Regional and competitive telephone company rollouts of broadcast TV and on-demand entertainment services will boost the video gateways sold to 4 million units in 2003. Cahners In-Stat Group estimates revenue from gateway sales will reach $6 billion by 2005, even though the per-unit cost is falling.
Liberty Media Chairman John Malone says the company might create a tracking stock for its international assets, and could sell some of the shares to upgrade systems for digital television. Once it closes on its purchase of systems owned by Deutsche Telekom, Liberty will own stakes in cable systems serving 25 million customers outside the U.S.
Corning has acquired 25 percent of Transvoc, a Russian factory that makes fiber-optic cable and accessories from TransTeleCom. TransTeleCom, set up by Russias Railways Ministry, is building a telecom network along railways.
Telecom entrepreneur Richard Branson is reportedly selling off parts of Virgin Group to fund his virtual mobile network business in the U.S. Terms are still being negotiated, but Sprint is the likely carrier for Virgin Mobile service here.
Nortel Networks CEO John Roth says demand for his companys gear hasnt hit bottom, adding it may be another year before spending resumes. Cisco Systems predicts the weak telecom and ISP market will last another 18 months. "We have a very challenging two to four quarters, possibly six, in the service provider space," Bill Nuti, Cisco senior vice president of service provider sales, said at the Salomon Smith Barney Tech 2001 Industry Conference.