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Today's report from Web Editor
Susan Rush
• Cisco Tops Estimates, As Usual
• Broadband: The Consumer Report Card
• Rivals Team For Next-Gen Phones
• Comcast Posts Q3 Net Profit
• Broadband Briefs
Cisco Tops Estimates, As Usual Cisco
Systems does it again, beating analysts' expectations by a penny. The
company posted a 66 percent increase in revenue to $6.52 billion during its
first fiscal quarter. Net earnings were $1.36 billion, or 18 cents a share,
compared to $814 million, or 11 cents a share during the same period a year
earlier. Analysts were predicting earnings of 17 cents a share.
Despite the strong financial showing, a few chinks in the
armor were apparent. Orders from telecommunications companies grew less than
10 percent during the quarter. Cisco chief executive John Chambers admitted
during a conference call that he was "more concerned" about
economic slowdown and telecom spending now, than he was three months
ago.
Even though Cisco is monitoring industry trends, it remains
upbeat about its future. The company is urging analysts to up their
estimates for the fiscal year ending next July by two to five cents. Cisco's
financial results did not have a big impact on its stock; shares were
trading at $56.56 during the morning hours.
Related Story:
Cisco Seals
Supply Pact, BroadbandWeek Direct, 11/06/00
Broadband: The Consumer Report Card
Lack of awareness and high prices are holding back the
broadband consumer market in the United States. Basically, consumers still
need to be convinced that broadband is the route for them, according to a
new consumer Internet survey from PricewaterhouseCoopers.
The 2000 PricewaterhouseCoopers Consumer Technology Survey
interviewed 2,500 consumers across five countries (United States, United
Kingdom, France, Germany and Australia) about their views of the Internet
and digital television. The report found that consumers still primarily use
the Internet to get things done. If broadband providers want to attract more
customers, more compelling content needs to be developed.
Unfortunately for broadband providers, analog phone lines are
still the predominant mode of Internet access from the home. Germany is
leading the five surveyed countries, with 48 percent accessing the 'Net with
a broadband connection. "Germany is an interesting situation because it
has been a heavily regulated market, but in the last 18 months, things have
started to change. Competitors are popping up," explains Mike Kelley, a
PwC partner in the entertainment media group. "Deregulation and lowered
costs are fueling that market."
The good news for the United States, is that PwC sees the
price of service declining "Early adopters are paying more, while build
out costs are being recovered," says Kelley. Getting the word out is
key for mass-market adoption of high-speed services. "Marketing is
being stepped up," says Kelley. "Deals such as free equipment or
installation will spark consumer use."
Related Stories:
Broadband
Is On The Fast Track, BroadbandWeek Direct, 11/01/00
It's
Splitsville For Broadband Content, BroadbandWeek Direct, 10/31/00
Rivals Team For Next-Gen Phones
The talks are complete, and rivals Toshiba
Corp. and Siemens AG are
set to co-develop high-speed, third-generation wireless phones. The joint
venture will give birth to a next-generation phone that is compatible with
both wide-band code division multiple access (W-CDMA) and global system for
mobile communications (GSM) formats. The goal is to have phones available in
Asia and Europe by 2002.
Each company will "design their own branded 3G devices,
which will be marketed and sold independently," according to a Toshiba
spokesperson. Both companies are hoping that their united front will bring
them a little closer to the top of the food chain in the global wireless
handset sales market. The fight will definitely be an uphill battle, with
the top three, Nokia, Motorola
and Ericsson, coveting the lion's
share of the handset market. Toshiba and Siemens' sales combined for only
seven percent of the market during the first quarter of this year.
Related Story:
Siemens
And Toshiba In 3G Talks, BroadbandWeek Direct, 11/03/00
Comcast Posts Q3 Net Profit
The third quarter has been a decent period for the cable
companies, and Comcast Corp.'s
financial results are no exception. Thanks to consumers' need for speed and
strong demand for cable television, the company reported net income of $1.25
billion, or $1.29 a share during the third quarter, compared to $335.10
million, or $.41 a share during the same period a year ago
Digital cable and Comcast@Home subscriptions helped pump up
income during the quarter. Comcast's high-speed Internet access service
attracted 66,000 more customers during the quarter, a 57 percent increase
over the previous quarter. Comcast@Home now has 303,000 subscribers, and the
company believes it is on pace to reach 375,000 by year's end.
The cable division added 190,000 digital cable customers,
which translates to a 14,600 weekly addition rate. The company finished the
quarter with 1.13 million digital cable subscribers.
Related Stories:
Charter
Charts Q3 Results , BroadbandWeek Direct, 11/03/000
Cox Revs
In Q3, BroadbandWeek Direct, 11/01/00
Broadband Briefs:
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Transmeta Corp. could spark the IPO
market. The chipmaker's 13-million share initial public offering was priced at
$21 a share, a boost from the originally targeted price of $11 to $13 a share. Transmeta
and its low-cost, low-power microprocessors will battle chip behemoth Intel.
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IBM and Kymata
sign a multi-year deal to develop next-generation optical networking
chips for high-speed e-business applications. The chips will be designed
around IBM's siliconoxynitride (SiON) process, a technology that applies
high-volume semiconductor manufacturing techniques to optical chip making.
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BayRing Communications will deploy a
next-generation broadband network using Convergent
Networks' multi-service broadband switch. The deal enables BayRing to
offer integrated voice and data services, including voice over DSL.
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BroadbandNOW inks a deal
with Intertech Private Cable to
deliver its always-on Internet connection to I.P.C. customers in Buffalo,
Rochester and Syracuse. The service will enable customers to stream audio
and video (including concerts and movies). Plans are in the works to expand
the streaming video content to include local news, local sports highlights
and local weather.
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LINK tabs HarvardNet
as its preferred DSL provider. HarvardNet will deliver its BusinessSpeed
DSL and DedicatedWeb hosting services to LINK's subscriber base.
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StarBand Communications launches its
high-speed, two-way Internet access via satellite at RadioShack
retail stores throughout the continental United States.
- Intel unveils two
new chips for DSL Internet access equipment. The IXP225 DSL Network Processor
is an open-system software-and-hardware solution for combining voice and data
in DSL-based devices and gateways. The IXP220 DSL Network Processor is
designed for data-only equipment.
- AT&T
Broadband expands its use of BroadJump,
Inc.'s Virtual Truck Installer into Dallas, Denver, Pittsburgh, Portland,
Seattle and the Bay Area. The self-installation software often negates the
need for a technician to drive to a customer's home to get high-speed Internet
services up and running.
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