Riverstone Names Romulus Pereira Chairman, Searches for CEO

Riverstone Networks named Romulus Pereira as chairman of the board and acting CEO. Pereira, the CEO of Riverstone since its inception, succeeds Piyush Patel as chairman, who will remain on the board as a director. Riverstone is searching for a new CEO.
http://www.riverstonenet.com

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Mississippi CLEC Deploys Taqua's Class 5 Switch

Select Connect, a Mississippi-based Integrated Communications Provider (ICP) has deployed Taqua's OCX Class 5 switch. Select Connect's customer base is comprised of small- to medium-sized businesses throughout northern Mississippi. The company's mission is to deliver bundled IP-based communications services. Financial terms were not disclosed. Taqua's flagship OCX incorporates softswitch, signaling and media gateway functionality on a single-card design.
http://www.taqua.com
http://www.selectconnect.net

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Aeluros Introduces 10 Gbps-to-XAUI serial transceiver

Aeluros, a start-up based in Mountain View, California, introduced a 10 Gbps-to-XAUI serial transceiver IC. The device provides a physical layer bridge between a 10.3125 Gbps or 10.51875 Gbps serial signal and a 4-lane, 3.125 Gbps or 3.1875 Gbps XAUI interface, including full implementation of 10 Gigabit Ethernet PCS/PMA functionality and support for both the IEEE 802.3ae 10 Gigabit Ethernet and 10 Gigabit Fibre Channel specifications. Aeluros said its device provides a typical power consumption of 800 mW, up to 60% less than currently available options, enabling new levels of edge density in 10 Gbps equipment.
http://www.aeluros.com

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NeoScale Raises $12 Million, Names CEO

NeoScale Systems, a start-up based in Milpitas, California, secured $12 million in second round equity funding for its enterprise storage security solutions. NeoScale offers a CryptoStor wire-speed, policy-based storage security appliance that delivers network storage and media privacy. The new funding was led by Sevin Rosen Funds and included Bay Partners and Lightspeed Venture Partners. The company has raised $25.5 million to date.
http://www.neoscale.com

• Separately, NeoScale announced the appointment of John McGraw as president, CEO and chairman of the board. McGraw was formerly CEO and remains on the board at Nishan Systems. Previously, he was president and CEO of LightLogic Corporation -- an optical component manufacturer which was acquired by Intel in 2001. Prior to that, he was a senior vice president and general manager of the Electronics Group of Raychem Corporation

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Shandong Unicom Selects Lucent for Optical Backbone

Shandong Unicom, a subsidiary of China Unicom, selected Lucent Technologies to build an optical network linking the major cities in Shandong province. The deployment will include the LambdaUnite MultiService Switch (MSS), the Metropolis ADM MultiService Mux (compact shelf) and network management systems. Financial terms were not disclosed.
http://www.lucent.com
http://www.chinaunicom.com.hk

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Toshiba Introduces ARM-Based Controller for CPE

Toshiba America Electronic Components announced a new ARM-based reduced instruction set computer (RISC) networking controller designed for low-cost networking and consumer convergence applications, including access points, home gateways, small office/home office routers, thin client internet-capable devices, networked peripherals, multimedia application servers and multi- channel voice-over-IP phone sets. The new device provides two Ethernet Media Access Controller (MAC) ports and a Peripheral Component Interconnect (PCI) controller that can act as a host bridge controller or as a multi-function PCI adapter.
http://www.chips.toshiba.com

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Enterasys Debuts New Enterprise Switches

Enterasys Networks introduced two new enterprise-class Ethernet switches with advanced management and high-availability features. The Enterasys Matrix switches leverage ASIC-driven Distributed Forwarding Engine (DFE) modules that provide combined multilayer packet classification, switching/VLAN services, IP routing, security and management. The switches' distributed ASIC architecture compounds processing power as port densities increase with multiple processors per chassis.
http://www.enterasys.com/products/switching

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Equant Selects CoSine for Network-Based Internet Gateway.

