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ARE YOU READY FOR THE NEXT UPTURN IN THE TELECOMMUNICATIONS MARKET?
Telecom Education and Career Week
October 22-23, 2001
Best Western Royal Plaza Hotel
Marlborough, MA
Famous educator on Semiconductor Laser Diodes to present two tutorials at Telecom Education Week. Dr. Kurt Linden will present tutorials on "Fixed & Tunable Laser Diodes" and "Lasers for Optical Pumps". Dr. Linden is Director of Operations at Axcel Photonics and in addition to his full-time industrial involvement, Kurt is a senior Lecturer with the Northeastern University Microelectronics/Computer Technology Program.
Telecom Education Week, organized by Information Gatekeepers, in cooperation with the IEEE Boston Chapter, will consist of a number of tutorials (half day) and one and two-day short courses focusing on fiber optics and optical networks ranging from basic to advanced topics.
Visit www.telecomedweek.com to learn more information regarding these tutorials and short courses offered at Telecom Ed Week.
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TODAY IN TELECOM - SEPTEMBER 25, 2001
TOP STORIES
--Exodus Communications in preparation to file Chapter 11
--FCC expands wireless access to airwaves in range of 2500 megahertz to 2690 megahertz
--JDS Uniphase first quarter sales will be $325 million, sees early signs of stabilization
ASIA PACIFIC
--Alcatel wins contracts worth $70 million to expand two GSM networks in China
--Kyocera invests $10.4 million for 70% stake in a venture to make cell phones in China
BUSINESS & REGULATORY
--Oracle and British Telecommunications join to rent out software throughout Europe
--Sonera sells 11.5 million Telekom DT shares for $169.6 million to pay off its debt
FINANCIAL REPORTS
--Germany's Adva won't meet its goal for the third quarter and cuts 10% of its workforce
MERGERS & ACQUISITIONS
--Verisign buys Illuminet for $1.2 billion in shares
--SBC offers to pay $384 million to take over Prodigy
PEOPLE IN THE NEWS
--Charter Communications' CEO, Jerald Kent, resigns
WIRELESS
--Russia's Mobile TeleSystems wins Belarus GSM license
--BT could take $728 million charge to close Concert
INDIA
--Microsoft Launches Mobile Information Server
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TOP STORIES
--Exodus Communications in preparation to file Chapter 11
Exodus is preparing to file Chapter 11 and they may file as soon as they can. The company considered debtor-in-possession financing and other arrangements and in talks with other companies, including General Electric, EDS and Deutsche Bank.
An Exodus spokeswoman declined to comment on whether the company will file in bankruptcy court.
--FCC expands wireless access to airwaves in range of 2500 megahertz to 2690 megahertz
FCC said it will expand access to airwaves ranging from 2500 megahertz to 2690 megahertz, allowing them to be used for 3G services. That range is currently used for fixed wireless services such as satellie Internet service. The commission will not take away wireless spectrum used by schools, health-care operations and some companies.
--JDS Uniphase first quarter sales will be $325 million, sees early signs of stabilization
JDS, maker of fiber-optic parts, reported that there are signs of its industry's sales decline may be stabilizing. The company also lowered its financial targets for the seventh time this year.
The company said sales in the first quarter would be $325 million, less than half the $786.5 million it reported last year and below the $357.4 million average estimate of analysts polled by Thomson Financial/First Call.
On a separate note, JDS earlier this year had posted the largest annual loss in corporate history. The company has trimmed its workforce to 14,000 employees from 29, 000.
ASIA PACIFIC
--Alcatel wins contracts worth $70 million to expand two GSM networks in China
Alcatel announced that it won $70 million worth of contracts to expand two GSM networks in China. Alcatel will supply, install and commission telecommunications equipment for two China mobile units, Shanghai Mobile and Jilin Mobile.
The Shanghai project is to be completed by the end of this year and the GSM network there would reach nine million subscribers, five million of which will be supported by Alcatel's system. Alcatel will also extend its network in Jilin, to cover seven major cities in the northeastern province.
--Kyocera invests $10.4 million for 70% stake in a venture to make cell phones in China
Kyocera invested $10.4 million for a 70% stake in a venture with China Zhenhua Science and Technology Company to make cell phones in China.
