1. NGN Ventures:  McQuillan’s Overview
2. NGN Ventures:  The Latest in Lasers
3. NGN Ventures:  High Performance Semiconductors
4. Start-up Directory – 600 Networking Start-up Companies by name, region, or technology
5. e-xpedient Introduces 100 Mbps Radio / Free Space Optical Access in Miami
6. Bell Canada Implements Cisco MPLS for IP VPNs
7. Global Crossing Launches MPLS-based IP Backbone Transport
8. TyCom and FLAG to Jointly Develop Transpacific Network
9. Motorola and Conexant to Jointly Develop Silicon Solutions
10. CiDRA Withdraws IPO – A Developer of Tunable Photonics
NGN VENTURES:  MCQUILLAN’S OVERVIEW
Speaking at this week’s Next Generation Network Ventures conference in Burlingame, California, Dr. John McQuillan postulated that economic downturns favor upstarts and that watching the top venture-backed newcomers is the best way to gauge the future of the networking industry.  Nevertheless, with slower network growth ahead and the reality of the capital markets, McQuillan warned that a fundamental mistake is to think that bigger, faster, smarter equipment will solve the problem of how to make money on the Net.  He divides networking start-ups into two camps:  those developing disruptive technologies, like tunable lasers, Gigabit Ethernet for public networking, and photonic cross-connects and those pursuing sustaining innovations, like network processors, next generation SONET, core routing and MPLS switches.  Given the reality that network rollouts are now being funded by the established carriers, McQuillan argues that the current economic climate favors start-ups with sustaining innovations.  By the time the next economic cycle begins, McQuillan predicts some disruptive innovators will find a new window of opportunity.  His observation: the Renaissance occurred as feudalism collapsed across Europe… and after a third of the population had succumbed to the Black Plague.
April 17, 2001

NGN VENTURES:  THE LATEST IN LASERS
Compared to the semiconductor industry, the Optical components business is still in the “pre-transistor” era and the age of optical networking is just getting started, according to Dr. Rick Gold, CEO of Genoa. His company is working on a single-chip, linear optical amplifier that could replace the bulky, expensive EDFA amplifiers of today. Genoa's single chip linear optical amplifier (LOA) is expected to be about 100-times smaller than a typical EDFA-type optical amplifier and will be built using Indium Phosphide technology.

The photonics industry is currently moving at Moore’s Law Squared, according to Eran Yarkoni, President of CyOptics, delivering a 4X bandwidth capacity increase every 18 months.  CyOptics is developing Indium Phosphide active components for 40 Gbps, the next step-up in modulation rates.  The Indium Phosphide fabrication process makes it possible far smaller packaging and much lower costs.

DWDM systems driven by tunable lasers provide both economic and strategic advantages over today’s fixed wavelength systems, said Hatch Graham, Chairman and CTO of Bandwidth9.  If used for hot standbys and spares, a few tunable lasers could replace whole racks of fixed lasers, yielding dramatic savings for metro networks.  Strategically, Graham anticipates that tunable lasers will be used for the remote provisioning of wavelength-on-demand services.  Bandwidth9 is developing a MEMs-based, single-cavity VCSEL laser that can tune to the entire C-band and L-band wavelengths.  The VCSEL/MEMs technology will also offer wavelength filtering capabilities, enabling it to provide add/drop functionality.

Dr. Larry Coldren, Chairman and CTO of Agility Communications, believes a 100-fold increase in bandwidth demand is still possible, despite the market conditions.  His company is betting that tunable lasers will be the enabling technology that lowers the cost of bandwidth and thus drives demand.  Agility’s initial product is a 4mW, widely tunable laser with no moving parts and built with Indium Phosphide technology.  The InP fabrication, Coldren argues, is key to the evolution of optical components because it allows for the integration of tunable lasers with other devices, such as modulators, amplifiers, and all-optical wavelength converters.
April 17, 2001

NGN VENTURES:  HIGH PERFORMANCE SEMICONDUCTORS
In the old networking R&D model, systems companies developed all aspects of their boxes by themselves.  This has given way to a new model, according to Daryn Lau, President & CEO of ZettaCom, that is an “ecosystem of best of breed companies” in which system vendors become “alchemists of innovation,” pulling together the best ideas of numerous companies, especially key silicon advancements.  ZettaCom is developing core switching and protocol processing silicon solution for highly scalable, multi-service optical systems.

Perry Constantine, President & CEO of Silicon Access Networks, said that service providers must become profitable and must do so by finding new ways to bring value to their customers.  In the coming years, they will face increasing pressure to provide dynamic bandwidth allocation, to allow user driven provisioning, to bill based on usage, and to manage increasing complexity of traffic.  Constantine believes these needs give network processors many advantages over an ASIC approach in system development, particularly in time to market.  Silicon Access is developing a chipset for deep packet processing with native support for both 10 gigabit Ethernet (10GE) and OC-192.

Integrated multi-service customer premise devices make up a huge market with a strong need for processors, according to George Alexi, President & CEO of BRECSIS Communications.  These systems will have to work with existing technologies like ATM and Frame Relay, as well as IP.  “The old technologies don’t die as fast as the marketing guys say, and the new technologies don’t grow as fast as they say,” commented Alexi.  BRECIS has set its sights on a Multi-Service Processor architecture for next generation customer premises equipment.