Equant has expanded its use of CoSine's IPSX 3500 platform to support the company's latest Internet access option -- Equant's Network-Based Internet Gateway. The service, which is currently available in 110 countries, eliminates the need for customers to install firewalls and other security infrastructure on customer premise equipment (CPE). Equant's security team provides continuous monitoring and management of the CoSine's network-based firewall.
http://www.cosinecom.com
http://www.equant.com

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Cable & Wireless Teams with Keynote on Web Performance Service

Cable & Wireless will resell Keynote Systems' Web performance measurement, management, diagnostic and testing services to its customers. Keynote's performance monitoring and testing services include Web Site Perspective, which measures Web site performance from multiple points on the Internet, Transaction Perspective, which delivers full network-level and user-level statistics and error messages for every element of every page in an ecommerce transaction, and Test Perspective, a self-service testing service which allows IT personnel to run instant integrity tests, load tests and diagnostic testshttp://www.keynote.com
http://www.cw.com

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WSJ: Telecom-Sector Debt May Claim More Victims

About $306 billion in telecom and cable-industry related debt was outstanding at the end of 2002, according to Standard & Poor's figures quoted by The Wall Street Journal. What is worrisome about the number is that about $63 billion (21%) of the debt comes due by the end of 2005 and prospects for refinancing by some of the most heavily indebtbed players looks dubious. Already, 74 telecom concerns have defaulted on $112.6 billion in debt since 1999. S&P expects more defaults. The Wall Street Journal warns that the next big crunch could occur just as MCI emerges from bankruptcy, raising the additional worry of a new telecom price war.
http://www.wsj.com

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Sprint Reports Improved Finances on Lower Revenues

Sprint reported Q1 operating income of $604 million, up 17% from last year. Overall net operating revenue for Q1 was $6.339 billion, compared to $6.637 billion for Q1 2002. Cash flow improved significantly in the first quarter of 2003 compared to last year, allowing Sprint to reduce debt by $1.56 billion during the quarter and to increase cash by more than $1 billion. Sprint ended the quarter with a cash balance of $2.10 billion. This cash performance was aided by $2.22 billion in proceeds from the sale of Sprint's directory publishing business. Some highlights of the quarter:

• Data services revenues decreased 5% year-over-year primarily due to a decline in private line. Growth in dedicated IP and hosting revenues were offset by a substantial decline in dial IP.



• Sprint's local division added 34,000 DSL customers in Q1, giving it a total of 185,000 lines in service.



• Sprint PCS added 483,000 net mobile phone accounts. Mobile ARPU was just under $59 in Q1, compared to $62 in Q4 2002 and $60 in the first quarter a year ago. An increase in the average monthly recurring charge was more than offset by lower overage charges and a decrease in the affiliate travel rate. Average customer usage in the quarter was a little over 11 1/2 hours per month compared to 11 hours per month in the fourth quarter.

Sprint also updated its 2003 guidance. Sprint now expects overall revenues to decline 6 - 7% for the full year. Global markets division revenues are expected to decline 8 -10% and local telecommunications division revenue is expected to be flat to down modestly. Capital expenditures are expected to be approximately $2.0 billion. In 2003, the global markets division has targeted capital of $600 million, and the local division capital plan is $1.3 billion.
http://www.sprint.com

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Cisco Highlights Technology for Small and Medium-Sized Businesses

Cisco Systems highlighted four technologies aimed at small and medium-sized businesses that are available for purchase from Cisco partners as part of a "Cisco Growing with Technology Solutions" program.

• Network Foundation (Switching and Routing) -- intelligent services, such as security, availability, and (QoS that optimize networked application performance, ease management, and streamline operations and administration.



• Security -- including security-enhanced routing and switching platforms as well as the latest in VPN, firewall, intrusion detection systems, and access control systems.



• IP Communications -- integrated communications (voice-mail, e-mail and fax), converged networking with data, voice and video on a single infrastructure, and converged applications using dynamic XML technology.



• Mobility -- including secure remote network access and WLAN technology

Cisco said vendor partnerships remain a critical part of its strategy for small and medium-sized businesses.
http://www.cisco.com

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Chantry Networks Launches BeaconWorks WLAN Switch

Chantry Networks, a start-up based in Boston and Toronto, unveiled its BeaconWorks family of wireless LAN products built on a routed IP architecture. Chantry said its routed IP architectures enables networks to scale from tens to literally thousands of access points and hundreds of thousands of simultaneous users. The initial products in the BeaconWorks family are the BeaconMaster controller and the BeaconPoint access point. In Chantry's unique architecture, BeaconMaster controllers aggregate all access points - BeaconPoints, as well as third-party access points - into what appears to the rest of the network as individual, centrally managed IP subnets. User session management takes place at the controller, rather than at the access points, allowing users to freely roam from access point to access point throughout the network without any interruption in service. If an access point fails, the next closest access point automatically assumes responsibility for its user sessions.
http://www.chantrynetworks.com

