AT&T CONFIRMS BREAK-UP INTO 4 COMPANIES
AT&T confirmed plans to split into four separate companies, each operating under the "AT&T" brand and continuing to bundle each other’s services through inter-company agreements.  AT&T said strong price competition and customers shifting to wireless and Internet technologies had rapidly accelerated across the industry, contributing to the anticipated declines in voice long distance revenue.  The break-up is intended to give greater visibility to the market value of each of AT&T’s individual businesses and free them to be more responsive to their specific markets. The new companies will be:

AT&T Business, which provides enterprise communications and networking and is the company's principal unit. It will be the legal owner of the AT&T brand, which it will license to the other companies. It will also be the parent company of the AT&T Consumer business and will continue to hold a 50% interest in Concert, its international joint venture with BT.  Data and IP services, which now account for about one-third of the unit's revenue, are growing at 20% per year.  However, long distance voice revenue continues to decline. In Q3, the voice revenue decline was in the mid-single digits. As a result, total revenue grew at 2.5% in Q3. The company said it expects a similar trend in the fourth quarter and similar growth rates in 2001.

AT&T Consumer, which will consist of the company's existing residential long distance and WorldNet Internet access businesses.  AT&T Consumer would explore new growth opportunities by investing a portion of its cash flow into technologies such as DSL to provide "any distance" broadband communications and Internet services.  The company posted over $19 billion in revenue over the last 12 months. A separate tracking stock for the unit will be created.

AT&T Wireless, which serves 12.6 million mobile telephone subscribers.  The group had revenue of $9.6 billion over the last 12 months and is expected to achieve 30 to 35% annual revenue growth, and subscriber growth greater than 40%.

AT&T Broadband, which is the country’s leading cable provider and includes multi-channel video, pay-TV, cable Internet access and communications.  It will assume AT&T’s ownership interest in Excite@Home in connection with its public offering. Revenue for the Broadband unit during Q1 grew at 8.2%, at 10.5% during Q2, and at 10.8% during Q3. 
http://www.att.com/press/item/0,1354,3420,00.html
AT&T, October 25, 2000

ITXC POSTS 270 MILLION MINUTES OF INTERNET TELEPHONY TRAFFIC IN Q3, UP 34% OVER Q2
ITXC carried 270 million minutes of traffic over its Internet telephony backbone in Q3, a 34% increase over the 201 million minutes carried during Q2 and 500% over the same quarter last year.  ITXC had its first 100 million minute plus month in September and its first day over five million minutes on the first Sunday in October. ITXC.net now encompasses 309 POPs in 168 cities and 74 countries.  http://www.itxc.com/press/index.html
ITXC, October 25, 2000

• In July, ITXC acquired effusion, a developer of voice-enabled applications, including "Push to Talk", "ecalling" (follow-me call forwarding via the Net), and "Suite Adeline" (Internet call waiting, voice mail, and follow-me services as part of PC-based call management).  ITXC plans to integrate the eFusion applications into its wholesale services for its carrier, ISP and portal site customers. 

EXCITE@HOME REACHES 2.3 MILLION CABLE MODEM SUBSCRIBERS, PEAK BACKBONE TRAFFIC APPROACHES 7.0 GBPS
As of September 30, Excite@Home reported 2,313,000 broadband subscribers in North America, up 28% from approximately 1,803,000 at June 30, 2000. Total subscribers increased 174% from 843,000 at September 30, 1999. Penetration in Excite@Home's North American markets reached 7.1% of upgraded homes, up from 6.2% at June 30, 2000 and 4.0% a year ago. Global penetration was 6.6% of the 35 million upgraded homes at September 30.  International figures include subscriber services provided through the joint ventures in @Home Japan, Excite@Home Australia and @Home Benelux.  Excite@Home also noted growing traffic demands on its North American backbone.  Peak downstream traffic levels reached nearly 7 Gbps in September. This backbone traffic represents less than half of all traffic generated by Excite@Home's broadband subscribers, as the majority of broadband traffic is contained within Excite@Home's regional networks through the use of caching and distributed content feeds.  http://www.home.com
Excite@Home, October 24, 2000

• In July, Excite@Home announced that it plans to merge its international operations with chello broadband, a subsidiary of United Pan-Europe Communications (UPC).

