Broadband Week Direct

Today's report from Web Editor Susan Rush

• Alcatel, Inktomi Slim Staff
• VOD Orders Help Concurrent Reaffirm Outlook
• Covad Jumps On The Self-Install Train
• TDD Coalition Promotes Broadband Wireless
• Pathnet Goes Chapter 11
• DSL Users Are Hooked
• Broadband Briefs

Alcatel, Inktomi Slim Staff

In tough economic times, companies closely monitor their bottom line, as is evidenced by the thousands of jobs that have been cut by telecom companies over the past several months. Alcatel and Inktomi now join the fray, and are trimming jobs.

The telecommunications equipment maker Alcatel says it must manage its cost structure lower in the face of the economic slowdown in the United States and reduced customer spending. Of the 1,100 positions being eliminated in the United States, 800 are full-time. The cuts represent less than 5 percent of the company's 130,000 worldwide workforce.

Alcatel is following in the footsteps of other equipment makers, including Nortel Networks' 15,000 job cuts and Lucent Technologies' 10,000 eliminated positions.

Alcatel shares dipped to a new 52-week low this afternoon, after falling $1.75, or 6 percent, to $27.25 as of 12:29 p.m. EST.

Inktomi announced plans to reduce its workforce by 25 percent after reporting second quarter results that are below its previous expectations. Revenue for the quarter is expected to be $36 million to $38 million, well below the company's earlier forecast of $65 million. The company also upped its pro forma loss predictions to between 23 cents and 25 cents a share, compared to a predicted 4 cents.

Following the news, Merrill Lynch & Co. downgraded its rating of the Internet infrastructure software company to neutral/accumulate. Inktomi shares nosedived 50 percent to trade at $3.06 as of 12:35 p.m. EST. The new 52-week low is almost $2 below the last trading low point during the period.

Related Stories:
DWDM: The Big Bang Of Optical Networking, 4/2/01
Alcatel Does A Billion Dollar 360, 11/1/00

VOD Orders Help Concurrent Reaffirm Outlook

There's nothing like new orders to help a company reaffirm its earnings projections. Concurrent Computer Corp. inks a volume purchase agreement with Comcast Cable Communications and reiterates its third quarter financial targets.

Comcast plans to buy 79 MediaHawk Broadband video-on-demand servers from Concurrent for eight system-wide VOD deployments. Although financial details of the deal were not disclosed, Concurrent president and CEO Jack Bryant says the orders enable the company to reaffirm its third quarter consolidated revenue targets of $20 million. Concurrent anticipates operating results to be about break-even in the quarter.

The MediaHawk Broadband VOD system includes the scalable MediaHawk Video Server and Broadband VOD BackOffice business management system. Comcast plans to use digital set-tops from Motorola Inc. and Scientific Atlanta for the service deployment.

Concurrent shares got a boost on Wall Street today, inching up 16 cents to $5.34 as of 12:37 p.m. EST.

Related Stories:
Concurrent Continues VOD March, 3/21/01
Concurrent, Rant Bring Back Office Delivery Tools To VOD, 3/5/01

Covad Jumps On Self-Install Train

Consumers are tired of waiting weeks or even months for DSL service. Struggling data CLEC Covad Communications is hoping to take some of the heat off itself by alleviating some of the DSL service backlog with the introduction of its own brand of DSL self-install kits.

The DSL JumpStart Kit is aimed at residential subscribers and includes a modem, software, filters for phones and a three-part instruction card. Covad claims the process will take about 30 minutes. The kits first will be available to new DSL customers of Speakeasy.net.

In February, SBC Communications announced plans to deploy BroadJump Inc.'s Virtual Truck Installer to reduce DSL service installation and costs. The move to beef up its self-install offerings supported SBC's earlier decision to trim down its DSL installation staff. Excite@Home also offers a self-install option.

The self-install kit enables service providers to sign up new customers at a more rapid pace, while reducing costs. But, some consumers are still overwhelmed by having to "operate" on their PCs to install their own high-speed Internet service. One anonymous DSL customer BroadbandWeek Direct spoke with said it took him more than 3 hours to install his DSL equipment from one unnamed provider, and he considers himself tech savvy.

Related Stories:
SBC Boosts Self-Install, 2/19/01
Covad Details A Tough Outlook for Q4 and 2001, 12/12/00

TDD Coalition Promotes Broadband Wireless

Broadband wireless service providers and equipment makers band together to promote Time Division Duplexing technology. The TDD Coalition touts the airlink technology as spectrally efficient and cost-efficient.

The coalition -- the latest in a series of vendor groups lobbying against each other over proposed fixed wireless broadband standards --supports the coexistence of TDD systems, which establishes a bi-directional communications link whereby one channel is used for both upstream and downstream traffic, with legacy technology. The group plans to actively participate in regulatory discussions involving spectrum allocation and management in emerging broadband markets.

Some of the founding partners of the group include ArrayComm, Harris, BeamReach, Adaptive Broadband, Raze Technologies, Radiant Networks, Aperto Networks and Clearwire Technologies. Coalition membership is open to all organizations that support its goals.

Related Stories:
Ultra-Broadband Wireless, 2/19/01
The Long Road To Wireless Standards, 12/00

Pathnet Goes Chapter 11

Times are tough, and sometimes companies need a buffer zone between them and their creditors. Pathnet Telecommunications Inc. is one such company, and has filed for Chapter 11 bankruptcy protection.

The convergent telecom provider -- which only last week was touting the launches of several new service markets -- filed for protection after realizing that it would be unable to make the upcoming April 16 deadline to pay the semi-annual interest payment on its 12 1/4 percent Senior Notes.

"The protection provided by Chapter 11 will conserve our cash and ensure that all creditors are treated fairly and equally," says Richard Jalkut, Pathnet's president and CEO. Pathnet says it is actively involved in discussions with a national telecommunications company to purchase either part or all of its business.

DSL Users Are Hooked

If the choice is between giving up coffee and DSL service, believe it or not 78 percent of those under age 39 would give up the java, a new report says.

Residential DSL users are spending an average of 25 hours per week online, compared to their dial-up brethren spending 7.5 hours, according to a new survey sponsored by DSL provider SBC Communications. Broadband Watch found that 96 percent of those surveyed consider high-speed Internet access an important household technology, more significant than the microwave, remote control or even cable TV.

The study reveals that broadband users are more apt to engage in online activities like downloading video and music, shopping and playing games. "Once you go DSL, you never go back," says DSL subscriber Robert Davis.

Related Stories:
Broadband Users Are Busy Beavers, 3/26/01
Have, Have-Not Future For Content Delivery, 2/19/01

Broadband Briefs:

BellSouth Corp. establishes support channels dedicated to DSL customers who lose their broadband access as a result of network shutdowns. The channels are designed to transition customers to BellSouth's FastAccess service.
House Democrat John Dingell and several other lawmakers reportedly are requesting the Federal Trade Commission investigate allegations that personal video recorder manufacture TiVo Inc. violates its own privacy policy. TiVo is adamant that it has not collected information from its viewers without their consent.
Qwest Communications International Inc. launches DSL service to business customers in the St. Louis area.
Kanakaris Wireless expands its service offering to include DSL and SuperBroadband connectivity to residential and business customers in the United States. The company plans to leverage the high-speed connections to deliver online movies in near DVD-quality.