UPC’S PRIORITY TELECOM ACQUIRES CIGNAL GLOBAL COMMUNICATIONS
Priority Telecom, the competitive local exchange carrier (CLEC) of United Pan-Europe Communications (UPC), will acquire Cignal Global Communications in exchange for a 16% interest in Priority Telecom.  Cignal has deployed a facilities-based ATM/IP network to 16 countries in Europe, Asia, and the Americas in less than two years.  Cignal uses a proprietary method for routing of phone calls between cell/packet networks and local telephone networks. The company is based in Cambridge, Massachusetts.  Priority Telecom said the merger gives it a combined business with more than 12,000 km of metropolitan fiber optic cable, seven gigabits of international capacity, and operations in 18 markets providing access to more than 750,000 businesses.  http://www.cignal.com
http://www.upccorp.com/upc/upccorp/default.htm
UPC, April 14, 2000

• United Pan-Europe Communications (UPC) also operates Priority Wireless, which currently has Broadband wireless licenses in Norway, Finland, Spain and Switzerland.  The company is aggressively pursuing wireless local loop licenses throughout Europe. 
  
• As of February 29, 2000, on an aggregate basis, UPC's systems passed approximately 10.7 million homes with more than 6.9 million basic cable subscribers. In addition, UPC systems had 249,700 residential telephony lines and 18,300 business telephony lines as well as 150,000 residential Internet subscribers and 3,700 business Internet subscribers.

NETERGY DEVELOPS HOSTED IP-BASED PBX, PART OF CISCO’S ECOSYSTEM
Netergy Networks (formerly known as 8x8), a start-up developing hosted IP-based telephony servers and PBX systems, joined Cisco Systems’ New World Ecosystem program.  The Netergy system allows local telephone service providers to deliver hosted IP private branch exchange (iPBX) solutions to business customers via any broadband IP-based connection, including DSL, T1/E1, ATM, cable or wireless.  The Netergy system consists of 3 elements:  an iPBX server system for the CLEC’s data center or CO (Netergy supports up to 100 business customers with up to 100 extensions each); customer premise hubs that connect analog telephones and fax machines to the fast IP connection; a Switchboard and Administrator application that allows telephone users, attendants and system administrators to manage the system.  The company is based in Santa Clara, California and has offices in France and the UK.
http://www.netergynet.com/News-events/pr-archive/pr20000414.html
Netergy Networks, April 14, 2000

• In February, Netergy (8X8)announced iplans for an IP Telephone Processor that combines all of the digital circuitry needed to make an IP digital phone on to a single chip. The device handles call control processing and audio compression.  It also incorporates dual Ethernet Media Access Controllers (MACs), one for connecting to a network and one for connecting to a computer. 

ITU Approves X.509 for Securing connectionS between browsers and servers
The International Telecommunication Union (ITU) in Geneva approved a new edition of Recommendation X.509 for securing connection between browsers and Web servers.  X.509 specifies public-key and attribute certificate frameworks for network security.  The specification was developed in close cooperation with ISO/IEC and the ISOC/IETF. http://www.itu.int/newsroom/press/releases/2000/05.html
ITU, April 13, 2000

CABLETRON SEEKS BUYER FOR DIGITAL NETWORK PRODUCTS GROUP
Cabletron Systems established an independent DIGITAL Network Products Group (DNPG) to focus on workgroup and wiring closet networking solutions for enterprise customers.  This is the first step toward Cabletron divesting of the DNPG product.  Cabletron is looking for a buyer for the group.  The new DNPG division will be headquartered in Andover, Massachusetts and will be under the direction of Bill Burger, General Manager.  http://www.cabletron.com/dnpg
Cabletron Systems, April 14, 2000

LSI LOGIC ACQUIRES MIXED-SIGNAL DESIGN EXPERTISE FROM NEOMAGIC
LSI Logic will acquire NeoMagic's optical read-channel mixed-signal design team and RF intellectual property for use in high-volume communications solutions for approximately $14.5 million.  NeoMagic, based in Santa Clara, California, is developing single-chip solutions that integrate DRAM, complex logic, and analog circuits.  The proprietary MagicWare technology reduces power consumption by eliminating the need to drive signals off-chip to discrete memory .
http://www.lsilogic.com  http://www.neomagic.com
LSI Logic, April 14, 2000

BRIGHTLINK NETWORKS ADDS $52 MILLION IN THIRD ROUND VC FUNDING
BrightLink Networks, a start-up developing optical switching systems, secured an additional $52 million in a third round of venture funding by Goldman Sachs, Comdisco, Credit Suisse First Boston, Mitsui, Vision Capital, Draper Fisher Jurvetson, Menlo Ventures and The Sprout Group.
http://www.brightlink.com/
BrightLink Networks, April 14, 2000

• Last month, BrightLink Networks unveiled plans for an intelligent optical network switching system designed to allow long-haul Interexchange Carriers (IXCs) to provision and switch end-to-end links from OC-48 down to an STS-1.  The BrightLink Optical Network Switching System scales from 16 up to 1,024 OC-48 ports, or from four to 256 OC-192 ports.  The switching fabric uses a “hypertorus mesh design,” rather than a standard crossbar architecture. The swithching system will interconnect DWDM systems, rather than traditional SONET ADMs, DCSs or OCSs.  Lab trials are expected in Q3.  BrightLink Networks was previously known as Corvia. 

BANK OF AMERICA CLOSES $500 MILLION VENTURE FUND FOCUSING ON COMMUNICATIONS
BA Venture Partners, a venture capital partnership funded by Bank of America, announced a new $500 million fund focusing on broadband and wireless communications, Internet software and services, business e-commerce and biotechnology.
http://www.bankofamerica.com/newsroom/press/press.cfm?PressID=press.20000414.01.htm
Bank of America, April 14, 2000

MORGENTHALER PARTNERS RAISES $570 MILLION FOR NEW VENTURE FUND
Morgenthaler Partners  announced completion of its sixth investment fund at $570-million. The firm plans to target approximately 40% of its new fund to buyouts and recapitalizations and the remaining 60% to its early stage venture capital practice for Internet communications, software and services and healthcare. The firm also announced the appointment of Scott Fine, previously CFO of RELTEC Corp. (now part of Marconi) as a Venture Partner.
http://www.morgenthaler.com/
Morgenthaler Partners, April 14, 2000

• Morgenthaler recent investments include Versata (web infrastructure), Nuance Communications (speech recognition), New Focus (optical components), Lightwave Microsystems (optical ASICs), Endwave (broadband wireless), Pointshare (physician connectivity), Protogene (gene chips), APSCO (electronic components), International Flex (flexible circuit boards), and Cambridge International (engineered metal conveyor belts).