Consolidated

Cash Flow Statement

Amount in SEK thousands
Ongoing operations
Operating earnings
Depreciation
Other items not affecting liquidity
Interest received
Interest paid

NOTE

5
6

Cash flow from ongoing operations

before change in working capital
Change in working capital
Decrease/increase in inventories
Increase in receivables
Increase in current liabilities
Cash flow from ongoing operations
INVESTMENT ACTIVITY
Acquisitions of tangible fixed assets
Cash flow from investment activity

1999

-218,134
747
1,242

-114,469
620
-10

8,136
-8

1,897
-33

-208,017

-111,995

8,452
-8,469
6,173
-201,861

-19,155
-5,895
16,022
-121,023

-911
-911

-969
-969

253,750
253,750

218,606
218,606

50,978
125,026
176,004

96,614
28,412
125,026

25

FINANCING ACTIVITY
Warrants programs/new issues
Cash flow from financing activity
Increase in liquid funds
Liquid funds, opening balance
Liquid funds, closing balance

2000

15
15

Parent company
Income Statement
1 Jan 200031 Dec 2000
9,182
-6,126
3,056
-39,951
-46,281
-128,932
-212,108
9,350
-8
-202,766
-202,766

1 Jan 199931 Dec 1999

2,867
-2,531
336
-18,610
-24,502
-74,700
-117,476
2,045
-33
-115,464
-115,464

NOTE

31 Dec 2000

31 Dec 1999

2,011
2,011

1,846
1,846

500
500

0
0

7,502
3,201
4,024
20,697
10,503
3,616
172,654
222,197
224,708

15,893
3,262
732
5,659
5,570
3,277
124,619
159,012
160,858

1,572
396,859

1,402
334,515

Accumulated deficit
Brought forward deficit
Net earnings
Total shareholders' equity

0
-202,766
195,665

-82,589
-115,464
137,864

Current liabilities
Accounts payable
Other liabilities
Accrued expenses
Total liabilities
Total liabilities and shareholders' equity

17,791
2,829
8,423
29,043
224,708

15,971
1,816
5,207
22,994
160,858

None
None

None
None

Amount in SEK thousands

Net sales
Cost of goods sold
Gross earnings
Marketing expenses
Administration expenses
Development expenses
Operating earnings
Other interest income and similar items
Interest expenses
Earnings before tax
Tax
Net earnings

NOTE
1

2,4
2,4,14
2,3,4
5
6

Parent company
Balance Sheet

26

Amount in SEK thousands

ASSETS
Tangible fixed assets
Total tangible fixed assets
Financial fixed assets
Shares in group companies
Total financial assets
Work in progress
Finished goods
Customer receivables
Receivables, subsidiaries
Other receivables
Prepaid expenses and accrued income
Cash and bank balances
Total current assets
Total assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Shareholders' equity
Restricted equity
Share capital
Share premium reserve

Pledged assets
Contingent liabilities

10
11

12

Parent company
Cash Flow Statement
Amount in SEK thousands
Ongoing operations
Operating earnings
Depreciation
Other items not affecting liquidity
Interest received
Interest paid

NOTE

5
6

Cash flow from ongoing operations

before change in working capital
Change in working capital
Decrease/increase in inventories
Increase in receivables
Increase in current liabilities
Cash flow from ongoing operations
Investment activity
Acquisitions of financial fixed assets
Acquisitions of tangible fixed assets
Cash flow from investment activity

2000

1999

-212,108
747
1,242

-117,476
620
166

8,108
-8

1,879
-33

-202,019

-114,844

8,452
-23,602
6,048
-211,121

-19,155
-11,460
15,894
-129,565

-500
-911
-1,411

0
-969
-969
27

Financing activity
Warrants programs/new issues
Cash flow from financing activity
Increase in liquid funds
Liquid funds, opening balance
Liquid funds, closing balance

15
15

260,567
260,567

226,741
226,741

48,035
124,619
172,654

96,207
28,412
124,619

Accounting principles
and notes
to the accounts
GENERAL ACCOUNTING PRINCIPLES

THE FOLLOWING DEPRECIATION PERIODS HAVE BEEN

The accounting principles applied comply with the Annual

Accounts Act and are consistent with the recommendations
and statements of the Swedish Accounting Standards Board,
the Swedish Financial Accounting Standards Council and
the Swedish Institute of Authorized Public Accountants.

