1. SBC Announces Multi-Service Optical Networking (MON)
2. SBC Seeks FCC Status as Non-Dominant Carrier of Advanced Services
3. Nortel Networks Selected for SBC’s Metro Optical Service
4. Verizon Cites Customer Gains in DSL, Wireless and Long Distance
5. McLeodUSA Abandons Plans for National Network, Scales Back
6. Aleron to Acquire Telia’s US Internet Backbone, Plans Global Network
7. AT&T Builds Voice And Data Network For AFG
8. FLAG Atlantic-1 Enters Full Service
9. Qwest Tightens IP Service Level Agreements, Offers Off-Net Guarantee
10. Microsoft Promises to Address Network Security Concerns
11. Vibrant Solutions Targets Carrier-to-Carrier Management Software
12. Northstar Photonics Raises $11 Million for its Optical Components
13. AFC Expands its Customer Base Among Independent Telcos
14. Corning Sees Further Softening
 

SBC ANNOUNCES MULTI-SERVICE OPTICAL NETWORKING (MON)
SBC Communications announced the availability of Multi-Service Optical Networking (MON), a dedicated point-to-point solution at up to 2.5 Gbps per wavelength between data centers or business sites in a metro area.  SBC’s MON service will carry up to 160 Gbps of unprotected traffic or 80 Gbps of protected traffic on a fiber.  It will also support a range of transport protocols including ESCON, FICON, ETR, ISC, Fibre Channel, Fast Ethernet, Gigabit Ethernet, SONET and D1 video in their native formats.  Data CPE solutions are available immediately nationwide from SBC. The regulated MON service will be available from Southwestern Bell in October and throughout the remainder of SBC’s core 13 state region over the upcoming months.   http://www.sbc.com/News_Center
SBC Communications, October 3, 2001

SBC SEEKS FCC STATUS AS NON-DOMINANT CARRIER OF ADVANCED SERVICES
SBC Communications filed a petition asking the FCC to confirm an earlier ruling that it and its subsidiaries remain classified as non-dominant providers of advanced services.  SBC said the evidence is “overwhelming” that it is not a dominant provider in the competitive advanced services because the cable industry controls two thirds of the market.  SBC also argues that among the providers of advanced services to medium and large businesses, AT&T, WorldCom and Sprint together account for a 70% market share, but are classified as non-dominant providers.  SBC said an FCC designation as a dominant provider would be a further disincentive to aggressive investment in broadband infrastructure. 
http://www.sbc.com/News_Center/1,3950,31,00.html?query=20011003-1 
SBC Communications, October 3, 2001

  • Last month, SBC Communications, which currently owns an effective 42% stake in Prodigy, announced a tender offer for all of the outstanding shares of the Internet service provider's common stock at a 54% premium.

NORTEL NETWORKS SELECTED FOR SBC’S METRO OPTICAL SERVICE
Nortel Networks was awarded a multi-year contract to supply its OPTera Metro Multiservice platforms for SBC’s newly announced Multi-Service Optical Networking (MON) service and Data CPE product offerings.  The SBC MON service will use the OPTera Metro 5200 Multiservice Platform. SBC's Data CPE product will also incorporate the Nortel Networks OPTera Metro 3500 next-generation SONET platform.  Financial terms were not disclosed. 
http://www.nortelnetworks.com/corporate/news/newsreleases/
Nortel Networks, October 3, 2001

VERIZON CITES CUSTOMER GAINS IN DSL, WIRELESS AND LONG DISTANCE
In a preview of its Q3 results, Verizon Communications said that it added between 120,000 to 130,000 net new DSL subscribers for a total of 960,000 to 970,000 customer accounts.  Previously announced year-end targets were 1.2 to 1.3 million.  Verizon plans to launch a new DSL marketing campaign this quarter.  Verizon Wireless also announced an addition of 752,000 customers (net) in Q3, giving it a total customer base of 28.7 million.  In long distance, Verizon expects customer additions of 650,000 to 700,000, for a year-to-date total of 6.6 to 6.7 million.  Regarding the recovery efforts in lower Manhattan, Verizon has now restored approximately 80% of voice services originally supplied by a severely damaged building adjacent to the World Trade Center.
http://newscenter.verizon.com/proactive/newsroom/release.vtml?id=62528
Verizon Communications, October 3, 2001

