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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
If you or your company wants to be ahead of the pack in this ever changing industry, then don't miss out on Telecom Education and Career Week.
Photonics expert, Ian Clark, to give tutorial on "Optical Amplifiers" at Telecom Education Week. Previously a Senior research fellow at the University of Sydney, in his career Mr. Clark has invented current fiber optic sensor technology, developed a new type of optical fiber, contributed to various PMD and polarization artifacts at NIST, and developed Galileo's 1310 nm amplifier product line. Ian currently develops new S-band amplifier products for IPG Photonics.
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 or call (617) 232-3111 to learn more information regarding these tutorials and short courses offered at Telecom Ed Week.
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TODAY IN TELECOM
OCTOBER 3, 2001
TOP STORIES
--Nortel Networks to cut 20,000 employees, warns of $3.6 billion loss in third quarter
--BellSouth seeks permission for long-distance services in two states
ASIA PACIFIC
--Japan's TEPCO to launch broadband Internet service
BUSINESS
--Carrier1 cuts 35% of its workforce
--Pause Technology sues Tivo over patent infringement
FINANCIAL REPORTS
--Openwave Systems warns first quarter loss
--Chip sales worldwide drop 42% to $10.5 billion
INTERNET
--Jupiter Media Matrix cuts 30% of its workforce
--Monster.com cuts 10% of its workforce
--Celox Networks to lay off 65 of its 285 employees
INDIA
--Bharti to Roll-out VSAT-based Net Services soon
--VSNL to cut 400 Jobs
CONFERENCE REPORTS
News from ECOC 2001:
--European Fiber Optics Industry Appears Less Affected by Present Downturn than US
News from Assembly Technology Expo (ATExpo):
--FiberOptic Automation Expo Premiers at ATExpo
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TOP STORIES
--Nortel Networks to cut 20,000 employees, warns of $3.6 billion loss in third quarter
Nortel will cut 20,000 employees, bringing the total number of employees to 45,000 from the 95,000 employees the company had at the beginning of the year. The company said it is still adjusting to the slowdown in demand for technology, but the business is stabilizing. The company warned that it expects to post a $3.6 billion loss in the third quarter.
Separately, the company's CFO, Frank A. Dunn will succeed John A. Roth as president and CEO starting in November, with Roth serving as vice chairman of the board. The company has also reported that it sold the Clarify customer relations management unit to Amdocs for $200 million, which it had paid $3.8 billion in stock for last year.
--BellSouth seeks permission for long-distance services in two states
BellSouth is seeking permission from the FCC to offer long-distance voice and data services in Georgia and Louisiana, states within its nine-state home territory. If the FCC approves, BellSouth would be able to sell long-distance services within its region for the first time since it split from Ma Bell. This approval can give BellSouth an opportunity to gain entry in the seven other states it serves.
Louisiana and Georgia sate regulators have endorsed the BellSouth bids. The FCC will have 90 days to make a decision.
ASIA PACIFIC
--Japan's TEPCO to launch broadband Internet service
Tokyo Electric Power Company (TEPCO) said that next year it will launch a broadband Internet service using its fiber-optic network in Tokyo next year. Before it expands to other cities in the surrounding area, TEPCO plans a $539 million investment over the next five years to build up the network in the capital.
TEPCO aims to make use of its fiber-optic network in the Kanto region. The company said it will set up a new company with entertainment company Yoshimoto Kogyo, to offer broadband content for the high-capacity network.
BUSINESS
--Carrier1 cuts 35% of its workforce
European wholesale operator Carrier1 said it will cut its staff by 35%, leaving about 200 employees. The decision was one of the first made by new CEO Mike McTighe, who just started work this week. McTighe is looking to make the company as profitable as possible by cutting costs and taking a careful look at products and services.
--Pause Technology sues Tivo over patent infringement
Pause Technology filed a patent infringement suit against Tivo, the market leader in consumer sales of personal video recorders. The patent, which was issued in 1995 and reaffirmed in 2000, covers technology that allows viewers to pause live TV, and fast forward and replay programs while they're being recorded. Tivo says that it did not infringe up on Pause's patent. Motorola is the only company that will license Pause's patent for its future line of personal video recorders.
