• iNCUBiC is a new venture capital firm and incubator that will offer seed capital and follow on rounds of investment.  The firm will also help companies kick-start their products by offering a rapid prototyping development facility.  The founders and Managing Directors of iNCUBiC are Milton Chang (formerly with New Focus and Newport), Judy O’Brien (Wilson Sonsini), Tom Baer (Arcturus Engineering, Spectra-Physics) and Bill Nighan (Spectra-Physics Lasers).  http://www.incubic.com/ 

US INTERNET USERS INCREASE BY 16% DURING LAST YEAR, GROWTH RATE SLOWS
According to a report by Nielsen//NetRatings, the number of Internet users in the United States increased 16% from July 2000 to July 2001, much slower than the 41% growth of the previous year.  The percentage of Americans with home access to the Internet increased to 58% in July 2001, compared to 52% in July 2000 and 39% in July 1999.  Nielsen//NetRatings also found that users are spending more time online and logging on more frequently.  Web users spent an average of 10 hours and 19 minutes online during the month of July 2001, rising 7% from nine hours and 41 minutes spent in July 2000.  Surfers also accessed the Internet more often, jumping 11% in the past year.  The study is based on Nielsen//NetRatings’ collection of real-time data from 62,000 at-home and 8,000 at-work panel members in the United States.  www.nielsen-netratings.com 
Nielsen//NetRatings, August 13, 2001

*  Active Users is the total number of users who accessed the Web at least one time for the given time period.
** Total Universe is the total number of users who had access to the Web during the month, but did not necessarily log on during the given time period.

HANARO BREAKS 1.5 MILLION BROADBAND SUBSCRIBER MARK IN KOREA
Hanaro Telecom, one of Korea’s largest broadband Internet access and local telephone service providers, announced that its number of broadband subscribers reached 1,569,325 as of June 2001, a 23% increase from March.  As of the end of June, 53% of Hanaro’s broadband subscribers were ADSL customers, with Cable (45%) and LMDS (2%) making up the balance.  Fourty percent of ADSL customers subscribe to telephony service bundled with broadband access.  Hanaro says that it plans to add 500,000 more broadband subscribers during the second half of 2001 in order to expand its broadband subscriber base to 2.1 million by the end of 2001.  http://www.hanaro.com/english/main.html 
Hanaro, August 13, 2001

DORADO INTRODUCES BROADBAND TRADING & NETWORK ASSET LIQUIDITY SOFTWARE
Dorado Software introduced an automated trading system for broadband and TDM network assets that reserves, schedules, delivers and monitors bandwidth connections and services in the bandwidth trading marketplace.  Specifically, Redcell B-Trade provides a reservation system to translate traded bandwidth connections with specific counter parties, and at a set rate and quality to specific network routes.  It also provides management of network resources, including optical switches and counter-party connections, against scheduled end-to-end connections to be delivered, ensuring deliverable paths and avoiding schedule conflicts.  Dorado said the software could be used for real-time delivery of bandwidth connections.  http://www.doradosoftware.com  
Dorado Software, August 14, 2001

• Earlier this month, Enron Broadband selected Dorado Software to provide bandwidth trading software for its exchanges.

Level 3 Sells 2.5 Gbps Wavelength Service to Adelphia
Adelphia, one of the largest US cable companies, has purchased 2.5 Gbps wavelengths from Level 3 along nine intercity routes connecting Chicago, Denver, Los Angeles, Philadelphia, Phoenix, San Francisco, San Jose and Seattle.  Level 3 terminates the wavelengths at on-net customer facilities.  Financial terms of the multi-year agreement were not disclosed.  http://www.level3.com
Level 3, August 14, 2001

EMC AND NORTEL TEAM ON LONG DISTANCE DATA MIRRORING OVER 200 KM
EMC has tripled the distance possible with Fibre Channel- or ESCON-based storage networks, qualifying Nortel Networks’ OPTera Metro 5200 platform for performing real-time data mirroring over 200 km fiber connections.  The solution uses native Fibre Channel or ESCON interconnections, with no expected impact on performance.  http://www.EMC.com
EMC, August 14, 2001

INFINEON UNVEILS OC-768 FRAMER-MAPPER
Infineon Technologies announced a single chip 40 Gbps framer-mapper/quad STS-192 for use in SONET/SDH systems.  The chip is a highly integrated device that provides section, line and path overhead processing as well as frame synchronous scrambling and de-scrambling for quad STS-192.  It supports pointer processing at STS-1 granularity for STS-192 and scalable concatenation levels STS-3c to STS-192c for a seamless upgrade path to STS-768.  The product is fabricated in a 0.15 micron process.  Samples of the device and evaluation boards will be available in Q4 2001 with mass production scheduled for the first half of 2002.  The product was developed by Catamaran Communications, which Infineon agreed to acquire in May for $250 million in stock.  http://www.infineon.com/news/ 
Infineon, August 13, 2001

• In June, Infineon introduced an OC-768 (40 Gbps) multiplexer/demultiplexer (MUX/DEMUX) chipset for next generation SONET/SDH systems.  The chipset is part of Infineon’s end-to-end line card solution for OC-768.  The device is fabricated in Silicon Germanium process technology, giving it lower power consumption and larger scale integration than existing Gallium Arsenide and Indium Phosphide technologies.

