[SBC]
<<<SBC said the decision to curtail its video operations was linked to the merger with Pacific Telesis and followed careful post-merger analysis of several options, including partnerships with video providers. "We've concluded that, at this time, we will continue to concentrate on growing and investing in our core businesses - high quality, advanced wireline and wireless telecommunications networks," Whitacre said. "Our merger with Pacific Telesis reinforces this emphasis on meeting growing demand for our core products and services throughout our markets."
SBC will discontinue its broadband network video trial in Richardson, Texas. In addition, SBC has substantially scaled back its involvement in the Tele-TV joint venture and is working with Americast to define the appropriate ongoing role for SBC within the Americast venture.
In a separate decision, SBC said it is halting construction of the hybrid fiber-coaxial network in San Jose and San Diego, reflecting SBC's determination that other network architectures would be more technologically, operationally and financially viable.
Curtailment of these initiatives will reduce net income in the second quarter by approximately $500 million.
. . . .>>>
John --
It's interesting they're cutting back on HFC cable VOD trials, which is exactly what BA announced about 6-9 months ago. Of course the PacBell guy working at the end of my street told me this at least that long ago. What was it Peter Lynch said, "Talk to the clerks at the mall. . . look around your grocery store. . . query the telephone repairman????" Well, I added the last. :)
This will be good for ADSL, not so sure what it does for VDSL, weren't we counting on FTTC eventually?
This bodes well: >>>"We've concluded that, at this time, we will continue to concentrate on growing and investing in our core businesses - high quality, advanced wireline and wireless telecommunications networks," Whitacre said. >>>
Cheers!
Pat |
