Subject: [NEXTEL-1] Telecom Update #429, April 19, 2004

From: [email-masked]
Date: Mon, 19 Apr 2004 13:14:55 -0400

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TELECOM UPDATE 
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IN THIS ISSUE: 

** Telcos Want More Time for VoIP Review
** Primus Buys Ottawa ISP
** Broadband Gap Reduced
** Quebec and Atlantic Centrex Rates Increase
** Aliant Workers Vote Strike Mandate
** Wireless Revenue Up, Wireline Down
** Nortel Faces Ontario Securities Probe
** Aliant Expands 1X Network
** Telcos File Deferral Account Projections
** Thermo Takes Over Globalstar
** More Spectrum for Wireless Broadband? 
** U.S. Requires Label on Porn Spam
** Vancouver Wireless Developer Acquired
** MacCormack Joins Manitoba VoIP Provider
** Nominations Sought for CIPA Awards
** Look Revenues Slide 
** Bell CEO and Cable Exec Debate Regulation

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TELCOS WANT MORE TIME FOR VoIP REVIEW: Aliant, Bell Canada, 
MTS, SaskTel, Telebec, and Telus have jointly asked the CRTC 
to allow more time-–possibly until late June--for the 
preparation and filing of evidence on how VoIP services 
should be treated by the regulator. (See Telecom Update #428)

** In a separate submission, the Public Interest Advocacy 
   Centre says it needs more time to coordinate and present 
   consumer views on VoIP issues. 

www.crtc.gc.ca/PartVII/eng/2004/8663/c12_200402892.htm#2a

PRIMUS BUYS OTTAWA ISP: Primus Canada has agreed to buy Magma 
Communications, Ottawa's largest independent Internet 
services provider, in a cash and stock deal valued at $16 
million. The acquisition gives Primus 30,000 new customers in 
Ottawa, Toronto, and Montreal.

** Last week Primus said that it had arranged a $42 million 
   line of credit with an unnamed Canadian bank.

BROADBAND GAP REDUCED: The Broadband for Rural and Northern 
Development (BRAND) pilot program's National Selection 
Committee has submitted its final report to the Minister of 
Industry. Projects funded through the $105 million BRAND 
program, together with other federal, provincial, and private 
sector initiatives, will reduce the number of communities 
without broadband access to about 1,700 by the end of 2005.

** The Committee strongly recommends a continued push to 
   close the remaining gap and connect all Canadian 
   communities by that date.

http://broadband.gc.ca/pub/media/nsc/report/index.html

** The projects selected for implementation funding in Round 
   2 have now been announced.

http://broadband.gc.ca/applications/applicants.html?round=4

QUEBEC AND ATLANTIC CENTREX RATES INCREASE: The CRTC has 
approved two proposals to increase Centrex rates:

** Telecom Order 2004-121 accepts Aliant's proposal to 
   increase Centrex rates for customers wither fewer than 
   1,500 lines by $2/line/month. (See Telecom Update #424)

www.crtc.gc.ca/archive/ENG/Orders/2004/o2004-121.htm

** Telecom Order 2004-127 accepts Telus Quebec's 
   restructuring of Centrex rates under a plan that will, on 
   average, increase rates. The plan also adds term and 
   volume discounts, and provides lower rates for customers 
   who use Telus Quebec as their primary long distance 
   carrier.

www.crtc.gc.ca/archive/ENG/Orders/2004/o2004-127.htm

ALIANT WORKERS VOTE STRIKE MANDATE: Members of two unions 
have voted for strike action against Aliant, and the 4,300 
workers are now in a legal position to strike. Negotiations 
resume today. (See Telecom Update #425)

WIRELESS REVENUE UP, WIRELINE DOWN: Statistics Canada reports 
that wireless revenue grew 13.6% to $8.2 billion in 2003, 
while wireline revenue fell 4.6% to $23.0 billion, on top of 
a 3.1% decline in 2002. Fourth quarter wireline revenue was 
down 9.3% from the same period in 2002. 