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Aruba Unveils its Wireless LAN Switching System

Aruba Wireless Networks, a start-up based in San Jose, California, unveiled its wireless LAN switching product line. Aruba's new products include:

• the Aruba 5000, a modular WLAN switch designed for structured wireless deployment in the enterprise,



• the Aruba 800, a fixed configuration stackable WLAN switch for branch offices



• AirOS, a first suite of embedded WLAN switching applications that "lock" the enterprise airspace, self-calibrate 802.11 networks and track mobile users, and



• the Aruba 50 access points (APs), dual-purpose APs that provide both user access and air monitoring

Aruba's WLAN architecture combines sophisticated air traffic management, active user management, multi-layer security and advanced wireless switching services into a single, centralized system. Aruba features "Rogue AP protection" that lets network managers detect unauthorized APs and unauthorized users on their network. It also automatically stops rogues from accessing the enterprise network with active control of the air.
http://www.arubanetworks.com

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Bandspeed Unveils Indoor/Outdoor WLAN-SDMA Technology

Bandspeed, a start-up based in Austin, Texas, unveiled its Gypsy wireless LAN spatial division multiple access (SDMA) switch technology for integration into other manufacturer's access points (APs). Bandspeed claims its technology allows WLANs to extend their range up to three kilometers line-of-sight outdoors and provide bandwidth up to six times greater than conventional APs. Indoor WLANs also see an increase in range of up to three times over conventional APs for similar deployments, according to Bandspeed, while maintaining FCC and ETSI compliance . The Bandspeed smart antenna solution differs from other WLAN switches in that a basic level of packet switching takes place at the AP, where up to six independent 802.11 a/b/g sectors converge. More importantly, the sectorized nature of the AP allows it to provide up to 11Mbps coverage near the edge of adjacent SDMA cells. Conventional APs provide progressively lower data rates emanating concentrically from the AP. Typically, 11Mbps is experienced in about half of the coverage area.
http://www.bandspeed.com

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Vitesse Announces 24-Port Gigabit Switch Chip

Vitesse Semiconductor announced a 24-port, Gigabit Switch Integrated Circuit (IC) intended to migrate existing 24- and 48-port, 10/100 LAN switches to triple speed Gigabit capabilities. Vitesse's Gigabit Switch-on-Chip has the ability to forward 36 million packets per second. The switching chip supports Jumbo packets and provides for wire-speed automatic learning. Its Layer 4-aware programmable classifier allows for enhanced QoS, and it is optimized with Reduced Gigabit Media Independent Interface (RGMII) and Reduced Ten Bit Interface (RTBI) to simplify board layout and condense design time. Vitesse said its 24-port Gigabit Switch IC dissipates the industry's lowest amount of power, less than five watts, which eliminates the need for external cooling elements and reduces the cost of the power supply unit.
http://www.vitesse.com

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Centillium's Entropia III Delivers More Than 1,000 VoIP Channels

Centillium Communications introduced Entropia III, its fourth generation VoIP processor, delivering more than 1,000 VoIP channels on a single chip while concurrently supplying carrier-class echo cancellation and telephony features. Entropia III's hardware acceleration, TDM cross-connects, and multiple packet interfaces are embedded into the solution. Centillium said integration of DSPs and network processing on the same chip offers improvement in delay optimization, a key factor in achieving carrier-class voice quality.
http://www.centillium.com

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Laurel Networks Adds 10 Gbps Interfaces for Service Edge Router

Laurel Networks introduced 10 Gbps SONET/SDH and Gigabit Ethernet Physical Interface (PHY) cards for its flagship ST200 Service Edge Router. The platform enhancements include a 1-port OC-192c/STM-64 SONET/SDH PHY card that scales to 8 ports per ST200 (16 per telco rack) and supports Packet over SONET (POS), Point-to-Point Protocol (PPP), High-level Data Link Control (HDLC) and Frame Relay encapsulations. Laurel is also introducing a 1-port 10 Gigabit Ethernet PHY card that scales to eight ports per system (16 per telco rack) and supports advanced Ethernet over MPLS capabilities including 802.1Q VLANs and 802.1p prioritization. To meet the needs of growing MPLS networks, the ST200 10 Gbps SONET/SDH and Gigabit Ethernet PHY Cards support 256k MPLS Label Switched Paths (LSPs). The ST200 10 Gbps PHY cards will be available in Q3 2003. Laurel Networks said the new SONET/SDH PHY Cards reduce sparing costs, eliminate stranded ports and enable interface reuse as access network technologies change and bandwidth demands increase.
http://www.laurelnetworks.com

