BROADWING LIGHTS ITS ALL-OPTICAL SWITCHED NETWORK NATIONWIDE
Broadwing Communications lit its all-optical switched network nationwide.  Its eastern optical ring was completed in February, followed by its central optical ring in March.  The all-optical network now spans 18,500 miles across the US.  Broadwing completed its field trial of Corvis' long-haul network technology last June.  In December, Broadwing deployed CIENA’s CoreDirector optical switching systems to provide on-ramps to the network.  Broadwing said its new network would enable it to deliver liquid bandwidth, “which for customers means bandwidth that can be poured anywhere, anytime, in any amount, and billed only for what is used.”  http://www.broadwing.com/press/releases/2001q1/04_05_2001.asp
Broadwing, April 5, 2001

SYCAMORE TRIMS FINANCIAL OUTLOOK, CONSOLIDATES OPERATIONS
Sycamore Networks announced that its revenue and earnings for the quarter ending April 28, 2001, would be lower than previously projected primarily due to lower than expected customer orders.  The company anticipates revenue in the range of $50 million to $60 million and expects to report a pro forma net loss for the fiscal third quarter in the range of $38 million, or $(0.16) per share, to $45 million, or $(0.19) per share. Sycamore’s plans to restructure its operations include the consolidation of the company's two transport business units into a single entity, delay of facility expansion, inventory and fixed asset write-downs, and the reduction of approximately 140 employees, 13% of the company's workforce. http://www.sycamorenetworks.com/about/news/pressreleases.cfm?news_item_id=465
Sycamore Networks, April 5, 2001

• In a conference call, Sycamore attributed its dramatic revenue shortfall to lower capital expenditures at two of its largest carrier customers (which resulted in little to no booking for the quarter), $30 million in cancellations and delays from a smaller customer, and delays in shipping its 16000 core optical switch.  The company also declined to provide vendor financing for a new carrier build-out, leading to a loss of that deal.  Sycamore said that it “will not be generating cash from operations for the next several quarters.” 

• For the second quarter ended January 27, 2001, Sycamore Networks reported $149 million in revenue.  The company shipped products to 14 service provider customers and one international distributor.  Williams accounted for over 50% of the company's revenue, and there were two other customers each accounting for over 10% of revenues.

FLAG TELECOM AND VERIZON FORM EUROPEAN NETWORK ALLIANCE
FLAG Telecom will collaborate in the development and use of Verizon's recently announced city-to-city European backbone network.  Under the alliance, certain European dark fiber and collocation facilities owned by FLAG Telecom will be purchased by Verizon. Verizon will own, operate and manage the city-to-city backbone network, while FLAG Telecom will provide and manage its own IP layer and collocation space for its customers.  Financial terms were not disclosed.  http://www.verizon.com  http://www.flagtelecom.com
Verizon, April 5, 2001

• Verizon Communications, Dallah Albarakah (Saudi Arabia), General Electric Capital Corp., Telecom Holding Co. (Thailand), Marubeni (Japan) and Asia Infrastructure Fund (Hong Kong) are the principal shareholders in FLAG Telecom.
• In February, Verizon announced plans to build and operate a global voice and data network linking the US with major cities in Europe, Asia and Latin America.  To deploy the network, Verizon will acquire and manage fiber-optic cable, switching and transmission equipment, transmission facilities, and related network management software.  Verizon said that routing international calls over its new network rather than via other carriers could save the company more than $300 million in transport costs over five years.  Verizon notes that 40 percent of all international long-distance traffic in the United States originates in its service territory.
• FLAG Telecom’s FLAG Europe-Asia cable, which entered service in November 1997, stretches from the UK to Japan.  The new FLAG Atlantic-1 undersea network will offer a dual terabit capacity cable and is expected to enter commercial service shortly.

GTS REPORTS PROGRESS IN RESTRUCTURING
Global TeleSystems  (GTS), the parent company of Ebone, reached agreement with a committee of Esprit Telecom senior noteholders to exchange its voice-based Business Services unit for the retirement of $500 million in debt.  GTS also sold 49.8% of its Russian subsidiary, Golden Telecom, to Russia’s Alfa Group for $125 million in cash.  GTS also raised $135 million in cash from the sale of its equity interest in the Flag Atlantic-1 (FA-1) cable, and it entered into an amended 300 million euros credit facility with Bank of America, Deutsche Bank and Dresdner Kleinwort Wasserstein.  GTS now believes it is funded into 2002, with “excellent” prospects for its Ebone network.  http://www.gts.com/
Global TeleSystems, April 5, 2001

• GTS acquired Esprit Telecom, a provider of voice and data services, in March 1999 for approximately $1 billion in stock and the assumption of debt.
• In November, GTS announced a corporate restructuring to focus on broadband IP services over its European fiber network.  The company said its main focus will be to provide carriers, ISPs, ASPs and Web-centric customers with managed bandwidth and data products, including IP VPNs, dedicated hosting, high-capacity direct Internet access, and streaming media services.
• Ebone was originally founded in Copenhagen in 1991 as Europe's first Tier 1 IP backbone, and subsequently was acquired by GTS in 1998.  http://www.ebone.com/

