Gigabyte GrapeVine

This month's GrapeVine was acquired from segments of information and articles published in selected computer and electronics industry trade publications in addition to several online sources. The information contained within is comprised mostly of factual information, editorial comments, and a few rumors from the electronics industry in general. Each month, we will try to focus on items of interest related to the computer/electronics industries as they become news- worthy, and hopefully, the GrapeVine will be both informative and entertaining to our readers.

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Topical Index

Topic 01. 1200-MHz Processor On The Horizon Topic 02. MS Nitro... Blast Or Bust? Topic 03. Clinton Vows "No New (Internet) Taxes" Topic 04. 3dcd Holograms Will Help MS Fight Piracy Topic 05. Be Inc. Shows Off Its First Pentium O/S Topic 06. U.S. Urges Duties Against Hyundai & LG Topic 07. E-Commerce Asks Govt. For Some Privacy Topic 08. Pure Java Browser Plans Still Brewing Topic 09. Announced Price Cuts Give VARs Headaches Topic 10. DOJ Also Keeps An Eye On Sun Topic 11. Intel May Soon Use StrongARM Tactics Topic 12. AMD & IBM Sign Foundry Agreement Topic 13. Business Purchases Via Internet Will Double Topic 14. Shareholders Like MCI/Worldcom Deal Topic 15. New Services & Products From IPs Topic 16. DVD Video Storage Questions Remain Topic 17. Will Notebooks Soon Equal Desktop Power? Topic 18. GPS To Spy On Law-Breakers Topic 19. High-End Workstations Will Be Assimilated Into NT Topic 20. Glut Of LCD Panels Brings Prices Down Topic 21. Impact Of V.90 Standard Still Unclear Topic 22. Intel DVD Software Available This Spring Topic 23. Voice Over The Internet

/// 1200-MHz Processor On The Horizon ///

It's called progress, and Intel Corp. is planning to more than keep up with it. Within the scope of its IA-64 road map, Intel is forging ahead with the transition to 64-bit microprocessors, and the inevitable extinction of the x86 chip. But until that all takes place, resellers should expect to gear up for at least two more 32-bit x86 processors-- namely Katmai and Willamette. The two new stars on the horizon are slated to succeed the well established Pentium II series, and hold the PC market line until IA-64 takes the spotlight somewhere around the year 2004. In a more immediate time line, Intel's Katmai, which is due by the second quarter of 1999, will extend the life of the Pentium II-based technology by boosting the clock speed up to 450-MHz. It will be manufactured on a 0.25 micron wafer, and is projected to move into the 750-MHz speed range by 2000 when the construct- ion process migrates to a 0.18 micron design. When Willamette arrives on the scene in mid-2000, it may mark the final version of an Intel chip to employ the x86 micro- processor architecture, according to industry analysts. The Willamette, however, will usher in some phenomenal clock speeds-- somewhere in the range of 1.2-GigaHz (1200_MHz). The first true IA-64 processor, code named Merced, may arrive in the second half of 1999, and will render a clock speed of 800-MHz. Merced will also be backward compatible with 32-bit software, but its price when first introduced could run as high as $4,000. As the chip size decreases by the year 2004 down to 0.10 micron, some observers are estimating that IA-64 processor prices could fall below the $250 mark, which would place the new processor technology back into the mainstream PC market. For now, the month of April will usher in a low-end version of the Pentium II called "Covington." It will be produced without any Level 2 (L2) cache, and will run at 266-MHz. Intel's strategy will be to reserve the "Pentium II" trade mark for higher-end business machines selling for $6,000 and higher. For the mid-to-high-end systems, the "Mendocino" CPU will be placed on the market before the end of this year. It will carry 128-Kbytes of L2 cache, and will be targeted toward the $1,000 to $1,200 PC market, according to Intel sources. Another change for this month will be the introduction of the 100-MHz bus Slot 1 CPUs and the new chip sets to support them. By June, Intel should have the high-end Slot "2" processors ready to roll. For 100-MHz bus operation, the company will sell the 440EX and 440BX chip sets, which replace the 440LX 66-MHz chips. Slot 2 technology will require either the 440GX or 450NX chip sets.

