INTEL TO ACQUIRE VXTEL FOR VOICE OVER PACKET SILICON
Intel agreed to acquire VxTel, a start-up developing silicon for voice over packet applications, for approximately $550 million in cash.  VxTel has developed a high-performance digital signal processor (DSP) especially for voice-over-packet, voice-over-DSL, voice-over-cable, and voice-over-wireless applications.  The VxTel VoP solution would enable more than 2000 simultaneous voice connections on a single card.  Intel said the VxTel product would become part of its Internet Exchange Architecture (Intel IXA).  VxTel is based in Fremont, California.  http://www.intel.com/pressroom/archive/releases/20010226corp_a.htm?iid=update+010226&
Intel, February 26, 2001

• VxTel is headed by Mr. Shri Dodani, who previously served as Vice President of Engineering with Carrier Access Corporation.  Its technical team is led by Dr. Kumar Ganapathy, who developed three generations of DSP architectures for Conexant, where he was an Engineering Fellow.  The company was founded in March 1999.
  
• In October, VxTel raised $62 million in private equity financing, bringing total funding to more than $75 million.  Corporate investors include ADC Ventures, AMCC, Clarent Corp., Intel Communications Fund, Juniper Networks, Mitsui Comtek Corp., Tellabs, UTStarcom Inc., Virata and Vitesse.  Additional investors include Sequoia Capital, Telesoft Partners, Raza Ventures, Bowman Capital Management, Capital Research and Management Company, Essex Investment Management Co., Robertson Stephens' Bayview 2000 L.P., and U.S. Bancorp Piper Jaffray.
  

Intel's Networking Acquisitions VxTel Voice over Packet silicon designs Jan 01 $550 million in cash Xircom Small-form-factor PC Cards Jan 01 $748 million in cash DataKinetics Signaling System 7 (SS7) hardware and software Aug 00 not disclosed Trillium Data Systems communications source code Aug 00 $300 million Picazo Communications CT media server software Apr 00 not disclosed Basis Communications network processors including narrowband controllers and CardBus controllers Mar 00  $495 million in cash GIGA A/S OC-48 and OC-192 silicon solutions Mar 00  $1.25 billion in cash Voice Technologies Group IP PBX Integration communication boards Feb 00 undisclosed cash   Ambient Technology DSL silicon Jan 00 $150 million in cash DSP Communications digital cellular communications products October 99 $1.6 billion in cash  IPivot network appliances for eCommerce sites October 99 $500 million in cash   the Telecom Component Products (TCP) division of Stanford Telecommunications silicon components for cable modems and head-end equipment Sept 99 undisclosed cash   Olicom A/S's development group in Denmark intellectual property and engineering team focused on LAN solutions Sept 99 price not disclosed   NetBoost hardware/software accelerator for policy-based networking Sept 99 price not disclosed Softcom MicroSystems network access processor designed for full OC-12 cell rate performance for 64 byte packets Jul 99 price not disclosed  Dialogic Corp. computer telephony software, network interfaces and media processing boards that run on Intel-based servers Jun 99 approximately $780 million Level One Communications a developer of LAN/WAN silicon devices Mar 99 about $2.2 billion in stock Shiva remote access and VPN products Oct 98 $185 million in cash Dayna Communications Fast Ethernet hubs and switches, bridges, routers, network adapters Sept 97 price not disclosed Case Technology of Denmark Layer 3 switching and Fast Ethernet technologies Jan 1997 US$72 million

360NETWORKS PROVIDES OC-48 OPTICAL VPN TO VERIO
Verio awarded a three year contract valued at US$30 million to 360networks for optical capacity on its fiber routes in North America and Europe as well as on 360atlantic, its transatlantic submarine cable.  360networks will provide Verio with an OC-48 optical VPN.  The service will be upgradeable to OC-192 circuits at any time.  In addition, 360networks will provide Verio with an STM-16 (2.5 Gbps) circuit on 360atlantic and multiple STM-4 (622 Mbps) circuits on routes connecting London, Amsterdam and Frankfurt.  NTT Communications Corporation and its affiliates may also purchase services from 360networks.  http://www.360.net/News---Releases---Details.asp?ID=112
360networks, February 26, 2001

• Verio is a subsidiary of NTT Communications.
• Last May, Verio awarded a $200 million contract to Cisco Systems for upgrades to its US hosting centers.  The contract included Cisco's Catalyst 6500 switches for managing customer network connectivity and Cisco 12000 GSRs operating at the edge of its national backbone.

