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Telecommunications Reports presents....

                                  TR DAILY
                                  Oct. 19, 2001
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***See Monday's TR for an On-the-Record interview with Harold R.
MacKenzie, vice president-software at Layer2 Networks, Inc.  He
discusses ways to speed deployment of broadband services.


Table Of Contents
Click here for the full issue:
http://www.tr.com/online/trd/2001/td101901/index.htm 


U.S. ASKS SUPREME COURT
TO REVIEW NextWave DECISION
http://www.tr.com/online/trd/2001/td101901/Td101901.htm

MISSOURI PSC SUSPENDS SW BELL's LONG DISTANCE TARIFFS
http://www.tr.com/online/trd/2001/td101901/Td101901-01.htm

DESPITE LAPSE OF `NET TAX BAN,
STATES NOT EXPECTED TO RUSH TO TAX
http://www.tr.com/online/trd/2001/td101901/Td101901-02.htm

QWEST BOOSTS STAKE IN KPNQwest, LEANS AGAINST
EXERCISING OPTION TO BECOME MAJORITY OWNER
http://www.tr.com/online/trd/2001/td101901/Td101901-03.htm

NOKIA, SCIENTIFIC-ATLANTA BUCK TREND,
MANAGE TO POST PROFITS IN THIRD QUARTER
http://www.tr.com/online/trd/2001/td101901/Td101901-04.htm

CUSHIONED BY EARLIER WARNINGS, ANALYSTS
GET WHAT THEY EXPECT FROM NORTEL, CORNING
http://www.tr.com/online/trd/2001/td101901/Td101901-05.htm

TELECOM EARNINGS ROUNDUP 
http://www.tr.com/online/trd/2001/td101901/Td101901-06.htm

TELECOM SECTOR WEEKLY FUNDING ROUNDUP
http://www.tr.com/online/trd/2001/td101901/Td101901-07.htm

NEWS IN BRIEF
http://www.tr.com/online/trd/2001/td101901/Td101901-08.htm


*****************************************************************
U.S. ASKS SUPREME COURT
TO REVIEW NextWave DECISION

As negotiations continued to settle the dispute surrounding
NextWave Telecom, Inc., the federal government today asked the U.S.
Supreme Court to review a lower court ruling that the FCC illegally
reclaimed the carrier's "C" and "F" block PCS (personal communica-
tions service) licenses.

The U.S. Solicitor General's Office filed a petition for a writ of
certiorari with the Supreme Court.  Today was the deadline for the
filing, which sources said was designed to preserve the FCC's
options in the case.  The U.S. Court of Appeals in Washington ruled
in June that the FCC illegally reclaimed NextWave's licenses while
the company was under the protection of a bankruptcy court (TR,
June 25).

Meanwhile, several wireless carriers that bid on NextWave's
spectrum at an auction earlier this year appeared to be nearing an
agreement with NextWave and the FCC that could settle the 5-year-
old dispute.  The Office of Management and Budget also is
participating in the negotiations.  Under the agreement, NextWave
would net about $5 billion and the U.S. Treasury would get about
$11 billion, according to sources.

In another development, NextWave said it would seek a continuance
of an Oct. 22 hearing before the U.S. Bankruptcy Court for the
Southern District of New York (White Plains).  NextWave wants the
hearing rescheduled for Nov. 1.  It would be the third such delay
of the hearing.  At the hearing, the court will consider the ade-
quacy of NextWave's disclosure statement accompanying its
bankruptcy reorganization plan and whether to approve NextWave's
technology cooperation and subscription agreements with QUALCOMM,
Inc.

Also, in a filing with the bankruptcy court, the FCC this week
asked NextWave to turn over numerous documents and information
related to its reorganization, including information on its
investors, business partners, and business agreements, as well as
cash flow, revenue, income, costs, and subscribership forecasts. 
The Commission also wants documents that support NextWave's asser-
tions that its business plan as a "carrier's carrier," selling
services on a wholesale basis to other providers, would be
successful.

