1. Global Crossing Files Chapter 11 Bankruptcy
Global Crossing has filed Chapter 11 bankruptcy, representing the fourth largest bankruptcy in U.S. history based on company assets. As part of its reorganization plan to be presented to bankruptcy court, the company has said that Hutchison Whampoa and Singapore Technologies Telemedia have agreed to pay $750 million to take control of the company and keep it operational, without any service interruption. Rival offers could emerge from other telecom giants such as WorldCom, DT, or SBC changing the plan.
The bankruptcy filing follows a plummeting stock value that dropped from a high of $64.25 in May 1999 to a low of 51 cents before trading was suspended today. Consequently, the stockholders and creditors are the biggest losers. The largest unsecured creditors include Lucent, Alcatel, BellSouth, and Verizon, a group that is collectively owed $220 million. In all, Global Crossing had $22.4 billion in assets and $12.4 billion in liabilities.
Arthur Andersen, infamous for its role in the Enron scandal, has been serving as Global Crossing’s auditor and as a financial consultant. In 2000, Andersen billed the company $2.3 million in auditing fees and nearly $12 million in consulting fees.
Global Crossing links more than 200 major cities in 27 countries.
3. Vodavi Introduces Gateway
Vodavi Technology has introduced a gateway that contains 2 analog CO ports and an Ethernet port. The technology is based on H.323 Revision 2, G.711 A-Law/U-Law, silence suppression and echo cancellation. The gateway can be remotely administered from the web.
The gateway will be available for $925 from Starplus Triad dealers.
5. Verizon Offering Enterprise VoIP Consulting
Verizon has said that it is offering a suite of professional and project management services for enterprises that push Cisco’s AVVID VoIP solution. The services include transport services, site assessments, upgrade services, project management, training, and maintenance.
Verizon Enterprise Solutions
7. Tekelec Teams with BroadSoft and Telica
Tekelec has entered strategic partnerships and placed investments totaling $16.5 million in BroadSoft and Telica. Tekelec plans to integrate its IP7 Secure Gateway with Telica’s Plexus 9000 signaling platform and BroadSoft’s BroadWorks service delivery platform.
9. Ntera Using Lucent’s Nodes to Offer VoIP
Lucent has announced that Ntera has deployed more than 100,000 ports of its EXS Converged Services Platform IP service nodes to offer a suite of global IP services such as pre=paid calling and least cost routing applications. Ntera will use the VoIP capabilities and TDM interfaces of the platform interconnect the distributed sites in the network. The software will be used as a base for its programmable server environment and to the platform as a tandem switch and SS7 signaling and media gateway for its entire network.