July 24, 2000 12:15 PM, EDT

Trucking Technology Report - July 24

Today's Technology Headlines:

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Deutsche Telekom to Pay $50 Billion for U.S. Company

Weblink Wireless Announces Commercial Availability of Telemetry Through Wireless Systems

New Wireless Coalition Raises IEEE Ire

Keep on e-Truckin'

Let's Get...Vertical?

Deutsche Telekom to Pay $50 Billion for U.S. Company

Germany's Deutsche Telekom has agreed to purchase the U.S. cellular communications firm VoiceStream Wireless for a record $50.7 billion. This represents a purchase of $195 per share, which is more than double the stock price two months ago. Due to several factors, however, the sale is not definite.

Even if the deal falls through, though, Deutsche Telekom has agreed to invest $5 billion in VoiceStream – an investment that is meant to help VoiceStream successfully bid to the Federal Communications Commission to acquire licenses for new mobile phone technology. The $5 billion will represent a 10% stake in the American company.

The deal faces opposition from some regulators and lawmakers who are concerned that the German government's majority holdings in Deutsche Telekom could end up stifling competition. Some members of the FCC and Congress, such as Sens. Trent Lott and Tom Daschle, say that the sale of any wireless company to a foreign interest should not be allowed to go through so long as a foreign government has more than a 25% stake in the purchasing company.

Analysts believe that the sale will not be approved unless the German government reduces its stake to below 25%. The German company may find an ally in the European Union, who has intimated that blocking the sale could prove a violation of America's commitment to the World Trade Organization.

Deutsche Telekom has unsuccessfully made several attempts to acquire companies outside of Germany, such as was the case with the failed Sprint purchase. Deutsche Telekom was particularly interested in VoiceStream because it transmits using GSM, or global system for mobile communications, which is compatible with the GSM wireless standard used in Europe and Asia. New York Times (07/24/00) P. A1; Romero, Simon; Sorkin, Andrew Ross

Weblink Wireless Announces Commercial Availability of Telemetry Through Wireless Systems

WebLink Wireless said today that it will introduce its telemetry services for commercial use via the company's business division, called Wireless Control Systems, which focuses on the telemetry market. The company has already arranged a $18 million deal with Isochron Data Corporation, which will receive 100,000 devices from WebLink Wireless. The devices will be for Isochron's telemetry solutions in the ice distribution and vending markets.

WebLink Wireless owns and operates the biggest narrowband PCS network in the United States. Isochron's system uses the PolarCast™ technology that, in coordination with WebLink's technology, will enable remote collection of data from the company's machines, and also allow operators to solve problems without having to visit the equipment.

Isochron is the largest provider of application services for enterprise information solutions and wireless devices that transmit to field assets. PR Newswire (07/24/00)

New Wireless Coalition Raises IEEE Ire

The Broadband Wireless Internet Forum has become the setting for a debate over the IEEE's role in the industry coalition called the Industry Standards and Technology Organization. IEEE released a statement this week citing a number of conflicts with the forum's plans to deliver technology services, including broadband wireless Internet, based on Cisco's vector orthogonal frequency-divisional multiplexing technology. The company believes conflict of interest issues and market place confusion could result from adoption of a standard based on Cisco technology. CMPnet (07/21/00); Mannion, Patrick

Keep on e-Truckin'

Among the many electronic-communication possibilities springing up for truck fleets is eTruck.net, a cost-effective Web-centered product developed by Kinetic Computer.

Currently in beta testing, eTruck.net enables dispatchers to find detailed up-to-date information on vehicle locations through the Web, and the system also allows communication between dispatchers, drivers, and other employees. The system also allows driver-performance and DOT log tracking as well as engine faults and fuel-tax data.

Kinetic is also planning to improve the system continuously with no added charges for the users, and without the users even being aware of the upgrades. Fleet Equipment (07/00) Vol. 26, No. 7, P. 6; Birkland, Carol

Let's Get...Vertical?

In just a year and half, 600 business-to-business exchanges have emerged in the hopes of dramatically reducing supply chain costs. But whether these exchanges are vertical or horizontal may be a strong indicator of their chances for survival.

Vertical exchanges target a particular industry, while horizontal exchanges target a variety of participants across several industries. According to AMR Research, the majority of today's 40 strongest exchanges are vertical. Vertical exchanges such as CheMatch.com and Commerx's PlasticsNet offer trading infrastructure, services, and expertise tailored to their respective industry bases.

Horizontal exchanges such as SupplierMarket.com cannot boast of the same customized industry expertise, but their broad offerings can streamline the purchasing process. For example, a builder can buy a wide variety of plastic, metal, wood, and plaster materials from SupplierMarket.com. CIO (07/15/00) Vol. 13, No. 19, P. 50; Slater, Derek

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