CISCO TO ACQUIRE PIRELLI OPTICAL SYSTEMS FOR $2.15 BILLION
Cisco Systems will acquire Pirelli Optical Systems for up to $2.15 billion in stock, about 20% of which is contingent on revenue and other performance targets.  Pirelli Optical Systems offers a leading DWDM optical transport system, which has been deployed by Frontier/Global Crossing, Telecom Brazil, France Telecom and Deutsche Telecom, among others.  The deal represents Cisco's first multi-billion dollar acquisition in Europe.  Pirelli Optical Systems has 701 employees located primarily in Milan, Italy; Tregastal, France; Wuppertal, Germany and Lexington, South Carolina.  Cisco also announced a strategic alliance with Pirelli S.p.A. under which it intends to invest $100 million in Pirelli's optical components and submarine optical transmission system businesses.  The investment represents a 10% stake in Pirelli S.p.A’s newly formed optical components division and submarine optical transmission systems division.
http://www.cisco.com/warp/public/146/december99/cn_122099.html
Cisco Systems, December 20, 1999

NOTES ON PIRELLI'S DWDM
Pirelli's highest capacity WaveMux "Hyper-Dense" WDM system is designed to carry up to 128 channels at OC-192 over a single fiber.  The initial WaveMux platform operates in the 1550 nm transmission window for carrying up to 32 channels at 2.5 Gbps (SONET OC-48/SDH STM-16) or 16 channels at 10 Gbps (SONET OC-192/SDH STM-64) (mixed configurations allowed).  The system then scales to 128 channels with denser wavelength spacing and other bands.  The WaveMux 6400 system also features a unique, optional 10 Gbps soliton technology, offering an increased performance system with greater resistance to polarization mode dispersion and chromatic dispersion.  http://www.pirelli.com/cables/telecom.htm

In October, Pirelli announced a dispersion compensating grating technology that enables its WaveMux 6400 DWDM system to achieve 10 Gbps transmission over two 179 km spans of SMF-28 single-mode fiber without SONET regeneration.  The successful use of dispersion compensating gratings is significant because carriers would not need to deploy as much signal regeneration equipment in their networks.  

Pirelli Cables and Systems, in conjunction with AT&T Labs, has previously announced a 40 Gbps channel rate, four-channel WDM transmission – equivalent to 160 Gbps – over 75 km of single mode fiber 

In June 1998, CIENA and Pirelli S.p.A settled all outstanding litigation regarding mutual patent infringement claims for wave division multiplexing (WDM) technology.  CIENA agreed to pay Pirelli US$30 million and undisclosed running royalties.  The companies further agreed to a worldwide, non-exclusive cross-license to each party's patent portfolios and a five-year moratorium on future litigation.  

CISCO'S OPTICAL-RELATED ACQUISITIONS

A full list of Cisco Systems' acquisitions is online.
http://www.convergedigest.com/Mergers/mergersCisco.htm

A Webcast of the Cisco-Pirelli Investor conference call is online.
http://investor.cisco.com/media_files/nsd/csco/csco_audio_991220.htm

BROADWING COMMUNICATIONS TESTS CORVIS ALL OPTICAL TRANSPORT
BroadWing Communications will test Corvis Corporation's all optical transport platform in its coast-to-coast fiber network.  BroadWing is the new name for the merged Cincinnati Bell and IXC Communications.  The Corvis platform scales in capacity to transport up to 160 OC-48/OC-48 (c) or 40 OC-192/OC-192(c) optical channels without electrical regeneration for up to 3,200 km.  The technology significantly reduces the number of electrical regenerator sites in a long-distance network. In addition, the Corvis Optical Router transparently provisions and reconfigures both OC-192/OC-192(c) and OC-48/OC-48 (c) service streams, up to a capacity of 2.4 terabits at a service provider switch site.   http://www.corvis.com/
Corvis, December 20, 1999

CONEXANT TO ACQUIRE MAKER COMMUNICATIONS FOR $990 MILLION
Conexant Systems will acquire Maker Communications, a developer of switching systems and network processors, for approximately $990 million in stock (Monday's prices).  Maker's MXT3010 Cell Processor and related software provides standard cell processing functionality for 622 Mbps and 155 Mbps WAN interfaces.  Its MXT4000 Traffic Stream Processor family is used in Packet-over-SONET and ATM core networking equipment. Maker also offers a new Edge Stream Processor for multi-service access equipment.  Bill Giudice and Paul Bergantino, both formerly of LSI Logic, founded maker Communications in 1994.  Maker is based in Framingham, Mass.  Conexant's Network Access Division already provides a variety of physical-layer communications devices, including ATM, T1/E1 and T3/E3 carrier, optical networking (SONET/SDH), DSL, and multi-service voice and data access concentration chips.   http://www.conexant.com/pressroom/releases/1999/12201999-1.asp
Conexant, December 20, 1999

