NL Update

Foreign ownership changes ‘not highest priority’: TobinIndustry minister Brian Tobin says the government is committed to reviewing foreign ownership limits in the telecom sector, but does not expect it to be a major issue. "While we want to welcome foreign direct investment everywhere we can, we should also take a measure of pride and have some appreciation for the tremendous impact and benefit to Canada of having large corporate offices right here in our own country," he told Network Letter today following a speech in Ottawa to private broadcasters. Asked about the timing of such a review, he replied, "Frankly, it’s not of the highest priority, given the other matters that are on the agenda. But certainly within the next year."The minister hedged when asked about the government’s broadband initiative. "My belief is that we can proceed and will proceed with broadband as well. Now whether we proceed at the same pace or timeframe remains to be seen." Tobin would not discuss accounts he does not have full Cabinet support for the broadband rollout. Sources have told Decima Publishing that the reported $1 billion allotment for the bandwidth project has been approved by the economic committee of Cabinet only and that powerful ministers around the full Cabinet table are opposed to the measure – at least at this time. More reorganization for 360networksFour more subsidiaries of 360networks Inc. have filed for protection under the Companies’ Creditors Arrangement Act. The divisions are 360atlantic (Canada) Inc., 360atlantic (USA) Inc., 360atlantic sales (USA) Inc., and Threesixty atlantic (Barbados) Inc. More details. CRTC roundup: contribution, R&V decision, and co-location The CRTC has turned down a review and vary application by Rogers Wireless Inc. to allow sales commission expenses to be deducted from the contribution regime (Order CRTC 2001-778). The commission is changing the provisions of La Compagnie de Telephone de Warwick’s CAT (Order CRTC 2001-779) and ruled on general relief for the co-location regime (Order CRTC 2001-780). More details: Order CRTC 2001-778 Order CRTc 2001-779 Order CRTC 2001-780 Telesat offers $100 million in notesTelesat Canada is filing a prospectus for $100 million in seven-year notes. The issue will be sold by a syndicate made up of CIBC World Markets, National Bank Financial, BMO Nesbitt Burns and RBC Dominion Securities. More details. Telecom firms release quarterly resultsSeveral major telecommunications companies issued their most recent financial results last week. AT&T Canada will release its figures later today. The following is a summary of key results: Cogeco pulls out of IP telephonyCableco Cogeco Inc. is writing off a $30.5 million investment in IP telephony. The firm began rolling out its network two years ago. More details. Aliant pares work forceThe regional telco is slashing its workforce by 140 employees immediately; ultimately 800 jobs will disappear. The company blames the new contribution mechanism for contributing to a negative EBITDA of $66 million. The union representing the fired workers is less than happy about the announcement. More details: Aliant Telecom reduces workforce Aliant Achieves Strong Performance in Third Quarter and Announces Strategy to Position for Further Growth Abitibi profits soar as workers fight for their jobs BCE barely creating excitementConglomerate BCE Inc. issued its Q3 numbers, which show Bell Canada’s baseline earnings down $8 million from Q3 2000. One commentator wonders if the accountants aren’t pulling some wires when releasing the figures. More details: BCE announces third quarter results BCE's creative accounting distorts extent of losses MTS revenues growManitoba Telecom Services reported consolidated revenues have increased by nearly one quarter in Q3. Consolidated earnings per share declined due to ramp up costs associated with Bell Intrigna, its CLEC partnership with Bell. More details. Call-Net revenues decreaseThe parent company of Sprint Canada announced Q3 revenues were down, both from Q2 2001 and Q3 2000. Increased revenues from the relaunching of residential service were offset by the decline in LD and Internet clients. More details. Telus cuts dividend by more than halfTelus Corp. has released Q3 results and announced it is paying a dividend of 15 cents, down from the 35 cents paid in Q2. The ILEC is expected to wage a fierce battle to change the contribution mechanism. More details: TELUS reports third quarter results and updates 2001 outlook Dividend reduced to align with growth strategy; dividend reinvestment discount reduced

NL Update

News | 10/29/2001 5:00 am EST

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