NL International Briefs

Cisco Systems to acquire Jahi Networks for $16 millionCisco 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. ECI Telecom, Redback partner on triple playECI Telecom and Redback Networks Inc. have partnered to deliver enhanced triple play (voice, video and data) services over broadband and IP networks. The companies stated in a November 17 media release that the agreement reflects their mutual vision to enable a comprehensive end-to-end solution for the rapidly evolving migration towards next generation broadband architectures and network convergence. Under the deal, the companies will offer an IP solution that includes ECI’s Multi Service Access Gateway (MSAG) solutions along with Redback’s broadband portfolio. Alcatel buying software-based Internet provider Right VisionAlcatel plans to acquire Eurpean-based software-based Internet applicances provider Right Vision. Based in Sophia-Antipolis, France, Right Vision serves more than 5,000 small and medium business customers through indirect channels that include Hewlett Packard, NEC and ACER. Right Vision also has partnered with service providers, such as France Telecom, British Telecom, and Belgacom. The deal is expected to close in December. Alcatel formed a partnership with Right Vision in September 2003 to integrate Right Vision’s solutions with its Alcatel OmniPCX Office communications server. Alcatel plans to deliver its first SMB offering that includes Right Vision in the first quarter of 2005. No price tag was disclosed for the acquisition. Global regulators to consider licensing in era of convergence Global regulators will look at updating their licensing and regulatory frameworks to address convergence at the International Telecommunication Union’s (ITU) global symposium, running December 8-10 in Geneva, Switzerland. A major objective of the conference is to achieve consensus on ways to promote the development of low cost access to broadband and Internet connectivity, which is particularly important to the developing world. The symposium will bring together regulatory authorities from both developed and developing countries. Participants are expected to issue a statement on the best practice guidelines for the promotion of low cost broadband and Internet connectivity. The ITU’s 2004 edition of its annual ITU publication, Trends in Telecommunication Reform, will be released during the symposium. FCC considers new regulatory approach in light of convergenceThe Yankee Group suggests that Federal Communications Commission (FCC) hearings centering around the rewriting of the Telecom Act of 1996 due to convergence should be used to further the wireless agenda. A research advisory issued by the Yankee Group on November 15 notes that the imminent merger of Cingular Wireless and AT&T Wireless will lead to more than 50% of cellular phone subscribers being controlled by entities owned by ILECs. "The four largest ILECs (BellSouth, Qwest, SBC and Verizon), with monopolistic wireline market power in each of their markets, spoke in unison to squash effective competition with the active collaboration of the FCC. When providers with 90%-plus market share in residential and 50%-plus in long-distance in their respective territory refuse to compete against each other in the other’s territory—and are nonetheless unleashed from their regulatory restraints—the only outcome can be a reduction of choice for consumers, which will lead to further concentration in favour of the largest competitor," notes the Yankee Group.

NL International Briefs

News | November 25, 2004

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