LEVEL 3 INTRODUCES DESTINATION SENSITIVE BILLING (DSB) FOR INTERNET TRAFFIC
Level 3 Communications introduced a transport service that breaks the conventional flat-rate Internet pricing model by basing charges on the destination of traffic.  Level3 said its new CrossRoads service would employ a Destination Sensitive Billing (DSB) model that would reduce overall charges for high bandwidth users by as much as 50%.  Level 3's CrossRoads service essentially would reward customers for bringing traffic, and exchanging traffic, on the Level3 network.  Lower rates would apply to intra-city traffic.  The billing system would track the destination and monitor the bandwidth usage of IP packets traveling off the Level 3 fiber.  Level 3 will offer a standard Gigabit Ethernet customer interface option for the service, as well as DS-1, DS-3, OC-3, OC-12, 100BaseT connectivity.  http://www.level3.com/us/services/crossroads/
Level 3 Communications, August 14, 2000

BROADCOM TO ACQUIRE NEWPORT FOR ITS OPTICAL TRANSCEIVERS
Broadcom will acquire NewPort Communications, a start-up developing optical transceivers using CMOS technology, for approximately $1.24 billion (5.5 million BRCM shares).  NewPort offers a single-chip 2. OC-48 transceiver as well as an OC-192 transceiver (sampling in May 2000).  The devices are implemented in standard CMOS, rather than competing Gallium Arsenide, Bipolar or Silicon Germanium.  Broadcom has previously announced plans for a single-chip 10-Gigabit Ethernet Coarse Wavelength Division Multiplexing (CWDM) CMOS transceiver, and is currently developing Serializer/Deserializer (SERDES) technology to speed up the system backplanes.  Broadcom said the acquisition of NewPort Communications and its SONET/SDH expertise would be synergistic with its 10-Gigabit Ethernet technology.  http://www.newportcom.com/  http://www.broadcom.com/
Broadcom, August 14, 2000

NewPort was co-founded in 1996 by Dr. Armond Hairapetian and Lorenzo Longo, both of whom previously worked for Rockwell Corporation in their Semiconductor Systems Division, which was later spun-off and is now Conexant.

MOTOROLA TO SUPPLY MAJORITY OF AT&T DIGITAL SET-TOP TERMINALS
AT&T Broadband selected Motorola to supply the majority of its digital set-top terminals through 2003.  The contract covers 700,000 Motorola DOCSIS cable modems though the end of next year, along with a commitment to deploy Motorola's cable modem termination system equipment.  AT&T also designated Motorola as an initial supplier of VoIP technology. AT&T plans to launch Motorola's Switched IPaccess solution in two major markets and has made a commitment to purchase Motorola's CentriQ customer premises equipment.  A trial is set for later this year.  http://www.motorola.com
Motorola, August 14, 2000

• Motorola completed its $17 billion acquisition of General Instruments in January.

CISCO ENHANCES ITS ENTERPRISE ATM EQUIPMENT
Cisco Systems introduced several new hardware and software options for its Layer 3-enhanced ATM portfolio, which includes the Catalyst 8540 and Catalyst 8510 multiservice switch routers.  New hardware includes: a two-port Gigabit Ethernet uplink module for the Catalyst 8540, a Packet-over SONET (PoS) uplink for the Catalyst 8540; an ATM Router Module (ARM) for the Catalyst 8510 MSR; access control lists for the Catalyst 8510 and LightStream 1010; and new software for Layer 3 to ATM integration.  Cisco said it plans further enhancements for its Layer 3-to-ATM product family, including updates to IP multicast features, MPLS/ VPN solutions, interworking of IP class of service (CoS) with ATM QoS and enhanced voice capabilities.  http://www.cisco.com/warp/public/146/pressroom/2000/aug00/ent_081400.htm
Cisco Systems, August 14, 2000

GERMANY'S TESION SELECTS MARCONI FOR ADSL-BASED ACTIVE OPTICAL NETWORK
German carrier tesion Communikationsnetze Sudwest (tesion) selected Marconi to supply its combined optical fiber and ADSL-based AON (Active Optical Network) architecture for a new network covering 60 sites in the German state of Baden-Wurttemberg.  The installation is the first stage in tesion's national network rollout.  The initial contract was valued at $4.6 million (DM10 million.  http://www.marconi.com/news_events/press_releases/current/4729.html
Marconi, August 14, 2000

EN-TOUCH SYSTEMS DEPLOYS MARCONI'S FIBER-TO-THE-CURB IN HOUSTON
En-Touch Systems, a CLEC serving the Houston metropolitan area, will deploy the Marconi fiber-to-the-curb solution to new communities for supporting premium telephone, cable TV, home security and high-speed Internet services.  The design is upgradeable for future services, including fiber-to-the-home.  Financial terms were not disclosed.  http://www.marconi.com/news_events/press_releases/current/4733.html
Marconi, August 14, 2000

• Separately, Marconi announced that it had reached the milestone of three million lines of fiber-to-the-curb capacity deployed in North America

WAVESMITH NETWORKS SECURES $11.5 MILLION FOR OPTICAL DEVELOPMENTS
WaveSmith Networks, a start-up based in Acton, MA., secured $11.5 million in first round funding for its development of optical networking equipment focused on voice, video and data delivery.  Product plans have not yet been disclosed.  Investors include Bessemer Venture Partners, Atlas Venture and Commonwealth Capital Ventures.  The company said it attracted 20 engineers before being fully funded.  http://www.wavesmithnetworks.com
WaveSmith Networks, August 14, 2000

• WaveSmith Networks was founded in March 2000 by Robert Dalias (formerly with Castle Networks, acquired by Unisphere Solutions), John O'Hara (a member of the start-up team at New Oak Communications, acquired by Bay Networks), Chad Dunn (a member of the start-up team at Omnia, acquired by Ciena), Jim Philippou (a founder at New Oak), Gary Styskal (formerly with Cabletron/Enterasys), Abe Schryer (Ennovate Networks) and Andrea Carr-Evans (Unisphere Solutions).

TELLABS INTRODUCES INTEGRATED SDH MULTIPLEXER / CROSSCONNECT
Tellabs introduced a multi-purpose SDH multiplexer with integrated cross-connects designed for regional and metropolitan networks.  The all-in-one FOCUS LX design offers add and drop multiplexing directly from 2.5 Gbps (STM-16) to 2 Mbps (VC-12).
http://www.tellabs.com/news/00news/nr081400.shtml
Tellabs, August 14, 2000

INFINEON ADDS SMALL FORM FACTOR OC-48 TRANSCEIVERS AND TRANSPONDERS
Infineon Technologies introduced a family of single-mode 2.5 Gbps Small Form Factor transceivers and transponder modules for LAN/WAN equipment.  The 3.3 V devices can span distances up to 2 km and feature line monitoring capability.  The Small Form Factor packaging makes the devices 50% more compact than current SC-duplex transceivers, enabling a doubling of port densities.  http://www.infineon.com/news/press/008_086e.htm
Infineon, August 14, 2000