1. CIENA Acquires Cyras for for its Data-Optimized SONET System
2. The ODSI Coalition Demonstrates its "Optical Dialtone”
3. 360networks Wins Long-Term Agreement with Deutsche Telekom
4. CoreExpress to Purchase $100 Million in Sycamore SN 16000 Switches 
5. Telocity Tests “Broadband Home Theater” from Villa Montage  

6. NTT DoCoMo, HP Announce Joint 4G Multimedia Research Effort  

7. Intersil and Sony Develop New WLAN Protocol For Audio and Video Streaming  
8. Quantum Bridge Files For IPO
Holiday Publishing Schedule: Converge! Network Digest will not be published from December 21st to January 3. Happy Holidays!

CIENA ACQUIRES CYRAS FOR ITS DATA-OPTIMIZED SONET SYSTEM
CIENA has agreed to acquire Cyras Systems, a start-up based in Fremont, California, for $2.6 billion in stock (27 million CIENA shares).  Cyras is developing a data-optimized SONET transport and switching platform that is designed to incorporate the functionality of digital cross-connects, SONET Add/Drop Multiplexers, ATM service access multiplexers and switches, Frame Relay access switches, DSLAMs, DWDM wavelength adapters and MPLS switches in a single network element.  The Cyras K2 platform has been shipped to four customers for trial thus far. Commercial availability is expected in the first half of 2001.  CIENA said that the acquisition will expand its solutions from the core of the network to the network edge.  Following completion of the transaction, Cyras will become a new CIENA division focusing on multi-service access and switching.  The division will be headed by Cyras founder, CEO and president Alnoor Shivji.  http://www.ciena.com/news/archive/2000/12/12.19.2000.html  http://cyras.com/ 
Ciena, December 19, 2000

  • Cyras' Trans-Metro Optical platform grooms traffic efficiently from metro access points onto SONET core networks while preserving native traffic protocols (TDM, ATM, Frame Relay, IP, Ethernet, xDSL).  The platform uses high-density cross-connect ASICs for backplane support up to 480 Gbps of traffic.  The design offers granularity from fractional DS-1 to multiple OC-192s.
  • Since its founding in July 1998, Cyras has raised a total of $220 million, including $70 million in three rounds of venture funding and $150 million in convertible subordinated debt in August 2000.
  • Cyras founders Alnoor Shivji, Rafat Pirzada and Sunil Tomar were co-founders of Fiberlane (Cerent).
  • Cyras represents CIENA’s sixth acquisition.  The company’s two largest acquisitions were of Lightera Networks for $552 million and Omnia Communications for $429 million, both in March 1999.  In June 1998 CIENA and Tellabs agreed to a $7.1 billion merge, which they mutually called off three months later.

THE ODSI COALITION DEMONSTRATES ITS "OPTICAL DIALTONE"
The Optical Domain Service Interconnect (ODSI) coalition completed the first round of vendor interoperability testing of its "optical dialtone" protocol specification between various IP and optical devices.  The ODSI specification is an electrical-optical interface protocol designed to leverage native intelligence at both the IP and optical layers of the public network. The goal is to enable electrically-based network devices such as IP routers, ATM switches and metro transport devices to interoperate with a dynamic optical core.  The interoperability testing, which was conducted at Valiant Networks' facilities in San Jose, California using Agilent Technologies’ Optical Control Plane Analysis Software, tested equipment from Alcatel, Équipe Communications, Redback Networks, Sycamore Networks and Tenor Networks.  The ODSI coalition plans to hand off its work to established standard setting bodies such as the OIF, IETF, ITU and T1/X1.  Its next meeting is scheduled for January 23, 2001 in Orlando, Florida. http://www.odsi-coalition.com/
ODSI Coalition, December 19, 2000

360NETWORKS WINS LONG-TERM AGREEMENT WITH DEUTSCHE TELEKOM
360networks announced a network services agreement with Deutsche Telekom for broadband capacity, dark fiber, colocation and maintenance services.  The contract’s value is estimated at $230 million. 360networks will provide Deutsche Telekom with multiple 2.5 Gbps wavelengths throughout its North American network, and Deutsche Telekom will be able to acquire dark fiber, collocation, and equipment maintenance services from 360networks for 20 years.  The North American network will connect with Deutsche Telekom’s network in 40 countries.  http://www.360.net/News---Releases---Details.asp?ID=101 
360networks, December 19, 2000

COREEXPRESS TO PURCHASE $100 MILLION IN SYCAMORE SN 16000 SWITCHES
CoreExpress will purchase up to $100 million in Sycamore SN 16000 intelligent optical switches for its CoreExpress Extranet, which promises a new model for transferring traffic between ISPs with guaranteed performance based on financial incentives.  Sycamore will provide CoreExpress with financing for the purchase.  The CoreExpress Internet Data Exchange System (iDESSM), the platform for the CoreExpress Extranet service, will consist of a 22,000-mile, fully-redundant, OC-192, fiber optic network utilizing DWDM and MPLS.  http://www.coreexpress.net/  http://www.sycamorenet.com
Sycamore, December 19, 2000

  • CoreExpress has previously announced contracts with Juniper Networks for M20 Internet backbone routers, and Nortel Networks for its 10 Gbps OPTera Long Haul 1600 Optical Line System and DWDM platform.

