Level 3 Turns Free Cash Flow Positive

Level 3 Communications reported consolidated revenue of $874 million for Q3 compared to a projection of $865 million to $900 million. Free cash flow for the quarter increased to positive $40 million compared to negative $34 million in the previous quarter. The net loss for the third quarter was $0.38 per share, or $247 million. As a result of the company's pending sale of the Midwest Fiber Optic Network, a non-core network asset acquired in the Genuity transaction, those operating results are included in discontinued operations.
http://www.level3.com

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Toshiba Builds Wi-Fi and VoIP into PDAs

Toshiba introduced new Pocket PC devices that feature integrated Wi-Fi (802.11b) connectivity and VoIP capabilities. Users with a subscription to a VoIP broadband telephony service could use the devices to place phone calls over a WLAN.
http://www.toshiba.com

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SIPphone Offers Free Worldwide Calls to Other SIP phones

SIPphone, a start-up based in San Diego, California, introduced a SIPadapter device that enables SIP calls over any phone, even a cordless unit common in many households. A SIPadapter comes with a unique phone number beginning with (747). It also includes an account on my.SIPphone.com, where a user can customize their phone, manage their numbers and view their call history. An online address book and popular features such as call-waiting, caller ID, and the logging of missed calls are all available as part of the free service. Users can hear their number echoed to them by dialing. Once installed, users can place calls to the worldwide SIPphone community now spanning 47 countries. In addition, toll free 800 and 8xx numbers can be accessed, even from SIPphones based outside the U.S. It is also possible to dial any telephone number using a common calling card while avoiding any monthly fees.
http://www.SIPphone.com

• SIPphone is headed by Michael Robertson who is the founder and former CEO of MP3.com (digital music) and the founder and current CEO of Lindows.com (digital delivery of software).

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GRIC Signs Major Wi-Fi Aggregators Worldwide

GRIC Communications signed agreements with three major Wi-Fi service providers, adding more than 2,200 live Wi-Fi access locations in five European countries and South Africa to the GRIC TierOne Network. The agreements with The Cloud, Monzoon Networks and PicoPoint add Wi-Fi access locations in the UK, Germany, Switzerland, the Netherlands, Luxembourg, and South Africa. The GRIC TierOne Network currently has more than 3,000 active Wi-Fi and Ethernet access locations in 20 countries, in addition to more than 35,000 dial-up locations in 150 countries. GRIC has now signed agreements with 48 Wi-Fi service providers in 32 countries.
http://www.gric.com
http://www.monzoon.net

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Belgian City Builds Municipal Wi-Fi Net with Cisco

The City of Hasselt, Belgium is building a municipal Wi-Fi network described as one of the largest such projects in Europe. Cisco Systems is supplying equipment for the project, including the Cisco Aironet 1200 Series of Wi-Fi Access Points administered via a CiscoSecure Access Control Server. The project follows the deployment of some 250 Cisco Aironet Series Access Points at local high schools.
http://www.cisco.com

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Qameo Software Aims for Optimized Broadband Content Downloads

Qameo, a start-up based in Los Angeles, announced a software system for downloading multi-gigabyte files to broadband users in a more efficient fashion than peer-to-peer networks, FTP (file transfer protocol) and video "streaming" software. The Qameo system creates and manages an interruptible connection between the PC and a distributor of movies, music or other files. The content file is downloaded in segments, running in the background only when the PC is not being used for other purposes. The concept would enable consumers to receive full-quality digital video in their home by harnessing their computer's unused bandwidth at night. The system includes digital rights management (DRM) enabling users to access a potentially vast library of feature films, classic films, independent productions, short films, documentaries, special-interest programming that have been stored locally.
http://www.Qameo.com

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UTStarcom's Q3 Sales Rise 44% over Q2

UTStarcom reported that net sales for Q3 2003 increased to $584.4 million, a sequential increase of 44% over the $405.8 million in net sales reported in the previous quarter and a 120% increase over the $265.5 million in net sales reported in Q3 2002. Net income for Q3 increased 92% year-over-year to $59.1 million, or $0.46 per share, compared to net income of $30.8 million, or $0.27 per share, for Q3 2002. Q3 marked the fifteenth consecutive quarter of increasing revenue and earnings for the company. Q4 revenues are expected to be in the $635-$640 million range.