Shri Dodani, President & CEO of VxTel believes that there is an enormous opportunity for network processors in the Voice over Packet market.  Dodani believes that service providers want converged, multi-service, multi-protocol networks that address the more than 800 million phone lines already in existence.  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.  Intel agreed to acquire VxTel in February for approximately $550 million in cash.
April 17, 2001

START-UP DIRECTORY – 600 NETWORKING START-UP COMPANIES BY NAME, REGION, OR TECHNOLOGY
Our Directory of Networking Start-ups now includes more than 600 companies.  You can find start-ups by name, region, or technology on our Web site.  http://www.convergedigest.com/DirectoryStartupsX.asp

E-XPEDIENT INTRODUCES 100 MBPS RADIO / FREE SPACE OPTICAL ACCESS IN MIAMI
e-xpedient, a start-up service provider, announced a commercial, 100 Mbps access service in Miami, Florida that uses free-space optics (FSO) and 60 GHz broadband fixed-wireless radios.  e-xpedient said its 60 GHz radios allow for very dense deployments without interference issues and without complicated frequency planning.  The company has previously announced agreements to acquire eleven 38 GHz broadband fixed wireless licenses in major metro markets across the US.  http://www.e-xpedient.com
e-xpedient, April 17, 2001

  • e-xpedient is headed by Brian J. Andrew, who also founded Triton Network Systems, a developer of broadband fixed-wireless equipment.
  • Last October, e-xpedient secured $55 million in equity financing from Invesco Private Capital, Employees' Retirement Plan of KeySpan Corporation, KeySpan Corporation Employee Benefit Trust for Management Employees - Medical Benefits, and initial investors Adams Capital Management, Advent International, Dolphin Communications, and Patricof & Co. Ventures Inc.

BELL CANADA IMPLEMENTS CISCO MPLS FOR IP VPNS 
Bell Canada introduced an IP VPN Enterprise service, offering three levels of service, which customers can manage online.  Bell Canada’s IP backbone, which handles 75% of Canadian Internet traffic, uses Cisco Systems' MPLS technology.  The service is being offered across Canada and in several US cities.  Bell Canada’s three service tiers are:

  1. Standard class: basic service for e-mail, file transfer and non-critical Internet access
  2. Priority class: allows for applications such as critical Internet access, point-of-sale and streaming video 
  3. Near real-time class: allows for applications such as voice-over IP and video conferencing

http://www.bell.ca/en/about/news/releas/2001/pr_20010417.asp
Bell Canada, April 17, 2001

GLOBAL CROSSING LAUNCHES MPLS-BASED IP BACKBONE TRANSPORT
Global Crossing has implemented Multi Protocol Label Switching-traffic engineering (MPLS-te) as a backbone transport technology across its global, meshed network using equipment from Juniper Networks.  The technology enhances network manageability between the SONET and IP layers.  Global Crossing expects that MPLS-based service protection will soon surpass SONET restoration times.  The company also sees MPLS as a key driver of new IP-based services, including VPNs.  http://www.globalcrossing.com/pressreleases/pr_041701b.htm
Global Crossing, April 17, 2001

TYCOM AND FLAG TO JOINTLY DEVELOP TRANSPACIFIC NETWORK
TyCom and FLAG Telecom agreed to join their previously announced transpacific network projects in a shared development arrangement that will result in a single, undersea cable system.  Under the deal, TyCom will receive contracts to build the complete transpacific ring, part of which will become the FLAG Pacific-1 network, for US$1.7 billion, which includes all undersea cable, electronics and cable stations. TyCom will purchase from FLAG Telecom four fiber pairs on that ring to create the TyCom Transpacific portion of the TyCom Global Network (TGN).  The undersea cable will be approximately 24,100 km long and will connect Japan to the West Coast of the United States, then return to Asia via Hawaii and Guam.  It will feature an 8-fiber pair architecture, using both 64- and 96- channel DWDM, to provide a maximum capacity up to 7.68 Tbps.  Commissioning is expected in Q2 2002.  http://www.tyco.com/
TyCom, April 17, 2001

  • Tyco International acquired AT&T's Submarine Systems division in 1997.  The company operates a fleet of ships for laying communication cables for international telecom carriers.  Tyco International, TyCom's parent company, announced its intention to build and operate its own undersea global fiber network in January 2000.
  • In February, TyCom signed a partnership agreement with DishnetDSL Limited of India to build an eight fiber pair, 19,000-km undersea ring network with a 7.68 Tbps maximum capacity interconnecting Chennai, India with Singapore, Guam and Jakarta, Indonesia.

MOTOROLA AND CONEXANT TO JOINTLY DEVELOP SILICON SOLUTIONS
Conexant Systems and Motorola agreed to jointly define, develop and manufacture system silicon solutions for broadband communications devices.  Conexant will supply standard cable modem chipsets to Motorola and will support Motorola as a second source for these devices.  The companies will also collaborate to create new, customized silicon solutions for cable modems, digital set-top boxes and VoIP products.  http://www.conexant.com 
Conexant, April 17, 2001

CIDRA WITHDRAWS IPO – TUNABLE PHOTONICS
In light of current market conditions, CiDRA, a developer of tunable photonic components and subsystems, submitted an application to the Securities and Exchange Commission to withdraw its Registration Statement for an initial public offering.  http://www.cidra.com/
CiDRA, April 17, 2001

  • Last June, CiDRA secured $100 million in equity financing to ramp-up its manufacturing capacity as well as accelerate its product development activities.  CiDRA's components/modules are based on a proprietary fiber and Bragg grating packaging technology that permits accurate tuning of wavelengths.  Applications could include tunable DWDM channel filters, channel analyzers, tunable fiber lasers and reconfigurable optical add-drop multiplexers.
  • CiDRA is led by Kevin Didden, formerly Manager of Technology Application for the United Technologies Research Center. The company is based in Wallingford, CT.
 

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