Fast Breaks Newsfront: June 11, 2001

By eweek  |  Posted 2001-06-11

Cutting Costs

Exodus Communications plans to announce a new managed service today that is expected to dramatically cut information technology infrastructure costs for enterprise customers. The service, delivered through an alliance with Ejasent, is intended to prevent businesses from overbuilding their computer processing power to handle peak loads.

ISPs Merge

NetZero and Juno Online Services will have about 7 million subscribers — only about 1 million of them paid — when they merge in a $70.7 million all-stock deal to form United Online.

Bumpy Takeoff

Online travel agency Orbitz was deluged with calls and bookings during a rough launch last week. Orbitz, backed by major airlines including American Airlines and United Airlines, announced plans to double its call-center staff to more than 200 during the next three weeks.

Taking Stock

WorldCom gained shareholders approval to split its long-distance telephone business from its data and Internet operations. A new tracking stock, "MCIT," will reflect the phone business, while existing "WCOM" will represent the rest of the company.

Kovacic to FTC

George Washington University law professor and antitrust expert William Kovacic will soon join the Federal Trade Commission as general counsel. Kovacic has been a high-profile commentator in the Microsoft/Department of Justice trial.

Spam Law

Washington states tough law prohibiting senders of spam from forging headers or faking addresses to or from state computers has been upheld. A state Supreme Court overturned a lower court ruling that said the law unfairly burdened companies.

Rocket Fuel