AT&T Canada to Emerge from Chapter 11 in April

AT&T Canada has received approvals from the Ontario Superior Court of Justice and the U.S. Bankruptcy Court for its financial restructuring plan. AT&T Canada now hopes to emerge from bankruptcy protection on 01-April-03 as an independent company, with positive cash flow and net income, and no long-term debt.
http://www.attcanada.com

• In January, AT&T Canada announced new commercial agreements with AT&T Corp. defining how the companies will serve customers as AT&T Canada transitions to a fully independent and re-branded company. AT&T Canada will launch a new brand name by September 9, 2003. The deal also enables AT&T Canada and AT&T Corp. to continue working together on a non-exclusive basis, maintains network ties between the two companies, recognizes AT&T Corp.'s ability to serve Canadian customers directly (including by competing with AT&T Canada), and provides AT&T Canada the ability to forge additional supplier relationships.



• AT&T Canada provides a full range of integrated services over its 18,700 route kilometers of local and long haul fiber.

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Four Former Qwest Executives Indicted for Fraud

The U.S. Department of Justice issued a 12-count indictment charging four former executives of Qwest Communications with corporate accounting fraud. The indictment alleges that the defendants devised a scheme to falsely recognize more than $33 million of additional revenue for Q2 2001, when the company was experiencing weak sales. The case concerns a contract with the Arizona School Facilities Board to design and implement a statewide school computer network. Defendants include Grant Graham, the former CFO for Qwest's Global Business Unit; Thomas Hall, a former Vice President in Qwest's Government and Educational Solutions Group; John Walker, a former Vice President for Qwest's Government and Educational Solutions Group; and Bryan Treadway, a former Assistant Controller at Qwest.
http://www.usdoj.gov

• In August 2002, the U.S. Attorney's Office joined the Securities and Exchange Commission (SEC) in its investigation into Qwest Communications' accounting policies, practices and procedures in 2000 and 2001, including revenue recognition and accounting of sales of optical capacity assets (Indefeasible Rights of Use or “IRUs�?) to customers from whom Qwest also agreed to purchase capacity.
  In March 2002, the Securities and Exchange Commission (SEC) launched an investigation into Qwest's accounting policies.

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Etenna and Intel Collaborate on Internal Antenna Designs

Etenna Corporation, a start-up based in Laurel, Maryland, is collaborating with Intel to create an antenna solution for 802.11a/b/g and Bluetooth- enabled notebook computers. Specifically, the two companies have been using Etenna's artificial magnetic conductor (AMC) technology to enhance the performance of internal antennas. Etenna's AMC technology is an electrically thin, loss-less material that blocks surface waves.
http://www.etenna.com

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Farmers Tel Deploys Occam Networks' BLC System

Farmers Telephone Cooperative, an incumbent rural telephone cooperative serving the northeast corner of Alabama, is deploying Occam Networks' Broadband Loop Carrier (BLC) system to replace some of its remote terminals at various locations. The Occam solution enables Farmers Tel to provide both voice and data on every line. Farmers Tel is currently implementing a network upgrade that will eventually involve the installation of 90 to 100 remote terminals in a fiber network. Financial terms were not disclosed.
http://www.farmerstel.com
http://www.occamnetworks.com

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Choice One Upgrades its ATM Network with Lucent

Choice One Communications, an integrated communications provider serving small and medium-sized businesses in the Northeast and Midwest, has selected Lucent Technologies to upgrade the PacketStar (PSAX) 2300 Multiservice Media Gateways in its ATM network. Choice One will be able to aggregate and manage a large portion of its traffic using the existing PSAX 2300 systems currently in its network to convert voice to data packets for voice over DSL or voice over ATM services. Financial terms were not disclosed.
http://www.lucent.com

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SMC Chooses Intersil's Chipset for Its 802.11g Products

SMC Networks is using Intersil's PRISM GT Wireless Local Area Networking (WLAN) chipset in their new 802.11g wireless networking products, including access points and adapter cards.
http://www.smc.com

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Nortel Networks Enhances Security Portfolio

Nortel Networks announced several enhancements to its portfolio of security products, including the introduction of the Alteon Security Manager, a new solution that consolidates configuration, management and monitoring of the multiple security appliances. The Alteon Security Manager enables multiple security devices - like the company's Alteon Switched Firewalls - to be controlled by a single device that presents a common interface for 'one stop' security management. The product rollout also includes a new Alteon Firewall 5109 for small- and medium-sized businesses, and new software releases for the Alteon Switched Firewall System.
http://www.nortelnetworks.com

