Ellacoya Raises $14 Million for IP Service Control System

Ellacoya Networks, a start-up based in Merrimack, New Hampshire, received $14 million in venture financing for continued business operations and the commercialization of its IP Service Control System. Ellacoya's IP Service Control System monitors network usage patterns and manages resources. The company said broadband operators could deploy the platform to identify network traffic by application and ensure that both interactive and P2P users receive the level of service to which they have subscribed even during peak times. New investors Flagship Ventures and Atlas Venture join existing investors Lightspeed Venture Partners, Bessemer Venture Partners and Goldman Sachs in participating in the round.
http://www.ellacoya.com

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Polaris Networks Appoints Surya Panditi as CEO

Polaris Networks appointed Surya Panditi as its new CEO, replacing Ray Kao, who remains Chairman and CTO of the company. Surya previously served as CEO of Avici Systems and most recently of Convergent Networks. He currently serves on the boards of Avici Systems and Internet Photonics. Prior to Avici, Panditi was vice president and general manager of the LAN Infrastructure Business Unit at US Robotics. His other experience includes positions with Intel Corporation, Ungermann-Bass and Telco Systems.
http://www.polarisnetworks.com

• Polaris Networks' OMX Optical Transport Switch is designed to combine the functions of a wideband, broadband and super-broadband digital crossconnect system (DCS) with SONET add/drop-based transport. Polaris uses a programmable hybrid switch fabric based on its own ASICs to enable carriers to dynamically adjust their protocol mix to carry multiple types of traffic on a single physical line. The architecture scales from 240 Gbps, fully-redundant, non-blocking switching capacity to 2 Tbps, with switching and grooming granularity extending from VT1.5/DS1 to STS-Nc levels. The platform will feature a range of interfaces that include DS3/EC1, OC3 to OC-192 and Gigabit Ethernet. Polaris is also developing a GMPLS-based control plane to automate end-to-end provisioning of services. Its element management system will perform fault and performance monitoring, ensuring the security of the network.
  Polaris has raised $74 million since its incorporation in June 2000.
  

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Legerity Launches High Performance Analog Business Targeting DSL Drivers

Legerity launched a new High-Performance Analog (HPA) business that will initially provide a BatteryDirect technology that allows DSL drivers to be powered directly from their -48V batteries, eliminating the costly need for power conversion down to the -5V to -12V level.
http://www.legerity.com

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Fujitsu Ships its FLASHWAVE 4010 Remote Extension Platform

Fujitsu Network Communications announced commercial availability of its FLASHWAVE 4010 SONET extension platform, a new low-cost and small-sized platform that allows service providers to use SONET for the delivery of high volume services in low-density environments. The FLASHWAVE 4010 platform is available in four configurations: seven DS1 interfaces and an unprotected OC-3 uplink; seven DS1 interfaces and a protected OC-3 uplink; three DS3 interfaces and an unprotected OC-3 uplink; and three DS3 interfaces with a protected OC-3 uplink. The product is interoperable with other standards-based equipment including the Fujitsu FLM SONET and FLASHWAVE 4000 platforms.
http://www.fnc.fujitsu.com

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Aperto Networks Introduces Point-to-Point Wireless Bridge

Aperto Networks, a start-up based in Milpitas, California, introduced a new carrier class point-to-point wireless bridge that could be used as an alternative to leased T1/E1 connections for providing Wi-Fi hotspot backhaul. Aperto's PacketWave 600 Series Wireless Bridge, which complements its existing point-to-multipoint wireless system (see below), provides a dedicated air interface at a 20 Mbps data rate to locations as far as 30 miles (48 km) from the carrier's wireless base station. The product uses adaptive coding and modulation, automatic packet re-transmissions, adaptive packet size and 20 non-overlapping channels in 125 MHz of spectrum. The new point-to-point system will be available in the 5.8 GHz frequency band (now shipping, with multiple antenna options), as well as the 3.5 and 2.5 GHz frequency bands (scheduled to ship starting in 1Q 2003). Pricing per link starts at $3695 in the 5.8 GHz frequency band.
http://www.apertonet.com

