GLOBAL CROSSING TO DEPLOY HITACHI'S DWDM
Global Crossing will deploy Hitachi's AMN 6100 Ultra-Long Haul DWDM system in more than 90 nodes throughout its North American Express Optronics Network Overbuild.  Hitachi's DWDM platform is capable of transporting up to 128-channels of 10 Gbps traffic, up to 512 OC-48 channels or 2,048 OC-12 channels.  The system can be configured for standard (up to 500km), Ultra Long Haul (ULH) (up to 1200km) and Super ULH (up to 8000km) applications within the same network on a span-by-span basis.  Global Crossing already has Hitachi's AMN 5192 4-Fiber BLSR and AMN 4100 Transmux systems installed in its network.  Financial terms were not disclosed.  http://www.hitel.com/WhatsNew/gx_dwdm_010801.htm
Hitachi Telecom, January 8, 2001

• Separately, Global Crossing issued a statement projecting strong revenue growth for 2001, including cash revenue of approximately $7.1 - $7.2 billion.  The company plans to maintain its previously announced plans to make capital expenditures of approximately $10 billion in the aggregate for 2000-2001. Revenue from commercial services is expected to be driven in large part by continued growth approximating 100% annually in data-services such as Frame Relay, ATM, IP and private line.   Data-service products sold to carriers are projected to exceed 100% annualized growth, with wholesale voice revenues expected to grow at about half that rate. Global Crossing has decided not to market retail consumer voice service or stand alone voice service (i.e., voice service not bundled with data-services) to commercial customers.
  http://www.globalcrossing.com/pressreleases/pr_010801.htm

BROADCOM TO ACQUIRE SERVERWORKS FOR SERVER I/O CHIPS
Broadcom agreed to acquire ServerWorks Corp., a privately-held supplier of server input/output (I/O) integrated circuits, for about $957 million.  ServerWorks' chips are widely used in web servers, data center servers, network attached storage (NAS), storage area networks (SANs), and high performance workstations.  Broadcom said the ServerWorks portfolio and engineering expertise would enable it to deploy wire-speed 10 Gbps topologies such as InfiniBand, Ethernet and Fibre Channel into server and storage platforms.  http://www.broadcom.com
Broadcom, January 8, 2001

Broadcom's Recent Acquisitions Click for Summary Target Key product Valuation Date   ServerWorks server input/output (I/O) integrated circuits $957 million Jan 01 VisionTech MPEG-2 compression chips 7.96 million shares Nov 00 SiByte network processors based on the MIPs architecture $2.04 billion Nov 00 Allayer Communications switch processors supporting 10 Gbps rates $275 million Oct 00 Element 14 DSL silicon $596 million (2.65 million shares) Oct 00 New Port Communications optical devices in CMOS, including OC-48 and OC-192 transceivers $1.4 billion Aug 00 Silicon Spice gateway processor featuring Any-Service-Any-Port (ASAP) flexibility over IP and ATM $1.2 billion Aug 00 Altima Communications ICs for low-cost 10/100 switches and hubs $533 million Jul 00 Innovent Systems Bluetooth transceivers implemented in CMOS $456 million Jun 00   Pivotal Technologies Visual Interface (DVI) transmitters and receivers for scalable radio frequency (RF) CMOS solutions $243 million May 00   Digital Furnace algorithms for boosting upstream transmission in HFC networks 664,735 shares Mar 00   Stellar Semiconductor 3D graphics technology for set-top boxes, digital TVs and Internet appliances 672,346 shares Mar 00   BlueSteel Networks security processors 375,000 shares Mar 00

CALIENT ATTRACTS $225 MILLION IN NEW FUNDING FOR ITS ALL-OPTICAL SWITCHING
Calient Networks, a start-up developing all-photonic switching systems, closed a total of $225 million in third round financing, including strategic investments from Juniper Networks, Marconi, Tellabs and ONI Systems.  Calient said the funding will be used for the commercial release of its MEMs-based photonic switching system, which is currently undergoing interoperability testing with a range of network elements.  Scott Kriens, CEO and president of Juniper Networks, has joined the Calient Networks board of directors.  Calient is based in San Jose, California.
http://www.calient.net/news/news_1_8_thirdround.html
Calient Networks, January 8, 2001

• Calient's DiamondWave switch line will use movable arrays of micro-mirrors to support full lambda switching scaling from 8 to 4,096 ports per system.  It will offer service independency, from Fibre Channel to OC-768, and embedded routing and signaling support for the future MPLambdaS.  The platform will also offer selective OEO support for bridging legacy applications such as SONET, IP, Fibre Channel and Gigabit Ethernet applications on a test or termination basis.
  

• Calient Networks is led by Charles Corbalis, who most recently served as the Vice President and General Manager of the Multiservice Switching/WAN Business Unit at Cisco Systems.  He previously was a co-founder and Vice President of Engineering for StrataCom.  Calient Networks was co-founded by Dr. Daniel Blumenthal and Dr. John Bowers, both professors at the University of California at Santa Barbara.

