Telecom Update #544, September 1, 2006

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544: September 1, 2006

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IN THIS ISSUE:

** CRTC to Review Regulatory Thresholds ** CRTC Lists Phone Customer Rights ** Nortel to Sell UMTS Access Business ** CRTC Rejects Bid to Block Hate Sites ** BCE Backs Away from Telesat Sale ** Mitel Announces Round of Layoffs ** Globemedia Reorganization Closes ** CATA Names Telecom Associate ** Hackers Access Credit Card Info on AT&T Website ** Google to Offer Skype Calls ** ATB Financial Signs with Telus for VoIP ** Unionists Sign With Telus Quebec ** Videotron Wireless Expands to Gatineau ** Inter-Tel Rejects Buyout Offer ** Save $100 on Enterprise Networks Conference

CRTC TO REVIEW REGULATORY THRESHOLDS: Responding to the Federal Government's request for a review of local service regulation (see Telecom Update #529), the CRTC has reaffirmed its Voice over IP regulatory regime while initiating a reassessment of two local service regulatory thresholds.

** CRTC Telecom Decision 2006-53 declines to deregulate VoIP service, as Canada's major telcos had requested, and=20 reaffirms that VoIP is a telephony service. (See Telecom Update #481, 490)

** The Decision states that recent market share data warrant a review of the 25% market-share threshold that incumbent phone companies must lose in order to qualify for regulatory forbearance. Also up for review is the 20% threshold for removing the local service winback rule. (See Telecom Update #524)

** Dissenting opinions were filed by Commissioners Barbara Cram, Stuart Langford, and Andree Noel.

** Telecom Public Notice 2006-12 initiates a proceeding to reassess the two thresholds. To take part, register by September 11.

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CRTC LISTS PHONE CUSTOMER RIGHTS: The CRTC has issued a "Statement of Customer Rights" with respect to local phone service and directed the telcos to publish it on their websites and in their White Pages directories. Customer rights are listed under 16 headings including local service, choice of provider, confidentiality, and refund for billing errors.

** These rights are addressed in telco "terms of service," but the CRTC is concerned these documents "may be difficult for consumers to comprehend."

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NORTEL TO SELL UMTS ACCESS BUSINESS: Nortel Networks has agreed to sell the access segment of its UMTS business to Alcatel for US$320 million. UMTS is a "third generation" wireless technology developed as a successor to GSM. Nortel is keeping its GSM, CDMA, and core UMTS divisions.

CRTC REJECTS BID TO BLOCK HATE SITES: The CRTC has rejected a request by Richard Warman, an Ottawa lawyer, that it permit carriers to block access to two U.S.-based neo-Nazi websites. Warman said the sites call for "violent action" against him and violate Canadian law against "communicating hate" and "advocating genocide."

** In the Commission's view, permitting the sites to be blocked would be inappropriate without a public process to "allow for consideration of the broader policy and legal issues."

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BCE BACKS AWAY FROM TELESAT SALE: According to published reports, BCE has failed to reach agreement with potential buyers of its Telesat unit and has decided instead to sell a minority stake in the satellite company through an Initial Public Offering. (See Telecom Update #534)

MITEL ANNOUNCES ROUND OF LAYOFFS: Mitel Networks has eliminated an unspecified number of jobs as part of its "transition to an IP communications company." At the end of April, Mitel had 1,650 employees, 13% fewer than two years earlier.

** Mitel says its IP-based product revenues in fiscal 2006 were 48% higher than in the previous year.

GLOBEMEDIA REORGANIZATION CLOSES: Bell Globemedia says its new ownership structure is now in effect, following approval of the deal by the Competition Bureau. The new Board is chaired by Geoffrey Beattie of Woodbridge, now the largest shareholder. BCE has received $1.3 billion from the reduction of its stake in the media company to

20%. (See Telecom Update #538)

CATA NAMES TELECOM ASSOCIATE: CATAAlliance has named Jean-Guy Rens, a telecom writer and consultant, as Research Executive and member of its Governing Council. Rens is President of ScienceTech Communications.

HACKERS ACCESS CREDIT CARD INFO ON AT&T WEBSITE: AT&T says that hackers have obtained credit card and other personal data on approximately

19,000 customers who had purchased DSL equipment from the telco's online store. AT&T has offered to pay for credit monitoring of affected customers. (See Telecom Update #543)

GOOGLE TO OFFER SKYPE CALLS: Google has agreed to post click-to-call buttons enabling users to make calls to its advertisers using EBay's Skype service.

** Google says that it will sell a business version of its email and calendar software by year-end.

ATB FINANCIAL SIGNS WITH TELUS FOR VoIP: ATB-Financial has signed a three-year, $8.3 million contract with Telus for provision of IP-based voice and data services.

UNIONISTS SIGN WITH TELUS QUEBEC: About 1,000 CUPE members in Quebec have ratified a new contract with Telus. The contract introduces a "variable pay component tied to the company's success," which will provide up to 5% of basic salary by 2009.

VIDEOTRON WIRELESS EXPANDS TO GATINEAU: Videotron now offers its cellular service to the 250,000 residents of the Gatineau valley in Quebec. (See Telecom Update #541)

INTER-TEL REJECTS BUYOUT OFFER: Inter-Tel, a U.S.-based PBX and key systems maker, has turned down an offer to purchase from a group headed by its founder, Steven Mihaylo, and is continuing a "review of the Company's strategic options." (See Telecom Update #543)

SAVE $100 ON ENTERPRISE NETWORKS CONFERENCE: September 8 is the last day to obtain the $100 early-bird discount for registrants to the October 24-25 Enterprise Networks conference in Toronto.

** The conference program, sponsored by Angus Dortmans Associates, aims to enable telecom and IT professionals to understand the chaotic enterprise networks landscape and assemble the insights needed for better decisions.

** For more information, email Mona Polhill at snipped-for-privacy@enterprisenetworks.ca . To register online, visit

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COPYRIGHT AND CONDITIONS OF USE: All contents copyright 2006 Angus TeleManagement Group Inc. All rights reserved. For further information, including permission to reprint or reproduce, please e-mail snipped-for-privacy@angustel.ca.

The information and data included has been obtained from sources which we believe to be reliable, but Angus TeleManagement makes no warranties or representations whatsoever regarding accuracy, completeness, or adequacy.

Opinions expressed are based on interpretation of available information, and are subject to change. If expert advice on the subject matter is required, the services of a competent professional should be obtained.

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