NL Update

360 purchases American utel360networks has bought the fibre assets of bankrupt American utel Touch America Inc. The failed company’s customer base is being sold to Buyers United Inc. The moves came just as the CBS-TV program 60 Minutes reran its segment on the demise of Touch America.Landlords seek leave to appeal CRTC MUD decisionThe Canadian Institute of Public and Private Real Estate Companies has joined with the Building Owners and Managers Association of Canada to seek to overturn CRTC Telecom Decision 2003-45. The two landlord groups are seeking leave to appeal the ruling to the Federal Court of Canada. CLEC FCI Broadband has filed a review and vary application over the same ruling with the commission.Axia NetMedia expands into ItalyCalgary’s Axia NetMedia Corp. is moving into Italy. Its British subsidiary Axia CitizenConnect has inked a deal with partners in Italy to extend its GOAL product across the European nation. The Canadian firm has also sold its Netricom division to Symtech Canada Ltd. of Markham ON.REGULATORY NEWSCRTC varies Telus rate orderThe CRTC has agreed to change part of Order 2000-13, which approved the elimination of distinct rates for Telus Communications Inc.’s Type B, C and D conduit. Telecom Decision 2003-54 resulted from a review and vary application filed by Shaw Communications Inc. Telus has been ordered to issue revised tariffs.CRTC finalizes price cap filingsIn Telecom Decision 2003-56, the CRTC finalized the assignment of tariffed services in the service baskets for Telus Québec and Télébec. The commission approved rates for the two regional telcos in Telecom Decision 2003-57. Both rulings follow up on the provisions of the price cap decision, Telecom Decision 2002-43.ILECs ordered to file dark fibre tariffsIn Telecom Decision 2003-58, the CRTC has ordered Telus Québec to file intra-exchange and inter-exchange dark fibre tariffs and is directing SaskTel, MTS Communications Inc., Aliant Telecom Inc., and Télébec to show why they should not do the same. Bell Canada has been ordered to file similar tariffs in Telecom Decision 2003-59. Both rulings come in response to an application from Xit Télécom (NL, Apr. 22/03).Vidéotron seeks end to bundling, backs Rogers applicationQuebec cable operator Vidéotron ltée has filed an application with the CRTC seeking an end to ILEC bundling practices. The Quebecor subsidiary is asking for an expedited decision. It also uses the filing to endorse a similar application recently filed by Rogers Communications Inc. (NL, July 15/03).FCI Broadband seeks co-location rebatesFCI Broadband has filed a Part VII application with the CRTC seeking rebates for adjustments on co-location rates. The Richmond Hill ON-based CLEC maintains it deserves the credits as a result of Telecom Decision 2002-55. It is calculating the rebates on the amount it says it overpaid between Nov. 29, 2000 and Sept. 11, 2002.Dramis applies for parity on wiring rulingDramis Network Cabling and Telephone Systems of Moncton NB has filed an application with the CRTC seeking parity with all local telcos in wiring proceedings. The company’s request arises out of Telecom Decision 2003-45, which dealt with access to inside wiring. Dramis is most concerned about its ability to compete with Aliant Telecom Inc.IMCAIP responds to Rogers bundling applicationThe Independent Members of the Canadian Association of Internet Providers has filed its comments on the application by Rogers Communications Inc. to ban bundling by the ILECs. The group takes many of Rogers’ arguments and applies them to IMCAIP’s fight to gain third-party access to the high-speed Internet market. CAIP president Jay Thomson has also sent a letter to CRTC chair Charles Dalfen complaining about the delay in dealing with a complaint about Shaw Communications Inc.FINANCIAL NEWSTelus issues Q2 results; EBITDA upTelus Corp. reported a 16% jump in EBITDA for the three months ended June 30, 2003 compared with the same period a year earlier. EBITDA was $719 million this year versus $621 million in 2002. Earnings per share leapt 320%, from a nickel a year ago to 21 cents in 2003.BCE reports Q2 results; revenue flatBCE Inc. reported earnings per share of $0.50 on common shares of $461 million in the second quarter of 2003. For the same period in 2002, the