet to sell similar services between Latin America and Europe. The service will be offered 
on GTS's FLAG Atlantic-1 (FA-1) and trans-European networks and GlobeNet's Atlantica-1 subsea cable 
system. Both systems will feature a self-healing ring design.  

Atlantica-1's first leg -- from New York through Bermuda to Fortaleza, Brazil -- is scheduled to be available in 
September 2000, with the full northern ring of the system, including Fortaleza to Venezuela to Florida and back 
to New York, slated to be operational by year-end 2000.  

SOURCE: BUSINESS WIRE  
 

AUSTRIA 
 
 

BELGIUM 

TELECOM 
   
12/7/99 
VersaTel Telecom is Developing a Unique Network in the Antwerp Area  
VersaTel Telecom (NASDAQ:VRSA) (AEX:VRSA) is expanding a unique fibre optic network in Antwerp, the second largest city in Belgium. The wideband infrastructure crosses Antwerp from north to south and from east to west. With it VersaTel is the first operator which can offer the businesses and organisations in the Antwerp area unlimited bandwidth and a complete package of services in the sphere of speech, data and the 
Internet.  

This week VersaTel started the construction of the wideband infrastructure, which runs across the centre of the city. The route, which extends from the Netherlands to Antwerp Noorderlaan, was put into service in July 1999. Also the local glass fibre ring in the business park Antwerp North has recently become operational. 
Thus towards the spring of 2000 VersaTel can serve the whole region.  

The Antwerp network is 53 km long. For the operator the Antwerp region offers an extensive number of potential customers from its business target group. Philip Mathuis, Managing Director of VersaTel Telecom Belgium: "We can offer these businesses not only wideband access without any restriction in speed or capacity, but also a total package of services, and that at an unbeatable price. VersaTel is the first operator in this area to offer this ". In Belgium VersaTel Telecom has been active since June 1998. The expansion of the business happened as fast as an arrow. After somewhat more than a year of activity there are a good 115 
members of staff and over 3500 customers.  

The Antwerp network forms part of the high quality fibre optic network that the operator is at present constructing in the Benelux. This network of a good 2200 km with a great number of international connections was developed specifically to satisfy the needs of the business world in the Benelux. It winds along and 
through the business parks, so that more than 270,00 businesses lie within a radius of 5 km of the fibre optic network. Through that VersaTel can bring in the maximum bandwidth for the businesses.  Also the Antwerp route is constructed in such a way that the entire Antwerp business world can be served optimally., both in the centre of Antwerp and outside it.  

In Belgium VersaTel has already laid ducts for more than 610 km in the ground, of which 70% is operational. A further 350 km will be added next year. For the local access network VersaTel Belgium envisages a further 150 km. The business park rings in Mechelen North (5.5 km) and in Antwerpen North (10km) are the  first parts of it.  

From July 1999 VersaTel could connect its first customers directly to the network. Thus resounding names such as Confreight NV and the Antwerp Chamber of Commerce and Industry signed a contract with the operator.  

VersaTel Telecom International is an independent, rapidly growing, competitive network manager, which is primarily directed towards the Benelux. VersaTel wishes to become the most prominent fully integrated supplier of local access and wide band services with its own means, which include speech, data and 
Internet services for businesses in Benelux.VersaTel was formed in October 1995, and since June 1998 has been active in Belgium. It numbers more than 20,000 business customers and 550 employees. The shareholders of VersaTel are the main investor NesBIC and its IT and telecomms specialised NeSBIC CTE Fund, Parisbas Holdings and NPM Capital. At present VersaTel is constructing a data and multimedia network in order to be able to offer to businesses in Benelux voice, data and Internet services. 

Source:  Business and High Tech Editors 

  
BULGARIA 
 
TELECOM 
 
 

CZECH 
 
TELECOM 

 
 
DENMARK 
 
TELECOM  

11/5/99 
Tele Danmark Acquires Additional 50% Stake in Dan Net A/S 
http://www.virtualpressoffice.com/cgi-vpo/vUser/subscriptionAccess.veos?code=ffb0e232cc2b5ecc443777dbf11d23b4701af98dbda7ff068d14feaff4  
 

FINLAND 

FRANCE 
 
INTERNET 

12/1/99 
France Tenders Three Local Loop Licences 
French Industry Secretary Christian Pierret said Tuesday the government has put "local loop" licences for wireless telecoms services up for tender in a bid to boost the development of high speed Internet access. 