FINANCIAL REPORTS
--Openwave Systems warns first quarter loss
Openwave, a wireless Internet software company, warns it will post a loss in the first quarter, not the profit that Wall Street expected. The company said it expects revenue of $115 million to $120 million and a loss of 1 to 4 cents a share for the quarter that ended in September. The expected revenue do not include the merger and acquisition-related charges and stock-based compensation.
--Chip sales worldwide drop 42% to $10.5 billion
The Semiconductor Industry Association said the chip sales worldwide has dropped 42% in August, down to $10.49 billion from $18.08 billion last year. The company's president, George Scalise, said the drop reflects the lack of activity in the world's major economies, and the excess inventories in the information technology market.
INTERNET
--Jupiter Media Matrix cuts 30% of its workforce
Jupiter Media Matrix will cut 30% of its workforce or 195 employees, and restructure its management team in response to challenging market conditions. The cuts come two months after Robert Becker joined the company as chief executive.
In the second quarter, Jupiter posted a $48.2 million loss on revenue of $25.2 million.
--Monster.com cuts 10% of its workforce
Monster.com laid off 125 employees, about 10% of its US workforce, in response to the slowing economy. The company's spokesperson said that the cuts were ordered by Monster.com's parent company, TMP Worldwide. Monster also needed to reduce overlapping positions following several buys.
--Celox Networks to lay off 65 of its 285 employees
Celox Networks, an Internet switch maker, said it will lay off 65 of its 285 employees, as it anticipates slowing of capital spendings by telephone and Net companies. The company expects to record its first sales this fall and see an increase in its cash flow, but not profitability, by 2002.
INDIA
--Bharti to Roll-out VSAT-based Net Services soon
Bharti Broadband Networks Ltd plans to roll-out broadband Internet services using VSATs by the month-end. Initially, the services will be targeted to corporate and small and medium enterprises (SME) and will subsequently be extended to the household subscribers. "These services, commercially being rolled out by the end of this month, are initially targeted at the corporations and SMEs," Ashok Juneja, chief executive of Bharti Broadband Networks Ltd, said.
The VSAT-based services are part of the three-tier broadband service network that Bharti Broadband Networks Ltd is planning in the country. The three-tier architecture includes broadband services like Internet, voice telephony and VSAT services across 300 cities.
--VSNL to cut 400 Jobs
Videsh Sanchar Nigam Ltd (VSNL) is targeting a 10-15 percent reduction in its manpower strength in a post monopoly scenario after March 2002. "We would like to reduce our manpower strength by at least 400 people. The ideal manpower strength for the company is around 2,500 people," said VSNL sources.
VSNL, which kicked off its first ever voluntary retirement scheme in September 1, 2001, with limited success, has extended the offer till October 31, 2001, with added medical benefits.
CONFERENCE REPORTS
News from ECOC 2001:
--European Fiber Optics Industry Appears Less Affected by Present Downturn than US
The general feeling pervading ECOC-2001 is one of bullishness with regard to the Fiber Optics market. ECOC exhibits and exhibitors seemed busy during the three day event ending today. Discussions with exhibitors and attendees seems to indicate the downturn will not be as deep as in the US. At the European's first financial meeting, "Liquid Europe" new start-ups were making their pitches to venture capitalists with the vitality seen in the US a year ago. Attendance at the conference, although hit by travel restrictions, will be higher than last year.
News from Assembly Technology Expo (ATExpo):
--FiberOptic Automation Expo Premiers at ATExpo
Forty fiber optics automation companies are among the 700 exhibitors at ATExpo 2001 currently taking place at the Stephens Convention Center in Rosemont, IL. Nearly all planned exhibitors were present despite the decline in the economy and business travel. It will be interesting to see if the 17,000 projected attendees materialize. After the first days of the exhibits, exhibitor's commented on the slower than usual traffic but were optimistic that attendance would pick up for the last two days of the event.