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ITXC Carries 884 Million VoIP Minutes in Q1

ITXC reported quarterly revenue of $81.7 million for Q1 2003, an increase of 42% from the same quarter of 2002 and a sequential increase of 9.6% from Q4 2002. Of the revenues reported for the quarter, approximately $8.7 million relates to amounts from Interactive Marketing Technologies, Inc., which may not be collectible. Including a $8.7 reserve for these potentially uncollectible bills, there was a net loss of $17.7 million, compared to a net loss for Q4 2002 of $19.2 million and a net loss for Q1 2002 of $6.5 million.

• VoIP minutes of use grew in Q1 2003 to 884 million, up from 658 million minutes in the first quarter a year ago and 847 million minutes in Q4 2002.



• Revenue per minute increased from 8.8 cents in the Q4 2002 to 9.2 cents in the first quarter of 2003.



• ITXC traffic on Easter Sunday, traditionally a high day, set a new Sunday record of approximately 14.5 million minutes, 45% higher than the approximately 10 million minutes carried last Easter. This was the second highest traffic day in ITXC history with traffic just a few hundred thousand minutes less than that carried on Christmas Day 2002.

http://www.itxc.com

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AT&T Latin America Files for Chapter 11

AT&T Latin America filed for Chapter 11 bankruptcy protection and released preliminary numbers regarding its first quarter performance. The company generated revenue of approximately $39 million in the first quarter. For Q1, AT&T Latin America expects to generate an EBITDA margin (before restructuring charges) of 8-12%, an improvement over the company's Q4 performance, and $4-6 million above the company's Q1 forecast. ATTL also confirmed that it is continuing to pursue a potential new owner or investor for the company. It does not anticipate the timing of the sale to be affected by the Chapter 11 filing.
http://www.attla.com

• AT&T Latin America is a facilities-based provider of integrated business communications services in five countries: Argentina, Brazil, Chile, Colombia and Peru.

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Netli Launches NetLightning Application Delivery Service for Web Applications

Netli, a start-up based in Palo Alto, California, launched its NetLightning service to provide high availability, secure, transparent access to Web applications with global sub-second response times. The service is designed address the problems of performance and reliability for HTTP and SSL based Web applications. The service speeds up response times for Web applications while enabling consolidation to a single data center for global access. The implementation is completely transparent to the application provider and their customers. No changes to server software, applications, or clients are required.


The NetLightning service is implemented through Netli's Reliable Application Platform for Instant Delivery (RAPID) service architecture. The platform is comprised of 13 globally distributed Virtual Data Centers (VDCs), global DNS redirection and IP address mapping system, a proprietary high-performance long-haul transport protocol and content optimization software. NetLightning customers delegate the DNS processing for a Web application to Netli. When an end user accesses an application, the browser is transparently redirected to the nearest Virtual Data Center, where it is converted from TCP to Netli's long-haul optimized transport protocol. Netli software at an Application Access Point (AAP) converts the optimized protocols back to standard HTTP for the final, short connection to the customer's Web application servers. AAPs are 1U Linux boxes that can be installed anywhere, including Netli's own VDCs, specific POPs, or ideally in the customer's own data center. The returned data stream is optimized by the AAP software and is then transported across the Internet to the Virtual Data Center closest to the end user. HP, Nielsen//NetRatings and Millipore are already customers of the service, which typically costs between $10,000 - $15,000 per month per application. Netli is targeting enterprises with global data applications as well as service providers that could use its technology as an embedded system for network performance enhancement.
http://www.netli.com

• Since its founding in 1999, Netli has raised over $21 million in equity financing from leading venture capital firms including Morgenthaler Ventures, Bessemer Venture Partners, Alta Partners, Nokia Venture Partners, and Leapfrog Ventures. The company raised it last round in May 2002.
• 
  
  Netli has 42 employees.
• 
  
  Netli is led by CEO John K. Peters, who was previously the founding CEO of Sigma Networks, a provider of metropolitan area broadband network services. Prior to Sigma Networks, Mr. Peters was Executive VP for Concentric Network Corporation.

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