SIEMENS TO ACQUIRE EFFICIENT NETWORKS FOR ITS DSL CPE
Siemens Information and Communication Networks will acquire Efficient Networks, a leading supplier of DSL customer premise equipment (CPE), for approximately $1.5 billion in cash, representing $23.50 for each EFNT share.  Efficient Networks' product line includes DSL modems, routers, integrated access devices (IADs) supporting voice and data services, as well as management systems and software.  Siemens' product line includes central office DSL access multiplexers. Efficient Networks also announced that it has been selected by SBC Communications as its provider of external Ethernet-attached DSL modems.  Efficient's other major customers are AOL, Bell South, Hanaro Telecom, Singapore Telecom, Sprint, TeleDanmark, Telefonica and Worldcom.  The Dallas, Texas-based company posted $394 million in revenue for calendar year 2000.  http://www.siemens.de/en2/html/press/index.html  http://www.efficient.com/  
Siemens ICN, February 22, 2001

• The acquisition price represents a 90% premium over EFNT's closing price on February 21, 2001
• Earlier this month, Siemens said it is investing more than DM100 million (US$46 million) to expand production capacity in a new manufacturing facility in Bruchsal, Germany dedicated to broadband access technology.  The company plans a twenty-fold increase in the production of DSL systems, yielding 2.5 million DSL ports for this year alone. 

360NETWORKS LIGHTS MAJOR SEGMENTS OF ITS EUROPEAN FIBER NETWORK
360networks lit 6,100 km of its European fiber network, linking major cities in the UK, France, Germany and Holland.  The German portion of the network is ready for commercial service and a 3,000 km segment connecting Denmark, Norway and Sweden is expected to be lit in May.  360networks' new transatlantic cable is expected to enter service by Q2.   http://www.360.net/News---Releases---Details.asp?ID=111
360networks, February 21, 2001

• Earlier this week, 360networks announced plans to acquire NetRail a Tier 1 wholesale IP service provider, in order to accelerate its entrance in IP services.
• 360networks completed its 11,500 km, coast-to-coast Canadian network in November.
• In December, 360networks announced a $230 million network services agreement with Deutsche Telekom for broadband capacity, dark fiber, collocation and maintenance services. Under the deal, 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.
• 360networks is using Sycamore Networks’ optical switching and network management equipment in its European and North American networks.  The carrier plans to create a global optical mesh by installing more than 100 Sycamore optical switches in major cities around the world by mid-2002.  360networks has also deployed Nortel Networks' OPTera Long Haul 1600 DWDM system along key segments of its North American and UK networks.

KOREA'S DACOM DEPLOYS ERICSSON/JUNIPER BACKBONE ROUTERS
DACOM, a leading Korean ISP, will deploy Ericsson's AXI 580 backbone routers (Juniper Networks' M160 routers).  Financial terms were not disclosed.   http://www.ericsson.se/infocenter/news/dacom.html
Ericsson, February 22, 2001

TOUCH AMERICA SELECTS CISCO 12000 BACKBONE ROUTERS FOR OC-192 NETWORK
Touch America selected Cisco Systems' 12000 series Internet routers for use over its OC-192 long-haul fiber optic network.  Touch America, which is a subsidiary of The Montana Power Company, invested $580 million in its network in 2000 and plans to invest another $450 million in 2001.  The company currently has an 18,000-route-mile fiber optic and regional wireless broadband network that will expand to 26,000 miles by year-end 2001.   http://www.tamerica.com/
Touch America, February 22, 2001

• In November, Touch America closed a new $400 million senior secured credit facility with a consortium of fourteen banks.  Montana Power recently closed the sale of its oil and gas business for $475 million, and it intends to complete transactions for its coal, independent power, and utility businesses by the end of the first quarter 2001.  The $1.3 billion generated through these sales will be used to grow Touch America into a national broadband data, voice, and video transport company. 
• In June, Touch America acquired Qwest's wholesale, private line and retail long-distance business in its regulated 14-state region.

GRANDE COMMUNICATIONS ORDERS ALCATEL FIBER FOR RESIDENTIAL NETWORK PROJECT
Grande Communications, a new service provider based in Texas, ordered 100,000 km of Alcatel's fiber optic cable, as well as interconnection hardware, for a fiber-to-the-curb network deployment in Houston, Austin, San Marcos and San Antonio, Texas.  The broadband network will offer each household 10 Mbps Internet access, local and long distance phone and cable television entertainment services. Network construction is underway. http://www.alcatel.com/vpr/?body=/latestnews/22022001uk
Alcatel, February 22, 2001

• Grande Communications raised $233 million in February 2000 to fund the rollout of its network.

