ZHONE TECHNOLOGIES MAKES ITS DEBUT, ACQUIRES PREMISYS
Zhone Technologies, a start-up led by the former management team of Ascend Communications, will acquire Premisys Communications as its entry into the market for next generation networking equipment.  Premisys provides an Integrated Multiple Access Communications Server (IMACS) that can be used to provide Plain Old Telephone Services (POTS), analog private lines, and Digital Data Services (DDS), or for provisioning Frame Relay, ATM, and ISDN. A patented bus structure simultaneously supports circuit, packet, and cell switching in a single platform.  Premisys also recently introduced a SlimLine Integrated Access solution that aggregates up to 24 voice lines and one data circuit on a single T1 line.  Nortel Networks had earlier agreed to include the SlimLine products in its portfolio of access solutions.  Premisys was founded in 1990 and is based in Fremont, California.  The acquisition values Premisys for $10 per share in cash. 

Zhone Technologies was founded in September 1999 by Mory Ejabat, the former President and CEO of Ascend Communications; Jeanette Symons, the former CTO of Ascend; and Robert Dahl, the former CFO of Ascend.  The company is also backed by unnamed investment partners.  http://www.zhone.com
http://www.premisys.com/ZHONE.htm
Zhone, October 21, 1999

CISCO CLAIMS MINIMAL PACKET LOSS FOR INTERNET2 AND IP MULTICAST OF NETAID
Cisco Systems announced that the IP Multicast solution in its IOS software enables simultaneous transmission of content, including live video and audio, over the Internet to PCs at multiple sites-with no impact on bandwidth or quality degradation.  During the NetAid benefit concert held earlier this month, universities connected to Internet2 facilities experienced zero to less than 2% packet loss during the 12-hour broadcast.  http://www.cisco.com/warp/public/146/october99/12.html
Cisco Systems, October 20, 1999

QWEST PLANS ITS LOCAL BROADBAND ACCESS IN CALIFORNIA
Qwest Communications has been approved to operate as a CLEC in California.  The company plans to introduce direct local access to its nationwide network from Los Angeles, Sacramento, San Diego and San Jose/San Francisco beginning early next year.  Qwest will employ three access technologies depending on the customer type:  direct fiber; fixed 100 Mbps wireless (in conjunction with its strategic partner, Advanced Radio Telecom); and DSL.  Direct services allow customers to avoid local access fees imposed by the incumbent local exchange carrier or another CLEC.  http://www.qwest.com
Qwest, October 21, 1999

NETWORK PLUS EXPANDS ITS FIBER REACH IN SOUTHEASTERN US
Network Plus acquired 9,000 fiber miles in the southeastern US from Florida East Coast Telecom (FECT) for $19 million.  Network Plus, which is based in Quincy, Mass., plans to provide integrated services in major markets in the Northeastern and Southeastern US. http://www.np1.com/
Network Plus, October 21, 1999

Earlier this year, Network Plus selected AccessLan Communications to supply its Voice over DSL solution for a projected deployment in 300 central offices and 10,000+ active lines.  The network would use AccessLan's PacketLoop PL-2000 DSLAMs for SDSL and IDSL services, and PL-50 and PL-200 CPE.  Network Plus will use JetStream' GR-3-3 Gateways and Integrated Access Devices.  Network Plus has also awarded a three-year, $30 million contract to Lucent Technologies for its WaveStar SONET/DWDM optical networking system and 5ESS AnyMedia switching platform.

AMERICA ONLINE SELECTS LEVEL 3 FOR MANAGED MODEM SERVICES
Level 3 Communications will provide managed modem services to America Online's AOLnet and CompuServe dial-up networks.  Level 3's Managed Modem service makes use of a "Softswitch" control system that enables Level 3 to interconnect as a co-carrier without the need for a circuit switch.  Level 3 Communications acquired XCOM Technologies, the developer of its SS7 bypass software, in April 1998.  http://www.level3.com/Content/1,1233,us|news|newsreleases|102199a,00.html
Level 3, October 21, 1999

In January, America Online selected Qwest Communications to be its national IP backbone provider.  Under the $13 million, multi-year contract, Qwest provides AOL with multiple links at OC-3 to OC-48 between key cities across the US.

UPC'S CHELLO BROADBAND REPORTS 80K CABLE MODEM SUBSCRIBERS
As of September 30, United Pan-Europe Communications' chello broadband subsidiary had 80,000 cable modem subscribers in France, Belgium, Austria, Norway and The Netherlands.  The growth rate over the past 3 months was pegged at 52%. UPC' systems is now approximately 9.0 million homes.  http://www.chello.com/  http://www.upc.nl
UPC, October 21, 1999

GTE REPORTS 35K ADSL LINES IN SERVICE
As of September 30, GTE had 35,000 ADSL lines in service.  By the end of the year, GTE plans to have ADSL available from 550 central offices.  http://www.gte.com/AboutGTE/NewsCenter/News/Releases/3Q99.html
GTE, October 21, 1999

It was the first time for GTE to include ADSL subscription rates in its quarterly report. Bell Atlantic, which is planning to merge with GTE, did not disclose its ADSL subscription numbers in its financial report this week.

ERICSSON BUILDS 3G WIRELESS LAB IN MONTREAL, OFFERS WIRELESS TOOLS
Ericsson will invest $196 million over three years to build a 3G Wireless Next Generation Systems Labs in Montreal, Canada.  Separately, Ericsson CyberLab NY launched a developer's program to promote the wireless Internet industry. The company initially is providing Wireless Application Protocol (WAP) tools and support, and will soon expand the program to include Bluetooth, iPulse (a communications portal technology), General Packet Radio Service (GPRS), EPOC (an operating system optimized for Smartphones) and 3G technologies.  http://www.ericsson.com
Ericsson, October 21, 1999