Internet and telephony provider Dingo Blue will close its doors within weeks, leaving 68,000 customers looking for an ISP. Parent company AGL lost more than $45 million on Dingo since it bought the ISP from Optus some 15 months ago, with Dingo Blue spokesman Geoff Donohue saying AGL lost $12 million in the six-month period to December 1. AGL last week announced its decision to write off the telecomms retailer and exit the business. The energy company has included the cost of meeting staff entitlements and all outstanding contracts with suppliers in its write-down for Dingo Blue.
Telstra to halve ISP costs
Telstra has responded to critics of its broadband policy by announcing a reduction on broadband prices for its ISP resellers. Telstra's ISPConnect allows ISPs to connect to the telco's switched data network to offer subscribers ADSL connectivity. Telstra officials now claim changes have been made to its network that will result in substantial cost savings for Telstra resellers. Mark Wilson, national sales manager for Telstra's indirect data channel, said the cost reductions will affect all ISPConnect partners, but will be more significant for those that serve customers over wider geographies. Wilson denied that the reductions had anything to do with an ACCC investigation into Telstra's pricing model.
Avaya to cut 1900
Networking hardware vendor Avaya has said that its second-quarter financial results would come in lower than previously expected and that as a result it would restructure, including cutting 1900 jobs, or almost 8 per cent of its workforce. Avaya said that it would tally between $US1.24 billion and $1.28 billion in revenue for the second quarter of 2002, which ends on March 31, down from the $1.25 billion-$1.36 billion range it had previously stated. The job cuts come as part of an effort to trim between $180 million and $200 million in expenses, the company said in a statement.