China Zhenhua said that the venture plans to use Qualcomm's CDMA technology to make the cell phones.
BUSINESS & REGULATORY
--Oracle and British Telecommunications join to rent out software throughout Europe
Oracle and British Telecom will join forces to rent out Oracle software to corporate customers throughout Europe. Oracle will provide and manage the software, and Ignite, BT's data and Internet unit, will host the software and deliver it to enterprise employees.
The companies expect to have the first customers before Christmas. Oracle has 125 customers for its software rental service in the US. No financial details were given.
--Sonera sells 11.5 million Telekom DT shares for $169.6 million to pay off its debt
Sonera announced that it sold 11.5 million shares in Deutsche Telekom for $169.6 million. The proceeds from the sale will help the company pay off debts linked to 3G licenses.
The sale comes less than a month after Sonera sold 21.9 million DT shares. The company said that it will report a loss of $70 million for the 33.4 million shares sold during the third quarter.
FINANCIAL REPORTS
--Germany's Adva won't meet its goal for the third quarter and cuts 10% of its workforce
Adva, an optical network group, reported that it will not meet its goal to break even in the third quarter and will cut 10 percent of its workforce in part to cut costs.
Adva said it will cut its forecast for the third quarter sales to between $19.2 million and $23 million from an earlier estimate of $25 million to $27 million.
MERGERS & ACQUISITIONS
--Verisign buys Illuminet for $1.2 billion in shares
Verisign, an Internet domain registrar and security services group, acquired Illuminet for $1.2 billion in shares. Iluminet is a provider of network services to telecom carriers.
The two companies said the deal will allow the companies to prepare for their linking of voice and Internet protocol networks.
--SBC offers to pay $384 million to take over Prodigy
SBC Communications offered to buy all Prodigy shares that it doesn't already own for $5.45 a share, totaling $548 million. The price is a 54% premium over the stock's closing price on Friday,.
SBC already holds a 42% stake in ISP, which has 3 million members.
PEOPLE IN THE NEWS
--Charter Communications' CEO, Jerald Kent, resigns
Cable TV provider, Charter Communications' CEO and co-founder, Jerald Kent, has resigned. The departure comes less than a month after Jerald Kent reported that the company would add fewer customers in 2001 than forecast as consumer spending decreases in the US.
The reasons for Kent's departure was not made clear, but three possibilities were given by analysts. One, personal clashes between Kent and Paul Allen, Microsoft co-founder and owner of Charles. Second, disagreements as to whether Charter should consider acquiring or investing in AT&T's cable operator. Third, difference in views on the possible merge of Charter with RCN.
WIRELESS
--Russia's Mobile TeleSystems wins Belarus GSM license
Mobile TeleSytems (MTS) won Belarus' GSM license, according to a spokesman for Belarussian President Alexander Lukashenko.
There were five foreign companies including Russia's Alfa-Eko, Northwest GSM, Austria's Pisec GmbH and Saudi Oger of Saudi Arabia, that had bid for the GSM-standard mobile phone license. The winner will be officially announced on Tuesday.
--BT could take $728 million charge to close Concert
BT said it would face huge costs to close Concert, its venture with AT&T, and it expects to take $728 million charge this quarter to write down some investments. Philip Hampton, BT's finance director, said the company was unlikely to write off the entire value of its stake in Concert.
BT is in discussions with AT&T over whether they should close Concert, or to continue in a modified form.
INDIA
--Microsoft Launches Mobile Information Server
Microsoft Corporation has targeted service providers to promote its newly launched Mobile Information Server. The company plans to team-up with major cellular service providers operating in metro cities for installation of the carrier edition of its mobile server at usage based charges. The enterprise edition of Mobile Information Server creates a wireless interface of corporate information system allowing the employees to communicate with the company's information systems through their wireless devices such as mobile phones and hand-held devices.
However, the carrier edition enables secured transmission of data to and from these wireless devices using service providers' infrastructure. "We are talking to a few major cellular service operators in the country to enter into a partnership under which they will deploy Microsoft mobile information servers and will be charged per use," said Microsoft India marketing manager Pankaj Ukey.