MFN Future Brightens
Metromedia Fiber Network, which had until Aug. 15 to line up a new round of financing, has hammered out a conditional agreement with lenders, including Citigroup, for $150 million. The metro carrier now has about $330 million in funding commitments. Analysts say they expect MFN to next announce a restructuring that will allow it to focus on major markets and put off construction of new networks in smaller cities.
Cisco by a Nose
DellOro Group says Cisco Systems surpassed Juniper Networks in the sale of high-speed Internet traffic routers. Cisco sold $322.7 million worth of routers in the second quarter, capturing about 60.3 percent of the market. Juniper had 34.7 percent of the market, Avici Systems had 4 percent and Lucent Technologies accounted for 0.2 percent. Total router spending for the quarter dropped 29 percent, from $753.1 million in the first quarter to $535.4 million, as big customers such as WorldCom and Qwest Communications International slowed network upgrades.
SBC Wants LD
SBC Communications says it has met the criteria set by the Telecommunications Act of 1996 and should be allowed to sell long-distance in Missouri and Arkansas. This is SBCs second try in Missouri, where regulators found flaws in the system that other companies use to interact with SBCs networks. The Federal Communications Commission has 90 days to rule on this application.
Fujitsus sweeping restructuring includes 16,400 job cuts, mostly in the Philippines, Thailand and Vietnam, though the company says it has no immediate plans to dump any of its business lines. Fujitsu makes computers, semiconductors and telecom gear, and has been hit hard by the U.S. high-tech skid.