published weekly by Angus TeleManagement Group
Number 539: July 28, 2006
Publication of Telecom Update is made possible by generous
financial support from:
** AVAYA: www.avaya.ca/
** BELL CANADA: www.bell.ca
** CISCO SYSTEMS CANADA: www.cisco.com/ca/
** ERICSSON: www.ericsson.ca
** MICROSOFT CANADA: www.microsoft.com/canada/telecom/
** MITEL NETWORKS: www.mitel.com/
** NEC UNIFIED SOLUTIONS: www.necunifiedsolutions.com
** ROGERS TELECOM: www.rogers.com/solutions
** VONAGE CANADA: www.vonage.ca
IN THIS ISSUE:
** CRTC Issues 2005 Telecom Monitoring Report
Wireless Tops the Charts
Little Growth for Local Service
51% of Homes Have High-Speed Internet
** MTS, Rogers Settle LD Dispute
** Avaya Profits Down 77%; CEO Resigns
** Nortel Changes Wi-Max, Converged Core Management
** Top Nfld Court Upholds Cell Ban
** Former Director Sues Minacs
** 5-1-1 Approved for Weather & Travel Info
** Internet Registrar Launches Privacy Review
** SaskTel, 2Wire Expand Broadband Partnership
** Internap to Add Toronto Hub
** MTS Results Dip Into Red
** Aliant Records Sales, Profit Gains
** Lucent Sales Continue to Slide
CRTC ISSUES 2005 TELECOM MONITORING REPORT: The CRTC's annual report on
telecom competition and broadband services says that telecom service
revenues grew 3.5% in 2005, to $34.5 billion. Most of the growth was in
wireless and high-speed Internet.
** Competitors took in 35% of all wireless and wireline
telecom revenues. 11% went to incumbent telcos operating
outside of their home territories, 19% to facilities-based
competitors, and 5% to resellers.
** 98.9% of Canadian households receive some form of
telephone service; 4.8% of households use only wireless.
** Long distance traffic grew 10%, but LD revenues fell by
8.6% to $5 billion. The average retail price is now 7.8
cents per minute.
WIRELESS TOPS THE CHARTS: Wireless service is now the largest and
fastest-growing segment: it grew 16% in 2005 and generated 32% of
telecom service revenues ($11 billion). There were 17 million wireless
subscribers at the end of December, 2 million more than in 2004.
LITTLE GROWTH FOR LOCAL SERVICE: Local and access service brought in
$9.8 billion, 28% of the industry's revenues. Revenues and lines both
grew only slightly in 2005.
** The incumbent telcos' share of local revenue fell to 92%,
and their share of local lines fell to 90%.
** Competitors have more than 10% of residential lines in 11
markets, and more than 10% of business lines in 31
markets. The most competitive residential market is
Halifax, where competitors have 35% of lines. In Edmonton,
Calgary, Vancouver, Barrie and Toronto, competitors have
over 20% of business lines.
51% OF HOMES HAVE HIGH-SPEED INTERNET: Internet revenues passed $4.5
billion in 2005. Eight million households now have Internet
access. 51% of households subscribe to a high-speed Internet service,
and 13% use dialup.
** Broadband Internet service is available to 92% of all
Canadian households, but to only 74% in rural areas.
Canada is first among the G-8 countries in broadband
availability, and eighth among OECD countries in Internet
subscriptions per 100 inhabitants.
** About 2,000 Canadian communities will still have no access
to broadband at the end of 2007.
MTS, ROGERS SETTLE LD DISPUTE: In October 2005, MTS Allstream went to
court to prevent Rogers from shifting long distance traffic from
Allstream to Call-Net, which Rogers had acquired (see Telecom Update
#502). The two carriers have now agreed on a revised LD contract,
expiring in December, under which MTS will continue to provide Web
hosting and data services.
