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TELECOM UPDATE
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published weekly by Angus TeleManagement Group
http://www.angustel.ca
Number 560: December 21, 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:
** We're Taking a Holiday
** Cabinet Tells CRTC to Rely on Market Forces
Order Ignores Industry Committee Majority
** Telesat Sold to Loral, Pension Fund
** Ericsson Buys Edge-Router Maker
** CRTC Okays Withdrawal of Phone Service
** Police Raid Phone Fraud Boiler Rooms
** Consumers Appeal Deferral Account Ruling
** RIM Still Mired in Options Review
** Primus Expands Partner Program
** SaskTel Cuts LD Package Rates
** Gatineau Free-Calling Area to Expand in June
** CRTC Suspends Local Competition Proceedings
** Rogers Provides Wireless Call Restriction
** Siemens Sets Optical Speed Record
** Phonetime Takes Call Select Private
** Telus to Buy Back 7% of Shares
** Nortel Inks $2 Billion Deal With Verizon
WE'RE TAKING A HOLIDAY: Telecom Update is taking a winter break; our
next issue will be published Friday, January 5. We wish all readers a
joyous holiday season and a successful and rewarding New Year.
CABINET TELLS CRTC TO RELY ON MARKET FORCES: The federal Cabinet has
issued the policy direction to the CRTC that was first tabled in
Parliament last June by Industry Minister Bernier (see Telecom Update
#534), requiring the Commission to "rely on market forces to the maximum
extent feasible."
** Cabinet made one change to the order, a concession to
telecom competitors. In the CRTC's review of essential and
wholesale services (see Telecom Update #554), the
Commission is to take into account "technological and
competitive neutrality, the potential for incumbents to
exercise market power ... and the impediments faced by new
and existing carriers seeking to develop competing network
facilities."
http://xrl.us/PolicyDirection
ORDER IGNORES INDUSTRY COMMITTEE MAJORITY: On October 31, Parliament's
standing committee on Industry, Science and Technology, after hearing
submissions from telcos, cablecos, and other competitors, recommended
to Parliament that the policy direction to the CRTC not be issued
until the Committee had a chance to review the matter in more
detail. The four Conservative Party members on the committee
dissented.
** The preamble to the Policy Direction mentions the committee's
recommendation, but notes that the vote "was not unanimous" and
says "the Government has decided to move forward with issuing the
Policy Direction at this time."
http://xrl.us/IndustryCommittee
TELESAT SOLD TO LORAL, PENSION FUND: BCE has sold Telesat Canada for
$3.42 billion to a new company formed by PSP Investments, which
manages Canada's public service pension fund, and New York-based Loral
Space and Communications. Loral will have a 64% ownership and 33%
voting stake. Loral is contributing its own satellite business to the
new company, making Telesat the world's fourth-largest satellite
operator.
** The new Telesat will be headquartered in Ottawa and will
conduct all its research in Canada. Daniel Goldberg,
recently named Telesat CEO, remains in that post. (See
Telecom Update #546)
ERICSSON BUYS EDGE-ROUTER MAKER: Ericsson has agreed to buy
California-based Redback Networks for US$25 a share, a total of about
$1.9 billion. Redback designs and manufactures IP equipment for
carriers, including a line of multi-service edge routers that support
broadband, telephone, TV, and mobility services.
CRTC OKAYS WITHDRAWAL OF PHONE SERVICE: CRTC Telecom Order 2006-342
approves an application by Northwestel to stop providing telephone
service to Nanisivik, Nunavut. The telco said that demolition activity
associated with the shutdown of the Nanisivik mine and the nearby
community has repeatedly disrupted service, making it expensive and
dangerous to maintain service to the remaining nine customers in the
town.
** 23 residents of Nanisivik submitted a petition to the CRTC saying
that Northwestel's action would cut them off from the outside
world.
** Three commissioners dissented, saying that the ruling sets a
precedent by exempting an incumbent telco from its obligation to
provide service.
http://www.crtc.gc.ca/archive/ENG/Orders/2006/o2006-342.htm
POLICE RAID PHONE FRAUD BOILER ROOMS: Police and RCMP say they have
broken up a telemarketing fraud ring in Montreal, following a series
of raids on December 19. The organization, which allegedly targeted
seniors, is said to have grossed between $8 million and $13 million a
year since 2003.
