CISCO SYSTEMS MOVES CORE ROUTERS TO OC-192, OUTLINES IP+OPTICAL STRATEGY
Cisco Systems introduced two new high-end service provider platforms supporting OC-192c/STM-64c rates and outlined its approach for further integrating IP and optical technologies.  Cisco's four-point strategy calls for building optical interfaces into its core IP routers; integrating IP technology into its optical products; developing an integrated network management framework across IP and optical network layers; and developing a unified, IP-based optical control plane that uses industry standard protocols.

The product introductions include two new Cisco 12000 core Internet router models:  the Cisco 12410, a ten-slot chassis that supports 20 Gbps throughput per line card; and the Cisco 12416, a 16 slot chassis with a 320 Gbps switch fabric.  Both models are based on a distributed system architecture that is capable of delivering line rate performance for IP and MPLS forwarding when fully loaded with sustained throughput for all prefix sizes.  The design uses a dedicated 25 Mpps (million packet per second) forwarding engine supporting priority-based congestion control, dedicated low latency queuing, and packet sequence integrity required for premium services such as voice over IP (VoIP). The 12400 Internet routers also can use new OC-192c/STM-64c Very Short Reach (VSR) interfaces for intra-POP connectivity.  Earlier Cisco 12016 routers can be field upgraded to a Cisco 12416 by swapping in new switch fabric cards.  Cisco 12000 series customers include Sprint, America Online, and 360networks.

Cisco also introduced a new ONS 15327 metro edge platform designed for efficiently transporting data, SONET/SDH services and DWDM wavelengths directly from access rings to customer premises.  The Cisco ONS 15327 chassis offers four slots supporting TDM, IP or ATM services over OC-12, OC-48 or 4-port 10/100 Mbps Ethernet line cards.  The product is about the size of a DVD player and Cisco claims it can be installed in 20 minutes.  Cisco's larger ONS 15454 has over 500 customers worldwide and an installed base of over 22,000 systems.   http://www.cisco.com/
Cisco Systems, January 31, 2001

QWEST EXTENDS OC-192C CAPACITY ACROSS ENTIRE NORTH AMERICAN IP NETWORK
Qwest Communications has extended OC-192c capacity across its entire North American IP network using Juniper Networks' Internet backbone routers.  Qwest's data transport demand is now over 600 terabits per week across its network.  The carrier's first OC-192c IP link carrying commercial traffic was brought into service more than a year ago.  It is currently planning future upgrades to OC-768c network speeds and testing terabit routers from Juniper, Cisco, Avici and others.  http://www.qwest.com
Qwest, January 31, 2001

NORTEL NETWORKS AND AOL TIME WARNER ANNOUNCE VOIP MARKETING ALLIANCE
Nortel Networks and AOL Time Warner announced a marketing alliance to promote IP voice-enabled Web services for businesses.  The deal provides for increased contributions from Nortel Networks in a range of next-generation enabling technologies across AOL Time Warner properties, as well as Nortel Networks' sponsorship of Time Warner magazines and programming.  http://www.nortelnetworks.com/corporate/news/newsreleases/2001a/01_31_0101062_aol_timewarner.html
Nortel Networks, January 31, 2001

SPRINT DEPLOYS LUCENT'S STINGER DSL IN 1,000 CENTRAL OFFICES
Sprint is now deploying Lucent's Stinger DSL platform in more than 1,000 central offices across the US, more than half of which are already installed.  ATM PNNI software installed with the DSL concentrators enables Sprint to automatically provision a network route for broadband services and can provide the ability to route traffic around congestion or out of service network nodes.  The two-year deployment project is valued at up to $129 million.  http://www.lucent.com/press/0101/010131.nsa.html
Lucent, January 31, 2001

• Lucent has shipped more than 14,000 Stinger systems to date.

ZHONE SECURES $300 MILLION FOR CARRIER FINANCING THROUGH CIT
Zhone Technologies, a start-up developing new local loop architectures, announced a funding partnership with CIT Vendor Technology that will enable it to extend $300 million in financing to select Zhone customers in order to support the future build-out of existing and next-generation service provider networks.  http://www.zhone.com/press/archives/20010131.html
Zhone Technologies, January 31, 2001

• CIT is a diversified finance company with $50 billion in managed assets.

• 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.

• 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.

DIGITAL ISLAND TRIMS CAPITAL EXPENDITURES TO REDUCE FUNDING NEEDS
Digital Island is cutting capital expenditures and realigning operations in order to reduce funding needs and achieve profitability more quickly.  The company has lowered its projected fiscal year 2001 (ending September 30, 2001) capital expenditures from $300 million to $225 million. In 2002, capital expenditures are expected to decline to $175 million.  Digital Island said it will improve its data center utilization and scale back the build-out of its network to meet rather than try to anticipate demand.  http://www.digitalisland.com/news/press/profit.shtml
Digital Island, January 31, 2001

• For its fiscal quarter ending December 31, Digital Island reported revenue of $31.6 million, up 31% over the previous quarter, from 939 content hosting customers.  The company had a net loss of $67.4 million before acquisition charges, or $0.86 per share.  Digital Island's content delivery network currently has 2,350 servers directly connected to 275 other networks.

CONVERGENT NETWORKS TO EXTEND SOFTSWITCHING TO PACKET CABLE TELEPHONY
Convergent Networks announced plans to extend the reach of its broadband softswitch solution to support packet cable telephony.  The company has joined the PacketCable interoperability initiative sponsored by Cable Television Laboratories, Inc. (CableLabs)  http://www.convergentnet.com/rel013101.html
Convergent Networks, January 31, 2001

ORCHESTREAM TO ACQUIRE CROSSKEYS, TARGETS IP SERVICE MANAGEMENT
Orchestream, a developer of IP service activation software, agreed to acquire Crosskeys, a developer of software for performance management and reporting, for approximately US$35 million in new Orchestream shares.  Dr. Terence Matthews and certain of his associates, and Alcatel collectively represent 29% of eligible CrossKeys voting shares and have agreed to vote in favor of the deal.  The combined company will offer a software platform to telecom carriers and service providers for defining, activating, monitoring and reporting services on IP networks.
http://www.orchestream.com/news/press_releases/index_news43.html
Orchestream, January 31, 2001

ORCKIT FORMS CORRIGENT SYSTEMS FOR PACKETIZED VOICE TRANSPORT
Orckit Communications formed a new company, called Corrigent Systems, to develop next generation packet-based metro products for provisioning and managing data and voice transport services.  The subsidiary will have 70 employees initially.  http://www.orckit.com
Orckit, January 31, 2001