/// MS Nitro... Blast Or Bust? ///

In the midst of controversy as usual, Microsoft Corp. has some resellers worried over its plan to host an electronic-commerce site to promote only Microsoft products. The plan calls for the new site to be hosted from Microsoft.com, with provisions to let users search through a complete line of products with the option to buy the software directly from Microsoft or through one of its designated resellers designated by an icon on the screen. Some resellers are concerned that Microsoft may collect more than its fair share of information from the users browsing the e-commerce site, and eventually use that information later to target those users for direct sales. The software giant has identified the program with the code name "Nitro," and has acknowledged that it presents a chance for its resellers to reap sales from the "thousands" of users who daily surf the Microsoft site. According to one Microsoft official, the company claims approximately 1.5 million hits on its site every day.

Topic 3

/// Clinton Vows "No New (Internet) Taxes" ///

In his speech at the BancAMerica/Robertson-Stevens Inc. Tech- nology 98 conference held in San Francisco last month, Bill Clinton boldly stated his policy on the issue of Internet taxation. Clinton said he is backing the proposed Internet Tax Freedom Act that is slowly working its way through Congress, where it was expected to come to a vote last month in the House of Representatives. The President stated that he would support the measure because it would prevent both state and local governments from laying "discriminatory" taxes on electronic commercial transactions. This latest stand by the President puts him at odds with the National Governors' Association, which has been pushing for an alternative program that would give more taxing authority to state governments. The Internet Tax Freedom Act was initially sponsored by Rep. Christopher Cox (R-California), but picked up bipartisan support as it progressed through the U.S. House of Representatives.

Topic 4

/// 3dcd Holograms Will Help MS Fight Piracy ///

Microsoft Corp. will use a newly acquired licensed technology to embed holograms into its CD-ROM software products in an attempt to thwart potential counterfeiters. The licensed technology is called 3-D i.d., and was acquired from 3dcd, LCC, which is the product of a joint venture of Applied Holographics PLC (United Kingdom) and Charlottesville, Virginia-based Nimbus CD International. The hologram is etched into the CD-ROM disk during the mastering phase of production, and according to one Nimbus spokesman, it becomes an integral, unalterable part of the disk that among other things, contains a code that identifies where the CD was manufactured.

Topic 5

/// Be Inc. Shows Off Its First Pentium O/S ///

The first production copies of the Be operating system (BeOS) for Intel Pentium processors were shown at the Be Developer Conference held in Santa Clara, Ca. last month. Be Inc. demonstrated its new OS on PC and PowerMac systems, where various applications of video, audio, development tools, and documentation programs were tested, according to reporters attending the conference.

Topic 6

/// U.S. Urges Duties Against Hyundai & LG ///

The U.S. Commerce Department recommended last month that DRAM dumping duties be levied against two South Korean chip makers. A preliminary decision by the Commerce Dept. to set duties of 12.64 percent against Hyundai Electronics Industries Co. Ltd. and 7.61 percent against LG Semicon Co. Ltd. has some analysts worried that the principal line of supply of DRAM chips could be affected. Officially, the verdict came as a response to a six-year old objection filed by Micron Technology Inc. against the South Korean companies. And, after the formal charges were launched, both Hyundai and LG petitioned the World Trade Organization (WTO) for an appeal. As the story unfolded, it was revealed that the two companies had exported about $2 billion worth of dynamic random access memory (DRAM) chips to the U.S. during the past twelve months. One Hyundai official claimed that the U.S. Commerce Dept. made serious errors in its accusations that his company sold the DRAMs below production costs just to flood the market. He went on to blame a "computer program" error for arriving at the "substantially inflated" penalty against his company. The top brass from LG Semicon, however, offered no comment to the industry reporters.

Topic 7

/// E-Commerce Asks Govt. For Some Privacy ///

All they are asking for is a consistent standard of privacy so that Internet enterprises have a chance to succeed. An electronic commerce consortium called CommerceNet has offered the suggestion that government officials abstain from seeking out confidential information from businesses. CommerceNet's public policy director, Kay Caldwell petitioned the Federal Trade Commission to chart new legislation that would give businesses the ability to adopt privacy policies that cannot be "compromised" by over zealous government agencies seeking information beyond their legal authority. Caldwell stated in an interview last month that one of the greatest problems with present-day privacy policies is that the government habitually disregards them. Ms Caldwell went on to say that they (the legislators), in many cases collect more information than is necessary. Information such as the names of landlords, number of employees, price of purchase of the business, amount of rent paid, and names of vendors or suppliers used by the company. In its bureaucratic way of thinking, the government deems it appropriate to acquire all this information for "tax" purposes. But the information gathering does not stop there, according to Caldwell. The government agencies often require personal information to be divulged, even when there is no proven legal authority to do so. CommerceNet poses the question of how can Internet business owners be expected to comply with or sanction privacy policies when the government frequently asks business to disregard them?

