1. IBM and Qwest Team on Hosting Solutions
2. Cisco Delivers Enterprise IP Telephony Products
3.  Lucent Introduces its New Service Creation Software
4. Lucent Announces Softswitch-based Application Server
5. Santera Secures $62 Million in Funding; Appoints Lucent Exec as New CEO
6. Vitesse Acquires Orologic, Extending its Reach in OC48/OC192 IP/ATM Switches
7. Eleven (11) Network Silicon Acquisitions This Year
8. HyperChip Licenses Nortel's Open IP for its Petabit Routing Chips
9. Broadwing Selects Corvis for Long Haul Optics
10. Algety Telecom Secures $31 Million for its Long Haul Optical Transport
11. Williams Doubles its Fiber Count on its Longest Route
12. Bell Canada Launches $1.5 Billion Network Upgrade
13. Storm Telecommunications Selects iBasis For Internet Telephony
14. Brazil's Nationwide Satellite Network to offer voice and IP services over ATM
15. Structus Builds ASP Network with Marconi's ATM Switches
IBM AND QWEST TEAM ON HOSTING SOLUTIONS
IBM Global Services will build and provide operational support for 28 new Qwest Communications CyberCenters over the next three years.  IBM will also purchase hosting space to support its customers' e-commerce initiatives and will become the anchor tenant in the CyberCenters it builds.  The companies valued the deal at $5 billion.   IBM said it currently manages more than 40,000 servers in 133 data centers worldwide.  http://www.qwest.com/about/media/story.asp?id=257
Qwest, March 27, 2000

CISCO DELIVERS ENTERPRISE IP TELEPHONY PRODUCTS
Cisco Systems announced ten new enterprise IP telephony products, including IP Call Processing software and servers, second-generation IP Phones, integrated packet telephony features for its Catalyst 6000 family of switches and additional gateway platforms.  The Cisco enterprise IP telephony architecture distributes call processing functionality throughout a network using CallManager software running on Media Convergence Servers.  Cisco CallManager 3.0 uses Microsoft Windows 2000 and offers the ability to group multiple CallManager servers in a single cluster and manage them as a single entity.  The system scales to support 10,000 phones in a single cluster of 5 Media Convergence Servers.  Cisco also announced a 24-port analog (for traditional phone and fax applications) gateway, an eight-port T1 gateway and an eight-port E1 gateway—all of which slot into any of the Catalyst 6000 family of switches.  http://www.cisco.com/warp/public/146/pressroom/2000/mar00/ent_032700.htm
Cisco Systems, March 27, 2000

LUCENT INTRODUCES ITS NEW SERVICE CREATION SOFTWARE
Lucent Technologies introduced its next-generation service creation environment for developing, deploying and managing enhanced services for hybrid voice/data networks.  The Lucent Enhanced Services Authoring Environment (eSAE) for PacketIN employs open application programming interfaces (APIs) such as Java, C++, Wireless Markup Language (WML), VoiceXML and Session Initiation Protocol (SIP).  Lucent will provide a selection of reusable Java beans that accommodate common network protocols and standards, including TCP/IP, SIP, HTTP, JDBC, H.323, JAIN and Parlay.  Market trials are expected by July.  http://www.lucent.com/press/0300/000327.nsa.html
Lucent Technologies, March 27, 2000

LUCENT ANNOUNCES SOFTSWITCH-BASED APPLICATION SERVER
Lucent introduced a softswitch-based application server for supporting enhanced voice and data services across both packet and circuit networks.  Lucent’s first applications for the softswitch server include Calling Card Services for IP and packet-based networks and a Network Contact Center, which enables network-based routing of multi-media contacts.  The suite employs Lucent's elemedia Media Server to enable features such as text-to-speech translation, announcement playback, recording, multi-party conferencing and touch-tone signal recognition.  http://www.lucent.com/press/0300/000327.nsd.html
Lucent Technologies, March 27, 2000

SANTERA SECURES $62 MILLION IN FUNDING; APPOINTS LUCENT EXEC AS NEW CEO
Santera Systems, a start-up developing a hyper-dense, data-centric switch, secured $62.3 million in second-round funding.  Investors include Austin Ventures, Institutional Venture Partners (IVP), Sequoia Capital, Meritech Capital and Trinity Ventures.  The Plano, Texas-based company also named David Heard as its new CEO.  Heard formerly served as vice president of the access systems division at Lucent Technologies.  http://www.santera.com
Santera Systems, March 27, 2000

  • Santera's forthcoming SuperClass platform will combine enhanced Class 5 and Class 4 services with support for voice over packet (VoDSL, VoIP, VMOA, etc).  The platform will offer support for TDM, IP, ATM and Frame Relay, while integrating the functionality of media gateways, media gateway controllers, signaling gateways and DSL voice gateways.  Santera Systems was co-founded by Wu-fu Chen (Cascade Communications, Shasta Networks, Ardent, ANDA Networks, etc) and San-qi Li, who is known for his work on ATM Traffic Management and Network Control.

