Subject: [NEXTEL-1] Telecom Update #440, July 5, 2004

From: NEXTEL-1
Date: Mon, 05 Jul 2004 13:29:53 -0400

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TELECOM UPDATE 

Number 440: July 5, 2004

Publication of Telecom Update is made possible by generous 
financial support from: 
** ALLSTREAM: www.allstream.com 
** BELL CANADA: www.bell.ca 
** CISCO SYSTEMS CANADA: www.cisco.com/ca 
** CYGCOM INTEGRATED TECHNOLOGIES: www.cygcom.com 
** GROUP TELECOM: www.360.net 
** JUNIPER NETWORKS: www.juniper.net 
** PRIMUS CANADA: www.primustel.ca 
** SPRINT CANADA: www.sprint.ca 
** TELUS: www.telus.com 

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IN THIS ISSUE: 

** Telecom Update Takes a Summer Break
** BCE and MTS Settle Dispute
** Allstream Opposes CATA on Policy Review
** Microcell Rejects New Telus Offer
** Nortel Outsources Most Manufacturing
** Telus Consumer President Leaves
** Retailers to Sell Primus VoIP Service
** CRTC Rejects 900 Resale Plan
** Disputes Settled Before Hearing Starts
** Floor Price Replies Filed
** ISPs Escape Music Royalty Payments
** More Telemarketing Scammers Convicted
** CANARIE Chooses New Officers
** Glitch Cuts Rogers Blackberry Service
** RIM Reports Strong Results
** Delphi Names New CFO
** Telecom Conference Program Announced
** Do Frame and ATM Have a Future? 

============================================================

TELECOM UPDATE TAKES A SUMMER BREAK: Telecom Update is taking 
two weeks off so our staff can enjoy the summer weather. The 
next issue will be published on Monday, July 26.

BCE AND MTS SETTLE DISPUTE: Bell Canada Enterprises has 
withdrawn its lawsuits against Manitoba Telecom Services and 
Allstream. Terms of the settlement include:

** MTS will pay Bell $75 million to terminate their 
   commercial agreements. On receipt of the payment Bell will 
   waive its special shareholder rights, including its right 
   to seats on the MTS Board.

** Bell will sell its share of MTS. If there is a change of 
   control at MTS before 2006, Bell will receive a payment 
   reflecting any increase in the share price.

** The two companies may now compete with each other anywhere 
   in Canada. They will be each others' "preferred supplier" 
   of wholesale services, on a non-exclusive basis.

** Existing cellular agreements will remain in effect through 
   2006.

ALLSTREAM OPPOSES CATA ON POLICY REVIEW: The Canadian 
Advanced Technology Association recently wrote the Minister 
of Industry supporting BCE's call for a telecom policy 
review. Teresa Griffin-Muir, VP Regulatory Affairs at MTS 
Allstream, tells Telecom Update that her company, which is a 
member of CATA, "was not consulted on the letter sent to the 
Minister and does not support nor see the need for a telecom 
policy review."

MICROCELL REJECTS NEW TELUS OFFER: The management of 
Microcell Telecommunications has advised shareholders to 
reject Telus's revised offer to buy the company's shares. 
(See Telecom Update #439) It warns that the Competition 
Bureau has characterized Telus's plan as "very complex" and 
that such transactions "typically require substantially 
longer review periods" than others.

NORTEL OUTSOURCES MOST MANUFACTURING: Nortel Networks has 
agreed to sell most of its manufacturing operations to 
Flextronics, in a deal with about US$700 million. 2,500 
Nortel employees will move to the Singapore-based firm over a 
six-month period, beginning in November.

** In a separate announcement, Nortel said that it expects to 
   release revised financial statements in August. A 
   representative said that Nortel will try to recover any 
   bonus payments made to "individuals that have acted 
   improperly."

TELUS CONSUMER PRESIDENT LEAVES: Daniel Delaloye, Executive 
VP of Telus and President of its B.C and Alberta consumer 
business, left the company on June 23. No public announcement 
or explanation was offered. 

** Separately Telus announced the retirement of Jim Peters, 
   chief general counsel. His duties have been assumed by 
   government affairs EVP Janet Yale.

RETAILERS TO SELL PRIMUS VoIP SERVICE: High-tech retailers 
Best Buy and Future Shop have begun selling start-up kits for 
Primus's TalkBroadband Voice over IP local phone service at 
all 129 of their stores across Canada.

CRTC REJECTS 900 RESALE PLAN: CRTC Telecom Decision 2004-43 
rejects an application from First Media Group that asked the 
Commission to require carriers to offer the underlying 
network elements and services required for 900 service on an 
unbundled basis, to resellers.

