Continuing coverage of recent WT stories
Netscape Approved to Sell Encryption Technology
The White House gave Netscape Communications Corp., Mountain View, Calif., approval to sell 128-bit encryption technology over the Internet (WT, July 11). The technology was developed by RSA Data Security, Redwood City, Calif., to allow easy protection of electronic communications. Government officials had previously allowed the on-line sale of 40-bit encryption technology, fearing that stronger encryption technology would be downloaded by terrorists and criminals. Each extra bit used in the encryption technology roughly doubles its resistance to code-cracking efforts, such as those used by the FBI to decipher encrypted messages of suspected criminals.
The Path to the Channels
Network Imaging Corp. (WT, June 13) has announced its second partnership since hiring Jim Leto of PRC. Electronic Data Systems Corp. and NIC have announced the formation of a three-year strategic partnership. EDS will market, distribute and support NIC's 1View family of products. Prior to Leto's role as president and CEO of NIC, the company generated revenues through direct sales. It hired Leto to help steer the company toward the channels.
Coherent Shows Market Gains
Coherent Communications, Leesburg, Va., has found the right niche in telecom (WT, Jan. 25). The international company that specializes in echo cancellation for digital and acoustic communications, reported net income for the second quarter of $2.3 million or $0.15 per share on sales of $13.2 million. Daniel McGinnis, CEO of Coherent, says sales to the cellular industry in the United States and to the international long distance carriers in Japan and Latin America were especially strong. However, strong increases in sales of both transmission and teleconferencing equipment in North America, Asia-Pacific and Latin America were partially offset by a slowdown in the European market, when compared to the same quarter in 1995. To prepare for future growth, the company opened customer assistance offices in Tokyo's Shinjuku sector and in Bejing, and has placed an executive in Singapore to open a permanent office.
TelQuest Denied Request by FCC
The Federal Communications Commission denied a request by TelQuest Ventures, Stamford, Conn. (WT, June 13) to sell a new kind of direct broadcast satellite service. TelQuest had planned to use airwaves from Canada because the company claimed there is not enough spectrum left in the United States allotted for that business.
AT&T and MCI Communications Corp. complained to the FCC that TelQuest should not be allowed to use foreign airwaves. The FCC denied TelQuest's application on procedural grounds, which still leaves a door open for the company.