06-October-1999   Volume 6 Issue 192

1. MCI WorldCom + Sprint Merger Highlights  
2. MCI WorldCom and Sprint's DSL + MMDS Activities  
3. FCC Describes Merger as Surrender  
4. Intel Acquires IPivot for $500 Million, 8th Recent Net Acquisition  
5. Intel's Acquisitions and Networking Initiatives  
6. Universal Serial Bus (USB 2.0) to Deliver 360 to 480 Mbps  
7. Microsoft Selects Equant's ATM Network for UK, Africa, Middle East  
8. Nortel Signs OEM Deal for Promatory's ATM-DSL Access System  
9. Citizens Comm. Selects PairGain's Avidia for Long Reach ADSL  
10. N.E.T. Enters Into Strategic Partnership with TOYOCOM of Japan  
11.Former AT&T VP Joins Intel Online Services  
12.Plans Advance for 640 Gbps Australia-Japan Cable  
MCI WORLDCOM – SPRINT MERGER HIGHLIGHTS  
MCI WorldCom and Sprint announced plans for the largest corporate merger to date – a mega-deal valued at $129 billion ($115 billion in equity and $14 billion in debt and preferred stock).  Key drivers for MCI WorldCom's acquisition of Sprint include the operational savings of a combined network (estimated at $1.9 billion in 2001) and MCI WorldCom's entrance into the fast growing mobile telephony business.  Sprint PCS has 4 million mobile customers and an annual growth rate last reported at 177%. The combined company would be named WorldCom.  Its broadband strategy would be to build DSL facilities and fixed wireless access networks using the combined companies’ nationwide MMDS spectrum.  Sprint will transition away from its Global One venture with Deutsche Telekom and France Telecom.  http://www.wcom.com/cgi-bin/pr/display.pl?cr/19991005
MCI WorldCom, October 5, 1999

MCI WORLDCOM AND SPRINT'S DSL + MMDS ACTIVITIES
In July, MCI WorldCom reached more than 1,000 Points of Presence (PoPs) in its DSL network deployment, giving it a presence in 22 metro areas across the US.  At the time, MCI WorldCom said it would bring its count of DSL PoPs to 1,500 by year-end and to 2,000 by the end of next year.  MCI WorldCom has also committed to purchase 100,000 lines of DSL-based services from Rhythms NetConnections to supplement its own network.

In April, MCI WorldCom acquired CAI Wireless Systems for its MMDS licenses in Boston, New York City, Long Island, Philadelphia, Washington DC, Rochester, Albany, Baltimore, Buffalo, Hartford, Norfolk/Virginia Beach, Pittsburgh, Providence and Syracuse.

Earlier this year, Sprint purchased Videotron USA (a subsidiary of Montreal's Le Groupe Videotron), People's Choice Television and American Telecasting Inc. for their MMDS broadband wireless licenses.  The acquisitions were expected to provide Sprint ION with a geographic footprint covering 24.2 million US households.  The acquired licenses covered the following cities: Albuquerque, Chicago, Cincinnati, Columbus, Denver, Detroit, Greenville (SC), Houston, Indianapolis, Las Vegas, Milwaukee, Phoenix, Portland, Salt Lake City, San Francisco, San Jose, Seattle, Spokane, St. Louis, the Tampa Bay area, Toledo and Tucson.

Sprint is also building its own DSL facilities in 35 cities and recently activated its first DSL network in Charlottesville, VA.

FCC DESCRIBES MERGER AS SURRENDER  
FCC Chairman William Kennard described the proposed MCI WorldCom + Sprint merger as a "surrender," saying the parties will have to show how consumers would be better off.  http://www.fcc.gov/Speeches/Kennard/Statements/stwek959.html  
FCC, October 5, 1999  

INTEL ACQUIRES IPIVOT FOR $500 MILLION, ITS 8TH NETWORKING ACQUISITION THIS YEAR
Intel plans to acquire privately held IPivot, a start-up offering network appliances for eCommerce sites, for $500 million in cash.  IPivot offers two product lines:  intelligent traffic management devices that accelerates SSL processing operations on secure Web servers; and Multi-Site Directors, which ensure that web hits are passed to fastest responding web server.

IPivot's Commerce Director 8000 traffic management device regains the speed lost by servers processing secure transactions by delivering up to 150 times faster SSL processing.  By using proprietary technology to perform cryptographic processing and key management transparent to the server, the Commerce Director 8000 can support up to 600 SSL connections per second.  The device also combines Layer 4 through 7 application/content awareness to speed up response times and eliminate error messages for secure transactions.  A smaller version of the product is available.

IPivot's Multi-Site Director 9000 enables geographically redundant sites or virtually redundant sites within the same data center.  All servers connected to the Multi-Site Director 9000 are allowed to respond to a user request. The content from the one that responds fastest is passed through to the user and the others are ignored.

Intel plans to sell the IPivot equipment directly to OEMs and through its Internet Service Provider (ISP) channel program.  IPivot was founded in May 1997, with $4.2 million in first round venture funding from Enterprise Partners and Doll Capital Management.  The company is based near San Diego, California.  
http://www.intel.com/pressroom/archive/releases/Cn100599.htm
 
http://www.ipivot.com/

Intel, October 5, 1999

In March 1999, IPivot announced a global OEM partnership agreement with Nortel Networks.  