AVAYA PROFITS DOWN 77%; CEO RESIGNS: Avaya's sales for the quarter ended
June 30 were 5% higher than the same period a year ago, but net income
dropped to US$44 million from $194 million. Product sales rose 12%, but
rental and managed-services revenue declined 9%.
** Don Peterson has resigned as CEO, the post he has held
since Avaya was spun off from Lucent in 2000. He will
remain as Chairman of the Board until September 30. Avaya
veteran Lou D'Ambrosio has been named President and CEO,
and former senior VP Michael Thurk is now COO.
NORTEL CHANGES WI-MAX, CONVERGED CORE MANAGEMENT: Nortel seems to be
reorganizing the top management of two of its three strategic focus
areas. Mark Whitton, VP/GM for WiMax and Wireless Mesh Networks, has
left the company, and Alan Stoddard, VP/GM for Converged Core, has
TOP NFLD COURT UPHOLDS CELL BAN: The Supreme Court of Newfoundland an
Labrador has reinstated the conviction of a man charged with using a
handheld cellphone while driving. A lower court had thrown out the
2003 law on the grounds that the word "use" was ambiguous.
FORMER DIRECTOR SUES MINACS: Call Centre operator Minacs Worldwide says
that John Simmonds has filed suit against the company, the estate of
Elaine Minacs, and the company's directors. No details on the action
** John Simmonds was a member of the Minacs Board from June
2005 to February 2006, when he was removed as a result of
what the company called "certain deficiencies" in the
process by which he was appointed.
5-1-1 APPROVED FOR WEATHER & TRAVEL INFO: CRTC Telecom Decision
2006-44 assigns 5-1-1 as a three-digit telephone number for free
delivery of weather and travel information to the public. (See Telecom
** The Commission denied a competing application to use 5-1-1
for crisis intervention and suicide prevention, saying
those services could be provided through collaboration
with 2-1-1 centres or through a national 800 number.
INTERNET REGISTRAR LAUNCHES PRIVACY REVIEW: The Canadian Internet
Registration Authority is asking for public input on procedures for
Information about the policy, and an online questionnaire, has been
posted at www.cira.ca/en/Whois/whois_intro.html.
** Nominations are now open for the CIRA Board of
Directors. See the online nomination form at
SASKTEL, 2WIRE EXPAND BROADBAND PARTNERSHIP: SaskTel has chosen
California-based 2Wire as its exclusive provider of connectivity and
home networking equipment to the telco's broadband
subscribers. SaskTel already uses 2Wire ADSL gateways.
INTERNAP TO ADD TORONTO HUB: Internap Network Services Corporation
says it will implement its first Canadian network access point in
Toronto by the end of this year. The Atlanta-based company promises
corporate clients 100% network availability on the public Internet,
less than 45 milliseconds latency, and less than 0.3% packet.
MTS RESULTS DIP INTO RED: Manitoba Telecom reports a second quarter
loss of $1.2 million, compared to a $111.5 million profit for the same
period a year ago. Revenues were flat at $500 million: an 18% decline
in long distance sales was offset by growth in local and wireless
business. EBITDA of the enterprise services division declined 4.3%;
overall EBITDA was unchanged.
** Because of losses brought forward from the former
Allstream, MTS expects to pay no cash taxes until 2014.
ALIANT RECORDS SALES, PROFIT GAINS: The final quarterly results of
Aliant, now part of the Bell Aliant Regional Communications Inc, show
a 3.7% year-over-year gain in operating revenue, to $534
million. Second quarter net income increased 6.9%, to $53
million. Internet and wireless revenues rose by 20% and 15%,
LUCENT SALES CONTINUE TO SLIDE: Sales by Lucent Technologies for the
quarter ended June 30 were down 12% on the year and 4% on the quarter
-- the third successive quarterly decline. Net income was $79 million,
79% less than a year ago.
** Lucent's pending merger with Alcatel has been approved by
European Union regulators and is expected to close by
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