NL Short Takes

Nortel agrees to partnership for directory servicesNortel Networks Corp. will contribute certain assets and liabilities of its directory and operator services business to VoltDelta as part of a partnership between the two companies. In return, Nortel will receive a minority equity interest in VoltDelta, a subsidiary of Volt Information Sciences Inc. About 160 Nortel employees in North America and Mexico will join VoltDelta once the transactions closes, expected in the third quarter of 2004. Nortel has decided to retain its traffic operator position system business, which is based in Research Triangle Park NC. MTS’ Fraser unveils ‘bold, but pragmatic’ visionManitoba Telecom Services Inc. (MTS) CEO Bill Fraser told shareholders at the its annual general meeting (AGM) last week that the company has embarked on a new path to prosperity. "We are poised to take MTS into a bold but very pragmatic future with a national focus, a future, we believe that will secure our destiny," he said at the June 15 AGM. Fraser also noted during his presentation that its acquisition of Allstream, finalized earlier this month, allows MTS to change its colours from a fast follower in networking to a leading edge player at the front of providing high-value services to business customers. In other MTS news, the company has completed the issuance of $350 million of medium-term notes, consisting of $150 million in five-year notes and $200 million in 10-year notes. The notes are to mature in 2009 and 2014 respectively. Commission denies Telebec right to expand LCAThe CRTC has turned down an application from Société en commandite Télébec to create an expanded local call area (LCA) covering Cree first nations communities in the James Bay region using money in the universal service fund. "The commission considers that it would inappropriate for operating costs incurred following the creation of the proposed expanded LCA to be recovered in the same way as are operating costs for service improvement plans in high-cost serving areas." The commission suggests that Télébec first receive approval from the grand council before reapplying with a more detailed cost analysis. Axia to help broaden reach of Alberta’s SuperNet projectAxia SuperNet Ltd. has been selected by Olds Institute for Community and Rural Development (OICRD) to develop a business plan to extend the reach of the Alberta government’s SuperNet project through the Town of Olds and surrounding Mountain View county. Axia and OICRD are now in the process of defining the parameters of the project, which will evaluate construction and operating costs, the number of customers needed to make the network sustainable and/or profitable, and various options for providing network access and potential applications (such as Voice over IP and Internet connectivity) to business and residential users. Paraxip and Cygcom reach distribution agreementParaxip Technologies and Markham ON-based Cygcom Integrated Technologies have signed an agreement under which Cygcom will co-market, distribute and support Paraxip’s flagship speech-optimized media gateway to its existing distribution channels. Montreal-based Paraxip develops open and flexible Voice over IP gateway systems. BCE completes sale of BCE EmergisBCE Inc. has satisfied all the conditions required for the transfer of its common shares in BCE Emergis to holders of BCE’s subscription receipts, a group of underwriters led by National Bank Financial and included CIBC World Markets Inc., Scotia Capital Inc. and TD Securities Inc. CANARIE chooses Nortel gearCANARIE Inc. has chosen to use Nortel Networks Corp. optical broadband gear to add a third 10 Gbps wavelength to CA*net 4. As part of the network expansion, Nortel’s Optical Multiservice Edge 6500 was chosen to perform SONET/SDH line termination and cross-connecting functions through CANARIE’s User Controlled Lightpath software. The feature gives end users on CA*net 4 the ability to provision, partition and allocate network links to other users without involving a central management organization. The gear was introduced by Nortel last fall, and the manufacturer estimates that customers can save an estimated 30% to 40% in capital and operational expenses. EXFO introduces new fibre channel test moduleQuebec City-based EXFO Electro-Optical Engineering Inc. introduced on June 14 the Packet Blazer FTB-8520 Fibre Channel test module for the installation, commissioning and maintenance of storage area networks (SANs). The Packet Blazer SAN module sets a new standard for fibre channel field-testing solutions, providing technicians with FC-0, FC-1 and FC-2 level testing capabilities. EXFO will showcase the FTB-8520 Packet Blazer SAN test module at SuperComm 2004 in Chicago. CML intros 911 solution for Voice over IPGatineau QC-based CML Emergency Services has introduced a new controller platform for 911 services that handles emergency calls made from VoIP platforms. Patriot 2.0 promises to provide more information to dispatchers about a caller’s location than older platforms. Alcatel adds more features to North American FTTU portfolioAlcatel is shipping its second generation broadband passive optical network hardware, which it says is now improved with operational as well as price/performance enhancements. Release 2.0 of the fibre-to-the-user gear includes a higher capacity switch fabric and higher capacity network interfaces and access interfaces. The enhanced capacity enables 100 Mbps of throughput per subscriber, and flexibility for interconnection with both IP and ATM core networks. Allstream launches digital pen and paper systemAllstream Corp. has introduced its Digital Ink Solutions, a new business workflow enabler that allows the capture of critical business information from pen and paper. The application offers electronic data capture from pen and paper as an efficient and cost-effective method of accelerating business processes. "Digital Ink transforms familiar pen and paper business activities into an effective tool for accurate and reliable data capture and access using an inexpensive ballpoint digital camera ‘productivity’ pen, sophisticated, but cost competitive ‘smart’ paper, and data transmission and communications hardware and software," reads a June 17 news release. Bell Canada intros $5 ‘unlimited’ U.S./Canada long distanceBell Canada says it is addressing a structural shift in the makeup of its revenues by introducing a new $5 price point for 1,000 minutes of long distance calling throughout Canada and the U.S. when customers sign a two-year contract to also buy two or three digital services including high-speed Internet, wireless calling or a television package. During a conference call to discuss the June 17 announcement, Bell officials told analysts and media that 99% of its customers use fewer than 1,000 minutes, but usually spend between $10 to $15 a month on long distance. Acknowledging the hit to the company’s top line as a result of the price change, officials said the strategy is to move its customers into bundles where there is much greater average revenue per user (ARPU). Around 35% of the company’s customers purchase two products from Bell, and only 12% purchase three or more. The company doesn’t expect to revise its earnings guidance as a result of the move. Rather, it expects a significant uptick in revenues moving forward as customers take up new bundles, including digital services Bell Canada says create 60% to 70% greater profits. The company doesn’t expect the cost of acquisition (COA) to change, however, and says the $400 to $600 COA for each individual product will more or less continue. "We are taking the offensive on this one, proactively addressing the strucutural shift in long distance." Some of the immediate top line hit will be mitigated, the company says, by a $1-billion cost-savings program Bell is implementing over the next two years. Rogers expands suite of home high-speed Internet servicesRogers Cable this month launched its new Rogers Hi-Speed Internet Ultra-Lite service throughout Ontario and New Brunswick. Priced at $19.95 per month, the service offers speeds of up to 64 kbps download and upload, and removes the need to dial in or log on, and doesn’t require a second phone line. Shaw reaches one million Internet subscriber markShaw Communications Inc. announced June 22 that it has signed up one million Internet customers. "Reaching this customer milestone is a reaffirmation of the loyal customers we’re fortunate to have, in both our cable and Internet businesses," said president Peter Bissonnette.

NL Short Takes

News | 06/22/2004 4:00 am EDT

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