INTEL'S RECENT NETWORKING ACQUISITIONS

* IPivot, network appliances for eCommerce sites, October 1999, $500 million in cash

* the Telecom Component Products (TCP) division of Stanford Telecommunications, silicon components for cable modems and head-end equipment, September 1999, undisclosed cash

* Olicom A/S's development group in Denmark, intellectual property and engineering team focused on LAN solutions, September 1999, price not disclosed

* NetBoost, hardware/software accelerator for policy-based networking, September 1999, price not disclosed

* Softcom MicroSystems, network access processor designed for full OC-12 cell rate performance for 64 byte packets, July 1999,   price not disclosed price

* Dialogic Corp., computer telephony software, network interfaces and media processing boards that run on Intel-based servers, June 1999, approximately $780 million. 

* Level One Communications, a developer of LAN/WAN silicon devices, March 1999, about $2.2 billion in stock. 

* Shiva, remote access and VPN products, October 98, $185 million in cash

In September, Intel unveiled a major initiative to increase its presence in the networking silicon business through an Internet Exchange (IX) Architecture that could be applied to a range of core and edge networking devices.  Intel also established a $200 million venture fund for network communications.

Last month, Intel Online Services commenced operations at its first two Internet service centers -- a major production facility in Santa Clara, California and a development facility in Folsom, California.  Intel is also building hosting centers in Virginia, the UK and Japan.

UNIVERSAL SERIAL BUS (USB 2.0) SPECIFICATION TO DELIVER 360 TO 480 MBPS PERFORMANCE
The next generation universal serial bus specification (USB 2.0) is expected to deliver performance 30 to 40 times faster than the existing USB.  The target speed is in the 360 to 480 Mbps.  A USB 2.0 Specification Draft will be released next week by the USB 2.0 Promoter Group, which consists of Compaq, Hewlett Packard, Intel, Lucent, Microsoft, NEC and Philips. http://www.intel.com/pressroom/archive/alert/US093099.htm
http://www.usb.org/
Intel, October 5, 1999  
MICROSOFT SELECTS EQUANT'S ATM NETWORK FOR UK, S. AFRICA, MIDDLE EAST
Equant was awarded a one-year contract to provide ATM and Frame Relay connections between Microsoft's locations in the UK, South Africa and the Middle East.  ATM service will initially be at speeds up to 3 Mbps peak cell rate (PCR) and will be implemented by Q4.  Equant launched its global ATM network in May with service to 42 countries.  http://www.equant.com/home.html
Equant, October 5, 1999  
NORTEL SIGNS OEM AGREEMENT FOR PROMATORY'S MULTISERVICE DSL ACCESS SYSTEM
Nortel Networks signed an OEM agreement covering the resale of Promatory Communications' Intelligent Multiservice Access System (IMAS), which combines multiple DSL transmission types with ATM switching in a single box.  Promatory's IMAS aggregator ATM-standard QoS levels traffic management and policing capabilities, which could be used for delivering voice and video over secure DSL connections.  It supports up to 128 individually QoS-definable virtual circuits per port, enabling a carrier to deliver the appropriate transmission bandwidth for different application types and service levels. ADSL, SDSL, IDSL, and G.Lite line cards are currently offered.  The solution will be marketed at ILECs and CLECs as part of Nortel Networks' access portfolio, which also includes its Universal Edge 9000 Integrated Access Platform, 1 Meg Modem and the Shasta 5000 Broadband Service Node (BSN).  Promatory Communications is a start-up based in Fremont, California.  http://www.promatory.com  http://www.nortelnetworks.com
Nortel Networks, October 5, 1999  
CITIZENS COMMUNICATIONS SELECTS PAIRGAIN'S AVIDIA FOR LONG REACH ADSL
Citizens Communications', a telecommunications provider serving one million rural and suburban customers in 13 states, selected PairGain Technologies' Avidia System for its ADSL deployment.  The Avidia system is a multiservice platform (G.Lite and full-rate ADSL) based on a distributed ATM switching fabric that provides adaptation for IP traffic.  The system supports SDSL, HDSL2, DS1 and IP voice services, in addition to ATM over ADSL and Ethernet frames over SDSL.  PairGain said its system features superior reach, more than three times greater than comparable products, with capacity of 1,296 ports in a seven-foot bay.  Financial terms were not disclosed.  http://www.pairgain.com/WHATS_NEW/nw991005.html
PairGain, October 5, 1999
N.E.T. ENTERS INTO STRATEGIC PARTNERSHIP WITH TOYOCOM
N.E.T. announced a strategic alliance with Toyo Communication Equipment Co., a Japanese supplier of wireline and wireless communications system, focusing on the distribution of N.E.T.'s Promina 800 multiservice platform and Promina 4000 ATM switch. http://internet.net.com/corporate/releases/pr99/pr3399.html
N.E.T., October 5, 1999  

FORMER AT&T VP JOINS INTEL ONLINE SERVICES
Dr. Dalibor F. Vrsalovic was named Intel's chief technology officer and vice president of engineering for all Internet-related activity within Intel's New Business Group, including Intel Online Services.  Most recently, Dr. Vrsalovic was vice president of Internet technology at AT&T. http://www.intel.com/pressroom/archive/releases/Cn100499.htm
Intel, October 5, 1999  

PLANS ADVANCE FOR 640 GBPS AUSTRALIA-JAPAN CABLE
Telstra, Teleglobe (Canada) and Japan Telecom agreed to continue with planning activities for a 640 Gbps undersea cable system between Australia and Japan. Forty additional telecommunications companies are interested in the proposed cable, which could be ready for service in 2001.  A final decision to proceed is expected later this year.
Telstra. October 5, 1999  

  A Daily Journal For Broadband Networking
Copyright 1999 ATM News Inc.
All Rights Reserved. ISSN 1084-2438
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Copyright 1999 ATM News Inc.  All Rights Reserved.  ISSN 1526-1778

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