• In December 2002, Aperto Networks closed $22 million in Series C equity financing for its fixed, broadband wireless platforms. The company has raised $57 million to date. Aperto said the new funding would enable it to expand its deployments well beyond the base of 32 service providers in 22 countries accomplished within the past 12 months. The new funding round was led by Canaan Partners, with significant participation from existing investors Alliance Ventures, Innovacom, Tyco Ventures and Satwik Ventures.
• 
  Aperto Networks offers point-to-multipoint PacketWave base stations, subscriber units, and associated radios and antennas in 2.5, 3.5, 5.3 and 5.8 GHz frequency bands. Aperto's base station leverages advanced TDMA and bi-directional burst mode transmission to operate with adaptive TDD or FDD radios. The link technology dynamically adjusts up to ten PHY and MAC-layer parameters, including antennas with spatial and polarization diversity, modulation, power allocation, retransmission policy and frame size to optimize the wireless connection to each subscriber. Key features of Aperto' PacketWave technology include efficient spectrum utilization through high frequency reuse; up to 20 Mbps burst rates over a 6 MHz channel; Line-of-sight, obstructed line-of-sight, and non line-of-sight coverage; interference mitigation and management for multi-cell networks; IP-based multiservice delivery with QoS; and dynamic per-subscriber link optimization.
• 
  Aperto Networks is headed by Dr. Reza Ahy, who previously held executive and technical senior management positions with Harris Corporation, Varian Research Center and RadioLAN. The company's technical team is led by Dr. Subir Varma, who previously was Director of Systems Architecture at Hybrid Networks, where he was responsible for its MMDS system.
  

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ARRIS Receives Additional CMTS Orders from Comcast

Comcast has ordered an additional fifty ARRIS Cadant C4 cable modem termination systems (CMTS) for immediate deployment. The ARRIS Cadant C4 CMTS is a DOCSIS 1.1 and EUR-DOCSIS 1.1 qualified carrier-grade edge router. In Q4, Comcast selected the ARRIS platform for initial deployment in a franchise network in Royal Oak, Michigan.
http://www.arrisi.com

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DataPower Delivers XML Web Services Security Gateway

DataPower Technology, a start-up based in Cambridge, Massachusetts, introduced a network device designed to secure XML-based applications at wirespeed across an enterprise network. Some of the recently announced XML Web Services security specifications include WS-Security, SAML, and XML Encryption. All XML Web services security functions, such as schema validation, XML/SOAP encryption, XML Signature, and others, require extensive XML processing. DataPower said its new XS40 XML Security Gateway is able to parse, validate schema, decrypt, verify signatures, transform, sign and encrypt XML message flows with wirespeed performance. The XS40 integrates XML/SOAP filtering, encryption, digital signatures, and data validation at the message level or at the XML field level.
http://www.datapower.com

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Aventail Introduces Clientless SSL VPN Appliance

Aventail Corporation introduced a clientless SSL VPN appliance that it positions as an alternative to IP-sec-based VPNs for providing remote users with secure access to any Web, client/server, or file sharing resource. The Aventail EX-1500, which is based on the sixth generation of Aventail's SSL VPN technology platform, uses a combination of SSL and proxy technologies to avoid any direct connections to a network. The VPN appliance offers granular access control via Web browser, Microsoft Terminal Services and other access methods.
http://www.aventail.com

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fSONA Introduces New Longer Range Free Space Optical System

fSONA introduced a new free space optical system (FSO) that carries either Fast Ethernet (100/125 Mbps) or Gigabit Ethernet (1000/1250 Mbps) over ranges up to 4 km (2.5 miles). The signal is fully regenerated and re-clocked (3R) at all data rates to ensure the highest possible signal integrity. In addition to data, the system offers transparent network transport of various video standards including NTSC, PAL, HDTV, SDI, MPEG and DVB-ASI.
http://www.fsona.com

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XO Extends Hosting Contract for Microsoft's bCentral

XO announced the extension of its existing strategic relationship with Microsoft Business Solutions through which XO will continue as the private-label hosting provider for its growing base of Microsoft bCentral subscribers. Microsoft bCentral is an Internet resource for web-based business tools and applications.
http://www.bcentral.com
http://www.xo.com

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AT&T Enhances Dial-up Internet Service

AT&T introduced an Internet "Family Plan" that allows subscribers to sign up for one unlimited Internet account for $23.99 per month, and get two additional unlimited 'guest' accounts for free. The service is offered to the company's long distance and local customers.
http://www.att.net

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BellSouth Trials Navini's Broadband Wireless in Daytona

BellSouth is launching a trial of Navini Networks' wireless broadband technology in Daytona, Florida. Trial participants use a small desktop wireless unit, connected to either an Ethernet or USB port on their PC, which provides a high-speed, wireless link between a BellSouth transmission tower and users' computers. The trial will be in the 2.3 GHz WCS band, for which BellSouth holds FCC licenses throughout the Southeast, and will offer speeds similar to wireline DSL with approximate download speeds of up to 1.5 Mbps. BellSouth said it is considering using the wireless solution to increase its broadband footprint in its nine-state service area in the southeastern US.
http://www.bellsouth.com
http://www.navini.com

• Navini Networks' Ripwave 2.4 GHz (unlicensed) and 2.6 GHz (MMDS) broadband wireless access platform uses Multi-Carrier Synchronous Beamforming technology to provide non-line-of-sight access at broadband data rates for up to 1000 users per antenna face. The company claims up to 50% lower total-cost-of-ownership than DSL or cable networks, and up to 70% lower total-cost-of-ownership than previous fixed wireless systems.
• 
  Navini Networks was founded in early 2000 by Wu-Fu Chen and Dr. Guanghan Xu, a former professor at the University of Texas at Austin, School of Electrical Engineering. The company has raised $66.5 million in funding and is based in Richardson, Texas.
  

