LSI LOGIC TO ACQUIRE C-CUBE FOR DIGITAL VIDEO SILICON
LSI Logic agreed to acquire C-Cube Microsystems for approximately $878 million in stock.  C-Cube, which pioneered the MPEG digital video standards, is a leading silicon provider for digital set-top box, DVD and emerging CODEC-based applications, such as personal video recording (PVR), home media servers, recordable DVD, residential gateways and streaming video.  C-Cube reported $265 million in revenues in 2000, employs nearly 600 people worldwide and is headquartered in Milpitas, California.  LSI Logic said the acquisition would strengthen its portfolio for the broadband entertainment market.  http://www.lsilogic.com/news/financial_news/fr20010326.html
LSI Logic, March 26, 2001

• C-Cube introduced its first single-chip JPEG encoder/decoder in 1990.  Its broadcast MPEG-2 encoder debuted in 1993, followed by a broadcast MPEG-2 decoder in 1994.  C-Cube's first single chip MPEG-2 codec was introduced in 1997, and by 2000, the price had fallen to the consumer levels, thereby enabling personal video recorders.
  

• In November, Broadcom agreed to acquire VisionTech, a developer of MPEG-2 compression and decompression chips, for 7.96 million shares (valued at $772 million, based on closing share prices on Nov. 27).  
  

• Last May, GlobeSpan agreed to acquire iCompression Inc., a start-up developing MPEG-2 technology, for approximately $389 million (4.0 million shares of GSPN). 

HITACHI TELECOM INTRODUCES ITS LAMBDA TERMINAL PLATFORM
Hitachi Telecom announced a flexible wavelength multiplexing system that features add-in options for an optical transponder, optical transmultiplexer and optical regenerator.  Hitachi's Advanced Multiservice Network (AMN) 7100 Lambda Terminal can be configured with any or all of the following options:

• a transponder that converts optical signals from one wavelength to another

• a transmux system compliments Hitachi Telecom's DWDM portfolio by allowing lower-speed IP and ATM traffic to be combined into the OC-192 line rate

• an optical regenerator reshapes, retimes and regenerates up to 160 optical signals for optical retransmission

• an optical cross connect (OXC) that allows faster restoration and reconfiguration of fiber networks

• an all-optical protection switch for variable-rate lambda services and configurable protection switch at times as fast as 50 milliseconds

• an optical add/drop multiplexer that offers OC-48, OC-12 and OC-3 low-speed interfaces on the tributary side.

Hitachi said the new AMN 7100 would evolve its DWDM point-to-point platform for dynamically switched optical architectures.  http://www.hitel.com/WhatsNew/amn7100_032601.htm
Hitachi Telecom, March 26, 2001

• In January, Hitachi announced that Global Crossing will deploy its AMN 6100 Ultra-Long Haul DWDM system in more than 90 nodes throughout North America. 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. 

SPIRENT ANNOUNCES OPTICAL SIGNALING PROTOCOL TESTER
Spirent Communications announced support of the OIF's Optical User-to-Network Interface (UNI) and the IETF's GMPLS (Generalized Multiprotocol Label Switching) standard for its Adtech AX/4000 platform.  The new software will allow equipment manufacturers and service providers to validate "lightpath" reservation, as well as QoS for their ATM, IP, Frame Relay, Ethernet and SONET services.  Spirent said that as the evolution of the optical transmission network continues, routing decisions will move down the protocol stack to the optical transport layer.  Existing routing and switching protocols are being adapted to extend dynamic path allocation from virtual paths at the network layer to physical paths or "lightpaths" at the optical layer.  Tenor Networks is using the solution for testing its rapid provisioning model across optical transport infrastructure.
http://www.spirentcom.com/news/pressreleases/scospt.asp
Spirent Communications, March 26, 2001

