The opinions expressed in this editorial are those of the author and do not necessarily reflect those of Decima Reports.

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Cisco Systems to acquire Jahi Networks for $16 million
Cisco Systems Inc. announced November 17 that it had reached a definitive agreement to acquire San Jose CA-based Jahi Networks Inc. for $16 million in cash and assumed options. The acquired company is a provider of network management appliances designed to simplify device deployment, configuration and management. The deal is subject to various standard closing conditions and is expected to close in the second quarter of Cisco’s fiscal year 2005. "Jahi’s technology will help Cisco build a practical and unique solution for management of existing and new devices," said Cliff Meltzer, senior VP for Cisco’s Network Management Technology Group. Upon close of the deal, the Jahi team will become a part of the Network Management Technology Group. Jahi was founded in 2003 and has 20 employees.

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Ken McDonald has been appointed VP of sales at FreeBalance Inc. He will be responsible for continuing to expand the company’s global business in government accountability solutions. He has over 30 years experience in the enterprise software market, including at Siebel Systems, Business Objects, UNISYS, and AT&T. While at AT&T Canada, McDonald oversaw a sales force that grew from four to 128 employees in just four years.

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Northwestel supplemental funding process begins
The CRTC has initiated in Telecom Public Notice 2004-6 a process to determine Northwestel Inc.’s 2004 and 2005 supplemental funding requirements. The process will also seek to assess the rollout of the company’s service improvement plan, and its recent quality of service results. In particular, the review will include an assessment of a) variances in the company’s capital plan, b) productivity measures, c) any changes to depreciation life characteristics, d) equal access expenditures, e) the rollout of the company’s service improvement plan, f) recent quality of service results, g) rollout of long distance competition, and h) major significant matters that may have a material impact on the company’s supplemental funding. In Telecom Decision 2004-64, amended by Telecom Decision 2004-64-1, the commission approved on a final basis 2003 supplemental funding of $9.6 million and set an interim rate for 2004 of $9.6 million. Comments are due on March 24, 2005.

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The introduction of Voice over IP (VoIP) technology into the telecommunications market will finally threaten the ILECs’ stranglehold on the market and create competition, argues a new report on the sector. NBI/Michael Sone Associates predicts that by 2007, the incumbents will hold only 83.7% of the residential market, and that the number of VoIP subscribers will rise to 1.1 million – about 9% of the total residential share of wireline local access lines. Further, NBI/Sone forecasts that cable companies will have 53% of the residential VoIP market.

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