APPLIED:
Tangible fixed assets
Equipment, tools and installations

THE CONSOLIDATED ACCOUNTS

28

The consolidated accounts include two wholly-owned subsidiaries of the parent company. The consolidated accounts
have been prepared using the acquisition accounting method
and in accordance with recommendation no. 1 of the
Swedish Financial Accounting Standards Council.
Net Insight AB applies the current method for consolidation of the subsidiaries financial accounts. This implies that
the subsidiaries assets and liabilities are translated at the
exchange rate prevailing on the balance sheet date. All
income statement items have been translated at the average
exchange rate for the year. Translation differences are
charged directly to the consolidated shareholders equity.
VALUATION PRINCIPLES, ETC.

Assets, provisions and liabilities have been valued at acquisition value unless otherwise indicated below.
DEVELOPMENT EXPENSES

Expenses related to development initiatives are posted as

they occur.

5 years

NOTES

(all amounts are in SEK thousands unless stated otherwise)

NOTE 1
NET SALES

Net Insights revenue largely comprises fixed-fee projects

charged directly to expenses and relates exclusively to the
parent company for the year in question. The projects are
charged to expenses in conjunction with customers acceptance of delivery. When charging the projects to expenses,
expected outstanding revenue is also take into account and
provisions are made for estimated outstanding expenses.
NOTE 2
HUMAN RESOURCES AND PERSONNEL EXPENSES

Sweden
USA

Average no. of employees

100 persons (63)
3 persons (2)

of which men
77% (86%)
100% (100%)

The number of employees has increased steadily during the

year, amounting at year-end to 122 (76) in the parent company and 2 (5) in the subsidiary.
Salary, remuneration and social security expenses
in respect of the Board, CEO and other employees

RECEIVABLES

Receivables have been included at the amount at which they

are expected to be received on the basis of a case-by-case
assessment.
FOREIGN CURRENCY RECEIVABLES AND LIABILITIES

Foreign currency receivables and liabilities have been translated at the exchange rate prevailing on the balance sheet
date.
INVENTORIES

Inventories have been valued at the lower of acquisition

value and market value as at the balance sheet date.
DEPRECIATION PRINCIPLES FOR FIXED ASSETS

Depreciation according to plan is based on original acquisition values and estimated financial life-span. Write-downs are
effected where a decline in value is assessed to be permanent.

2000
1999
Salary
Social Salary and
Social
and security
remune- security
Group
remuneration expenses
ration expenses
Board, CEO
2,180
1,334
2,021
1,033
(of which pension exp.)
617
364
Other employees
51,263
20,539
29,761
11,590
(of which pension exp.)
5,320
2,217
Total
53,443
21,873
31,782
12,623
(of which pension exp.)
5,937
2,581
Parent company
Board, CEO
2,180
(of which pension exp.)
Other employees
46,107
(of which pension exp.)
Total
48,287
(of which pension exp.)

1,334
617
20,380
5,004
21,714
5,621

2,021
27,720
29,741
-

1,033
364
11,434
2,217
12,467
2,581

By market
Parent company
48,287
(of which pension exp.)
Subsidiary abroad
5,156
(of which pension exp.)

21,714
5,621
316
-

29,741
2,041
-

12,434
2,581
156
-

Bengt Olsson has a guaranteed period of employment of

15 months, the last six months of which are conditional in
the event of new employment. The companys pension
commitment towards CEO Bengt Olsson comprises the
ITP plan (supplementary pensions for salaried employees)
plus two basic amounts yearly. An additional amount of
SEK 200,000 was reserved for old age pensions.
Board member Lars Gauffin, one of the companys
founders, received SEK 705,000 (659,000) in salary from
the company. The remuneration payable to the board
amounts to a total of SEK 600,000.