Pierret - who said so-called wireless local loop technology was "an attractive alternative to fixed line technology" because of its transmission speed and flexibility - said last week he expected to announce the outcome of the tenders in mid-2000. 

The local loop is the last mile of telephone cable linking users directly to the operator. At present, competitors who wish to offer telecoms services to customers have to rent local lines from incumbent operator France Telecom . 

The minister said in a statement on Tuesday the three groups of tenders for local loop wireless licences comprised firstly two national licences, secondly two regional licences in each of France's 22 regions, and thirdly two licences in each of France's overseas territories. 

The statement said the national and overseas territories licences would be for the 3.5GHz and 26GHz frequencies. The regional licences were for the 26GHz frequency. 

The industry ministry said the text of the tender offers was available on its web site at www.telecom.gouv.fr. 

Pierret said candidates would be judged on their ability to stimulate competition, provide adequate coverage in the area under their control and develop the broadband services needed to boost use of the Internet. 

In an interview on Tuesday in financial daily newspaper Les Echos, Pierret said the local loop, owned and controlled by France Telecom, would be opened up to competition in 200 French cities by 2001, in order to permit the development of high speed Internet access.  
 

Source:  Gillian Handyside, Reuters  
 

11/17/99 
Deutsche Telekom Purchases Siris in France to compete directly with France Telecom 
Deutsche Telekom AG is set to go head-to-head with France Telecom in the French market with today's purchase of Siris SAS from Unisource NV. 

Telekom will pay E700 million ($729 million) for the operator which provides voice, data and IP services to business customers and carriers. Siris is also in the process of expanding its national fiber optic network from 2,000 kilometers to 5,000 kilometers. 

Siris is the second largest alternative carrier in France, after Cegetel and was awarded the one digit indirect access prefix '2' in 1998. 

"France Telecom started off the whole thing by buying in to E-plus," said Nigel Deighton, research director at the Gartner Group in France. "Its logical that Deutsche Telekom would want to set itself up in France." 

"Its a smart move at a reasonable price," he said. "And the fiber is a definite advantage."  

France Telecom appeared relatively phlegmatic about Telekom's entrance into its home market. A spokeswoman said it was not a surprise and that the company had no special comment to make. 

The move pits Telekom against its former partner and follows a similar move by France Telecom, which is upping its stake in German mobile operator E-plus. Relations soured between the two operators when Telekom made a bid for Telecom Italia earlier this year despite having joint ventures with France Telecom in Italy. The two are also partners in the Global One joint venture which is undergoing a restructuring of ownership as a result of MCI WorldCom buying Sprint - the third partner. 

The sale also marks the third piece of Unisource NV to be unbundled. The joint venture between Telia, KPN and Swisscom announced in August that it would sell off all its assets as the parent company's begin to follow divergent international strategies. 

The venture sold Unisource Carrier Services, its carrier's carrier arm, to Energis in August, and Telia snapped up Unisource Iberia in September. All that remains now of the former alliance is Unisource Italia and D-plus, a German mobile service provider.  

Source:  Vanessa Clark, Total Telecom 
 

GERMANY 

INTERNET 

11/12/99 
QSC Plans DSL Network In Germany 
QS Communications (QSC) (Cologne, Germany), SDSL technology provider, will invest to establish a nationwide DSL network across Germany to provide broadband communications and high-speed Internet access to customers via last-mile connections, with speeds 35 times faster than ISDN.  

 QSC is aiming to sign up 16k customers for its broadband data communications service in the first year, generating revenue of DM60-70 mil. The service will be targeted initially at business customers. QSC will connect 40 German cities to its network in 2000, with investment of over DM500 mil. Services will be launched in Cologne, Munich and Berlin, all Germany, with distribution via ISPs.  

