NL Short Takes

Teleglobe American operations file for Chapter 11 protectionTeleglobe Inc.’s American subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. An earlier application for creditor protection had been denied by the courts (NL Update, May 27/02). The firm is under protection here and in the UK. Nortel sheds a further 3,500 jobs, predicts lower revenuesNortel Networks Corp. released comments on its expected Q2 filings, saying revenues should be down 5% from the previous quarter, and announced the elimination of 3,500 jobs. The move comes three months after new CEO Frank Dunn told workers the round of layoffs had ended. BCE faces credit rating downgrade from DBRSBCE Inc. could find its credit rating lowered further, depending on how it finances a buyback of SBC’s interest in the conglomerate, Dominion Bond Rating Service Ltd. warns. DBRS has already decreased BCE’s rating from A-high to A. Ontario introduces bill to proceed with Hydro saleUpset by a recent ruling that forbade the public offering of Hydro One (NL, Apr. 23/02), the Ontario government has tabled legislation that would permit the privatization to go ahead. Premier Ernie Eves says the government has not decided if it will actually sell the utility. Bell Canada International sells stake in Telecom AmericasBell Canada International has sold its 42% stake in Telecom Americas Ltd. to America Movil S.A. de C.V. The Mexican firm will pay US$146M in cash and issue a US$220M interest-free note. BCI will be released from US$250M in Telecom Americas guarantees. Bell Canada offers to discuss pay equity with unionNew BCE Inc. CEO Michael Sabia, who also serves as COO of Bell Canada, has invited the Communications, Energy and Paperworkers Union to sit down in an attempt to resolve a pay equity dispute. The union, which represents telephone operators in the decade-long battle, presented its case outside the BCE AGM last week. Northern, Télébec create centres of excellenceBCE Inc. subsidiaries Northern Telephone and Télébec have established a program of centres of excellence for its network services. The centres will be located in the Quebec communities of Val d’Or and Bécancour and in Timmins and New Liskeard in Ontario. Critical Telecom sells fibre product to TelusCritical Telecom of Saskatoon SK has sold its FiberLINK product to Telus Corp. for initial trials. The technology will extend the reach of ADSL 12 km from the central office faster than DSLAMs can. Onlinetel gives its two cents worth on LD callingHeavy users of LD may want to avail themselves of Onlinetel Corp.’s new calling program. The Ontario reseller, a subsidiary of Eiger Technology Inc., is offering 1,000 minutes to Canada/continental U.S. for $20 or 500 minutes for $10, working out to two cents per minute. Bell tariff application rejected by CRTCIn Telecom Decision 2002-32, the CRTC denied Bell Canada’s application to increase rates for DS-1 and DS-3 digital network access links. The telco wanted to move the DS-1 rate from $60 to $85 and the DS-3 toll from $100 to $110. Canadian banks on hook for XO Communications loansTwo Canadian banks are owed at least US$112.5 million by XO Communications Inc., an American telecom flirting with bankruptcy. The Toronto-Dominion Bank is on the hook for US$62.5 million, while the Bank of Nova Scotia stands to lose US$50 million. Manitoba to launch Internet stalker tip line by summerManitoba Justice minister Gord Mackintosh says a tip line designed to nab Internet stalkers should be operating by this summer (NL, Apr. 23/02). The program, which was originally intended to be provincially based, has been expanded to include the entire country. Yellowbusiness.ca owner guilty of deceptive practicesPeter Kuryliw, owner of the parent company of Yellowbusiness.ca, pleaded guilty to mailing out deceptive notices to more than 40,000 businesses. The Toronto entrepreneur was fined $30,000 by the Ontario Court of Justice for the bogus invoices, which led unsuspecting targets to think the bills were from Bell Canada or the Yellow Pages. National Capital Freenet upgrades access systemThe National Capital Freenet, one of the country’s strongest free ISPs (NL, Sept. 24/01), has upgraded its dial-up access service. It replaced its 14.4 and 28.8 kbps modems with two servers configured with 48 33.6 kbps modems. Quebec Internet company goes bust, seeks new