EQUIPMENT, TOOLS AND INSTALLATIONS

The subsidiary does not have any equipment.
Parent company and Group
Accumulated acquisition value
Opening balance
Purchases
Total

DEVELOPMENT EXPENSES

Development expenses primarily comprise expenses related to

product development, computer purchases, patent applications, licenses and salary expenses for personnel involved in
development work.
NOTE 4
DEPRECIATION OF TANGIBLE FIXED ASSETS
Dotterbolaget saknar materiella anlggningstillgngar
31 Dec 2000

31 Dec 1999

747
747

620
620

31 Dec 2000

31 Dec 1999

3,100
911
4,011

2,131
969
3,100

Accumulated depreciation according to plan

Opening balance
Values for the year
Total

NOTE 3

Parent company
Equipment, tools
and installations

NOTE 7

Residual value according to plan

at year-end

-1,254
- 747
-2,000

-634
-620
-1,254

2,011

1,846

NOTE 8
SHARES IN GROUP COMPANIES
Proportion Proportion Number Book
of capital
of votes of shares value
Net Insight Inc.
100%
100%
1,000 0.08
Registered office:
Delaware, USA
Net Insight Consulting AB 100%
100%
5,000 500
Corporate ID number: 556583-7365
Registered office: Stockholm, Sweden

NOTE 5

NOTE 9

INTEREST INCOME AND SIMILAR ITEMS

PREPAID EXPENSES AND ACCRUED INCOME

Prepaid expenses and accrued income include the following
major items:
Group
Parent company
001231 991231 001231 991231
Premises rental for first
quarter 2001(2000)
1,177
861
1,177
861
Prepaid consultancy
expenses
360
360
Prepaid license/service
charges
468
952
468
952
Prepaid insurance expenses 831
394
831
394
Accrued interest income
358
358
Other items
782
804
782
710
Total
3,616
3,371
3,616
3,277

Group
2000
1999
Interest income
8,136
1,898
Exchange rate differences 1,242
166
9,378 2,064

Parent company
2000
1999
8,108
1,879
1,242
166
9,350
2,045

NOTE 6
INTEREST EXPENSE AND SIMILAR ITEMS

Interest expenses

2000
-8

Group
1999
-33

Parent company
2000
1999
-8
-33

29

NOTE 10
SHAREHOLDERS EQUITY
GROUP
Opening balance
Reallocation of net earnings
New issues
Warrants programs
Translation difference for year
Net earnings for year
Closing balance

PARENT COMPANY
Opening balance
Reallocation of net earnings
New share issues
Warrants programs
Net earnings for year
Closing balance

Share
capital
1,402

Restricted
reserves
326,203
-198,053
224,122
30,510
-1,051

Non-restricted
reserves
-82,589
85,615

1,572

381,731

3,026

-208,764
-208,764

Share
capital
1,402

Accumulated
deficit
82,589
82,589

Net
earnings
-115,464
115,464

113
57

Share premium
reserve
334,515
-198,053
229,887
30,510

1,572

396,859

-202,766
-202,766

113
57

Net
earnings
-112,438
112,438

Total shareholders equity

132,578
224,235
30,567
-1,051
-208 764
177,565
Total shareholders equity
137,864
230,000
30,567
-202,766
195,665

Share issue expenses for the year have been charged to the income statement, while those for the group have been charged
directly to restricted reserves.
NOTE 11

30

NOTE 13

SHARE CAPITAL

RENTAL EXPENSES

The share capital is distributed over 39,289,300 shares with

a nominal value of SEK 0.04 per share. An A-series share
entitles the owner to ten (10) votes and a B-series share to
one (1) vote. The structure is as follows:

