$79.8b off balance sheet
WorldCom has written off US$79.8 billion in goodwill and other assets as the telecommunications company struggles to recover from the largest bankruptcy in US history. The previous $US45 billion value related to WorldCom’s goodwill was completely written off and the value of its equipment and other intangible assets was reduced from $US44.8 billion to $US10 billion. The $US34.8 billion decline in plant, property and equipment assets reflects the overcapacity that has stifled the telecommunications industry in the last two years. WorldCom pursued an acquisition strategy to become a leading carrier of IP traffic around the world, but those acquisitions are no longer worth what the company paid for them.
Separated sales operations
National Telecoms Group (NTG) will undergo a restructure after a board decision to separate the existing sales operations into independent businesses. The company will create wholesale product packages including telephone and office equipment, software for call tracking and unified messaging as well as installation and support services. They will be distributed through independent dealers. Most of the sales team has migrated to the new business units and NTG now expects to reach a positive cash flow in April, according to a statement released to the ASX.
New ADSL gaming service
A new ADSL service designed to address the needs of Australian online gaming enthusiasts will be launched by online games network and Internet Service Provider (ISP) OzForces later this month. The company claims it will offer unlimited monthly downloads that are exempt from shaping policies or excess data limitations. Services will be available at download speeds of 256/64Kbps, 512/128Kbps or 1.5Mbps/256Kbps, with monthly fees starting at $79 per month.