360 NETWORKS TRIMS CAPITAL EXPENDITURES, DELAYS TRANSPACIFIC NETWORK
360networks is cutting its planned capital expenditures in 2001 from $3.5–$4 billion to $2.2-$2.4 billion.  Gross capital expenditures totaled $1 billion in the first quarter of 2001.  The company also trimmed its guidance for 2001 cash revenue from $2.4–$2.6 billion to $1.2–$1.4 billion.  As part of the plan, 360networks will delay the development of a transpacific network and has decided to withhold any further purchases of fiber on C2C, a pan-Asian undersea network.  360networks said its revised business plan was due in large part to “the current weakness of the capital markets, which makes customers and vendors alike hesitant to make significant financial commitments.”  Despite the downturn, 360networks booked $274 million of cash revenue in the first quarter and has more than $550 million of committed revenue in the next three quarters.
http://www.360networks.com/News---Releases---Details.asp?ID=131
360 Networks, May 16, 2001

SBC LOBBIES CONGRESS FOR BROADBAND REGULATORY RELIEF
Edward E. Whitacre, Jr., chairman and CEO of SBC Communications, urged the US Congress to pass the "Internet Freedom and Broadband Deployment Act” to “lift the red tape on DSL” and remove the "major disincentive to compete, to innovate and to invest" in broadband access services.  In an address at the National Press Club today, Whitacre said that "the greatest threat to competition facing American telecommunications consumers is the cable stranglehold in the developing broadband marketplace."  http://www.sbc.com
SBC, May 16, 2001

• Last month, Congressman Billy Tauzin, a Republican from Louisiana, introduced legislation (HR 1542) in the US House of Representatives that would allow the Bell local telephone companies to provide long distance data services within their regions. 

GLOBAL ONE SIGNS FOCAL FOR LOCAL CONNECTIONS IN 21 US MARKETS
Global One and Focal Communications signed a service agreement that enables Global One to offer its customers another choice for voice connectivity in 21 US markets.  Global One and Focal also signed an agreement by which they will work together to market and sell Global One data solutions, including Global Frame Relay and Global ATM.  The relationship will expand to cover IP and VPN services.  http://www.global-one.net
Global One, May 16, 2001

• In January 2000, France Telecom became the sole owner of Global One by acquiring Sprint's and Deutsche Telekom’s stakes in the company for a total equity value of $3.882 billion.  At the time, Global One operated a worldwide ATM-based network reaching more than 800 cities in over 40 countries.  It had 1999 revenues of $1.1 billion.
   
• In September 2000, France Telecom selected Alcatel to design, build, install and maintain its DWDM network across North America.  Nortel Networks was selected to supply its 10 Gbps SONET transmission platforms.  Level 3 Communications will provide 15,000 route miles of long-haul fiber.  The installation will cover 28 points of presence and 270 intermediary sites across the continent.  Commercial services over the backbone will be offered by the Global One organization.

TAHOE NETWORKS TARGETS CONVERGENCE OF MOBILE AND DATA NETWORKS
Tahoe Networks, a start-up based in San Jose, California, announced plans to develop key networking infrastructure required to converge emerging mobile data networks with the Internet.  The company, which is led by former Nortel, Cisco and Sonera executives, will offer a new category of equipment and operations systems for the Mobile Internet Edge (MIE), the point in mobile data networks where mobile data subscribers are aggregated into data networks, and where Internet protocols and services must be adapted to the unique requirements of mobile networks.  Product specifics have not been disclosed.  Tahoe Networks has attracted $38 million in first round funding.  http://www.tahoenetworks.com
Tahoe Networks, May 16, 2001

• Tahoe Networks is led by Anthony Alles, its CEO, and Arthur Lin, its president and CTO, both of who previously were the co-founders of Shasta Networks (acquired by Nortel Networks).  The company’s management team also includes Mika Uusitalo, formerly CTO of Sonera, a leading Finnish mobile operator; Paul Francis, previously at Inktomi, NTT and Bellcore, where he pioneered IPv6 and invented the Network Address Translation (NAT) mechanism; and Martin Lord, previously the CTO for next generation mobile data networking at Ericsson.