WORLD WIDE PACKETS RAISES $44 MILLION FOR ITS GIGABIT ETHERNET ACCESS EQUIPMENT
World Wide Packets, a start-up developing residential optical Ethernet access equipment, secured $44 million in new funding, bringing its total raised to date to more than $60 million.  The company's Ethernet to the Subscriber equipment is currently undergoing field trials with the Grant County Washington Public Utility District (PUD).  Product availability is scheduled for Q1.  Investors include Azure Capital Partners, Rock Creek Capital, Corning Innovation Ventures, Millennium Technology Ventures, Koch Ventures, and others.  http://www.worldwidepackets.com/news/pressRelease.jsp?id=18
World Wide Packets, January 8, 2001

• World Wide Packets' Gigabit Ethernet home gateway will feature a One Gigabit Ethernet uplink port (full duplex), eight dedicated, 10/100 Mbps ports for connecting Ethernet devices within the subscriber's premises and the option of three POTS interfaces with built-in VoIP.  A six-hour battery backup will also be optional.  The device will be self-configuring when attached to the service provider's fiber network.  World Wide Packets promises pricing comparable to xDSL, cable modem and PONs solutions. The company is also developing an optical Gigabit Ethernet aggregator and related management and provisioning software. 
  
• World Wide Packets is led by Bernard Daines, the former founder of Packet Engines (acquired by Alcatel in 1998), Grand Junction Networks (acquired by Cisco in 1995) and Tidewater Associates.

WAVESMITH NETWORKS RAISES $12 MILLION IN SUBORDINATED DEBT
WaveSmith Networks has closed a $12 million round of subordinated debt financing.  The company said that the debt will give it more flexibility in managing the timing and terms of its future second round of equity financing.  WaveSmith is developing optical networking equipment that enables rapid deployment of services and consolidation of provisioning and management of telecommunications networks.  Comdisco Ventures, GATX Ventures, and Silicon Valley Bank provided the funding.
http://www.wavesmithnetworks.com/
WaveSmith, January 8, 2001

• 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).
  
• The Acton, MA based company raised $11.5 million in first round equity financing in August.

AVICI ADDS OC-192C CAPABILITIES TO ITS TERABIT SWITCH ROUTER
Avici Systems announced the availability of its OC-192c/STM-64 line cards for its Terabit Switch Router.   A channelized OC-192 product offering, with four multiplexed 2.5 Gbps channels on a single 10 Gbps link, had previously been available.  The company also released a dual port OC-48c module that extends the number of OC-48c ports per TSR chassis from 40 to 80.  http://www.avici.com/pr010801.html
Avici Systems, January 8, 2001

METRO-OPTIX CERTIFIES 820 GBPS OPTICAL BANDWIDTH MANAGER SYSTEM
Metro-Optix, a start-up developing an optical bandwidth manager system designed to replace SONET add/drop multiplexers, digital cross-connect systems, ATM edge switches and IP routers in metropolitan access applications, announced certification testing that showed a backplane bandwidth capability of 820 Gbps.  The tests were conducted at the National Semiconductor laboratory and at Litton Interconnect Technologies using a fully-loaded chassis.  http://www.metro-optix.com/08Jan.htm
Metro-Optix, January 8, 2001

• Metro-Optix is led by Arun Bellary, who previously served as General Manager of Ericsson's broadband access products unit. 

AMCC'S ORINOCO CHIP AGGREGATES 12 DS3/E3/EC-1S TO AN OC-12
Applied Micro Circuits Corp. (AMCC) introduced a fully-integrated framing and mapping device capable of aggregating 12 DS3/E3/EC-1s to an OC-12 (STS-12/STM-4).  The integration yields an 80% savings in board space, enabling network equipment manufacturers to build line-cards supporting up to 48 DS3 ports.  Other AMCC chips allow the high-density aggregation of DS3s to be optically transported over OC-48 and OC-192s.   http://www.amcc.com/Compinfo/PressReleases/Orinoco.htm
AMCC, January 8, 2001

AVAIL NETWORKS SECURES $15 MILLION FOR ITS MULTI-SERVICE ACCESS PLATFORMS
Avail Networks has closed $15 million in second round equity financing.  Avail's Frontera Integrated Concentration Devices (ICDs) combine features of compact DSLAMs, IADs, and ATM switches, allowing Integrated Communications Providers (ICPs) to serve clusters of broadband access subscribers in commercial multi-tenant units (MTUs), multi-dwelling units (MDUs), and office park environments.  The ICD connects subscriber DSL and traditional telephony equipment via in-building copper wires, packetizes and/or switches the voice and data traffic through a hardware ATM switch to standard telco uplinks for local-loop connectivity, and performs bi-directional traffic policing functions, preserving service quality across different traffic types even in oversubscribed in-building access networks.  Investors included EDF Ventures, Blueprint Ventures Blue Chip Venture Company, NTT Leasing Capital, Cabletron Systems, Soliton Systems, Global Alliance, C.E. Unterberg Towbin, Accton Technology Corporation, and the Wolverine Venture Fund.  http://www.availnetworks.com/
Avail Networks, January 8, 2001

• Avail Networks was founded by former employees of the Network Express division of Cabletron Systems. 
• Avail, which is based in Ann Arbor, Michigan, has raised a total of $26 million in funding.

