Plus: Lucent records first profitable year since 2000 and Sprint posted a $1.91 billion net loss in Q3.
FCC Chairman Michael Powell says that after the presidential election he will try to wrest regulatory control of VoIP from the states because to thrive as a business, the technology needs a single, easy-handed regulator. In his Fall VON 2004 keynote address last week, Powell said that bogging down young VoIP carriers in 51 separate regulatory commissions with different interpretations of how to tax, authorize and monitor the VoIP service providers – as well as their own ideas on how to shape competition with better established carriers – is a recipe for failure. He says that after the presidential election, but before the inauguration, he will formally propose that this authority be shifted to the FCC and away from state public utility commissions. (Read the story)
Lucent recorded its first profitable year since 2000 thanks to higher-than-expected fourth-quarter sales that received a boost from several large contracts, especially in its wireless segment. Lucent also saw increased demand for VoIP, high-speed data and broadband access in the quarter. The company said growth was driven by wireless service providers moving to 3G networks for mobile high-speed data services. In July, the company announced that Verizon Wireless agreed to spend $5 billion on a variety of Lucent networking equipment, software and services within six years. (Read the story)
Sprint posted a $1.91 billion net loss for the third quarter, due to a previously announced re-evaluation of its long-distance network assets. Sprint’s third quarter included a $3.5 billion impairment charge for its long-distance assets. The company also reported a $1.2 billion write-down of its Multichannel Multipoint Distribution Service (MMDS) spectrum. The company suspended deployment of its MMDS wireless cable broadband service in late 2001. The company decided to take the charge after analyzing long-distance business trends “that took into account current industry and competitive conditions, recent regulatory rulings, evolving technologies and the company’s strategy to expand its position as a leader in telecom solutions.” (Read the story)