telecom giant reported EPS of one cent on common shares of $6 million. Total revenue and EBITDA was essentially flat, the conglomerate stated.Aliant to purchase stock, Bell granted exemptionAliant Inc. has announced its intention to purchase up to 6.9 million shares, or 5%, of its stock. Bell Canada has been given regulatory approval to sell its shares to Aliant. The buyback will last from this month until August 2004.Call-Net releases Q2 numbers; issuing sharesCall-Net Enterprises Inc. reported net income of $2.5 million in the second quarter of 2003, compared with a loss of $62.4 million a year earlier. Consolidated revenue was down slightly. The company has also announced it is issuing 10 million class B non-voting shares.Allstream issues Q2 results; revenues declineAllstream Inc., the renamed AT&T Canada, has released its financial results for the second quarter of this year. Revenue from data/Internet, local and LD all fell compared to a year earlier. Revenues were $336 million, down from $385 million in 2002 and $353 million in Q1 2003.Primus Canada reports Q2 numbers; revenue up over 2002Primus Telecommunications Canada Inc. said revenue grew 12.8% in the second quarter of 2003 over the same period in 2002. Net revenue was $71 million. LD and high-speed Internet numbers increased for the company.Vidéotron Télécom reports lower revenues in Q2The telecom affiliate of Quebec cable operator Vidéotron ltée saw revenues decrease to $20.1 million in the second quarter of 2003 from $23.9 million in the same period last year. Vidéotron Télécom ltée also saw operating income decline considerably to $3.4 million from $8.8 million.Canada Payphone reports increase in revenues in Q3Vancouver’s Canada Payphone Corp reported revenues in Q3 2003 of $944,218, an increase of $137,629 from last year. Cost of sales was up 8.1%, mostly due to operator services. Selling and administrative expenses were down, attributable to a decrease in professional and consulting fees.Telesat releases Q2 figuresTelesat Canada posted $82 million in revenue in Q2 2003, compared to $77 million in the same quarter of 2002. Net earnings were $21 million in Q2 2003 versus $16 million in Q2 2002. The BCE Inc. subsidiary reported cash flows of $78 million for the first half of 2003.Cygnal issues Q2 numbers, sells headquartersCygnal Technologies Corp. announced revenues of $36.6 million in Q2 2003, down from $42.1 million in Q2 2002. The company is working on a restructuring plan. The firm has sold its corporate headquarters in Oshawa ON and is now located in facilities in Markham ON.Peer 1 restructures debtPeer 1 Network Enterprises is restructuring its debt to the tune of $2.5 million. Most of the debt is owed to Sutton Group Financial Services. The TSX Venture Exchange has approved the new plan.AirIQ issues Q2 resultsToronto’s AirIQ Inc. reported an increase in revenues of 45.8% and a margin improvement of 80.2% for the second quarter of 2003. Operating loss fell 52% for the quarter. The company noted negative effects from the fluctuating Canadian dollar.Trading in Unilink haltedThe Ontario Securities Commission has issued a temporary order halting trading in shares of Unilink Tele.com Inc. The Vancouver company has not filed its annual statements with the OSC. Unilink did not make any presentation at the hearing.INTERNATIONAL NEWSFCC unveils new local telephony and Internet rulesThe Federal Communications Commission in Washington has decided to maintain regulations aimed at promoting local telephone competition but has deregulated the high-speed Internet market. The 576-page report promises to unleash a wave of regulatory interventions. New York telecom lawyer Dana Frix of Chadbourne & Parke LLP told the New York Times, “My children will go to college on this stuff. This is a lawyer’s dream.”CWA sues Verizon over eavesdropping on callThe Communications Workers of America is suing Verizon Communications Inc. and two of its executives after the officials dialed in to an invitation-only conference call held by union officials in mid-month. The call provided reporters with an update on contract talks. The talks continue, despite Verizon’s expectation that workers would be on the picket line by now.

NL Update

News | August 25, 2003

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