Subject: [NEXTEL-1] Telecom Update #428, April 12, 2004

From: [email-masked]
Date: Mon, 12 Apr 2004 12:23:16 -0400

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TELECOM UPDATE 
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IN THIS ISSUE: 

** CRTC Announces Internet Telephony Review
** Aliant Wants Local Service Deregulated
** MTS Income Trust Proposal Withdrawn
** Cable Profits Increase 16%
** Bell Says 11% of Local Calling Is Wireless
** Allstream Managed LAN Will Support VoIP
** Bell Intros Hosted Microsoft Exchange
** SEC Investigates Nortel
** Matthews Changes Role at March Networks
** Ontario and Michigan Research Nets to Connect
** Broadband Tested on Atlantic Vessels
** Inukshuk Calls for Internet Learning Proposals
** Celestica to Close Montreal Plant
** Big Jump for RIM Revenue
** Cogeco Cable Revenue Rises
** Shaw Reports Profit
** Angus Speakers at ICCM Next Week
** IP-PBX Issues in 2004

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CRTC ANNOUNCES INTERNET TELEPHONY REVIEW: In Public Notice 
2004-2, the CRTC sets out its preliminary view that VoIP 
services should be subject to the same rules as regular local 
phone service. This would mean that incumbent telcos' "in-
territory" VoIP services will require tariff approval, while 
those of other providers will not.

** In the CRTC's view, VoIP providers should have to inform 
   customers if they cannot initially provide 9-1-1, E9-1-1, 
   Message Relay Service, or privacy safeguards, and must 
   offer them as soon as practicable.

** Initial comments are due by April 28, followed by an oral 
   consultation May 19-20.

www.crtc.gc.ca/archive/ENG/Notices/2004/pt2004-2.htm

ALIANT WANTS LOCAL SERVICE DEREGULATED: Aliant Telecom has 
asked the CRTC to unconditionally forbear from regulating 
residential local phone services in 32 exchanges in Nova 
Scotia and Prince Edward Island, where it estimates that 
EastLink has 21% of the market. 

** While the application is being considered, Aliant wants 
the CRTC to immediately exempt it from rules that restrict 
bundling and winback activity, and to allow it to file 
special promotional tariffs confidentially.

www.crtc.gc.ca/PartVII/eng/2004/8640/a53_200403329.htm

MTS INCOME TRUST PROPOSAL WITHDRAWN: Shortly after Manitoba 
Telecom Services announced a dividend increase last week (see 
Telecom Update #427), Enterprise Capital Management withdrew 
its shareholder proposal to convert the telco into an income 
fund. Enterprise owns approximately 5% of MTS's common 
shares.

CABLE PROFITS INCREASE 16%: The CRTC's annual report on 
broadcast distribution undertakings, released last week, says 
that cable industry profits jumped 15.8% from 2002 to 2003. 
The number of cable subscribers fell 2.1%. DTH and MDS 
revenues grew 27.2%, and subscribers increased 9.2%.

www.crtc.gc.ca/ENG/publications/reports/BrAnalysis/dist2003/dist2003.htm 

BELL SAYS 11% OF LOCAL CALLING IS WIRELESS: A study conducted 
by Bell Canada concludes that about 11% of Ontario and Quebec 
consumers' local calling is carried over wireless networks, 
and that 9% is carried by non-Bell service providers, 
including competitors and independent telcos.

ALLSTREAM MANAGED LAN WILL SUPPORT VoIP: Allstream has 
introduced a Managed Local Area Network service based on 
Cisco's AVVID architecture. The company says the service will 
support the Managed IP Telephony services that it plans to 
introduce in the second quarter of this year.

BELL INTROS HOSTED MICROSOFT EXCHANGE: Bell Canada's new 
Productivity Pak offers a hosted Microsoft Exchange service 
for small and mid-sized businesses. Pricing starts at 
$19.95/month for the full service bundle.

SEC INVESTIGATES NORTEL: Nortel Networks says that the U.S. 
Securities and Exchange Commission has issued a formal order 
of investigation into the company. This gives the SEC the 
ability to subpoena documents and testimony.