ROAD RUNNER REACHES 1.1 MILLION CABLE MODEM USERS
As of September 30, Road Runner was serving 1.1 million cable modem users, up by 220,000 new customers during Q3.  Road Runner's service passes a total of 19.5 million homes across the US.   http://www.roadrunner.com/rdrun/
Road Runner, October 13, 2000

• Road Runner is a joint venture of Time Warner, AT&T, Microsoft, Compaq and Advance/Newhouse.

INFINIBAND  V1.0 RELEASED – DELIVERS HIGH-PERFORMANCE SWITCHED SERVER I/O
Version 1.0 of the InfiniBand Architecture Specification was officially released by The InfiniBand Trade Association.  InfiniBand is a switched fabric server I/O architecture being developed for high-end servers and web servers to address imbalances in CPU and I/O performance.  The new architecture promises better performance, greater reliability, availability and scalability for server I/O subsystems, thereby enabling the next wave of Internet data centers.  Copies of the specification may be purchased through the InfiniBand Trade Association Web site via download for $19.95.  http://www.infinibandta.org
The InfiniBand Trade Association, October 25, 2000

• The specification will provide a scalable performance range of 500 MBytes/s to 6 GBytes/s per link with a consistent 2.5 GBytes/s signaling rate.  InfiniBand evolves the load-and-store-based communications methods used by shared local bus I/O to a message passing approach. The technology could be used to connect servers with remote storage and networking devices, and other servers. It will also be used inside servers for inter-processor communication (IPC) in parallel clusters.
  

• The InfiniBand Trade Association was created by Compaq, Dell, Hewlett-Packard, IBM, Intel, Microsoft and Sun Microsystems to develop a new common I/O specification to deliver a channel based, switched fabric technology.  Over 160 companies are now members of The InfiniBand Trade Association.

BANDERACOM INTRODUCES INFINIBAND CHIPS
Banderacom, a start-up based in Austin, Texas, unveiled its plans for a range of InfiniBand chips.  The core of Banderacom 's IBandit architecture is a protocol agnostic, wire-speed transaction switch. Additional components include an InfiniBand Media Access Controller (MAC), a Protocol Engine for accelerating transport functions, and a PCI/PCI-X bus.  The design will support interfaces to SCSI, Fibre Channel, Gigabit Ethernet and other devices.  http://www.banderacom.com/
Banderacom, October 25, 2000

• Banderacom was founded in November 1999 by Chris Pettey, Clayton Newman, Art Arzipe, and Larry Rubin, all senior members of the technical staff at Jato Technologies, a networking silicon start-up acquired by Intel. Rick Pekkala, another one of the co-founders, formerly was a senior engineer at Motorola.

STORM TELECOMMUNICATIONS LEASES EUROPEAN FIBER FROM MFN
Storm Telecommunications, a new carrier planning last-mile optically switched services, will lease fiber-optic infrastructure from Metromedia Fiber Network (MFN) in key European cities.  The deal is valued at more than $13 million.  http://www.mmfn.com
http://www.stormtel.com
MFN, October 25, 2000

• Storm Telecommunications has previously announced a long-term, US$100 million dark fiber lease with Telia, giving it access to substantial fiber across Scandinavia and the rest of Europe.
  

• Storm Telecommunications is using Sycamore Networks’ optical switches to offer re-routable optical services for ISPs, as well as TV and cable broadcasters.  The optical switches are being installed in a mesh configuration across Storm's network in the UK, Belgium, Holland, France, Germany, Italy, Austria, Switzerland, Sweden, Norway, Denmark, Finland and the US.  
  