fundingNetPCS Networks, an Internet communications firm, has laid off its staff and is searching for new capital. The Gatineau QC-based company was one of the stars of the Ottawa high-tech scene upon its founding in 1997. Ottawa’s Espial sells Internet browser to Araneo of IsraelOttawa’s Espial Group Inc. has sold its Escape Browser product, which formats web content for TV sets, to Araneo Ltd. The Israeli company will use the Canadian product to permit full Internet browsing on conventional television screens. Cygnal markets Multi-Tech’s telecom productsCygnal Technologies Corp. of Oshawa ON has agreed to distribute the telephony products from Multi-Tech Systems Inc. of Mounds View MN. The American firm offers VoIP, Internet and multiplexer technologies. CIRA board election campaign beginsThe Canadian Internet Registration Authority has launched its second online election campaign. CIRA members are currently able to question candidates prior to the balloting, which will take place between June 7 and June 13. MTS, Telus become knights of boardroom tableCorporate Knights magazine has released its list of Canada’s 50 Best Corporate Citizens. Manitoba Telecom Services Inc. placed third overall, while Telus Corp. ranked 27th. Telecom execs not good communicators, PwC findsA new study by PricewaterhouseCoopers says telecom executives see hidden value in their companies that they have been unable to communicate to the public at large. The Communicating Value in the Telecommunications Industry—2002 talked to CFOs, financial heads and chiefs of investor relations at 38 telcos. Telus Québec joins jaunty Alouettes as sponsorTelus Québec has signed on to be the telecom provider for the Montreal Alouettes. The telco will provide voice, wireless and Internet services to the CFL team. The contract will run for the next three years. Internet numbering system given interim approvalThe International Telecommunication Union and the Internet Architecture Board have granted interim approval for a single domain for ENUM. The technology, which constructs a bridge between the PSTN and the Internet, will enable the deployment of multi-corporate and international VoIP service. Deutsche Telekom slashes 22,000 jobsGerman ILEC Deutsche Telekom plans to eliminate nearly 9% of its workforce by the end of the year. CEO Ron Sommer says the firm will cut 22,000 jobs from its current roster of 245,000. The ILEC’s stock has been hit on European markets, falling after concern about its debt load. Alcatel buys American VoIP companyAlcatel has acquired Telera Corp. of Campbell CA for US$136 million in stock. Telera makes a platform permitting VoIP access. The French equipment manufacturer plans to merge the company into its Genesys software division. Japan Telecom unloads ADSL service to eAccessJapan Telecom, the third-largest carrier in that Asian nation, is selling its ADSL Internet facilities to eAccess Ltd. for 5.5 billion yen (about $67 million). Full details will be issued following Japan Telecom’s release of its financial results. Texas Instruments introduces POTS voice over productTexas Instruments has unveiled a POTS product for voice over broadband. The new technology will permit manufacturers and service providers to deploy enhanced voice service on existing broadband platforms. ILECs driving broadband rollout in EuropeA recent study by IDC finds that broadband deployment is increasing greatly in Europe, mostly due to the efforts of incumbent carriers. DSL captures 68% of the market, with cable garnering 30% and other technologies, such as fixed wireless and satellite, registering at 2%. American telcos in hot water over telemarketingDespite the existence of no-call lists, major American telcos like Sprint, Verizon and SBC are using an opt-out system, much like reverse option billing in Canada, to make customer information available to their subsidiaries. The Federal Communications Commission says it is considering placing customer calling data under regulation. Islanders wasting their time when calling governmentPeople in PEI who want to call the Island Waste Management Corp. are being connected to a company in Texas. Property tax bills in Queens and Kings counties misprinted the IWMC number as 1-888-280-8881, rather than 8111.

NL Short Takes

News | 06/03/2002 4:00 am EDT

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