NORTEL NETWORKS ACQUIRES CORETEK FOR TUNABLE LASERS
Nortel Networks will acquire CoreTek, a start-up developing DWDM tunable lasers and optical micro-electromechanical systems (MEMs), for up to US$1.43 billion in stock.  CoreTek's solutions use tiny, movable mirrors to alter the wavelength of light emitted by semiconductor lasers and other optical components. Its DWDM tunable lasers cover the full ITU band, including versions for both C-band and L-band coverage.  The company’s forthcoming tunable transmitter card will be able to replace 32, 80, or more separate transmitter cards seen in existing DWDM platforms, yielding significant savings.  CoreTek is also testing a tunable VCSEL (vertical cavity surface emitting laser) designed for metropolitan area applications.  The VCSEL tunable laser has been tested to operate error free at OC-48 over a 510 km test bed.  CoreTek is based in Wilmington, Mass. and is funded by Adams Capital Management, Hillman Capital, JK&B Capital, and Broadview. http://www.coretekinc.com  http://www.nortelnetworks.com/
Nortel Networks, March 21, 2000

A list of other optical networking related acquisitions

INTEL TO ACQUIRE BASIS COMMUNICATIONS FOR NETWORK PROCESSORS
Intel will acquire BASIS Communications, a spin-off from Cirrus Logic that is developing Service-Specific Network Processors, for approximately $450 million in cash.  Basis offers a DSL Service-Specific Network Processor targeted at DSL customer premise equipment.  The device could be used as an Ethernet-to-DSL bridge.  Basis is developing other service-specific processors.  It also offers a portfolio of WAN and serial communication semiconductor products, as well as PC card and "interface" controller devices.  The company is based in Fremont, California.  http://www.basiscomm.com/
Intel, March 21, 2000

• Intel has made 15 acquisitions in the networking/communications field to date:
  http://www.convergedigest.com/Mergers/mergersIntel.htm
  

AMERICA'S FIBER NETWORK CONNECTS REGIONAL ELECTRIC UTILITIES
Six energy and telecommunications companies will create a wholesale bandwidth carrier with a fiber network of more than 7,000 route miles, or 140,000 fiber miles, connecting major markets in the eastern US.  America's Fiber Network (AFN) brings together the telecom facilities of electric utilities stretching from New York City to Chicago and from Rochester, N.Y., to Tennessee.  http://www.americasfibernetwork.com
America's Fiber Network, March 21, 2000

ROSHNEE SECURES FUNDING FOR OPTICAL TRANSPORT SOLUTIONS
Roshnee, a start-up developing optical transport solutions, secured $11 million in financing from Redwood Ventures, New Enterprise Associates (NEA) and Raza Venture Management.  The Los Altos, California-based company is led by Vinay Kumar, previously VP & GM at PictureTel Corporation.  Other members of the Roshnee management team include Sudhi Balakrishna, CTO & VP Technology (formerly co-founder of Cerent); Joe Skorupa, VP Marketing (formerly VP, Switching and Routing at RHK); Larry Tarof, Director Photonics (formerly with Nortel Networks).  Product plans have not yet been disclosed.  http://www.roshnee.com
Roshnee, March 21, 2000

SMARTPIPES PLANS NEXT GENERATION IP SERVICES
SmartPipes, a start-up backed by Kleiner Perkins Caufield & Byers, Jim Clark (Netscape, SGI, Healtheon, etc) and Thomas Jermoluk (Excite@Home), announced its entrance into the race for next generation IP services.  The company plans to introduce IP-based Virtual Private Networks  (VPNs) by summer.  SmartPipes is based in Redwood City, California.  http://www.smartpipes.com/
SmartPipes, March 21, 2000

ISHONI NETWORKS UNVEILS ITS GATEWAY-ON-A-CHIP
ishoni Networks, a start-up based in Santa Clara, California unveiled its Gateway-On-A-Chip for manufacturers of voice gateways and integrated access devices.  The device combines voice, networking and security processors on one chip. The chip also provides standard interfaces that can directly connect to external chips including xDSL, Cable and Wireless modem chips, Ethernet, USB, SLIC/SLAC, DRAM and Flash Memory.  Ishoni will also provide an open software platform architecture that supports off-the-shelf, real-time operating systems and networking protocol stacks.
Ishoni Networks, March 21, 2000

• Earlier this month, ishoni raised $9 million in a second round of funding from Lucent Venture Partners, Bessemer Venture Partners, Infinity Capital L.L.C./Information Technology Ventures and Invesco. 