• Storm Telecommunications was originally founded in 1998 by 3 shareholders: Telenor AS of Norway, IXC Communications, Inc. and Clarion Resources Communications. Storm recently announced the management buyout of the UK-based carrier from its founding shareholders using investments from Soros Private Equity Partners. http://www.stormtel.com

TELIA SIGNS US APPLICATION INFRASTRUCTURE PROVIDER IN $89 MILLION DEAL
Telia International Carrier signed an $89 million, 20-year capacity contract on its US fiber backbone with an application infrastructure provider.  The deal with the unnamed company provides for a 2.5-Gbps wavelength, related colocation services and six 155 Mbps IP interconnections across the US.  http://www.telia-na.com
Telia International Carrier, October 25, 2000

• Telia has previously announced fiber swaps with 360networks giving it fiber coverage spanning 14,000 km (8,700 miles) throughout North America, and equipment hubs in New York, Atlanta, Dallas, Los Angeles, Chicago and Boston.  Telia has also announced a major swap with Williams Communications. The carriers will also exchange co-location space and ongoing network maintenance services.  The company is deploying Lucent Technologies' 400 Gbps DWDM in its US network.

KYMATA HIRES LUCENT EXEC FOR OPTICAL COMPONENT SALES
Kymata, a designer and manufacturer of planar optical components and subsystems, named David Plekenpol as Kymata's Vice President of Global Sales and Marketing.  Plekenpol previously served as Lucent Technologies' Vice President of Product Marketing for the Optical Networking Group, based in The Netherlands.
http://www.kymata.com/
Kymata, October 25, 2000

VXTEL SECURES $62 MILLION FOR ITS VOICE/PACKET SILICON
VxTel, a start-up based in Fremont, California, raised $62 million in private equity financing, bringing total funding to more than $75 million.  The company is developing silicon solutions for broadband communications, especially voice-over-packet, voice-over-DSL, voice-over-cable, and voice-over-wireless.  Corporate investors include ADC Ventures, AMCC, Clarent Corp., Intel Communications Fund, Juniper Networks, Mitsui Comtek Corp., Tellabs, UTStarcom Inc., Virata and Vitesse.  Additional investors include Sequoia Capital, Telesoft Partners, Raza Ventures, Bowman Capital Management, Capital Research and Management Company, Essex Investment Management Co., Robertson Stephens' Bayview 2000 L.P., and U.S. Bancorp Piper Jaffray.  http://www.vxtel.com
VxTel, October 25, 2000

• VxTel is headed by Mr. Shri Dodani , who previously served as Vice President of Engineering with Carrier Access Corporation.  Its technical team is led by Dr. Kumar Ganapathy, who developed three generations of DSP architectures for Conexant, where he was an Engineering Fellow.  The company was founded in March 1999.

LIQUIDLIGHT RAISES $9 MILLION FOR ITS OPTICAL EDGE PLANS
LiquidLight, a start-up based in Duluth, Georgia, raised $9 million from Battery Ventures for its development of an IP-to-Optical convergence platform.  Product plans have not yet been disclosed.   LiquidLight was founded in Spring 2000 by TC Nie and Scott Hardin.  http://www.liquidlightinc.com
LiquidLight, October 25, 2000

WATERCOVE NETWORKS GARNERS $10 MILLION FOR MOBILE WIRELESS DATA NETWORKS
WaterCove Networks, a start-up based in Burlington, Mass., raised $10 million for its development of equipment for mobile wireless data networks.  The company plans to combine a service-aware intelligent system with data networking transport.  The platform would enable wireless service providers to rapidly deploy mobile IP applications and services on a massive scale by simplifying service creation, enabling data roaming, and scaling network performance.  Investors include Charles River Ventures, Bessemer Ventures and inOvate Communications Group.   http://www.watercove.com
WaterCove Networks, October 25, 2000

• WaterCove Networks is led by Peter Lojko, previously VP and General Manager of Excel Switching, developers of programmable voice switches.  Lucent acquire Excel Switching in August 1999 for $1.7 billion in stock.