ELEVEN VENDORS COMPLETE LATEST MPLS TESTING EVENT
Eleven test and equipment vendors completed an MPLS testing event at the University of New Hampshire's InterOperability Laboratory (IOL).  The recent testing focused on the IETF specification for Label Distribution Protocol (LDP).  Participants included Agilent Technologies, Alcatel, Avici Systems, Cisco Systems, Data Connection, GN Nettest, Netplane Systems, Network Associates, Spirent Communications, Unisphere Networks, and Virata.  http://www.iol.unh.edu/index.html
UNH, March 26, 2001

AGILENT INTRODUCES IPV6 TEST SOLUTIONS
Agilent Technologies announced new test solutions for IPv6, including a system for testing the performance of tunneled IPv6 traffic.  New software for the Agilent Broadband Series Test System (BSTS) enables users to generate IPv6 packet traffic and test equipment performance in real-time.  Tunneling is an essential transitional technique used to carry both IPv4 packet streams within IPv6 networks and IPv6 traffic in IPv4 networks.  Agilent's new solution supports performance testing of both variations.  http://advanced.comms.agilent.com/solutions/iptest/index.htm
Agilent Technologies, March 26, 2001

SPRINT DEPLOYS HYBRID'S MMDS GEAR IN CHICAGO
Sprint has deployed Hybrid's two-way MMDS wireless system for the deployment of Sprint Broadband Direct in the greater Chicago area.  Hybrid's head-end equipment is linked to the transmission antenna atop the Sears Tower in downtown Chicago.  Hybrid's Wireless Broadband Routers are also used as customer premise equipment.  Sprint Broadband Direct is now available in 13 US markets.  http://www.hybrid.com
Hybrid, March 26, 2001

LOOKING GLASS SIGNS INTERCONNECTION AGREEMENT WITH ILECS
Looking Glass Networks signed interconnection agreements with Ameritech, BellSouth, Pacific Bell, Southwestern Bell and Verizon in all ten of its target markets.  The agreements provide the new company with access to unbundled network elements (UNEs), collocation and other carrier rights.  http://www.lglass.net/
Looking Glass Networks, March 26, 2001

• In February, Looking Glass Networks raised an additional $275 million in debt capital to fund its metro optical network build-out plan, bringing its total funding to $475 million.  Major investors include Madison Dearborn Partners, Battery Ventures, J.P. Morgan, Salomon Smith Barney, Credit Suisse First Boston, Barclays Bank, Merrill Lynch and Deutsche Bank.  
  

• Looking Glass Networks is planning metro networks with dense fiber counts using 216 to 864 fiber strands per cable in the largest US cities.  The network is designed for delivering SONET, Gigabit Ethernet and wavelength services in addition to dark fiber.  The company will install multiple ducts for future upgrades and has already ordered several hundred thousand kilometers of Corning's MetroCor fiber.
  

• Looking Glass is led by Lynn E. Refer, who formerly served as Senior Vice President of Network Planning and Engineering at MCI Worldcom.  Refer previously was Senior Vice President of Development for MFS Communications.

GLOBAL NETWORK TELEPHONE SELECTS NET.COM'S SHOUTIP
Global Network Telephone, an independent carrier offering wholesale termination services to international carriers, selected net.com's ShoutIP platform to support long-distance services and for a field trial carrying traffic between London and Frankfurt.  net.com's box integrates multiple capabilities, such as integrated voice response; administration, authentication and authorization, network monitoring, and real-time, web-enabled billing.  The ShoutIP platform's distributed architecture enables each node in the network to perform trunking, signaling, gatekeeper/call agent functions and network management.  Financial terms were not disclosed.  http://www.net.com
net.com, March 26, 2001

VERNIER NETWORKS TARGETS LARGE-SCALE WIRELESS ETHERNET
Packet Design, the networking startup formed last year by husband-and-wife entrepreneurs Judy Estrin and Bill Carrico, announced its first spin-off company.  Vernier Networks will market a new technology that makes wireless LANs based on standards such as IEEE 802.11 and Bluetooth practical in large-scale enterprise environments.  The company said its charter is "to raise IEEE 802.11 from the wire-replacement level to a real working network at the IP layer (layer 3) and above."   Vernier will be network-based, with all configuration and authentication handled through a web interface at the network level.  A trial is under way at the University of Washington.  http://65.192.41.10/press_vernier.html   http://www.verniernetworks.com/
Packet Design, March 26, 2001    

