Telecom Update #489, July 15, 2005

************************************************************ TELECOM UPDATE ************************************************************ published weekly by Angus TeleManagement Group
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Number 489: July 15, 2005

Publication of Telecom Update is made possible by generous financial support from:

** ALLSTREAM:
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** AVAYA:
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** BELL CANADA:
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** CISCO SYSTEMS CANADA:
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IN THIS ISSUE:

** Summer Schedule ** Telus Unilaterally Imposes New Work Rules ** Mitel IP-PBX Scales Up and Down ** New Supernet Agreements Signed ** Tentative Settlement in Entourage Strike ** Rogers Increases Online Protection ** Bell and Nortel Take Broadband to Chapleau ** Toronto, ITAC Set 3-1-1 Info Meeting ** Study Says VoIP Quality Lags ** Internet Registrar Reviews Governance ** Siemens, Airbus Plan in-Flight Cell Service ** Handsfree Phones Don't Improve Safety ** Ebbers Gets 25 Years ** Cogeco Net Income Rises ** Look Revenue Down, But Losses Cut ** Wireless Growth to Outstrip Wireline ** Correction Navigata

SUMMER SCHEDULE: The next issue of Telecom Update will be emailed to subscribers and posted on our website on Friday, July 29.

TELUS UNILATERALLY IMPOSES NEW WORK RULES: Telus says that beginning July 22 it will implement the terms of the contract it proposed to the Telecommunications Workers Union on April 13, despite the union's rejection of the proposal. TWU president Bruce Bell says that this means, 'we have no choice but to escalate our job action.'

** Last week the Federal Minister of Labour offered to appoint a special mediator to help resolve the Telus-TWU impasse. The TWU agreed, but Telus rejected the proposal.

MITEL IP-PBX SCALES UP AND DOWN: Release 6 of 3300 ICP, Mitel's flagship IP PBX, is said to be cost-effective from as few as 10 users to as many as 1,400 in a single cluster. A networked system can support 65,000 concurrent users.

NEW SUPERNET AGREEMENTS SIGNED: The government of Alberta says it has reached new agreements with Bell Canada and Axia SuperNet focusing on long-term operation of SuperNet, which now connects a majority of schools, hospitals, libraries and government offices in the province. The government has full rights to use the net, but Bell Canada owns the fibre and wireless infrastructure.

** Bell and Axia have signed a new long-term IP Services Agreement, and Bell has purchased five million Axia shares for $2.00 each, bringing its stake in the company to 8.6%.

TENTATIVE SETTLEMENT IN ENTOURAGE STRIKE: Bell Canada and the Communications, Energy and Paperworkers Union have reached a tentative settlement of their contract dispute. Members of the CEP who work for Bell's Entourage subsidiary in Ontario have been on strike since March

24; they are now voting on the proposed agreement.

ROGERS INCREASES ONLINE PROTECTION: Rogers Cable has introduced Rogers Yahoo! Online Protection, including controls on spyware, viruses, and pop-ups, and parental controls. The service is available to all Rogers high-speed Internet customers at no additional charge.

BELL AND NORTEL TAKE BROADBAND TO CHAPLEAU: Bell Canada, Nortel, and the Town of Chapleau have announced a joint initiative to research the impact of broadband on rural and dispersed communities. Nortel will contribute wireless mesh and VoIP technology and Bell will upgrade its fiber network to the town. Project Chapleau will evaluate the technology's impact on economic, healthcare, education and social activity in the community.

** Chapleau is a town of about 3,000 people, about 320 kilometers northeast of Sault Ste. Marie.

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TORONTO, ITAC SET 3-1-1 INFO MEETING: The City of Toronto and the Information Technology Association of Canada will hold an information day for potential suppliers of 3-1-1 municipal information services, on Monday, July 18.

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STUDY SAYS VOIP QUALITY LAGS: Keynote Systems, a U.S. research company says that current commercial Internet telephone services are "not yet up to the standards to which users are accustomed when using standard 'plain old telephone service'." Researchers made 163,000 calls using six VoIP carriers; they report frequent dropped calls and wide variations in voice quality.

INTERNET REGISTRAR REVIEWS GOVERNANCE: The Canadian Internet Registration Authority is seeking public input on proposed revisions to its corporate governance framework. See CIRA's website for details and a response form.

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SIEMENS, AIRBUS PLAN IN-FLIGHT CELL SERVICE: A Siemens-Airbus joint venture says that passengers with GSM cellphones will be able to make and receive calls while traveling on Airbus A320 aircraft in Western European routes, by the second half of 2006. Airbus will install Siemens-made on-board base stations designed to prevent interference with aircraft systems.

HANDSFREE PHONES DON'T IMPROVE SAFETY: An Australian study of actual car accidents, to be published in The British Medical Journal next week, has found that drivers using cellphones are four times as likely to have a serious crash, and that using a handsfree device such as an earphone or speakerphone does not reduce the risk at all.

EBBERS GETS 25 YEARS: Edmonton-born Bernie Ebbers has been sentenced to 25 years in prison for his role in the multi-billion dollar WorldCom accounting fraud. Lawyers for the 63-year-old "telecom cowboy" say they will appeal.

COGECO NET INCOME RISES: Cogeco Cable reports net income of $8.2 million in the three months ended May 31, compared to $1.9 million in the same period last year. The company began selling local telephone service in June: it expects to have 7,000 to 8,000 telephone customers in 2006.

LOOK REVENUE DOWN, BUT LOSSES CUT: Broadband wireless carrier Look Communications reports third quarter revenue of $9.2 million, compared to $10.3 million last year. It had a net loss of $2,1 million, an improvement over the $3.2 million lost a year ago.

WIRELESS GROWTH TO OUTSTRIP WIRELINE: The Virginia- based Telecommunications Industry Association says that the total telecom market outside of the United States will grow 10.6% a year compounded over the next four years, but wireline will grow only 1.9%. By 2008 there will be 1.9 billion non-U.S. wireless phones in service, outnumbering wireline phones by 69%.

CORRECTION NAVIGATA: Last week's Telecom Update misidentified Navigata's access-independent IP telephony service. The correct brand name is "Webcall."

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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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