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TELECOM UPDATE
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published weekly by Angus TeleManagement Group
http://www.angustel.ca
Number 504: November 4, 2005
Publication of Telecom Update is made possible by generous
financial support from:
** AVAYA: www.avaya.ca/en/
** BELL CANADA: www.bell.ca
** CISCO SYSTEMS CANADA: www.cisco.com/ca/
** ERICSSON: www.ericsson.ca
** MITEL NETWORKS: www.mitel.com/
** NEC UNIFIED SOLUTIONS: www.necunifiedsolutions.com
** ROGERS TELECOM: www.rogers.com/solutions
** VONAGE CANADA: www.vonage.ca
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IN THIS ISSUE:
** CRTC Reports on State of Competition
** TWU Members Reject Telus Settlement
** Quebecor Wants VoIP Ruling Reviewed
** Bell Launches 2-Meg Wireless Data
** Business Sales Lead BCE Revenue Increase
** MTS Results Reflect Allstream Woes
** Videotron Revenue Up 13%
** Nortel Sales Up 22%
** Nortel Pays $11.5 Million for Zafirovski
** Virgin Mobile Comes to Saskatchewan
** Bell Sued Over Installation Delays
** New CEO at Expertech
** Colbanet Promises Cellular LD Savings
** Telus to Use Nokia DSL Gear
** Inukshuk Seeks Broadband Wireless Proposals
** Mike Larkin Joins Route1
** Seminar Examines Changes in Contact Centres
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CRTC REPORTS ON STATE OF COMPETITION: The CRTC issued its 2005 Telecom
Monitoring Report this week, providing statistics and analysis on the
status of competition and the deployment of broadband to the end of
2004. Some highlights:
** Total telecom revenue rose 4.7% to $33.3 billion. Long
distance revenue fell 6% even though minutes increased by
6%. Wireless revenues were up 17.6%.
** Private line revenues fell 10%, while data revenues grew
6.9%.
** 59% of Canadian households have Internet access; 46% have
broadband access.
** In 15 cities, the incumbent telcos have lost between 10%
and 25% of local business telephone lines. (Due to an
error in the CRTC's initial announcement, this was widely
and inaccurately reported as 10% to 25% of all telephone
lines.)
http://www.crtc.gc.ca/eng/publications/reports/PolicyMonitoring/2005/gic2005.pdf
TWU MEMBERS REJECT TELUS SETTLEMENT: Members of the Telecommunications
Workers Union rejected a proposed contract with Telus that had been
recommended by the union's executive. 9,027 members voted: 4,487
(49.7%) voted yes and 4,540 (50.3%) voted no.
** On Thursday, Telus rejected a TWU proposal to return to
the bargaining table. The TWU says it will ask the federal
government to appoint a special mediator to facilitate a
settlement.
QUEBECOR WANTS VoIP RULING REVIEWED: Quebecor has filed a Part VII
application asking the CRTC to review and vary Telecom Decision
2005-62, which allowed Bell to charge different rates for its Digital
Voice service in Ontario and Quebec. Quebecor says the CRTC based the
decision on the assumption that Digital Voice is a VoIP service, but
it is actually normal local phone service with bundled calling
features.
http://www.crtc.gc.ca/PartVII/eng/2005/8662/q15_200512443.htm
BELL LAUNCHES 2-MEG WIRELESS DATA: Bell Mobility now offers wireless
data communications based on EVDO (Evolution Data Optimized)
technology in the Toronto and Montreal areas. The technology promises
average download speeds of 400 to 700 Kbps, and a maximum of 2.4
Mbps. Bell is selling new EVDO-equipped phones made by Kyocera, RIM,
and Samsung.
** Aliant Mobility says it will begin testing EVDO in the
Halifax area later this month.
BUSINESS SALES LEAD BCE REVENUE INCREASE: BCE had third-quarter
revenue of $4.95 billion, up 3.6% from the same period last year. A
5.3% increase in sales to businesses was almost double the increase
for Bell Canada as a whole. BCE net income after one-time items was
$462 million, down 3.8%.
** Bell added a net 123,000 wireless and 106,000 high-speed
Internet subscribers.
** DBRS lowered BCE's credit rating, commenting that Bell's
"local market share is in decline."
MTS RESULTS REFLECT ALLSTREAM WOES: Manitoba Telecom third quarter
revenue rose 4.1% to $516 million, despite difficulties in its
Allstream division, where sales remained stalled at $280
million. Allstream's EBITDA of $44 million was down 26% from the same
period last year. MTS net income declined 12% to $45 million.
VIDEOTRON REVENUE UP 13%: Quebecor's Videotron division had third
quarter revenues of $250.8 million, 13.3% more than in the same period
a year ago. Revenue per user rose 11.7% Much of the gain came from
Videotron's phone service, which added 54,200 new customers.
NORTEL SALES UP 22%: Nortel Networks' third-quarter revenue of
US$2,665 million was 22% higher than in the same period last
year. Enterprise sales increased 16%. Gross margin of 38% was two
points higher than a year ago. The net loss was $105 million,
compared with $259 million last year. Nortel's cash balance of $3.0
billion was down 12%.
** For the first time in several years, Nortel filed its
financial results on time.
NORTEL PAYS $11.5 MILLION FOR ZAFIROVSKI: Nortel has agreed to pay
US$11.5 million to Motorola to settle a lawsuit aimed at preventing
former Motorola executive Mike Zafirovski from becoming Nortel's CEO.
VIRGIN MOBILE COMES TO SASKATCHEWAN: Virgin Mobile has begun offering
its prepaid wireless service in Saskatchewan: it is now available in
all ten provinces.
BELL SUED OVER INSTALLATION DELAYS: A Toronto lawyer has launched a
class-action lawsuit against Bell Canada over delays in installing
wireline phone service during and after the Entourage strike this
year, saying Bell should have warned its customers of the holdup.
NEW CEO AT EXPERTECH: Jacques Robichon, former VP of Wireless Network
Operations at Bell Canada, has been named President and CEO of
Expertech Network Installation Inc. Expertech, which is owned by Bell
and SNC-Lavalin, provides installation and maintenance services to
carriers.
COLBANET PROMISES CELLULAR LD SAVINGS: A new service from Montreal-
based ColbaNet allows customers to place cellular LD calls on
ColbaNet's network. The company says that usage rates for its
SpectraVoice Mobility offering are up to 80% less than the carriers'
wireless LD rates.
TELUS TO USE NOKIA DSL GEAR: Telus has contracted to use Nokia's D500
IP DSLAM, equipped with ADSL2+ technology, to expand its broadband
access network.
INUKSHUK SEEKS BROADBAND WIRELESS PROPOSALS: Inukshuk has issued a
Call for Proposals for projects related to the provision of wireless
broadband Internet access in remote communities, and for projects to
develop rich learning content, applications, or learning
environments. The deadlines for responses vary by region.
http://www.inukshuk.ca/anglais/fonds.html
MIKE LARKIN JOINS ROUTE1: Mike Larkin, who previously held VP Sales
positions at BCE Emergis and Bell Canada, has been named Sales VP at
Route1, a Toronto-based company that develops mobile computing
applications. He replaces Stephen Skinner, who "has left the Company
to pursue new endeavours."
SEMINAR EXAMINES CHANGES IN CONTACT CENTRES: During November, Henry
Dortmans, president of Angus Dortmans Associates, will discuss
impending changes in contact centre technology and management as the
keynote speaker at seminars organized by Telus in Ottawa, Toronto,
Winnipeg, Calgary, and Edmonton this month. For information:
http://promo.telus.com/tm/05/q3/cca/expert_series.html
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