Alcatel (Malverne, PA) and ADC (Minneapolis, MN) have agreed in principle to an alliance that seeks to bring international Multiple System Operators (MSOs) quick and cost-effective cable telephony solutions that can compete with traditional service providers. The collaboration will include Alcatel's 1570BB optical CATV distribution system and ADC's Homeworx cable telephony system that delivers high-capacity service over hybrid fiber/coax networks.

The two companies are demonstrating their combined solutions at this week's CeBit 2000 in Hannover, Germany, where they are working on a binding agreement for the alliance. (www.alcatel.com; www.adc.com)