TELECOM Digest OnLine - Sorted: Telecom Update Canada Issue #516

Telecom Update Canada Issue #516

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Fri, 10 Feb 2006 22:23:27 -0600

a.. Rogers Projects Cable Phone Growth
b.. Nortel to Pay $2.5 Billion to Resolve Suits
c.. RIM Says Workaround Is Ready
d.. Shaw and Rogers Deny Buyout Report
e.. ISPs Oppose Persona Third-Party Tariff
f.. BC Startup Connects Skype to Cellphones
g.. CRTC Reaffirms CDNS Ruling
h.. Rogers Says Bell Ads 'Malicious'
i.. Will That Be Cash or Cellphone?
j.. Wireless Number Portability Issues Addressed
k.. Vonage Plans IPO, Replaces CEO
l.. Minacs Owner Wants New Board
m.. BabyTel Offers Small-Business VoIP
n.. Cisco Sales Rise 9.3%
o.. Dortmans Telecom Columns Offered by Email

it expects to add a net 200,000 to 250,000 local phone subscribers in
2006, most of them cable phone users. Rogers is also moving many of
its circuit-switched service customers (inherited from Call-Net) to
cable telephony.

a.. Net wireline telephony subscriber additions for 2005:
144,000, of which cable phones account for 47,900. Net wireless
additions: 619,000. Average wireless revenue per subscriber rose 7.1%
to $53.61/month; subscriber disconnects were 2.04%/month.

b.. Rogers Communications' fourth quarter revenue of $2.12
billion was 35% higher than a year ago, in part reflecting its
purchase of Call-Net Enterprises (see Telecom Update #488). Operating
profit increased 14% to $513 million; the net loss was $66.7 million,
compared to $29.1 million a year ago. NORTEL TO PAY $2.5 BILLION TO
RESOLVE SUITS: Nortel Networks has agreed to distribute US$575 in cash
and 628 million shares to settle investor claims related to accounting
irregularities. Two Canadian pension funds were lead plaintiffs in the
suits against Nortel, which expects to take a charge of $2.47 billion.

RIM SAYS WORKAROUND IS READY: Research In Motion says it has
developed and tested workaround software that could be activated if a
U.S. court orders its current service suspended as proposed by NTP
Inc. RIM says the new software does not infringe on NTP's patent
claims; NTP predicts the workaround will slow BlackBerry service.

Post reported that Shaw Communications had rejected a $9.3 billion
takeover bid from Rogers Communications. Both Rogers and Shaw
immediately denied that any such offer had been made. Ted Rogers
called the story "untrue and, in my view, irresponsible reporting."

which has 2.9 million cable TV customers in seven provinces, has asked
the CRTC to approve a tariff for Third Party Internet Access based on
one already approved for Rogers.

a.. Two Sudbury-based Internet Services Providers, Vianet and
Unitz, say the tariff will drastically change the third-party service
they have received from Persona since 1999, and that approval of the
tariff "will result in thousands of residential customers and
hundreds of business customers losing their Internet connectivity."

b.. Among other things, the ISPs object to the elimination of
fixed IP addresses, and to Persona's decision to stop billing
customers on the ISPs' behalf.

Richmond, BC, has introduced a service that lets Skype users talk to
each other on cellphones. Mobile Internet Phone Service for Skype is
free during beta testing; customers must have a compatible phone with
a data plan, a SkypeOut account, and a Windows PC with broadband
Internet access.

CRTC REAFFIRMS CDNS RULING: The CRTC says it was not discriminatory to
compensate incumbent telcos for lost revenues when it ordered them to
provide reduced rates for Competitor Digital Network Services (see
Telecom Update #467). Quebecor, on behalf of its subsidiary Vidéotron,
had argued that competing carriers should also be compensated for
revenue losses, but the Commission says the telcos' price cap rules
justify different treatment.

ROGERS SAYS BELL ADS "MALICIOUS": Rogers Communications is suing BCE
over TV ads that Rogers says are "high-handed, oppressive, and
malicious." Rogers wants Bell Canada to stop using Rogers' trademarks
in its wireless service advertising and pay damages. Bell has denied
any wrongdoing.

WILL THAT BE CASH OR CELLPHONE? Motorola this week unveiled M-Wallet,
a system that will allow cellphones to replace credit and debit cards.
Motorola, which wants wireless carriers to offer the service to their
customers, hopes it will be rolled out commercially in the U.S. this

Notice 2006-3 invites submissions on a number of technical and
business issues that must be resolved in order to implement wireless
number portability next year. (See Telecom Update #511)

VONAGE PLANS IPO, REPLACES CEO: Vonage, which lost US$190 million in
the first nine months of 2005, is planning to go public. Initial
Public Offering documents filed this week with the SEC say the company
hopes to raise US$250 million. No date has been announced, nor has the
offering price.

a.. Vonage also announced the appointment of Mike Snyder, former
president of ADT Security Services, as Chief Executive
Officer. Founder Jeffrey Citron will now be Chairman and Chief
Strategy Officer.

MINACS OWNER WANTS NEW BOARD: Elaine Minacs, founder and 46.5% owner
of Minacs Worldwide, has called for a special shareholders meeting to
replace the company's board and explore alternatives including sale of
the call centre service bureau. She disagrees with the policies of
recently appointed CEO Bruce Simmonds, who announced a restructuring
plan last week. (See Telecom Update #506)

a.. The Minacs Worldwide Board says it will establish a special
committee to deal with issues related to the call for a shareholders

BABYTEL OFFERS SMALL-BUSINESS VoIP: BabyTel, a Montreal-based Internet
phone company, has introduced a business service that includes
unlimited North American calling and other features for
$49.95/month. (See Telecom Update #478)

CISCO SALES RISE 9.3%: Cisco Systems reports sales of US$6.63 billion
for the three months ended January 28, 9.3% higher than the same
period a year ago. Accounting changes caused net income to drop
slightly to $1.4 billion. Cisco ended the quarter with $15 billion in
cash or cash equivalents.

Dortmans has been writing his popular monthly column on business
telecommunications for more than ten years. Last month he began
distributing "On the Line" columns by email. Some reader responses to
the first email edition:

a.. "Gave me a very practical approach to developing a road map/plan
for our department."

b.. "Right on the money. Even if I have that understanding in my
consciousness, you worded it exquisitely."

c.. "Did you just read my mind? This eColumn will come in extremely
handy at our next Customer Service Committee Meeting."

d.. Subscriptions to "On the Line" are free. Add your name to the
distribution list.

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