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July 25, 2008 - AT&T earnings spike makes analysts rethink telecom

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July 25, 2008
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  Top Story 
  • AT&T earnings spike makes analysts rethink telecom
    After saying telecom stocks were overvalued, analysts are rethinking those opinions after seeing AT&T's second-quarter earnings report this week. Analysts and industry executives noted optimistically that while the sputtering economy had hurt AT&T and other carriers, the industry had remained relatively resilient and that shares already reflected most of the pessimism. BusinessWeek (7/24)
  Business & Industry Watch 
  • "Done" with Yahoo!, Microsoft turns up heat on Google
    Insisting that he was "done" pursuing Yahoo!, Microsoft CEO Steve Ballmer said Thursday that the company would earmark at least $2.5 billion a year to compete with Google for online advertising because the business is too big to turn away from. Ballmer defended Microsoft's sizable -- and so far unsuccessful -- investments in the search business, saying, "If you think you can be successful with patience, it's a relatively small investment." The Washington Post/Bloomberg (7/25) , Reuters (7/25)
  • Verizon asks TV customers for design advice
    Looking to avoid "me-too" TV products for a generation of viewers raised on interactive video, Verizon has started using a new group of people to help design products connected with its FiOS TV service: its customers. The company has started an initiative that enlists customers for beta testing, providing them with password-protected access to drawing-board products and even linking them to product engineers. Telephony Online (7/24)
  • Juniper records strong Q2 revenue, profit
    Juniper Networks outgoing CEO Scott Kriens said that the company had shipped more than 100 units of its new EX3200 and 4200 Ethernet switches, helping to fuel the firm's success in the second quarter of the year. Kriens reported that Juniper revenue rose 32%, to $879 million, and profit increased 40%, to $156.6 million. Network World (7/24)
  • Level 3 CEO bullish on enterprise services
    James Crowe, the CEO of Level 3, which just reported second-quarter revenue of $1.09 billion, said that he saw no slowing in the demand for enterprise services and that the company was beefing up its sales force to handle the traffic. "With respect to enterprise, we've seen no weakening of demand," he said. "Period." Telephony Online (7/24)
  • Other News
  Video Upload 
  • Verizon testing Web-to-TV video service
    Verizon officials confirmed that the company is beta-testing a service that will allow customers of its FiOS TV to download videos from Web sites such as YouTube and Veoh. A Verizon spokeswoman said it was too early to schedule a launch date for the service, but this article suggests that it could happen later this year or in early 2009. Multichannel News (7/24)
  • Other News
  Technology Trends 
 
  • Report: Viewers will tolerate some video Web ads
    A significant majority of those who watch Internet video said they would not mind watching ads in exchange for being able to view TV and movie content for free -- but only for full-length video, according to Ipsos MediaCT's ongoing tracking study. While more than half of the respondents still thought it reasonable to sit through ads on shorter clips, analysts warned that users are accustomed to watching clips without advertising. InformationWeek (7/24)
Volt Telecommunications Group, Inc. announces the promotion of Charles "Chuck" Scott to Chief Operating Officer (COO). Click here to read the full press release on our Website.
  IP Download 
  • Out of danger, Vonage will soon name CEO
    Vonage Holdings said Thursday that it had completed a $215 million financing deal with hedge fund Silver Point Finance and might name a CEO by next week. The VoIP company said it would back $253 million in convertible notes ahead of a Dec. 16 deadline, a move that the company hopes eases auditors' concerns about its ability to remain afloat. The Wall Street Journal (subscription required) (7/25)
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--Anais Nin,
French writer and diarist

  
 
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