Trucking Technology Report - Feb. 1
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Both the online report and e-mail are sponsored by @Track Communications, a supplier of wireless communications and dispatch services.
Today's Technology Headlines:
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Loral Scraps Plans To Be Major Operator of Two-Way Satellite Broadband Systems
Loral Space & Communication's CEO and chairman, Bernard Schwartz, has announced that the company no longer plans to establish itself as a leading satellite operator offering Web access to consumers.
The announcement strongly suggests that Loral Communications is facing increasingly difficult circumstances from its 40% investment in Globalstar, according to analysts.
Some add that Loral's involvement with Globalstar has caused the firm to struggle in efforts to generate funds, establish agreements with other telecom companies, and invest in new operations. Loral's shares have dropped dramatically during the last few months.
Schwartz said in the announcement that Loral will now concentrate on offering satellite capacity to other companies that provide two-way satellite broadband services, including Gilat Satellite Networks. Wall Street Journal (02/01/01) P. A4; Pasztor, Andy
FCC Delays Wireless Airwave Auction
The FCC announced on Wednesday that it postponed its auction of wireless licenses from March 6 to Sept. 12. The commission said it postponed the auction to allow bidders extra time to review their spectrum requirements.Verizon Wireless, the alliance between Vodafone Group (VOD) and Verizon Communications (VZ), had requested that the FCC postpone the auction to give bidders time to review their needs after the FCC's most recent auction, which was completed last week.
Verizon was awarded over 25% of the 422 wireless licenses offered in the auction of C and F block licenses.
Tom Wheeler, the Cellular Telephone and Internet Association's president and CEO, believes a short break is necessary before the next round of bidding begins to allow carriers to review their spectrum requirements and establish bidding strategies. New York Times (02/01/01) P. C6
FCC Member Won't Seek Another Term
FCC Commissioner Harold Furchtgott-Roth, one of two Republicans serving on the five-person panel, has decided not to pursue a second term with the agency, which supervises the telecom, television, and radio markets.Furchtgott-Roth said every free-market advocate in government at some point decides he needs to return to the private sector.
Although his term ran out in June, commissioners are allowed to remain at their posts for up to an additional 18 months. Furchtgott-Roth, who took the post in November 1997, has not yet revealed when he will leave. New York Times (02/01/01) P. C6
PHH Develops Web-based Fleet Management System
PHH Interactive, a new Web-based product from fleet-management company PHH, enables the corporate customers to access vehicle maintenance histories and employee driver-safety records via a password-protected extranet. Companies whose truck and auto fleets are managed by PHH can also get nearly real-time information about repairs and purchases made.The system will keep managers at the customer companies from having to pore over hard copies of reports or look through dozens of floppy disks to keep track of purchases and repairs. It should also help customers to pinpoint trends, identify problem drivers, and predict ahead of time when a vehicle will need maintenance. Darwin (01/01) Vol. 1, No. 4, P. 148; Cummings, Elaine M.
Taking Transportation and Logistics to the Net
Speaking recently to the Council of Logistics Management, Consolidated Freightways (CFWY) official Patrick Brady discussed the company's process of moving transportation and logistics operations online. Brady said that CF's strategy demands that technology add value to the company's service and demonstrate the potential to lead to increased revenue and reduced costs through efficiency. Because logistics technology is still a new field, CF has a complex process for deciding which tools are useful to customers.
The company's first offerings are self-serve, Web-based tools for putting together bills of lading, scheduling pickups, and downloading forms. In the future, the company hopes to be able to offer integrated systems enabling customers to take an active part in managing their freight in the CF system.
One new application striving to offer such an integrated system is Computer Associates International's interBiz Logistics, which is currently in beta-testing at logistics companies in Arizona and Australia.
Tempe, Ariz.-based Integrated Business Logistics is one of the companies testing the software; it intends to offer the system to its customers either as a leased package or as a hosted application with a monthly subscription fee. Electronic Commerce World (01/01) Vol. 11, No. 1, P. 48; Burgert, Philip
Satellite Communications Services Ride Out Tough Times
The satellite industry has been weathering difficult times during the last two years. The industry has been hit by a series of bankruptcies, and many industry observers question whether a sufficient market for satellite services exists.Globalstar and the new Iridium are attempting to prove critics wrong. However, Globalstar was hit hard last year when it shares plummeted by roughly 95%. And the company failed to meet CEO Bernard Schwartz's forecast of 500,000 users by the end of last year. According to numbers compiled for the third quarter, Globalstar has only 21,300 customers.
Analysts say the company needs 1.6 million users just to break even. Globalstar has acquired $68 million in financing from five of its partners, which include QUALCOMM (QCOM) and Vodafone (VOD). The financing will keep Globalstar operational until May of this year. But it is not known if the partners will continue to fund the company after May. Globalstar has the difficulty of dispelling the industry-wide perception that satellite companies cannot be successful enterprises.
According to a Loral spokesman, Globalstar intends to prove its business case before the new financing is depleted. Loral has a 40% stake in the company. Globalstar's senior vice-president of business development, Terry Evans, argues that Globalstar's operational costs are much lower than Iridium's were. But even Schwartz acknowledges that the poor third-quarter results for last year indicate the company needs to reassess its marketing strategy. He notes that Globalstar is hastening plans to offer services to the government and large industries.
The company offers service in 109 countries and has sold service to various companies throughout the world. The company will begin offering telemetry applications during the first half of this year, says Daniel Merediths, a data products manager for Globalstar USA, a unit of Vodafone. Telephony (01/22/01) Vol. 240, No. 4, P. 82; Luna, Lynette
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