AT&T ISSUES FORECAST FOR 2001, GROWTH IN WIRELESS, BROADBAND
In an update to its previously announced plans to split into four new publicly-traded companies, AT&T provided the following guidance for 2001.  AT&T Wireless expects its service revenue to grow at the high end of its 30 – 35% range while earnings are expected to be in the mid-60% range.  The Broadband Group anticipates revenue growth in the mid teens and a 3% increase in earnings.  The Business and Consumer Groups estimate flat to declining revenues, and earnings declines in the 6-8% range, primarily due to the long distance market.  AT&T said it expects 2001 capital spending for the total AT&T Group to be similar to 2000’s level of $14.6 billion.  Substantially all of this amount will be directed to AT&T's growth businesses, Wireless, Broadband, and Business.  The Wireless Group estimates that its capital expenditures will total $5.5 billion in 2001.  http://www.att.com/press/
AT&T, January 29, 2001

LEVEL 3 EXPECTS GROWING SALES, IMPROVING MARGINS BUT DECLINING EARNINGS
Level 3 released financial guidance for 2001 and 2002, saying it expects communications revenue to grow from $858 million in 2000 to approximately $1.7 billion in 2001 and $2.9 billion in 2002.  The gross margin for the communications business is expected to increase from 27% in 2000 to approximately 50% in 2001 and 55% in 2002.  However, the company expects that the net loss per share will increase from $4.01 per share in 2000 to a net loss of approximately $7.50 per share in 2001, largely as a result of increases in stock-based compensation, net interest expense and depreciation expenses.  Capital expenditures for 2000 were $5.9 billion, $400 million less than expected. Level 3 expects its capital expenditures to decline during the next two years, falling to $3.4 billion in 2001, and $2.0 to $2.5 billion in 2002.   

Level 3 also announced that it has commissioned its international network.  The company’s 20,000-mile multi-conduit intercity network, 32 multi-conduit metropolitan network in North America and Europe, and transatlantic cable system were built in two and a half years.  With the completion of the network, Level 3 estimates that it would take approximately six to nine months to fully install a second fiber optic cable in one of Level 3’s empty conduits in its 16,000-mile U.S. intercity conduit system.  http://www.level3.com/us/news/newsreleases/0,1345,20010129,00.html
Level 3, January 29, 2001

YIPES EXPANDS ITS SUITE OF WEB SERVICES
Yipes Communications will enhance its scalable Ethernet IP access service with a suite of new Web services, including managed Internet and hosting services, managed co-location services, managed firewall security services, and professional services such as Web design and network consulting.  Yipes is currently active in 20 US markets.  http://www.yipes.com/press_box/pr_010129.html 
Yipes, January 29, 2001

WILLIAMS TO DEPLOY REDBACK'S MULTI-SERVICE OPTICAL PLATFORM
Williams Communications signed a multi-Year, multi-million dollar agreement to deploy Redback Networks' SmartEdge 800 multi-service optical platform in its US fiber networks.  The platform will be used to reduce provisioning, management and delivery costs for both SONET private line and emerging IP-based services.  http://www.redback.com/ 
Redback Networks, January 29, 2001

• Redback's SmartEdge 800 platform uses seven custom ASICs to dynamically provision and deliver SONET capabilities with significantly higher port density, faster performance, and lower power requirements than traditional ADMs.  A standard 7' rack of SE 800s delivers the functionality of up to 12 OC-48 add-drop multiplexer rings with full OC-12 drop.  The design allows multiple rings to be configured per shelf.  The SE 800 will also be dynamically re-configurable to support any service, on any port, in any slot, allowing for software upgrades from SONET to IP services.  The ASICs are manufactured using IBM's copper interconnect technology.   
• Redback Networks acquired Siara Systems, the developer of the ASIC-based IP/SONET platform, in November 1999.  The deal was valued at $4.7 billion at the time.