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Cisco Extends its Enterprise Content Delivery Network Category

Cisco Systems introduced new enterprise hardware appliances and router-integrated modules designed to extend the capabilities of an Enterprise Content Delivery Network (ECDN). The new Cisco Application and Content Networking System (ACNS) software and hardware helps companies implement content delivery solutions such as video for training. For instance, the U.S. Department of Veteran Affairs needs to deliver 40 hours of training annually to each of its more than 180,000 employees around the country. The Cisco ACNS reduces WAN usage and improves application performance for the online video-enabled training. The product rollout includes four new appliance-based content delivery devices for Cisco ACNS: the Cisco 510 Content Engine ($5,500) and Cisco 565 Content Engine ($11,000) for branch-office locations, and the Cisco 7305 Content Engine ($25,000) and Cisco 7325 Content Engine ($60,000) for large-branch or data-center deployments.
http://www.cisco.com

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Alcatel Introduces Enterprise IP Communications Platform

Alcatel introduced a new IP telephony communications platform for enterprises. The Alcatel OmniPCX Enterprise features Linux-based communication manager software that operates on off-the-shelf Linux servers or integrated Alcatel blade servers. It also offers a suite of media gateways addressing all configuration sizes from branch offices to large campuses. Alcatel said its platform provides for an enterprise-wide implementation of SIP and supports a smooth evolution path for enterprises requiring blended IP and TDM solutions. It uses XML for web service development and VXML for voice-enabled web applications. Later this year, Alcatel also plans to introduce a Unified Communication Platform that includes unified messaging, personal routing, personal assistant and collaborative working services.
http://www.alcatel.com

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Telstra Upgrades Internet Backbone with Cisco's 10 Gbps Ethernet

Telstra, Australia's incumbent telecom provider, activated the first 10 Gigabit Ethernet link on its Telstra Internet Direct (TID) backbone. Telstra's TID is a meshed network of 16-slot Cisco 12416 Internet routers. The TID 10 Gbps Ethernet upgrade is one of several planned for deployment within Telstra's Sydney and Melbourne metropolitan area networks over the next few months. Routes in other cities and on the Telstra national network will be upgraded as needed. Financial terms were not disclosed.
http://www.cisco.com

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Equant Offer DSL Access for its Global VPNs

Equant began offering managed DSL access to its Global VPN service from seven countries. The service uses managed Cisco customer premise routers as well as Cosine's IP service platform. The countries covered at launch are: Australia, Canada, Hong Kong, Italy, Singapore, U.K. and the U.S. DSL access will be available in Germany by the end of Q1 and in France during Q2 with other countries added throughout 2003.
http://www.equant.com

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Looking Glass Launches Network Design and Construction Service

Looking Glass Networks launched a fiber optic facility design and construction service for metro networks. In addition, the service manages staffing resources, obtains right-of-way and permit authorizations, and schedules all implementation activities to ensure on-time delivery of the network.
http://www.lglass.net

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Looking Glass Networks Deploys Cisco ONS 15600 MSPP

Looking Glass Networks will deploy Cisco Systems' ONS 15600 Multiservice Switching Platform (MSSP) in five metro area networks, including Los Angeles, Dallas, Chicago, New York and Washington, D.C. The Cisco ONS 15600 combines SONET and cross-connect network elements is a single box. Looking Glass said the ONS 15600 deployment enables it to consolidate equipment in its switching centers to achieve lower costs. Additionally, Looking Glass will use the platform's network management system and automated cross-connect capability with point-and-click provisioning to speed circuit turn up. Deployment is expected to begin this quarter in Los Angeles. Financial terms were not disclosed. Looking Glass already had Cisco ONS 15454s deployed in its metro networks.
http://www.lglass.net

• In September 2002, Cisco Systems introduced a new optical platform that leverages the architecture and operating software of its ONS 15454 and is designed for high-density aggregation and switching in large metropolitan areas. The Cisco ONS 15600 Multiservice Switching Platform (MSSP), which combines the functionality of SONET/SDH multiplexers and digital cross-connect network elements, provides 320 Gbps of switching, grooming, aggregation, and bandwidth management capacity in a single shelf. Three shelves could fit in a 7-foot NEBS 2000 rack. A specialized cooling system enables the ONS 15600 to provide 32 OC-192/STM-64 LR or 128 OC-48/STM-16 LR optical interfaces. Cisco said the new MSSP is capable of terminating and processing hundreds of DCC channels simultaneously. Restoration time is rated at under 25ms protection switching time, a 50% improvement over current industry standards.

