GLOBESPAN TO ACQUIRE VIRATA, COMBINING DSL AND COMMUNICATIONS SOFTWARE PORTFOLIOS
GlobeSpan and Virata announced a merger of equals under which Virata stockholders will receive 1.02 shares of GlobeSpan common stock for each Virata common share held.  The combined market capitalization of the two companies, based on closing prices on September 28, was $1.03 billion.  The new GlobeSpan Virata, which would have pro forma revenues of $528 million for the twelve months ended June 30, 2001, will offer a range of DSL access solutions from physical layer products to integrated software and communications processors.  Armando Geday, President and CEO of GlobeSpan, will be CEO of the combined company; Charles Cotton, CEO of Virata, will become Executive Chairman during a one-year transition period.  http://www.globespan.net  http://www.virata.com
Globespan, October 1, 2001

• GlobeSpan’s core engineering team includes individuals who were amongst the earliest developers of DSL technology at AT&T Bell Labs.  The company was formed in 1996 through a spin-off from Lucent Technologies.  The company is based in Red Bank, New Jersey.
   
• In July, GlobeSpan introduced a voice-over-packet communications processor capable of delivering 256 channels of voice compression and 32 to 128-milliseconds of echo tail cancellation on all of the channels simultaneously.  The chip replaces approximately 12 to 15 DSPs.  Multiple chips could be cascaded together to achieve channel densities from nxDS1 to OC-48.  Target applications include VoIP/ VoATM Media Gateways and Media Servers, DSLAMs, DLCs, convergence switches, access concentrators and IP PBXs.
   
• In January 2000, GlobeSpan acquired acquire Ficon Technology, a developer of communications software, for approximately $90.0 million (Jan 2000 prices).
   
• In March 2000, Virata acquired Inverness Systems, a developer of IP/ATM/MPLS software source code, for approximately $105 million (850,000 VRTA shares).  Inverness' source code solutions and network simulation products include ATM, Voice over ATM, xDSL, IP Routing, Multi-Protocol Label Switching (MPLS) and Frame Relay code.   
   
• Virata’s product line consists of standalone software components and its Integrated Software on Silicon solutions, which includes communication processors.  Its customer base includes Cisco, Ericsson, Hyundai, Netopia, Samsung and Siemens.  Virata’s headquarters are in Santa Clara, California.

QWEST REORGANIZES BUSINESS DIVISION, SIGNS CALPOINT AS PARTNER FOR WAVELENGTH SERVICES
Qwest Communications announced a reorganization of its business markets unit to focus on the largest global 1,000 accounts.  The company plans to hire as many as 1,000 new sales representatives and will launch a major marketing campaign soon to position itself as an alternative to AT&T.  Qwest also announced a five-year engineering and marketing agreement with Calpoint LLC, a privately held company, to provide managed wavelength services.  As part of the deal, Qwest will sell $300 million in optical networking equipment to Calpoint, which will use the equipment to provision private wavelength services over fiber not owned by Qwest.  Calpoint is expected to add coverage in markets where Qwest traditionally has not been heavily represented, especially in the defense and government markets.  The deal involves a $130 million revenue commitment from Qwest over the term of the contract.  A webcast of the announcement is online. http://www.qwest.com/about/media/pressroom/
Qwest, October 1, 2001

LAYER N NETWORKS’ CHIP PUSHES 100,000 SSL TRANSACTIONS PER SECOND
Layer N Networks, a start-up based in Austin, Texas, announced plans for a network security processing chip capable of performing 100,000 SSL Transactions per second.  The chip is designed for load balancers, web/content switches, SSL appliances, SSL off-loaders, caching accelerators and server NICs.  Layer N said Web security is rationed because it is too complicated and costly to implement.  The cryptographic mathematics which make SSL secure also cause web servers to slow to a crawl.  Layer N has developed a set of algorithms to solve the hard math involved with SSL transactions.  Its chip is expected to ship in Q2 2002.  http://www.LayerN.com
Layer N Networks, October 1, 2001

• Layer N Networks has received funding from Austin Ventures, Granite Ventures, Seed Company Partners and Agave Capital.

