Fast Breaks Newsfront: July 2, 2001
SBC Communications Pacific Bell unit has refiled its application to offer long-distance service in the California market. Competitors said alternative carriers have managed to capture only 6 percent of the voice market in California, indicating that Pacific Bell has not opened its market to competitors as required under federal law. "It is still a monopoly market," a WorldCom spokeswoman said.
VA Linux Systems, which differentiated itself by building servers, said it will shed the hardware business that accounted for 60 percent to 70 percent of its revenue and cut 35 percent of its employees. The company will now focus on making and supporting open source software.
After trying to sell its 2-year-old Internet-only WingspanBank.com, Bank One said it will roll its WingspanBank customers into its online banking unit, BankOne.com.
High-tech layoffs continued to roll in: Adaptec cut 325 workers; Altera slashed its payroll 7 percent; Metricom slashed 23 percent of its staff; and Nokia will cut 1,000 of its network operations workers. JDS Uniphase said more job cuts are likely.
A pact between Symbian, maker of operating systems for mobile phones, and RealNetworks may mean that RealPlayer Mobile will be included in new Motorola, Panasonic, Siemens and Sony phones which might spark customers to pay for music delivered to their wireless phones.
360Networks filed for protection from creditors in Canada and the U.S., after missing a $10.9 million interest payment. The network builder, led by former Microsoft Chief Financial Officer Greg Maffei, said it still hopes to complete its North American fiber-optic network.