AT&T LAUNCHES BROADBAND VPN SERVICES, ACCELERATES ITS DSL ROLLOUT
AT&T launched a suite of enterprise-class networking services, including a new broadband virtual private network (VPN) offering, enterprise-class hosting, public key infrastructure and network-based firewall services.  The broadband-based VPN services, which are currently in controlled introduction, feature end-to-end IPSec delivered over multi-user DSL and cable access lines. Users can link and share applications via a centrally located managed VPN gateway, which acts as the termination point for multiple IPSec tunnels.  AT&T's Public Key Infrastructure (PKI) will generate, maintain, and manage digital certificates as an option for supporting the VPN IPSec service.  AT&T will also extend its existing Network Based Firewall Service to allow Frame Relay customers to access the Internet, in additional to running their intranets. AT&T debuted MPLS over its ATM network, enabling its ATM service customers to build IP-based intranets and extranets without having to manage a separate IP network or modify the IP applications they are using.  Pricing is determined by bandwidth requirements.

AT&T also announced availability of Business DSL Internet service in nearly 100 US markets, a rollout nearly twice as fast as originally planned.  Basic DSL service is priced at $49.95 per month with 608Kbps download and 128Kbps upload speeds.  An upgraded service is available for $79.95 per month for up to 1.5Mbps download and 384Kbps upload speeds.  AT&T is planning to introduce a DSL managed firewall service by Q4.   http://www.att.com/press/
AT&T, July 26, 2000

• Earlier this week, AT&T reported that its Frame Relay network has been consistently performing above 99.999% (five-nines) reliability this year.  The company introduced its IP Enabled Frame Relay (IPFR) Service in January 1999.  Its Frame Relay network is based on Cisco's IP+ATM Multiservice switches.

GENUITY EXPANDS SERVICE LEVEL GUARANTEE
Genuity tightened its end-to-end service level guarantee (SLG) for its dedicated Internet access customers, offering enhanced performance guarantees for local loop as well as the port charges, network availability, and latency across its US backbone and transoceanic connections to Europe and Asia.  Key parameters include:  99.97% availability of connection; ability to reach all sites across the network; latency of 65 milliseconds within the continental US and within Europe; latency of 110 milliseconds US to London; latency of 170 milliseconds US to Tokyo; and packet loss of no more than 1%.  http://www.genuity.com/announcements/news/press_release_20000726-01.xml
Genuity, July 26, 2000

• Genuity, which was formerly GTE Internetworking's backbone, traces its origins back to BBN

BELL LABS' GEOMETRIC COMPRESSION ALGORITHM PROMISES 12X GAIN OVER MPEG4
Researchers at Bell Labs' Mathematical Sciences Research Center and Caltech's Computer Science Department have developed a new algorithm for geometry compression is 12 times more efficient than the method standardized in MPEG4 and six times more efficient than the best previously published method.  Lucent said the "digital geometry compression" would make it practical to transmit detailed three-dimensional data on the Internet, enabling 3-D virtual objects to be displayed, measured and manipulated.  Digital geometric data is typically acquired by 3-D laser scanning and represents objects using dense meshes of millions or even billions of triangles.  The first Internet applications to use the technology might be animated films and video games.  http://www.lucent.com/press/0700/000726.bla.html
Lucent Technologies, July 26, 2000

GERMANY'S VIAG INTERKOM AWARDS $475 MILLION CONTRACT TO MARCONI
VIAG Interkom, one of Germany's leading national network operators, selected Marconi for the deployment of its nationwide DMS (digital multi- point system) broadband wireless access system in up to 200 franchise areas across the country.  Marconi DMS point-to-multipoint system will allow VIAG Interkom to provide wireless connections of up to 8 Mbps to customers.  The system supports distances of up to 15 km.  The contract was valued at one billion German Deutsche Marks, or about $475 million.  http://www.marconi.com/news_events/press_releases/current/4662.html
Marconi, July 26, 2000

• VIAG Interkom is a joint venture of E.ON Aktiengesellschaft (45%), BT (45%) and Telenor AS (10%).
  

