TDSOFT ACQUIRES CISCO’S HYNEX ATM ACCESS PRODUCT LINE
Tdsoft acquired intellectual properties and all related rights of Cisco Systems' 8110 Broadband Access concentrator, formerly the HyNEX HUNT 7100 concentrator.  Financial terms were not disclosed.  The customer premise product is a managed services gateway to public ATM networks.  It offers a full set of real-time network monitoring, control, and maintenance features for services such as Ethernet/Fast Ethernet, voice and native ATM.  It also offers T1/E1, E3/T3, and SONET/SDH network interfaces.  http://www.tdsoft.com
Tdsoft, June 17, 2001

• In June 2000, Cisco Systems agreed to acquire HyNEX, a developer of ATM intelligent access devices, for approximately $127 million in stock (June 5, 2000 stock prices).  

DIGITAL ISLAND DEPLOYS NARUS USAGE-BASED TRACKING
Digital Island is deploying the NARUS platform to measure the growing number of customer e-business transactions that are handled on its worldwide network. The NARUS platform provides usage-based billing in real-time for streaming media, media content and caching services. Additionally, the NARUS platform monitors SLA metrics.  Financial terms were not disclosed.  http://www.narus.com/
NARUS, June 15, 2001

• In May, Cable & Wireless agreed to acquire Digital Island and its content delivery network for approximately US$340 million, including approximately US$49 million of net debt.  Digital Island’s corporate customers include E*TRADE, UBS Warburg, FT.com, SONY, Cisco and Microsoft. 
  
• Also in May, The Microsoft Network (MSN) selected Digital Island to deliver all of its online advertisements.  The agreement covers more than 860 million ads per day worldwide, including ads on MSN eShop, Search and Hotmail, as well as on the MSNBC.com Web sites and MSN's Instant Messenger service. 

SKYBRIDGE DEMOS VIDEO CONTENT DELIVERY TO DSLAMS
SkyBridge, the broadband satellite venture led by Alcatel, plans to stream MPEG4 and IP-DVB video content to DSLAMs as a broadband delivery service aimed at DSL network operators.  The SkyBridge service would compress and securely broadcast video streams from a central hub to a Digital Video Broadcast (DVB) terminal at a telecom operator's DSLAM sites. Video streams then travel over the twisted copper pair to either the customer's DSL modem connected to a PC, or to a set-top box connected to a television.  http://www.skybridgesatellite.com
SkyBridge, June 15, 2001

• In March, SkyBridge began offering wholesale broadband IP services via satellite to service providers using leased geostationary satellite capacity.  The announcement expands the operational scope of the company, which had previously been focused solely on launching its own satellites.  SkyBridge itself will invest in the ground infrastructure and delivery platform for access services, a portfolio of content distribution services as well as value-added services such as e-learning.  The company said it remained 100% committed to its own Low Earth Orbiting (LEO) satellite constellation.
  
• SkyBridge is backed by Alcatel and supported by Loral Space & Communication, EMS Technologies, COM DEV of Canada, Thompson, Mitsubishi Electric, Sharp, Toshiba and others.  SkyBridge has previously disclosed plans to deploy a "constellation" of 80 satellites operating in the Ku-band (10-18 GHz) and orbiting at an altitude of 913 miles (1,469 km).  The low-earth-orbit would allow for short signal propagation time of 30 milliseconds.  The satellites would provide "bent pipe" connections, meaning no onboard processing or switching would occur.  Over 140 gateway stations worldwide will relay traffic from the satellites to terrestrial fiber networks. Localized traffic processing will occur within the gateway.

FLAG ATLANTIC-1 ENTERS COMMERCIAL SERVICE
FLAG Atlantic-1, a multiterabit cable linking New York, London and Paris, entered into commercial service.  FA-1 is a six fiber pair, dual cable network offering 4.8 Tbps of total raw capacity (2 x 2.4 Tbps).  FLAG Telecom is offering several services, including leased fiber pairs, optical wavelengths (10Gbps), SDH services (STM-x) and managed services. The final splice of the network’s southern cable is currently underway and will be complete by Q3.  The total cost of the cable was $1.1billion and the project was completed on budget.  http://www.flagtelecom.com
FLAG Telecom, June 15, 2001

360NETWORKS MISSES KEY INTEREST PAYMENT, RETAINS LAZARD FRERES
360networks missed a scheduled bond interest payment of US$10.9 million that was due on June 15, 2001. The company has another 30 days to make the payment in order to avoid default consequences.  360networks said it did not make the scheduled payment to preserve cash.  It also retained Lazard Freres to help review its financial options.  http://www.360.net
360networks, June 15, 2001

