NORTEL NETWORKS INVESTS $1.9 BILLION TO DOUBLE OPTICAL PRODUCTION
Nortel Networks will invest US$1.9 billion over the next 18 months to more than double its manufacturing capacity for optical components.  The new funds are in addition to US$660 million of investments in optical capacity announced over the past nine months.  Nortel Networks estimates that its global optical components business will have pro forma revenues (adjusted to reflect market prices) of approximately US$2.5 billion in 2000, up over 200% from 1999.
http://www.nortelnetworks.com/corporate/news/newsreleases/2000b/07_24_0000470_hpocs.html
Nortel Networks, July 24, 2000

• On Monday, the Wall Street Journal reported that Nortel Networks and Corning are considering a possible $100 billion combination of their optical component businesses.  The companies did not comment on the report.  http://www.wsj.com

RHYTHMS SELECTS NET2PHONE'S IP TELEPHONY FOR ITS DSL ACCESS NETWORK
Rhythms NetConnections announced plans to launch residential and business VoIP services in partnership with Net2Phone.  The service would allow end users to plug their normal telephones into a Net2Phone IP device, which in turn would be connected to the Rhythms DSL modem.  End users would be able to make and receive direct-dial phone calls to any regular or IP telephone in the world.  Under the deal, Net2Phone will provide Rhythms with VoIP hardware, services, billing and customer service. In return, Rhythms will market the Net2Phone package to its channel partners.  Trials are underway this summer.  Commercial services are expected later this year.
http://www.rhythms.com/news/pr/net2phone.html
http://www.net2phone.com
Rhythms NetConnections, July 24, 2000

• Last week, Microsoft agreed integrate Net2Phone's PC-based client software into its MSN Messenger Service for offering free PC-to-PC or PC-to-phone calls in the US or Canada.
  
• In March, an AT&T-led consortium announced plans to acquire a 39% voting stake in Net2Phone.  AT&T and Net2Phone have also disclosed plans to jointly develop new Internet voice applications for cable telephony and the business communications market.

BT SELECTS MARCONI'S SMARTPHOTONIX DWDM PLATFORM
BT selected Marconi as a strategic technology partner for building its European optical backbone.  The five-year contract, which is valued at more than £2 billion, covers Marconi's SmartPhotoniX DWDM products, including its remotely configurable Optical Add/Drop multiplexer and optical cross-connects.  The contract also names Marconi as the sole supplier to extend BT's existing core SDH network.  http://www.marconi.com/news_events/press_releases/current/4650.html
Marconi, July 24, 2000

MARCONI RELEASE NEW ENTERPRISE GIGABIT ETHERNET SWITCHES
Marconi introduced two Gigabit Ethernet Switch Routers featuring fault-tolerant architectures and Class of Service/Quality of Service (CoS/QoS) capabilities.  The ESR-5000 platform offers a 45.76 Gbps backplane switching capacity and support for up to 244 10/100 Ethernet or 48 Gigabit Ethernet ports and ATM uplinks with Layer 2 and Layer 3 switching and routing available at every port.  An upgraded ESR-6000 Routing Switch will add high-density media modules to support multiple traffic classes with bandwidth reservation, bandwidth caps and real-time traffic on up to 768 10/100 Ethernet ports, or 128 Gigabit ports or 384 100Base-FX Layer 2 or Layer 3 ports with ATM uplinks.  http://www.marconi.com/news_events/press_releases/current/4654.html
Marconi, July 24, 2000

NEXTLINK SELECTS CIENA'S LONG HAUL MULTIWAVE CORESTREAM
NEXTLINK is deploying CIENA's MultiWave CoreStream long-haul optical platform across its 16,000-mile, inter-city, fiber-optic network.  The network will be scalable up to 70 wavelengths per fiber at OC-192 per wavelength. NEXTLINK said its expects that it will become the first service provider to light more than 40 wavelengths at OC-192 on a single fiber. An initial phase of the five-year contract is worth an estimated $120 million.  http://www.ciena.com/news/archive/2000/07/07.24.2000pr.html
Ciena, July 24, 2000

AMBER NETWORKS ATTRACTS $91 MILLION IN NEW FUNDING
Amber Networks, a start-up developing optical edge equipment, secured $91 million in third round funding.  Amber's ASR2000 platform will concentrate TDM private line, Frame Relay, ATM and IP onto core IP/optical networks.  The system will feature high-level, packet processing and a fault-tolerant router operating system.  Investors include INVESCO Private Capital, Enron Broadband Services, Williams Communications, Toshiba America Electronic Components, Accel Partners, ITV/Infinity Capital and others.  http://www.ambernetworks.com
Amber Networks, July 24, 2000

• Amber Networks was founded in 1998 by Sam Mathan (formerly Ascend Communications) and Amar Gupta, who formerly was one of the key developers of StrataCom's packet switches.  The company is based in Santa Clara, California.

SYCAMORE BUILDS PARTNERSHIP PROGRAM FOR OPTICAL PROVISIONING
Sycamore Network launched a partnership program to encourage third party, optical service management tools for its optical platform.  The first two partners are Syndesis, a leading provider of automated service provisioning software, and CrossKeys, a carrier-scale service assurance and network performance application provider.  http://www.sycamorenet.com/about/news/pressreleases.cfm?news_item_id=300
Sycamore Networks, July 24, 2000

ACCESSLAN ENHANCES ITS IN-BUILDING DSLAM WITH LAYER-3 ROUTING AND IP AGGREGATION
AccessLan Communications released a new IP feature set for its PL-1000 line of stackable DSLAMs, which are designed for the multiple tenant unit (MTU), multiple dwelling unit (MDU) and hospitality markets.  The new software enables differentiated internet access, application hosting and distributed content delivery services, in addition VoDSL and "best efforts" Internet access.  Key features include IP flow classification, prioritization and QoS assignment; layer-2 forwarding and layer-3 routing; IP addressing schemes with DHCP and NAT; and any-port to any-port connectivity between DSL, T1 and Ethernet ports.  AccessLan also introduced new 8-port and 12-port SDSL access modules for the concentrator.  A 24-port SDSL access module is already available.  http://www.accesslan.com/
AccessLan, July 24, 2000

SIEMENS INVESTS IN OPTICAL MICRO-MACHINES
Siemens Venture Capital (SVC) and Mustang Ventures have made equity investments in Optical Micro-Machines, a start-up supplying MEMS-based all-optical switching solutions to communications OEMs.  Financial terms were not disclosed.  The company is based in San Diego, California.  http://www.omminc.com
Siemens, July 24, 2000

AKAMAI'S NETWORK GROWS TO 4,250 SERVERS IN 225 NETWORKS
Akamai Technologies has now deployed 4,250 servers in 225 telecommunications and ISP networks in 50 countries.  During Q2, Akamai delivered 2,500 live video and audio streaming events.  It now has 850 customers under recurring contract.  http://www.akamai.com/news/press776.html
Akamai, July 24, 2000

• Last month, Akamai raised $300.0 million of cash through a convertible debt offering to further expand its network.