Convergent expands net with Cisco

Enterprise network carrier Convergent Communications last week signed a memorandum of understanding with Cisco Systems that includes deployment of Cisco's switching platform and gives the vendor a $15 million equity position in the private carrier.

Under terms of the deal, valued at $100 million, Cisco will supply its MGX 8800 IP+ATM multiservice switching platform and customer premises equipment. The platform lets the carrier create a packet-based network using either Internet protocol or asynchronous transfer mode.

"If in five years ATM goes away, we have the ability to go to IP throughout," said Greg Tennant, senior product manager for Convergent. "Conversely if ATM gets pushed out further, we can use that, too."

The deal also will expand Convergent's enterprise points of presence from 16 cities this year to 50 in 2001. The Cisco deal allows the company to take more control over its own network while stepping further into voice over IP and frame relay.

"If you're going to start offering those services, you can't get that on a resale basis," said Tennant.

The deal doesn't push the company completely into the competitive local exchange carrier market, but gives it more options, said Tom Friedberg, telecommunications analyst with Janco Partners. "I think they simply want to be able to give people a migration path from the more crude PBX."

Qwest Communications announced that it has completed 16,200 miles of its 18,500-mile U.S. network. Company plans call for completion of the Internet protocol network by June 30.

Competitive local exchange carrier Advanced TelCom Group Inc. picked Nokia's Speedlink as its enabling platform for digital subscriber line services. ATG will deploy the system in all its central offices.

IXC Communications Inc. is expanding its business-to-business division, Eclipse Telecommunications, after completing the acquisition of Coastal Telephone Co.

Under a new deal with Covad Communications, CLEC TelePacific Communications will offer DSL to customers in California and Nevada. The company entered the Internet services arena last month with the acquisition of DigitalVelocity.