-- Paul Kirby, pkirby@tr.com


*****************************************************************
MISSOURI PSC SUSPENDS SW BELL's LONG DISTANCE TARIFFS

The Missouri Public Service Commission has suspended two tariffs
filed by subsidiaries of Southwestern Bell Communications Services,
Inc., until Feb. 17, 2002.  At a prehearing conference today, the
commission said it would review the tariffs, which were part of the
subsidiaries' applications for certificates to offer long distance
service.  Southwestern Bell Long Distance and SBC Long Distance
applied for the certificates.

The commission's tariff suspension could delay SW Bell's entry into
the long distance market.  The FCC has until Nov. 18 to approve or
reject SW Bell's application to provide in-region interLATA (local
access and transport area) service under section 271 of the federal
Telecommunications Act of 1996.

AT&T Communications of the Southwest, Inc., said the rates in the
subsidiaries' proposed tariffs were predatory.  If the subsidiaries
were required to pay SW Bell's switched access charges, their rates
would be priced below cost, AT&T said.  SW Bell characterized
AT&T's predatory pricing claims as further attempts to delay SW
Bell's entry in the long distance market.

-- Ed Rovetto, erovetto@tr.com


*****************************************************************
DESPITE LAPSE OF `NET TAX BAN,
STATES NOT EXPECTED TO RUSH TO TAX

Congress may have recessed this week without agreeing to extend the
moratorium on Internet taxation before its Oct. 21 expiration date,
but a National Conference of State Legislators (NCSL) aide told
TRDaily not to expect any immediate movement at the state or local
levels to impose e-commerce or Internet access taxes.

That's because only a "handful" of state legislatures are currently
in session, and none of them are currently considering bills that
would defy the moratorium, the NCSL staffer said.  There's also a
"misconception" that the legislatures would be the only govern-
mental bodies to approve measures to tax Internet access, the aide
said.  Instead, he explained, such change could come from state tax
departments that interpret their current tax laws as applying to
the Internet.

The House on Oct. 16 did approve a bill (HR 1522) to extend the
current moratorium until Nov. 1, 2003, but a push to take up
similar legislation in the Senate was blocked late last night. 
Both chambers are expected to return from their brief recesses on
Tuesday, Oct. 23.

--Gayle Kansagor, gkansagor@tr.com


*****************************************************************
QWEST BOOSTS STAKE IN KPNQwest, LEANS AGAINST
EXERCISING OPTION TO BECOME MAJORITY OWNER

Qwest Communications International, Inc., has "no current
intention" to acquire a majority stake in its European joint
venture, even though it will receive an option to do so, said
Joseph Nacchio, Qwest's chairman and chief executive officer.

Qwest said late yesterday it would boost its voting stake in
KPNQwest NV from 44.3% to 47.5% by paying $64.1 million for 14
million shares.  Qwest's principal shareholder, Anschutz Co., will
buy six million shares.  In a related transaction, KPNQwest said it
would buy Global TeleSystems, Inc. (GTS).

Qwest has an option to boost its stake in KPNQwest by acquiring
some or all of the remaining shares held by its European partner,
Dutch carrier KPN NV.  But Mr. Nacchio suggested Qwest was leaning
against exercising that option.  Rather than invest more in Europe,
Qwest has many domestic uses for its cash, he said.

In addition, its new investment in KPNQwest will give it adequate
influence over the venture without requiring that the venture's
finances be consolidated with Qwest's -- as would be the case if
Qwest had majority control, he said.

"I don't know the reason to step up any more than we have," he told
analysts during a conference call.  Qwest may assign its option to
other potential partners with whom it has held discussions, he
added.

Its new investment in the joint venture will "move KPNQwest to the
position in Europe that we'd always envisioned, which is kind of a
mirror image of Qwest on the far side of the Atlantic," he said. 
"It's going to eliminate a complicated structure that was useful
when we set up the joint venture but no longer was providing the
kind of governance we thought the venture needed."