In China, the number of subscribers on UTStarcom's PAS networks reached 16.7 million at the end of Q3 and total PAS subscribers in China are expected to be approximately 30 million by the end of 2003.


PAS handset shipments were approximately five million units in Q3, a record high for the company


The subscriber base for Yahoo! BB in Japan continues to grow, with more than 3.2 million people subscribed for broadband service and approximately three million for the BB Phone service. BB Phone presently has the largest number of users among domestic IP telephone service providers in Japan.
http://www.utstar.com

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Centillium Sees Rise in Q3 Revenue, Notes Slowing of DSL Growth in Japan

Centillium Communications reported Q3 revenues of $37.5 million, a 10.5% increase from the $33.9 million of revenues for Q2 2003, and an increase of 61.2% from revenues of $23.3 million for the third quarter of 2002. Net profit for the quarter was $382,000, or $0.01 per share, compared with a net loss of $511,000, or $0.01 per share in Q2.


Centillium noted that DSL revenue from regions other than Japan grew 37% from the previous quarter to $6.0 million. However, over the last four months, the number of net new DSL subscribers in Japan has slowed to a monthly average of 330,000 compared to a monthly average of 461,000 new subscribers during the preceding eight months. Since net new DSL subscribers are a significant driver of consumption for Centillium's DSL products, the recent lower number of new subscribers in Japan will likely contribute to a decline in near-term quarterly revenue. Nevertheless, Centillium said Japan's DSL market remains promising as service providers in Japan have begun providing 24 Mbps ADSL service based on its chips.
http://www.centillium.com

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Cablevision to Spin-off Satellite Subsidiary

Cablevision Systems announced plans to spin-off its recently launched satellite service (Rainbow DBS.) In addition to Rainbow DBS, the new, spun-off entity will include three of Rainbow Media's national entertainment services -- AMC, The Independent Film Channel and WE: Women's Entertainment -- their subsidiaries, and certain other Rainbow businesses. Cablevision plans to focus primarily on its core regional cable, telecommunications, sports and entertainment assets. Cablevision will no longer retain the rights to offer DBS service in the New York area.
http://www.cablevision.com

• In October 2003, Rainbow DBS, the satellite service division of Cablevision Systems, launched an array of high-definition television (HDTV) programming to customers across the continental U.S. The new "VOOM" satellite service will eventually carry as many as 39 HDTV channels, as well as 88 channels in standard-definition format. VOOM will initially broadcast in MPEG-2, with an upgrade to MPEG-4 currently expected for the third quarter of 2004. Using MPEG-4, Rainbow DBS will be able to broadcast more than 200 channels, including at least 39 HDTV services. Rainbow DBS will also provide local digital over-the-air programming. Hardware for the VOOM service will include a satellite dish and a specially designed set-top receiver manufactured by Motorola, as well as a digital antenna for local broadcast signals. The Motorola set-top is upgradeable to MPEG-4.

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Nortel Networks Reports Positive Trend, Financial Restatements

Nortel Networks reported selected preliminary unaudited results for Q3 2003 and announced its intention to restate its financial results for 2000, 2001 and 2002 and the first and second quarters of 2003.


The restatements are expected to result in a reduction in previously reported net losses for 2000, 2001 and 2002; and an increase in shareholders' equity and net assets previously reported on Nortel Networks balance sheet as 30-June-2003. None of the adjustments are expected to have any impact on the company's cash balance as of 30-June-2003 nor does the company expect the adjustments to impact its forward business operations.


Nortel Network reported preliminary net revenues of US$2.27 billion for Q3 2003 and net earnings of approximately US$179 million, or approximately US$0.04 per common share on a diluted basis. Frank Dunn, president and CEO of Nortel Networks, said, "the preliminary results announced today reflect our continued progress in an environment of cautious capital spending by our customers."http://www.nortelnetworks.com

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Marconi Posts 6% Sequential sales increase to £389 Million

Marconi reported a 6% sequential sales increase to £389 million. The company cited strong sales performance in its U.S. business, which was up 15% driven by higher sales to the U.S. federal government and increased levels of broadband access deployment. Across Europe and in other regions of the world, Marconi noted increased stability and said revenues were up by 2%.


