PMC-SIERRA ACQUIRES QED, ADDING MIPS PROCESSING TO ITS NETWORKING SILICON
PMC-Sierra will acquire Quantum Effect Devices (QED), a developer of MIPS processors for networking applications, for approximately $2.3 billion in stock (July 11 prices).  QED's MIPS devices are used in networking line cards for processing of routing tables and telecommunications code.  Its latest MIPS RISC embedded microprocessor operates at 450MHz clock speeds, uses 3.5 watts of power, and features an on-chip 256Kbyte level 2 cache optimized for handling high-speed transient data in routers, access concentrators, storage area networks and other communications devices.  QED's largest customer is Cisco Systems.  PMC Sierra's largest customer is also Cisco Systems.  PMC-Sierra said that although the rest of its silicon products would remain processor-agnostic, its choice of an open microprocessor architecture was strategic for the industry.  QED is based in Santa Clara, California and has over 100 employees.  http://www.qedinc.com/
http://www.pmcsierra.com/pressRoom/pr/2000071101.html
PMC-Sierra, July 12, 2000

GLOBAL CROSSING DIVESTS IS LOCAL EXCHANGE BUSINESS
Global Crossing will sell its incumbent local exchange carrier (ILEC) business to Citizens Communications for $3.65 billion in cash.  The business was part of Frontier Communications, which Global Crossing acquired last year for its North American fiber backbone.  The Global Crossing ILEC, which, at year-end, comprised 1,070,000 access lines, is the 10th largest ILEC group, according to the company.  http://www.globalcrossing.com/pressreleases/pr_071200.htm
Global Crossing, July 12, 2000

• On Wednesday, The Wall Street Journal reported that Global Crossing is also considering the sale of its Global Center hosting business to Exodus Communications.  http://www.wsj.com

EXODUS SELECTS ALTEON'S CONTENT WEB SWITCHES FOR MANAGED HOSTING SERVICE
Exodus Communications will resell Alteon WebSystems' content-intelligent, Gigabit and Fast Ethernet Web switches to its hosting customers as part of its managed service offerings.  The deal is aimed at delivering ultra-high availability and high performance, load balanced Web hosting as a managed service.
Alteon WebSystems, July 12, 2000

• Earlier this week, Alteon reported 80% revenue growth for its products.  Its quarterly financial reported noted strong growth across all product lines, across all geographies worldwide and across all customer segments, with particular strengths in Web Hosters and Application Service Providers.

JUNIPER ANNOUNCES NEW CUSTOMERS IN EUROPE, KOREA
IPERGY, a new European carrier's carrier has deployed Juniper Networks M20 and M40 routers at the core of its pan-European IP backbone.  The deployment includes 16 M40 routers in the six combined data centers / POPs.  http://www.IPERGY.com    Korea's Internet Business Resources (IBR) has also deployed a new IP backbone linking major cities in Korea.  http://www.ibrglobal.com  http://www.juniper.net/
Juniper Networks, July 12, 2000

KMC TELECOM, A CLEC, RAISES $182 MILLION TO FUND ROLLOUT
KMC Telecom, a facilities-based CLEC serving 35 markets in the eastern US, raised $182 million of private equity from Lucent Technologies, Dresdner Kleinwort Benson Private Equity Partners, CIT Lending Services, Nassau Capital Partners and Hal Kamine, its founder.  The funds will be used for continued expansion of its city fiber networks, as well as to advance deployment of a nationwide data footprint.  http://www.kmctelecom.com
KMC Telecom, July 12, 2000

• Last week, Focal Communications, another facilities-based CLEC, secured $300 million in funding – indicating continued investor interest in new telecom entrants in US markets.
  
• KMC recently hired William F. Lenahan as its new CEO.  Lenahan previously was President and CEO of BellSouth Wireless Data.
  
• KMC has previously agreed to deploy Lucent's 7R/E Packet Solutions, the PathStar Access Server and Stinger DSLAMs in the small to mid-sized cities it serves.  The 7R/E solution would enable KMC to offer VoIP in cities where 5ESS switches are already in use.  The contract with Lucent, which was announced in December 99, was valued at up to $900 million over three years.

COMSTELLAR LAUNCHES A NEW BUSINESS MODEL FOR NETWORKING START-UPS
A "dream team" of entrepreneurs in the networking industry has teamed up with Redwood Venture Partners and other investors to create Comstellar Technologies, an incubator venture that will establish and operate a group of independent communications infrastructure start-ups.  Comstellar will focus on developing core "disruptive" technologies that dramatically improve the capabilities of the communications network.  Investments in the company already total $140 million.  The company plans to announce its initial companies soon. Comstellar is led by Sanjiv Ahuja (CEO), who is the former President and Chief Operating Officer of Telcordia Technologies.  The team also consists of Raj Parekh as CTO and Chairman of the Board (formerly Vice President of Engineering and Chief Technology Officer with Sun Microsystems); Raj Singh as President (a founder of StratumOne Communications and Fiberlane); Jack Skydel as VP of Business Development (formerly Managing Director of Lehman Brothers Global Technology Group); and Paul Kothari as CFO (formerly CFO of TheStreet.com).  http://www.comstellar.com/
Comstellar Technologies, July 12, 2000

CELOX NETWORKS RECEIVES $68 MILLION FOR ITS DEEP IP SERVICES SWITCH
Celox Networks, a start-up based in Hudson, MA., raised $68 million in second round funding to support its development of a differentiated, carrier-class, IP Services Delivery Platform.  The switch will employ a combination of ASICs and general-purpose processors to support high-speed interfaces and deep IP functionality for very large numbers of users.  Product specifics have not been disclosed.  Investors include ABS Ventures, Goldman Sachs, Pilot House Associates, Rosewood, Storm Ventures, and Texas Pacific Group.  http://www.celoxnetworks.com
Celox Networks, July 12, 2000

• Celox Networks is led by Kent Mathy, formerly Vice President of Global Services at AT&T.  The company was founded by Dr. Manju V. Hegde, a professor of Electrical Engineering at Washington University in Saint Louis.

NEXTNET WIRELESS SECURES $10 MILLION FOR ITS MMDS SYSTEM
NextNet Wireless, a start-up based in Minneapolis, Minnesota, raised $10 million in second round venture funding to support its development of an MMDS broadband wireless access system.  The company plans to debut its solution, including desktop customer premise equipment, by the end of the year.  NextNet said its technology initially will be applied to the MMDS band (2.5 to2.686 GHz), and later leveraged to other frequencies, including 3.5 GHz, 700 MHz, and PCS. Investors include DCM-Doll Capital Management, JAFCO Ventures, Cabletron Systems and private individuals.  http://www.nextnetwireless.com/
NextNet Wireless, July 12, 2000

• The NextNet system will use OFDM radio transmission technology and a wireless, Layer 2 Ethernet switching architecture for connecting subscribers to the service provider's backhaul network.
  
• NextNet is led by Ralph Muse, who formerly served as the vice president of engineering, manufacturing, and operations at Metricom. His background also includes positions as president and general manager, CSI Zeitnet (Cabletron).