** Nortel recently announced that it had begun a second 
   internal review of its financial results since 2000, and 
   would delay its annual SEC filing. (See Telecom Update 
   #425)

MATTHEWS CHANGES ROLE AT MARCH NETWORKS: Peter Strom, who 
joined March Networks a year ago and became COO last fall, 
has been named President and CEO of the privately owned 
company. He takes over from principal shareholder Terry 
Matthews, who remains Chairman and says he will still be 
actively involved.

ONTARIO AND MICHIGAN RESEARCH NETS TO CONNECT: The Ontario 
and Michigan Research and Education networks, ORION and 
MERIT, have agreed to interconnect across the Canada/U.S. 
border, collaborate on advanced networking technologies, and 
facilitate research in the Great Lakes region. The two 
networks plan to connect at Windsor/Detroit later in 2004, 
and at Sault Ste. Marie at a later date.

BROADBAND TESTED ON ATLANTIC VESSELS: Telesat is pilot 
testing a satellite-based system that delivers broadband 
Internet access to marine vessels. The trial involves five 
ships owned by Marine Atlantic and two from the Woodward 
Group.

INUKSHUK CALLS FOR INTERNET LEARNING PROPOSALS: Inukshuk 
Internet is seeking proposals that focus on enhancing either 
content or connectivity related to learning and the Internet. 
The company, a subsidiary of Microcell, has established 
committees in each of its service areas to provide direction 
and guidance for projects, and will provide $3 million in 
funding. For information, go to www.inukshuk.ca or e-mail 
[email-masked].

CELESTICA TO CLOSE MONTREAL PLANT: Celestica will shut down 
its Montreal manufacturing plant within six months. Some of 
the 700 jobs will be transferred to its remaining Canadian 
manufacturing site in Toronto. 

BIG JUMP FOR RIM REVENUE: Research In Motion reports fourth 
quarter revenue of $210.6 million, up 37% from the previous 
quarter and up 141% from the same quarter of last year. The 
total number of BlackBerry users in the quarter increased by 
204,000 to 1,069,000.

COGECO CABLE REVENUE RISES: Cogeco Cable reports revenue of 
$129 million in the quarter ended February 29, 9% higher than 
a year earlier. Profits were $2.3 million, about double those 
of a year ago. 

** CEO Louis Audet says that Cogeco will soon start testing 
   IP-based phone service and will offer commercial service 
   within 18 months. (See Telecom Update #306)

SHAW REPORTS PROFIT: December-February sales of Shaw 
Communications were $531 million, a 1.8% increase from the 
same period last year. Net income was $17.1 million, compared 
to a loss of $19.7 million. Shaw's Internet subscriber total 
rose to 969,565, 3.8% more than three months earlier.

ANGUS SPEAKERS AT ICCM NEXT WEEK: ICCM Canada, Canada's 
premier contact centre event, will be held in Toronto, April 
19-21. 

** Henry Dortmans and Michael Dunne will conduct a half-day 
   tutorial on business skills for contact centre managers, 
   and both will moderate panel discussions. 

** Ian Angus will open the conference with a talk on the 
   state of the call centre industry in Canada.

** John Riddell will lead sessions on speech recognition and 
   performance indicators. 

** To register, go to www.iccmcanada.com or call 
   1-800-265-5665.

IP-PBX ISSUES IN 2004: The April issue of Telemanagement is 
now available online. This month, John Riddell explains why, 
despite the growing adoption of IP-PBXs, there remain 
significant problems in implementation and support. Also: Ian 
Angus on the arrival of next-generation wireless broadband; 
Gerry Blackwell tests local IP phone services from Primus and 
Vonage; and a debate on telecom regulation between BCE and 
the Cable TV Association.

** Telemanagement is available to subscribers only. 
   Telemanagement Online subscribers can access this issue, 
   and an extensive library of past issues, columns, 
   editorials, and feature reports, at http://online.angustel.ca.

** To subscribe, or to add online access to your existing 
   subscription, go to www.angustel.ca/teleman/tm-sub-online.html
   or call 800-263-4415 x500. 

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