RIPTECH RAISES $21 MILLION FOR MANAGED SECURITY SERVICES
Riptech, a provider of outsourced network security services, received $21 million in funding, including an $18 million investment led by Broadview Capital Partners.  Existing investors Columbia Capital and Providence Equity Partners Inc. participated in the investment.  Riptech provides real-time managed security services, including monitoring and management of firewalls, Intrusion Detection Systems (IDS), VPNs and other security devices.  http://www.riptech.com 
Riptech, October 1, 2001

• Riptech combines proprietary device monitoring with around-the-clock analysis from Riptech security agents.   By aggregating and analyzing vast amounts of security data through its proprietary technology, Riptech's Security Operations Center (SOC) analysts identify and defend against potential intrusion or other malicious activity.
   
• Riptech was founded in 1998 by former Department of Defense security professionals.   The company is based in Alexandria, VA.

SBC NAMES WILLIAMS AS PREFERRED PROVIDER FOR US-ORIGINATED INTERNATIONAL LONG DISTANCE TRAFFIC
SBC Communications named Williams Communications as its preferred provider of US-originated international long distance traffic.  Williams Communications will also acquire two gateway switches from an SBC subsidiary, Ameritech Global Gateway Services, thereby assuming the wholesale international long-distance business currently conducted by AGGS.  Under a previous international services agreement, Williams already serves as SBC’s preferred provider for private line services.  http://www.williamscommunications.com/newsroom/newsreleases/2001/100101a.html
Williams Communications, October 1, 2001

NYT: US SUPREME COURT TO HEAR TELECOM CASES THIS MONTH
The New York Times published an overview of telecommunications cases that will be argued in the new session of the US Supreme Court.  One set of cases concerns pole attachment fees for broadband Internet services and whether cable modem service should be regulated as a cable service or a telecommunications service.  The Court has scheduled arguments for these cases on October 2, 2001:

• 00-832 National Cable & Telecommunications Association vs. Gulf Power Company
• 00-843 FCC vs. Gulf Power Company

Another set of cases concerns the accounting methods that RBOCs use to charge their competitors for leased equipment and whether such fees should be based on the historical costs of switching equipment or on the lower cost of the much more efficient, current generation of technology.  Five cases regarding these issues are scheduled to be heard on October 10, 2001:

• 00-511 Verizon vs. the FCC
• 00-555 WorldCom vs. Verizon
• 00-587 FCC vs. Iowa Utilities Board
• 00-590 AT&T vs. Iowa Utilities Board
• 00-602 General Communications vs. Iowa Utilities Board

http://www.nytimes.com/2001/10/01/technology/01TELE.html (registration required)
The New York Times, October 1, 2001

INTEL INTRODUCES MULTIRATE SOLUTIONS FOR SONET AND 10 GBPS ETHERNET
Intel introduced an optical networking subsystem for combining 10 Gigabit Ethernet and OC-192 SONET/SDH on a single line card.  The product combines a laser source and receiver module that operates at 9.95, 10.3, and 10.7 Gbps by incorporating three customized jitter filters.  The device is currently sampling.  Intel also announced plans for a new product family that integrates an OC-192 SONET/SDH Framer and 10 Gigabit Ethernet Medium Access Controller (MAC) on a single device.  The new Intel component family will offer variations to support OC-192c, Packet Over SONET, 10 Gigabit Ethernet, and General Framing Procedure (GFP).  http://www.intel.com 
Intel, October 1, 2001

CORNING DEVELOPS NEW PACKAGING FOR DOUBLE DENSITY DWDM COMPONENTS
Corning announced a new micro-optic packaging technology that makes double use of each DWDM filter, significantly increasing the density for multiplexing and demultiplexing channels.  Corning's MultiPort technology uses innovative precision alignment to enable multiple independent optical paths through the same filter, simultaneously.  Corning said the technology can be used for narrowband, wideband, or bandsplitter thin-film components as well as integrated DWDM modules.  http://www.corning.com 
Corning, October 1, 2001