PAIRGAIN INTRODUCES ENTERPRISE DSL LAN EXTENSIONS
PairGain Technologies introduced a DSL LAN extension system for enterprise networks for interconnecting LAN segments up to several miles apart.  The discrete multitone (DMT)-based system uses a pair of ADSL modems and does not require DSLAM equipment.  PairGain said its modem pair supports downstream speeds in excess of 7 Mbps and upstream rates up to 928 Kbps.  An attainable reach of up to 27,000 feet is possible, depending on the condition of the copper loop. An Ethernet bridging function simplifies network management by dynamically learning up to 8,192 addresses. PairGain's LAN extension system (Megabit Modems 310F/320F) has a suggested US list price of $1,190.  http://www.pairgain.com/WHATS_NEW/nw000321.html
PairGain, March 21, 2000

MOTOROLA, NOKIA TO PUSH 5 MBPS CDMA INTO OPEN WIRELESS STANDARDS TRACK
Motorola and Nokia agreed to begin the standardization process for 1XTREME technology, which supports integrated voice and data speeds up to 5.2 Mbps on a single 1.25 MHz code division multiple access (CDMA) carrier.  The companies are presenting their work to the Third Generation Partnership Project 2 (3GPP2) meeting this week in Kyoto, Japan  The Nokia and Motorola 1XTREME proposal consolidates the companies' individual efforts, including Motorola's recently announced 1X Plus.  http://www.nokia.com/
Motorola, March 21, 2000

AMERICA ONLINE DEPLOYS FOUNDRY NETWORKS' ROUTERS AT THE EDGE
America Online (AOL) has deployed Foundry Networks' BigIron 8000 Internet routers with OC-12c/STM4 Packet Over SONET/SDH interfaces to support its OSPF and BGP4 networks.  The Foundry routers are deployed at the edge of the AOL network, providing 10/100 Mbps and Gigabit Ethernet aggregation to a Packet Over SONET/SDH backbone.  http://www.foundrynetworks.com/pr3_21_00.html
Foundry Networks, March 21, 2000

BROADBAND WIRELESS INTERNATIONAL TO DEPLOY CISCO'S ORTHOGONAL FDM SOLUTION
BroadBand Wireless International Corp. of Oklahoma City plans to deploy Cisco Systems' Vector Orthogonal Frequency Division Multiplexing (VOFDM) broadband wireless technology and BPXT 8680 IP+ATM multiservice switch.  The VOFDM technology supports wireless access in obstructed line-of-sight conditions.  Financial terms were not disclosed.  http://www.cisco.com
Cisco Systems, March 21, 2000

• Last year, the FCC approved a request by Clarity Wireless (Cisco Systems) for the regular use of Orthogonal Frequency Division Multiplexing Modulation ("OFDM") at stations operating in the Multipoint Distribution Service (MDS) and the Instructional Television Fixed Service (ITFS) bands. Last October, Cisco Systems and ten other technology companies formed a wireless standards coalition to standardize a Media Access Control (MAC) and a VOFDM Physical Layer specification for broadband wireless services.  Cisco Systems acquired Clarity Wireless, a developer of microwave technology for last mile access, for $157 million in stock in September 1998.

VOCALDATA RAISES NEW FUNDING FOR ITS IP LOCAL EXCHANGE PLATFORM
VocalData, a start-up developing an IP local exchange softswitching solution, secured $13.4 million in new financing from Science Applications International Corporation (SAIC), Access Technology Partners, Seed Capital Partners, Capital Southwest Corporation and Hickory Venture Capital Corporation.  VocalData offers a Voice Services Call Agent for Sun Solaris, a Unified Messaging Call Agent (Netscape or Microsoft IMAP server), VOIP gateways and IP-Ethernet phones that allow service providers to offer business telephone services over IP.  The company is based in Richardson, Texas.  http://www.vocaldata.com/
VocalData, March 21, 2000

NEWBRIDGE LANDS $20 MILLION LMDS CONTRACT IN KOREA
Hanaro Telecom awarded a $20 million contract to Newbridge Networks for deployment of its LMDS equipment in Seoul, followed by build-outs in other Korean cities.  Hanaro Telecom already operates multiservice network in several major cities of Korea based on the MainStreetXpress 36170 Multiservices Switch. http://www.newbridge.com
Newbridge Networks, March 21, 2000

MMC NETWORKS UNVEILS ITS 3^RD GENERATION NETWORK PROCESSORS
MMC Networks announced its third-generation network processors, including an OC-48c-capacity network processor and switch fabric.  The programmable Gigabit Network Processor provides wire-speed Layer 2-7 switching/routing for an OC-48c Packet Over SONET (POS) connection or a pair of either OC-12 or Gigabit Ethernet ports.  An embedded policy engine will support subscriber management and other highly differentiated service provider features -- including MPLS, DiffServ and other Quality of Service (QoS) approaches.  The software-configurable Policy Engine maintains wire-rate support for longest prefix match, bit-by-bit wild-card operators, wide keys up to 512 bits, up to 128 different packet classification rules, and multiple results retrieved with a single clock-cycle look-up.  http://www.mmcnet.com/PressRelations/pr_prod_32100.asp
MMC Networks, March 21, 2000