Sprint PCS posted a quadrupling in net losses despite a tripling in revenues, while AT&T CEO Dan Hesse touted PCS-based network expansion … 17 years ago this week
Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!
Sprint PCS posts $1.46 per share loss
Sprint Corp. announced April 20 first-quarter consolidated revenues of $4.72 billion, a 16-percent increase from the $4.08 billion posted for the same period of 1998. The next day Sprint said it awarded Lucent Technologies Inc. a $780 million equipment contract. Kansas City, Mo.-based Sprint is divided into Sprint FON Group, which comprises core wireline operations, and Sprint PCS Group, which consists of its wireless personal communications services operations. Sprint PCS posted revenues of $604.2 million, nearly triple the $203.3 million it earned during the first quarter of 1998. However, its net losses for the latest complete quarter were $625.5 million vs. $145.2 million for the year-ago quarter. … Read More
AT&T to increase footprint aggressively via PCS
AT&T Wireless Services Inc. announced record revenue growth in the first quarter, adding 378,000 customers and surpassing 10 million total customers. AT&T Corp. said it was raising its revenue growth target for the wireless division to more than 20 percent for 1999. While revenue increased 40 percent in the quarter, adjusted for the sale of the company’s messaging division in October, the carrier’s EBITDA (earnings before interest, taxes, depreciation and amortization) less other income was flat year-over-year. “All of the margin deterioration year on year can be explained by the additional investment we are making in new customers and digital migration,” said AT&T Wireless Chief Executive Officer Dan Hesse. … Read More
Motorola backs off paging system business
Motorola Inc. and Glenayre Technologies Inc. signed a memorandum of understanding that, if fulfilled, will license Glenayre to manufacture all Motorola’s paging infrastructure-effectively heralding Motorola’s exit from the paging infrastructure manufacturing business. “We need to focus on the things we do best,” said Amanda Dahlke, spokeswoman for Motorola’s Paging Systems Group. She said Motorola intends to shift attention away from paging infrastructure-which she noted was a small portion of Motorola’s overall business-in favor of increased attention to paging subscriber devices, protocol enhancements and applications development. … Read More
Telcos want to be rid of separate wireless sub rule
The Federal Communications Commission will decide next month whether mid-sized incumbent local exchange carriers must continue to have a separate subsidiary to offer wireless services. An association representing mid-sized companies wants the FCC to stop enforcing the rule. The request by the Independent Telephone and Telecommunications Alliance is part of a broad forbearance petition filed on Feb. 17, 1998. The FCC must rule on the petition by May 18. Congress established procedures in the Telecommunications Act of 1996 that allow entities to ask the FCC to stop enforcing rules that have become moot because of competition. The procedures require the FCC to rule on such requests within one year, but gives the agency the option of a 90-day extension if necessary. … Read More
Iridium CEO leaves unexpectedly
Capping a string of negative developments leading up to its first-quarter earnings report this week, Iridium L.L.C. announced Edward Staiano-the company’s vice chairman, chief executive officer and most voracious supporter and motivator-resigned last week. Reports are that Staiano and Iridium’s board of directors had disagreements over strategy, a point that has beleaguered the first-to-market low-earth-orbit satellite voice carrier since it commercially activated the network last November. … Read More
Digital wireless drives DSP market
After coming off one of its worst years in history, the semiconductor industry continues to show signs of recovery. The industry finished last year with total sales of $125.6 billion, a decrease of 8.4 percent from year-end 1997 sales, according to the Semiconductor Industry Association. The industry was expected to post decreases in sales for 1998 of more than 10 percent, but it was boosted by a slight rally during the fourth quarter. Dataquest Inc., a unit of Gartner Group Inc., said the worldwide semiconductor market suffered its biggest decline since 1985, when the market declined by more than 15 percent. Despite the sluggish year for the overall semiconductor market, Dataquest said the market for digital signal processors grew 5.4 percent due in part to increasing rollouts of digital mobile phones and cellular infrastructure. … Read More
Motorola invests in SnapTrack
SnapTrack Inc. last week announced a strategic partnership with Motorola Inc. under which it will license its personal location system to Motorola’s Semiconductor Products Sector. Motorola will use SnapTrack’s technology through a royalty-bearing license agreement to offer personal location services as a part of its wireless chipsets for mobile devices. Motorola said it will license SnapTrack’s technology to complement its DigitalDNA solution for wireless platforms. In addition to the broad licensing agreement, Motorola has made an equity investment in SnapTrack. … Read More
House GOP leaders urge support of encryption bill
The House Republican leadership sent a letter to their colleagues last week stating strong support for a House bill to relax export controls on encryption products. Encryption technology is used to scramble computer data. The computer industry has been trying for years to relax export controls on encryption technology but has met resistance from the FBI and National Security Agency. … Read More
Telecom act could cause trouble for tower companies
The transition of control of cell sites from wireless carriers to independent tower companies is accelerating, and build-to-suit companies increasingly are getting the call from carriers to handle the buildout of their networks. Most industry watchers agree the transition is good for carriers and tower companies alike. Carriers in an increasingly competitive market get to make money from their tower assets and focus on their core service business, while tower companies acquire revenue-generating property. Even municipalities should benefit from the trend because tower companies are supposed to foster collocation. … Read More
Lucent offers migration path to packet network
First out of the box with an end-to-end solution allowing voice carriers a means to migrate their networks to a packet-based paradigm, Lucent Technologies Inc. introduced a product portfolio targeted at new and incumbent operators. Lucent’s R/Evolutionary Networking solution is based around the 7R/E Call Feature Server, which it said enables packet-based voice, data and services such as call waiting, 911 and three-way calling, with the same voice quality as today’s public networks. It is expected to begin shipping in the fourth quarter. … Read More
Check out RCR Wireless News’ Archives for more stories from the past.