By comparison, Deutsche Telekom is aiming to sign up around 200k customers in 2000 for its rival ADSL service. QSC will use DSL routers to make existing phone lines capable of high-speed network access. Customers will between DM295/mo and DM995/mo depending on which of the five models they subscribe to, plus installation costs.  

QSC has sufficient capital to finance the initial network build.  This includes loans from suppliers, including Bell Labs, Lucent subsidiary, worth over DM468 mil. Lucent's contract is worth DM200 mil in 2000. QSC plans to list simultaneously on the Neue Markt exchange in Germany and the Nasdaq exchange in New York, NY, in 2000 to finance growth. 

Abstracted by RDSL 
 
11/8/99 
Mannesmann Arcor said it will cut its Internet fees as much as 26% from December after Germany's largest Internet service providers, Deutsche Telekom AG and AOL Europe, both lowered their rates. 
http://www.totaltele.com/view.asp?ArticleID=24524&pub=tt&categoryid=626 
 

TELECOM 
  
12/15/99
First German CLEC to Offer SDSL Selects Netopia DSL Equipment
NETOPIA Inc., (Nasdaq:NTPA), a market leader in providing DSL Internet equipment and E-commerce Web platforms to small and medium-size businesses, today announced that KKF.net AG has selected the Netopia R7200 SDSL router for its new "Speedconnect" business-class SDSL service. KKF.net is the first German CLEC to offer SDSL and will launch the new service in Germany in December, 1999. 

The Netopia R7200 is a business-class SDSL router, interoperable with the Nokia (NYSE: NOK) ATM/DSL D50
Speedlink DSLAM which KKF.net deploys in more then 20 Central Offices. Because it is based on Netopia's unique R-series router architecture, the R7200 is distinguished in the DSL marketplace by its rich feature set which includes built-in security, ISDN and Analog dial backup and multiple management, routing and diagnostic tools. This feature set delivers unique levels of value and reliability to the small business end user. 

Symmetric Digital Subscriber Line (SDSL) technology enables inexpensive, high-speed digital transmission over regular copper phone lines. Because it provides a fully symmetric and permanent, "always-on" connection, SDSL is the perfect choice for business applications that require high bandwidth in both directions, such as file transfer and access to a corporate intranet. 

"We are extremely pleased to become a partner of Netopia, as their R7200 SDSL router offers a combination of features that are highly valued by businesses, including ease-of-management, unique expandability and business-class routing," said Marc Keilwerth, General Manager at KKF.net. 

Speedconnect, KKF.net's new SDSL service for German businesses, offers high speed Internet access for a fixed fee ("Flatrate") that includes a telephone line, Internet connectivity, and a Netopia R7200 router. Six levels of service are available: for example, 192 Kbps for DM 487 (c. $270) per month plus setup costs and installation, excluding tax. 

Source:  Press Release
 

12/7/99 
VersaTel Telecom International N.V.(NASDAQ:VRSA)(AEX:VRSA), a rapidly growing, facilities-based, competitive provider of voice, data and Internet services in Europe, today announced that it has entered into a 
binding agreement to acquire 100 percent of the outstanding stock of VEW TELNET, a wholly owned subsidiary of VEW ENERGIE AG, and a long term right to use the fiber optic network of VEW TELNET, which is owned by VEW ENERGIE, for approximately EUR 120 million.  

The closing of the acquisition is subject to final Supervisory Board approval from both companies, which is anticipated to occur in December.  

The acquisition represents a key geographic expansion for VersaTel into the Nord Rhein Westphalen (Northwest Rhein) region of Germany that is contiguous to VersaTel's existing broadband network in the Benelux. The acquisition of VEW TELNET is a logical extension of VersaTel's strategic focus due to similarly high business concentrations and favorable demographics in VEW TELNET's market. VersaTel will provide a full package of high bandwidth, local access services in this expanded geographic region over VEW TELNET's approximately 1,400 km fiber optic network.  

VEW TELNET, with approximately 4,000 business customers and 225 employees, is a leading regional telecommunications operator in the Westphalia-Lippe region of Germany, including the heavily industrial eastern Ruhr District. This region of Germany represents approximately 10 percent of the population of Germany, and over 240,000 addressable business customers. For the year ended December 31, 1998, VEW TELNET had revenues of EUR 9.1 million. For the three months ended September 30, 1999, VEW TELNET had annualized revenues of EUR 21.7 million.  

