WORLDCOM TO ACQUIRE INTERMEDIA/DIGEX, EXPAND WEB HOSTING SERVICES
WorldCom confirmed reports that it will acquire Intermedia and its controlling interest in Digex for approximately $6 billion ($3 billion in equity and $3 billion in debt and preferred stock).  WorldCom said the transaction would give it 55% of Digex's equity interest and 94% of Digex's voting interest, enabling it to combine Digex's Web hosting solutions with its own facilities-based network and customer relationships.  http://www.intermedia.com  http://www.digex.com
http://www.wcom.com/about_the_company/press_releases/display.phtml?cr/20000905
WorldCom, September 5, 2000

• Intermedia operates one of the largest Frame Relay network in the US, with more than 164 data switches in operation.  Its network uses Lucent/Ascend/Cascade ATM switches.  Intermedia has also begun deploying packet telephony from Sonus Networks, enabling it to handle wholesale, IP-based long distance traffic from international carriers. 
  
• As of July 31, Digex had 673 corporate customers and 3,647 managed servers in operation, with average monthly revenue per server at $3,780.  Digex is a Cisco-Powered Network Application Infrastructure Provider.

IBM LEASES INTERNET HOSTING FACILITIES FROM AT&T IN $450 MILLION DEAL
IBM agreed to lease up to several hundred thousand square feet of Internet hosting facilities in AT&T’s Internet Data Centers for providing corporate Web hosting solutions.  The $450 million agreement calls for IBM to begin operations by the end of this year at AT&T’s Internet Data Centers in the New York, Chicago, and Phoenix.  IBM is expected to enter six additional AT&T centers by the third quarter of 2001.  AT&T also agreed to incorporate IBM’s Netfinity 4000R Web servers into its new streaming media hosting solution, which also includes the Linux operating system, and RealServer Plus streaming media software from Real Networks.  http://www.att.com/press/item/0,1354,3259,00.html
AT&T, September 5, 2000

NETWORK TELEPHONE RAISES $256 MILLION FOR ITS VODSL ROLLOUT
Network Telephone, a facilities-based integrated communications provider based in Florida, raised $256 million in financing facilitated by Lehman Brothers.  The financing, which includes $156 million in equity and $100 million in a senior secured bank line, will be used for Network Telephone's infrastructure rollout in Florida and eight other southern states.  Major investors include Brown Brothers Harriman & Co., Desai Capital Management, Wind Point Partners, Lehman Brothers and Spectrum Equity Investors.  http://www.networktelephone.net/
Network Telephone, September 5, 2000

• Network Telephone is using Copper Mountain's DSL concentrators and integrated access devices (IADs), which include support for media gateway control protocol (MGCP).  Lucent's PathStar access server is used to deliver CLASS 5 features, including Caller ID and Call Waiting over DSL.  Network Telephone began carrying its first commercial VoDSL traffic last month.

VERIZON CUTS CONSUMER DSL PRICES TO $39.95 PER MONTH
Verizon reduced its consumer DSL prices in the Midwest, Southeast and West Coast to $39.95 per month, a 20% reduction over the previous $49.95 monthly charge.  . It offers connection speeds of up to 768 Kbps downstream and up to 128 Kbps upstream.  Verizon Online is also offering a free DSL modem for 12-month service contracts.  http://www.verizon.com
Verizon, September 5, 2000

360NETWORKS EXTENDS REACH IN SOUTH AMERICA WITH IMPSAT
360networks will extend its reach in South America by acquiring more than 4,600 km of dark fiber strands and lit capacity in Brazil and Argentina from Impsat Fiber Networks.  The $132 million deal includes metro fiber facilities in Rio de Janeiro.  360networks will also obtain data center space from Impsat for about $122 million over 25 years.  In return, Impsat agreed to purchase capacity on 360networks's undersea network between the US and South America for about $46 million. http://www.360.net
360networks, September 5, 2000

• 360networks is currently building a 28,000 km undersea cable system that will connect the US, Bermuda, Brazil, Argentina and Venezuela.

GILAT PREPARES TO LAUNCH ITS TWO-WAY SATELLITE INTERNET SERVICE
Gilat-To-Home signed a lease for 14 Ku-band transponders on Loral Skynet's Telstar 7 satellite, which it will use for a consumer, two-way, satellite Internet access service.  The Telstar 7 satellite, located at 129 degrees West Longitude, provides coverage of the continental US, as well as Alaska and Hawaii.    The first phase of a nationwide field trials with thousands of users has now been completed.  The venture is backed by Gilat Satellite Networks Ltd., Microsoft, EchoStar Communications and ING Furman Selz Investments.  http://www.gilat2home.com
GTH, September 5, 2000

• Gilat-To-Home two-way satellite service will use a very small aperture terminal (VSAT) with a .75-meter elliptical dish that includes both a transmitter and receiver, as well as Gilat proprietary electronics and software.  At the initial market entry price, the service will likely provide a maximum 400 kbps down/56 kbps return, with an always-on connection.  The GTH system can also be configured to receive satellite television service from DISH Network.
  
