Level 3 Wary of VOIP Regulation
Level 3 announced that it has swung to a positive cash-flow in its third quarter, but it warned that hurdles around VOIP regulation need to be settled swiftly and fairly in order for the market to blossom (see Level 3 Reports Q3 Loss). The company reported a net loss for the quarter of $247 million, or 38 cents a share, compared with a loss of $299 million, or 73 cents a share, a year earlier. Revenues totaled $874 million, in line with its recently reduced guidance, but below its year-ago revenues of $1.05 billion.
The company said it cut 380 positions, or 21 percent of the work force during the quarter, which helped it achieve the $40 million in cash flow against a year-ago $34 million outflow.
During its earnings call Thursday, one analyst raised concerns about potential VOIP regulations and how these might affect Level 3’s business going forward.
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— Jo Maitland, Senior Editor, Boardwatch
``What happens if a 15-year-old is using a VoIP phone,'' Mickiewicz said, ``and fire breaks out and the kid can't call 911? Who's going to get the blame? People will be saying, `Why weren't they regulated?' ''
>>this is LIKE totally stupid..
LIKE you think CELL PHONES are going to disappear
or something?
Even my grandma has a cell phone.
>>sounds like a government beurocrat that would
use some argument like 911 calls.
>>Gov wants regulation because they want to
tax VOIP calls.
>>States like Calif are in the battle too they
also want piece of action.
http://www.bayarea.com/mld/sil...