Topic 8

/// Pure Java Browser Plans Still Brewing ///

The development of a pure Java-based Web browser has the staff at Netscape Communications Corp., IBM Corp., Oracle Corp., and Sun Microsystems Inc. burning the midnight oil. Business analysts say that it is unclear yet as to which of the above four companies will be first to actually create it, who will pay for it, and when it will be released? Now that Netscape decided to postpone development of its "Javagator" browser last month due to lack of funds, it is looking to its Java allies for help. Sun and its partners all agree that a Java-only Web browser is a significant factor in gaining support for their NC (Network Computer) blueprints and other Web related technologies. The urgency of the situation was summed up by an Oracle spokesman who noted his company is engaged in talks with Sun and Netscape to decide how to jump-start the pure Java browser project and then make sure that Java doesn't succumb to the alternative-- Microsoft Explorer.

Topic 9

/// Announced Price Cuts Give VARs Headaches ///

Last December, Intel Corp. announced a 33 percent price cut on the Pentium II 233-MHz processor. Then on March 16, the chip maker called out an 18 percent cut on Pentium II 333-MHz prices. Now, on the 15th of this month, Intel has scheduled a "price adjustment" covering its entire product line. This strategy has made many value-added resellers (VARs) and other PC dealers very upset. Many complain that it has become predictable by their customers that every quarter will bring another price cut from Intel, so they (their cusromers) put off placing any new orders in between quarters. They say that the market practical- ly slows to a stop in anticipation of those price cuts. One observer noted that buyers sometimes wait up to a month at a time for an expected price break, and being that they are quarterly, that just about kills four months orders per year. Many resellers are afraid to keep Intel processors in inventory in fear that they will get stuck with chips purchased at the older/higher prices. They can confirm many orders are lost when their customers have found lower priced Intel chips from a vendor that has just received a large quantity at a much lower price. Some VARs now prefer to pay to have their Intel processors "over-nighted" on demand rather than being caught with over-priced inventory.

Topic 10

/// DOJ Also Keeps An Eye On Sun ///

While the eyes of the media and the U.S. Department of Justice have been focused on Microsoft Corp. for the past six months, it may come as somewhat of a surprise that the DOJ is also taking a close look at Sun Microsystems Inc., but from a different viewpoint. The DOJ and several states, have formally asked Sun for information about the company's dealings with Microsoft. According to news sources, Sun filed suit against Microsoft last fall, claiming Microsoft violated compatibility requirements of its Java licensing agreement. One Sun official referred to the Java licensing question during a March 3 Senate Judiciary Committee hearing chaired by Sen. Orrin Hatch (R-Utah). A DOJ spokesman said that because there is an open investigation in progress, his agency could not comment on the issue. But several of the issues brought up at the committee hearings are being looked into, sources said, including Microsoft's licensing arrangements with Internet content providers and alleged attempts by Microsoft to co-opt Java or sabotage Java's potential threat to Windows. Microsoft competitors believe the company has done nothing more than attempt to further fragment the Java market by tying Java development more closely with Windows. A grassroots organization called the Java Lobby, which actively supports Java developers, has come out strongly against Micro- soft's move. One of the groups spokesmen has called for Java developers to unite and take a stand against what it calls "tyranny" from Microsoft. Consumer activist Ralph Nader said the Senate hearing was an expression of support for the Justice Department. Mr Nader went on to say that he thinks The Justice Department is going to file a more comprehensive antitrust suit against Microsoft, pertaining to Windows 98. As the government oversight investigation continues, Nader predicted that there will be more whistle blowers and more official documents turning up in the case to keep the momentum going in favor of the state attorneys general. Microsoft, however, appears to be undaunted by the nay-sayers as it has "un-officially" set the launch date for Windows 98 as June 25. Contributing to its confidence level is the solid round of good reports coming from the 100,000 people who paid $29.95 for the privilege of testing the Beta 3 version of the new operating system. Still code-named "Memphis," the Beta got a thumbs-up by the testers for its "stability" as compared to Windows 95. New features such as performance enhancements, bug fixes, USB (Universal Serial Bus) support, and a "multi-monitor" attribute, which permits a user to run two or more monitors simultaneously were popular among the Beta testers. Retail pricing for the market version of 98, as estimated by one trade source, will be in the $85 to $95 range.