** The Commission has instructed Bell and Telus to work with 
   FMG and other 900 content providers to review the accuracy 
   and timeliness of 900 billing, and to report back to the 
   CRTC in 90 days.

www.crtc.gc.ca/archive/ENG/Decisions/2004/dt2004-43.htm

DISPUTES SETTLED BEFORE HEARING STARTS: Two of the three 
disputes scheduled for a June 28 expedited CRTC hearing were 
settled "at the courtroom door." The Commission heard the 
remaining dispute, between EastLink and Aliant, and will 
release a decision this week. 

www.crtc.gc.ca/eng/process/2004/jun28.htm

** One of two disputes scheduled for a July 16 expedited 
hearing has been withdrawn. The hearing for the remaining 
issue, between Infolink and Bell Canada, has been postponed.

www.crtc.gc.ca/eng/process/2004/jul16.htm

FLOOR PRICE REPLIES FILED: The paper record is now complete 
in PN2003-10, in which the CRTC proposed to restrict 
incumbent telcos' ability to cut prices (see Telecom Update 
#412). The telcos oppose any new restrictions, but other 
comments are mixed: competitors support the proposed changes 
or stronger measures, while consumer and business customer 
groups oppose them.

** Interestingly, MTS Allstream sides with the competitors, 
not the incumbents.

www.crtc.gc.ca/PartVII/eng/2003/8663/c12_200318130.htm#2g
www.crtc.gc.ca/PartVII/eng/2003/8663/c12_200318130.htm#4g

ISPs ESCAPE MUSIC ROYALTY PAYMENTS: The Supreme Court has 
ruled unanimously that Internet Service Providers are not 
liable for copyright infringement when music and other 
material is transmitted across their networks. The Society of 
Composers, Authors and Music Publishers of Canada (SOCAN) had 
proposed to collect royalties from ISPs, as it does from 
broadcasters.

MORE TELEMARKETING SCAMMERS CONVICTED: Four Toronto firms 
have been fined a total of $100,000 for scams involving 
telephone sales of business directories, credit card 
supplies, and toner cartridges, following a Competition 
Bureau investigation. Six individuals associated with the 
companies received fines and sentences that include house 
arrest and community service.

CANARIE CHOOSES NEW OFFICERS: CANARIE has elected new 
officers and added new members to its Board of Directors.

** Chair: Ted Dodds, Associate Vice-President, Information 
Technology, UBC 

** Vice Chair: Lucille Pacey, Executive Director, Arts 
Umbrella

** Secretary-Treasurer: Gerald Brown, President, Association 
of Canadian Community Colleges 

** New Members of Board of Directors: Joseph Grech, Telus; 
Louise Proulx, McGill University; Louis Savoie, Bell Canada; 
Mark Whitmore, University of Manitoba

GLITCH CUTS ROGERS BLACKBERRY SERVICE: A server failure 
stopped delivery of e-mail to Blackberry users on the Rogers 
Wireless network from 8:30 a.m. to 11:00 a.m. last Wednesday. 
Rogers says no messages were lost.

RIM REPORTS STRONG RESULTS: Research In Motion reports first 
quarter net income of US$55 million compared with a loss of 
$8.2 million a year ago. Total revenue was $269.6 million, a 
158% jump from last year. The company added 270,000 
subscribers in the quarter, reaching 1,340,000 by May 29.

DELPHI NAMES NEW CFO: Toronto-based Delphi Solutions Corp., 
has appointed Patrick Walsh to its senior management team as 
Chief Financial Officer. Walsh has previously held senior 
positions with National Telephone, Call-Net, and CTG.

TELECOM CONFERENCE PROGRAM ANNOUNCED: The full educational 
program for Telemanagement Live, a national conference 
focusing on business telecommunications and networking, is 
available now. On-line registration will begin on July 7 -- 
registrations will be accepted on a strict first-come, first-
served basis.

** Telemanagement Live, organized by Angus Dortmans 
Associates and PW Ritchie & Associates, will be held October 
20-21 at the Metro Toronto Convention Centre.

www.telemanagementlive.com

DO FRAME AND ATM HAVE A FUTURE? Bell Canada wants to phase 
out Frame Relay and ATM-based services, and is pressing 
enterprise customers to agree to migration plans. In the 
July-August issue of Telemanagement, John Riddell discusses 
what's happening and why, and looks at alternatives for 
customers who don't want to change. Also in this issue:

** Should VoIP Be Regulated? 
** Planning High-Availability Networks
** Telecom Disaster Recovery Planning
** Why Has Telecom Acquisition Become So Complex?

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