ALTITUN SECURES $10 MILLION VENTURE FINANCING FOR TUNABLE WAVELENGTH LASERS
Altitun AB, a start-up based in Stockholm, received $10 million in venture financing from Kennet Capital, Vision Capital, Telia Business Innovation and Frank Bonsal (founder of New Enterprise Associates).  Altitun products are based on a single chip laser capable of operating across the entire EDFA (erbium doped fiber amplifier) window. In November, Infineon Technologies (formerly Siemens'Semiconductor Group) selected Altitun to supply its laser devices.  http://www.altitun.com  
Altitun, December 20, 1999

VIVACE NETWORKS RAISES $25 MILLION FOR MPLS SOLUTIONS
Vivace Networks, a start-up developing MPLS solutions, secured $25 million in a second round of venture financing led Redpoint Ventures and Sutter Hill Ventures.  Vivace said its core competencies will be in ASIC technology, IP routing software and advanced protocol development based on MPLS traffic engineering and multi-label tagging algorithms.  Specific products have not been disclosed.  Vivace is led by Ken Koenig (CEO) and Mitri Halabi  (VP Engineering), both formerly of OnStream Networks, a developer of ATM WAN access products that was acquired by 3Com.  Vivace is based in San Jose, California.  Redpoint Ventures was formed in August by combining the venture capital firms of Brentwood Venture Capital and Institutional Venture Partners (IVP).  http://www.vivacenetworks.com/
Vivace Networks, December 20, 1999

CISCO ANNOUNCES MGX 8240 PRIVATE LINE GATEWAY
Cisco Systems announced the MGX 8240 Private Line Gateway, an IP+ATM platform designed for offloading carriers' private line TDM services onto an integrated multiservice ATM network.  The ATM edge product replaces traditional DCS equipment.  The system offers a density of 1260 channelized T1s per chassis, enabling service providers to configure up to 45 channelized T3 access interfaces and 15 ATM OC-3c trunk interfaces.  The system also offers software-based cross-connect capability for fast, private line provisioning times.  Williams Communications will use the system for its enhanced DS-1 private line service.  http://www.cisco.com/warp/public/146/december99/sp_122099.html
Cisco Systems, December 20, 1999

3COM ACQUIRES INTERACTIVE WEB CONCEPTS, AN EBUSINESS CONSULTING FIRM
3Com will acquire Interactive Web Concepts, a privately-held network consulting firm, for an undisclosed sum.  3Com said the acquisition would strengthen its Consulting Services division by expanding its capabilities to provide turnkey e-business solutions.  The company has 40 employees and is based in Mountain View, California.  http://www.3com.com/news/releases/pr99/dec2099a.html
3Com, December 20, 1999

AGILENT OFFERS OC-48C/STM-16C TESTING SOLUTION FOR GIGABIT/TERABIT ROUTERS
Agilent Technologies introduced a dual-port RouterTester P48/2 Test Module offering an OC-48c/STM-16c test interface for gigabit/terabit routers.  The module incorporates multiple Packet over SONET/SDH (POS) interfaces and integrated support for BGP-4.  It includes two independent test ports, each capable of simultaneously transmitting and receiving up to 6.1 million IP packets per second. A complete RouterTester system can support 32 synchronized test modules with 64 OC-48c/STM-16c POS test ports.  The unit is priced at $49,875 per port and will be available in Q1 2000.  http://www.agilent.com/comms/RouterTester
Agilent Technologies, December 20, 1999

ETSI ACCEPTS 3GPP RELEASE 99 SPECS AS FORMAL STANDARD
The European Telecommunications Standards Institute (ETSI) will transpose newly ratified 3GPP Release 99 specifications into a formal standard.  The 3GPP specifications include an innovative radio interface technology known as UTRA (Universal Terrestrial Radio Access). The 3GPP meetings were held last week in the Acropolis Congress Centre, Nice (France).  http://www.etsi.org/
ETSI, December 20, 1999

3GPP is based on evolved GSM core networks and the radio access technologies that the Organizational Partners support (i.e. UTRA both FDD and TDD modes).
http://www.3gpp.org/

INTEL CREATES NEW WIRELESS GROUP
Intel formed a new Wireless Group to pursue opportunities in wireless and cellular communications and networking communications silicon. http://www.intel.com/pressroom/archive/releases/cn122099.htm
Intel, December 20, 1999

IBEAM DEPLOYS ALTEON WEBSWITCHES FOR MULTIMEDIA DISTRIBUTION NETWORK
iBEAM Broadcasting selected Alteon WebSystems switching products for use in its new Multimedia Distribution Network, which aims to deliver "near DVD-quality" audio and video content over the Internet.  The Alteon Web switches will provide Gigabit switching, local and global server load balancing, dynamic application redirection and high-availability services throughout its geographically distributed network.  iBEAM said it is currently capable of delivering more than 300,000 simultaneous unique streams of multimedia traffic across its infrastructure.  Financial terms were not disclosed. http://www.alteonwebsystems.com/press/121799.shtml
http://www.ibeam.com/
Alteon WebSystems, December 20, 1999