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Today's report from Web Editor
Susan Rush
• Time Warner Inks EarthLink Deal
• NorthPoint's Stock Drops
• Jupiter Delays IPO
• Help Leon Solve A "Fashion Emergency"
• Broadband Briefs
Time Warner Inks EarthLink Deal It
looks like America Online's purchase of Time
Warner could finally get the green light from federal regulators, thanks
to an open access deal with EarthLink
announced this morning. The No. 2 U.S. ISP will offer its high-speed Web
services over Time Warner's cable lines.
AOL and TW have extended the Federal
Trade Commission's review period of their merger for another two weeks
to give regulators time to consider the deal with EarthLink. Earlier this
month, the FTC postponed its vote to approve or block the $129 billion
merger, seeking additional open access concessions. AOL-TW responded in turn
last week by stepping up talks with rival ISPs like EarthLink and Juno
Online. Today's deal, "demonstrates our commitment to offer Time Warner
Cable customers multiple choices in broadband ISPs," says Glenn Britt,
president of Time Warner Cable.
Under the terms of the agreement, EarthLink's suite of
high-speed Internet access, content, applications and functionality --
including video streaming -- will be made available to the approximately 20
million homes passed by Time Warner Cable's broadband-capable cable
networks, according to the companies. EarthLink expects to begin offering
its broadband services over TWC's cable lines in the second half of 2001 --
the deal is contingent upon AOL's completed acquisition of Time Warner.
EarthLink's stock got a much-needed boost on Wall Street
following the announcement, jumping nearly 16 percent to $8.25. AOL and Time
Warner did not fare so well, however, with both companies' stock price
falling during early morning trading. AOL fell 3.3 percent to $47.91 and
Time Warner dropped 2.2 percent to $71.36. Continued delays of the
pending merger have investors growing a bit restless.
Related Stories:
AOL-TW
Are Talkin' ISP Deals, BroadbandWeek Direct, 11/15/00
AOL-TW:
Access Remains An Issue At FTC, BroadbandWeek Direct, 10/16/00
NorthPoint's Stock Drops
Problems with customers who can't pay their
bills has forced NorthPoint
Communications to reduce its third quarter revenue to $24 million, down
from the $30 million reported last month. The DSL service provider's stock
is taking it on the chin today, sinking 12.1 percent to $3.63 as of 10:57
a.m. EST. Today's drop pushes the company's stock below its 52-week
low of $4.00 -- Sands Brothers & Co.
Ltd. downgraded NorthPoint's stock to a Neutral.
NorthPoint also widened its EBITDA loss to $90.9
million, compared to the $79.2 million previously reported.
In August, NorthPoint and Verizon
Communications announced plans to wed their DSL businesses. The marriage
will give birth to a "new" NorthPoint that will not only serve
existing NorthPoint customers, but Verizon's as well, creating a network of
more than 600,000 DSL lines. "These recent events confirm the validity
of our decision to find a strategic partner like Verizon with a vigorous
customer channel," says Liz Fetter, NorthPoint's president and CEO. The
deal is expected to close during the first half of 2001.
Related Stories:
NorthPoint
Secures Verizon Financing, BroadbandWeek Direct, 9/6/00
NorthPoint
Reborn, BroadbandWeek Direct, 8/8/00
Jupiter Delays IPO
Weak market conditions prompts Jupiter
Telecommunications Co. Ltd. to postpone its initial public offering. The
Japanese cable television company announced plans earlier this month to sell
up to 787,000 new shares to help beef up the capacity of its cable networks.
Jupiter, which is controlled by AT&T Corp.,
hopes to become a leading provider of broadband Internet
services.
"We expect to proceed with the initial
public offering when the board determines that the market conditions have
sufficiently improved," said the company in a written statement. If and
when the IPO is completed, the shares are expected to be traded on the U.S.
Nasdaq stock market and the Tokyo Stock Exchange's Mothers market.
Related Story:
Japan
Mulls Internet For Everyone, BroadbandWeek Direct, 11/2/00
Help Leon Solve A "Fashion
Emergency" E!
Entertainment Television's "Fashion Emergency" program goes
interactive. Using Mixed Signals
Technologies interactive TV solution, "Fashion Emergency"
viewers will be able to express their opinions about each makeover as
fashion critic Leon Hall leads participants through their fashion
transformation.
Useful fashion tips, salons and bios of the show's hosts and
guests will be available to ITV viewers. The show is available on both AOL
TV and WebTV platforms.
Related Stories:
Film
At Your Fingertips, BroadbandWeek Direct, 10/00
Lucent
Streams Entertainment To Cell Phones, BroadbandWeek Direct, 9/8/00
Broadband Briefs:
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WebNet Inc. signs an agreement
with BIFS Technologies Corp. to market its
SWOMI high-speed wireless network to hotels, residential condominiums and office
complexes in the Gulf Coast area of Florida.
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EMS Technologies forms the
Terrestrial Broadband Group to provide antenna products and engineering support
for the fixed wireless market.
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SpectrumDSL selects DefendNet
Solutions Inc. to provide Internet security solutions to its DSL customers.
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REON Broadband inks a
series of agreements with property owners to deliver its broadband services to
100 multi-tenant properties throughout Massachusetts, New Hampshire and Rhode
Island.
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HarvardNet expands its
hosting services to include managed firewall services; load balancing for
bandwidth and Web traffic management; and managed storage services.
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PBS names RespondTV
as its preferred enhanced TV provider. RespondTV also joins the PBS Technology
Alliance Partner Program.
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Telstra CEO Ziggy Switkowski
predicts the Australian telecommunications carrier will bring in revenue of $518
million a year from ADSL services.
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The next best thing to being there: PacketVideo
Corp. will use its streaming media technology to enable a father to watch
his daughter's first Thanksgiving Day play on his wireless device, from 3,000
miles away.
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