IN BRIEF

Palm, FTC reach settlement on claims

The Federal Trade Commission said it had reached a settlement with Palm over charges that the company misled consumers about the wireless capabilities of its handheld computers. Under the terms of the settlement, the FTC said, the handheld computer company would be required to clearly disclose when consumers have to buy additional equipment, such as a modem, and to obtain advertised services like access to e-mail or the Internet.

A spokeswoman for Palm said the company believed it had not misled customers in the past, but that it would comply with the terms of the settlement. The company will be liable for penalties of up to $11,000 per count if it violates the agreement.

IBM reports $500 million order from Nestle

No 1 computer maker IBM announced that it has signed a five-year, $500 million agreement to provide computers and software to Nestle, the world’s largest food group. The deal is a promising sign for IBM, especially since most analysts expect corporate technology spending to decline this year, despite recent signs of a rebound in other sectors of the US economy.

Armonk, New York-based IBM said Nestle, based in Vevey, Switzerland, had agreed to equip five new data centres with IBM products including computer servers, storage systems and database software. It added that Nestle will use the data centres to support its roll-out out of business software applications from SAP, including programs which automate tasks such as financial, human resources and customer services processes.

Global Crossing target of 2nd buyout bid

Buyout firm Platinum Equity said it plans to make an offer for bankrupt telecommunications group Global Crossing, setting the stage for a potential bidding war by two Los Angeles buyout firms headed by two brothers.

The intended bid by Platinum, headed by Tom Gores, came less than a week after Gores Technology Group, headed by Alec Gores, said it was also was planning a bid for Hamilton, Bermuda-based Global Crossing. The prize for either brother is a company that owns one of the world’s biggest fibre optic networks, and one whose Chapter 11 bankruptcy filing in January was the fourth largest in US history.

Sony, Ericsson bet big on fun phones

Japan’s Sony and Sweden’s Ericsson re-launched themselves in the US mobile phone market, hoping that colour screens and picture-taking phones can help them make inroads among fun-loving consumers. The London-based handset joint venture, unveiled five phones for the US market after making similar announcements overseas.

Qwest gets downgraded by Moody’s

Rating agency Moody’s Investors Services cut Qwest Communications International to one notch above ‘junk’ status even as the company said it is on track to meet its financial forecasts and demand from business customers may be firming. Moody’s warned it may downgrade the Denver-based voice and data services company further if it is unable to renegotiate its $4 billion credit pact and raise funds to pay off its nearly $25 billion debt load.

Sprint sees wireless revenues strong

Sprint has announced its wireless telephone services unit, Sprint PCS, has seen pricing pressure from stiff competition but still expects average customer revenues to remain strong. The company added that its ARPUs (average revenues per subscriber) are holding up and it was 'pretty optimistic' that its push into the corporate market will continue to be strong.

Business, or enterprise, customers now represent a higher percentage of Sprint PCS's new subscribers. Business customers tend to talk more and use pricier features such as wireless data services than consumer customers.