Rather than equal representation from each partner, the new
KPNQwest board will have three directors from Qwest, one from KPN,
and two independent members.  While Qwest will retain "special
rights" to approve "certain strategic decisions," KPN will lose its
equivalent rights.

The transaction, which the companies expect to close by year-end,
will help KPN in its effort to reduce debt by $4.5 billion by year-
end (TRDaily, Sept. 7).  KPN now will be allowed to sell large
blocks of KPNQwest shares as early as 2003, a year earlier than
permitted under a previous agreement.

For KPNQwest, the transaction will clarify its governance and
enable it to respond more quickly to market conditions, Mr. Nacchio
said.  The related transaction to acquire GTS, a London-based
carrier, means that KPNQwest will change its focus from building
networks to deploying service, said Jack McMaster, KPNQwest's
president and CEO.

The GTS assets will deepen KPNQwest's network presence throughout
Europe, will add 48,000 accounts to KPNQwest's customer base, and
will double its Web-hosting sites, Mr. McMaster said.  The $580
million acquisition will be accomplished through a prepackaged
bankruptcy filing in the U.S. and the Netherlands.

KPNQwest will issue $190 million in convertible notes to GTS
bondholders in exchange for GTS bonds and convertible securities
with a face value of $1.7 billion.  KPNQwest will assume GTS's $190
million credit facility and $225 million in capital leases.  A bank
syndicate has agreed to provide the combined company with a credit
facility of $450 million.

A majority of bondholders have consented to the exchange, GTS said. 
The transaction will require approval from bankruptcy courts in the
U.S. and the Netherlands, European regulators, and KPNQwest
shareholders.  Closing is expected in March 2002.

"This transaction represents the completion of the consensual
restructuring process that we began late last year," said Robert
Amman, GTS's chairman and CEO.  "We greatly regret that no value
can accrue to our preferred and common shareholders."

Mr. Nacchio said KPNQwest and GTS together would be able to take
advantage of the hole left in the global marketplace by the failure
of Concert, the global joint venture of AT&T Corp. and British
Telecommunications plc (TRDaily, Oct. 16).

"There's a greater void to serve multinational accounts,
particularly in the theaters of North America and Europe," he said. 
"I think it's ironic that in the same industry, two of the old
traditional market leaders dissolved a venture to accomplish
exactly what we're stepping up to do.  Time will tell who's right."

-- Tom Leithauser, tleithauser@tr.com


*****************************************************************
NOKIA, SCIENTIFIC-ATLANTA BUCK TREND,
MANAGE TO POST PROFITS IN THIRD QUARTER

With much of the telecom equipment sector still awash in red ink,
Nokia Corp. and Scientific-Atlanta, Inc., bucked the trend by
reporting solid, but reduced, levels of profitability. 

Helsinki-based Nokia today posted third quarter revenues of $6.33
billion, off 7% from year-ago figures.  Profits came in at $683
million, down 18% from last year.  Driving revenue growth during
the third quarter was the firm's mobile phone business, which
generated $4.73 billion of sales, off just 3% from the comparable
quarter last year.  Revenues from Nokia's network business tailed
off 14% to $1.49 billion. 

"Nokia, as a flexible, lean, and focused organization, has done
more than just weather the storm of the past several months," said
Jorma Ollila, chief executive officer.  "We succeeded in sustaining
solid profitability and high cumulative operating cash flow. . .in
an intensely competitive and volatile environment."

Moreover, Nokia pushed up estimates for the fourth quarter, fore-
casting that overall sales would increase as much as 20% above
third quarter levels due to renewed strength in mobile phone sales. 
The company expects a modest increase in earnings.

Scientific-Atlanta, a maker of cable TV set-top boxes and other
broadband delivery gear, late yesterday reported $410.1 million of
revenues for its fiscal first quarter ended Sept. 28, a whopping
31% less than year-ago figures.  Helped by cost-cutting efforts,
the firm still managed to push out a $37.1 million quarterly profit
from operations versus $63.8 million for the same quarter last
year.

