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Lucent, TeraBeam venture
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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.
 TeraBeam 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. 
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Lucent Optical
TeraBeam
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