NL Short Takes

Readers split on proposal for Communications Department Respondents to the most recent Decima Publishing Reader Poll are divided on the question of re-establishing a federal Department of Communications. Nearly 41% rejected the idea, with an identical number endorsing the proposal. Another 19% were undecided. Allstream and AT&T sign network support agreementAllstream Corp. has signed a deal with AT&T Corp. of the United States to continue the use of the AT&T voice network. The Canadian company hopes this will provide continuity to its customers while allowing flexibility to work with other international carriers. Allstream is the former AT&T Canada Corp. BCE and CGI cancel put and call option; BCE will hold under 30%BCE Inc. and CGI Group Inc. have cancelled the put/call options with the majority shareholders, originally put in place in 1998. BCE has promised to keep its ownership stake in CGI below 30% and will receive representation on the CGI board. Internet strong, traditional services weak for MTSManitoba Telecom Services Inc. reported a 4.4% growth in baseline earnings per share in Q2. Revenues from Internet services grew by 26%, while local, LD and directory services revenue dropped from a year earlier. Aliant Inc. to repurchase up to 5% of sharesIn releasing its Q2 results, Aliant Inc. announced that it intends to buy up to 6.9 million of its common shares, representing 5% of the total issued. As previously announced, the Atlantic telco is restructuring its xwave subsidiary. Sprint Canada sells accounts receivable for $55 millionSprint Canada Inc. has sold its accounts receivable to Finacity Trust, a special purpose trust administered by National Bank Financial Inc. The five-year agreement will provide Sprint with up to $55 million in cash. Nortel Networks reports net loss for Q2 2003Nortel Networks Corp. reported a net loss of US$14 million in Q2, or US$0.00 per share, on revenues of US$2.33 billion. The troubled equipment manufacturer had reported a slight profit in its first quarter (NL Update, Apr. 28/03). Network Associates offers products to fight DoS attacksSoftware security company Network Associates Inc. is deploying several of its products to help Internet users whose networks have been hit by denial of service attacks on Cisco and Microsoft grids. Many Canadian telcos were affected by the attacks (NL Update, July 21/03). BCE Emergis blames dollar for changes in financialsBCE Emergis Inc. cited the rising Canadian dollar for its static reporting in Q2, saying revenue would have been $4.5 million higher than the $124 million reported had the loonie not risen. It is lowering its revenue target for 2003 of $510-$550 million to $470-$490 million as a result. Bell Canada International issues Q2 results, will sell Canbras stakeBell Canada International has released its Q2 financial results, showing the firm is primarily a holding company. It has 95% of its assets in cash and short-term investment and is seeking to sell its stake in Canbras Communications Corp. CRTC vetoes Centrex volume discounts by two ILECsThe CRTC denied two applications by ILECs to offer volume discount rates for Centrex services. Telecom Decision 2003-50 affects Aliant Telecom Inc. while MTS Communications Inc.’s submission was handled in Telecom Decision 2003-51. Aliant Telecom to phase out party lines in P.E.I. and Nfld.In Telecom Order 2003-289, the CRTC permitted Aliant Telecom Inc. to discontinue residential two- and four-party services. The telco reported 276 party line customers in P.E.I. and Newfoundland and Labrador. Telus works with Siemens on network productsTelus Corp. has agreed to enter a strategic alliance to market enterprise convergence products from Siemens Canada Ltd. The two companies hope to launch campaigns to offer other services to Telus customers in the near future. Reseller YAK reports stronger second quarter in 2003YAK Communications Inc. announced Q2 sales of $12.3 million, a 73% jump from the numbers of a year earlier and a 16% increase from Q1. For the second quarter of 2003, the reseller processed 15 million calls totalling 160 million minutes. Norstan wins IP contract for new Mercedes-Benz head officeNorstan Inc. has been given the contract to install an IP voice and data network in the new head office of Mercedes-Benz Canada Inc. Norstan, the Toronto-based subsidiary of a Minnesota firm, had previously provided the car company with video conferencing equipment. Aliant offers faster high-speed Internet serviceAliant Inc. is now offering Internet users additional bandwidth. Its Ultra High-Speed Internet is available wherever regular high-speed is rolled out and will offer up to three megs of download speed for $64.95 per month. NB 911 service should be streamlined, inquest toldAmbulance worker Glen Miller told a coroner’s inquest in Moncton the provincial 911 system is too cumbersome. When a 29-year-old man collapsed in a hockey rink in Riverview NB, the emergency call was filtered through three operators before an ambulance was dispatched. Ian McConnell died before help arrived. Michael Powell denies reports of resignationFederal Communications Commission chair Michael Powell is denying a report in Time magazine that he will resign by the autumn. "He’s working on a full agenda for the fall," spokesman David Fiske said, adding the story was without foundation. Bush whacks White House emailers with new protocolPeople emailing George W. Bush at president@whitehouse.gov have discovered they must use a new system. From now on, emailers must go to www.whitehouse.gov/webmail and navigate through nine pages, including one that demands to know if they support government initiatives or not, before their missives can be completed. Internet sales tax resolution in U.S. appears to be deadA proposal by 36 American states to impose a tax on Internet sales seems to be stalled. Senate commerce committee chair John McCain said it is unlikely Congress will grant approval for any change in the Internet tax moratorium this year. European broadband expected to grow to 30% by 2008A new study by Forrester Research predicts that 30% of European households will have broadband by 2008. The firm expects ADSL to be the dominant platform and that northern countries will be more receptive to broadband than their southern neighbours. Verizon agrees to rehire 1,100 laid-off workersVerizon Communications Inc. is bringing back 1,100 workers it had previously laid off. These employees are from outside New York State, where the telco has already been ordered to rehire 2,300 dismissed workers (NL, July 15/03). EchoStar scores second satellite TV-telecom deal on same dayEchoStar Communications Corp. has agreed to supply customers of Qwest with satellite TV service, allowing the telco to offer local, LD, data, wireless and television service. Earlier the same day, EchoStar entered into a similar agreement with SBC Communications (NL Update, July 21/03). Call answering leads to assault charges for Washington invalidWhen Louis Carnaghi of North Seattle WA got tired of answering phone calls for his 86-year-old wife, he attacked Arline Carnaghi with the phone, a pipe and a shoe. The wheelchair-bound man is now facing first-degree assault charges and is being held on $500,000 bail.

NL Short Takes

News | July 28, 2003

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