Topic 11

/// Intel May Soon Use StrongARM Tactics ///

In its push to put more muscle into the low-cost microprocessor category, Intel Corp. announced last month that it had signed a license agreement with Advanced RISC Machines Ltd. for their StrongARM processor. Intel has managed to dominate the PC market so far with its relatively high-priced chips based on the CISC (Complex Instruction Set Computing) technology, but its scant offerings of RISC (Reduced Instruction Set Computing) chips have been clobbered by other brands offering more powerful and less expensive products. With the licensing deal penned with ARM, Intel will have all the necessary patents to produce its own low-cost RISC-based StrongARM chip, which was acquired from Digital Equipment Corp. and licensed as the [SA-110, SA-1100, and SA-1500] processors. [[The SA series was originally co-designed by ARM and Digital]] It was noted by some market observers that the StrongARM chip is predicted to become a key factor in Intel's strategy to expand into the handheld PC and set-top box markets.

Topic 12

/// AMD & IBM Sign Foundry Agreement ///

A recent agreement between Advanced Micro Devices Inc. and IBM Corp. will give much needed manufacturing benefits to AMD. The two-year pact specifies that IBM's Microelectronics division will build AMD K6 processors at its 0.25-micron fabrication plant in Burlington, Vermont. In the past, AMD has had problems in converting its fabrication plant in Austin, Texas to the 0.25-micron wafer architecture. Industry analysts are showing some skepticism as to whether the partnership agreement may have come too late or not. Some theorize that IBM will not be able to gear up in time to produce the K6 in sufficient quantities to meet market demands.

Topic 13

/// Business Purchases Via Internet Will Double ///

Forecasters are predicting that the number of businesses that are planning to use the Internet for a major portion of their buying will double by the end of 1998. A survey conducted by the Thomas Register and Visa U.S.A shows that almost 21 percent of their survey respondents indicated they plan to place more than half of their orders over the Internet this year. About 10 percent of those companies already use the Internet for more than half of their orders, according to the study. Of all those companies, 40 percent said they use the Internet each working day with purchasing dollars ranging from a $13 order-- up to as much as $10 million in one shot. The survey evidenced that the average monthly amount spent by the companies over the Internet was about $1,100 or less at present.

Topic 14

/// Shareholders Like MCI/Worldcom Deal ///

The investors backing the MCI Communications/WorldCom Corp. merger have been publicizing their solid approval all along, but gaining a thumbs-up from the general public and the U.S. government may be an uphill battle. The FCC and the Justice Department have both targeted the recent merger plans for analysis and inquiry, and have solicited in- formation from other carriers that provide Internet backbone services. One practice that the government wants to clarify is that of "peering," and whether backbone providers should be required to pay to establish private or peer connections with the major carriers. According to one trade publication, peering can be defined as a negotiated relationship between carriers so as to provide faster and less congested access points-- allowing data to move faster between networks. The Justice Dept. wants Internet backbone providers to offer detailed information about their network traffic with the hope of determining just how dependent the carriers are upon each other. The FCC, meanwhile, has opened its ears to all those who oppose the merger, and will weigh that information against the documents submitted by MCI and WorldCom. Both government agencies have stated that they want to better understand the consequences and effect the merger would have in relation to the entire Internet backbone populace. In its present design, the MCI/Worlnet giant would control as much as 60 percent of the Internet backbone, according to the analysts.

Topic 15

/// New Services & Products From IPs ///

Last month ushered in a host of new services from several Internet Providers (IPs). A subsidiary of WorldCom Corp. called Uunet Technologies Inc. announced its Dedicated Symmetric Digital Subscriber Line service, which provides bi-directional operation at 768-Kbits per second. That works out to more than 13 times the speed of a 56-Kbps modem and more than 26 times faster than a 28.8-Kbps unit. The new service is targeted toward business customers who want extra-fast Web access. Uunet calls the new service "Preferred Access 768, which is actually an expansion of its Preferred Access Service initiated last year. 768-Kbps service will first be available in New York, NY and a few selected cities in California, as reported in one trade publication last month. The cost to hook-up to the new service will range from $150 to $250/month depending on the subscriber's location.

