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Today's report from Web Editor
Susan Rush
• AT&T Splits With Liberty
• Covad Reduces Earnings By $10.4M
• Soft Switch Market Is Ready To Explode
• Broadband Briefs
AT&T Splits With Liberty It
looks like the rumors are true, AT&T Corp.
will sever its ties with Liberty
Media Group next year. The move comes at a time when AT&T is
searching for ways to shed its mounting debt and appease federal regulators
with regards to its June acquisition of MediaOne Group Inc.
Liberty Media currently trades as an AT&T tracking stock,
but it operates independently. The spin off enables AT&T to convert the
Liberty Media shares into a publicly traded stock. "The spin off is
consistent with the rationale behind the company's recent decision to
restructure into four companies," said the company in a written
statement. "The spin off will also enable Liberty Media to raise
capital on its own."
In other AT&T news, a Travis County, Texas jury ordered Qwest
Communications Inc. to pay almost $350 million in punitive damages to
AT&T for repeatedly cutting one of its fiber-optic phone lines between
Austin and San Antonio. Qwest is likely to appeal the decision.
Related Stories:
AT&T
Plans Asset Sale, BroadbandWeek Direct, 11/8/00
AT&T
Borrows $25 Billion To Pay Debt,
Wireless Week, 10/31/00
Covad Reduces Earnings By $10.4M
Covad
Communications Group, Inc. is taking a hit on Wall Street, falling
nearly 10 percent during early trading today following the company's
downgrade of this third quarter results. The addition of five more delinquent
ISPs has caused the DSL provider to reduce its Q3 earnings to $56.3 million,
down from the $66.7 million reported last month.
In total, Covad now has 14 delinquent ISPs from
which it can not count revenues for the quarter. The company says the
revenue will be recognized after each ISP has satisfied its overdue
balances. "Despite the strong demand for DSL, the health of a portion
of our ISP channel has deteriorated very rapidly as the capital markets have
pushed many of these enterprises into financial distress," says Charles
McGinn, Covad chairman. The company plans to increase its volume with more
stable ISPs, including XO Communications Inc. and
Earthlink Inc.
The net loss for the quarter increased by $4.9
million to $125.3 million. The adjustments were made in advance of Covad
filing its quarterly earnings report with the U.S.
Securities and Exchange Commission.
Related Story:
Q3:
Monies Gained, Monies Lost, BroadbandWeek Direct, 10/18/00
Soft Switch Market Is Ready To
Explode
The broadband soft switch market is on the rise
and is expected to grow from a $2 billion industry in 2000 to a $36 billion
industry by 2004. The evolvement of interactive applications is helping to
fuel this market.
"The
New Broadband Switching Environment" report examines the markets
for soft switches, broadband ATM switches and broadband IP switches.
The report also takes a look at four types of switch vendors: large switch
manufacturers, computer manufacturers, start-ups and system integrators.
Related Stories:
DSL
Vendors Strive For End-to-End Solution, Broadband Week, 10/00
After
all the early hype...Is Fiber Any Closer to Home?, Broadband Week, 10/00
Broadband Briefs:
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America Online and Time
Warner may not be able to meet a self-imposed merger proposal deadline of
December 21, according to circulating reports. The Federal
Trade Commission recently postponed its vote to approve or block the merger,
pending open access concessions from the companies.
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Time Warner Telecom Inc.
has completed its fiber optic network in Winston-Salem, N.C. and has expanded
its Greensboro, N.C. network. The combination of the two networks creates a
local and regional network for the Triad area of Winston-Salem, High Point and
Greensboro.
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Looking Glass Networks Inc.
set to deploy several hundred thousand kilometers of Corning
MetroCor fiber throughout its broadband fiber optic networks in the United
States.
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Global Crossing Ltd.
will test Lucent Technologies' 40G optical
technology in its European network. Lucent's system is based on time division
multiplexing technology that transmits voice, video and data using a single
laser over a single wavelength of light.
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Akamai Technologies Inc.
inks a deal with BMG Entertainment to supply
its FreeFlow streaming video service to deliver online music videos.
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ASPs NetLedger Inc. and C3
Communications partner. Under the terms of the deal, C3 will market and
distribute NetLedger's e-business tool to its customers.
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Aerocast secures $15
million in financing from Motorola Inc. and Liberty Satellite LLC. The funding
enables Aerocast to continue the development of its streaming media software.
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Lighthouse Communications Inc.
expands its managed Internet access and broadband services to small and
mid-sized businesses in St. Louis, Mo.
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