2nd Half 2003 Wide Area Network Business Update

We are happy to report that telecom and datacom development activity has experienced a small but sustained increase since February of this year. Our business has seen the resurrection of projects that had been discussed on off and on for a year or more. This experience is supported by our partners and friends in various capacities. Still, this forward motion is careful with a great focus on the justification of cash expenditures and their timing.

Many projects are targeted for general availability by mid-2004. Right or wrong, many companies are positioning to participate in a recovering, very competitive market.

In February we reported that potential projects were clearly in the traditional WAN applications. While this is still largely the case, talk of VoIP has resumed after a long period of silence.

SONET/SDH projects continue to focus on low speed optical being fed by T1 and E1 circuits. In almost every case, multiple WAN technologies are implemented. The use of Virtual Tributaries and Tributary Units is becoming very popular to bridge between the optical and copper technologies also indicating a focus on the edge of the network. We still see only small pockets of new projects targeted at deeper inside the network.

On the standards front, T1.231 has been revised for traditional services. Additional sub-documents are expected to shortly be approved that will encompass several xDSL technologies. T1.231 is the standard that pervades US WAN operation for alarming and performance monitoring. You can get a free copy of NComm's T1.231 Revision Report.