TELECOM UPDATE
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published weekly by Angus TeleManagement Group
http://www.angustel.ca
Number 470: February 25, 2005
Publication of Telecom Update is made possible by generous
financial support from:
** ALLSTREAM: www.allstream.com
** 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/
** SPRINT CANADA: www.sprint.ca
** UTC CANADA: www.canada.utc.org/
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IN THIS ISSUE:
** Ottawa Announces Telecom Review
** Executive Shuffle at Bell
** ... And Two Executives Leave Telus
** Rogers & Second Cup Team Up for Wi-Fi
** SuperNet Delays Could Cost Bell $100 Million
** Chubb Sues to Cancel Nortel Insurance
** Bell to Re-Acquire Outsourced Techs
** Cogeco Announces VoIP Partners
** Rogers Picks Nortel
** Thomson Seeks to Buy Globemedia
** Utelcos Merge Sales Forces
** Call-Net Reports Solid Results
** Datacom Market Up 5%
** Telebec Files Dark Fibre Tariff
** CRTC Okays Access to U.S. Emergency Code
** Changing of the Guard at Wi-LAN
** Telecom Coalition Sets Two Gala Dinners
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OTTAWA ANNOUNCES TELECOM REVIEW: In this week's federal budget, the
federal government said it "intends to appoint a panel of eminent
Canadians to review Canada's telecommunications policy and regulatory
framework ... [and] make recommendations before the end of the year."
The Budget says Ottawa will also:
** Give the CRTC the power to impose fines.
** Ask the Commission to "move expeditiously to implement
wireless number portability."
** Ask the Task Force on Spam to report quickly (see Telecom
Update #433, 461).
EXECUTIVE SHUFFLE AT BELL: On Tuesday, Canada's largest telecom
company announced multiple changes in its top management team:
** Michael Neuman has resigned as President of Bell Mobility
and Bell Distribution Inc. No reason was given.
** Robert Odendaal, who joined Bell last year from European
satellite TV broadcaster BSkyB, is now CEO Bell Mobility
and Video Services.
** Gary Smith, who also came to Bell from BSkyB last year,
has been promoted from Senior VP to President of Bell
ExpressVu.
** Alek Krstajic, formerly Chief Marketing Officer of Bell's
Consumer Group, is now President of Bell Mobility.
** Kevin Crull, until recently a Senior VP Wireless at AT&T
in the U.S., has joined Bell as President, Consumer
Solutions.
** Ron Close, founder and former CEO of NetCom Canada, which
was acquired by MetroNet and then merged into AT&T Canada
in 1999, will head a new VoIP unit within Bell's consumer
group.
... AND TWO EXECUTIVES LEAVE TELUS: Two top executives are leaving
Telus, apparently as part of a cost-cutting program. EVP Corporate
Strategy Chris Carty has already left, and EVP Corporate Development
Mark Schnarr will leave soon, but will remain on the company's Board.
ROGERS & SECOND CUP TEAM UP FOR WI-FI: Rogers Wireless has begun
offering wireless Internet access in "select" Second Cup cafes across
Canada. Service is free until April; after that, 15 cents/minute will
be billed to the customer's Rogers Wireless account. Users who aren't
Rogers customers will be able to charge time to a credit card at
$9/hour or $15 for 24 hours.
SUPERNET DELAYS COULD COST BELL $100 MILLION: The Alberta government
has told Bell Canada to complete the SuperNet project by September 30
or risk losing its $100-million performance bond. The high-speed
network, which aims to link 4,200 civic and provincial buildings in
429 communities, was originally supposed to be finished by January.
** Bell and its subcontractor, Axia NetMedia, have agreed to
a completion and commissioning plan that they say will
meet the new deadline.
CHUBB SUES TO CANCEL NORTEL INSURANCE: Chubb Insurance Co. has asked
an Ontario court to rescind $40 million in insurance coverage for
legal costs of Nortel Networks directors and executives. The insurer
says Nortel made misrepresentations to securities regulators "with the
intent to deceive Chubb." Nortel says it will "vigorously pursue its
rights under the policies."
