NGN2000: SUPER CARRIER STRATEGIES…
The past year has been “interesting, fascinating and not for the faint of heart,” said Liz Fetter, President and CEO of NorthPoint Communications.  Speaking at the Next Generation Networks (NGN2000) conference, Fetter described how the year began with a flash of optimism for the broadband rush.  DSL providers, including NorthPoint, couldn’t spend money fast enough to get their networks deployed.  And now, in November, the road is “littered with companies” forced to change their business plans or leadership because of dashed expectations.  Still, Fetter said the poor showing on Wall Street simply accelerates the inevitable shakeout coming to this segment.  Perhaps only 3 or 4 carriers per market can be sustained as broadband service providers.  NorthPoint has already entered a strategic alliance with Verizon under which it will handle the company’s DSL business.   Progress in negotiating line sharing rights will allow the company to achieve cost parity with incumbents. Because there is “no magic bullet that only DSL can provide,” Fetter said NorthPoint would move aggressively to integrate VoDSL, VoIP and other value-added services, such as outsourced software and content.

Robert Azzi, Vice President of Engineering for Sprint, said his company has the stamina and staying power to win the race.  The key element of its strategy is to balance current services with new offerings, while deploying a network architecture to support converged services.  Azzi emphasized the importance of interoperability and platform maturity for managing its multivendor networks, as well as the need to build tight integration with back office systems and customer support.

 “The Bandwidth Big Bang!” is ready to explode, said Matt Bross, SVP & CTO of Williams Communications.  He argues that as the cost of delivering each bit of data decreases and approaches zero, the demand for bandwidth expands to infinity… "and beyond!"  Williams’ data indicates that this price elasticity can already be measured:  for every 1% decrease in cost, there is a 3% increase in demand.  Bross’ mission is to ensure that there is no gap between what is technologically possible and what Williams can actually deliver.  To ensure that its technology is cutting edge, Williams has borrowed the farm system model from Major League Baseball to scout out the best talent and technology from hundreds of networking vendors.  Its network lab looks for “disruptive technologies” capable of 10X improvements in service velocity, cost to build and cost to own.
November 1, 2000

NGN2000 KEYNOTE: EXCITE@HOME’S GEORGE BELL ON THE FUTURE OF BROADBAND PORTALS
Broadband cable modem surfers consume two orders of magnitude more bandwidth than ordinary dial-up Internet users, said George Bell, Chairman and CEO of Excite@Home.  Peak traffic loads on the company’s backbone now reach 7 Gbps, even though more than 50% of traffic is cached and so never reaches the backbone.  Apart from the burgeoning traffic, Bell observed that broadband usage changes the way consumers view and interact with the network.  Instead of focusing on the functionality of the service, people latch on to content.  Over time, he expects consumers will develop little awareness or loyalty to their broadband network.  But the company expects that by integrating and optimizing content for broadband it will be able to retain its audience on the Excite@Home service.  By pursuing a media-centric model, Excite@Home will extend its portal to other forms of access.  He expects cable modems will maintain their market lead over DSL for the next two years – then it’s anybody’s guess as to what last mile technology will prevail.
November 1, 2000

WORLDCOM LOWERS FORECASTS, CONFIRMS SPLIT INTO TWO TRACKING STOCKS
WorldCom lowered its forecast for Q4 and 2001 profit and revenue growth, citing intense pricing, the shift of consumer voice to wireless technologies, and increased spending to support growth initiatives.  The company expects revenues from voice services to decline 5-7% in Q4 and 6-8% in 2001.  Revenues from dedicated Internet services are projected to grow 40-50% for both the Q4 and 2001. WorldCom also confirmed that it will create two tracking stocks that reflect its different businesses.  The new WorldCom will include data, Internet, hosting international, wireless, and business voice businesses.  MCI will be made up of the consumer, small business, wholesale long-distance voice and dial-up Internet operations. http://www.wcom.com
WorldCom, November 1, 2000

AT&T BROADBAND LAUNCHES CABLE ISP CHOICE TRIAL
AT&T Broadband launched a technical trial that enables customers a choice of ISPs for high-speed, cable Internet service over its hybrid fiber-coaxial network.  ISPs participating in the trial include Excite@Home (currently the exclusive provider for the AT&T service), EarthLink, Juno, WorldNet, FriendlyWorks, RMI.net, Winfire and Flashcom.  Customers will be able to choose one or more ISPs, specify connection speeds and adjust connection speeds.  The trial is being conducted in Boulder, Colorado.   http://www.att.com/press/item/0,1354,3435,00.html
AT&T, November 1, 2000

