NL Short Takes

Telecommunications StatisticsNew figures released by Statistics Canada show that operating profits in the wireline telephone industry in 2002 fell 13.6% to nearly $3.9 billion, with revenues falling 3.1% to $24 billion. Numbers dropped from the fourth quarter of 2001 to the fourth quarter of 2002 and from 2001 to 2002. Capex continues to decrease, confirming industry trends (NL, Feb. 24/03). Industry committee to report on foreign ownership next weekThe House of Commons Standing Committee on Industry, Science and Technology will release its final recommendations on foreign investment rules on Monday, April 28. It has been studying the issue since late January. Moody’s raises Telus credit rating outlook to stableMoody’s Investors Service Inc. has raised its outlook on the credit rating of Telus Corp. from negative to stable. The telco’s rating remains at Ba1, unchanged from its previous level. Talks between BCE and CGI continue until this summerBCE Inc. is extending its talks with CGI Group Inc. to determine the conglomerate’s status with CGI, a firm that BCE owns 30% of. The two sides are hoping to have an agreement in place by August 1. The final termination date has been pushed back from Jan. 5, 2006 to Aug. 1, 2006. Earnings fall, dividend increases at Aliant in first quarter of 2003Aliant Inc. announced that net income in the first quarter of 2003 was $36.5 million, down from $51.1 million a year earlier. The regional telco declared a common share dividend of $0.275 per share, an increase of 10%. Preferred share dividend was $0.34 per share. Persona reports big jump in revenue in second quarterPersona Inc. reported revenues in the second quarter of 2003 of $42.2 million, a 53% increase from $27.5 million in 2002. The company credits a big jump in its number of Internet subscribers, mostly from purchasing a cableco in the Bahamas, as a contributing factor. The company provides Internet service in Canada and in the Bahamas. Aliant minimum late payment fee struck down by CRTCIn Telecom Decision 2003-24, the CRTC ordered Aliant Telecom Inc. to stop imposing a minimum amount on its late payment charges (LPC). The telco had been charging $1.25 in Nova Scotia and $1 in Prince Edward Island. A decision on whether LPCs are not telecom services will be issued later on. Amtelecom changes name to Century II HoldingsAmtelecom Group Inc. has now changed its name to Century II Holdings Inc. The move was necessitated by its recent sale of its telecom assets to Amtelecom Income Fund (NL Update, Jan. 20/03). PCNet International merges with Technovision SystemsVictoria ISP PCNet International Inc. has announced plans to merge with Technovision Systems Inc. of Vancouver. Technovision shareholders will own 55% of the new company, with the remaining held by PCNet stockholders. Technovision president William Spratt will be CEO; PCNet president/CFO Brad Williams will hold the same positions with the new firm. Northwestel upgrades telephone, Internet service Northwestel has invested $160,000 to improve its infrastructure in Hay River NT. The telco is upgrading its telephony network and providing high-speed Internet to customers in the northern community. The process is part of the northern ILEC’s service improvement plan. Xit Télécom accuses Telus and Bell of restricting accessXit Télécom, a Quebec telco, has filed two Part VII applications with the CRTC, alleging that Telus Québec and Bell Canada are denying it access to their fibre networks. The company provides connectivity for school boards, libraries and other public institutions. Axia buys Telus fibre for Alberta SuperNetAxia SuperNet Ltd. has paid $34.9 million for fibre from Telus Communications Inc. for use in the Alberta SuperNet. The firm will use the fibre to connect rural parts of the province to the backbone.Nortel improves security on commercial IP networksNortel Networks Corp. has announced an enhanced security system for its IP customers. Secure Telephony will work on circuit-switches, migrations to IP, pure IP telephony or wireless IP. CRTC corrects Bell Canada price cap rulingIn Telecom Decision 2003-15-1, the CRTC amended its March 18 ruling on Bell Canada’s price cap filing. It corrected a table and two paragraphs of the original decision. CRTC approves PICs for three telecomsThe CRTC has approved, subject to amendments, the Primary Interexchange Carrier/Customer Account Record Exchange Access Customer handbooks of three companies. The telcos affected are Bell West (Telecom Order 2003-152), the Ontario Telephone Association (Telecom Order 2003-153) and ExaTEL Inc. (Telecom Order 2003-154). Versatel Networks upgrades SCS productsVersatel Networks Inc. of Gatineau QC is improving its structured cabling system products. They will now be able to move from a programmable service switch to a comprehensive and integrated next-generation network product in a single chassis. Two government levels snap up high-tech office buildingsThe federal government has paid $91 million for a Nortel Networks office tower in west-end Ottawa. The Eastern Ontario French Public School Board spent $10 million for a building in east Ottawa that had housed JDS Uniphase facilities. Canada contributes more cash to African connectivityThe federal government is adding $15 million over four years to support the Connectivity Africa project. The initiative was part of the commitment made at the G8 meeting in Kananaskis AB last year (NL, Oct. 8/02). Nice non-work if you can get itA management proxy circular from BCE Inc. reveals that former CEO Jean Monty continued to draw his salary for several weeks following his resignation (NL, May 7/02). Although he announced his departure on April 24, 2002, Monty was paid $26,634.61 a week plus benefits until July 1.

NL Short Takes

News | 04/22/2003 4:00 am EDT

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