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News > Technology
Lucent, TeraBeam venture
April 12, 2000: 8:08 a.m. ET

Firms form new company to develop high-speed Internet system
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NEW YORK (CNNfn) - Lucent Technologies and privately held TeraBeam Networks said Wednesday they will enter into a broadband venture to create and develop a high-speed Internet network.
    Lucent will invest $450 million for a 30 percent stake in TeraBeam Internet Systems and TeraBeam will hold the remaining 70 percent of the venture and provide research, development and manufacturing capabilities.
    graphicTeraBeam also tapped Lucent as its preferred supplier of optical components, networking equipment and other services, and all TeraBeam products now will feature Lucent's brand name.
    Using TeraBeam's fiberless optical network, the companies will work to speed Internet traffic, through a satellite system that sends data through the air using invisible light. The technology will be deployed to break through bottlenecks, where data is slowed down when transmitted through a local- area network (LAN) or wide-area network (WAN).
    Seattle-based TeraBeam Networks is backed by several investors, including Softbank Ventures, Morgan Stanley Dean Witter, T. Rowe Price and Fidelity Management.
    "To fulfill the potential of today's Internet requires the ability to deliver the very high speeds carried by local area networks across a city or country or across the world," TeraBeam CEO Dan Hesse said. "By tapping into Lucent's leadership in broadband networking, coupled with our breakthrough technology, TeraBeam is leading the charge in shattering the first mile speed barrier."
    In trading Tuesday, Lucent (LU: Research, Estimates) closed down 1-9/16 to 57-7/16. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.