VITESSE ACQUIRES OROLOGIC, EXTENDING ITS REACH IN OC48/OC192 IP/ATM SWITCHES
Vitesse Semiconductor will acquire Orologic, a fabless semiconductor company developing packet processing devices for OC-48 and OC-192, for $450 million in stock.  Orologic's product line includes:

  • PaceMaker 2.4, which provides packet and cell classification, policing, wire speed AAL5 SAR, ATM/Frame Relay network interworking, a shaper, and an optimum scheduler for traffic congestion management
  • Inspector 2.4, which provides decode, search and encapsulation functions for multi-protocol OC-48 rate packet & cell traffic. Decode/Search/Encapsulation are performed on layers 2,3,4 and above of packet data.
  • * Monitor 4.8, which provides ATM layer functions

Vitesse said the acquisition would extend its OC-48 product portfolio, adding Traffic Management features for Layer 2 through 7 processing of multi-service ATM and IP switches.  Vitesse is also preparing to launch an OC-192 solution, which will include its TeraStream switch fabric, TeraPOWER network processor, Orologic's Traffic Management processor and its 10G Serdes and framers.  Orologic is based in Research Triangle Park, North Carolina.  Vitesse is based in Camarillo, California.  http://www.vitesse.com/news/032700.htm
Vitesse, March 27, 2000

 

Price reflects valuation at the time the deal was announced.

Buyer Target Product Date Valuation
Vitesse Orologic data packet processing at OC-48 and OC-192 Mar 00  $450 million in stock
Intel Basis Communications network processors including narrowband controllers and CardBus controllers Mar 00  $495 million in cash
Intel GIGA A/S OC-48 and OC-192 silicon solutions Mar 00  $1.25 billion in cash
PMC-Sierra AANetcom a CMOS octal backplane transceiver Mar 00  $964.8 million
PMC-Sierra Extreme Packet Devices IP and ATM traffic management chips for OC-48 and OC-192 Mar 00  $415 million in stock
Motorola C-Port Corp high-end programmable network processors Feb 00 $430 million in stock
Lucent Technologies Agere OC-48c programmable Routing Switch Processor Jan 00 $415 million in stock
PMC-Sierra Toucan Technology IC and DSP design group Jan 00 $26 million in stock
Conexant Systems wireless unit of 
Oak Technology
a single-chip 2K/8K coded orthogonal frequency-division multiplexing (COFDM) demodulator/decoder Jan 00 $25 million
Intel Ambient Technology DSL silicon Jan 00 $150 million in cash
Conexant Systems Microcosm Communications optical components based on CMOS Jan 00 $180 million in stock

HYPERCHIP LICENSES NORTEL'S OPEN IP FOR ITS PETABIT ROUTING CHIPS 
Hyperchip, a start-up based in Montreal, Canada licensed Nortel Networks' Open IP Environment software for use with its forthcoming petabit routing architecture.  Hyperchip is developing massively parallel semiconductor technology for use in routing systems that scale to 65,536 high-speed ports.  Nortel Networks' Open IP Environment provides support for key routing protocols such as OSPF, SNMP, RIP, and BGP4. Hyperchip's investors include Siemens Mustang Ventures, Argo Global Capital (backed by several leading telco carriers), Vertex, Vontobel, Advent and TechnoCap.  http://www.hyperchip.com/pres_rel/Nortel%20Mar%2027.htm
HyperChip, March 27, 2000

  • IBM will manufacture Hyperchip's Matrix ASIC with its leading-edge .18-micron copper process technology beginning this summer.