ERICSSON SIGNS $400 MILLION IN CONTRACTS FOR GSM AND IP NETWORKS IN CHINA
Ericsson will provide China’s Shandong Telecom with its AXI 580 IP backbone routers (Juniper Networks M160) and for Shandong Telecom's inter-city broadband IP networks. Ericsson won a similar contract from Shandong Telecom in November last year.  Ericsson will also supply its AXI 520 IP routers (Juniper’s M20) for all nodes of China Telecom's second data communications expansion project. In a third agreement, Ericsson will also provide Packet Backbone Network equipment including both the AXI 520 and AXI 580 routers to Jiangsu Mobile.  AXE switches and ADSL equipment will be delivered to Liaoning Telecom.  Finally, Ericsson will also supply GSM equipment to Shandong Mobile, Hebei Mobile, Yunnan Unicom, Hubei Mobile, Chongqing Mobile, Jiangsu Mobile and Xinjiang Mobile.  The contracts have a combined value of more than US$400 million.  http://www.ericsson.com/press/20010405-0071.html
Ericsson, April 5, 2001

FRANCE TELECOM TO SUPPLY $26 MILLION IN ATM SERVICES TO CAP GEMINI
Cap Gemini Ernst & Young, one of the top five management and IT consulting firms, selected France Telecom to provide global ATM services linking 40 corporate sites in Europe, North and South America, and Asia.  The $26 million contract, which includes all local connectivity, covers voice, data, and Internet traffic at speeds of 1.5 Mbps to 155 Mbps.  The services will be provided by Global One, a member of the France Telecom Group and its principal arm for serving multinational businesses.  http://www.francetelecom.com
France Telecom, April 5, 2001

ANDES NETWORKS AND CHRYSALIS-ITS TEAM ON SSL AND PKI-ENABLED SECURITY
Andes Networks and Chrysalis-ITS announced a strategic alliance to drive SSL and PKI-enabled security on the Internet.  Andes Networks will incorporate the Chrysalis-ITS high assurance key management technology into its ASIC-based Packetized SSL Accelerator platforms. Chrysalis-ITS will incorporate Andes Networks' Packetized SSL Accelerator platforms in its server side authentication and signing systems to complement its existing key protection capabilities.  http://www.andesnetworks.com  http://www.chrysalis-its.com
Andes Networks, April 5, 2001

• VeriSign currently depends on Chrysalis-ITS key management solutions to secure its Digital Certificate Services.

ONI SUPPLIES OC-192 SYSTEMS TO QWEST
Qwest’s Local Broadband Division is continuing to deploy ONI Systems’ optical transport platform to deliver OC-192 services to its metro customers.  Late last year, Qwest also selected ONI as one of its DWDM providers for its in-region local ATM network.  Financial terms were not disclosed.  http://www.oni.com
ONI Systems, April 5, 2001

AIRFIBER SECURES $50 MILLION FOR FREE SPACE OPTICAL
AirFiber, a start-up based in San Diego, California, secured $50 million in venture funding for its development of wireless optical networking equipment.  Free space optics deliver broadband services using eye-safe beams of light over the air instead of through fiber.  AirFiber is working on systems that combine automatic tracking, automatic acquisition and alternate route (or mesh) system design.  Investors include GM Capital Partners, London Merchant Securities and others.  http://www.airfiber.com/news/news0405funding.htm
Air Fiber, April 5, 2001

• Last April, Nortel Networks signed an OEM agreement to resell AirFiber's free-air lasers.
• AirFiber is led by Jim Dunn, who previously co-founded Primary Access Corporation (acquired by 3Com).

TERAXION RAISES US$15 MILLION FOR OPTICAL COMPONENTS
TeraXion, a start-up based in Quebec City, Canada, raised US$15 million in first round venture funding.  The company is developing high-performance components based on Fiber Bragg Grating technology with improved optical specifications.  Its first product is a thermal 25 GHz WDM filter that was launched at the OFC 2001 conference last month.  Investors include Sumitomo Corporation Group, Wynnchurch Capital, Robertson Stephens, Business Development Bank of Canada, Innovatech Quebec and Royal Bank Capital Partners.  http://www.teraxion.com/
TeraXion, April 5, 2001

• TeraXion was co-founded by Alain Chandonnet, formerly project manager and director of the Photonics Group at INO (Institut National d'Optique), Alain-Jacques Simard, and Dr. Martin Guy, formerly head of technology for the Optical Communications team at INO.

BREEZECOM TO MERGE WITH FLOWARE, COMBINING WLANS AND FIXED BROADBAND WIRELESS ACCESS
BreezeCOM will acquire Floware Wireless Systems Ltd. in a stock-for-stock transaction under which each ordinary share of FLRE will be converted into 0.767 ordinary shares of BRZE.  BreezeCOM’s portfolio of broadband wireless solutions are based on a packet switching point-to-multipoint wireless platform.  Products include broadband wireless access solutions for service providers in licensed frequency bands such as 2.5GHz MMDS and 3.5GHz, as well as in the license-free 2.4 GHz ISM band, wireless LANs based on the IEEE 802.11 standard, and E1/T1 Modems for point-to-point connectivity.  Floware supplies point-to-multipoint fixed broadband wireless access (BWA) systems in the 3.5, 10.5 and 26 GHz radio frequency bands.  Floware currently has more than 60 deployments worldwide.  Both companies are based in Israel.  The combined company will be renamed.  http://www.floware.com  http://www.breezecom.com
BreezeCOM, April 5, 2001