News Briefs January 2007

Level 3 Communications Inc. has completed its $1.4 billion acquisition of Broadwing Corp. Broadwing, based in Austin, Texas, delivers data, voice and media platforms to enterprises and service providers over its 19,000-mile fiber network. Approximately half of Broadwings revenue comes from the wholesale market, with business customers comprising the remaining revenue.

Level 3 also closed 2006 with the acquisition of the content delivery network (CDN) services business of SAVVIS Inc. for $135 million in cash. SAVVIS CDN services business has 50 employees, more than 100 customers and infrastructure in more than 20 countries. The deal is expected to close in the first quarter of 2007.

TelePacific Communications said it will buy Arrival Communications, gaining 64,000 access line equivalents in California. Arrival serves business customers with products ranging from voice, data, hosted e-mail and Web sites, private data networks and more. Terms of the deal were not disclosed. The transaction should be finalized in the first quarter of 2007. TelePacific earlier this year bought Mpower Communications.

Covad Communications Group Inc. said it has completed the buildout of its ADSL2+ network, which covers 14 million homes and businesses in Atlanta; Chicago; Dallas; Los Angeles; New York; Miami; Philadelphia; San Diego; San Francisco; San Jose, Calif.; Seattle; and Washington, D.C. In those markets, Covad said it can provide customers with broadband connections offering data speeds of up to 25mbps. Covad also announced plans to introduce higherspeed broadband access and new business-class services such as bonded T1. The company expects to make these services available directly to its business customers and indirectly via its Alliance Channel and wholesale partners in 2007.

Promisec Ltd., a developer of security software that identifies intrusions such as spyware on desktops and other endpoints, took the wraps off its U.S. channel program. The company has five partners now and is looking to sign up to 15 total by the end of 2007. There are three tiers gold, silver and bronze that correlate directly with a partners time and volume commitment, and also with the amount of focus a partner gives to security offerings. Margins range anywhere from 25 percent to 38 percent. Partner support includes lead distribution, an intranet, co-op marketing funds, case studies and other marketing collateral and co-branding options.

Fonality, provider of open-source, Asterisk-based IP telephony systems, now offers tiered reseller certification and training programs, which provide data and telephony resellers with enhanced readiness and expanded support for selling PBXtra, the companys IP PBX phone system. Fonalitys Business Partner Program offers resellers online training, support and demand creation programs through its three membership levels: Premium, Authorized or Affiliate.

Wire One Communications has achieved TelePresence Advanced Technology Provider status from Cisco Systems Inc. This designation is by invitation only and recognizes Wire One for having the capabilities necessary to deliver the Cisco TelePresence experience. Cisco TelePresence Meeting platform creates live, face-toface meeting experiences over an IP network.

Vonage Network Inc. has signed a three-year contract with EarthLink Inc. to offer its customers Wi- Fi Internet access in select cities throughout the United States. Under terms of the agreement, Vonage will buy Internet access on a wholesale basis from EarthLink in all cities where the company will build, own and operate municipal wireless networks. Vonage will then sell its own Wi-Fi Internet service to consumers under the Vonage brand. EarthLink has contracts for municipal Wi-Fi with the following cities: Philadelphia; Anaheim, Calif.; Milpitas, Calif.; and New Orleans.

Minnesota-based interconnect Cross Telecom has acquired American Communication Technologies Inc. (ACT), headquartered in Florida. ACT is a software developer and systems integrator that specializes in contact centers. Both Cross Telecom and ACT are Avaya BusinessPartners. Financial terms of the deal were not disclosed. The combined company will keep the Cross Telecom name and maintain its headquarters in Bloomington, Minn. ACT employees will be retained and work from ACTs Orlando, Fla., office.