Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (2354)	9/11/2000 8:57:05 PM
From: shotski1	Read Replies (2) \| Respond to of 3891

One.Tel revs up ADSL game plan By Michael Sainsbury, iTnews Monday, September 11, 2000 One.Tel is expected to ink a contract with the DSL equipment maker Alcatel as early as next week as it steps up its data services business. The move by the low price operator into high speed Internet follows the company's recent introduction of its own so-called next generation mobile network which is now operational in all mainland capital cities. Built by Lucent Technologies, joint CEO Brad Keeling said the network had been ready for service six months ahead of plan. The Alcatel ADSL network will be aimed at the consumer market and the company is looking like the first serious competitor to Telstra in that market. One.Tel will use Telstra's unbundled local loop (ULL) raw copper. Keeling said the rollout will be financed by a combination of cash and vendor finance. One.Tel is currently installing a test network at the Newtown, Sydney exchange and has access to 139 exchanges. Keeling said the carrier is aiming for its first commercial ADSL customers by November. The company has already trialed the always-on high speed mobile technology, GPRS, on its network which puts it neck and neck with Telstra and CWO in the technology rollout stakes. Keeling forecast revenues of $55 million in 2001 from its GSM network, with customers over 200,000. Meanwhile, the junior telco confirmed its forecast loss of $297 million on revenues of $653 million. The company pointed at an operating cost abnormal - largely due to a change in accounting policy regarding deferred expenditure – that joint CEO Brad Keeling said had a negative effect of $133 million on the company’s EBITDA. One.Tel earned revenues of $243 million from its operations in Europe (mainly the UK) and Hong Kong and Keeling said this will grow to $520 million next year. Keeling forecast losses for at least the next two years after tax of $195 million on revenues of $1.1billion in 2001 and a loss of $100 million in 2002. Keeling said the company’s existing businesses were trending to be EBITDA positive by June next year One.Tel’s till supports joint CEOs Keeling and Jodee Rich as the two highest paid telco (and possibly public company) executives in the country. The pair each pulled in $7.4 million last year (over 90 percent of this is in bonuses). Keeling dismissed market rumours of a cooling in the ardor of its chief dance partners News Limited and the Packer group. "They are long term shareholders, " he said. Keeling also dismissed talk of a takeover. “That would only happen if Jodee and I wanted to sell.” Cable & Wireless Optus, for which One.Tel is the number one reseller, will start to feel the effect of One.Tel having its own network over the next 12 months. "Our reseller business is still growing right now but we expect to see negative growth going forward," Keeling said.