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Enron Corp. - University of California | Office of The President

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<strong>Enron</strong> provides premium broadband delivery services for media and entertainment,<br />

financial services, general enterprise and technology companies. <strong>The</strong> transportation<br />

<strong>of</strong> media-rich content, including live and on-demand streaming video, over the<br />

EIN significantly enhances the quality and speed to end-users from that provided by<br />

the public internet.<br />

* * *<br />

In implementing <strong>Enron</strong>'s network strategy, Broadband Services is constructing the<br />

<strong>Enron</strong> Intelligent Network, a nationwide fiber optic network that consists <strong>of</strong> both<br />

fiber deployed by <strong>Enron</strong> and acquired capacity on non-<strong>Enron</strong> networks and is<br />

managed by <strong>Enron</strong>'s Broadband Operating System s<strong>of</strong>tware.... <strong>Enron</strong>'s bandwidthon-demand<br />

platform allows delivery <strong>of</strong> high-bandwidth media-rich content such as<br />

video streaming, high capacity data transport and video conferencing.<br />

637. <strong>The</strong>se statements were false when made because the EIN and the underlying BOS<br />

never worked. An internal EBS document showing data as <strong>of</strong> 12/00 reflected that only 3 U.S. cities<br />

– Las Vegas, Los Angeles, and New York – and London had pooling points that were<br />

running/operating by the end <strong>of</strong> the year, and pooling-point equipment installed in other cities was<br />

not yet operational because the equipment in each <strong>of</strong> those cities had not yet been connected to<br />

a network-operations center, which was required before the pooling-point equipment could transmit<br />

bandwidth beyond that location.<br />

638. <strong>The</strong> 12/00 internal document also reflects that the 3 U.S. locations were deemed<br />

operational only because <strong>of</strong> <strong>Enron</strong>'s 5/00 acquisition <strong>of</strong> WarpSpeed, a <strong>California</strong> s<strong>of</strong>tware company<br />

that had MetaRouter, a s<strong>of</strong>tware application capable <strong>of</strong> regulating bandwidth capacity and supply-on-<br />

demand at pooling points. <strong>Enron</strong> used WarpSpeed's MetaRouter s<strong>of</strong>tware in conjunction with third-<br />

party operating systems on the few hundred Sun Microsystems and Windows Media Player servers<br />

it had purchased, which <strong>Enron</strong> had to do because the BOS never worked.<br />

639. Thus, by 12/31/00 – 12 months after <strong>Enron</strong>'s top insiders had represented to analysts<br />

that <strong>Enron</strong> had 13 operating pooling points and that the EIN was the solution to the Internet's<br />

limitations – most <strong>of</strong> <strong>Enron</strong>'s fiber-optic network was dark and not operating. In truth, <strong>Enron</strong> could<br />

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