BELL TO RE-ACQUIRE OUTSOURCED TECHS: In 1996, Bell Canada spun off
much of its residential installation and repair operations into a
separate company, Entourage Technology Solutions Inc. Bell, which
currently owns 33% of Entourage, has now reached an agreement to buy
another 57% of it, then buy all shares and make it a wholly owned Bell
subsidiary.
COGECO ANNOUNCES VoIP PARTNERS: Cogeco Cable says its IP- based
residential telephone service, to be launched later this year, will
use Cisco technology, and will obtain connections to the public
switched telephone network and long distance from Telus.
ROGERS PICKS NORTEL: Rogers Cable says Nortel Networks is the primary
provider of softswitch technology to support the digital phone service
it plans to roll out this year. The value of the contract was not
revealed.
THOMSON SEEKS TO BUY GLOBEMEDIA: Published reports say that Woodbridge
Co., an investment company owned by Ken Thomson, has offered $1.5
billion to buy BCE's 68.5% share of Bell Globemedia, which owns the
Globe and Mail, the CTV network, and several cable TV channels. BCE
head Michael Sabia has said that the media group is not a strategic
holding, but has not yet shown any interest in selling it.
UTELCOS MERGE SALES FORCES: Hydro One Telecom, which provides
Ontario-wide data services, and Toronto Hydro Telecom have merged
their sales teams. The Toronto utility telco is managing the joint
sales force.
CALL-NET REPORTS SOLID RESULTS: Call-Net had $211 million in revenue
in Q4 2004, bringing its total for the year to $819 million, up 2%
from 2003. Only 48% of its revenue is now from long distance, with the
rest coming from local, data, and wireless.
** At year-end Call-Net had 310,800 residential local lines,
160,100 business lines, and 30,600 wireless lines. The
company says it will launch a high-speed (DSL) Internet
service in Q3.
DATACOM MARKET UP 5%: A new report from the Convergence Consulting
Group says the Canadian data and Internet access market grew by 5% in
2004 to $6.95 billion. See convergenceonline.com for more information.
TELEBEC FILES DARK FIBRE TARIFF: Complying with Telecom Order 2004-21
(see Telecom Update #464), Telebec has filed tariffs for inter- and
intra-exchange dark fibre. The rates are identical to Bell Canada's.
www.crtc.gc.ca/archive/ENG/Orders/2005/o2005-21.htm
www.crtc.gc.ca/8740/eng/2005/T78.htm#200501545
CRTC OKAYS ACCESS TO U.S. EMERGENCY CODE: In the United States, Area
Code 710 is used for federal government emergency services, but it
cannot be dialed from Canada. CRTC Telecom Decision 2005-7 requires
Canadian carriers to provide access to 710, and to route 710-calls as
toll-free calls.
www.crtc.gc.ca/archive/ENG/Decisions/2005/dt2005-7.htm
CHANGING OF THE GUARD AT WI-LAN: Calgary-based Wi-LAN, a Wi-Max
equipment developer, has named Bill Dunbar as President and CEO,
replaying Sayed-Amr El-Hamamsy. Dunbar was formerly CEO of Northwestel
and WIC Connexus. Co-Founder Hatim Zaghloul continues as Chairman, but
now without executive responsibility.
TELECOM COALITION SETS TWO GALA DINNERS: The Coalition for Competitive
Telecommunications, representing some 12,500 Canadian businesses, will
hold networking and fundraising events in conjunction with Canada's
two leading telecom conferences this year. The gala dinners and
receptions are scheduled for:
** May 30, during the Canadian Telecom Summit, the principal
event for telecom service and equipment providers.
(www.telecomsummit.com)
** October 18, during Telemanagement Live, the premier
conference on business telecom and networking.
(www.telemanagementlive.com)
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