Future rental expenses amount to SEK 8,039,000 for 2001

2002. Current rental expenses run until 30 September 2002.
NOTE 14
FEES AND REMUNERATION

No. of shares
Unrestricted A-series shares
3,600,000
Unrestricted B-series shares
35,689,300
Subscription options 2000/2007
Subscription options III (9/3/99)
Total
39,289,300

Options

435,000
300,000
735,000

Remuneration of SEK 90,000 has been paid to accountants

hrlings PricewaterhouseCoopers AB for auditing services
and SEK 86,000 for other services.
NOTE 15
CASH FLOW STATEMENT

NOTE 12
ACCRUED EXPENSES
Accrued expenses include the following major items:

001231
Holiday pay liability
2,525
Social security expenses 1,460
Accrued bonuses
3,032
Accrued consultancy
expenses
1,135
Other items
524
Total
8,676

Group
991231
1,630
880
637
1,535
653
5,335

Parent company
001231
991231
2,525
1,630
1,460
880
3,032
637
1,135
271
8,423

The opening and closing balances of liquid funds relate to

cash and bank balances for both years. Of the total liquid
funds in the group for 2000, SEK 3,350,000 are related to
liquid funds in the subsidiary.

1,535
525
5,207

Stockholm, 2 February 2001

Lars Berg
chairman
Bernt Magnusson

Lars Gauffin

Bengt Olsson
chief executive officer
Hkan Kihlberg

Bo Dimert

Lage Jonason

To the Annual General Meeting of

Net Insight AB (publ)
Corporate ID number 56533-4397
We have audited the annual accounts, the consolidated accounts, the accounting records
and the administration of the board of directors and the chief executive officer of Net
Insight AB (publ) for the financial year 2000. These accounts and the administration of
the company are the responsibility of the board of directors and the chief executive officer.

Reportof
the auditors

Our responsibility is to express an opinion of the annual accounts, the consolidated

accounts, the accounting records and the administration on the basis of our audit.
We conducted our audit in accordance with generally accepted auditing standards in
Sweden. These standards require that we plan and perform the audit to obtain reasonable
assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the accounts. An audit also includes an assessment of the accounting
principles used and their application by the board of directors and the chief executive officer, as well as an evaluation of the overall presentation of the information in the annual
accounts and the consolidated accounts. We examined significant decisions, actions taken
and circumstances of the company in order to be able to determine the liability, if any, to
the company of any board member or the chief executive officer and whether they have in
any other way acted in contravention of the Companies Act, the Annual Accounts Act or
the Articles of Association. We believe that our audit provides a reasonable basis for our
opinions set out below.
The annual accounts and the consolidated accounts have been prepared in accordance
with the Annual Accounts Act, and, consequently, give a true and fair view of the financial
position of the company and the group in accordance with generally accepted auditing
standards in Sweden.
We recommend that the income statements and the balance sheets of the parent company and the group be adopted by the AGM, that the deficit incurred by the parent company be dealt with in accordance with the proposal in the administration report, and that
the members of the board and the chief executive officer be discharged from liability for
the financial year.

Stockholm, 5 February 2001

Marcus Johansson
authorized public accountant

Bertil Johanson
authorized public accountant

31

32

Net Insight Management

and Senior Executives
Management group

LARS GAUFFIN - Senior

PER LINDGREN - VP Business

Advisor (founder)
Born in 1943. Lars Gauffin has
professional experience from
Ericsson, Telia and KTH (The
Royal Institute of Technology,
Stockholm), within telecom,
datacom and distributed systems. He headed up the DTM
project at KTH.

Development (founder)
Born in 1967. PhD in
Teleinformatics from KTH (The
Royal Institute of Technology,
Stockholm), 1996. Per Lindgren
was previously Assistant
Professor at KTH, where he
worked on refinement of the
DTM technology.

Shareholding in Net Insight:

1 200 000 A-shares and
1 522 150 B-aktier.

Shareholding in Net Insight:

1 200 000 A-shares, 877 940 Bshares and 10 000 staff options.