Upon completion of the acquisition, VersaTel will gain access to approximately 1,400 km of fiber optic network, primarily consisting of 18 fibers. The backbone network consists of an STM 16 ring with over 160 SDH nodes/PoP locations and 7 points of interconnection with Deutsche Telekom. To accelerate local access fiber connections, VersaTel has secured the right to jointly build with VEW ENERGIE by utilizing its power network rights-of-way, giving VersaTel the ability to build additional fiber network and customer connections. In addition, VEW TELNET is operational in 33 main distribution frame (MDF) or central office (CO) locations, 
representing more than 10 percent of the addressable market in the Westphalia-Lippe region.  

VersaTel intends to expand VEW TELNET's access to Deutsche Telekom's MDF locations in the region by extending VEW TELNET's existing network (approximately 80 percent of the market is connected to the top 325 MDF sites). VersaTel plans to leverage Deutsche Telekom's existing copper infrastructure to deploy xDSL access, as well as build local access fiber connections, to provide a full package of high bandwidth, local 
access services to German customers.  

VersaTel intends to maintain a strong relationship with VEW ENERGIE after the closing of the acquisition and will enter into a 12 month telecommunications services contract. The acquisition agreement provides that VersaTel will have the exclusive right to use VEW ENERGIE's existing and future telecom infrastructure. In 
addition, the acquisition agreement provides that VEW ENERGIE and VersaTel will assess the possibilities of cross-selling and product bundling and VersaTel will be allowed to market its services to VEW ENERGIE's power customers. VEW TELNET is also a member of RegioNet, a cooperation between 6 adjacent regional carriers to reduce termination costs and realize interconnection synergies in Germany.  

VersaTel Telecom International N.V. is a rapidly growing, facilities-based, competitive local access network operator primarily focused on the Benelux, which consists of The Netherlands, Belgium and Luxembourg, and is based in Amsterdam. Founded in October 1995, the Company holds full telecommunications licenses in Netherlands and Belgium and has over 20,000 business customers and 548 employees. VersaTel is currently building a broadband network that will use the latest network technologies to provide business customers in the Benelux with high bandwidth voice, data and Internet services. VersaTel is a publicly traded company on the Amsterdam Stock Exchanges and Nasdaq National Market under the symbol "VRSA". News and 
information are available at http://www.versatel.com.  

VEW TELNET Gesellschaft fur Telekommunikation und Netzdienste GmbH, headquartered in Dortmund, Germany, is a leading regional telecommunications operator in the Westphalia-Lippe region of Germany. The company provides voice, data and Internet services primarily to business customers utilizing its fiber optic SDH local access network. VEW TELNET holds Class 3 and 4 licenses allowing it to provide full 
infrastructure-based telecommunications services in the Westphalia-Lippe region of Germany. This region represents more than 9 million inhabitants, approximately 10 percent of the population of Germany, and over 240,000 addressable business customers. VEW ENERGIE AG founded VEW TELNET in 1995 in order to leverage its telecommunications network as part of the liberalization of the German telecommunications market. The company operates an approximately 1,400 km fiber optic network and has approximately 225 employees and 4,000 business customers. 
 

Source:  Press Release 
 

GREECE 

HUNGARY 
 
TELECOM 

12/1/99 
Vodafone AirTouch Plc launches mobile phone services in Hungary 
A consortium led by Vodafone AirTouch Plc launched mobile phone services in the highly competitive and fast-growing Hungarian market on Tuesday, with rates geared to slightly undercut its rivals, the company said. 

"Our goal is to have a 10 percent market share by the end of next year and about one third by 2003," Vodafone Hungary's CEO Jeremy Forword told Reuters at the launching ceremony. 

Forword said Vodafone's Hungary division would offer rates about 10 percent below those of its main rivals, with the aim to achieve a one-third market share by 2003 in the country of 10.5 million people. 

