VERIZON TO MERGE ITS DSL BUSINESS WITH NORTHPOINT, ACQUIRES 55% STAKE
Verizon Communications will merge its DSL operations with those of NorthPoint Communications, which currently has DSL in 1,500 central offices across the US.  Verizon's new DSL unit, which will continue to be called NorthPoint, expects to have more than 3,000 unique operational DSL central offices by early next year, serving 163 metropolitan statistical areas (MSAs) across the US.  Under the deal, Verizon will invest $800 million in NorthPoint, of which $450 million will be used to fund continued network expansion and $350 million (or $2.50 per share) would be paid to current NorthPoint shareholders.  NorthPoint shareholders also will receive one share in the new NorthPoint for each share held as of the closing date. Verizon will own 55% of the new NorthPoint and existing NorthPoint shareholders will own 45%.  Lizz Fetter will continue to lead NorthPoint after the merger.  The deal still requires approval from the FCC, Department of Justice, various state commissions and NorthPoint shareholders.  http://newscenter.verizon.com/proactive/newsroom/release.vtml?id=41668
Verizon, August 8, 2000

• As of June 30, NorthPoint was serving 62,000 DSL subscribers, up from 41,300 subscribers as of March 31, 2000.
  

• In March NorthPoint Communications and VersaTel, an alternative local access provider operating in the Benelux and the Northwest Rhine region of Germany, formed a joint venture wholesale DSL service provider for the EU market.  VersaPoint initially is targeting more than 2,000 central office co-locations in the German and Dutch markets.  
  

• Separately, NorthPoint reported quarterly revenue of $24.4 million, up 22% over the preceding quarter.  The net loss for the quarter was $112.1 million, reflecting continued network construction.
  

• As of June 30, Verizon was serving 221,000 DSL customers, up by 71,000 for the quarter.  Verizon ended the quarter with 1,712 wire centers as DSL ready.  The company said it is now activating about 2,500 DSL accounts per day, roughly double its rate of installation for June. (Verizon's 87,000 union workers began a work stoppage on Sunday and the company asked consumers to delay requests for new lines or service)  Verizon aims to have 500,000 DSL accounts in service by the end of the year.

GENUITY SELECTS XACCT FOR USAGE-BASED PRICING MODEL FOR IP SERVICES
Genuity has licensed XACCT Technologies' IP usage platform for its international network.  The deployment will allow Genuity to develop differentiated pricing models for select IP services.  XACCT’s multi-source, multi-layer architecture enables it to extract information from multiple network devices and from all layers of the network - from physical layer to the application layer, in real time.  The data is then synthesized or eXtensible Detail Records, similar to the Call Detail Records (CDRs) generated by telco switches.  Genuity has already integrated XACCTusage with its existing Kenan Arbor Customer Care and Billing (CCB) system to create customer bills.  Genuity runs a Cisco powered IP network.  http://www.xacct.com/news/pressreleases/xacct_release_000807.htm
XACCT, August 7, 2000

• Broadwing Communications is also adopting a billing model based on measured IP-usage for its new virtual private network (VPN) service.  Broadwing will use XACCT’s system to collect the customer IP usage data from multiple network elements, such as routers, switches, firewalls, and application servers.

GENUITY VOIP NETWORK CARRIES 700 MILLION MINUTES TO DATE
In one year since launching its wholesale VoIP network service, Genuity has delivered over 700 million minutes of use.  The network currently has the capability to support 80,000 simultaneous users.  Genuity's VoIP customers include Dialpad.com, Phonefree.com, Tiscali S.p.A, Global Network Telephone (GNT) GMBH, Qrio, InfoInteractive and Pagoo.
http://www.genuity.com/announcements/news/press_release_20000808-01.xml
Genuity, August 8, 2000

SILICON ACCESS DEBUTS CHIPSET FOR DEEP PACKET PROCESSING AT 10 GBPS
Silicon Access, a network processor start-up based in San Jose, California, introduced its chipset for deep packet processing with native support for both 10 gigabit Ethernet (10GE) and OC-192.  The company's iFlow architecture, which consists of six chips, will leverage an extremely fast and flexible Smart Memory, which utilizes embedded DRAM, SRAM and two types of ternary CAM technology. The chips are designed to support multiple QoS levels on 64K simultaneous flows with policing, queuing, scheduling and traffic shaping.  Wire speed flow classification enables per-byte and per-packet billing and accounting functions.  Silicon Access said its chipset could be used for a new generation of smart "edge routers," enabling content switching applications in metro area networks.  http://www.siliconaccess.com
Silicon Access, August 8, 2000

• Silicon Access is led by Perry Constantine, who was also a co-founder of LSI Logic serving as the VP of Marketing and Sales before founding LSI Logic Canada.  The company was co-founded by Dr. Hing Wong, previously a key DRAM and SRAM designer at IBM Microelectronics.  Investors include Norwest Venture Partners, Tallwood Venture Capital, Sprout Group, Raza Ventures, Intel Communications Fund, Synopsis and Comdisco.