** Also this week, Simon Grouin of Centre d'expedition direct
pleaded guilty to telemarketing fraud charges related to the sale
of supplies for banking machines. He was fined $75,000; he and the
company were placed under a 10-year prohibition order under the
Competition Act.
CONSUMERS APPEAL DEFERRAL ACCOUNT RULING: The Consumers Association of
Canada and the National Anti-Poverty Organization have now filed their
appeal to the Federal Court, asking it to rule that all of the money in
the telcos' deferral accounts should be returned to customers, not spent
on broadband deployment or improving telephone service to the disabled,
as ordered in CRTC Telecom Decision 2006-9. (See Telecom Update #548)
http://xrl.us/ConsumerAppeal
RIM STILL MIRED IN OPTIONS REVIEW: Research In Motion says its review of
stock option grants is taking longer than expected and will involve a
charge significantly higher than the previous estimate of $25 million to
$45 million. RIM says it will file restated results by March 3. (See
Telecom Update #554)
PRIMUS EXPANDS PARTNER PROGRAM: Primus Telecom Canada is offering
"enhanced solution sets" to its resellers, including managed Internet
access, Web development, website hosting, and server colocation.
SASKTEL CUTS LD PACKAGE RATES: Users of some SaskTel long distance
calling plans will pay lower rates effective January 25. The Anytime
North America plan will drop from $35 to $28 a month, and the Evenings
and Weekends Canada plan goes from $25 to $23. Both rates will be
lower for customers with several SaskTel services.
** Rates for the Business One Rate and Managed LD Solutions plans will
also be reduced -- actual rates will depend on the customer's total
usage.
GATINEAU FREE-CALLING AREA TO EXPAND IN JUNE: CRTC Telecom Order
2006-348 gives interim approval to Bell Canada's application to
eliminate long-distance charges within the amalgamated City of
Gatineau, Quebec. The change, to be effective June 18, will be
financed by three-year bill surcharges of 20 cents (residential lines)
and 18 cents (business lines).
http://www.crtc.gc.ca/archive/ENG/Orders/2006/o2006-348.htm
http://www.crtc.gc.ca/public/8740/2006/b2/701985.zip
CRTC SUSPENDS LOCAL COMPETITION PROCEEDINGS: In light of Cabinet's
proposed revision of the rules for local phone deregulation, which would
eliminate the CRTC's 25% market share loss test, modify competitor
Quality of Service requirements, and eliminate winback restrictions (see
Telecom Update #559), the Commission has suspended its own
reconsideration of these matters until the Cabinet order is finalized.
http://www.crtc.gc.ca/archive/ENG/Circulars/2006/ct2006-12.htm
ROGERS PROVIDES WIRELESS CALL RESTRICTION: Rogers' new Call Manager
plan enables parents to set usage rules restricting the times, dates,
area codes, and phone numbers available for calling on their
children's cellphones.
** Aliant introduced a similar plan last month. (See Telecom Update #557)
SIEMENS SETS OPTICAL SPEED RECORD: Siemens says it has achieved data
rates of 107 gigabits per second over a single channel in a 100 mile
long fibre-optic route in the U.S. -- about two-and-a-half times
faster than previous transmission performance. That's equivalent to
sending two fully loaded DVDs every second.
PHONETIME TAKES CALL SELECT PRIVATE: Mississauga-based Phonetime
International has acquired the 20% of Vancouver-based Call Select it
did not already own. Phonetime is a wholesaler of prepaid phone
cards. Call Select, founded two years ago, takes in $900,000 a month
selling 1+ long distance services to ethnic communities.
TELUS TO BUY BACK 7% OF SHARES: Telus plans to buy back up to 12
million common shares (6.7%) and 12 million non-voting shares (7.5%)
over the next 12 months.
NORTEL INKS $2 BILLION DEAL WITH VERIZON: Nortel has won a contract to
provide up to US$2 billion worth of broadband wireless to Verizon
Wireless over five years.
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John Riddell (jriddell@angustel.ca)