"Booking activity was slower in the quarter due to the economy, and
following the events of Sept. 11, the company's normally back-end
loaded bookings did not materialize in the last few weeks of the
quarter," Scientific-Atlanta said.  Since the end of the quarter,
however, "the order take rate has been significantly higher than in
the first quarter," the firm said, adding it had received orders
for 700,000 digital set-top boxes thus far in the current quarter.

"In a very difficult quarter, we continue to be profitable," said
James McDonald, chief executive officer.  Regardless of top-line
activity, Scientific-Atlanta continues to whittle away at expenses. 
It announced plans to lay off 750 employees or about 10% of the
workforce.  Those cuts and others will strip $61 million out of the
firm's cost structure on an annual basis beginning in the fiscal
third quarter and lead to a $22 million charge in the second quar-
ter. 

-- John Curran, jcurran@tr.com


*****************************************************************
CUSHIONED BY EARLIER WARNINGS, ANALYSTS
GET WHAT THEY EXPECT FROM NORTEL, CORNING

Nortel Networks Corp. sees signs that spending by telecom service
providers is stabilizing, albeit at a level far below the heyday of
1999 and early 2000.  "We believe we are beginning to see early
indications that capital spending by service providers is
approaching sustainable levels," said Frank Dunn, the company's
incoming president and chief executive officer.  But he said it
remained "difficult to predict" where that level would be.

In releasing their third quarter financial results, Nortel and
Corning, Inc., showed symptoms of the same disease:  a slowdown in
demand for telecom equipment and data networking gear.  Both
companies in recent weeks have disclosed plans to reduce their
workforces, close facilities, and discontinue product lines to
bring their costs in line with lower revenue.  Both also warned
Wall Street to expect lower sales and earnings.

The companies' results for the quarter ending Sept. 30 were largely
in line with reduced expectations.  At Nortel, revenues from
continuing operations were $3.7 billion, a 45% drop from a year
ago.  The net loss was $2.2 billion versus a net gain of $597
million for the same period last year.

Corning posted third quarter sales of $1.5 billion, a 21% decline
from the year-ago figure.  Its net income was $85 million compared
with $317 million a year ago.

"This is a very different company in a very different and still
difficult environment," Merrill Lynch & Co. analyst Thomas B. Astle
said of Nortel.  Nortel's stock "starts to look interesting" only
if there are signs that "the market is bottoming. . .and the
company's financial house is now in order," he said.  "However, we
think we are a little too early on both of these."

Regarding Corning, Merrill Lynch analyst Steve Fox said the
company's management "has as good a handle on its business as could
be expected given the volatile environment."

Nortel declined to offer predictions regarding its fourth quarter
performance.  Corning said it expected fourth quarter sales in the
range of $1 billion and a loss of $0.20-$0.25 per share.

-- Tom Leithauser, tleithauser@tr.com


*****************************************************************
TELECOM EARNINGS ROUNDUP 

Conexant Systems, Inc., generated $201 million of revenues for its
fiscal fourth quarter ended Sept. 30 versus $200.1 million in reve-
nues for the preceding quarter and $561.4 million of sales in the
fourth quarter of last year.  Pro forma net loss for the latest
quarter was $136.6 million versus a $43.5 million profit in the
year-ago quarter. 

Intersil Corp., a maker of wireless network equipment, posted third
quarter revenues of $113.4 million, down from the $166.2 million
generated in the same quarter last year.  For the most recent
quarter, Intersil turned in a net loss of $3.3 million versus a
$19.1 million profit in the year-ago quarter.  For the fourth
quarter, Intersil expects to turn a profit with sequential revenue
growth of 3% to 5%.

Prodigy Communications Corp., which agreed this week to an
acquisition by SBC Communications, Inc., said third quarter reve-
nues were $95.2 million versus $121.0 million in the year-ago
quarter.  Net loss, however, improved to $29.0 million in the
latest  quarter, from $62.8 million a year ago.