BROADWING ENHANCES IP VPNS WITH CUSTOMER TOOLS
Broadwing Communications introduced a set of online network management tools that allow customers to self-manage their IP VPNs.   The capabilities include Class-of-Service re-provisioning; network performance reports; remote user account creation, modification and deletion; and trouble ticket tracking.  http://www.broadwing.com/html/watid_375.asp
Broadwing Communications, February 26, 2001

MOTOROLA TO USE CONVERGENT NETWORKS' SOFTSWITCH FOR VOIP OVER HFC
Motorola plans to integrate Convergent Networks' ICServiceWorks softswitch technology into its VoIP product line.  Motorola's next-generation access solutions would enable cable operators to provide traditional voice and enhanced data services over an existing hybrid fiber-coaxial (HFC) network.  Convergent Networks' ICServiceWorks softswitch provides a packet-voice solution that includes traditional Class 5 features while also offering a platform for the creation of enhanced voice services.  Motorola also made a strategic equity investment in Convergent Networks.  http://www.convergentnetworks.com/rel022601.html
Convergent Networks, February 26, 2001

INTEL DEVELOPS GIGABIT ETHERNET CHIP FOR EMBEDDING ON MOTHERBOARDS
Intel unveiled the first single-chip Gigabit Ethernet controller.  The device is more than 50% smaller than previous generations of controllers, uses 50% less power and generates significantly less heat.  The chip will enable OEMs to build Gigabit Ethernet network connections directly into servers, workstations or networking devices using a type of connection called LAN-on-motherboard (LOM).  http://developer.intel.com/design/network/products/lan/controllers/82544ei.htm
Intel, February 26, 2001

AGERE SYSTEMS UNVEILS 64X64 3D MEMS-BASED OPTICAL SWITCH COMPONENT
Agere Systems (formerly Lucent's Microelectronics Group) introduced a fully integrated, 3D MicroElectroMechanical systems (MEMS) optical switch component with 64 input and 64 output ports.  The mirror-based switch could be used at the core of all-optical cross connects and add/drop multiplexers.  Agere said that unlike many two-dimensional MEMS switch architectures -- which raise or lower "pop-up" mirrors at fixed angles to switch a signal to a certain port – its optical switch module features a 3D beam- steering architecture. Signals are directed to an array of dual-axis mirrors that can be tilted in multiple positions, bouncing an incoming signal off one of these mirrors to another dual-axis mirror and finally to the designated output port.  http://www.lucent.com/micro/NEWS/PRESS2001/022601b.html
Agere Systems, February 26, 2001

TEKTRONIX INTRODUCES OPTICAL ANALYZER MEASURING FIBER DISPERSION EFFECTS
Tektronix introduced a new network analyzer that allows designers of DWDM components to measure and characterize polarization mode dispersion (PMD) and chromatic dispersion simultaneously.  Optical dispersion becomes an increasingly critical issue as data rates climb to OC-192 and OC-768 (40 Gbps).  The analyzer was developed by Advantest Japan and is marketed by Tektronix in North America under a strategic alliance.  http://www.tektronix.com
Tektronix, February 26, 2001

IOLON RECEIVES $53 MILLION FOR TUNABLE OPTICAL DEVICES
iolon, a start-up based in San Jose, California, secured $53 million in new venture funding for its development of tunable optical devices.  The funds will be used to ramp volume production of the company's first product, a widely tunable, high-powered laser, which iolon began sampling with select customers late last year.  Investors include Kleiner Perkins Caufield & Byers; Optical Capital Group; Boston Millennia Partners; Corning Innovation Ventures; Doll Capital Management; Goldman Sachs; Integral Capital Partners; J. & W. Seligman; Banc of America Securities; CIBC World Markets; Credit Suisse First Boston; CrossBridge Venture Partners; Kalkhoven, Petit and Levin Ventures; SSB Page Mill Capital Partners; Techno-Venture and Wit SoundView.  http://www.iolon.com/
iolon, February 26, 2001

• iolon is headed by John Clark, who formerly was VP and GM of the Opto-Electronics Unit of Scientific-Atlanta.
• iolon's future product lines will leverage its core technologies to produce a portfolio of tunable devices: filters for attenuators, receivers, and optical add-drop multiplexers; optical switches for in-line all optical networks; polarization controllers for high bit rate applications; spectrum monitors for reduced maintenance; and universal transponders.

