Communications chip maker Agere Systems yesterday said it is leaving the slumping fiber-optics business, and it is cutting 4,000 jobs as part of a plan to cut costs. The company said it would focus on its semiconductor business.
Firms such as Covad, which emerged from bankruptcy leaner and better able to compete, could spark a second wave of bankruptcy filings, a report says. The industry suffers from a glut of fiber-optic cables, the report adds.
Alcatel has agreed to supply SBC with a high-speed fiber-optic system for a residential development in Northern California, the companies said yesterday. The new network would be able to transmit data several times faster than current DSL systems, a report says.
Williams Communications Group, which amassed $6 billion in debt constructing its 33,000-mile fiber-optic network, yesterday said it is seeking bankruptcy protection. The filing follows similar flameouts by other high-profile telecoms, including Global Crossing, which had more than $12 billion in debt.