CISCO TO ACQUIRE ALTIGA AND COMPATIBLE SYSTEMS FOR VPNS
Cisco Systems announced plans to acquire Altiga Networks and Compatible Systems to expand its Virtual Private Network (VPN), remote access and extranet solutions.  The acquisitions were valued at an aggregate of approximately $567 million in stock. 

Altiga Networks develops enterprise remote access VPNs using DSP-based scalable encryption processing modules. The Altiga VPN Concentrator enables up to 5,000 remote users to access corporate networks securely via the Internet, including via DSL and cable modem.  Client software includes the Altiga VPN Client (IPSec), Windows Dial-up Networking (PPTP), and Windows 2000 (L2TP over IPSec).  Altiga Networks is based in Franklin, Mass. and has 76 employees.  http://www.altiga.com

Compatible Systems develops hardware-based VPNs for service provider networks.  The company's IntraPort Carrier supports individual IPSec-based VPN connections over standard dial-up, ISDN, xDSL, and cable modems.  Remote access customers use client software to create a secure, encrypted VPN connection -- via any ISP-- to the network service provider's facility, where the VPN is terminated and the decrypted packets are routed to the private Intranet via a Frame Relay PVC, (MPLS planned).  Each card in the chassis supports up to 5,000 simultaneous VPN connections and uses a central RISC processor for wire-speed throughput, plus a co-processor to support hardware-based DES and 3DES encryption.  Compatible Systems is based in Boulder, Colorado and has 68 employees.  http://www.compatible.com/
http://www.cisco.com/warp/public/146/pressroom/2000/jan00/corp_011900.htm
Cisco Systems, January 19, 2000

NANOVATION AND CRONOS ALLIANCE TO INTEGRATE MEMS TECHNOLOGY INTO OPTICAL COMPONENTS
Nanovation Technologies will integrate micro-electromechanical systems (MEMS) technology from Cronos Integrated Microsystems into its optical product line for high-speed optical networking applications.  Nanovation Technologies is developing a Microcavity Semiconductor Laser and a photonic waveguide technologies for use in photonic switches and multiplexers.  The products will be unveiled during the Optical Fiber Components Conference in March.  Nanovation is headquartered in Miami, Fla., with facilities in Evanston, Ill. and Burlington, Ontario. Cronos Integrated Microsystems is based in RTO, North Carolina.
http://www.nanovation.com/index.html  http://www.memsrus.com
Nanovation, January 19, 2000

CONEXANT ACQUIRES UK WIRELESS GROUP OF OAK TECHNOLOGY
Conexant Systems has acquired the wireless broadband business unit of Oak Technology Inc. for $25 million in stock and cash.  The unit developed a single-chip 2K/8K coded orthogonal frequency-division multiplexing (COFDM) demodulator/decoder.  The Oak Technology wireless group is based in Bristol, UK.  http://www.conexant.com
Conexant, January 19, 2000

Separately, Conexant reported quarterly revenue of $510.0 million, up 73% over the same period last year.  The company noted unit shipments across all three of its product segments: broadband access devices, including SDSL and ADSL products; multi-service access chipsets; and WAN transport, including high-end 2.4 Gbps optical networking transceivers, ATM solutions and T/E framing and line interface units.

Earlier this month, Conexant acquired Microcosm Communications, a developer of optical networking components based on complimentary-metal-oxide-semiconductor (CMOS) process technology, for up to $180 million in stock.  In December, Conexant Systems announced plans to acquire Maker Communications, a developer of switching systems and network processors, for approximately $990 million in stock

An updated listing of Mergers/Acquisitions in the networking field is available online:   http://www.convergedigest.com/mergers.htm

DIGITAL ISLAND ACQUIRES LIVEONLINE FOR $70 MILLION
Digital Island has acquired Live On Line, Inc., a provider of live and on-demand streaming media services, for $70 million in cash and stock.  Live On Line is based in NYC and has numerous corporate clients for its streaming media service.  Digital Island said its expanded network is now capable of handling more than 250,000 concurrent media streams and is expected to grow to 700,000 concurrent streams by the end of the calendar year.  The new service can also support 840 unique satellite downloads per day and has an aggregate bandwidth of more than 7 Gbps. 
Digital Island, January 19, 2000

Last October, Digital Island acquired Sandpiper Networks, another content caching and delivery network, in a deal that was valued at $625 million at the time.

