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Today's report from Web Editor
Susan Rush
• BT Looks To Max Shareholder Value
• Network Access Solutions Cuts Jobs
• Teligent Realigns For "On-Net" Focus
• 360 Reports Financials
• Broadband Briefs
BT Looks To Max Shareholder Value British
Telecommunications, a company that has been plagued by mounting debt and
falling profits, unveils the details of its restructuring plan. The plan
includes the creation of a new BT Group holding company, a public offering
of its wireless business and a possible offering of BT Ignite, its broadband
business, by the end of 2001.
The company hopes the reorganization will decrease its debt
by $14.2 billion by December 2001. In order to maximize shareholder value,
BT management will be encouraged to focus on key customer groups, including
broadband and IP and wireless, according to a company statement.
The company also released its third quarter financials,
posting a second quarter pre-tax profit of $670 million on sales of 10.8
billion, down from 1.3 billion in pre-tax profit during the same period a
year ago.
Related Stories:
It's
A Restructuring Free For All, BroadbandWeek Direct, 11/08/00
BT
May Be Forced To Action, BroadbandWeek Direct, 9/25//00
Network Access Solutions Cuts Jobs
Network Access Solutions
is trying to evolve with the times; the broadband service provider is
cutting 23 percent of its workforce to reduce costs and refocus its
business. Following its announcement, the company's stock dropped 7.5
percent to $2.31 as of 10:23 a.m. EST today, well below its 52-week high of
$40.00.
NAS plans to broaden its customer base by expanding its
service offerings to including integrated data networking, not just DSL
services, for its business customers along the East Coast. The sales force
will concentrate on selling bundled and integrated broadband services.
"The announcement...moves us into a success-based spending and growth
mode," said Jon Aust, chairman and CEO, in a prepared statement. The
145-employee layoff will help the company accomplish its goal of cutting
overhead by 40 percent.
Like many DSL providers, NAS experienced a disappointing
third quarter, turning in a loss of 83 cents a share, compared with 26 cents
a share during the same period a year ago.
Related Story:
Verizon
Strike May Thump CLEC Third Quarter, Broadband Week, 9/00
Teligent Realigns For "On-Net"
Focus
Teligent continues to
take a hit on Wall Street, with its stock price plunging 15.89 percent to
$5.63 during morning trading hours after reporting a loss of $228.1 million,
or $3.88 a share for the third quarter, compared with a loss of $143.6
million, or $2.66 a share during Q3 1999. Revenues jumped to $42.7 million,
up from $32.2 million during the previous quarter.
The broadband provider is refocusing its sales, operations
and real estate organizations efforts on its "on-net" business
strategy. On-net is Teligent's broadband fixed-wireless network. The
realignment will cost 780 Teligent workers their jobs, but the company is
predicting that the move will bring it in line to post positive EBITDA
(earnings before interest, taxes, depreciation and amortization) by 2004.
Teligent's third quarter has an EBITDA loss of $92.1 million.
The number of on-net buildings --buildings directly connected
to Teligent's local SmartWave networks -- increased 15 percent during the
quarter to 4,142.
Related Stories:
Bears
Draft Teligent, BroadbandWeek Direct, 8/30/00
Teligent
Continues Massive Buildout, Wireless Week, 8/14/00
360 Reports Financials
360networks reports third
quarter revenue of $119 million, up from $111 million during the same
quarter a last year. Despite the jump in revenues, the company suffered a
net loss of $51 million during the quarter, compared with a net profit of $3
million a year ago.
In a conference call with analysts, the company raised its
revenue projections for the fourth quarter by 40 percent to $130 million.
360networks also raised its revenue projection for projecting for the
year to $480 million, about 15 percent increase over its original forecast.
Shares of the Vancouver-based company were trading at $15.81 as of 12:45
p.m. EST today.
Broadband Briefs:
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The Federal Trade Commission is
scheduled to vote on the America Online-Time
Warner merger late today, but unresolved issues such as open access, may
delay the vote. The European Commission signed off on the deal last month, while
the FCC has decided to withhold its ruling until after the FTC's decision.
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Winstar Communications Inc.
secures an additional $1.02 billion in financing to expand its broadband
network, products and services. Microsoft, Compaq Computer Corporation, CSFB
Private Equity and Welsh, Carson, Anderson & Stowe, VIII, L.P. will kick
in $270 million in private equity investments.
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ARNet Inc. offers a 20
percent discount to its West Texas ADSL customers. The $34.95 a month price
tag comes as a result of cost savings ARNet is getting from its DSL supplier
IP Communications. IP is benefiting from the
FCC's January ruling that Bell companies must line-share with DSL providers.
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Gateway Inc. teams with
Broadcom Corp. to deliver shared
broadband Internet access between digital devices in the home's of gateway
customers.
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UtiliCorp Communications
Services will deploy Advent
Networks's Ultraband platform into its broadband cable network.
Ultraband provides a dedicated channel for each user. The integrated network
enables streaming video, teleconferencing, high-speed interactive gaming and
voice over IP.
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CinemaNow unveils
its video-on-demand pay-per-view service, premiering with
"Heaven's Burning." The service will feature Microsoft's
Windows Media Player for playing the movies and Windows Media Rights Manager
for all digital rights management functions. The service will also make use
of iBEAM Broadcasting's e-commerce
platform.
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Off Air Electronics Ltd. tabs Hybrid
Networks Inc. as a router and headend supplier for its two-way fixed
wireless Internet access in Dublin and Limerick, Ireland.
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