MCLEODUSA ABANDONS PLANS FOR NATIONAL NETWORK, SCALES BACK
McLeodUSA, the largest CLEC in the US, abandoned plans for a national network and will de-emphasize certain wholesale services.  In a bid to cut costs and get to profitability, McLeodUSA will focus on its existing network footprint in 25 states, where it sells voice and data services to small and medium size business and residential customers.  Non-core assets will be sold off.  Capital expenditures for 2002 will be scaled back from $400 million to $350 million.  The company will also layoff 15% of its workers and consolidate 11 facilities into 3 locations. 
http://www.mcleodusa.com
McLeodUSA, October 3, 2001

McLeodUSA Key Operational Data 30-June-01 31-Mar-01 30-June-00
ATM/FR switches 383 380 361
Voice switches 49 50 37
Collocations 372 342 230
DSLAMs 512 376 110
Employees 10,600 11,300 NA
Intracity route miles 5,302 5,299 2,950
Intercity route miles 25,676 24,526 9,877
Buildings connected 1,451 1,336 1,229
  • On May 2, McLeodUSA announced that it had sold two of its PCS licenses and entered into agreements to sell the remainder of its PCS licenses by year end.  As of August 1, McLeodUSA had received over $125 million in cash for the sale of its PCS licenses.
  • Last October, McLeodUSA signed a three year, $600 million contract to purchase wholesale voice and data services from Qwest.  In November, it agreed to purchase additional network infrastructure from Level 3 covering 25 US states.
  • During 2000, McLeodUSA acquired CapRock Communications Corp., a CLEC serving the southwestern US with 95,000 lines in service and 5,400 fiber route miles, and Splitrock Services Inc., which operated a nationwide data network with ATM switches in over 325 POPs in all 50 states.

ALERON TO ACQUIRE TELIA’S US INTERNET BACKBONE, PLANS GLOBAL NETWORK
Aleron, a privately-held company backed by Goldman Sachs, agreed to acquire Telia AB’s Internet backbone subsidiary in the US.  Financial terms were not disclosed.  Aleron is developing a global Internet backbone and plans to grow through strategic acquisitions.  The company is based in McLean, Virginia.  Telia said the sale does not change the strategy of its Telia International Carrier division, which provides wholesale carrier services over a wholly-owned fiber network throughout Europe and North America. 
http://www.aleron.com/news/releases/tiiacquisition.html   http://www.telia.com
Aleron, October 3, 2001

  • Aleron is planning to deploy an advanced network architecture using IP over DWDM at OC-48/OC-192 rates.  Its packet backbone will be based on MPLS.  Aleron's peering plan includes establishing peering connections at major NAPs: MAE-East, MAE-West, Ameritech/AADS and MAE-Central.  At those locations, plans include public and private peering relationships with major Tier-1 and Tier-2 backbones, with several Gbps of capacity in place to support peering traffic.  Internationally, Aleron plans to establish peering relationships in Europe at LINX in London and elsewhere.
  • Aleron is headed by Paolo Guidi, the former Chairman and CEO of Teleglobe.  Its executive team also includes Steve Heap, formerly VP of network planning at Teleglobe; Jeff Barrows, formerly Director of Internetwork Engineering at UUNet; David Kim, formerly VP of Internet Technology at Broadwing. 

AT&T BUILDS VOICE AND DATA NETWORK FOR AFG
AT&T was awarded a multi-year contract by American Financial Group, a leading provider of insurance services, to build and maintain a secure nationwide, integrated voice/data network.  AFG's networking infrastructure and services, including transport, remote access, Internet, extranet, web hosting and security, will run on AT&T's Private IP VPN service and will be located in one of AT&T's secure, redundant Internet Data Centers.  AT&T will manage routers at all locations across AFG's enterprise network.  In addition, AFG is one of the first customers to use AT&T’s new MPLS-based Managed Router Service running over AT&T’s Frame Relay and ATM networks. 
http://www.att.com/press/item/0,1354,3989,00.html
AT&T, October 3, 2001

FLAG ATLANTIC-1 ENTERS FULL SERVICE
Following the commissioning of its southern cable, FLAG Atlantic-1 (FA-1), the multi-terabit, transatlantic cable system, has now entered full commercial service.  The Six fiber pair, dual cable system will scale up to 4.8 Tbps of capacity.  The network is configured as three self-healing, interlocking loops with twin terrestrial access points. 
http://www.flagtelecom.com
FLAG Telecom, October 3, 2001