• Last week, Gilat-To-Home named David Trachtenberg as its new President and Chief Marketing Officer.  Trachtenberg most recently was a member of the executive management team at Prodigy

GEYSER NETWORKS SHOWS ITS FLEXBAND, METRO OPTICAL PLATFORM
At last week's National Fiber Optics Engineers Conference (NFOEC) meeting in Denver, Geyser Networks showed its Optical Service Manager platform designed for optimizing SONET in metro networks.  Geyser is developing a FlexBand technology that would allow service providers to over-subscribe network bandwidth by creating subscriber Service Level Agreements based on parameters such as guaranteed bandwidth, peak bandwidth, minimum bandwidth and other priorities.  Key elements of the forthcoming Geyser OSM 4800 platform will include a DWDM - MPLS Router Multiplexer, an Ethernet switch, an ATM switch, a digital crossconnect, a SONET Add/Drop Relay Aggregator (ADM) Multiplexer, and QoS aware IP router Device.  Geyser said its box would be capable of delivering TDM services, all existing data services (ATM, Frame Relay, Packet-Over-SONET, Transparent LAN service), and streaming audio and video over IP.  It also plans to support managed SLA-based IP/Ethernet services and MPEG-II video services.  http://www.geysernetworks.com 
Geyser Networks, September 5, 2000

• Geyser Networks was founded in April 1999 by Wu-Fu Chen and Gordon Lee.  Investors include Sequoia Capital, Crimson Ventures, VantagePoint Venture Partners, Boston Millennia Partners, Vertex Management, and Access Technology Partners.

TELLIUM SHIPS ITS AURORA OPTICAL SWITCH TO EXTANCT/DYNERGY
Tellium announced commercial shipment of its second-generation Aurora Optical Switch to Extant, Inc., a facilities-based company providing carrier transport, OSS Interconnect and clearinghouse solutions.  The Tellium optical crossconnect supports up to 512 OC-48 connections.  Support for OC-192 connections is expected this fall.  Tellium's Operating System uses IP signaling protocols to bring Layer 3 control to its optical core, enabling the switch to interoperate with ATM switches and IP routers.  http://www.tellium.com/aosship_main.html   http://www.extant.net
Tellium, September 5, 2000

• Dynegy Inc., one of the country's leading energy merchants, announced plans to enter the communications business by acquiring Extant for approximately $188 million.  Telstra will continue to hold a 20% equity stake in the new Dynegy Global Communications.  
  
• Tellium’s Aurora optical switch provides wavelength grooming and wavelength interchange, as well as optical restoration in the event of a fiber cut.  The Tellium platform allows service providers to cross-connect optical signals up to OC-48 while bypassing the SONET/DCS layer.  Tellium recently disclosed plans for larger optical cross connect with the capacity of 512 OC-48s -- a total switching capacity of 1.28 Tbps.   The platform features a fully redundant switch architecture with I/O port protection (1:N user programmable), dynamic wavelength management, optical line protection switching of less than 50 msec, SONET performance monitoring, optical ring restoration and optical mesh restoration software.  Tellium has also disclosed plans to couple of its open StarNet optical signaling protocol to Open Shortest Path First (OSPF) based routing and Multi-Protocol Label Switching (MPLS) based signaling.
   
• Last December, Lucent agreed to resell Tellium's optical switching products StarNet Restoration Software, and other software modules under a two-year OEM agreement. 

OSICOM TECHNOLOGIES TO BECOME SORRENTO NETWORKS
Osicom Technologies announced plans to give independent, public company status to Sorrento Networks, its largest subsidiary.  In an effort to minimize tax consequences to shareholders, the name of Osicom Technologies will be formally changed to Sorrento Networks, and shares of "new" Sorrento will trade on the Nasdaq National Market under the symbol SRTO.  http://www.sorrentonet.com  http://www.osicom.com
Sorrento Networks, September 5, 2000

• Sorrento Networks is developing an all-optical, end-to-end, metro optical architecture that will use IP intelligence at the optical layer to effectively control and manage the network. The product set encompasses access, transport, switching and management functions.

CIENA REPORTS REVENUE SHORTFALL DUE TO IAXIS REORGANIZATION
Ciena reported that up to $28.2 million in net accounts owed by iaxis Limited may not be collectible, due to the customer's financial difficulties.  iaxis represented approximately 13% of CIENA's net receivables as of July 31, 2000.  http://www.ciena.com/news/archive/2000/09/09.05.2000.html
Ciena, September 5, 2000

KYMATA SUPPLIES ITS OPTICAL COMPONENTS TO MARCONI
Kymata announced a multi-million dollar optical component order from Marconi Communications.  The Kymata components are being used in Marconi's SmartPhotoniX DWDM systems for long haul, regional and metropolitan networks.  Last month Marconi announced a $3B order for SmartPhotoniX from British Telecom for its UK optical network.  Telecom Italia is also using the SmartPhotoniX equipment between Rome, Florence and Bologna.  Kymata's portfolio includes Arrayed Waveguide Gratings, Variable Optical Attenuators, Thermo-Optic Switches, and Optical Wavelength Power Monitors.  http://www.kymata.com/News/press_releases/marconiorder.htm
Kymata, September 5, 2000

ALCATEL AND FUJITSU FINALIZE THEIR EVOLIUM JOINT VENTURE
Alcatel and Fujitsu formally launched Evolium SAS, a joint venture company that will develop 2G and 3G mobile technologies, including GSM and its various evolutions (GPRS and EDGE).  The company will focus initially on the development of a 3G/UMTS offering based on Fujitsu's experience acquired as supplier to NTT DoCoMo in Japan.  Products will be marketed via the existing Alcatel and Fujitsu sales networks.  Evolium, which is headquartered in Vélizy, near Paris, France, will be headed by Martin Jordy, currently Vice-President Product Management & Product Development of Alcatel Mobile Communications activity.  Eisuke Iwabuchi, General Manager of Fujitsu's Mobile Communications and Wireless Systems Division, will be the Deputy CEO.  http://www.alcatel.com/vpr/?body=/latestnews/04092000uk
Alcatel, September 5, 2000