WILLIAMS COMMUNICATIONS SELLS SOLUTIONS BUSINESS, FOCUSES ON BROADBAND
Williams Communications will sell its enterprise services business, Williams Communications Solutions, to Los Angeles-based Platinum Equity.  Financial terms were not disclosed.  Nortel Networks, which holds a minority stake in Williams Communications Solutions, supports the transaction.  Williams said it expects to report a loss from the discontinued Solutions operations of $1.07 to $1.17 per share. These amounts include losses incurred by Solutions during 2000, estimated losses during the transaction period and estimated losses when the business is ultimately sold.  http://www.williamscommunications.com/
Williams Communications, January 29, 2001

LUCENT OUTLINES IP SERVICES STRATEGY, SPRINGTIDE 7000 TO MAP SERVICES TO MPLS
Lucent Technologies outlined its plans to pursue a service-intelligent network architecture in which business quality IP services are dynamically established through directory-driven, policy-based provisioning of an IP services layer tied into MPLS signaling.  Using "service intelligence" in the network, all elements in Lucent's new IP network design would have the capability to dynamically recognize and understand the needs of individual users and applications.  Lucent intends to extend its service intelligent IP strategy throughout its entire product portfolio, including solutions from its wireless, data, optical, and software business units.  A key element in the strategy will be Lucent's SpringTide IP Service Switches.  In addition to its currently available SpringTide 5000 platform, Lucent will offer a larger SpringTide 7000 switch featuring Gigabit Ethernet and Packet over SONET interfaces, and high-density channelized interfaces for more than 2,500 DS1s per chassis.  The SpringTide 7000 will also support the intelligent mapping of services to MPLS.  Commercial release is expected by the end of the quarter.  http://www.lucent.com/press/0101/010129.nsc.html
Lucent Technologies, January 29, 2001 

• Lucent Technologies acquired SpringTide Networks in July 2000 in a deal valued at $1.3 billion at the time.
• Spring Tide was co-founded in 1998 by Steve Akers, formerly VP of advanced technology development at Shiva, and Stephen Collins, previously a founding engineer at Wellfleet Communications.

MARCONI INTRODUCES ITS IP SERVICES SWITCHES
Marconi announced availability of a family of Subscriber IP Services Switches for providing large-scale subscriber aggregation into high-value IP services.  Marconi's new SSX-700 and SSX-1400 and advanced networking switches are designed to scale to more than 100,000 subscribers in a single chassis and deliver at wire speed such IP services as Virtual Private Networks (VPNs), IP Class of Service and ATM Quality of Service prioritization, authentication, authorization, and IP Security.  The switches offer an optional, web-based subscriber self-provisioning system that automatically updates the subscriber’s policy, provisions on demand the service level required for the application, and then updates the service provider’s accounting software to bill for the new service.  The NEBS-3 platform provides a capacity of up to 10 Gbps non-blocking throughput and up to 250,000 IP routes.  http://www.marconi.com/html/news/marconibroadensipaccessportfolio.htm
Marconi, January 29, 2001

LAUREL NETWORKS SECURES $60 MILLION FOR ITS IP-BASED OPTICAL EDGE ROUTING
Laurel Networks, a start-up company developing routing systems for the optical network edge, secured $60 million in second round financing, bringing its total funding to $77.3 million.  Laurel Networks plans to combine the IP routing software of an Internet router with the bandwidth management capabilities of a carrier-class ATM or Frame Relay switch.  Potential applications would include IP virtual private networks and destination-aware Internet transport, where the identity of the traffic drives the service level and the accounting model.  Specific product plans have not been disclosed.  Investors include New Enterprise Associates (NEA), Trinity Ventures, Worldview Technology Partners, WorldCom Venture Fund, Rein Capital, and CommVest. Laurel Networks is based in Sewickley, Pennsylvania.  http://www.laurelnetworks.com
Laurel Networks, January 29, 2001

• Laurel Networks is headed by Atul Bansal, previously president of FORE Systems' Network Control Technology.  Its senior management staff also includes Stephen Vogelsang, previously senior director of strategic and technical marketing at FORE Systems; Robert Warden, who previously managed the hardware engineering teams at FORE Systems responsible for the design, implementation, and market introduction of new ATM and IP switching systems; Robert Rennison, previously a Principal Engineer at FORE Systems responsible for core Internet switching products; Dimitris Varotsis, a principal engineer at FORE Systems responsible for MPLS switching; a Jeffrey Prem, a software developer at FORE Systems.