ERICSSON TO RESELL ZHONE'S MULTI-SERVICE BROADBAND ACCESS EQUIPMENT
Ericsson signed an OEM agreement to resell Zhone's broadband access product line alongside its own ENGINE convergence products. The relationship also involves a "preferred partner" status for Ericsson in EMEA, the Asia-Pacific rim, and Latin America, making Ericsson the exclusive prime contractor in large-scale carrier projects.  http://www.zhone.com/
Zhone, January 8, 2001

• Zhone's Single Line Multi-Service (SLMS) architecture aims to consolidate copper, fiber, and coaxial physical loop plants into a single integrated infrastructure supporting multiple transport options and multiple services with a common management model.  Product plans include a Broadband Access Node (BAN) that would serve as a single provisioning and management system for voice, data, and content services.  The platform will use a combination of voice and data Application Specific Processors (ASPs), TDM trunking, ATM trunking, SDSL/HDSL2, and 10/100 Ethernet cards.  Initial interfaces range from 10/100 Ethernet to DS-3 and OC-3. Zhone will also support both Point-to-Point Protocol over ATM (PPPoA) and PPP over Ethernet (PPPoE) service terminations, as well as VoIP) and voice over ATM (VoATM) on a single interface card.  
  
• Zhone also offers the "Sechtor 300" Universal Voice Gateway, which provides Voice-over-ATM, Voice-over-IP, and TDM voice services over various access infrastructures.  The device integrates traditional 3/1/0 DACS functionality and also features an integral ATM backplane for gateway services between ATM networks and Class 5 switches.  It uses GR-303 signaling to act as an extension to existing voice switches, concentrating voice traffic near the customer while supporting comprehensive CLASS and lifeline voice service.
  
• Zhone Technologies was founded in September 1999 by Mory Ejabat, the former President and CEO of Ascend Communications; Jeanette Symons, the former CTO of Ascend; and Robert Dahl, the former CFO of Ascend.  Zhone subsequently acquired Premisys Communications.  The company is based in Oakland, CA.

VERIZON REPORTS 540,000 DSL SUBSCRIBERS
As of December 31, Verizon had 540,000 DSL subscribers, exceeding its year-end goal of 500,000.  Verizon also captured an estimated 1.4 million long-distance customers in New York, winning a 20% share of the state's residential long-distance market in one year.  The company's full financial results will be released Feb. 1.
http://newscenter.verizon.com/proactive/newsroom/release.vtml?id=47788
Verizon, January 8, 2001

COVAD REACHES 274,000 DSL ACCOUNTS, REPORTS OPERATING STATS
Covad ended the year 2000 with 274,000 total DSL lines in service, with about 50% business accounts and 50% consumer accounts.  About 3% of total lines were sold directly to end users and 97% were sold through Covad resellers.  However, Covad is not recognizing revenue on approximately 92,000 lines, which were sold through "non-revenue generating ISPs."  Four of the 19 ISPs have filed for bankruptcy protection.
http://www.covad.com/companyinfo/pressreleases/pr_2001/010801_press.shtml
Covad, January 8, 2001

CEREVA NETWORKS DEVELOPS INTERNET STORAGE SYSTEMS
Cereva Networks, a start-up based in Marlborough, Mass., outlined its plans for a storage system designed for Internet data centers.  The product will combine massive data scalability with SAN, native HTTP, FTP, streaming media, and other content-distribution capabilities.   http://www.cereva.com/news/pr_010801.html
Cereva Networks, May 15, 2000

• Cereva is headed by Alan Lutz, who previously served as President and Chief Operating Officer of Newbridge Networks. 
  
• Cereva has received almost $110 million in financing from Comdisco Ventures, Intel, Global Crossing Ventures, Goldman Sachs, Matrix Partners, North Bridge Venture Partners, Oak Investment Partners, Sumitomo Corporation, and Worldview Technology Partners.

AVAYA ACQUIRES VPNET FOR ITS VPN SOLUTIONS
Avaya agreed to acquire VPNet Technologies, a privately-held developer of virtual private network systems, for $120 million.  VPNet offers a series of hardware-based VPN gateways that enable secure data communications over public IP networks.   The products support Triple DES encryption (168-bit) or DES (56-bit).  The company has about 130 employees and is based in Milpitas, California.  http://www.vpnet.com  http://www.avaya.com
Avaya, January 8, 2001