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IDT to Match Bid for Global Crossing

IDT a multinational carrier, announced a bid to acquire Global Crossing that would "at least" match the offer submitted last August by the Hong Kong-based conglomerate Hutchinson Whampoa Ltd and state-controlled Singapore Technology Pte Ltd. IDT said its offer was more viable because of the national security concerns surrounding a China-based company controlling the network of a major supplier to the U.S. government. IDT supplies connectivity to many agencies of the federal government through its IDT Solutions (formerly Winstar) fixed wireless network.
http://www.idttelecom.com
http://www.globalcrossing.com

• On 17 December 2002, a U.S. bankruptcy court confirmed Global Crossing's Chapter 11 plan of reorganization. Global Crossing recently said it expects to emerge from Chapter 11 as a reorganized company during the first half of 2003. Various regulatory agencies still need to review and approve the transaction for it to take effect.



• IDT, through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides telecommunications services to its retail and wholesale customers. The company services over 125 brands of calling cards worldwide.



• In August 2002, Hutchison Telecommunications (Hutchison) and Singapore Technologies Telemedia Pte. Ltd. (ST Telemedia) announced plans to invest a total of $250 million for a 61.5% majority interest in a newly constituted Global Crossing. The agreement was approved by the bankruptcy court in New York and has the support of Global Crossing's major creditor groups. Global Crossing's banks and creditors would receive 38.5% of the common equity in the newly constituted Global Crossing, $300 million in cash and $200 million of new debt in the form of senior notes. In January 2002, Hutchison Whampoa and Singapore Technologies Telemedia had initially bid a total of $750 million cash for a joint majority stake in Global Crossing's equity.



• In September 2002, IDT acquired certain Indefeasible Rights of Use (IRUs) and equipment from Star Telecommunications for “pennies on the dollar.�? The assets acquired represent long-term capacity on US nationwide fiber networks operated by Qwest and Broadwing. The original IRU's were purchased by Star Telecommunications in 1998 for approximately $68 million. IDT said the fully operational 20-leg network of OC3 and OC12 bandwidth allows it to carry increased voice and data traffic into 13 major metropolitan cities, including Boston, New York City, Washington, DC, Atlanta, Miami, Houston, Dallas, El Paso, Phoenix, San Diego, Los Angeles, San Francisco, and Las Vegas.



• In July 2002, IDT announced unsolicited (and unsuccessful) bids to acquire two units of WorldCom: its MFS and Brooks Fiber units and its MCI consumer and small business long distance units. IDT valued the combined bids at $5 billion.



• In December 2001, IDT acquired Winstar Communications for $42.5 million ($30 million in cash and $12.5 million in IDT Class B Common Stock). Other IDT acquisitions include major equity interests in Net2Phone and Talk America Radio Network.

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AT&T and Cisco Expand Market Alliance

AT&T and Cisco Systems expanded their relationship to include joint sales and marketing activities of managed services for U.S. business customers and U.S.-based multi-national customers. As part of the agreement, the Cisco sales organization and its indirect sales channel will join in the delivery of AT&T managed services. The initial offerings covered by the partnership include 17 AT&T end-to-end managed services, including IP VPNs, metro optical and Ethernet services, managed router services, managed hosting services and voice/data integrated-access services.
http://www.att.com
http://www.cisco.com

• In December 2002, SBC and Cisco Systems announced a new strategic marketing and sales agreement focused on managed business services. The relationship calls for Cisco to become the preferred provider for specific SBC managed service products, including IP telephony, network and CPE-based IP VPNs, security, storage networking, hosting, and WLANs. SBC subsidiaries also plan to use Cisco optical networking, Ethernet transport and network-based IP-VPN technology in their core network infrastructure.



• In April 2002, Cable & Wireless and Cisco Systems announced a four year strategic alliance under which Cable & Wireless will build out a global Cisco Powered Network. The companies will also conduct joint sales and marketing activities targeted specifically at enterprise data and voice convergence solutions.