 Vodafone's base subscription price is 10,000 forints ($39.77),  versus 12,375 forints for main competitors Westel 900 and 6,000  forints for Pannon GSM. 

Westel 900, majority-owned by Hungarian telecoms group Matav , has 750,000 subscribers while Pannon GSM, controlled by Dutch KPN , has 550,000 subscribers.  

Matav is also the majority owner of analogue operator Westel Radiotelefon Kft, with 100,000 subscribers. 

The consortium of Vodafone Airtouch, Germany's RWE, broadcaster Antenna Hungaria and the Hungarian Post was awarded the country's third digital cellular licence in June. 

Forword said the 10 percent market share targeted by the end of next year would mean 200,000 subscribers. 

He said earlier that Vodafone plans to spend up to $500 million in developing its dual band 900/1800 megahertz network in Hungary. 

Forword said the operator managed to start services just six months after being awarded the license, a record time in the mobile phone business. 

"This launch is the fastest ever delivered in GSM history," he said. Under the concession agreement Westel 900 and Pannon GSM have to provide cost-based roaming to Vodafone until it builds up its own national network, but Vodafone said it would not pass on those costs to its subscribers. 

With a basic subscription, peak calls outside their own network cost 123.75 Hungarian forints ($0.492) per minute at Westel, 120.63 forints at Pannon and 123.75 forints at Vodafone. 

For weekend calls within the same basic package, Vodafone charges 12.48 forints, while both Pannon and Westel charge 40 forints. 

Source:  Denes Albert, Reuters 
 

ITALY 

TELECOM 

11/26/99 
Italy's Antitrust Authority Opens Probe Into Telecom Italia On ADSL 
Italy's competition watchdog said on Thursday it had opened an inquiry into whether Telecom Italia had abused its dominant position in marketing telecommunications services with access to ADSL technology. 

The Antitrust authority said in a statement it had opened its probe after a complaint from Italy's second biggest fixed-line phone operator, Infostrada . 

Asymmetrical Digital Subscriber Line (ADSL) technology offers fast Internet access and other broadband services over regular telephone lines, enabling telephone companies to upgrade their networks to offer much higher data speeds. 

The authority said it would be looking at Telecom Italia's exclusive marketing of ADSL access services alongside its other data services for business clients. 

Telecom could be applying much lower prices to its clients than it offers to rival operators using the network, it said, thus potentially reducing other telephone companies' ability to compete.  

Source: Reuters 
 

NETHERLANDS 

TELECOM 
  
12/1/99 
KPN Telecom To Introduce ADSL Mid-2000 
Dutch KPN Telecom NV said on Tuesday it will launch Asymmetric Digital Subscriber Line (ADSL) technology next year, boosting the capacity of its telephone lines to allow speedy access on the Internet. 

KPN will launch Mxstream, a portfolio of broadband connections that provide access to information and service providers, first in parts of Amsterdam, Rotterdam and Utrecht and then in other major cities. 

KPN, the Netherlands' biggest telecommunications company and former monopoly, said it expects to have more than 100,000 Mxstream Internet users by the end of next year and as many as 500,000 by the end of 2001. 

Its investments in the electronic highway for speedy access have exceeded 1.5 billion guilders ($688.4 million) over the past few years, it said. 

Analysts expect KPN to benefit from its ASDL launch, which, they said, will initially draw corporate users before spreading to households. Moreover, in comparison to the United States, Europe's Internet market still has huge user growth potential. 

"KPN will directly compete with cable companies such as UPC because it can offer similar services, so competition will increase," said Frits de Vries, an analyst at Theodoor Gilissen Bankiers. 

Dutch-based United Pan European Communications (UPC) is Europe's second largest cable television operator. 

In addition, he said, KPN can benefit from KPNQwest , the joint venture between KPN and Qwest in the United States, which is rolling out a 14,735 kilometres fibre optic network across Europe. 

Mxstream will be offered via the usual phone connection and will be expanded in mid-2000 to end-users with ISDN (Integrated Services Digitial Network) connections. 

Rather than having to pay for Internet connections per telephone tick, ADSL allows unlimited access to the internet for a fixed monthly fee and that should benefit heavy users, said de 
Vries. 