LUCENT EXTENDS JDS UNIPHASE CONTRACT FOR OPTICAL AMPLIFIERS
Lucent Technologies extended JDS Uniphase's contract to supply optical amplifier modules for Lucent's WaveStar OLS 400G optical networking system through December 2001.   http://www.jdsunph.com
JDS Uniphase, January 19, 2000

AOL ADDS 1.8 MILLION ACCOUNTS IN Q4, DAILY AVERAGE TIME REACHES 57 MIN
America Online (AOL) added a record 1.8 million new members worldwide in Q4, putting it at with 20.5 million subscribers.  AOL Europe reached 3.1 million members. Its CompuServe unit added 440,000 members, putting it at 2.5 million subscribers.  The company said its members averaged 57 minutes daily online, up 19% or 9 minutes over the same period last year.
AOL, January 19, 2000

IBASIS OFFERS SERVICE LEVEL AGREEMENT (SLA) FOR VOIP
iBasis announced a Service Level Agreement (SLA) for its Internet telephony service, claiming its call completion rates will be equivalent to or better than those provided by alternative networks, including the Public Switched Telephone Network (PSTN).  The iBasis Service Level Agreement for international termination services relies on iBasis' proprietary Assured Quality Routing (AQR).  AQR proactively monitors the network for performance factors including echo, post-dial delay, and voice quality.
http://www.ibasis.net/
iBasis, January 19, 2000

iBasis exceeded 150 million minutes of IP voice/fax minutes of traffic across its Internet telephony network in 1999.  The company estimates that since June it has carried as much as 10% of all phone traffic from the US to China.  iBasis has a strategic partnership with China Unicom, China’s second largest carrier.  China Unicom currently terminates the iBasis IP telephony traffic in 12 cities. 

LUCENT ANNOUNCES $55 MILLION VODSL CONTRACT WITH AMC COM.
AMC Communications (AMC), a CLEC based in New Orleans, will deploy Lucent Technologies' PathStar Access Server and Stinger DSL access concentrator to deliver voice and data services over DSL.  AMC plans to introduce the services in all 37 local calling regions in the states of Louisiana, Alabama, Texas, Florida and Mississippi by the end of the year 2000.  The contract was valued at $55 million.  http://www.lucent.com/press/0100/000119.nsb.html
http://www.amccom.com.
Lucent Technologies, January 19, 2000

LUCENT ADDS ATM UPLINK MODULES TO CAJUN P550 AND P880 SWITCHES
Lucent Technologies added new two-port, OC-12 Cajun ATM uplinks for its Cajun P550 and P880 switches.  The modules offer full line rate, dual OC-12 performance and support load-sharing and fail-over modes.  The modules can also map Ethernet 802.1p priority to ATM service categories.  Prices start at $17,950.  Lucent plans four-port, OC-3 ATM uplink modules for release this summer.  http://www.lucent.com/press/0100/000119.nsc.html
Lucent Technologies, January 19, 2000

VERILINK TO OFFER IAD BASED ON HDSL2
Verilink announced plans to launch integrated access devices (IADs) for voice and data in services ranging from 64K DDS to HDSL2.  The products will be built around a PowerPC processor and work with non-proprietary network management solutions via SNMP.  An embedded Web server supplies a simple-to-use interface for configuration and statistics collection, with a service table for mapping services to ports, an endpoint table for configuring and monitoring service endpoints, and a user table for traffic monitoring and control.  http://www.verilink.com
Verilink, January 19, 2000