(UPDATE) Ascend Buys Small Stake In DSL-Technology Start-Up Fibex Systems
Dow Jones Online News, Friday, June 26, 1998 at 12:22
NEW YORK -(Dow Jones)- Ascend Communications Inc., itself the subject
of recent takeover rumors, has reportedly acquired a small stake in
start-up firm Fibex Systems, which is developing equipment for
high-speed digital modem connections over ordinary copper telephone
wires.
Fibex develops gear based on the digital subscriber line, or DSL,
technology. The firm is aiming its products at new companies springing
up to compete with the Baby Bells for local telephone service, according
to The Press Democrat of Santa Rosa, Calif. These companies, known as
competitive local exchange carriers, or CLECs, lease telephone lines
from the Baby Bells and install their own equipment at the central
switching office to provide voice and high-speed Internet services. Many
CLEC's focus on selling telephone and data services to small and midsize
companies.
A host of other companies are developing DSL gear but Fibex boasts
that its technology is more versatile, compact and advanced. It is
banking on a product it calls "dlc Plus," which is designed to connect
offices and ultimately homes to the central telephone network at high
speeds and in a cost-efficient manner.
Ascend, which makes a variety of networking gear, specializes in
"remote-access" products, which Internet-service providers and
corporations use to link users to various networks. Ascend (ASND)
recently rolled out products to broaden its offerings in the virtual
private networking market. Virtual private networks are dedicated
communications tunnels, or avenues, set up across public and private
networks to assure higher quality service.
With Alcatel-Alsthom SA planning to gobble up DSC Communications
Corp., Tellabs Inc. announcing a deal to buy Ciena Corp. and Canadian
telecom-equipment maker Northern Telecom Ltd. recently announcing plans
to acquire computer-networking equipment maker Bay Networks Inc.,
analysts many makers of telecom- and computer-networking equipment will
have a difficult time remaining independent.
As merger mania seizes the industry, analysts say a likely next
target could be Ascend, which might be attractive to Lucent or Tellabs.
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