ALCATEL OPTRONICS ANNOUNCES CONTINUOUS WAVE LASER
Alcatel Optronics introduced a continuous wave laser integrating a wavelength monitoring function and designed for 2.5 Gbps, 10 Gbps and 40 Gbps long reach and very long reach DWDM transmissions.  The new module combines a laser chip, a Fabry-Perrot filter and two photodiodes for precisely controlling the optical power and the wavelength emitted into the optical fiber.  The device covers C and L bands, with output power up to 20 mW.  http://www.alcatel.com/vpr/?body=/latestnews/01102001_1uk 
Alcatel Optronics, October 1, 2001

OMM INTRODUCES 32 X 32 MEMS-BASED ALL-OPTICAL SWITCH
OMM announced a 32 x 32 MEMS-based all-optical switch module operating over the full wavelength range of 1290nm to 1610nm and independent of transmission data rates or signal protocol.  The device can optically switch any of 32 input ports to any of 32 output ports and is characterized by ultra low power consumption, low insertion loss and milliseconds range switching time.  http://www.omminc.com 
OMM, October 1, 2001

• In July, OMM announced that it would discontinue development of large port-count photonic cross-connect subsystems based on analog MEMS technology (3D).  Instead, the company said it would increase its focus on mid-sized photonic cross-connect subsystems based on digital MEMS (2D).  OMM attributed its decision to discontinue development of 3D rack-mounted subsystems on the lack of visible near-term demand for such large port-count products.
• San Diego, California based OMM has raised more than $100 million since its founding in 1997.  The company raised its last round of $40 million in funding in August, 2000. 

MOVAZ TO LEVERAGE BANDWIDTH 9’S TUNABLE LASERS FOR DYNAMIC OPTICAL SWITCHING
Movaz Networks, a start-up based in Atlanta, Georgia, will integrate tunable laser technology from Bandwidth 9 into its metro optical networking solutions.  The companies have been working for several months to enable dynamic assignment of wavelength frequencies remotely through a Graphical User Interface.  Tunable lasers would also help reduce a customer’s spare parts inventory levels.  Bandwidth9’s tunable laser combines vertical cavity surface emitting laser (VCSEL) and MEMS technologies to lock onto a specific wavelength in less than 200 microseconds.  Movaz is developing a platform that combines optical transport and switching capabilities as well as a GMPLS optical control plane.  http://www.bw9.com  http://www.movaz.com
Movaz Networks, October 1, 2001

RIVERSTONE DEBUTS HITLESS PROTECTION SYSTEM
Riverstone Networks introduced a “Hitless Protection System” intended to extend carrier-grade availability to metro-based video, voice and premium data services.  The failover capability provides protection to Layer-2 traffic, Layer-3 (routed) traffic and application information (Layer 4) .  The software would enable a Riverstone RS router equipped with a redundant control module to overcome a failover or a software upgrade without a reboot. The system works by continually updating state information to the redundant control module using spare CPU cycles.
http://www.riverstonenetworks.com/news/press/20011001.shtml 
Riverstone, October 1, 2001

SAN VALLEY NAMES EX-LARSCOM EXEC AS CEO
SAN Valley Systems, a start-up based in Campbell, California, named Bob Coackley as its news president and CEO, replacing company co-founder Sandy Helton who continues as CTO.  Coackley previously served as president and CEO of Larscom.  http://www.sanvalley.com
SAN Valley Systems, October 1, 2001

• SAN Valley offers an IP-SAN Gateway product that leverages Fibre Channel and Gigabit Ethernet to support disaster recovery, remote mirroring and resource consolidation applications.
• SAN Valley has received $31 million in venture funding from Moore Capital, Upstart Capital, Vertex Management, Innovacom Venture Capital, Agilent Technologies and Cisco Systems since 1999.

GENUITY RAISES MORE THAN $1 BILLION IN BOND OFFERING
Genuity raised $1.15 billion through the placement of four-year floating rate notes, which are backed by a letter of credit drawn under the company's amended $2 billion credit agreement with a syndicate of banks.  In addition, Verizon Communications agreed to increase the amount of its credit facility with Genuity to $2 billion, and to extend the maturity to 2005.  http://www.genuity.com/announcements/news/press_release_20011001-01.xml
Genuity, October 1, 2001

Daily Journal For Broadband Networking
Copyright 2001 Converge! Media Ventures Inc.
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