MITEL UNVEILS NEW PROCESS TECHNOLOGY YIELDING SMALLER AND CHEAPER DWDM COMPONENTS
Mitel announced a new Echelle Grating fabrication technique that is expected to lead to higher-capacity, single-chip DWDM devices based on standard semiconductor materials.  Mitel said its breakthrough allows thick layers of glass (or silica) to be deposited on a silicon base, while ensuring a predictable refractive index.  Echelle Grating, rather than conventional Arrayed Waveguide Grating (AWG), allows light to reflect and then to propagate with extreme precision.  Mitel expects further advances in packaging will allow it to obtain much higher manufacturing yields than currently possible.  The new technology has been used to create a 40 channel multiplexing device conforming to the ITU-T grid and using 100 GHz channel spacing.  An 80-channel, 50 GHz device is also in development.  Mitel plans to launch a line of "LightRider" DWDM by early next year.  http://www.mitelsemi.com/index.htm
Mitel, August 10, 2000

SPHERA OPTICAL NETWORKS RAISES $70 MILLION FOR LOCAL FIBER DEPLOYMENTS
Sphera Optical Networks, a start-up service provider, secured $70 million in venture capital to build "all-optical" metropolitan gateway networks in 12 US and 2 European cities.  Investors include the Mayfield Fund, Soros Private Equity Partners, Pequot Capital Management, Oak Investments Partners and Worldview Technology Partners.  http://www.mopticalnets.com
Sphera Optical Networks, August 10, 2000

• Sphera Optical Networks was previously called Millennium Optical Networks.  Sycamore Networks has previously announced a contract to supply its optical transport platform to the company.

360NETWORKS SIGNS $100 MILLION CAPACITY DEAL WITH TELEGLOBE
Teleglobe will purchase approximately US $100 million of capacity on the planned 360americas undersea and terrestrial fiber optic network linking North America and South America.  The contract specifies 10 Gbps wavelength capacity.  360networks expects the first leg of the northern network ring linking the United States, Bermuda and Brazil will be ready for service in September.  http://www.360networks.com/
360networks, August 10, 2000

FIBERNET SELECTS MARCONI FOR DWDM NETWORK ACROSS GERMANY
UK-based Fibernet selected Marconi to build a multi-terabit optical network extending to 32 cities across Germany.  The network will use Marconi's point-to-point DWDM solution, capable of up to 80 channels per fiber at 10 Gbps each, and 64 STM-16 SDH add-drop multiplexers. Fibernet intends to offer key services like wholesale DSL access and IP-based VPNs.  Financial terms were not disclosed.  http://www.marconi.com/news_events/press_releases/current/4717.html
Marconi, August 10, 2000

DRIVEWAY SELECTS CISCO FOR ITS FREE ONLINE STORAGE SERVICE, REACHES 6 MILLION USERS
Driveway.com, which is a web service that offers consumers 25 MB of free online storage, selected Cisco Systems to build a new. high-performance routing network.  Financial terms were not disclosed.  http://www.driveway.com
Driveway.com, August 10, 2000

• As of the beginning of August, Driveway.com reached 6 million registered users for its free online storage.  The service was initially launched in October 1999.  The company reports a growth rate of more than 20,000 registered members per day.  In July, Driveway.com activated a data center with 20 terabytes of EMC Enterprise Storage.  The company uses Oracle databases to manage the service.
  
• Xdrive.com, which also provides free online disk storage, last reported 3.5 million users and a growth rate of up to 30,000 new registrations per day.  http://www.xdrive.com

INTEL TO ACQUIRE DATAKINETICS FOR SS7 EXPERTISE
Intel will acquire DataKinetics, a privately-held developer of Signaling System 7 (SS7) hardware and software products.  Financial terms were not disclosed.  DataKinetics offers a range of OEM products, including E1/T1/V35 multiprotocol cards and SS7/IP signalling servers.  Intel said it would use DataKinetics' SS7 capabilities combined with Media Gateway Control Protocol (MCGP), Megaco, Simple Internet Protocol (SIP) and H.323 for next generation, converged voice and data solutions.  DataKinetics is based in Fordingbridge, UK.  http://www.intel.com/pressroom/archive/releases/cn081000.htm
http://www.datakinetics.co.uk
Intel, August 10, 2000

Intel's Network-related Acquisitions this Year DataKinetics Signaling System 7 (SS7) hardware and software Aug 00 not disclosed Trillium Data Systems communications source code Aug 00 $300 million Picazo Communications CT media server software Apr 00 not disclosed Basis Communications network processors including narrowband controllers and CardBus controllers Mar 00  $495 million in cash GIGA A/S OC-48 and OC-192 silicon solutions Mar 00  $1.25 billion in cash Voice Technologies Group IP PBX Integration communication boards Feb 00 undisclosed cash   Ambient Technology DSL silicon Jan 00 $150 million in cash Full list of Intel networking-related acquisitions

COVAD AND NTT FORM DSL ACCESS COMPANY FOR JAPAN
NTT Communications and Covad Communications will form a joint venture, ACCA Networks, targeting DSL services in major metropolitan areas in Japan.  ACCA Networks hopes to build out 450 central offices (COs) in 17 markets by the end of 2001.  Initially, the partners will each invest $11.5 million for a 41.8% equity stake in ACCA.  Ignite Japan KK, a venture capital firm, will hold a 6.7% stake, with the remaining shares held by ACCA founders. http://www.covad.com/pr/pr_2000/081000b_press.cfm
Covad, August 10, 2000

ENTRIDIA SECURES $10 MILLION FOR ITS ROUTING SILICON DESIGNS
Entridia, a start-up developing high performance routing for optical internetworking, secured $10 million in new venture funding, bringing total investment in the company to $40 million.  Entridia's strategic partners include AMCC and Conexant.  Investors include Agilent Technologies, S3, , Merrill Lynch and Bayview 2000, an employee venture fund of Robertson Stephens.  Entridia is based in Irvine, California.  http://www.entridia.com
Entridia, August 10, 2000

• Entridia is working on an Optical Edge Routing Architecture (OPERA) of silicon devices targeted at metro network aggregation equipment.  Entridia plans to offer both line-card silicon and backplane switch fabrics.  Its line card silicon will integrate user-configurable route and flow processing, along with traffic engineering mechanisms. The company said its design would be extensible past OC-768c.  Entridia's first switching fabric device will be capable of handling 16 - 64 OC-48cs at line-rate.  
  
• Entridia is led by Terry Holdt, who formerly served as President and CEO of S3 Inc.  The company was founded by Emil Chao, Paramesh Gopi and Ram Krishnan.

TUT SYSTEMS TO ACQUIRE FOR IP TELEPHONY
Tut Systems will acquire ActiveTelco, a start-up developing IP telephony systems, for approximately $36.5 million.  Tut Systems will use ActiveTelco's technology to enhance its IntelliPOP multi-service platform, which is designed for multi-tenant buildings including apartments, dormitories, hotels and commercial properties.  ActiveTelco is based in Fremont, California.  http://www.activetelco.com
http://www.tutsystems.com
Tut Systems, August 10, 2000

3COM LAUNCHES $100 MILLION BRANDING CAMPAIGN
3Com launched a $100 million global integrated brand campaign, focusing on a " Radically Simple" theme for network solutions aimed at businesses and consumers.  The marketing campaign will use extensive television and print advertising. http://www.3com.com/news/releases/pr00/aug1000a.html
3Com, August 10, 2000