INFINEON RELEASES SINGLE CHIP SHDSL TRANSCEIVER
Infineon Technologies released a low power single package symmetrical high-bit rate digital subscriber line (SHDSL) transceiver.  The SOCRATES U integrates the analog front end, line driver, microcontroller, tunable hybrid framer, echo canceller, HDLC controllers and memory into a single 256-pin BGA package (18mm x 18mm).  The SHDSL transceiver requires just 800mW of power and takes up total board space of less than one square inch.  The package is now available in sample quantities, and shipments in volume quantities will commence in Q3. http://www.infineon.com/news/
Infineon, August 14, 2001

Spirent Introduces Performance Analysis Tools for Fibre Channel
Spirent Communications introduced a new test suite for configuring, generating, and analyzing traffic used to measure the performance of storage networking infrastructure equipment, including Fibre Channel switches, fabrics, emerging Fibre Channel-over-IP (FCIP) gateways, and DWDM systems.  The new SmartFabric software tool works with the company's SmartBits Fibre Channel modules and SmartBits chassis to emulate hundreds of attached devices per test port, thereby reducing the need for complex test environments.  Specifically, SmartFabric supports full line-rate traffic generation and analysis at 1 and 2 Gbps, up to 192 ports simultaneously, generates up to 512 independent data streams and analyzes up to 64K streams, supports point-to-point and loop topologies, performs loop initialization, fabric login, and name server registration for one or many devices, and emulates up to 126 devices on a loop.   http://www.spirentcom.com
Spirent Communications, August 14, 2001

Ocular Enhances its Optical CrossConnect for Ethernet over SONET
Ocular Networks, a start-up based in Reston, Virginia, announced several enhancements for its Optical Service Xchange crossconnect including a doubling of the platform’s density and the capability to deliver Ethernet-over-SONET services.  Ocular’s OSX-6000 now offers cross-connect capability supporting 18,816 VT 1.5s in a single shelf, enabling the system to replace up to eight custom racks of DCS equipment.  The OSX-6000 also provides integrated SONET transport functionality, data capabilities, and interface speeds up to OC-192.  The Ocular platform will allow carriers to map Ethernet services onto concatenated SONET Virtual Tributaries (VTs) or Synchronous Transport Signals (STSs).  In addition to the high-density platform targeted for use in central offices, carrier hotels, and high-density buildings, Ocular will offer a smaller version for delivery of T1 and Ethernet services to small to medium-sized multi tenant buildings, collocation facilities, and wireless cell sites.  http://www.ocularnetworks.com  
Ocular Networks, August 13, 2001

• In January, Ocular raised $30 million in second round funding to support its development of optical solutions for metro area networks.  The company has raised $50 million to date.  Investors include JAFCO Ventures, Comdisco Ventures, Bessemer Venture Partners, Columbia Capital and Highland Capital Partners.
• Ocular Networks' Single Switch is designed for delivering Time Division Multiplexing (TDM), ATM and IP traffic natively over a single, high-speed switching fabric.  The box will use custom ASICs to allocate both switching and transport between native TDM and data automatically and dynamically, based on traffic input.  Ocular’s combination of hardware and software will characterize incoming traffic; choose the correct path, priority, and QoS parameters through the switching fabric; and perform bandwidth management functions associated with both TDM cross-connect and data switching functions.  The design uses a common high-speed switch matrix, preserving the native characteristics of the traffic in the process.  The system would provide direct mapping of circuits into TDM/SONET formats within the SONET standard for jitter and delay.  A proprietary Bandwidth Sharing Protocol would provide real-time partitioning of transport links for equitable transfer of both TDM and cell/packet-based traffic.
• Ocular Networks was co-founded by Ed Kennedy, previously Vice President of Marketing at Alcatel’s Enterprise and Data Networks division, and Dr. Ron Fang, who previously managed Frame Relay and ATM product development at Bell Northern Research, the research arm of Nortel Networks.

BIGBAND SHOWS ITS MPEG SWITCHING FOR VIDEO ON DEMAND
BigBand Networks, a start-up based in Fremont, California, demonstrated live MPEG switching of digital television channels over cable in dynamic response to subscriber requests. The demonstration involves live digital broadcast channels entering the company's Broadband Multimedia-Service Router, with particular channels switched only to outputs feeding areas in which set-top boxes (STBs) request them. If a STB requests a channel not currently fed to it, that channel is dynamically switched to that STB's area, and if a particular channel is no longer requested in a particular area, switching of that channel to that area is dynamically discontinued. The broadcast on-demand demonstration operates alongside BigBand Networks' broadcast grooming solution and RateShaping video bit rate adaptation capabilities, which are employed to maximize channels per output.  http://www.bigbandnet.com/
BigBand, August 14, 2001

• Last August, BigBand Networks secured $30 million in venture funding to support its development of a new platform to deliver entertainment-quality content and services combining video, voice and data over multiple broadband networks.  The company is led by Amir Bassan-Eskenazi and Ran Oz who were formerly executives with Optibase, the pioneer of MPEG video transmission over broadband networks.  Investors include Redpoint Ventures, Cedar Fund, Pilot House Ventures and Evergreen Investments.

Crosslayer Networks Targets Silicon for 10 Gig E and MPLS
Crosslayer Networks, a start-up based in Fremont, California, received $6 million in first round funding for its development of advanced silicon solutions for next-generation metropolitan and enterprise networks.  The company is working on a combined packet-processor and switch fabric architecture that accommodates 10-Gigabit Ethernet and MPLS.  Product specifics have not been disclosed.  Crosslayer Networks was founded in August 2000.  Investors include Alliance Ventures IV, AmidZad, Crescent Venture Investors, Solar Venture Partners, Galaxy Venture Partners, and a number of individual investors.  http://www.crosslayer.com
Crosslayer Networks, August 13, 2001

• Crosslayer Networks was co-founded by Ahmad Esmaeili, who previously served with Network Equipment Technologies, Nortel, Netvantage and, most recently, Cabletron Systems, and Ihab Jaser, previously with Network Equipment Technologies, Hughes LAN Systems, Netvantage and Cabletron Systems.