TRELLIS PHOTONICS APPOINTS LUCENT EXEC AS NEW CEO – LEVERAGING HOLOGRAMS FOR OPTICAL SWITCHING
Trellis Photonics, a start-up developing all-optical wavelength switching technology, named Timothy K. Cahall as its new CEO.  Cahall formerly Marketing & Sales Vice President for Lucent Technologies optical fiber and specialty fiber businesses.  Trellis Photonics is working on "Electroholography" technology that was originally researched by Professor Aharon J. Agranat at the California Institute of Technology and the Hebrew University of Jerusalem.  The company's founder, Elon Littwitz, continues as president.  Trellis is based in Elite, Israel.  http://www.trellis-photonics.com/
Trellis Photonics, August 8, 2000

• Trellis plans to employ Electroholography as a means for all-optical wavelength switching.  The technique requires a wavelength specific hologram to written into a KLTN crystal.  When no voltage is present, the crystal is essentially transparent. However, when voltage is applied, the hologram within the crystal becomes reflective to a specific wavelength of light. Trellis claims that by assembling crystals into a matrix of rows and columns, any wavelength can be routed to any fiber.  The company also plans to use the technology to test, measure and dynamically attenuate wavelengths without interfering with the signal.  Background papers are available on the Trellis site.  http://www.trellis-photonics.com/

ECI TELECOM RELEASES 32-CHANNEL, BIDIRECTIONAL DWDM
ECI Telecom released a 32-channel, bi-directional DWDM platform for maximizing transmission over a single fiber in metro networks.  The system features Optical Add/Drop Multiplexer (OADM) capabilities with an automatic equalization. A special in-line amplifier with the ability to add OADM and optical protection, overcomes the problem of bi-directional channels on the same fiber.  A European service provider is deploying the system. http://www.ecitele.com.
ECI Telecom, August 8, 2000

GEYSER NETWORKS RAISES $37.5 MILLION FOR OPTICAL ACCESS
Geyser Networks, a start-up based in Sunnyvale, California, raised $37.5 million in new funding for its development of optical access and broadband management systems.  Investors include VantagePoint Venture Partners, Sequoia Capital, Crimson Ventures, Boston Millennia Partners, Vertex Management, and Access Technology Partners.  Geyser Networks was founded by Wu-Fu Chen and Gordon Lee.  http://www.geysernetworks.com/
Geyser Networks, August 8, 2000

STRATEGINET AWARDS $100 MILLION CONTRACT TO AT&T
StrategiNet, a start-up communications provider targeting integrated services to retailers, awarded a four-year, $100-million contract to AT&T to streamline point-of-service, inventory and credit card authorization services at 6,000 sites around the country.  AT&T will provide a portfolio of services over its ATM backbone, including ATM to Frame Relay Interworking, wireless services and software defined network (SDN) voice services.  http://www.att.com/press/item/0,1354,3185,00.html   http://www.strateginet.com/
AT&T, August 8, 2000

NOKIA ACQUIRES DISCOVERYCOM FOR DSL TESTING
Nokia will acquire DiscoveryCom, a developer of DSL test tools, for approximately $220 million in stock.  DiscoveryCom's LoopMaster product line automates the qualification, provisioning, and management of local copper telephone circuits used to deliver broadband DSL services to subscribers.  The company is based in Huntsville, Alabama.  http://www.nokia.com
Nokia, August 8, 2000

VITESSE ACQUIRES CERTAIN WAN PRODUCTS FROM PHILIPS SEMICONDUCTORS
Vitesse Semiconductor acquired certain assets of the WAN product line of Philips Semiconductors an HDLC controller product, a T1/E1/J1 aggregation product, a DS-3 termination product, as well as several related products that are in advanced stages of development.  The deal was valued at $30 million.  http://www.vitesse.com
Vitesse, August 8, 2000

CISCO SYSTEMS REPORTS QUARTERLY SALES OF $5.72 BILLION, UP 61%
Cisco Systems reported quarterly net sales of $5.72 billion, up 61% over the same period last year.  Pro forma net income, prior to one-time charges, were $1.20 billion or $0.16 per share..  Cisco's net sales for its full fiscal year 2000 were $18.93 billion, compared with $12.17 billion for fiscal 1999, an increase of 55%.  http://www.cisco.com/warp/public/146/pressroom/2000/aug00/corp_080800.htm
Cisco Systems, August 8, 2000

• Market estimates for CSCO were $0.15 p/s
  

• Separately, Cisco Systems announced that Don Listwin, Executive Vice President of its corporate marketing, Service Provider and Consumer Lines of Business, will leave the firm to join a Cisco ecosystem partner in which Cisco holds a minority investment.