• In February 2002, AT&T announced the integration of Cisco Systems' ONS 15454 SONET Multiservice Platform and the Cisco Transport Manager as key elements of its nationwide optical network buildout. AT&T is using the Cisco ONS 15454 to provide multi-service aggregation of lower-rate customer traffic up to high-speed (OC-48 or OC-192) pipes for routing across the network. The ONS 15454 also delivers scalable bandwidth services at a variety of speeds, from 1.5 Mbps to 10 Gbps, and Gigabit Ethernet. The Cisco Transport Manager, which is the optical element management system for the Cisco COMET portfolio, provides automation of provisioning and maintenance functions for the ONS 15454. The AT&T optical network also uses the CIENA CoreDirector switch.

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AT&T Says FCC Ruling a “Win for Competition�?

The recent FCC decision was "a win for states, consumers and competition," said David W. Dorman, Chairman & CEO, AT&T, speaking at the Merrill Lynch Global Communications Investor Conference. Dorman believes the landmark ruling to be a clear endorsement of the local service competition that is already having a positive effect on the economy, driving down prices and offering more choices. Regarding the legal basis for the decision, he said the ruling complies with the letter and the spirit of the Telecom Act as well as the D.C. Circuit Court's decision in the USTA vs. FCC decision. As for the rulings effect on broadband, Dorman said he believes the Bells got significant deregulation for new networks, so now they must to act on their promises. However, Dorman questioned whether the Bell companies are serious about really large-scale broadband rollouts because, in his view, the economics of scaling their networks to support home video services probably would not justify the investment. Some other highlights of his presentation:

• Dorman provided evidence that AT&T continues to outperform its peers and gain share in key growth areas, including data services, managed services, and IP transport. Some of the growth is from distressed carriers.


• In 2002, AT&T recorded $38 billion revenues and had 14% operating margins


• Now that its network rollout is significantly complete, two thirds of CAPEX spending in 2003 will be demand driven. CAPEX is expected to be in the $3.3 billion to $3.5 billion range, down from $3.9 billion in 2002 and $5.6 billion in 2001. AT&T will continue to outspend its peers in areas that improve services, such as customer-facing operations, billing, OSS, etc.


• Traffic volumes continue to rise. AT&T plans to "sweat" its network by driving greater utilization of its existing capacity. Over one petabyte of traffic daily now flows across the AT&T IP network.

The presentation and archived webcast are online.
http://www.att.com/ir

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Broadwing to Sell its Broadband Business to C III for $129 Million

Broadwing Inc. agreed to sell its broadband business, Broadwing Communications Services Inc., including the Broadwing name, to privately held C III Communications, LLC, for $129 million in cash. The sale includes Broadwing's 18,700 mile national fiber network, its all-optical switching platform, a state-of-the-art network operations center and all the other network elements necessary to provide its integrated and managed broadband telecommunications services. The Broadwing Communications business provides wholesale transportation services to major telecommunications carriers, broadband telecommunications services to some 1,000 corporate customers in 137 of the top 150 markets across the US, and long-distance service to 150,000 customers. The acquiring company, C III Communications, will assume certain long-term operating liabilities of Broadwing Communications Services, will continue to serve its customers and will retain current employees. C III Communications' investors include Cequel III, LLC, an investment and management company based in St. Louis, Missouri, and Corvis Corporation, which supplied its long-haul optical transmission platform to Broadwing. The deal is subject to customary closing conditions, including approval by the Federal Communications Commission and relevant state public utility commissions. Broadwing Inc.'s local communications subsidiary, Cincinnati Bell, will remain a customer of Broadwing Communications Services and will continue to market its services.
http://www.broadwing.com

• Cequel III was founded in January 2002 as a privately held company whose mission is to acquire or invest in telecommunication companies that offer platforms for future acquisitions and industry consolidation. In May 2002, Cequel III made equity investments in and assumed management of AAT Communications Corporation, which owns or manages more than 6,000 tower sites across the US. On February 12, 2003, Cequel III announced that it had assumed management of and agreed to invest in Classic Communications, a cable provider with 325,000 subscribers. On February 21, Cequel III announced its intention to acquire Shaw Communications' Texas-based cable systems, which serve approximately 27,000 customers.



• In January, Broadwing Inc. announced 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. Its all-optical switched network is based on Corvis' long-haul platform and CIENA's CoreDirector optical switching systems.

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