Integrated Device Technology, Inc.'s revenues for its fiscal second
quarter ended Sept. 30 slid to $97.1 million, down from $115.9
million in the previous quarter and $268.7 million a year ago.  Net
losses for the most recent quarter were $5.3 million versus a
profit of $86.3 million last year.  IDT, a communications-related
semiconductor maker, said it had begun to see a "trend to recovery"
in orders for some processors at the end of its most recent
quarter. 

Advanced Fibre Communications, Inc., said third quarter revenues
slid to $84.6 million from $114.1 million in the year-ago quarter. 
Despite the top-line woes, Advanced Fiber posted net income of
$15.8 million for the most recent quarter, which included
securities trading gains, versus a $12.9 million profit for the
same quarter last year.  Citing "the most difficult market
environment in recent memory," the company said recent
restructuring efforts had cut workforce headcount by 9%.

Tekelec, a developer of telecom signaling infrastructure, posted
third quarter revenues of $77.5 million versus $83.8 million in the
year-ago quarter.  The most recent quarter featured a $2.5 million
net loss, compared to a $6.1 million profit last year.

Illuminet Holdings, Inc., a provider of switching and database
services to telecom service providers, grew third quarter revenues
to $52.3 million from $41.6 million in the same period last year.
Net income for the most recent quarter was $10.9 million versus
$9.9 million last year.

Somera Communications, Inc., turned in third quarter revenues of
$54.9 million accompanied by a $4.0 million profit versus $58.2
million of revenues and $6.6 million of net income for the year-ago
quarter.  Somera is a telecom infrastructure equipment manufactur-
er.

Applied Micro Circuits Corp. said revenues for its fiscal second
quarter ended Sept. 30 were $41.3 million, down from $97.0 million
a year ago.  Net losses for the most recent quarter were $12.7
million versus a $35.6 million profit a year ago.  "I believe that
our business has stabilized, and we are currently at the bottom
from a revenue standpoint," commented Dave Rickey, chief executive
officer.  Applied Micro makes integrated circuits for optical net-
works. 

Com21, Inc., a cable modem maker, posted third quarter revenues of
$30.1 million, down from $34.1 million in the second quarter of the
year and $60.6 million a year ago.  The net loss for the latest
quarter was $10.6 million versus $24.8 million in the year-ago
quarter.

Covad Communications Group, Inc., a bankrupt DSL (digital sub-
scriber line) service provider, reported a net increase of 13,000
lines in service on its network for the third quarter.  Covad ended
the period with 346,000 lines in service.

Carrier Access Corp. generated third quarter revenues of $20.9
million accompanied by a net loss of $8.1 million.  In the same
quarter last year, the company posted revenues of $40.1 million
with a $4.0 million profit.  Carrier Access is a telecom equipment
manufacturer. 

Western Multiplex Corp., a maker of wireless network equipment,
posted revenues of $21.7 million for the third quarter, down from
$29.9 million in the year-ago quarter.  Net losses for the most
recent quarter were $5.7 million versus a profit of $1.6 million a
year ago. 

Sycamore Networks, Inc., warned that revenues for its fiscal first
quarter ending Oct. 27 would decline to a range of $20 million to
$25 million.  It will record a pro forma net loss of up to $44 mil-
lion.  Restructuring efforts are expected to produce charges of up
to $210 million.  Those are related to excess inventory, layoffs of
240 employees, and asset write-downs.  "Without clear signs of a
turnaround in customer spending, Sycamore is taking action to
reduce expenses and resize the business for this new economic
environment," said Dan Smith, chief executive officer. 

Sunrise Telecom, Inc., said net sales for the third quarter fell by
nearly half to $17.9 million from $35.0 million in the year-ago
quarter.  For the most recent quarter, Sunrise squeaked out a
$90,000 profit versus $7.3 million of profit in last year's third
quarter.  Sunrise provides service verification equipment for tele-
com and Internet networks. 

Ulticom, Inc., which makes software for telecom service providers,
forecasted sales of $13 million to $14 million for its third
quarter ending Oct. 31.  It expects a modest profit for the period.

