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TELECOM UPDATE
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published weekly by Angus TeleManagement Group
http://www.angustel.ca
Number 554: November 10, 2006
Publication of Telecom Update is made possible by generous
financial support from:
** AVAYA: www.avaya.ca/
** BELL CANADA: www.bell.ca/home/Home_Business.page
** CISCO SYSTEMS CANADA: www.cisco.com/ca/
** ERICSSON: www.ericsson.ca
** MICROSOFT CANADA: www.microsoft.ca/communications/
** NEC UNIFIED SOLUTIONS: www.necunifiedsolutions.com
** ROGERS TELECOM: www.rogers.com/solutions
** SHAW BUSINESS SOLUTIONS: www.shawbusinesssolutions.ca
** VONAGE CANADA: www.vonage.ca
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IN THIS ISSUE:
** Entwistle: No Conversion Without Exemption
** TWU President Reinstated by CLC
** Newfoundland to Fund Fibre Link
** CRTC to Review Essential & Wholesale Services
** Competition Bureau Proposes Telecom Approach
** Videotron Bundles Cable Phones and Wireless
** Dell to Double Ottawa Call Centre
** OSC Investigates RIM Stock Options
** MTS Doubles the Speed of Light
** Most Telecom Providers to Pay CRTC Fees
** Winback Prohibition Remains at Three Months
** Europeans Want Roaming Fees Controlled
** Nortel Ethics Officer Resigns
** 68% Think Bundles Favour Suppliers
** MTS Revenue Down 6%
** Videotron Sales, Operating Income Soar
** Nortel Sales Up 17%, Loss Reduced
** Cisco Profit Up 25%
ENTWISTLE -- NO CONVERSION WITHOUT EXEMPTION: Telus President/CEO
Darren Entwistle told reporters this week that the company will not
proceed with plans to become an income trust unless Ottawa gives it
the same exemption from taxes that has been promised for existing
trusts. Finance Minister Jim Flaherty has said repeatedly that the
exemption applies only to trusts that were already trading on October
31, which excludes Telus. (See Telecom Update #553)
TWU PRESIDENT REINSTATED BY CLC: An ombudsperson appointed by the
Canadian Labour Congress has ruled that the Telecommunications Workers
Union violated its own constitution when it removed President Bruce
Bell from office in August (see Telecom Update #541). His ruling
instructs the TWU to reinstate Bell and pay his back salary.
NEWFOUNDLAND TO FUND FIBRE LINK: The Newfoundland and Labrador
government has agreed to pay $15 million to help fund a new fibre
optic link to Nova Scotia, planned by Rogers Communications,
Allstream, and Persona Communications. Total cost of the project is
estimated at $82 million. (See Telecom Update #552)
CRTC TO REVIEW ESSENTIAL & WHOLESALE SERVICES: CRTC Telecom Public
Notice 2006-14 opens a proceeding to consider redefining "essential
services," and to review the classifications and pricing principles
for all wholesale services provided by telcos, cablecos, and CLECs to
each other. To participate, notify the Commission by January 2, 2007.
** The proceeding will include an oral hearing in October, 2007.
http://www.crtc.gc.ca/archive/ENG/Notices/2006/pt2006-14.htm
COMPETITION BUREAU PROPOSES TELECOM APPROACH: The Competition Bureau
has outlined the approach it proposes to use in reviewing complaints
of anti-competitive behaviour in deregulated telecommunications
markets. The Bureau invites comments on its draft bulletin by
December 29, 2006.
http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=3D2195&lg
VIDEOTRON BUNDLES CABLE PHONES AND WIRELESS: Videotron's new Duophone
package provides cable telephone service and wireless service
including 300 anytime minutes, for $49.95/month. The package includes
unlimited local calls to other users of Videotron wireless service,
and unlimited LD in Quebec between users of Videotron cable phone
service.
DELL TO DOUBLE OTTAWA CALL CENTRE: Dell Inc. says that over the next
few years it will "nearly double" the size of its Ottawa Customer
Contact Centre, which supports customers in the U.S. and Canada. The
Centre currently employs about 1,200 people; a new three-story
facility is scheduled for completion in September 2007.
