NL Short Takes

Call-Net negotiates recapitalization planCall-Net Enterprises Inc. has negotiated a new plan with its noteholders and shareholders that will see the CLEC’s debt reduced by over $2 billion. All of Call-Net’s $2.6 billion of senior notes will be exchanged for US$377 million of new 10.625% debt, US$81.9 million in cash and 80% equity in Call-Net. A day earlier, the telco released its FY2001 numbers. Revenue dropped to $928.4 million from $1.25 billion the previous year, primarily due to a decline in LD revenue. Group Telecom Inc. trims 350 positions across companyToronto-based CLEC GT Group Telecom Inc. has undergone a corporate restructuring that has resulted in the loss of 350 jobs across all levels of the company. The move will save the firm $30 million a year, although settlements with the affected workers will cost the telco $20 million in 2002 Q2. Dumping @Home service costs Rogers $44 millionRogers Communications Inc. spent $44 million to switch from its @Home high-speed Internet service to the @rogers.com service, the company said in its FY 2001 report. The costs include US$15 million under a transitional agreement (NL, Dec. 5/01). 360networks subpoenaed in Global Crossing caseVancouver fibre builder 360networks Inc. has been served with a third-party subpoena by the U.S. Securities and Exchange Commission, which is currently investigating Global Crossing Ltd. 360networks, itself under bankruptcy protection in Canada and the U.S., says it will turn over all relevant documents in the case involving the firm, which is under Chapter 11 protection (NL, Jan. 29/02). CRTC approves loop rates for four incumbentsIn Telecom Decision 2002-11, the CRTC approved revised unbundled loop service order charges for Bell Canada, Aliant Telecom Inc. and MTS Communications Inc. The commission also issued Telecom Decision 2002-12, granting SaskTel revised primary exchange service costs and related loop rates. Telus files statement of defence in Telecom Workers Union suitWestern telco Telus Corp. has filed statements of defence in a lawsuit brought against it by the Telecommunications Workers Union (NL Update, Jan. 21/02). The union has filed a $460 million suit, alleging improprieties in the pension fund. Aliant inks broadband software agreement with BroadJumpAliant Telecom Inc. has signed a deal with BroadJump Inc. of Austin TX to deploy the company’s high-speed Internet software in the Atlantic provinces. The product permits Aliant’s Internet clients to self-install a system for broadband connectivity. SaskTel awarded silver from Hewlett-PackardHewlett-Packard has given SaskTel a silver certification under the HP Service Provider Program for its data hosting services. The provincial telco is the first host server in Canada to win such a distinction. Sprint enters video conferencing partnership with BroadbandSprint Canada has joined with Broadband Collaborative Solutions to provide an end-to-end video conferencing and collaboration product. BCS provides the video service, while Sprint is responsible for the frame relay, transparent LAN or business Internet DSL lines. Mitel introduces two new desktop IP phone systemsMitel Networks of Ottawa has unveiled the Mitel 5001 and 5005 IP phones. The low cost desktop phones are the most recent addition to the company’s line, which includes the recently-released 3100 (NL, Feb. 11/02) and the 5550 IP console. Linmor raises $7.34 million in new financingOttawa equipment manufacturer Linmor Inc. has secured $7.34 million in new financing. Using Griffiths McBurney & Partners and Yorkton Securities Inc. as underwriters, the firm is offering $2.5 million in unsecured debentures and up to 12.5 million common shares at 22 cents per share. Q9 Networks buys largest data centre in countryToronto’s Q9 Networks Inc. has bought the Internet data centre, the largest in Canada, from Exodus Communications Inc. The facility, located in Brampton ON, will take some of the overflow from Q9’s primary centre in Toronto. Mediatrix Telecom gets funding from public, private sourcesMediatrix Telecom Inc. of Sherbrooke QC has received $4 million from la Société Innovatech du Sud du Québec and from private investors. The IP equipment manufacturer is using the money as part of a global round of funding worth $8 million. Broadwave new name for Zenastra PhotonicsA Chinese and an American firm have teamed up to relaunch bankrupt Zenastra Photonics Inc. (NL, Oct. 10/01). Shenzhen Laserwave Optoelectronics Ltd. has joined with Broadnet Technologies Inc. of Syracuse NY to save the manufacturer, which will now be known as Broadwave Photonics Inc. PCNet issues shares to American creditorPCNet International Inc. of Victoria has issued 320,000 common shares at 10 cents a share to satisfy a debt. The issue will settle the $32,000 debt owed to American Capital Partners Ltd. LinCsat offers satellite service to aboriginal communitiesLinCsat Communications Inc., a provider of high-speed satellite Internet service (NL, Feb. 11/02), has signed deals to provide its offerings to three First Nations communities. The company will provide high-speed Internet to the Maliseet-Madawaska First Nations, the Mohawk region of Kahnawake, and the Six Nations area. Telesat to provide broadband service in northern Ontario Telesat has signed an agreement with K-Net Services to provide high-speed satellite Internet service to Fort Severn and Slate Falls in northern Ontario. The native communities will use the service for Internet access, telehealth and tele-learning. LocusDialog targets new markets with partnershipMontreal’s LocusDialog has joined with SpeechWorks International Inc. of Boston to integrate SpeechWorks’ products into LocusDialog’s call routing system. The Canadian firm hopes to move into the European and Asian markets through the new venture. SNMP vulnerability warning issued by computer teamThe Computer Emergency Response Team (CERT) is advising that vulnerabilities have been discovered in the Simple Network Management Protocol (SNMP). This leaves computer networks open to unauthorized access, denial of service attacks and similar problems. Telehealth Ontario records over half-million calls after one yearTelehealth Ontario reports it has received more than 500,000 phone calls after one year of operation. The service, a division of the provincial health ministry, connects callers with a registered nurse who provides free confidential medical advice and information. Storm Telecom of United Kingdom hits rough watersEuropean carrier Storm Telecommunications Ltd. went into administration, the British equivalent to bankruptcy protection, on February 20. The London-based company, which is on the market, has operations in eight nations and 11 voice switching hubs. Americans prepared to pay for broadband servicesA new survey by Sage Research Inc. finds that American consumers are willing to pay for services from high-speed broadband connections. The report states that 44% would pay for entertainment, 42% would pay for communications and 39% would pay for education. Customer service is not their strong pointAuckland NZ businessman James Storrie was more than a little surprised when he received a bill from his phone company for NZ$337.50 with a notation that it was a "penalty for being an arrogant bastard." Telecom, the local phone company in the island nation, is conducting an investigation.

NL Short Takes

News | 02/26/2002 5:00 am EST

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