Nuance Communications, Inc., saw third quarter revenues decline to
$9.2 million and a net loss of $11.3 million.  In the year-ago
quarter, Nuance generated $14.4 million of revenues and a $4.6
million net loss.  Nuance is a maker of speech recognition and
other voice-related telecom software. 

Hybrid Networks, Inc., posted $10.4 million in gross sales for the
third quarter and a $922,000 net loss versus $5.7 million in gross
sales and a net loss of $12.9 million during the same quarter last
year.  Hybrid, a maker of fixed broadband wireless systems, said
fourth quarter revenues were expected to fall to the $5 million
range.

Netro Corp., a broadband wireless access software provider, posted
third quarter revenues of $6.1 million, up from $2.1 million in the
second quarter of this year but down from the $20.5 million booked
in the year-ago quarter.  The net loss for the most recent quarter
was $7.0 million versus a small profit in the same quarter last
year.  Netro said it had begun to "witness the beginning of a
recovery within our customer base" early in the third quarter. 
"However, we remain concerned about the general economic
sluggishness, particularly following the tragic events of Sept.
11."


*****************************************************************
TELECOM SECTOR WEEKLY FUNDING ROUNDUP

Following are highlights from this week's telecom sector corporate
financing deals, with funding recipients listed in alphabetical
order:

Alamosa Holdings, Inc., filed with the Securities and Exchange
Commission for a proposed offering of up to 4.2 million shares of
common stock.  Proceeds are slated for general corporate purposes,
including expanding coverage areas in the firm's existing wireless
territories and beyond.

Artesyn Technologies, Inc., said it had obtained a waiver from bank
lenders through Dec. 1 for financial covenant tests under its
existing revolving credit agreement.  As part of the waiver
agreement, the size of Artesyn's credit agreement was permanently
cut to $150 million from $275 million.  The company hopes to have
a permanent amendment to the credit facility completed by Dec. 1. 

AT&T Corp. expects to receive up to $1.5 billion in proceeds from
the sale of 19.2 million shares of Cablevision NY Group Class A
common stock and trust securities backed by another 23.4 million
Cablevision NY shares.  AT&T said it would use proceeds to reduce
debt. 

CellStar Corp. said it had amended its credit facility with
Foothill Capital Corp. to increase commitments to $85 million from
$60 million previously. 

Coriolis Networks, Inc., closed on $32 million of venture financing
with funders including TL Ventures and EnerTech Capital.  Coriolis,
based in Boxborough, Mass., makes optical networking software. 

Danger, Inc., a wireless Internet device maker, closed on $36
million of venture financing from funders including Redpoint
Ventures and the venture capital affiliates of Deutsche Telekom AG
and Orange SA.

Digital Fountain, based in Fremont, Calif., secured $20 million in 
financing from funders including Macrovision, British Telecommu-
nications plc, and Spinnaker Ventures.

Global Communication Devices, a wireless networking semiconductor
supplier based in North Andover, Mass., secured $15.6 million of
venture financing from funders including Walden International
Investment Group, Lucent Venture Partners, and Goldman Sachs. 

InterDigital Communications Corp. announced that Nokia Corp. had
agreed to increase funding -- from $40 million previously to $58
million -- for InterDigital's Wideband CDMA [code-division multiple
access] technology development program. 

International FiberCom, Inc., said it was in talks with its
commercial banking syndicate to address loan covenant violations
that will occur as a result of the firm's expected third quarter
loss and pending restructuring charges.

L-3 Communications Holdings, Inc., announced plans to sell $350
million of convertible senior subordinated notes due 2011 in a
private placement, with an overallotment of up to 20%.  Proceeds
are slated to fund acquisitions and other corporate needs.

Mobile Satellite Ventures LLC, a joint venture of Motient Corp. and
BCE, Inc.'s TMI Communications unit, has arranged for $55 million
of subordinated convertible note financing with investors including
Motient, Telecom Ventures, Columbia Capital, and Rare Medium Group.

NEC Eluminant Technologies, Inc., a provider of broadband access
products, secured $26 million of additional financing from its
indirect parent company NEC Corp. and ITOCHU Corp. 

