XO LAUNCHES METRO WAVELENGTH SERVICES
XO Communications introduced OC-12 (622 Mbps), OC-48 (2.5 Gbps) and OC-192 (10 Gbps) metro wavelength services in each of its 62 US markets.  The XO Metro Wavelength Service (MWS) is a protected, and protocol transparent service targeted at both carrier and enterprise customers.  The service could be used to carry traffic between multiple sites in a metro region at a fixed monthly cost.  XO is currently carrying up to 33 wavelengths per fiber strand.  http://www.xo.com/news/79.html
XO Communications, July 19, 2001

• In April, XO Communications announced revised agreements with Level 3 covering deployment of fiber networks in the US and Europe.  Under the new arrangement, XO will cancel its planned purchase of metro and inter-city fiber networks in Europe from Level 3, sell certain transmission equipment it has purchased to Level 3 in exchange for a credit for lit wavelengths of inter-city capacity and give up certain rights to purchase a portion of the fibers installed in certain additional conduits in the Level 3 North American network.  In June, Forstmann Little & Co., a private equity firm, invested an additional $250 million in XO.

BROADWING REVENUE INCREASE DRIVEN DATA GROWTH
Broadwing reported quarterly revenue of $608 million, up 22% over last year.  The company reported a net loss of $0.14 per share for the quarter versus a net loss of $0.18 per share, excluding non-recurring items, in the same quarter in 2000.  Broadwing Communications, the company's national broadband services business, revenues grew 33% to $319 million.  Data revenues propelled 91% of revenue growth and now comprise $195 million or 61% of total revenue.  During the quarter, Broadwing won a $180 million contract to supply wavelength services to Teleglobe.  In addition, Broadwing was able to provision 31 OC-192 segments, representing over 310 Gbps in nationwide capacity, to a major carrier customer in less than 45 days.  Broadwing's local-exchange company, Cincinnati Bell Telephone, now has 50,000 ADSL subscribers.  http://www.broadwing.com/press/releases/2001q3/07_19_2001.asp
Broadwing, July 19, 2001

SEMPRA COMMUNICATIONS TARGETS FIBER-THROUGH-GAS LINES
Sempra Communications, a subsidiary of Sempra Energy, announced a proprietary process to place fiber optic cables into the existing infrastructure of natural gas pipelines.  The process encases the fiber-optic cable in a polyethylene conduit that is inserted into natural gas distribution lines. The conduit is the same material used in plastic gas distribution pipes.  The company believes the technique will be far less disruptive for deploying new fiber in cities than conventional means.  http://www.sempra.com/news/news_releases.html 
Sempra, July 19, 2001

• Sempra Communications is also building its own fiber network to serve US and Mexican border cities to the west of Phoenix, including Mexicali, Tijuana, and San Diego.
• Sempra Communications is a member of a group of 12 natural gas, gas and liquid petroleum pipeline and communications companies that own equity in Aerie Networks – a venture to build a new nationwide backbone featuring 432 strands of long-haul fiber.
• CityNet Telecommunications is building fiber-through-sewer networks in US and European cities.  CityNet installs the fiber using a computer-controlled robot developed by Ka-Te Systems AG of Zurich, Switzerland.  In April, CityNet closed a second round of equity worth $175 million, with an additional $100 million in debt financing, for its projects

SPRINT’S MMDS BROADBAND DIRECT WIRELESS REACHES 40,000 CUSTOMERS
In its quarterly financial report, Sprint said its Broadband Direct service is now reaching 40,000 customers.  Previously, the number of subscribers had not been publicly disclosed.  Meanwhile, Sprint’s Local Telecommunications division increased its total number of DSL lines served to over 35,000.  DSL revenue per user for the quarter was $57, a $2 increase sequentially.
http://www3.sprint.com/PR/CDA/PR_CDA_Press_Releases_Detail/1,1579,3120,00.html
Sprint, July 19, 2001

ALCATEL ANNOUNCES CONTRACTS WITH TELEMAR, DEUTSCHE TELEKOM, E-PLUS
Alcatel announced a $275 million contract with Telemar, the largest telecommunications operator in Brazil, to provide a turnkey GSM 1800/GPRS network.  Separately, Alcatel will supply Deutsche Telekom with 1.2 million kilometers of cabled optical fiber through 2003.  The deployment will include optical cables with 8 to 196 individual standard single-mode fibers (SSMF).  Finally, E-Plus, Germany’s third-largest mobile operator, agreed to use Alcatel’s LMDS to provide mobile backhaul transmission in its GSM and UMTS networks.  http://www.alcatel.com
Alcatel, July 19, 2001

FRANCE TELECOM OPENS R&D LAB IN JAPAN
France Telecom opened a research lab in Tokyo to focus on advanced technologies of particular interest to the region, including wireless telephony, future terminals, games, virtual reality, intelligent transportation applications and domestic networks.  France Telecom also operates international R&D labs in Brisbane, California and New York.  http://www.francetelecom.com/vanglais/whats_in_the_news/home_f.html
France Telecom, July 19, 2001

TRILLIUM PHOTONICS NAMES NEW CEO
Trillium Photonics, a start-up developing optical amplifier technology, named Brian Jervis as President and Chief Executive Officer.  Jervis most recently served as CEO of Kestrel Solutions, another start-up targeting optical frequency division multiplexing systems.  Trillium Photonics is based in Ottawa, Canada.  http://www.trilliumphotonics.com
Trillium Photonics, July 19, 2001

• Trillium Photonics was spun off from Canada’s National Research Council.
• In June, Kestrel Solutions announced plans to acquire TeON Optical Networks, another start-up developing a common technology for a new generation of advanced optical networking transport equipment.  Marty Kaplan, currently the President and CEO of TeON, was named interim CEO of Kestrel.  Kaplan formerly served as Senior Vice-President and Chief Technology Officer for Sprint.

NORTEL NETWORKS REPORTS Q2 REVENUE OF $4.61 BILLION, DOWN 25% SEQUENTIALLY AND 36% FROM 2000
Nortel Networks reported quarterly revenue of US$4.61 billion, down from US$7.21 billion in the same period in 2000.  Pro forma net loss from continuing operations was US$1.55 billion, or US$0.48 per common share.  Compared to the same period last year, network Infrastructure revenues decreased 39%; photonic components segment revenues were down 78% largely due to considerably lower sales of Nortel Networks Optical Inter-city solutions; and other revenues were down 20%.  Of the previously announced net aggregate reduction of approximately 30,000 positions, Nortel Networks has completed approximately 23,000 reductions to date.  The remaining reduction of 7,000 positions is expected to be completed over the next eight weeks.  http://www.nortelnetworks.com/corporate/news/newsreleases/2001c/07_19_0101522_q2_earnings.html
Nortel Networks, July 19, 2001

• In April, Nortel Networks reported Q1 revenues of US$6.18 billion, compared to US$6.32 billion for the same period in 2000 and US$8.82 billion for Q4 2000.