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Monaco Telecom Deploys Alcatel for Video over DSL

Monaco Telecom is ready to launch video-on-demand services via DSL-streamed television within the Principality, starting this month. The service will offer a range of on-demand cinema, available via television sets, to more than 200 Monaco residents for an initial period of six months. Alcatel is supplying the network equipment.
http://www.home.alcatel.com/vpr/vpr.nsf/DateKey/13012003_1uk

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Motorola Bids to Acquire Next Level Communications' Outstanding Stock

Motorola made an unsolicited tender offer to acquire all of the outstanding publicly held shares of its subsidiary Next Level Communications, a provider of integrated broadband access platforms. Motorola currently owns 74% of the outstanding common stock of Next Level. Motorola is offering to acquire the balance of Next Level's common stock at $1.04 per share in cash, representing a 14.4% premium over the closing price on January 10, 2003 and a 28.6% premium over the average closing price for the last 90 trading days. The aggregate consideration for the outstanding Next Level shares would be $30 million. Motorola acquired shares of Next Level through its acquisition of General Instrument Corporation, which became the basis for the formation of its Broadband Communications Sector in January 2000. Motorola further noted that it has provided over $175 million in funding and $30 million in financial guarantees to its Next Level subsidiary since December 2000.
http://www.motorola.com/mediacenter/news/detail/0,1958,2266_1849_23,00.html

• In a separate statement, J. Michael Norris, the chairman and CEO of Next Level Communications, said Motorola has not discussed its unsolicited tender offer with Next Level management and its independent directors.
• 
  Next Level's flagship product is an ATM-based system that provides Digital Loop Carrier (DLC), Fiber-to-the-Curb (FTTC), Fiber- To-The-Node (FTTN), DSLAM and broadband access capabilities. Next Level also provides broadband management systems and customer premise equipment (CPE) for both high-speed data and video services.
• 
  For Q3 2002, Next Level reported revenue of $12.3 million, down from $20.2 million for the third quarter of 2001. Net loss for the third quarter of 2002 was $20.5 million, or $0.26 per share, compared to a net loss of $27.8 million, or $0.32 per share in the third quarter of 2001.
• 
  Next Level Communications was founded in 1994 and is headquartered in Rohnert Park, California.
  

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NTL Emerges from Chapter 11 -- $11 Billion in Debt Converted to New Equity

NTL, a leading cable operator in the UK, completed it financial recapitalization plan and emerged from Chapter 11 proceedings. NTL and its subsidiaries have been reorganized into two separate companies: NTL Incorporated (comprising the UK and Ireland businesses) and NTL Europe (including all assets in continental Europe as well as other minority investments and interests). Approximately $10.9 billion in debt has been converted into equity in the two reorganized companies. In conjunction with the emergence from Chapter 11, the company and certain of its subsidiaries issued $558 million aggregate principal face amount of 19% Senior Secured Notes due 2010. Initial purchasers of the notes also purchased 500,000 shares of Common Stock on the Effective Date. The gross proceeds from the notes and such shares totaled $500 million.
http://www.ntl.com/mediacentre/press/display.asp?id=601

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Broadwing to Write Down Value of its Broadband Unit, Considers Sale

Broadwing Inc. plans to take non-cash, pre-tax asset impairment charge of approximately $2 billion for Q4 2002 to write-down the value of its broadband unit, Broadwing Communications. Broadwing said it has directed its financial advisors, Lehman Brothers and Banc of America Securities, to consider strategic alternatives for the company, including the possible sale of Broadwing Communications' operating assets. The company noted progress in other areas of its ongoing financial restructuring, including securing a financing commitment of $350 million through Goldman Sachs; amendments to existing credit facilities; and reiteration of previously provided guidance to revenues, EBITDA and capital expenditures.
http://www.broadwing.com

• Broadwing Inc. is comprised of Broadwing Communications and Cincinnati Bell.
• 
  Broadwing Communications operates a nationwide, 18,500 mile all-optical switched network based on Corvis' long-haul platform and CIENA's CoreDirector optical switching systems.
• 
  On 29-October-2002, Broadwing announced a major restructuring of its Broadwing Communications unit aimed at reducing expenses by approximately $200 million annually. The restructuring targets line cost reductions of 25% over the next six months through network grooming, optimization, and rate negotiations; consolidating the unit's workforce by 500 positions; and also calls for exiting its wholesale international voice business. During Q3, Broadwing Communications recorded revenue of $296 million, a decline of 3% from Q3 2001. The company noted solid growth in sales to up-market enterprise customers, while citing the prolonged erosion in the carrier market as responsible for the revenue and EBITDA decline. Moving forward, Broadwing Communications had planned to focus its sales efforts on large enterprise accounts.
• 
  In September 2002, Broadwing named Kevin W. Mooney to serve as CEO to succeed Richard G. Ellenberger, who left the company. Mooney had served as Broadwing's COO for the past year and previously as the company's CFO.
  