XTERA CLOSES $110 MILLION FOR ITS LONG-HAUL OPTICAL
Xtera Communications, a start-up developing long-haul and ultra-long-haul optical technology, closed $110 million in second round funding, bringing its total to date to $133 million.  The company is working on Raman technology that addresses the tradeoffs of bandwidth and distance in all-optical networks.  Product specifics have not been disclosed.  Investors include Rho Ventures, Star Ventures Management, CenterPoint Venture Fund, Berkeley International, Communications Ventures, New Enterprise Associates, Sevin Rosen Fund, ARCH Venture, EDF Ventures and Hook Partners.  Xtera is based in Allen, Texas.  http://www.xtera.com
Xtera Communications, January 29, 2001

• Xtera Communications was founded by Dr. Mohammed N. Islam, a full tenured professor in Electrical Engineering at the University of Michigan in Ann Arbor and an expert in fiber optics, all-optical switching, soliton transmission and ultrafast networks.  He previously founded Accuphotonics, which developed fiber-optic probes for biomedical imaging.  Xtera is headed by Dr. Jon Bayless (CEO), who has been associated with Sevin Rosen Funds since 1981.

PAXONET INTRODUCES VIRTUAL TRIBUTARY SONET/SDH CROSSCONNECT CHIP
Paxonet Communications (formerly CoreEl MicroSystems) introduced a virtual tributary SONET/SDH crossconnect chip that supports OC- 48 to granular T1, E1, T3 and E3 data streams for grooming and aggregation in the metro optical networks edge.  The device integrates the functions of digital access cross-connect switches (DACS) and add/drop multiplexers (ADMs). The chip also can be cascaded to support an OC-192 stream with any channelization down to 0.5Mbps granularity. Paxonet is based in Fremont, California.  http://www.paxonet.com/html/CurrentPress.htm
Paxonet Communications, January 29, 2001

SPIRENT INTRODUCES PERFORMANCE ANALYSIS FOR SANS
Spirent Communications introduced 1 and 2 Gbps SmartMetrics Fibre Channel Modules for its SmartBits 600 and 6000B chassis, enabling testers to categorize the performance, reliability, and quality of Fibre Channel-based SAN switches and fabrics.  The new Fibre Channel modules simplify the testing process by emulating hundreds of attached devices such as servers and storage systems with wire-rate traffic generation to simulate typical or extreme load conditions.  http://www.spirentcom.com/
Spirent Communications, January 29, 2001

TELLABS ACQUIRES FUTURE NETWORKS FOR VOICE/DATA-ENABLED CABLE MODEMS
Tellabs agreed to acquire Future Networks, a developer of voice and data-enabled cable modems, for $181 million in cash.  Future Networks' Embedded-Multi-Media Adapters (E-MTA) cable modems are based on Data Over Cable Service Interface Specification (DOCSIS), EuroDOCSIS and PacketCable specifications.  The products are currently in market trials.  The company has about 50 employees and is based in Alpharetta, Georgia.  Tellabs said the Future Network product portfolio could be used with its own CABLESPAN 2700 cable modem termination system/edge router, and the Tellabs SALIX packet voice gateway system to enable new IP voice and data networks and provide investment protection for operators with existing CABLESPAN 2300 networks.  http://www.tellabs.com/news/01news/nr012901.shtml
Tellabs, January 29, 2001

ADC NAMES FORMER AT&T EXEC AS CEO
ADC named Rick Roscitt as its new chairman and CEO, replacing William Cadogan, who is retiring.  Roscitt formerly served as president of AT&T Business Services, a $30 billion business unit encompassing AT&T solutions, AT&T Data and Internet Services, AT&T Global Network Services and a global sales organization.  ADC also named Lynn Davis, current president of the company's Broadband Connectivity group, to the newly created position of president and COO.  http://www.adc.com
ADC, January 29, 2001