* Also: Qwest acquires OnFiber Communications; and BellSouth demands that USA Today retract NSA spy story
Nortel updated press and analysts on its turnaround effort, which includes a strategic initiative to focus on Metro Ethernet and video applications as well as a first quarter, 2006, loss on revenue flat to down from last year. Nortel’s Metro Ethernet effort will be headed by Philippe Morin, formerly general manager of the company’s Optical division. Metro Ethernet joins IMS, IPTV and WiMax as a strategic focal point for Nortel’s turnaround after restating years of financial results following an accounting scandal in 2004.
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Qwest said it will acquire privately held OnFiber Communications, a provider of managed metropolitan Ethernet and wide-area network services for $107 million. OnFiber specializes in high-bandwidth fiber services serving primarily large businesses and government institutions. The company operates an optical network in 23 metropolitan areas offering access and transport services, including Ethernet, SONET and wavelength. Qwest said OnFiber will enhance its out-of-region coverage and reduce its third-party access costs. Qwest currently provides similar optical services to metropolitan areas within its 14-state operating region.
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BellSouth is demanding that USA Today retract a story claiming it and two other carriers were under contract to the National Security Agency to surrender call records for a domestic anti-terrorism surveillance program. BellSouth claims the story’s assertion that it was under contract to provide massive call record data to the NSA is untrue. BellSouth sent a letter to the president and publisher of USA Today, and the general counsel of Gannett Co., USA Today’s parent, insisting on a retraction. USA Today said it received the BellSouth letter and is reviewing it. The paper said it will respond.