Planet Internet, XS4ALL, World Online and Sonera are the first providers of KPN's fast Internet service. KPN said negotiations with other providers were at an advanced stage.  

Source:  Caroline Jacobs, Reuters 
 

NIS 

TELECOM 
 
 

NORWAY 

TELECOM 
  
12/14/99 
Tele Danmark Acquires 51% of ElTele 0st in Norway 
Tele Danmark A/S (NYSE: TLD), the Danish telecommunications services group, today announced that it has acquired 51% of the Norwegian communications provider ElTele 0st (ET0). The acquisition was executed through the purchase of a 35% stake from Oslo Energi Holding and by providing new equity funding for 
financing the company's future expansion.  

ET0 is an Oslo-based access and backbone operator with switching facilities providing fixed network, broadband and Internet services. Oslo Energi Holding, a municipality-owned enterprise, established ET0 in 1994. ET0 co-operates with other municipality-owned energy and communications providers in the southern part of Norway, which effectively leaves the group as a strong alternative access and backbone provider to Telenor, the Norwegian incumbent. In 1998, ET0 had revenues of NOK 176m.  ET0 currently has 800 business and public organization customers.  

"Our entry into the Norwegian fixed-line market strengthens our position in Norway. ET0 complements nicely our recent purchase of 20% in Netcom ASA," said Henning Vest, Executive Vice President of International Business at Tele Danmark. He continued, "Going forward we want to create value for Norwegian customers 
by delivering innovative communications solutions."  

The financial impact on the Tele Danmark Group from the acquisition of 51% in ElTele 0st is modest in the short term, but the Group believes that its stronger communications platform in Norway will provide considerable potential for future growth.  

Tele Danmark is the principal provider of a full range of telecommunications services in Denmark and holds significant interests in a range of telecom companies across Northern and Continental Europe. Domestic activities include landline and cellular telephone services, data communications, Internet, leased lines, cable television and directory services. The total number of employees in the group (exclusive of associated enterprises) is 16,666. Tele Danmark has DKK 47.7bn in assets. The Company was privatized in 1994 and today SBC Communications owns 42% of the shares, with the remaining shares held by individual and institutional shareowners all over the world. The market value of Tele Danmark's shares is presently approximately DKK 124bn (USD 17bn). 

Source:  Press Release 
  

10/29/99 
Telia AB and Telenor AS, the Swedish and Norwegian state-owned telecoms companies, completed their merger last week. 
http://www.totaltele.com/secure/cwiview.asp?Target=top&ArticleID=24391&Pub=cwi  

PORTUGAL 

TELECOM 
 
Portugal Telecom - First 9 months of 1999, Ending Sept. 9th, 1999 
http://www.virtualpressoffice.com/cgi-vpo/vUser/subscriptionAccess.veos?code=ffb0e232cc2b5ecc443777dbf11d23b4701af98dbda7ff068d1bf1abfc   
   

POLAND 

TELECOM 

ROMANIA 
 
TELECOM 
 
 
 

RUSSIA 

TELECOM 

SPAIN 
  
INTERNET 

12/7/99 
Rapid Link Launches First European IP Carrier Alliance with Capcom International  
Rapid Link(TM), a leading provider of international Internet-based communications services, has signed an agreement with Capcom International to deploy its IP-based network between the United States and Spain to terminate voice, data and fax traffic worldwide. 

Capcom, the Madrid-based provider of the prepaid calling card Printelcard, participates in Rapid Link's Internet telephony exchange carrier program and uses Voice over Internet Protocol (IP) gateway technology from Clarent to interconnect with Rapid Link's network operations center in Atlanta.  

The two communications companies have projected to route more than 1 million minutes of IP traffic through the first quarter of 2000.  

"Our alliance with Capcom signifies Rapid Link's commitment in providing quality, Internet-based communication with an endless number of services that can be offered to all of our end users," said Scott Fogle, senior vice president with Rapid Link. "We're setting new standards of international communications as a leader of the Internet telephony revolution, and Capcom is one of the first European companies to benefit from the cost savings associated with IP."  

