Subject: [NEXTEL-1] Telecom Update #442, August 3, 2004

From: [email-masked]
Date: Tue, 03 Aug 2004 10:29:07 -0400

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TELECOM UPDATE 
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IN THIS ISSUE: 

** Nortel Needs More Cost Cutting
** Videotron Promises VoIP by Mid-2005
** Bell Offers Secure IP Net to Small Business 
** Sirois Replaced as TIW Chair
** CRTC Outlines VoIP Hearing Process
** Telus Union Wins a Round
** CRTC Okays Bell IP Centrex Tariff
** Local Interconnection Simplified
** Wireless Internet Expands in Rural N.B.
** Persona Ups Internet Speed
** CRTC Deregulates SaskTel EMI Services
** Phone Prefix in 819 to Be Reclaimed
** Rutherford to Head Cygnal Network Group
** Call-Net Sales Rise
** Strike Cuts Into Aliant Profits
** Avaya Revenues, Profits Rise
** Keeping Your Network Alive

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

NORTEL NEEDS MORE COST CUTTING: Nortel Networks CEO Bill 
Owens says he expects the company's revenues to grow faster 
than the market this year, but that its costs remain too 
high. He says he will provide information on "the actions 
that we will be taking to put into place an improved cost 
structure" by mid-August.

** There are widespread rumours that Nortel will move its 
   headquarters from Brampton to Ottawa this year.

VIDEOTRON PROMISES VoIP BY MID-2005: Videotron Ltee and 
Videotron Telecom Ltd say they will launch VoIP-based 
residential telephone service in Quebec during the first half 
of 2005. The company, which expects to spend $80 million to 
roll the service out over the next four years, plans to 
bundle phone service with digital TV and high-speed Internet.

BELL OFFERS SECURE IP NET TO SMALL BUSINESS: Bell Canada 
today announced ProConnect, a managed private IP network 
service for connecting the offices of small and medium 
businesses. A basic package starts at $150/month, including 
equipment, connectivity and management. 

SIROIS REPLACED AS TIW CHAIR: Charles Sirois, founder of 
Telesystem International Wireless, has resigned as Chairman 
to "pursue other business interests." CEO Bruno Ducharme 
assumes the post of TIW Chairman; Al Tolstoy becomes 
President and COO. 

** TIW reports second quarter revenue of $286.5 million and 
   net income of $13.9 million.

CRTC OUTLINES VoIP HEARING PROCESS: The CRTC has issued 
direction on the process to be followed at the VoIP public 
hearing September 21-23, along with a list of parties who 
will submit oral views, in order of their appearance. The 
list will be posted on the CRTC site this week.

www.crtc.gc.ca/eng/process/2004/sep21_t.htm

TELUS UNION WINS A ROUND: The Federal Court of Appeal has 
denied Telus's application for a stay of the order that made 
the Telecommunications Workers Union the bargaining agent for 
Telus Mobility employees in Ontario and Quebec. (See Telecom 
Update #434, 439)

http://decisions.fca-caf.gc.ca/fca/2004/2004fca268.shtml

CRTC OKAYS BELL IP CENTREX TARIFF: CRTC Telecom Order 2004-
256 approves Bell Canada's tariff for Managed Internet 
Protocol Telephony (MIPT) service. Centrex customers will 
receive volume discounts based on the total number of their 
Centrex lines and MIPT ports in service.

** The CRTC turned down the telco's proposal to waive 
   MIPT installation fees until the end of 2004, because 
   such promotions are being reviewed under Public Notice 
   2003-1-1.

www.crtc.gc.ca/archive/ENG/Orders/2004/o2004-256.htm

LOCAL INTERCONNECTION SIMPLIFIED: In mid-July, the CRTC ruled 
that local competitors no longer have to interconnect with 
incumbents' networks in every exchange, but can do so at a 
single point within larger "local interconnection regions." 
Competitors have long argued that such a change would 
significantly reduce their costs.

www.crtc.gc.ca/archive/ENG/Decisions/2004/dt2004-46.htm

WIRELESS INTERNET EXPANDS IN RURAL N.B.: Wireless Internet 
provider Aernet Wireless says it now offers 1 Mbps service in 
23 rural communities across New Brunswick.

www.aernet.ca 

PERSONA UPS INTERNET SPEED: Persona Communications, which 
serves 220,000 cable subscribers in seven provinces, has 
increased Internet download speeds for most Ontario customers 
to 5 Mbps.

** A deal for Persona's sale to a group of investors headed 
   by TD and CIBC has received CRTC approval. (See Telecom 
   Update #418)

CRTC DEREGULATES SASKTEL EMI SERVICES: The CRTC has forborne 
from regulating SaskTel's electronic messaging and 
information services (providing transmission, storage, 
and retrieval of text communications), subject to some 
conditions.

www.crtc.gc.ca/archive/ENG/Decisions/2004/dt2004-51.htm

PHONE PREFIX IN 819 TO BE RECLAIMED: CRTC Telecom Decision 
2004-52 is too complex to be summarized here, but it should 
be required reading for anyone who suggests: (a) that 
managing phone numbers is easy; or (b) that the telecom 
industry would run smoothly if we just got rid of interfering 
regulators and subcommittees.

www.crtc.gc.ca/archive/ENG/Decisions/2004/dt2004-52.htm

RUTHERFORD TO HEAD CYGNAL NETWORK GROUP: Todd Rutherford, 
head of marketing for Cygnal's Network Solutions Group, has 
been named the division's President. He earlier served with 
Norstan, Lucent, and White Radio. 

CALL-NET SALES RISE: Call-Net sales, which had been flat for 
two quarters, rose in the second quarter to $200.8 million, 
4% higher than a year ago. Call-Net's loss for the quarter 
was $33.1 million, $6.4 million of which was due to shifts in 
foreign exchange rates. Call-Net ended the quarter with $27.3 
in cash or cash equivalents.

STRIKE CUTS INTO ALIANT PROFITS: Aliant reports second 
quarter revenues of $526 million and net income of $50.1 
million, down 18.2% from the same period last year. The telco 
says costs linked to the strike of 4,300 employees, which 
began April 23, reduced profits by $13.9 million. 

AVAYA REVENUES, PROFITS RISE: Avaya had April-June revenues 
of US$1,016 million, a 9.4% increase from the same period a 
year ago. Income from continuing operations was $58 million, 
compared to a $3 million loss a year ago. Net income 
increased to $61 million from $8 million. 

KEEPING YOUR NETWORK ALIVE: The July-August issue of 
Telemanagement features an in-depth report for enterprise 
network managers on "defining, measuring, and improving 
availability in your network." It's one of three reports on 
network survival in 2004: the others look at planning for 
telecom disaster recovery, and the future of networks based 
on Frame Relay or ATM.

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