NL Update

CRTC approves relief plan for 613 and 819 area codesThe CRTC has approved the relief implementation plan for area codes 613 and 819, as proposed by the Numbering Plan Area 613/819 Relief Planning Committee (RPC). The approved plan includes the phasing in of permissive 10-digit local dialing from June 17, 2006 and ending June 24, 2006 and the phasing-in of mandatory 10-digit local dialing from Oct. 21, 2006 and ending Oct. 28, 2006. The CRTC has asked the RPC to file by Sept. 15 a revised plan that includes a standard announcement text to be used by all telecommunications service providers in area codes 613 and 819 during the permissive 10-digit local dialing period and a standard announcement text to be used during the mandatory 10-digit local dialing period (Telecom Decision 2004-55).MTS anticipates restructuring and integration of Allstream to cost $31 millionManitoba Telecom Services Inc. (MTS) states it will incur $31 million in expenses in conjunction with restructuring and integration following its acquisition of Allstream, including employee severances and facility consolidation expenses. The company also states in its financial results for the second quarter ended June 30 that it expects the restructuring and integration to be “substantially completed” in 2005. EBITDA (Earnings before interest, taxes, amortization and gain on sale of investment in Bell West) increased by 20.9% to $137.1 million in the second quarter. The results reflect the consolidation of Allstream’s operations, effective June 4. During the second quarter, MTS’s Allstream (National) division contributed EBITDA of $20.3 million. Revenues by Internet services offered by the MTS division were $13.2 million in the second quarter and totaled $25.9 million for the year-to-date, representing strong improvements of 18.9% and 19.9%. The financial results note that Internet revenues from consumer high-speed service have been positively impacted by select price increases. In the second quarter, Allstream contributed $6.4 million to the company’s Internet revenue total. But revenues from MTS’s long-distance voice services declined by $5.4 million to $29.9 million during the second quarter. “In the residential segment, we have experienced decreased revenues as a result of increased competition from dial-around competitors, wireless substitution, and customer migration to lower priced plans,” notes the financial results. MTS concludes sale of investment in Bell WestManitoba Telecom Services (MTS) announced August 3 that it had received gross proceeds of $645 million from Bell Canada in connection with the sale of its 40% ownership interest in Bell West Inc. As a result of the transaction, Bell Canada has assumed 100% ownership of Bell West. MTS stated that it would use the proceeds from the sale of its investment in Bell West to fund a substantial issuer bid of about $800 million. MTS announced the launch of that issuer bid on August 12.Nortel cuts 10% of workforce, unveils new strategy to leverage network convergenceEmbattled Nortel Networks Corp. on August 19 announced that it would cut 10% of its workforce under new strategic initiatives. The new business model includes a streamlined organizational structure that the company states is intended to build on its market leadership in developing converged networks. As well, the company announced the termination for cause of seven finance executives, and provided an update on its financial restatements and revisions to prior period results. CRTC denies SaskTel’s request for forbearance from regulation of voice messaging servicesThe CRTC on August 5 denied a request by Saskatchewan Telecommunications (SaskTel) for forbearance from regulation of voice messaging services (Telecom Decision 2004-54). In the decision, the commission states, “SaskTel submitted that there were no entry barriers into the VM market. However, the commission notes that SaskTel did not demonstrate rivalrous behaviour by market participants, for example, by providing evidence that SaskTel’s market share is decreasing while market shares of competitors are increasing, or by comparing trends in pricings of obtaining VM services from the company and from competitors.” It adds, “Since SaskTel has not addressed several matters, including competitive alternatives for single-line residence and business off-hook messaging, the commission considers that SaskTel has not demonstrated in its application that there is sufficient competition to protect user interests if SaskTel were to provide VM services on a forborne basis. Accordingly, the commission denies SaskTel’s application for forbearance form regulation of the company’s VM services.”SaskTel asked that the CRTC forbear voice messaging pursuant to section 34 of the Telecommunications Act. It wanted the commission to refrain from regulating its VM services so that it could respond more quickly to competitive developments. The telco stated that its VM services faced competition from answering machines, telephone sets with built-in messaging capabilities, stand-alone VM systems, VM