** Total telecom industry revenue for 2003 was $32.6 billion, 
   essentially the same as in 2002, but operating profits 
   jumped 23.0% to $5.7 billion.

NORTEL FACES ONTARIO SECURITIES PROBE: Nortel Networks faces 
yet another investigation into the past and pending 
restatements of its financial results. The latest agency to 
probe its financial statements is the Ontario Securities 
Commission. (See Telecom Update #428)

ALIANT EXPANDS 1X NETWORK: Aliant Mobility says it now has 1X 
data technology throughout its digital service area. The 
company plans to spend $26 million this year to extend 
digital and 1X coverage to reach about 90% of the population 
of the four Atlantic provinces.

TELCOS FILE DEFERRAL ACCOUNT PROJECTIONS:  As instructed by 
the CRTC in PN 2004-1, the incumbent telephone companies have 
forecast the cumulative balances in their deferral accounts 
up to May 31, 2005. (See Telecom Update #426) 

** Positive balances are projected by Bell Canada ($165 
   million), Telus ($52 million), MTS ($12 million), Telus 
   Quebec ($1.6 million), and Aliant (just under $1 million).

** SaskTel projects a negative balance of nearly $12 million, 
   and wants to be compensated by an adjustment to its price 
   cap calculation.

THERMO TAKES OVER GLOBALSTAR: Thermo Capital Partners has 
taken 81% control of Globalstar for US$43 million, and the 
satellite phone provider has emerged from bankruptcy 
protection. Globalstar now plans to launch spare satellites, 
set up a new earth station in Florida, and add fax 
capability. (See Telecom Update #410)

MORE SPECTRUM FOR WIRELESS BROADBAND? The U.S. Federal 
Communications Commission has begun a proceeding on allowing 
wireless broadband services in the 3650-3700 MHz band, 
currently used by fixed satellite service earth stations. 

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246146A1.doc

U.S. REQUIRES LABEL ON PORN SPAM: The U.S. Federal Trade 
Commission has ruled that pornographic spam e-mails must 
include the phrase "SEXUALLY-EXPLICIT: " in the subject line, 
and that each message must include an "initially viewable" 
area that contains no sexually explicit text or images. The 
rule is effective May 19.

VANCOUVER WIRELESS DEVELOPER ACQUIRED: MDSI, a supplier of 
mobile resource management software based in Richmond, B.C., 
is being purchased by @Road for US$86 million. MDSI's 350 
employees will form a division of the California-based 
company. 

MacCORMACK JOINS MANITOBA VoIP PROVIDER: Bruce MacCormack, 
former President of CanWest Interactive and former 
President/COO of MTS Advanced, has been named Senior VP 
Corporate Development of Modern Digital Communications, a 
Winnipeg provider of IP-based long distance services.

NOMINATIONS SOUGHT FOR CIPA AWARDS: Canadian Information 
Productivity Awards has opened its twelfth annual competition 
for innovative use of technology. Nominations are due May 31.

www.cipa.com

LOOK REVENUES SLIDE: Wireless carrier Look Communications 
says its 2003 revenue was $48.8 million, down from $56.5 
million in 2002. The company had a net loss of $6.4 million, 
compared to a net loss of $2.7 million in 2002. 

BELL CEO AND CABLE EXEC DEBATE REGULATION: In the April 
Telemanagement, now available to online subscribers, BCE CEO 
Michael Sabia argues that government policy should recognize 
that consumers now use wireless and Internet services as 
substitutes for local phone service. Cable Association 
President Michael Hennessy disagrees, saying that regulatory 
changes should restrict the telcos' continuing monopoly 
power. 

** Also in this issue: John Riddell on problems with 
   implementation and support of IP-PBXs; Ian Angus on the 
   arrival of next-generation wireless broadband; and Gerry 
   Blackwell's report on tests of local IP phone services 
   from Primus and Vonage.

** To read these exclusive reports, plus our extensive 
   library of past issues, columns, editorials, and feature 
   reports, subscribe now by calling 800-263-4415 x500 or go 
   to http://www.angustel.ca/teleman/tm-sub-online.html.

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