The company also said increased orders received during the quarter led to a book-to-bill ratio of 1.22 across its divisions. Marconi also cited further market traction for its next generation products; including significant new business wins such as its 3-year frame contract for Access Hubs to BT; further units of the BXR-48000 to the U.S. federal Government and a large European financial institution; and next generation SDH equipment to BT and China Unicom.


Marconi said it maintains a cautious view on the potential volatility in near-term market conditions.
http://www.marconi.com

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BT Bundles Wi-Fi into Broadband Access

BT will begin offering a new "Broadband Traveler" residential service package that includes ADSL, home networking and public Wi-Fi access. The company said the new service marks a significant step forward for its plan to boost awareness and use of Wi-Fi in the UK. BT customers now have access to 1,155 Wi-Fi sites nationwide, meaning BT is on track to beat its target of 4,000 hotspots by June 2004. Users of the Broadband Traveler package will receive BT Openzone access free for the first 3 months. After this, the BT Openzone service is charged on a pence per minute basis.
http://www.btplc.com

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Sprint Reports $6.7 Billion in Revenue, Write-Down for MMDS Spectrum

Sprint reported overall growth in revenues for the second consecutive quarter, but the company announced a write down of its MMDS spectrum and Sprint PCS attracted fewer new customers than market expectations. Net operating revenues were $6.7 billion, compared to $6.8 billion in the same period last year. Net loss for the third quarter was $498 million versus net income of $519 million for the same period last year. Net loss in the third quarter of 2003 includes a net loss from special items of $768 million, while the third quarter of last year includes a net gain from special items of $260 million and net income from a discontinued operation of $42 million. Sprint will take special a pre-tax, non-cash charge of $1.2 billion to write down the value of its MMDS spectrum, reducing the carrying value of the asset to $300 million.


Some highlights for Sprint FON (comprised of the company's global markets division, local division and other wholesale businesses):

• total voice revenues were flat, sequentially. Retail business voice revenues increased 3%. Consumer revenues continued to be impacted by product substitution and aggressive competition, but were stable compared to the previous quarter. Due to the loss of a major customer, wholesale voice revenues were down year over year as expected.



• data revenues were again stable sequentially with mixed product performance. Frame Relay revenues grew at a low double-digit rate compared to last year, while ATM and Private Line declined. IP revenues were again impacted by a price reduction of a large Dial IP contract. Other revenues were impacted by lower equipment sales and the sale of Sprint's consulting business in Q3 2002.



• during the quarter, Sprint's local division successfully converted two additional switch complexes to packet technology and plans to have converted over 150,000 lines by the end of the year.



• 60% of new customers for Sprint's local division in the quarter signed up for a bundled plan.

Some highlights for Sprint PCS:

• net subscriber additions for Q3 include 184,000 post-paid retail, 290,000 from wholesale channels and 22,000 from affiliates. At the end of the period, PCS Group was serving a total of 19.3 million customers.



• mobile ARPU was just under $63 in Q3, down slightly when compared to the year ago period and $1 higher sequentially.



• the company now has 2.7 million PCS Vision customers, up from 2.1 million in the second quarter.



• churn was 2.7% this quarter compared to 2.4% sequentially, but remained much lower than the 3.8% reported a year ago. The company said it is preparing initiatives to improve customer retention ahead of the impending WLNP (wireless local number portability) changes.

http://www.sprint.com

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AMCC Sees 22% Sequential Increase in Revenues

Applied Micro Circuits Corporation (AMCC) reported quarterly revenue of $25.1 million, up 22% sequentially from the $20.5 million reported in prior quarter, but down 17% from the $30.2 million reported in the same period last year. The net loss for the quarter was $22.9 million or $0.08 per share, compared with a net loss of $53.4 million or $0.18 per share for the prior quarter.
http://www.amcc.com

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Vitesse Reports Slight Increase in Quarterly Revenues

Vitesse Semiconductor reported quarterly sales of $42.8 million, compared to $35.6 million for the same period last year and $39.7 million in the prior quarter. The quarterly sales figures exclude revenues from discontinued operations. Vitesse recently sold its line of optical module products to Avanex Corporation. In the prior quarter Vitesse also announced the closure of its 6-inch Gallium Arsenide (GaAs) wafer fabrication facility in Colorado Springs. The net loss for the quarter was $1.6 million.
http://www.vitesse.com

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