Brave New Networking World Has 360 Offering to Pay as It Gets Paid

Citing a telecom "nuclear winter," 360Networks (TSIX Quote) is spreading the fallout across the networking sector in two parts: a spending cut and -- in a new twist -- deferred payments.

Halfway through the construction of its $7.2 billion global fiber-optic network, 360Networks has cut its equipment spending budget by $500 million. More notably, the company said on an earnings call late Thursday that it is negotiating a pay-as-we-get-paid arrangement with its equipment suppliers.

This new dimension potentially deepens the gloom surrounding the industrywide slowdown in equipment spending, falling squarely as it does in the lap of 360Network's four big suppliers: Nortel (NT Quote), Cisco (CSCO Quote), Alcatel (ALA Quote) and Sycamore (SCMR Quote).

Turnabout

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