Despite concerns of sales slowdown for wireless equipment, Nokia reported Tues. it had sold more than 128 million phones in 2000, level that it said beat overall market growth. It also reported preliminary estimates of 405 million wireless phone units sold in last year, short of 420 million forecast by rivals such as Ericsson. Still, Nokia said 405 million number marked 45% increase from 1999. In preliminary numbers released before financial results are reported Jan. 30, it also indicated that global wireless subscriber base reached 700 million by year-end, which Nokia said represented international penetration of 12%.
Excite@Home said it met its year-end subscriber target, closing 2000 with 2.95 million high-speed data customers worldwide, up from 2.31 million at close of 3rd quarter. Company said it grew more than 25% in 4th quarter, thanks partly to introduction of its QuickStart Kit self-installation in RadioShack stores in several major Comcast markets. Excite@Home said it plans to expand its retail presence by hundreds of stores this year, extending its QuickStart Kit program to AT&T and Cox territories as well. Separately, Excite@Home said it had withdrawn from its earlier deal to buy online games company Pogo.com for undisclosed price. Company, which didn’t give reason for pulling out of agreement, said it will retain its 10% stake in Pogo and continue to offer Pogo’s online games to subscribers.
Viasource Communications updated 4th-quarter revenue and earnings guidance Mon. It predicted total revenue for 4th quarter would be $54-$56 million, with adjusted earnings before interest, taxes, depreciation, amortization (EBITDA), special compensation charges, satellite and wireless revenue deferral in range of $1.7- $2.6 million, which will result in loss of 6-8 cents per share. Pres. Craig Russey said satellite and wireless business “transitioned during quarter as midpower conversions ended” and new high-powered “retail fulfillment installations reached record levels,” but DSL connectivity business has been “big disappointment.” Russey said company “experienced earnings pressure” from costs of rollout of nationwide fulfillment services for satellite and wireless sector along with major changes in DSL industry. Company plans to announce results for 4th quarter and fiscal year 2000 after close of market March 1.
Vodafone is acquiring 34.5% stake in Mexican wireless carrier Grupo Iusacell for $973.4 million in shares purchased from Peralta Group. Iusacell is 2nd largest wireless operator in Mexico with 1.5 million subscribers. Vodafone is joining Iusacell investor Verizon, which already has 37% stake in carrier. Vodafone and Verizon run largest U.S. wireless operator through Verizon Wireless venture. Vodafone Pres. Americas Asia William Keever said Iusacell transaction marked carrier’s entry into Latin American wireless market. “With only 2.2% company subscriber penetration in its 4 cellular regions, Iusacell represents an extraordinary growth opportunity for Vodafone,” he said. Vodafone is paying for Iusacell shares in cash in deal that is expected to close in this quarter.
Genuity’s 4th quarter orders were down 17% compared with 3rd quarter, which company attributed to “general economic slowdown.” Genuity said its orders were up 88% compared with 4th quarter year ago. Most of drop was in carrier and ISP orders.
As FCC readies long-anticipated inquiry into unifying carrier compensation methods, telecom industry appears less than united on how -- or even whether -- it should be done. FCC official said at news briefing Mon. that if Commission approved Notice of Inquiry proposed by Common Carrier Bureau, it would open proceeding that probably would take “several years.” Some industry representatives have urged agency to begin proceeding, saying it doesn’t make sense economically to have so many disparate intercarrier compensation methods. But others question value of rationalizing those different plans such as access charges, reciprocal compensation and various forms of wireless interconnection charges.
LAS VEGAS -- FCC Comr. Powell endorsed free market vs. govt. regulation, pleasing consumer electronics officials at the CES here Sat. But reaction was more muted when he also indicated reluctance for govt. to move aggressively to spur DTV transition. Powell, who is widely rumored to become next chmn. of FCC, was interviewed one-on-one by CEA Pres. Gary Shapiro, also rumored to be candidate for position in new Bush Administration, despite recently signing new 10-year contract with CEA.
Despite earlier public statements of support, Globalstar wants General Accounting Office (GAO) to overturn deal that awarded rival Iridium $72 million contract last month for satellite telephone service without open bidding (CD Dec 13 p7). Globalstar charged lack of open competition and bidding process violated Dept. of Defense (DoD) bidding procedures, which should invalidate deal. Globalstar filed complaint with GAO Dec. 15. U.S. Defense Information Systems Agency (DISA), which oversaw contract, disagreed with Globalstar and predicted deal would pass legal muster with federal auditors. Military officials have suggested all along that Iridium contract was signed in “best interests” of providing global communications to military and govt. Govt. also played significant part in convincing Motorola “it was in the best interests of national security” to keep Iridium satellites in orbit when company went bankrupt, official said. DISA, which responded to complaint by saying Globalstar lacked capacity to service contract, said it planned to respond to complaint by Jan. 16 deadline. Iridium spokesman said company had no comment. GAO scheduled hearing for March 26.
N.H. legislature will see several bills on electronic privacy in 2001 session. Prefiled draft bills, which have not yet been assigned numbers, include one by state Rep. Neal Kurk (R-Weare) to establish state Office of Privacy to ensure personal information collected by state agencies is used solely for purpose for which it was obtained. Kurk prefiled another bill to prohibit state agencies from posting personal identifying information about individuals on Internet. Another prefiled bill, with multiple sponsors, would require private entities that collect personal information about their customers, patients or clients to alert those individuals whenever such data were shared with 3rd parties. Still another is HB-115, which would prohibit telemarketers from using automatic dialing equipment to place calls that contain no message. Measure would address common nuisance of autodialers that keep placing calls even when there’s no sales representative available to speak. It would allow civil law suits for greater of $500 or actual damages.
NCube Corp. filed patent infringement suit against SeaChange International Mon., charging that latter’s video-on-demand (VoD) products violated one of nCube’s interactive TV patents. NCube said it was seeking permanent injunction against SeaChange’s shipping its allegedly infringing products. In earlier court battle on other patents, Del. jury ruled in SeaChange’s favor in Sept., but nCube is challenging that decision.