Capcom views its IP-based network build out plans as an extension of its core telecommunications services -- not just a trial. In April, the company selected Clarent as its IP gateway equipment vendor because of the flexibility, cost and value-added services that it provides an emerging telco.  

"Through our IP venture, we want to offer our customers integrated and competitively priced international and domestic long distance services and value adds," said Laura Caprile, chief executive officer with Capcom International. "We believe that Rapid Link is one of the best carrier alliance partners to achieve our worldwide network expansion goals."  

About Capcom International  

Capcom International launched in 1998 and with a Type A license, acts as a wholesale reseller for Printelcard - the first company selling prepaid calling cards in Spain (www.printelcard.com). Capcom provides its customers with integrated and aggressively priced International and domestic long distance traffic, all types of prepaid calling cards services, value-added services (VAS) and hosting to carriers in Madrid.  Capcom has successfully interconnected with the Spanish PTT, Telefonica through SS7 in Capcom's facilities located in Madrid, which allows the company to become the first operator in Spain using IP technology originating and terminating minutes through Telefonica. New direct routes with Telefonica are now available giving Capcom the ability to offer the best prices and tier one quality to its customers for terminating calls all over Spain. Capcom plans to deploy 10 more interconnection points throughout Spain. 

About Rapid Link  

Founded in 1993, Rapid Link(r) provides affordable, high-quality Internet-based communications services and excellent, around-the-clock customer service to individuals and small businesses in the United States, Asia and Europe. Honored as a Top 500 firm from Telecom Business(tm) magazine in 1999, Rapid Link offers international direct dial services, pre- and post-paid calling cards, toll-free services and carrier services to more than 65,000 customers and 500,000 prepaid card end users worldwide.  Rapid Link routes voice, data and fax traffic over switched and IP networks, offers an Internet telephony exchange carrier program and serves as an official VoIP carrier for Korea Telecom and Telekom Malaysia Bhd. Headquartered in Atlanta, Georgia, Rapid 
Link has operations in Atlanta; New York; Mannheim and Frankfurt, Germany; Okinawa, Japan; Kuala Lumpur, Malaysia and Prague, Czech Republic. 

Source:  Press Release 
 

11/26/99 
Spain's Terra Networks Breaks Ground In Argentina, after already has sites in Brazil, Mexico, Chile, Peru and Guatemala. 

Sourec:  Reuters 

SWEDEN 
 
TELECOM 

10/29/99 
Telia AB and Telenor AS, the Swedish and Norwegian state-owned telecoms companies, completed their merger last week. 
http://www.totaltele.com/secure/cwiview.asp?Target=top&ArticleID=24391&Pub=cwi  
 
 

SWITZERLAND 
 
 

UNITED KINGDOM 

TELECOM 

12/1/99 
The U.K. regulator has finally bowed to industry pressure and set a deadline for the full unbundling of the local loop. In a statement issued today, Oftel has set a timetable of July 2001 for the former monopoly, BT, to allow rival operators to upgrade its copper lines and provide their own broadband services. 

BT says it will rollout its own ADSL services in March next year, covering 400 exchanges and approximately 6 million people. Other operators will then be able to lease BT's lines, though not to install their own equipment. 

"The threat of unbundling has now been transformed into action," said David Edmonds, Director General 
Telecommunications at Oftel. "It is in BT's own interests to crack on with this. If they don't deliver, their competitors will." 

The second phase of the unbundling will be full access in Summer 2001. Customers will be able to choose to have a second line provided by a rival operator to carry DSL services, or to have both Internet and telephony services down the same line, thus removing BT's presence altogether. Oftel said the new rules will encourage BT to invest more in plant, and will raise the U.K. from its current rather backward position in terms of Internet use. 

MCI WorldCom, one of BT's most vocal competitors, is delighted with the announcement. Phil Reynolds, U.K. Director of Regulatory Affairs at MCI, said: "The positive surprise for us was Oftel's clear indication that it will require a modification to BT's licence. The suggestion up to that point was that it would be a consensus with no statutory backing."  