BENGT OLSSON - Chief

CARL-JOHAN BLOMBERG

ANDERS PERSSON - VP

MITUL SAWJANI - VP Supply

Executive Officer
Born in 1943. Bengt Olsson was
previously a senior executive
with IBM, Gadelius, Kebo,
Digital and Dow Jones.

- Chief Financial Officer

Born in 1952. Carl-Johan
Blomberg served most recently
as Senior VP and CFO at
Hotellus International AB. He
previously held senior financial
positions at Pharmacia,
Procordia and Alfa Laval.

Product Development
Born in 1957. Anders Persson
has many years of experience
with the Ericsson group, where
his latest position was General
Manager for Network Design at
ERA, Ericsson Services. Prior to
that he was Project Manager at
ERA, Customer Services, and
VP with EUR, Ericsson Fiber
Access.

& Strategic Alliances

Born in 1971. Mitul Sawjani
has worked on issues related to
Purchasing/Logistics at the
Ericsson group since 1997. His
latest position was Purchasing
Manager with Ericsson Inc. in
Lynchburg, USA

Shareholding in Net Insight: 98 330

B-shares and 10 000 staff options.

Shareholding in Net Insight: 3 000 Baktier and 50 000 staff options.

BIRGITTA HEDBLOM - VP
Human Resources
Born in 1950. Birgitta Hedblom
previously held a number of
senior Human Resources positions at Hewlett Packard.
Previously, Birgitta has acted as
a self-employed human
resources development consultant with a number of major corporate clients.
Shareholding in Net Insight: 500
B-shares and 40 000 staff options.

Shareholding in Net Insight:

40 000 staff options.

Shareholding in Net Insight: 4 000

B-shares and 50 000 staff options.

HELN LINDQVIST

MAGNUS STLBRANDT

JOHN KOSTAK - VP Global

- VP Finance
Born in 1958. Heln Lindqvist
served as an auditor with Arthur
Andersson & Co from 1986 to
1994. She became an authorized
public accountant in 1989.
From 1994 to 1998, she was the
financial manager with a
Swedish subsidiary of a multinational group.

- VP Sales
Born in 1961. Magnus
Stlbrandt was formerly CEO
and Nordic VP of Xylan Nordic
1997-1999, and Manager
Product Marketing at IBM
Nordic 1994-1997.

Marketing
Born in 1961. Most recent post:
VP Sales and Marketing for
Dynarc AB, 1998-2000. Has
previously established and
worked for the companies called
Quallaby and St Clair Systems,
and held several leading positions at Nortel Networks, Net
Manage, Fujikura, and other
companies.

Shareholding in Net Insight: 10 000

staff options and 20 000 subscription options*.

Shareholding in Net Insight: 800 Bshares, 10 000 staff options and

20 000 subscription options*.

CHRISTER BOHM - Chief

Technical Officer (founder)
Born in 1966. PhD in Teleinformatics from KTH (The
Royal Institute of Technology,
Stockholm). Christer Bohm was
previously Assistant Professor at
KTH, where he participated in
the DTM project. He has also
been involved in several other
distributed multimedia and highspeed communication projects.

* Every option entitles the

holder to 5.45 shares

33

Shareholding in Net Insight:

1 200 000 A-shares, 1 151 655 Bshares and 10 000 staff options.

Shareholding in Net Insight: 50 000

staff options.

CAROLEN YTANDER - VP

LARS BORGWING - President

Corporate Communications
Born in 1964. Carolen Ytander
was Information Manager with
Telia InfoMedia TeleVision
1997-1999 and also held a similar post with Sparbanken Sverige
1995-1997.

and COO, Net Insight Inc.

Born in 1953. Lars Borgwing
has over 20 years experience
from leading positions in the
American market. Has established and worked as a CEO
and consultant for several distinguished companies like
Goldman Sachs, GE Capital,
Chase, Svenska Handelsbanken
and Merita NordBanken.