PanAmSat Corp. said it had begun hiring investment banking firms to
raise $2 billion in bank and other debt financing.  Proceeds will
be used to pay off a $1.7 billion term loan owed to PanAmSat parent
company Hughes Electronics Corp.  PanAmSat expects to complete the
financing effort by year-end.

PhotonEx Corp., a Maynard, Mass.-based photonic systems developer,
received $90 million in equity financing from funders including
Axxon Capital, Boston Millennia Partners, and JP Morgan Investment
Management. 

Proximion Fiber Optics AB, of Wilmington, Del., secured $10 million
in private financing from funders including Celtic House and Add
Partners. 

ROHN Industries, Inc., a telecom equipment supplier, said it was
renegotiating certain aspects of its bank credit agreement after
missing a covenant related to EBITDA (earnings before interest,
taxes, depreciation, and amortization) levels.  ROHN expects the
talks to conclude by year-end.

Stream Communications Network, Inc., a Vancouver-based broadband
cable TV company, hired Janco Partners to arrange sales of stock or
debt securities to generate proceeds ranging from $10 million to
$40 million.

Telephone & Data Systems, Inc., filed with the Securities and
Exchange Commission a proposed shelf offering for up to $1 billion
of debt securities.  Proceeds would be devoted to debt
refinancings, acquisitions, and other uses.

Teradyne, Inc., plans to launch a public offering of $300 million
of convertible senior notes due 2006.  Proceeds are slated for
working capital and other corporate purposes.

Virtela Communications, Inc., a provider of virtual private network
services, closed on a $35 million venture financing round with
funders including Norwest Venture Partners, RSA Ventures, and
Juniper Networks.

Wireless Matrix Corp. intends to offer 7.5 million special warrants
to raise $9.5 million to fund capital expenditures.  Wireless
Matrix, based in Calgary, is a developer of wireless data services
for business customers.

XM Satellite Radio said it had reached agreement on basic terms of
a $66 million funding package, including $35 million in new debt
financing with Boeing Capital Services Corp. and $31 million in
restructured obligations with Boeing Satellite Systems
International Inc.  XM said it expected the funding deal to close
later this month.


*****************************************************************
NEWS IN BRIEF

Citing health and safety concerns, the FCC has suspended for
yesterday and today parties' ability to file hand-delivered or
messenger-delivered paper filings.  As of Oct. 22, the FCC will no
longer accept such filings at its headquarters at 445 12th St.
S.W., Washington, D.C.  Such filings may be made at 9300 E. Hampton
Drive, Capitol Heights, Md.  To accommodate the change, the time
deadline for filing at the Capitol Heights location has been
extended to 9 p.m.  All Oct. 18 or Oct. 19 paper and electronic
filing deadlines have been extended to Oct. 22.  Filings and other
documents sent to the Commission using the U.S. Postal Service or
overnight delivery services should continue to be addressed to the
12th St. location.  The Commission will then divert the deliveries
to the Capitol Heights location for screening....

Tyco International Ltd. has signed a definitive agreement to
acquire the outstanding 11% equity stake that it does not already
own in TyCom Ltd. for stock valued at $15.42 per share.  Earlier
this month, Tyco launched the buyout effort with a bid valued at
$14 per share.  Last year, Tyco sold the majority stake in TyCom to
the public at $32 per share....

Focal Communications Corp. announced that shareholders voted to
approve the firm's proposed $430 million recapitalization.  Focal
said the plan would close on schedule, subject to other closing
conditions....

Mediacom Communications Corp. said it had reached an agreement with
At Home Corp. for the continued provisioning of Mediacom's new
high-speed Internet customers.  Mediacom's announcement follows
similar agreements between other broadband providers and At Home,
whose recent bankruptcy filing had put existing provisioning
agreements into doubt....

Polycom, Inc., completed its acquisition of PictureTel Corp. in a
deal that exchanged PictureTel common stock for $3.11 in cash and
0.11 shares of Polycom stock.


********************************************************
TR DAILY Copyright 2001 Telecommunications Reports International,
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