COVAD’S CEO RESIGNS
Covad Communications announced the resignation of Robert E. Knowling as Chairman, CEO and President. The company named Frank Marshall as the company's interim CEO, and Charles McMinn as Chairman of the Board of Directors.  McMinn is a founder of Covad.  He previously served as CEO from 1996-1998, and Chairman from 1997-1999, until Knowling assumed those positions.  Covad is initiating a search for a permanent CEO. http://www.covad.com/companyinfo/pressreleases/pr_2000/110100_press.shtml
Covad, November 1, 2000

• Covad Communications recently noted in its third quarter financial report that it was having difficulty collecting revenue from some of its ISP channel partners, and as a result recorded $11.4 million (15%) less in revenue than it billed.  It also reported a 49% increase in subscriber lines.
• Covad’s stock price has fallen from a high of $66.67 in March to a low of $3.41 on October 18.  It closed at just under $6 on November 1.

IBM TO MANUFACTURE EZ CHIP’S 10 GBPS NETWORK PROCESSORS, ACQUIRES 5% STAKE
IBM will manufacture EZchip Technologies’ forthcoming 10 Gbps network processor using its new 0.13-micron ASIC template - the first of its kind to offer combined benefits of copper wiring and low-k dielectric insulation. As part of the agreement, IBM will acquire a 5% equity stake in the company.  EZ Chip’s network processors are being designed for 7-layer packet processing at 10 Gbps and up.  The company is a subsidiary of LanOptics and is based in Israel.  http://www.ezchip.com/
EZ Chip, November 1, 2000

• EZchip's recently closed $22 million in second round financing led by JK&B Capital and Goldman Sachs.

CHORUM TECHNOLOGIES FILES FOR IPO
Chorum Technologies, a start-up based in Richardson, Texas, filed SEC papers for a proposed IPO.  The company is developing a line of high performance optical components. http://www.chorumtech.com
Chorum Technologies, November 1, 2000

• Chorum has announced three optical devices based on liquid-crystal technologies:  a non-mechanical, all-optical, Fast Add/Drop switch; an optical switch designed for optical restoration, protection, test, and provisioning applications; and a voltage-controlled solid-state optical variable attenuator for broadband or single-channel applications.  The company is also developing "Optical Slicers", which are ultra dense optical interleave filters for use in either long-haul or metro networks. Chorum’s DWDM router components, which will use the Optical Slicers, are being designed for passive optical multiplexing and demultiplexing systems that support hundreds of channels at data rates of 10 Gbps and higher.   

SHAW VENTURES INVESTS IN TERAWAVE COMMUNICATIONS
Shaw Ventures Inc., the investment division of Shaw Communications, has made an investment of an undisclosed amount in Terawave Communications.  Terawave develops Passive Optical Network (PON) and DWDM solutions for optical access and intra-facility networks.
http://www.shaw.ca  http://www.terawave.com
Terawave, November 1, 2000

VOCALDATA NETS $32 MILLION IN FUNDING FOR ITS SOFTSWITCH
VocalData, a start-up based in Austin, Texas, raised $32 million in equity financing for its development of service delivery softswitches and enhanced services platforms.  Investors include Austin Ventures, Trinity Ventures, SAIC, Chase Capital, Seed Capital Partners, Capital Southwest Corporation and Hickory Ventures.   http://www.vocaldata.com
VocalData, November 1, 2000

• Last month, VocalData announced a contract to supply its VOISS suite to Intermedia Communications. 

YAFO NETWORKS NAMES PAUL J. FINKE CEO
YAFO Networks, a start-up developing polarization mode dispersion compensators (PMDC), named Paul J. Finke as president and CEO.  Finke most recently served as CEO of Entropic, a provider of software tools for speech engineers, which was acquired by Microsoft.  Before that, he led the IP services division at Bay Networks.  The company is based in Hanover, Maryland. 
 http://www.yafonet.com/pages/pr/press8.html
YAFO Networks, November 1, 2000

• YAFO’s polarization mode dispersion compensators (PMDC) are being designed to minimize distortion of optical signals caused by asymmetries in fiber. The technology could be used in metro and long haul fiber networks operating at 10 Gbps and 40 Gbps.  The company has raised $40 million in two rounds of venture financing. Investors include: ADC Ventures, Boulder Ventures, MCI WorldCom Venture Fund, Mellon Ventures Inc., New Enterprise Associates, U.S. Venture Partners, and Wheatley Partners. 

SONY ANNOUNCES 5.25-INCH DISK WITH 40 GB OF STORAGE
Sony announced a 5.25-inch Ultra Density Optical (UDO) format recordable storage disk with 40 GB of capacity.  Product introduction is expected in late 2002. The technology, which is being positioned as a successor to the Magneto-Optical (MO) disk, uses a violet laser at a 405nm wavelength and a land-groove recording system. Sony said further R&D could increase the format’s recording capacity to 80 GB and 120 GB.
Sony, November 1, 2000