BT's licence will be amended by the end of March. Oftel aims to have all the operational and technical issues resolved by September 2000, major trials to begin in January 2001 and all BT's systems in place by June 2001. David Edmonds referred to the timetable as "quite tough". MCI WorldCom's Phil Reynolds, however, said: "We think that it is a conservative timetable and in terms of trials things can be accelerated a little bit." 

While rival operators are only able to lease BT's own DSL services, they will be charged on the same terms as inhouse providers, a deal which Reynolds feels is alright "as an interim solution". Full access charges will be based on costs incurred by BT, plus a mark-up, and will be finally decided in April. Oftel estimates that it will cost operators in the region of £115 per line per year. 

BT has already begun trials of ADSL. Oftel states that service providers will be able to offer any technically compatible services. 

 Oftel is convinced BT will stick to the timetable and cooperate  with its competitors. "I don't think there will be foot-dragging,"  said Peter Walker, the regulator's Director of Technology. "I'm  not contemplating sanctions at this stage." 

Until today's announcement, Oftel had failed to specify whether BT's rivals would be able to "get our hands on the copper," in Reynolds's words, or would have to content themselves with selling BT's services.  David Edmonds said: "Given the pace at which the technology can be rolled out, the disadvantage to the U.K. of delay will be minimal." Oftel insists that the availability of DSL services in the U.K. will be at least as wide as in Europe and the U.S. "We are in the vanguard," said Edmonds. 

Source:  Emily Bourne 
 

12/1/99 
Fibernet Calls for Unbundling to Launch New Services in the UK 
Fibernet has become the latest company to weigh in the U.K battle to get BT's local loop opened up to newcomers. The data networking company has launched a DSL access trial offer with SDSL and MVL services for certain customers from the first half of next year. 

Initially it is having to offer the service over old analogue leased lines - installing its DSL equipment at either end to provide 2Mbps speeds. But the plan is to use the copper local loop - if it can get access - and the company is lobbying hard to make sure that U.K. regulator Oftel sees things its way.  

Nigel Pitcher, director of marketing at Fibernet Group plc. says bluntly that DSL is vital to the U.K. economy: "There is a very real danger that unless Oftel acts with greater urgency, U.K.com will be left way behind European competitors. SME U.K. will get left out of the e-commerce world."  

Pitcher says Fibernet is offering the quality of a 2 Mb leased line at less cost. Though final prices have not been decided, "leased line replacement will be at least a third of current 2 Mb technology." 

Oftel has already said that BT must open up the local loop, the connection from the exchange to the customer premises, by 1 July 2001.  

BT would like to install its own DSL technology then lease lines to its competitors, rather than allowing them to walk about in its exchanges with muddy boots on and provide their own upgrades. However BT is only talking about offering ADSL (Asymmetric Digital Subscriber Line) technology, which is more suitable for the home. Fibernet, targeting its services at the SME market, has been testing SDSL (Symmetric DSL) and MVL (Multiple Virtual Line) technology. So Fibernet wants full access to the exchange. MVL is slower but provides access 
over a greater distance than the 3 km covered by ADSL and SDSL. 

"It gives you broadband bandwidth upstream, from the customer's premises," said Nigel Pitcher, director of marketing at Fibernet Group plc. "For the first time, it will make broadband services available to the SME market." 

Meanwhile, Fibernet is testing its services over analogue leased lines from approximately half of its 51 PoPs. "We've proven to our satisfaction that the technology is sound. We're giving ISPs and voice carriers the opportunity to deliver their own services," Pitcher said. 

Equipment is being provided by Cisco and Paradyme. Fibernet plans to eventually roll-out DSL services on its French and German national networks, which were launched on 19 November.  

Source:  Emily Bourne 
 

11/26/99 
One.Tel Plans $20 Billion Mobile Network Spend in Europe, starting in the UK 
One.Tel, telecoms firm, has announced plans to spend up to $20 billion in the UK and W Europe to develop mobile phone networks with Lucent Technologies, partner.  

The firms will invest up to $2 billion to acquire spectrum licences. These licences will be available in the UK, France, Germany, Italy, Spain and the Netherlands. Venture financing of $10-$20 billion will be made available to fund the development, construction and operation of 3rd-generation networks in the UK and two countries in mainland Europe. 

Source:  RDSL 

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