  • CoreExpress has raised $573 million in venture funding from Benchmark Capital, Morgan Stanley Dean Witter, Nortel Networks, Cisco Capital, Amerindo Investment, Bowman Capital, Capital Research and Management Company, Octane Capital, and Technology Crossover Ventures (TCV). 
  • CoreExpress is headed by Michael Gaddis, former CTO of SAVVIS Communications.  The company is based in St. Louis, MO and Herndon, VA. 
  • CoreExpress aims to change the fundamental business model of how ISPs exchange traffic.  Currently, ISPs exchange customer traffic as close as possible to the sender on the originating ISP, and the terminating ISP carries the data the majority of the distance to its destination.  CoreExpress’ proprietary Internet Data Exchange System (iDES) offers financial incentives for ISPs to deliver each other's customer traffic with a guaranteed high level of quality. 

TELOCITY TESTS “BROADBAND HOME THEATER” FROM VILLA MONTAGE
Villa Montage, a start-up based in Santa Clara, California, announced a pilot trial of its "Broadband Home Theater" technology over Telocity’s residential DSL network.  Villa Montage uses a combination of video over IP, multipoint distribution, local caching and streaming to offset bottleneck issues.   The video is downloaded directly to a residential gateway (not through a customer's computer) for viewing over a regular TV.  The application can support extremely high-resolution video, including DVD and HDTV resolutions, as well as full VCR functionality (pause, rewind and fast forward). Villa Montage will also provide digital rights enforcement technology to reduce the risk of piracy.
http://www.villamontage.com  http://www.telocity.net
Villa Montage, December 18, 2000

  • Telocity offers residential DSL service in more 1,500 cities in 35 states.  As of September 30, 2000 the company had 23,494 subscribers.
  • The Villa Montage platform is a technology agnostic architecture, which works over any "always on" broadband connection, including DSL, MMDS, and cable.
  • Villa Montage Systems was founded in the fall of 1999 by Tony Clark, former vice president of strategic planning for Bay Networks and Nortel Networks.  Villa Montage Chairman Dave House previously headed Intel’s Microcomputer Group, and was CEO of Bay Networks and president of Nortel.

NTT DOCOMO, HP ANNOUNCE JOINT 4G MULTIMEDIA RESEARCH EFFORT 
NTT DoCoMo, Inc. and Hewlett-Packard announced a joint research effort to improve multimedia delivery and network applications over fourth-generation (4G) wireless broadband networks.  The companies hope to offer high performance multimedia streaming to mobile users with their “MOTO-Media” architecture, which will be based on agent technology, optimal use of network resources and scalable media coding methods.  DoCoMo and HP aim to finish their shared study of basic technology by 2003.  http://www.nttdocomo.com/top.shtml  http://www.hp.com
NTT DoCoMo, December 19, 2000

  • NTT DoCoMo has over 33 million subscribers.

INTERSIL AND SONY DEVELOP NEW WLAN PROTOCOL FOR AUDIO AND VIDEO STREAMING 
Intersil announced the development of Point Coordination Function (PCF) technology for its PRISM WLAN chip set.  Intersil and Sony collaborated on the development of the PCF technology.  When used in conjunction with a Sony-developed communication protocol, PCF technology allows fast, wireless streaming of high-quality audio and video content over IEEE 802.11b wireless networks.  The first use of the technology is in Sony’s new "airboard" personal IT television for the Japanese market, which provides Internet access and video viewing from a single, portable LCD monitor from anywhere in the home.  The 11 Mbps wireless Ethernet PRISM chip set with PCF and Sony communication protocol allows the product to operate to the IEEE's 802.11b standard.  http://www.intersil.com/
Intersil, December 19, 2000

  • Inersil announced that PRISM WLAN chips have been incorporated in over 100 product designs by fifty companies, including Alcatel, Cisco, Compaq, 3Com, Dell, Nokia, Nortel, Samsung, Siemens and Sony.

QUANTUM BRIDGE FILES FOR IPO
Quantum Bridge, a start-up developing an optical access system, filed Securities and Exchange Commission (SEC) papers for an initial public offering.  Morgan Stanley Dean Witter is acting as lead manager for the offering with J.P. Morgan & Co., Lazard, Robertson Stephens, and UBS Warburg LLC acting as co-managers.  http://www.quantumbridge.com/
Quantum Bridge, December 19, 2000

  • Quantum Bridge’s system consists of a central office Optical Access Switch and a customer premise Intelligent Optical Terminal (IOT).  The architecture uses a Dynamic Wavelength Slicing (DWS) protocol to share a single wavelength delivering broadband services among multiple end-points.  Quantum Bridge’s IOT initially supports 10/100BaseTx Ethernet and TDM, ATM and Frame Relay DS1 (T1) service interfaces.  Its Optical Access Switch, which is located in a central office, service node or head-end, can aggregate services from hundreds of downstream IOTs. The switch is equipped with a standard OC-12c WAN interface and a redundant 5 Gbps (upgradeable to 20 Gbps) IP and ATM switching fabric.  By eliminating electrical components in the outside plant with PON technology, Quantum Bridge expects to significantly lower the cost of first mile fiber access.  The company is based in North Andover, MA.
  • In October, Comcast Telecommunications awarded a multi-year, multi-city contract to Quantum Bridge for its Optical Access System.

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