NL Update

CRTC rules Cancom must pay contributionIn Telecom Decision 2002-57, released September 13, the CRTC ruled that Canadian Satellite Communications Inc. (Cancom) must pay into the contribution fund. Cancom, which is owned by Calgary-based Shaw Communications Inc., had argued that it is not a telecommunications service provider and should be exempt from the payments. The commission disagreed and has ordered the company to submit financial information by the end of the month. KKR, OTPP buy BCE directories for $3 billionBCE Inc. has sold its Bell Canada directories business to Kohlberg Kravis Roberts & Co. and the Teachers’ Merchant Bank, the private equity division of the Ontario Teachers’ Pension Plan. The $3-billion sale involves 209 White Pages and Yellow Pages directories in Quebec and Ontario and the online directories yellowpages.ca and Canada411. KKR will hold 60 per cent of the new company, the Merchant Bank will have a 30 per cent stake and BCE will retain a 10 per cent interest. More details. AT&T Canada to forego bond interest paymentsToronto-based CLEC AT&T Canada Inc. has announced that it will not make bond interest payments due on September 15 and September 23. The amount due yesterday was US$47.8 million; next week’s amount due was $5.4 million. The company also said it has hired Morgan Stanley to offer a third appraisal on purchasing back all of its outstanding shares. More details. Telus puts more shares on the marketTelus Corp. is issuing more non-voting shares in order to pay down its debt load. The western telco is releasing 34.25 million shares at $9.95 per share. The stock offering should bring in $337.3 million to the company. More details. Group Telecom granted creditor protection extensionGT Group Telecom Inc. has been granted an extension of its protection under the Companies’ Creditors Arrangement Act until September 19. The CLEC expects to file for a further extension on that date. It has also had its American protection extended. The company, which will release Q3 results at the end of the month, initially filed for CCAA protection back in June (NL, July 3/02). Bell Globemedia buys rest of Sympatico LycosBell Globemedia Inc., a division of BCE Inc., has purchased the 29 per cent stake in Sympatico Lycos Inc. formerly held by Terra Lycos. No financial details were provided. The two partners will continue to work together on the provision of services. More details. CRTC lays out expansion of LCAsIn Telecom Decision 2002-56, dated September 12, the CRTC set out a formula for the broadening of local calling areas. The amalgamation of formerly separate communities into larger metropolises was the trigger for the move. Telcos, both ILECs and CLECs, will be reimbursed for lost LD revenue. The commission will hold proceedings later this year to determine the proper compensation. Persona closes deal for Sudbury ISPPersona Communications Inc. has closed its previously announced purchase of Cyberbeach Communications and ISYS Technologies of Sudbury ON. The addition of the ISP will give Persona a total of about 15,000 high-speed customers in Northern Ontario. The deal is part of a $2.2-million acquisition that includes two cablecos. More details. Internet connectivity part of Quebec Liberals’ pledgeIn anticipation of an election, the Liberal Party of Quebec issued a 48-page action plan outlining its promises should it form the next government. Under the "Powers for Citizens" section is a pledge to bring high-speed Internet service to all regions of the province. Another part of the document details the party’s plans for online government. More details. CRTC sets co-location ratesThe CRTC has set out, in Telecom Decision 2002-55, the interim single-tier co-location power rates of Bell Canada. Four CLECs had asked for interim approval only until the commission rules on Bell Canada’s application. Bell has been ordered to file a report listing the billed monthly power demand for each co-locator. INTERNATIONAL NEWS Network Associates completes McAfee takeoverNetwork Associates now owns 96 per cent of antivirus company McAfee.com. The deal cost Network Associates about US$202 million in cash and stock. The company received 10.39 million McAfee shares. More details. SBC and Yahoo launch DSL serviceAmerican telco SBC Communications has joined with Internet portal Yahoo to offer DSL service. The service is available in 13 states and will feature three price packages. The cheapest price is US$42.95/month, with the highest priced being US$59.95/month, although six-month discounts are available. More details.

NL Update

News | 09/16/2002 4:00 am EDT

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