Faced with loss of $1.02 billion in first fiscal quarter ending Dec. 31, Lucent Technologies announced restructuring plan Wed. that called for reducing its cost structure by more than $2 billion, taking up to $1.6 billion in restructuring charges, cutting 10,000 employees through layoffs and attrition. “Our problems are fixable,” Lucent CEO Henry Schacht said. He called fiscal 2001 “a transition year, when we are rebuilding for the future.” Company also plans to eliminate some product lines and outsource more work to contract manufacturers. Lucent had profit of $1.08 billion in same quarter year ago.
WideOpenWest signed deal with DemandVideo to offer latter’s video-on-demand (VoD) service in markets where it’s building competitive cable systems. Using DemandVideo’s VoD technology and service, WideOpenWest said it would offer subscribers choice of recent Hollywood movies, classic films, children’s and family programming and instructional shows. Customers will have 24 hours of unlimited viewing of any title they select and will be able to pause, play, rewind, fast-forward or restart titles. Cable overbuilder announced deal Wed., day after concluding 3-year pact with Source Media to use latter’s interactive program guide and local programming service. WideOpenWest said it planned to start offering 2 services first in Denver area in March.
Qualcomm subsidiary SnapTrack received wireless location and asset-tracking patent from U.S. Patent & Trademark Office. Patent covers methods for remotely locating wireless device via client- server systems that use computer network or Web to initiate request on position of device. Device’s position is made known through data or graphic display, SnapTrack said.
Radarsat International and Canadian Space Agency said they agreed with Brazil’s National Institute for Space Research (INPE) to provide Radarsat-1 data to INPE for scientific research related to environmental monitoring, including estimating deforestation of Amazon River Basin.
Internet pioneer Vinton Cerf of WorldCom will keynote NAB convention in Las Vegas April 25, Assn. said. Speech will be on “The Future of Technology.”
FCC hasn’t decided how to react to “regulatory freeze” memo sent to agency by White House Chief of Staff Andrew Card Mon. (CD Jan 23 p1), although it does believe freeze is voluntary for independent agencies like FCC, Commission sources said. Industry sources said they couldn’t recall similar memos in past transitions. White House hadn’t returned our calls at our deadline.
PanAmSat began 6-month beta test of high-speed Net/36 network designed to deliver IP audio, video and data to ISPs with goal of starting commercial service by midyear. Beta test is using 1-2 transponders aboard PanAmSat Galaxy satellite, Qwest Communications DSL service in western U.S. and Excite@Home cable modem network on both coasts, CEO Douglas Kahn said Mon. at C.E. Unterberg, Towbin satellite conference in N.Y.C. Agreements with BellSouth and Hughes Network Systems’ DirecPC in addition to Qwest and Excite@Home give Net36 access to 3.5 million homes in U.S., although goal is to pass 16 million worldwide as service expands to 24 transponders by 2004, he said. PanAmSat will spend $250 million in developing service and draw heavily on fleet of 21 satellites to deliver it worldwide, Kahn said. Of 16 million homes, half will be in U.S., others in Europe and Asia, he said. Plan is to have Net/36 act as middleman in delivering programming content to edge of DSL and cable modem networks. PanAmSat has agreements with dozen programmers including ABC-TV, Walt Disney Co., Bloomberg TV and Hollywood.com, Kahn said. Despite start of beta test, PanAmSat still has several hurdles to clear, including digital rights management issues raised by content providers. “This concern has taken on a tremendous amount of significance for them and we'll have to address that,” Kahn said. Adoption of Net/36 platform among broadband service providers also has been slower than expected, he conceded. Number of homes that had access to Net/36 stood at “several hundred thousand” in late Nov. before additions were made in following month, he said. “We're going to invest a little bit less [in Net/36] this year because we expect the revenues are going to be a little bit slower,” Kahn said. Executive conceded that PanAmSat had been “frustrated” at pace of DSL deals, noting that even after reaching agreements, RBOCs “are not fast movers” in deploying technology. PanAmSat also is aggressively pursuing Ka-band spot beam satellite business and is likely to enter market with 2 birds, Kahn said. PanAmSat has received authorization for 7 Ka-band slots, with 5 others pending, he said. While PanAmSat had aimed to have some Ka-band agreements secured by late last year, Kahn said it was likely no deals would be signed by midyear. “Our objective is to be comfortable with what the spot beams are going to be used for,” he said. “It’s better to take a little bit more time to get it right.”
Boeing said it combined its Delta II, III and IV rocket programs into single operation, led by Dan Collins, vp of Delta IV program.
Alcatel spokesman wouldn’t comment Tues. on published reports that Turkey has cancelled $259 million contract with company in protest against French Parliament resolution last week accusing Turks of genocide in World War I. Contract was for company to built military intelligence satellite. Officials at Turkish consulate in Washington declined comment.
Wireless Communications Assn. annual technical symposium that ended Fri. in San Jose drew record attendance of 1,185, up from 235 year ago. Next technical symposium is set for June 24-27 in Boston.