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Today's report from Web Editor
Susan Rush
• AT&T Broadband Suppliers Take It On The Chin
• Into Networks & Media Station Ink Multi-year Deals
• Pacific Broadband Is Born
• Broadband Briefs
AT&T Broadband Suppliers Take It On The Chin
The end of the year is all about balancing the budget, and AT&T Broadband plans to do just
that by cutting back on some of its late-year equipment orders. The company announced on Friday it has enough cable inventory to meet this year's demand. "We have enough inventory to meet our needs," says Steve Lang, an AT&T Broadband spokesman. "We want to make sure our capital spending and capital budgets line up." The news caused a ripple effect on Wall Street -- stock prices of several AT&T Broadband suppliers sank on Friday. As of this morning's trading, however, a few of the hardest-hit companies have started to regain a little ground.
As of this morning, C-COR.net has almost recouped its 19 percent stock drop from Friday, climbing 16.88 percent to $11.25. The company moved quickly to reassure investors that the suspension of equipment shipments to AT&T Broadband will not have a material effect on its financial results for the current quarter.
Shares of CommScope Inc. tumbled 24 percent on Friday, and have rebounded only slightly today, gaining 3.45 percent to $18.75 today during early morning trading. As a result of AT&T Broadband's move and a slower than expected quarter overall, the broadband coaxial cable manufacturer has reduced its sales and earnings growth guidance for next year to the "mid-teen range from the 20 percent previously given," says Frank Drendel, CommScope's chairman and CEO.
Antec Corp. issued an earnings warning for the
fourth-quarter after hearing the news, saying a delay from its largest customer will impact revenue. While the company's shares have gained a little ground this morning, increasing to $9.50, after dropping 21 percent on Friday, it's stock has consistently suffered this year -- it has fallen 76 percent overall.
AT&T Broadband's parent company AT&T Corp.'s stock price remained fairly constant today, trading at $19.44 as of 10:57 a.m. EST. AT&T Broadband says it remains on track meet a year-end goal of signing up 500,000 cable telephony subscribers.
Related Stories:
AT&T Plans Asset
Sale, BroadbandWeek Direct, 11/8/00
AT&T: Split Personalities; Earnings Drop
Off, BroadbandWeek Direct, 10/25/00
Into Networks & Media Station Ink Multi-year Deals
Excite@Home teams with
Into Networks Inc. and Media Station Inc. to expand its service offerings to broadband customers.
In a multi-year deal, Into Networks becomes a preferred provider of software-on-demand applications for the @Home Games, Education, Family and Horoscope channels. Using the IntoMedia software delivery platform, U.S. @Home subscribers will have high-speed access to games, education and business software from publishers like Interplay Entertainment Corp., Lotus and Sunburst Technology. The service is expected to launch this month, and will be available for $5.99 a month, per channel.
Excite@Home will also launch Media Station's SelectPlay on-demand family-oriented multimedia service to its U.S. customers. For $9.95 a month, subscribers will have on-demand access to sports and entertainment games, such as Cabella's Big Game Hunter III and Roller Coaster Tycoon. The service also offers learning titles and music content from LAUNCH Media Inc.
Related Story:
Excite@Home Sticks With Family Games, BroadbandWeek Direct, 8/31/00
Pacific Broadband Is Born
Pacific Broadband Communications opens its doors to tackle the "last mile." "By the end of the year, there will be more than 7.7 million online users with broadband technologies, says John Ryan, chief analyst at RHK Inc. That number is expected to grow to 33.5 million by 2003, according to the research firm. "RHK anticipates a 300-fold increase in bandwidth demand over the next five years, which will place significant challenges on the last mile," continues Ryan.
The newly formed company will focus its efforts on developing broadband solutions to enable service providers to deliver high-speed data, telephony and video services to more customers. PBC received $10 million in funding from networking company Raza Foundries to help it get off the ground. Tony Werner, president and CEO of Aurora Networks Inc. and Alex Best, Cox Communications' CTO and executive vice president, have both joined the board of directors.
Related Story:
Werner Lands In
Aurora, BroadbandWeek Direct, 11/15/00
Broadband Briefs:
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NetworkIP launches e.Cable, a broadband cable modem that enables cable operators to provide self-provisioned, high-speed Internet and data services to subscribers.
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Hargray Communications selects ADC's MediaMover system to transport digital video signals and deliver broadband voice and data services to its customers and other select small telephone companies.
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Optical Cable Corp. snags a $2.1 million order for 1 million feet of its fiber optic cable from an unnamed Internet hosting company.
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Terayon Communication Systems Inc.'s BE 2000 second-generation broadband access platform has been qualified to meet Euro-DOCSIS (Data Over Cable Service Interface Specification).
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Level 3 Communications Ltd. aligns with @Network to expand its bandwidth services to Internet and communications companies in Asia. The company plans to offer its services in Taipei, Taiwan and Seoul, Korea by the end of next year.
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Ericsson expects to begin selling its high-speed, third-generation mobile phones in Japan in the fall of 2001. The company also singed a $600 million contract with D2 to deliver, install and service a 3G network in Germany for the German wireless carrier.
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Kawasaki Steel Corp. and
SONICblue Inc. invest in ComSilica Inc. ComSilica will use the funding to further develop its broadband wireless technology.
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