Topic 16

/// DVD Video Storage Questions Remain ///

Although DVD (Digital Video/Virtual Disk) technology promised to bring with it vast amounts of storage capacities, some standards and compatibility issues are holding back wide acceptance of the DVD machines for PC use. With the amazing potential of 4.7-Gigabytes of storage, the DVD is poised to drive the CD-ROM into becoming an obsolete relic. But that won't happen in the very near future unless the DVD can overcome two major hurdles. The first one is price-- with a $200 to $400 sticker, the DVD will not keep pace with the rest of the industry markets. Secondly, the lack of software applications, especially for business, will prove to be a major obstacle to overcome unless the software industry can soon take steps to correct the situation. The rapid advancements in technology have also been responsible for the wait-and-see attitude taken by the potential DVD buyer. Before some drive makers could get their 1x DVD-ROM drives to market, the 2x units were announced by their competitors. Now, with talk of the 4x DVDs on the horizon, why buy a 1x or 2x version? Add to that, the fact that the original 1x DVDs could not read CD-R or CD-RW disks due to their lack of a proper laser. The newer 2x DVD units do, however, have a second laser installed that allows them to read both CD-R and CD-RW disks. But the newest threat to the DVD has taken the form of the Divx drive. This new disk technology is based on DVD, and will play older DVD disks, but older DVD systems will not be able to play a disk recorded on a Divx machine. But the use of Divx media by the consumer gets a little bit complicated. To use a Divx player, it must be connected to a phone line and be linked to a central Divx office. The central office will monitor all use of the Divx movie disks, which will cost about $5 for a two-day viewing window that begins when the Divx disk is first inserted in to the player. Once the Disk "expires," it will no longer play. The only practical side to this technology would be that a rented disk does not have to be returned when it expires. However, as you may have already surmised, you cannot take one of your Divx disks to a friend's house to play it unless he also has paid the rental fee. [ I'll just hang on to my VCR & TV. My 15" monitor is too small for movie viewing anyway! ]

Topic 17

/// Will Notebooks Soon Equal Desktop Power? ///

The answer to that question is yes-- at least it is a distinct likelihood in the very near future, according to blueprints on the design desks at Intel Corp. Intel's plans for next year call for the gap between notebook and desktop PC performance to be greatly narrowed through a technology code-named "Geyserville." Under the plan, OEMs (original equipment manufacturers) and value-added resellers (VARs) will be offered a platform to bring about an equivalent in performance between the two machines. Depending on the power source, the highest-level notebook PCs will rival the performance of desktops when Geyserville makes its debut early next year. In 1999, Intel will begin migration to its next-generation processor for notebooks. The new CPU is code-named "Katmai," and is expected to be installed in note- book units by late-1999. The desktop version of Katmai will arrive on the scene by the second quarter of 1999, according to industry forecasters. Geyserville processors will run at multiple performance levels, which are determined by a core operating frequency and voltage. When the notebook PC is powered only by its internal battery, the processor runs at its lowest performance level-- somewhere in the 80 percent range. When powered by an external power supply or through a docking station, the Geyserville will run at maximum. When running at optimum performance levels, it is expected that the new processor will require a second fan or some form of augmented cooling. An initial boost to notebook power is due to hit the market this month in the form of a Pentium II processor, which is designed for notebook operation. Intel officials had not released wholesale price information on the new technologies when this issue of the GrapeVine was edited.

Topic 18

/// GPS To Spy On Law-Breakers ///

An Omaha, Nebraska company has enlisted into a pilot program with the authorities in Atchison County, Kansas to track and monitor adult and juvenile offenders. Advanced Business Sciences Inc. will offer their tracking services, which incorporate GPS (Global Positioning Systems) and other wireless computer technology to zero-in on the exact location of the person being targeted.

Topic 19

/// High-End Workstations Will Be Assimilated Into NT ///

As with the Borgs of Star Trek fame, the Wintel leviathan that is made up of Microsoft Corp. and Intel Corp. have made it clear to the high-end workstation market that to resist them is futile-- they will be "assimilated" into Windows NT. The two lords of computing, Microsoft chairman, Bill Gates and Intel president, Craig Barrett, have devised a program to aid high-end workstation developers migrate from Unix-based systems into Windows NT-based systems. As part of the strategy, Bill Gates and company have introduced a new software update that increases the interoperability between NT workstations, NT servers, and Unix platforms. The digital dynamic duo of Gates and Barrett championed an event called the Workstation Leadership Forum 98, at which they introduced the Migration Assistance Program (MAP). As reported by an observer present at the exposition, MAP is designed to help workstation independent service vendors develop programs for Intel 32-bit technologies and Windows NT systems as they lead up to the release of the Intel 64-bit Merced processor. It was noted that some systems vendors are now offering MAP participants special incentives or discounts for the purchase of Windows NT-based workstations or Intel architecture. For now, the program will accommodate about 30 companies, but will be expanded later.