OSC INVESTIGATES RIM STOCK OPTIONS: The Ontario Securities Commission
says it is reviewing Research In Motion's practice of awarding stock
options. The investigation is separate from a previously announced
internal review by RIM. (See Telecom Update #548)
** 66 RIM executives and employees are currently banned from trading
the company's stock, because the company has not yet filed its most
recent quarterly results.
MTS DOUBLES THE SPEED OF LIGHT: Einstein said it wasn't possible, but
... Manitoba Tel has doubled the download speed for its $26.95/month
High Speed Internet Light service to 256 Kbps. All existing customers
are being upgraded.
MOST TELECOM PROVIDERS TO PAY CRTC FEES: The CRTC believes that its
operating costs should be paid by all telecommunications service
providers with more than $10 million in Canadian telecom revenues, not
only by carriers that file tariffs, as is now the case. The change
will require Treasury Board approval and must be published in the
Canada Gazette for public comment.
http://www.crtc.gc.ca/archive/ENG/Decisions/2006/dt2006-71.htm
WINBACK PROHIBITION REMAINS AT THREE MONTHS: CRTC Telecom Decision
2006-72 denies Primus's application to require incumbent telcos to
wait 12 months before attempting to win back local phone customers
from competitors, rather than three months as set in April 2006. (See
Telecom Update #533)
http://www.crtc.gc.ca/archive/ENG/Decisions/2006/dt2006-72.htm
EUROPEANS WANT ROAMING FEES CONTROLLED: A survey conducted for the
European Commission finds that high roaming charges are the main
reason why most Europeans limit their use of mobile phones when
traveling outside of their home countries. 70% of respondents want the
European Union to implement regulations to ensure "that prices for
making and receiving calls on mobile phones when traveling in other EU
countries are not a lot higher than those at home."
** The EC's website says that it costs carriers less than 20
cents/minute to support roaming, but consumers are charged
an average of 1.15 euros/minute, and up to 3.5
euros/minute in some cases.
http://tinyurl.com/y7gncl
http://tinyurl.com/yxsspu
NORTEL ETHICS OFFICER RESIGNS: Nortel Chief Ethics and Compliance
Officer Susan Shepard, appointed in January 2005, has resigned to
"pursue other interests." (See Telecom Update #464)
68% THINK BUNDLES FAVOUR SUPPLIERS: According to a survey conducted by
Decima Research on behalf of Vonage Canada, 68% of Canadians believe
that bundled service packages combining Internet, home phone, mobile,
and TV benefit the service providers more than consumers. 66% said
that bundles force them to pay for services they don't want or need.
MTS REVENUE DOWN 6%: MTS Allstream reports third quarter revenue of
$477.9 million, 5.9% less than a year ago. EBITDA edged up 1.1%; net
income dropped 10% to $40.5 million. Enterprise sales were unchanged
from the previous quarter. Revenue from local service declined 9.4%;
from long distance, 15.9%.
VIDEOTRON SALES, OPERATING INCOME SOAR: Quebecor says that its cable
operations brought in third quarter revenue of $331 million, 22.6%
more than last year. Operating income rose 30.4%. Videotron added
60,900 phone lines, about the same as in each of the four previous
quarters, to reach a total of 344,000.
NORTEL SALES UP 17%, LOSS REDUCED: Nortel Networks reports third
quarter revenue of US$2.96 billion, 17.5% higher than a year
ago. Enterprise sales rose 14% to $609 million. Gross margin of 38%
was down from 39% a year ago. The net loss was reduced to $99 million
from $136 million. CEO Mike Zafirovski said the company "should and
will be moving faster" to achieve "profitability improvements."
CISCO PROFIT UP 25%: Cisco Systems reports net sales of US$8.2 billion
for the quarter ended October 28, a 24.9% increase from the same
period last year. Scientific Atlanta, which Cisco acquired this year,
accounted for a third of the gain. Net income rose 27.5% to $1.6
billion.
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The information and data included has been obtained from
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TeleManagement makes no warranties or representations
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Opinions expressed are based on interpretation of available
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John Riddell (jriddell@angustel.ca)