Shareholding in Net Insight:

40 000 staff options.

Shareholding in Net Insight: 50 000

staff options.

Net Insight Management

and Senior Executives
The Board

34

LARS BERG

- Chairman of the Board

Born in 1947. Independent
investor and consultant.
Member of the boards of
Telefonica Mobiles, Eniro,
Ratos, C.Technologies,
Ledstiernan and Genesis-IT and
several other companies in the
telecom industry.

BO DIMERT - Board member

Born in 1943. Most recently
CEO of Ericssons activity in the
USA. Chairman of the board of
ipUnplugged, member of the
boards of Sverige-Amerikastiftelsen and Razorfish Inc.,
USA.
Shareholding in Net Insight: 26 000
B-shares

Shareholding in Net Insight: 30 000

B-shares

BERNT MAGNUSSON

LARS GAUFFIN

- Deputy Chairman of the Board

Born in 1941. Chairman of the
boards of Swedish Match AB,
AssiDomn AB and Dyno Nobel
ASA; member of the boards of
AvestaPolarit, Hgans AB,
Emtunga International AB,
Sveriges Industrifrbund, Volvo
Personvagnar, Nordea AB,
ArosMaizels Corporate Finance
and Frvaltningsaktiebolaget
Stattum.

- Board member and founder

Born in 1943. Senior Advisor.
Professional experience from
Ericsson, Telia and KTH, within telecom, datacom and distributed systems. He headed up the
DTM project at KTH.
Shareholding in Net Insight:
1 200 000 A-shares and 1 522 150
B-shares.

35

Shareholding in Net Insight:

374 980 B-shares

HKAN KIHLBERG

BENGT OLSSON - CEO and

- Board member
Born in 1939. CEO Pressens
Bild, Bonnier. Chairman of the
board of Ad Libris AB; member
of the boards of Bonnier
Affrsinformation AB, Pressens
Bild and International
Electronic Publishing Research
Center (IEPRC).

board member
Born in 1943. Previously a
senior executive with IBM,
Gadelius, Kebo, Digital and
Dow Jones.
Shareholding in Net Insight: 98 330
B-shares and 10 000 staff options.

Shareholding in Net Insight: 4 430

B-shares

LAGE JONASON

- Board member
Born in 1951. CEO Nordiska
Holding AB and Nordiska
Fondkommission AB. Member
of the board of City Mail AB.
Shareholding in Net Insight:
300 000 B-shares

CHRISTER BOHM - Deputy

board member, Chief Technical
Officer and founder
Born in 1966. PhD in Teleinformatics from KTH (The
Royal Institute of Technology,
Stockholm). Was previously
Assistant Professor at KTH,
where he participated in the
DTM project. He has also been
involved in several other distributed multimedia and highspeed communication projects.
Shareholding in Net Insight:
1 200 000 A-shares, 1 151 655 Bshares and 10 000 staff options.

36

AGM
The Annual General Meeting will be held on Wednesday
28 March 2001 at 15:00 at Norra Latin in Stockholm,
Sweden. In order to participate in the AGM, shareholders
must have been entered on the stock ledger kept by the
Swedish Central Securities Depository, VPC AB by no
later than on 16 March 2001, and must have notified the
company of their intention to attend no later than 16:00
on 22 March 2001. Notification of intention to attend the
AGM can be made by letter to: Net Insight AB, Box 42093,
SE-126 50 Stockholm, Sweden; by telephone to:
+46 8 685 04 00; by fax to: +46 8 685 04 20; or by
e-mail to: info@netinsight.net.
DIVIDEND
The Board proposes that the AGM resolve that no dividend be paid for the year.
FINANCIAL INFORMATION IN 2001
Annual General Meeting
28 March 2001
Interim report January March
2 May 2001
Interim report January June
20 August 2001
Interim report January September
20 October 2001

Production: Hallvarsson & Halvarsson and Ahonk.

Photo: Stellan Herner. Flowers, graphic design: Leif bjrnsson.