capabilities of wireless services, PC-based software solutions, and text-based messaging and information services, such as fax and email. Teliphone launches North American IP telecommunication cooperative systemUnited American Corp.’s wholly owned subsidiary Teliphone Inc. will launch the first North American IP telecommunication cooperative system. Teliphone subscribers can pay $12.95 per month to become an AmericaIPOne cooperative member, which will allow them to call anywhere in North America as though it were a regular local call at no additional cost. The cooperative system serving subscribers based on the sharing of the IP telecommunication capacity on the Teliphone global network is currently being tested with selected users. It will be available to Teliphone subscribers on September 1. AmericaIPOne, provided and managed by United American Telecom Inc., has an initial switching capacity of about 50 millions minutes of telecommunication throughout North America.NHC closes $2-million financing with SF Capital PartnersNHC Communications Inc. has completed a US$2-million equity financing that the company will use for working capital and corporate development purposes. The U.S. institutional investor SF Capital Partners will also have the right to invest up to another US$2 million in NHC, subject to regulatory restrictions, for a period ending on the nine-month anniversary of closing. NHC, which has offices in Montreal PQ and Paris, is a provider of automated mainframe solutions for the copper-based telecommunications and Internet access markets.Bell Canada launches private IP network for small and medium businessesBell Canada on August 3 launched ProConnect, a private IP-based network that it says will allow small and medium businesses (SMBs) to share information easily and securely. Bell Canada says the service is ideal for businesses with multiple branch locations that need to exchange confidential information such as customer data, sales transactions and inventory updates with employees, suppliers and business partners across the country. ProConnect is part of Bell’s Total IP suite of Internet Protocol products and will be available in 80% of Bell Canada’s territory served with DSL. The basic package for ProConnect starts at a monthly fee of $150, which includes the equipment, connectivity and management. Bell Canada implements global IP virtual private network for Foreign AffairsBell Canada will deploy a fully managed, end-to-end global IP communications solution for the Department of Foreign Affairs and International Trade under a three-year $68-million contract. Bell Canada will design, deliver, install, integrate and manage all engineering, implementation and network monitoring services for MITNET 2004, the global network that provides international voice and data communications for the government of Canada to over 160 locations in the world. TigerTel receives approval to issue shares to directorsTigerTel, a national telecommunications organization specializing in call center and voice processing services across Canada, announced August 10 that the TSX Venture Exchange had granted it approval to issue 65,000 shares to its independent directors as partial payment for their services. The shares have a deemed price of 20 cents per share for a total value of $13,000. TELUS becomes Platinum sponsor of IP World Canada conferenceTELUS Corp. has become a Platinum event sponsor of the IP World Canada 2004 conference, running Oct. 4-6, 2004 at the Toronto Congress Center. The conference will focus on Internet Protocol (IP) based communications, integrated multimedia (data, voice and video) IP-based networks and value added IP-based solutions.INTERNATIONALU.S. broadband connections go over 50% mark for web surfers: Nielsen/NetRatingsBroadband connections for the first time reached 51% of the American online population at home during the month of July, as compared to 38% last July, according to Nielsen/Net Ratings. According to the firm that measures Internet audiences, 63 million web users connected to the Internet via broadband during July 2004 as compared to 61.3 million accessing the Internet through narrow band. Overall, broadband connections grew 47% year-over-year, while narrow band dropped 13%.FCC seeks comment on rules for high-cost universal service supportThe Federal Communications Commission (FCC) is seeking comment on issues relating to the high-cost universal support mechanisms for rural carriers and the appropriate rural mechanism. In particular, the commission is asking whether a universal service support mechanism for rural carriers based on forward-looking economic cost estimates or embedded costs would most efficiently and effectively achieve the goals of the Telecommunications Act. The FCC is asking for public comment on whether these rules continue to fulfill their intended purposes, whether modifications are warranted, and if so, how the rules should be changed. Comments are due by October 15.

NL Update

News | 08/23/2004 4:00 am EDT

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