BROADWING SELECTS CORVIS FOR LONG HAUL OPTICS
Broadwing Communications selected Corvis' optical routing and transmission system for deployment in its 16,888 route mile US network.  Financial terms were not disclosed.
http://www.broadwing.com/library/templates/brCareers_Facts.asp?watid=190&branch=Facts
Broadwing Communications, March 27, 2000

  • Broadwing was formed in November 1999 through the merger of Cincinnati Bell and IXC Communications, which build a coast-to-coast US network.  In January, Broadwing arranged for $2.1 billion in corporate financing for the expansion of its local and national networks.
  •  The Corvis platform is being designed for fast service provisioning, optical layer protection and the ability to scale seamlessly to 2.4 Tbps without in-field upgrades.  The system will support OC-48 and OC-192(c) IP services, as well as SONET devices and ATM.  It allows the transmission of optical signals up to 3,200 km without electrical regeneration.  Corvis is led by Dr. David Huber, who previously founded Ciena and developed its 16-channel DWDM platform.  http://www.corvis.com/

ALGETY TELECOM SECURES $31 MILLION FOR ITS LONG HAUL OPTICAL TRANSPORT
Algety Telecom, a start-up developing optical transmission systems based on soliton technology, secured US$31 million in a second round of venture financing.  Investors include Goldman Sachs, Dassault Developpement, Banexi Venture Partners, Crescendo Ventures, Innovacom, and Newbury Ventures.  Algety's WDM systems will use solitons, instead of commonly used photons, for efficient and ultra-high speed data transmission over long-haul optical networks.  Algety said the advantages of solitons include both an increase of data capacity and an increase in transmission distance between regeneration sites.  The company was founded in 1999 by veterans of CNET (France Telecom) and is based in Lannion, France.  http://www.algety.com
Algety Telecom, March 27, 2000

WILLIAMS DOUBLES ITS FIBER COUNT ON ITS LONGEST ROUTE
Williams Communications announced plans to more than double its network fiber count through deployment of new high-density fiber cables on its longest network segment, an 1,800-mile route that runs alongside one of its interstate natural gas pipelines from Houston to Atlanta to Washington, D.C.  http://www.williams.com/news/newsreleases/rel494.html
Williams Communications, March 27, 2000

BELL CANADA LAUNCHES NETWORK UPGRADE
Bell Canada will invest $1.5 billion over three years in network upgrades.  Plans include the deployment of metropolitan optical fiber mesh networks using cables containing more than 800 fibers each; launch of optical Ethernet LAN services; and expansion of residential DSL services to reach five million, or over 70%, of its residential and business customers by the end of the year. http://www.bell.ca
Bell Canada, March 27, 2000

STORM TELECOMMUNICATIONS SELECTS IBASIS FOR INTERNET TELEPHONY
Storm Telecommunications will route international voice and fax traffic over the iBasis Internet telephony network and will terminate international traffic for iBasis into the major business centers of Europe.  The pan-European Storm Telecommunications voice network is based entirely on International ISDN signaling systems (C7 I-ISUP) and broadband transport systems.  
http://www.stormtel.com
http://www.ibasis.net
i
Basis, March 27, 2000

  • Storm Telecommunications, was originally founded in 1998 by 3 shareholders: Telenor AS of Norway, IXC Communications, Inc. and Clarion Resources Communications. Storm recently announced the management buyout of the UK-based carrier from its founding shareholders using investments from Soros Private Equity Partners.  Storm will use Sycamore Networks’ optical switches to offer re-routable optical services for ISPs, as well as TV and cable TV broadcasters.  The optical switches will be installed in a mesh configuration across Storm's network in the UK, Belgium, Holland, France, Germany, Italy, Austria, Switzerland, Sweden, Norway, Denmark, Finland and the US.

BRAZIL'S NATIONWIDE SATELLITE NETWORK TO OFFER VOICE AND IP SERVICES OVER ATM
A newly created Brazilian carrier, Intelig Telecomunicacoes Limitada, which will create a nationwide telecommunications network over satellite to help deliver "universal services" throughout the country.  The new network will offer voice and IP services over ATM satellite links to 39 Brazilian cities.  Alcatel Space will deploy the satellite/ground station network for Intelig using General DataComm's  (GDC's) multiservice platforms.  GDC will supply its APEX-NPX and -IMX switches and AAL2-based voice service module to enable customers to connect directly to Intelig's network.  http://www.gdc.com
General Datacom, March 27, 2000

  • Intelig Telecomunicacoes is owned by National Grid Group PLC (50%), France Telecom SA (25%) and Sprint Corporation (25%).

STRUCTUS BUILDS ASP NETWORK WITH MARCONI'S ATM SWITCHES
Structus Technologies, a start-up Application Service Provider (ASP) based in Columbia, South Carolina plans to offer wholesale managed port services and application hosting services throughout the southeastern US.  Structus Technologies' core Internet services backbone is based on Marconi's TNX-1100 and ASX-200BX ATM backbone switches and its ESX-2400 Gigabit Ethernet routing switch.  http://www.structus.com   http://www.fore.com/
Marconi, March 27, 2000

 

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