MICROSOFT ENDORSES IEEE 802.1X SECURITY STANDARD FOR WIRELESS AND WIRED LANS
Microsoft announced plans to support the emerging IEEE 802.1x local area networks and security standard in its products, including its forthcoming Windows XP operating system, which is currently entering beta testing.  Microsoft said support for IEEE 802.1x in Windows XP would enable secure, high-bandwidth global roaming for all kinds of mobile users.  Other companies announcing support for IEEE 802.1x include Cisco Systems, 3Com, Agere Systems, Compaq Computer Corp., Dell Computer, HP, Intersil, Wayport and others.   http://www.microsoft.com/presspass/press/2001/Mar01/03-26XPWirelessPR.asp
Microsoft, March 26, 2001  

• The IEEE 802.1x standard aims to enable enterprise-scale deployment of secure wireless and wired networks by defining ways for user identification, centralized authentication and dynamic key management to work across products made by different manufacturers. In addition, by enabling per-session keys as well as periodic reauthentication, organizations can prevent keys from getting stale, further enhancing security.

AGERE ENHANCES ORINOCO WIRELESS LANS WITH GATEWAY AND VOIP FEATURES
Agere Systems announced a suite of new features and capabilities for its ORiNOCO wireless networking system.  New software for ORiNOCO's residential gateway product adds Point-to-Point Protocol over Ethernet (PPPoE) and Dynamic Host Configuration Protocol (DHCP) support for sharing ADSL connections or cable modem connections from the @Home network.  A new Access Point Density feature enables enterprise network managers to create wireless networks that consist of cells of various sizes, densities and performance parameters, with each cell customized to the organization's various needs and environments.  A new load balancing function improves network performance and overall efficiency by ensuring that client devices (the individual stations in an office's wireless network) connect to the access point that can provide the most available bandwidth, rather than just to the closest access point. Additionally, ORiNOCO systems now include built-in VoIP support for Spectralink wireless voice handsets.
http://www.lucent.com/press/0301/010326.mea.html  http://www.orinocowireless.com/
Agere Systems, March 26, 2001

PMC-SIERRA CUTS EARNINGS FORECAST
PMC-Sierra expects Q1 revenues and earnings to be below previously announced guidance due to weak demand and cancellation of backlog during the quarter.  The company expects revenues to be $118-$120 million and pro-forma earnings to be $0.02-$0.03 per share.  PMC-Sierra will also reduce its workforce by 230 employees.  It currently employs 1,740 worldwide.  http://www.pmc-sierra.com/pdf/earnings-outlook20010326.pdf
PMC-Sierra, March 26, 2001

VITESSE TRIMS EARNINGS FORECAST
Vitesse Semiconductor reduced its Q1 revenue forecast from $150-160 million to $120-125 million and its net income (pro forma) from $0.21-0.22 per share to $0.10-0.11 per share.  The company said near-term visibility at a majority of its customers has worsened over the last few weeks and the phenomenon is expected to continue into the next quarter. However, Vitesse said it did not see any indication that its customers were slowing down development or deployment of next generation systems.  http://www.vitesse.com/news/032601.shtml
Vitesse Semiconductor, March 26, 2001

CONEXANT LOWERS EARNINGS FORECAST
Conexant Systems expects revenues for its March-ending second fiscal quarter to be 35-40% lower than the preceding quarter due to continuing weak demand and excess channel inventory.  Personal networking revenues are expected to be lower by approximately 25-30% sequentially due to continued deterioration in the digital cellular handset and set-top box markets. The company anticipates Internet infrastructure revenues will be down by approximately 45-50% sequentially, driven largely by a steep decline in its access product lines.  Conexant announced a workforce reduction approaching 20% and temporary shutdowns of its wafer fabrication facilities.  The company also announced a one-step process for separating the personal networking business and Mindspeed Technologies, the company's Internet infrastructure business.  http://www.conexant.com
Conexant Systems, March 26, 2001