STMICROELECTRONICS INTRODUCES “STRADIVARIUS” VOIP CHIP
STMicroelectronics introduced a system-on-chip device designed for VoIP applications in enterprise IP phones, small gateways, integrated access devices and other emergent products.  The “Stradivarius” chip integrates a low power DSP core, an ARM 32-bit RISC microcontroller core, two 10/100 Base-T Ethernet ports and on-chip memories.  To design an IP phone, the only other parts required would be an analog interface, optional Flash memory for upgradeable software and Fast Ethernet physical layer devices, all of which ST also supplies. http://www.st.com
STMicroelectronics, June 17, 2001

ATHEROS GAINS APPROVAL FOR ITS 5-GHZ WIRELESS LAN IN JAPAN
TELEC, the official Japanese certification agency, approved Atheros' 5-GHz wireless LAN reference designs for both wireless LAN cards and access points for use in Japan. The Atheros reference designs are the first IEEE 802.11a standard-based solutions to be approved by TELEC.  Atheros said its chipset would also comply with the Association of Radio Industries and Businesses (ARIB), STD-T71 Japanese national standard.  The chipset operates at up to 54 Mbps compliant with the IEEE 802.11a standard and up to 72 Mbps in Atheros' "Turbo" mode. http://www.atheros.com/news/TELECrelease.html
Atheros, June 2001

• Atheros believes that 5-GHz 802.11a wireless solutions will be deployed faster than people predict because signals will not have to compete with Bluetooth, garage-door openers, microwave ovens, cordless phones and baby monitors.
  
• Atheros was founded by Teresa H. Meng, a professor at Stanford University. Richard A. Redelfs, formerly general manager of 3Com’s Wireless and Home Connectivity Division, joined Atheros as president and CEO in October 1999.

ZARLINK CHOOSES SILICON GERMANIUM FOR LOW-POWER COMMUNICATIONS CHIPS
Zarlink (formerly Mitel Semiconductor) will produce its next wave of low-power communications chips using IBM’s Silicon Germanium (SiGe) process technology.  Product plans include radio frequency (RF) tuner chips for digital TVs, set-top boxes and cable modems, plus cellular phone chips for multi- frequency handsets and base stations.  http://www.zarlink.com
Zarlink, June 14, 2001

WU-FU CHEN JOINS CRIMSON VENTURES
Wu-Fu Chen, a noted entrepreneur in the networking industry, has joined Silicon Valley-based Crimson Ventures to lead its communications investment practice. Crimson is a venture capital firm with US$500 million under management and 35 investments in Silicon Valley and throughout the Pacific Rim.  http://www.crimsonventures.com
Crimson Ventures, June 15, 2001

SANTUR SECURES FUNDING FOR TUNABLE LASER DEVELOPMENT
Santur, a start-up based in Fremont, California, secured $10 million in lease financing for its development of tunable lasers.  The new funds are in addition to $20 million in first round venture funding that the company closed in February.  Santur is working on a next generation tunable transmitter with a high-powered, widely tunable DFB-like laser source that is ideal for high bit rate, long haul applications.  Future product lines include tunable passive components in addition to tunable lasers with modulation and high speed tuning.  http://www.santurcorp.com/ 
Santur, June 14, 2001 

NORTEL NETWORKS EXITS ACCESS BUSINESSES, ANNOUNCES FURTHER LAYOFFS, LOSSES
Nortel Networks reduced its financial outlook and now expects revenues from continuing operations of approximately US$4.5 billion and a net loss per common share of approximately US$0.48, excluding restructuring charges.  Nortel Networks also expects to take a charge of approximately US$12.3 billion in Q2 to write down various intangible assets associated with the acquisitions of Alteon WebSystems (content switches), its 980 nanometer pump-laser chip business, Xros (MEMs optical switching systems) and Qtera (long-haul optical transmission).  This charge will be in addition to the ongoing amortization of intangibles estimated to be approximately US$2.0 billion.  The company will also discontinue its access operations, including its narrowband and broadband access solutions (as well as its interest in Arris Interactive and investment in Elastic Networks) and the Promatory Communications and Sonoma Systems businesses it acquired.  Nortel Networks is also planning a further reduction of approximately 10,000 employees, on top of the 20,000 positions cut earlier this year.  Among the factors cited by Nortel Networks for the poor performance was a significant sequential decline from Q1 2001 in its optical inter-city and circuit switching sales, primarily in the US.  http://www.nortelnetworks.com/corporate/news/newsreleases/2001b/06_15_0101491_
q2_outlook.html
Nortel Networks, June 15, 2001

• Nortel acquired Promatory Communications, which developed a multiservice access aggregator that combined multiple DSL transmission types with ATM switching, for US$778 million of stock in January 2000, and Sonoma Systems, a developer of ATM-based integrated access devices, for US$540 million in stock in August 2000.