Dictionary

ACCESS NETWORK

That part of the public network closest

to end users.
ADSL Asymmetrical Digital Subscriber Line. Technology for
increasing transmission capacity in copper wires up to 8 Mbps.

Application Specific Integrated Circuit. A customized

integrated circuit.

ASIC

Asynchronous Transfer Mode. Standardized and packetswitched technology for data traffic.

ATM

High-capacity network linking

together geographically remote areas or a number of smaller
networks within an area. Also known as transport network.

BACKBONE NETWORK

Popular expression for transmission capacity in

a network. Measured in bits per second, bps.

BANDWIDTH

BROADBAND NETWORK

Network with extremely high capac-

ity, at least 2 Mbps.

Transmission from a single sender to a large
number of recipients.

BROADCAST

CIRCUIT-SWITCHING Way of ensuring that data is transmitted

in an even stream by making a connection all the way from
sender to recipient. When the transmission has been completed the connection is broken.
CITY NETWORK A high-capacity network linking together an
urban area. Often termed as a Metro Area Network (MAN).
DTM Dynamic synchronous Transfer Mode. A dynamic circuit-switched technology developed by Net Insight, in which
it is fully possible to transmit data, telephony and moving
pictures across the one and the same network.
DWDM Dense Wavelength Division Multiplexing. Technology
for improving transmission speeds in fiber networks by concurrently transmitting several light waves of different wavelengths.

The most common communication technology

for local networks. Can cope with transmission speeds of
10 Mbps.

ETHERNET

European Telecommunications Standards Institute.

European standardization commission.

ETSI

GIGABIT ETHERNET Development of the Ethernet primarily

used in major LAN backbone networks. Can cope with
transmission speeds of 1000 Mbps.
IP Internet Protocol. Protocol used for data transmission
within the Internet. All traffic in the Internet is transmitted
in IP packets.

ISP

Internet Service Provider. Supplier of Internet services.

LAN Local Area Network. Smaller local networks within a

department, building or block.

Multi Service Provisioning Platform. A platform that

can cope with several different services in the form of data,
telephony and moving pictures.

MSPP

Transmission from a single sender to a number

of pre-defined recipients.

MULTICAST

Point in a network, where a sender/recipient or one or

more other networks can be connected.

NODE

OEM Original Equipment Manufacturer. Manufacturer of

equipment under its own name. The equipment may contain components from other manufacturers.
PACKET-SWITCHING Data is split into a number of smaller
packets that are sent through the network independently of
each other. Once all the packets have reached the recipient,
the original data unit is reconstituted.

An agreed set of rules as to how the various items

of network equipment should communicate with each other.

PROTOCOL

REAL TIME

Immediate transmission of material without

any delay.
ROUTER Used

to route information between various networks.

SDH/SONET Circuit-switched technology for communication within backbone networks. SDH is the European standard and SONET the US standard.
STREAMING STREAMED MEDIA Playback

of sound and/or

moving pictures as it is downloaded.

Uncompressed raw material in the form of
sound and pictures from studio cameras and suchlike. Needs
a transmission capacity of 270 Mbps.

STUDIO QUALITY

Used to direct information between different network users.

SWITCH

TCP Transmission Control Protocol. Protocol that, in conjunction with IP, forms the basis for communication via the
Internet.
TDM Time Division Multiplexing. Technology for creating
more channels in fiber cables, thereby increasing their capacity.
WAN Wide Area Network. Public network spanning large
areas, such as a city or a country, often with different types
of network connected to it.

NET INSIGHT AB
Box 42093, SE-126 14 Stockholm, Sweden Visiting address: Vstberga All 9
P: +46-8-685 04 00, F: +46-8-685 04 20 info@netinsight.net
NET INSIGHT, INC.
1050 Winter Street, Suite 1000, Waltham, MA 02451, USA
P: +1-781-890-0600, F: +1-781-890-0601 USinfo@netinsight.net

www.netinsight.net