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India's Reliance Infocomm Selects Nortel Networks for Optical Backbone

Nortel Networks was named as key supplier for the Reliance Infocomm nationwide converged network, which is described as India's most extensive optical and broadband project. Reliance has been awarded 18 telecom licenses with approval to operate national and international long distance services. It plans to build an optical backbone extending 60,000 km connecting cities, towns and villages across India. The network includes Nortel Networks OPTera Long Haul 1600 optical line system, OPTera Connect DX optical switch, OPTera Metro 4000 multiservice platform, and Nortel Networks Preside network and service management solutions. The enterprise solutions include low-end Layer 2 to high-end Layer 3-7 switches; Nortel Networks Passport 8600, Passport 1424T switch; and Passport 7480 multiservice switch; Nortel Networks Alteon Web switches and Alteon Switched Firewall; Nortel Networks Symposium Call Center; and Nortel Networks Meridian 1 voice systems. Financial terms were not disclosed.
http://www.nortelnetworks.com

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Cisco to Provide Metro Ethernet for China's Zhejiang Telecom

Zhejiang Telecom, a subsidiary of China Telecom, will deploy Cisco Systems' Metro Ethernet Switching products throughout Zhejiang province in eastern China. The deployment will use the Cisco Catalyst 6509, Catalyst 4006 and Catalyst 3550 switches. Financial terms were not disclosed.
http://www.cisco.com

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Consumer Group Lobbies Against Powell Plan for Local Access

The Consumer Federation of America published an open letter to Senate Commerce Committee Chairman John McCain and the panel's ranking Democrat, Ernest "Fritz" Hollings urging law makers to block a draft proposal currently circulating inside the FCC that would lift restrictions on incumbent service providers. The group said the shift in policy, which reportedly is now backed by FCC chairman Michael Powell, would "turn back the clock and promote monopolies in local phone markets." The CFA argues that Powell's draft proposal unlawfully rewrites important provisions of the Telecommunications Act of 1996 -- specifically, section 271, which requires that the Bell companies provide competitors unbundled access to the UNE-Platform of loops, transport and switching if they want to provide long distance services. Now that the FCC has largely granted the Bells entry into the long distance market, the CFA believes that the Bells should not be relieved of their legal obligation to provide reasonably priced wholesale access to competitors.
http://www.consumerfed.org

• Last week, The Wall Street Journal reported that FCC Chairman Michael Powell began circulating a draft plan that would gradually eliminate requirements that incumbent carriers provide their competitors with wholesale access to their local networks.
  http://www.convergedigest.com/regulatory/regulatoryarticle.asp?ID=5954
  
• The U.S. Senate Committee on Commerce, Science & Transportation will hold a hearing on the State of Competition in the Telecommunications Industry on Tuesday, 14-January-2003 at 9:30 a.m. EST. The tentative witness list includes each of the five FCC Commissioners, beginning with FCC Chairman, Michael K. Powell. Live audio coverage of the hearing will be available online.
  http://capitolhearings.org/
  

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NetScaler Secures $13 Million for its Web Application Control

NetScaler, a start-up based in Santa Clara, California, received $13 million in venture capital to support its web application control solutions for enterprises and service providers. NetScaler's web application traffic control systems provide network managers with a single point of control over their web infrastructure. The NetScaler product line uses a "Request Switching" technology that combines application-level security, protection, optimization and switching into a central point of web application control. The company said it has signed over 100 customers, including Yahoo!, 7-Eleven, WebEx Communications, MSN, MLB Advanced Media, United Online, Belo Interactive and GetThere, a Sabre Company. The funding round was led by new investor Sequoia Capital and included returning investors Goldman Sachs & Co., Bay Partners and Gabriel Venture Partners. Total funding to date now exceeds $60 million.
http://www.netscaler.com

• NetScaler platforms handle up to 4,400 new SSL sessions/sec and provide 450 Mbps encrypted throughput. The company's Request Switching technology offloads transport processing from servers and caches; analyzes and optimizes every server response; provides adaptive regulation of request flow without transaction loss; keeps client TCP connections alive to speed response times; and multiplexes and demultiplexes application level requests to maximize server efficiency.
• 
  
  NetScaler is headed by B.V. Jagadeesh. Before joining NetScaler, Jagadeesh was co-founder and CTO of Exodus Communications.
  

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