QWEST TIGHTENS IP SERVICE LEVEL AGREEMENTS, OFFERS OFF-NET GUARANTEE
Qwest Communications announced new service-level agreement (SLA) guarantees for its dedicated Internet access (DIA) and VPN customers.  Qwest will now provide all its DIA and VPN customers with an enhanced 99.5% packet delivery and a maximum average latency of 50 milliseconds.  Also, Qwest will now guarantee a 95-millisecond maximum average round-trip latency between its network and the networks of the industry's Top 5 carriers (based on a percentage of all network traffic, industry-wide).  Qwest claims to be the first to offer such an "off-net" SLA.  http://www.qwest.com/about/media/pressroom/1,1720,792_current,00.html
Qwest Communications, October 3, 2001

MICROSOFT PROMISES TO ADDRESS NETWORK SECURITY CONCERNS
Citing its concern for
Internet security and the increased threat from computer viruses, Microsoft announced a Strategic Technology Protection Program to address problems with its Windows 2000 Server's Internet Information Services (IIS) platform.  Initial steps include a “lockdown tool” for securing IIS and free virus-related product support.  The company also promised to provide an automated security update service. 
http://www.microsoft.com/presspass/press/2001/Oct01/10-03ImproveCNSecurityPR.asp 
Microsoft, October 3, 2001

VIBRANT SOLUTIONS TARGETS CARRIER-TO-CARRIER MANAGEMENT SOFTWARE
Vibrant Solutions, a start-up based in Fairfax, Virginia, introduced a portfolio of Cost and Revenue Management applications for analyzing carrier-to-carrier transactions.  Vibrant Solutions' ViewLogic multi-application platform and Business Intelligence Suite analyzes large volumes of network data and streamlines the greatly detailed processes involved in revenue assurance, interconnect invoice audits, and network cost optimization. The software can automate interconnect invoice workflows across multiple applications by using Oracle databases, a browser-based user interface and data exchange formats such as .NET, OLAP and XML.  The system can process and mediate various types of event records including Voice (AMA, CDRs), Data records (IPDRs), content records and Network Signaling (SS7).  http://www.vibrant-1.com/
Vibrant Solutions, October 1, 2001

  • Vibrant Solutions was formed in May 2001 by the merger of three companies:  InformationView, Telecon and Network Audit Control.
  • Vibrant Solutions has raised $26 million from investors Bessemer Venture Partners and Columbia Capital.

NORTHSTAR PHOTONICS RAISES $11 MILLION FOR ITS OPTICAL COMPONENTS
Northstar Photonics, a start-up based in Minneapolis, Minnesota, secured $11 million in new financing for development of glass-based integrated photonic components.  Investors include St. Paul Venture Capital, CIT Venture Capital, InnoCal Venture Capital and two strategic partners. 
http://www.northstarphotonics.com
Northstar Photonics, October 3, 2001

  • Northstar Photonics’ laser and amplifier devices are based on its proprietary design and process technology utilizing rare-earth doped glass substrates.

AFC EXPANDS ITS CUSTOMER BASE AMONG INDEPENDENT TELCOS
Advanced Fibre Communications has acquired over 50 new IOC (independent operating company) customers since January 2001, increasing its IOC customer base to more than 750 carriers.  These independent telco customers have deployed nearly 16 thousand AccessMAX Integrated Multiservice Access Platforms (IMAPs), representing a serving capacity of more than 20 million access lines.  http://www.afc.com/
AFC, October 3, 2001

CORNING SEES FURTHER SOFTENING
Corning announced an expanded company-wide restructuring that will result in charges of up to $1 billion in 2001 and the idling of the majority of its fiber manufacturing facilities worldwide.  Fiber manufacturing operations will resume in 2002 as business conditions improve.  Corning has previously announced 8,000 layoffs and now expects the workforce reduction may reach 12,000 employees by the end of the year.  http://www.corning.com/
Corning, October 3, 2001

Daily Journal For Broadband Networking
Copyright 2001 Converge! Media Ventures Inc.
All Rights Reserved. ISSN 1084-2438
News sources are listed for your reference.
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