MARCONI LANDS 10 GBPS SDH TRANSMISSION CONTRACT IN CHINA
ShanDong ZiBo Telecom, a subsidiary of China Telecom, will deploy Marconi's 10 Gbps SDH transmission technology.  The carrier currently uses 2.5 Gbps SDH equipment in its network.  The deal represents Marconi's first 10 Gbps transmission contract in China.  Financial terms were not disclosed.  http://www.marconi.com/html/news/marconiwinsfirst10gbitstransmissionorderinchina.htm
Marconi, February 22, 2001

VIRATA ENHANCES ITS MPLS SOURCE CODE
Virata released a new version of its MPLS source code intended to address the optical switching market.  The software release supports traffic management and quality of service through multiple communication protocols, including the latest extensions to RSVP-TE (Resource Reservation Protocol-Traffic Engineering), LDP (Label Distribution Protocol) and CR-LDP (Constrain-Based Routing Label Distribution Protocol). In addition, it includes routing enhancements such as LSA Flow Control, Route Flap Dampening and other extensions that are designed to reduce and control the amount of OSPF control traffic.  http://www.virata.com/cgi-bin/frame.pl?URL=/news/pr/mpls46.htm
Virata, February 22, 2001

• Virata acquired privately held Inverness Systems, a developer of IP/ATM/MPLS software source code, last year.

INNOWAVE BROADBAND INTRODUCES 155MBPS ATM/SONET MICROWAVE RADIOS
InnoWave Broadband Inc. (formerly WinNet, a subsidiary of ECI Telecom) introduced an OC-3/STM-1 digital microwave radio for use in FCC and ETSI frequency bands ranging from 18 to 38 GHz.  The 155 Mbps radio provides ATM-over-SONET/SDH or IP-over-SONET/SDH.  http://www.ecitele.com
InnoWave Broadband, February 22, 2001

• InnoWave was an early developer of 100 Mbps radios for wireless Fast Ethernet.

OFDM FORUM ADDS MEMBERS, TARGETS VEHICLE-TO-VEHICLE COMMUNICATIONS
The OFDM Forum added 11 new members – including 3Com – to its roster, bringing the total number of participating organizations to 56.  Among its potential applications, OFDM technology is being considered for use in future automated vehicle-to-vehicle communications.  Researchers at the University of California at Berkeley's Partners for Advanced Transit and Highways (PATH) program are currently using IEEE 802.11b wireless technology in vehicles equipped with automated steering, acceleration and braking systems.  The vehicles communicate with each other to perform merging maneuvers without human assistance.  The researchers have plans to migrate the wireless systems to OFDM in the near future to mitigate multipath issues and provide higher data rates.  http://www.ofdm-forum.com
The OFDM Forum, February 22, 2001

• Orthogonal Frequency Division Multiplexing (OFDM) is a modulation method that encodes and transmits data on multiple high-speed RF signals concurrently.  The technology is highly tolerant to noise and multipath interference.
• In November, The OFDM Forum submitted a physical layer proposal to the IEEE's 802.16.3 subcommittee.  The proposal endorses using OFDM technology in the physical (PHY) layer of fixed wireless access systems below 11 GHz.
• In September, the Federal Communications Commission (FCC) announced that it does not intend to certify OFDM systems for use in the unlicensed 2.4 GHz frequency band in the US.  The FCC ruled that OFDM does not fit the definitions of a Direct Sequence Spread Spectrum (DSSS) System, and therefore is outside the intended use of the unlicensed 2.4 GHz frequency band.  The ruling affects only OFDM in the unlicensed 2.4 GHz frequency.

FORMER LUCENT OPTOELECTRONIC EXECUTIVES FOUND CENIX, TARGET 10 & 40 GBPS DEVICES
CENiX, a start-up based in Lehigh Valley, Pennsylvania and Irvine, California, signed a development and manufacturing agreement with PerkinElmer Optoelectronics. The companies are working on 10 Gbps and 40 Gbps receiver and optoelectronic interfaces for DWDM and SONET. CENix said its products will scale to 100 Gbps rates.  http://www.cenixinc.com 
CENiX, February 22, 2001

• CENIX was founded in July 2000 by several executives from Lucent Technologies’ Optoelectronics Division, including Dr. Melvyn Dixon, formerly Director of Technology Planning and Ventures; Dr. Nils Anders Olsson, formerly VP and General Manager; Timothy P. Bock, formerly Manufacturing and Process Development Director; Dr. Sung Joon Kim, formerly the General Manager of the Optical Subsystems Products Group; and Ettore J. Coringrato, formerly Business Planning and Development Director.
  
• CENiX has received $25.5 million in early stage funding from Kleiner Perkins Caufield & Byers, Cisco Systems and strategic individuals.