Topic 20

/// Glut Of LCD Panels Brings Prices Down ///

Resellers and consumers are now able to take advantage of rapidly falling prices on notebooks and flat-panel monitors due to the over-abundance of TFT (thin-film transistor) LCD (liquid crystal display) panels-- mainly in the 12.1-inch category. Improved manufacturing techniques and the resulting increased yields have contributed to the surplus in TFT screens, as noted by a marketing representative at Samsung Semiconductor Division. One report out of Irvine, California stated that Samsung's new LCD fab has increased its production capacity for the 12.1- to 17-inch LCD categories. The company has reaped the benefit of lower prices across the board now that it is able to build more LCDs per sheet of glass than most other modern fabrication plants. The Samsung spokesman added that the new plant will also be able to produce greater numbers of 15" and 17" LCD modules for flat-panel monitors and the next-generation of large-screen notebooks. One market analyst predicted that 12.1-inch TFT-LCD prices will continue to fall until the third quarter of this year-- then we will see prices level off.

Topic 21

/// Impact Of V.90 Standard Still Unclear ///

Although the V.90 data transfer standard was ratified by the International Telecommunications Union in February, some resellers and consumers say that some points are still unclear. Now that resellers can offer V.90 56-Kbps modems to their customers, the incompatibility issues of x2 vs. K56flex should go away soon. Many modem vendors now offer "dual-mode" V.90 modems that can operate under x2 or K56flex specifications to compensate for the high-percentage of Internet service providers who are not expected to upgrade to V.90 for another year or so. Customers who now own either a K56flex or x2 modem can upgrade them on their own by downloading software from the Web site of the manufacturer of the modem. It was noted by one observer that 3Com Corp. and Zoom Telephonics are already shipping V.90 compliant modems.

Topic 22

/// Intel DVD Software Available This Spring ///

In its continued thrust into the graphics market, Intel Corp. will soon release its "Intel DVD" software product, which will perform DVD operations through the system's microprocessor. Rather than relying on a decoder card, Intel's approach would eliminate the need for extra DVD hardware to play MPEG-2 video and audio by tapping into the resources of the Pentium II chip. While not likely to be found on the dealer's shelf, Intel plans to do a booming business through PC OEMs with its new software DVD solution.

Topic 23

/// Voice Over The Internet ///

Through existing Internet protocols and modem technology, we have the capability to conduct long-distance voice conversations over the Internet. But some VARs and long-distance carriers are asking-- who should reap the profits? Last month, at the Voice on the Net show held in San Jose, Ca., the guests pondered over the questions about market impact and just where the technology will position the established tele- communications carriers and the VARs that sell or advise their customers of the services. In the past, many resellers were wary of voice over Internet Protocol (IP) because they did not want to put their reputation in jeopardy over what they believed to be an uncertain new technology. This appears to be changing somewhat now. The VARs are looking at potential savings for their business customers as well as profits to be gained in the process now that the quality of the products and reliability of the services seems to be bearing out. Upcoming IP products from companies such as Clarent Corp. in Redwood City, Netspeak Corp., Boca Raton, Fl., and Concentric Network Corp., Cupertino, Ca., are expected to provide better performance and more reliable equipment based on the H.323 IP specifications recently established. The new services will allow users to place calls to more than 200 countries over the Internet. As compared to the older Internet telephony, which entailed mostly consumer services that ran over the pulic Internet, voice over IP is better suited for business applications and corporate intranet usage. Voice over IP gives corporate management more control over communications traffic and lets them avoid the extra expense of leased lines. Web phones can be used within local area networks (LANs) or over the Internet through voice over IP technology, and at a big savings over conventional long-distance calls. But this has the established long-distance telephone companies just a little bit worried as they fear they will be forced to build more networks that will, in turn, divert customers and revenue away from their existing systems. The Regional Bell operating companies, GTE Corp., and others reportedly lobbied Congress in 1997 to prohibit IP telephony, but the FCC denied the requiest on the grounds that it would impede technology development. Congress then put the petition on hold. [ The conclusions established at the Voice on the Net show were not published when this issue GrapeVine was edited. ] Gary Miller

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