ONETTA SECURES $56 MILLION FOR LONG-HAUL OPTICAL AMPLIFIERS
Onetta, a start-up based in San Jose, California, attracted $56 million in second round funding to expand production capacity of its high-end intelligent optical amplifiers.  Onetta currently has two amplifier product lines for the long haul and ultra-long haul marketplace.  Investors include HarbourVest Partners, Sumitomo Corporation, J.P. Morgan H&Q, J&W & Seligman, Sequoia Capital and Matrix Partners.  http://www.onetta.com/
Onetta, February 26, 2001

• Onetta is headed by Dennis Barsema (CEO), who previously was the president and CEO for Redback Networks.
• The company was founded in February 2000 by Dr. Robert MacDonald (previously with New Focus) and Dr. Yan Sun (previously with Lucent's optical networking group). 

OPLINK'S PASSIVE RAMAN AMPLIFIER USED IN XTERA'S ULTRA LONG HAUL DWDM
Oplink Communications is supplying key passive Raman amplifier components used in Xtera Communications' recently announced long-haul DWDM expander system.  The 10 Gbps system uses cascaded discrete Raman amplifiers in the S-band.  http://www.oplink.com/framesets/news/fs_feb22_2001.html
Oplink Communications, February 26, 2001

• Xtera’s eXpander system could be integrated into existing DWDM systems, providing new bandwidth capacity on existing fiber without requiring additional network elements to be deployed. The company's 16-channel transmission demonstration used a previously untapped window of bandwidth between 1485 and 1525 nm, supporting 50 GHz spacing.

SKYSTREAM RECEIVES $44 MILLION FROM AOL TIME WARNER, SHAW AND VCs
SkyStream Networks, which provides satellite-based content distribution services, closed a $44 million fourth round of funding.  SkyStream's services connect networks of satellite providers, cable providers and television broadcasters with those of traditional Internet bandwidth owners using IP and ATM networks.  Top customers include EchoStar Communications, iBEAM, iBLAST, Granite Broadcasting, Loral CyberStar, Microsoft TV, Pacific Convergence and Telefonica, among others.  SkyStream's strategic investors include AOL Time Warner Investments, Shaw Ventures, Amerindo Investment Advisors, Crosslink Capital, IVP, Integral Capital Partners, Mayfield, Norwest Venture Partners and WestBridge Ventures.  http://www.skystream.com
SkyStream Networks, February 26, 2001

VIRATA BOOTS ITS HELIUM DSL CHIP FOR GATEWAY APPLICATIONS
Virata introduced its latest Helium DSL processors, featuring 50% more throughput than its current chips and an integrated 10/100 Ethernet MAC and PHY.  The devices are designed for use in broadband home and small office gateways, 24 voice-channel Integrated Access Devices (IADs) and plug-and-play wireless and wireline networks.  http://www.virata.com/cgi-bin/frame.pl?URL=/news/pr/helium200.htm
Virata, February 26, 2001

NAVIC NETWORKS SECURES $23 MILLION FOR SET-TOP BOX DATA MEASUREMENT TOOLS
Navic Networks, a start-up based in Newton, MA, secured $20 million in new venture financing for development of its centralized system for tracking data to and from digital set-top boxes.  Navic's platform would enable cable and satellite operators to more accurately measure audiences, track addressable advertising, provide set-top box management, and control downloadable content distribution.  Investors include Pilot House Ventures Group, Pequot Private Equity, Highland Capital Partners and Himalaya Capital.  http://www.navic.tv
Navic Networks, February 26, 2001

TERABEAM ANNOUNCES FIRST CUSTOMERS FOR FREE SPACE OPTICAL SERVICE
Terabeam announced the first commercial accounts for its free space optical connectivity service.  Customers include the Four Seasons Olympic Hotel, Avenue A (a digital marketing and technology company), and Simpson Investment Co., each of whom is located in Seattle.  http://www.terabeam.com/pre/20010222.shtml
Terabeam, February 26, 2001

• As of September, Terabeam had raised a total of $576 million in equity financing, partnership funding and contributions for development of its free space optical networks.
  
• Last April, Lucent and Terabeam Networks announced a joint venture systems company to integrate fiberless optical technology for end user customers.