CORNING INTRODUCES NEW SPECIALTY FIBER WITH 30% GREATER CAPACITY
Corning introduced a new undersea optical fiber optimized for unrepeatered (short-haul) submarine networks.  The new fiber delivers a 30% greater information-carrying capacity (tighter DWDM channel spacing) than standard single-mode fiber, increasing the amount of optical power the fiber can carry without increasing susceptibility to non-linear effects.
http://www.corning.com
Corning, May 16, 2001

TELLABS ANNOUNCES BUSINESS XDSL MODEMS
Tellabs introduced a series of fully-managed xDSL modems that leverage its MartisDXX multi-service access system to enable businesses to interconnect LANs and provide Internet access.  The MartisDXX network management system remotely manages the DSL modem at the business premise, allowing remote upgrades, re-configuration for new services and bandwidth upgrades to 4.5 Mbps. Tellabs' MartisDXX is a managed multi-service access system that could be used for private branch exchanges, LAN interconnection, digital leased lines, Frame Relay and PSTN connections.  http://www.tellabs.com
Tellabs, May 16, 2001

VDSL SYSTEMS RAISES $12.4 MILLION IN SECOND ROUND FUNDING
VDSL Systems received $12.4 million in a second round of financing.  The company is developing an IP-based Very-high-speed Digital Subscriber Line (VDSL) hardware solution consisting of a central office DSLAM and customer premise equipment.  Investors include UBS Capital, 3i Group; Kennet Capital; and ACR, the investment company of Finnish entrepreneur Tatu Ylonen.  VDSL Systems has dual headquarters in Denver, CO and Espoo, Finland.  http://www.vdslsystems.com
VDSL Systems, May 16, 2001

• In March, VDSL Systems announced commercial availability of its first VDSL platform.  The company claims its system can achieve data rates up to 13/13 Mbps symmetric and 26/3 Mbps asymmetric over a single pair connection and 26/26 Mbps symmetric over a two pair connection in good condition.  The effective range is up to 2.5 miles (4 km), although data rates depend on cable quality, noise and the cross-talk environment. 

FOUNDSTONE SECURES $9 MILLION FOR ITS MANAGED SECURITY SERVICE
Foundstone, a provider of subscription-based Managed Security Services, announced $9 million in equity financing.  Foundstone’s network-based intrusion protection service targets Global 2000 companies.  New investors Riordan, Lewis & Haden and Wilson, Sonsini, Goodrich & Rosati, PC, joined initial investor OVP Venture Partners in this round.  Foundstone is based in Irvine, California.  http://www.foundstone.com
Foundstone, May 16, 2001

PLAYSTATION 2 TO OFFER INTERNET STREAMING MEDIA WITH REALPLAYER
Sony Computer Entertainment will integrate the RealNetworks’ RealPlayer and other RealNetworks client technologies in its PlayStation 2 computer entertainment system and the PlayStation 2 Software Development Kit.  Sony believes that the streaming media technology will allow game developers to create more innovative games, and provide their 10 million current PlayStation 2 users and new customers with access to Internet media through a widely available, familiar platform.  Sony also said that it has developed a Dynamic Network Authentication System, a proprietary authentication system for PlayStation 2 that will leverage RealNetworks' RealSystem iQ technologies to establish a secured copy management system. http://www.realnetworks.com
RealNetworks, May 16, 2001

• RealPlayer has 200 million unique registered users worldwide.  The company claims that over 85% of web pages that feature streaming media use RealNetworks' format.

CISCO TO PROVIDE IPV4 AND IPV6 SOFTWARE FOR SONY’S PLAYSTATION2
Cisco Systems will develop IPv4 and IPv6 dual protocol stack software for Sony Computer Entertainment’s PlayStation2 gaming platform.  Initially Cisco will provide Sony with an IPv4 solution, which will be followed by an IPv4/IPv6 dual protocol stack.  Sony plans to collaborate with service providers to facilitate delivery of high quality digital content services.
http://www.playstation.com/
Sony, May 16, 2001