• In January, Marconi acquired Bosch Telecom GmbH for approximately Euro 148 million (US$149 million).  Bosch's product portfolio includes fiber and microwave transmission systems for transport and access networks, active and passive optical access systems, digital point-to-multipoint radio broadband access systems and network termination products.

COVAD REACHES 138,000 DSL SUBSCRIBERS, UP 48% IN Q2
As of June 30, Covad Communications was serving 138,000 DSL subscribers, up 48% over the 93,000 lines at March 31, 2000.  Service ready central offices increased during the second quarter to over 1,700 from 1,350 at March 31, 2000.  Quarterly revenues were $58.2 million and there was a net loss of $131.5 million, or -$0.86 per share.  http://www.covad.com/pr/pr_2000/072600_press.cfm
Covad Communications, July 26, 2000

PMC-SIERRA MIGRATES CPE SILICON FROM T1/E1 RATES TO T3/E3, DSLAM UPLINKS FROM DS-3 TO OC-3
PMC-Sierra introduced three new chips for providing physical layer processing in DSLAMs, customer premise equipment (CPE) based routers, access multiplexers, and wireless base stations.  The company said semiconductor solutions targeting customer premise equipment are migrating from T1/E1 rates to T3/E3 rates and those targeting DSLAM equipment from DS-3 to OC-3 uplinks.  The first device is a highly integrated single-channel OC-3 SONET/SDH framer that combines a dual-mode Packet-Over-SONET (POS) frame processor and ATM cell processor with integrated clock recovery and clock synthesis.  The second chip integrates four DS3 framers and provides E3 and J2 framer support that can be independently configured with DS-3 for multi-service flexibility.  The third device is a fully UTOPIA Level-2 standard compatible, four-channel, cell delineation block device that can operate up to a maximum speed of 52 Mbps. The device provides the Physical Layer Convergence Protocol (PLCP) for DS-1, DS-3, E1 and E3 transmission systems.  http://www.pmc-sierra.com
PMC-Sierra, July 26, 2000

TRILLIUM INTRODUCES VOICE-OVER-ATM SOURCE CODE FOR 3G WIRELESS
Trillium Digital Systems introduced an AAL2 (ATM Adaptation Layer 2) signaling software solution for 3G wireless and broadband network equipment.  AAL2 provides the capability to efficiently handle real-time, packetized voice traffic by mapping multiple voice channels onto the same ATM circuit.  Trillium said its AAL2 signaling solution meets the high-performance, interoperability and small code size requirements of next-generation carrier-grade network products such as 3G wireless Node Bs, DSL modems, DSLAMs, multi-service central office switches and radio network controllers (RNCs).  http://www.trillium.com/
Trillium Digital Systems, July 26, 2000

TURIN NETWORKS RAISES $60 MILLION FOR ITS OPTICAL GATEWAY DESIGNS
Turin Networks, a start-up based in Petaluma, California, raised $60 million in second round venture financing.  Turin is developing optical gateway equipment.  Product specifics have not yet been disclosed.  Investors include Advanced Fibre Communications, Van Wagoner Capital Management, Sequoia Capital Baker Capital Corp., Morgan Stanley Dean Witter Equity Funding, and Pivotal Asset Management.  http://www.turinnetworks.com/
Turin Networks, July 24, 2000 

• Turin Networks was founded in October 1999 by John Webley (previously a co-founder of AFC), Philip Yim (previously with AFC and Siemens), Rich Stanfield (previously with AFC and Stratus).

JDS UNIPHASE REPORTS QUARTERLY REVENUE OF $524 MILLION, 33% SEQUENTIAL GROWTH
JDS Uniphase reported quarterly revenue of $524 million and pro forma net income of $114 million or $0.14 per diluted share.  Sales for the quarter were 33% above net sales of $395 million for the preceding quarter and 173% above pro forma combined sales of $192 million for the same period last year.  http://www.jdsunph.com
JDS Uniphase, July 26, 2000

• Consensus estimates for JDSU were $0.13 p/s