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Today's report from Web Editor
Susan Rush
• BellSouth Cuts Earnings; Stock Drops
• DSL Access Concentrator & CPE Markets Surge
• The Donald's GM Building Goes High Speed
• Broadband Briefs
• Next Week In Broadband
BellSouth Cuts Earnings; Stock Drops BellSouth
Corp. cut its earnings forecast for 2001, and its stock responded in
turn on Wall Street, falling nearly 14 percent during early trading today.
The regional phone company expects its earnings per share to grow 7 to 9
percent next year, down from the 13 to 15 percent previously announced.
The revised estimate is due in part to the company's
aggressive plans to triple its number of DSL subscribers next year and move
forward with the expansion of its wireless business in Latin America.
"Our customers have told us that they want access to high-speed data
services," says Duane Ackerman, BellSouth chairman and CEO. In response
to this need for speed, the company expects to add an additional 400,000 DSL
subscribers next year. "Through expanded development strategies and
highly successful self-installs, we believe our 2001 projection is very
achievable," Ackerman continues. Revenue from its expanded DSL service
is expected to reach $225 million in 2001, according to the company.
BellSouth shares were down $6.75 to $42.50 during the morning
hours. BellSouth is not alone; it is not the only local phone company
struggling on Wall Street today. SBC
Communications Inc. was down $2.44 to $55.63 and Verizon
Communications fell $2.14 to $51.69 this morning.
Related Stories:
BellSouth
Rings In Q3, BroadbandWeek Direct, 10/19/00
BellSouth
Forks Over $750,000, BroadbandWeek Direct, 11/3/00
DSL Access Concentrator & CPE Markets
Surge
Revenue for the DSL equipment market grew 32
percent to $1.3 billion during the third quarter, according to a new report
released by market research firm Dell'Oro Group.
The DSL access concentrator market posted $919 million in revenue for
the quarter. Alcatel continues to lead
the DSL access concentrator market in terms of revenue, posting $315.9
million during Q3 -- double the revenue of its nearest competitor, according
to the report. Other leading vendor revenue generators in this market
include Lucent Technologies, Cisco
Systems, Copper Mountain
Networks Inc. and Nortel
Networks.
The customer premise equipment market also made
a strong showing during Q3, posting a $397 million in revenue, a 7 percent
increase over the previous quarter. Efficient
Networks generated the most revenue in the DSL CPE market during the
quarter, posting $111.3 million. Other vendors rounding out the top
five in this market include Alcatel, Westell
Technologies, 3Com and Orckit
Communications Ltd.
The Dell'Oro Group's "Routers, Access &
Voice" report focuses on quarterly analysis of market size, market
share, port/unit shipments and average selling prices as it pertains to
markets and vendors. The report provides data and analysis on access
concentrators, CPE, legacy routers and voice & data routers.
Related Stories:
DSL
Zeros In On Video, BroadbandWeek Direct, 8/31/00
DSL
Is On The Rise, BroadbandWeek Direct, 7/25/00
The Donald's GM Building Goes
High-Speed
OnSite
Access Inc. snags a deal to provide high-speed communications services
to tenants in the GM Building in Trump International Plaza in Manhattan. The
building-centric integrated communications provider will offer the tenants,
including Estee Lauder, General Motors and CBS Broadcasting, high-speed
Internet, data and voice communications services. Under the terms of the
agreement, OnSite will also assign a building communications manager to the
GM Building to support tenants with their business communications decisions.
OnSite has targeted New York as a hotbed for
broadband. The company has already wired more than 68 million square feet of
commercial office space in the city. Some of its most recent deals include
wiring the Empire State Building, the Daily News Building and the Woolworth
Building.
Related Story:
Broadband
On The Miracle Mile, BroadbandWeek Direct, 8/9/00
Broadband Briefs:
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Akamai Technologies Inc. inks
a deal with IBM as a streaming media services
supplier. IBM will offer Akamai's FreeFlow Streaming service to its Web hosting
customers worldwide.
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Texas Instruments Inc. adds Jungo
Software Technologies Inc.'s Linux residential gateway software into its
cable modems. The deal enables TI to offer a Bluetooth-enabled modem.
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Vertek Corp. launches
Synchronoss Technologies Inc., an independent business service provider offering
hosted operations support systems. The new company will target broadband service
providers, ISPs and incumbent and competitive LECs.
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Symmorphix Inc. secures
$25 million in financing to continue development and manufacture of its
next-generation Amplifying Planar Integrated Components for all-optical
networks.
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AT&T Broadband
and ReplayTV will launch a digital video
recorders and personal television trial to select AT&T Broadband's Digital
Cable customers in Boston and Denver later this month.
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Verizon Communications
invests $50,000 in the Buffalo Niagara Enterprise to attract businesses to the
Western New York region. Last year, Verizon spent more than $100 million
upgrading its fiber optic network in the area, and expects to spend as much this
year.
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Broadband solutions provider SwitchPoint
Networks Inc. lands $20 million in second round financing. The company's
Ethernet-based technology enables users to send and receive data simultaneously
at equal speeds.
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Digital Island will
stream the premiere of the Backstreet Boys' new CD "Black and Blue"
during a live Webcast
on November 19.
Next Week In Broadband
- Conferences:
Nov. 21-22: 5th Lafferty Internet Financial Services Summit -- Killer Applications In e-Finance, Millennium Gloucester Hotel, London.
U.K.; www.lafferty.co.uk/conferenes/5th-internet/index.html
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IPOs:
Week of Nov. 20: Alliance Fiber Optic
Products Inc. (AFOP). IPO managed by Merrill Lynch & Co., 4.5
million shares being offered at $11-$13 a share.
Week of Nov. 20: Telekom Austria
AG (TKA). IPO managed by Merrill Lynch & Co., 70 million shares
being offered at $15.12-$20.16 a share.
- Upcoming Broadband Events:
Nov. 28- Dec. 1: Western Show 2000, Los Angeles Convention
Center, Los Angeles, Calif.; www.calcable.org/westernshow
Dec. 4-7: The DSL Summit, La Quinta Resort & Club, Palm Springs,
Calif.; www.IT-TelecomSolutions.com
Dec. 12-14: Streaming Media West 2000, San Jose Convention Center,
San Jose, Calif.; www.streamingmedia.com
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