Maybe Nortel Networks CEO Bill Owens’ extensive contacts within the U.S. military are going to pay off in spades after all. Maybe Owens, a former U.S. Admiral, wasn't pulling our legs when he talked about the new strategic focus on winning more government/military business. Maybe I’m going to have to finally bite my tongue about Nortel’s fuzzy strategy. What’s changed? Well, Nortel unveiled a contract today with the U.S. Department of Defense to create a new private network. Sure hope this is a sign of things to come because Nortel’s 2004 third-quarter results were disappointing when it came to wireless, optical and Asian sales. Then again, maybe putting strategic emphasis on the military and government is a no-brainer given President George Bush is intent on continuing the war on terrorism. The military and government market have potential for growth, which is a lot more than you can say about other parts of the telecom market.
ZDNet's Russell Shaw provides some more details about the contract, and asks whether it provides people with more confidence in VOIP.

With all the focus on wireless data these days, it’s interesting to peak behind the curtain at the technology powering mobile devices these days. In Canada, an interesting play is Atsana Corp., which makes multi-media processors that let wireless devices provide high-quality video features without heavy power consumption. Atsana's processor will be a key component in Samsung’s new two-megapixel SCH-M309 camera phone, which will be introduced in China this month. Some other Canadian companies active in the wireless technology market are Michael Cowpland’s Zim Corp., which develops e-mail software, and 724 Solutions Inc., which is developing media gateways to help carriers efficiently deliver video.

There must be something to first-mover advantage amid news NetFlex Inc. now has more than three million subscribers. It's an impresssive feat given there is plenty of competition in the online DVD rental business, including retail heavyweights Wal-Mart and Blockbuster. NetFlix's success is a testament to a compelling service, good customer service and a savvy ability to react well to competition. Despite NetFlix's growth over the past year, its shares have not fared well. Motley Fool's Seth Jayson offers a take on whether it's time to jump into the fray. While NetFlix's attractiveness as an investment should be based on fundamentals, the big thing the company possesses is what I call "default status" in the high-tech world. Once you have it, it is difficult to wrestle away. Some well known examples include Yahoo, Amazon, Research in Motion and eBay.