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The unusual suspects by Telephony staff
Online Exclusive, Dec 17 2000
The companies Telephony rounded up for this year’s Ten to Watch lineup
represent everything but the ordinary. No typical telco mentalities or
predictable me-too alibis to be found here: The rap sheets of the
companies in this crowd provide proof that standing out from the crowd of
communications service providers these days means taking a risky road.

This Telephony staff report profiles companies we believe will make
headlines during the next year—maybe indefinitely. Their unifying
characteristic is their competitive disposition. All but one of the
organizations that make up this year’s Ten to Watch were founded within
the past five years, and several celebrated their first birthdays this year.
That means they’ve been brought up against a backdrop of contention
where they’re always watching their backs.

But while the companies profiled on the following pages might be
considered accomplices in their push for competitive ascension, the
technology formats each of them wields are very different. Some of them
are lighting the way with glass—laying fiber in the metro network or using
it to connect cities and hubs. Some are shooting mobile apps across the
spectrum. Still others are not banking on a single technology but instead
keeping their options open.

The customer hits of these outfits also is varied, as are the services they’re
aiming to provide. Because most are new on the scene, they’re typically
going for high-end markets that will give them the biggest scores. But
some are stepping into the shadows, trying to take over smaller territories
where their more established rivals don’t yet lurk. Some of them are
taking new slants on old standby services such as voice, while others are
angling for new ways to host and deliver data content.

The burden of proof is on these companies to show hard evidence of their
potential. They’re featured here because they’ve done something to
deserve it—maybe they’ve raked in a lot of dough, shown that they’re
technologically crafty or proved themselves worthy of a showdown by
putting a dent in the customer base of their adversaries. Now they must
deliver on their promises.

—Jason Meyers
. . . .
. . . .


All about control

Riding on the cusp of a technological wave is among the most exhilarating
times for any company. Of course, there’s always the danger of getting
swamped by the crest or being taken out by the undertow.

But for Jerry Parrick, CEO and founder of Yipes Communications, the thrill
of being at the front of the metropolitan optical wave is unmatched. Having
served as chairman and CEO of Nokia’s high-speed access group and as
president of the former U S West !nterprise unit, Parrick is familiar with the
spotlight. The difference this time around is that he heads a company at
the forefront of a technology that’s familiar to many of his customers:
Ethernet.

Broken down into its basic services, Yipes provides enterprise users with a
gigabit Ethernet connection between LANs that can be located as close as
next door or across the country. And while a number of companies claim to
be charging into the gig-E market with big pipes, Yipes’ plan is about more
than throwing huge amounts of bandwidth at the customer.

"We have a very ambitious plan to empower customers to control this
network," Parrick says.

Indeed, it’s that control factor that makes the Yipes plan different than
many others. Coining the term "Just In Time Bandwidth," Yipes’ three
currently available services let users control the amount of bandwidth they
want on a dynamic basis. "We characterize it as an application-aware
network," Parrick says.

Though somewhat new to the metro market, Yipes isn’t without
competition, namely incumbent carriers that have been offering to extend
ATM-based services. In response to the gig-E invasion, ATM advocates
continually point to the technology’s inherent quality of service (QOS)
capabilities. However, while Yipes’ technology is based on the Internet, it
isn’t quite the same, Parrick says.

"What [ATM providers] will generally cite is the common knowledge of QOS
in the Internet," he says. "The fact of the matter is, the network
architecture we’re using has several layers of QOS."

The architecture includes queueing behind every port, which lets the
company identify different levels of QOS. In the WAN, because the
company is buying transit from the largest carriers offering the most
stringent service level agreements, it also can enable multiprotocol label
switching.

"We have not had a single incident where an MIS director said to us, "No,
you don’t have enough QOS." Parrick says.

Ironically, Yipes is kicking its buildout into high gear at a time when the
investment community has turned sour on a number of other plans. That’s
particularly true of competitive carriers—a fact with which Parrick is well
acquainted. Still privately funded, Yipes has received about $230 million,
mostly from venture capital houses.

"I would characterize it as too many entrants in essentially the same
market niches," he says. "I don’t think you can have 25 or 30 competitors
in the same market without there being a shakeout."

In the metro market, though, there’s still enough room for differentiation,
he adds.

"If I was just offering big fat pipes, then I could say that the service is
going to become a commodity," Parrick says. "If I start laying on the
capability that I give customers, I’m no longer talking about a big, fat,
commoditized pipe. That’s actually a value-add."

—Vince Vittore
. . .

- - - -
Antarius
 
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Autor (Datum des Eintrages): Antarius  (18.12.00 22:46:06)
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