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| Current Topic: Telecom Industry |
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WorldCom Bankruptcy Filing Set for Next Week |
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| Topic: Telecom Industry |
6:52 am EDT, Jul 19, 2002 |
WorldCom is planning to file for bankruptcy protection from its creditors by early next week, people briefed on the matter said last night. The bankruptcy filing would be yet another stage in the disintegration of WorldCom, the nation's second-largest long-distance carrier and operator of the largest Internet data network. The filing could come as early as Sunday but may be delayed by a day or two ... Another one down; only twenty or so more to go. Are you and your portfolio getting tired of this yet? Ask me about Warren Buffett's investment in Level 3. WorldCom Bankruptcy Filing Set for Next Week |
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AT&T Says Its President Will Take Over Top Spot |
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| Topic: Telecom Industry |
6:42 am EDT, Jul 18, 2002 |
AT&T announced yesterday that David W. Dorman, its president, would succeed C. Michael Armstrong as chairman and chief executive beginning next year. Mr. Armstrong is expected to become chairman of the new AT&T-Comcast cable combination when that deal is completed by the end of this year. Dorman: "There's no road map out there with the answers to this period of turmoil in the industry. One of my highest priorities will be engaging the hearts and minds of our employees in our effort to utilize our brand and serve our customers." Everyone's doing the C-E-O shuffle! Come on, join in! AT&T Says Its President Will Take Over Top Spot |
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Deutsche Telekom Chief Resigns |
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| Topic: Telecom Industry |
7:23 am EDT, Jul 17, 2002 |
Yielding to intense political pressure and a stubbornly depressed stock price, the chief executive of Deutsche Telekom, Ron Sommer, resigned today as the head of a company he had sought to transform from a state monopoly into a global communications colossus. DT employees: "Without Sommer, things look dim." Deutsche Telekom Chief Resigns |
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US Telecom Earnings to Suffer from Weak Demand |
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| Topic: Telecom Industry |
6:32 am EDT, Jul 16, 2002 |
The major US telecoms will post dismal Q2 results that reflect the scant demand and falling prices that have plagued the industry for months, souring share values and forcing several companies into bankruptcy. Analyst: "There's a continued downturn in the telecom industry with no sign of recovery. [Until business spending recovers] the telecom sector is not going to recover. It's not going to be an upbeat quarter." Another: "I don't think we'll see much, if any, recovery." Sprint is expected to post a 7% drop in revenues. Sprint PCS will cut its growth target for the year. Wireless operations at Verizon, SBC, and BellSouth will also suffer. SBC and Verizon will continue to cut capex. Meanwhile, IBM and Intel are pushing them to increase capex for an 802.11 infrastructure. Are they attempting to simultaneously reduce and increase capex? US Telecom Earnings to Suffer from Weak Demand |
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Regulation Pushes Telecom Funds Further Into Storm |
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| Topic: Telecom Industry |
12:17 pm EDT, Jul 14, 2002 |
Telecom stocks are so battered that mutual funds set up to invest in them might want to flee the sector to cut their losses. Instead, new rules are making them wander deeper into the quagmire. Fund manager: "It's not fun." Another manager: "You don't want to put all your eggs in one basket, because baskets can get broken -- and this basket is broken." The sharp downturn likely will mean the death knell for more telecom players. Sucks to be a fund manager tied to a sector in collapse ... Regulation Pushes Telecom Funds Further Into Storm |
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Sommer sales: VoiceStream likely candidate |
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| Topic: Telecom Industry |
2:20 pm EDT, Jul 13, 2002 |
Ron Sommer wants to keep his job as chief executive officer of Deutsche Telekom so badly that he is willing to abandon his American dream and consider merging or even possibly selling DT's US subsidiary, VoiceStream. A deal involving VoiceStream is certain to trigger consolidation in the crowded US wireless market. ... Experts agree that the US wireless industry is ripe for mergers and acquisitions as it grapples with slowing growth, a price war and an abundance of national and regional players. Another vision of the perfect transatlantic enterprise is about to go up in smoke; once again, the CEO will pay with his job, and shareholders will pay with their pensions. Sommer sales: VoiceStream likely candidate |
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Chief Resists Ouster Pressure at German Telephone Giant |
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| Topic: Telecom Industry |
2:10 pm EDT, Jul 13, 2002 |
The chief executive of Deutsche Telekom, Ron Sommer, stepped up his resistance to efforts to oust him today, even as speculation grew about potential successors. Mr. Sommer's future is expected to be decided on Tuesday at a meeting here of the company's 20-member supervisory board. In a letter published as a full-page advertisement in German newspapers today, Deutsche Telekom said that any change in its strategy "would not be in the interest of the shareholders, customers, Germany as a business location and certainly not in the interest of our employees." "Those who don't invest in the future won't have one," the advertisement said. Shares of DT, which suffers with $62B of debt, have fallen 90% since March 2000. Europe's largest telecom company is on the brink. Do you still have any shares in DT? Does your mobile phone rely on VoiceStream wireless service? Are you a KPNQwest customer who recently jumped to DT, hoping for reliable service? Are you a GSM component supplier whose business model was based on DT's sales volume? Are you the German government, saddled with 43% of DT? Chief Resists Ouster Pressure at German Telephone Giant |
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