Telecom Update #495, September 2, 2005

************************************************************ TELECOM UPDATE ************************************************************

published weekly by Angus TeleManagement Group

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Number 495: September 2, 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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** ERICSSON:
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** MITEL NETWORKS:
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** ROGERS TELECOM:
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** UTC CANADA:
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IN THIS ISSUE:

** Katrina Cuts Phone Service to Thousands ** CRTC Stats Show Incumbents Still Dominate Local Service ** Bell Creates Separate Mobility Group ** Details Released on Policy Review Hearings ** Telesat Anik F1R to Launch Tuesday ** Guelph, Waterloo Utelcos Merge ** Study Finds No Cellphone Cancer Link ** CRTC Acts on Vancouver Access Issues ** Cogeco Offers Phone Service to Non-Customers ** BCE Invests in Broadband Over Home Electrical Wire ** Nortel Adds Microsoft Call Control to CS 1000 ** 3com Intros Telecommuting Module ** Intel, Microsoft Back RIM in Patent Case ** Harris to Buy Leitch Technology ** Rogers Telecom Seeks to Cut Debt

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KATRINA CUTS PHONE SERVICE TO THOUSANDS: No exact figures are yet available, but it appears that hundreds of thousands of homes and businesses on the U.S. Gulf Coast lost phone service as a result of Hurricane Katrina and the subsequent flooding. In addition to near-total loss of local and cellular service in New Orleans, several major switching hubs were damaged, cutting long distance service as far away as Florida.

CRTC STATS SHOW INCUMBENTS STILL DOMINATE LOCAL SERVICE: To assist participants in the local forbearance proceeding (See Telecom Update #479, 486) the CRTC has released some of the local market data that will appear in its October report on the status of competition in telecom. Some highlights (all figures are for the end of 2004):

** Nationally, incumbent telcos provide 96.8% of residential lines and 88.4% of business lines.

** Two-thirds of the competitive business lines are provided by incumbents operating outside their home territory--e.g. Bell Canada operating in B.C. and Alberta.

** Competition is strongest in Nova Scotia, where competitors provide 15% of all local lines. (The major competitor in Nova Scotia is cableco EastLink.)

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BELL CREATES SEPARATE MOBILITY GROUP: Bell Mobility, which has been part of Bell's Consumer Markets Group, is now a separate organization headed by Robert Odendaal, who reports directly to CEO Michael Sabia. Other changes announced today include:

** Kevin Crull, who joined Bell this year after four years at AT&T, is now President, Residential Services, a new organization that incorporates consumer wireline, high- speed Internet and video services.

** Pierre Blouin, a 20-year veteran who has been Consumer Markets Group President since May 2003, has decided "to leave Bell Canada to pursue other career opportunities."

** Alek Krstajic, former president of Bell Mobility, will work in the Office of the CEO until "a new senior executive assignment" is announced.

DETAILS RELEASED ON POLICY REVIEW HEARINGS: The Telecom Policy Review panel (see Telecom Update #490) will hold two public consultations this fall, to supplement two rounds of written submissions.

** A forum on broadband access will be held in Whitehorse on September 9, followed by an online discussion until September 16. To participate in the live webcast and/or the online discussion, register at the panel's website.

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** A three-day symposium on a wider range of topics will be held in Ottawa on October 24-26. Those wishing to attend may request an invitation, but spaces are limited. A live webcast will also be provided.

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TELESAT ANIK F1R TO LAUNCH TUESDAY: On September 8, Telesat Canada's first European-built satellite, the Anik F1R, will be launched in Baikonur, Kazakhstan. The new satellite will provide telecom, TV, and global positioning services.

GUELPH, WATERLOO UTELCOS MERGE: FibreTech telecommunications, owned by three Waterloo region hydro companies and Guelph FibreWired, owned by Guelph Hydro have merged. The combined company, Atria Networks, owns over 1,000 kilometers of fibre.

STUDY FINDS NO CELLPHONE CANCER LINK: The largest study to date concludes that ten years of cellphone use produces no increased risk of tumors in nerves near the ear. The U.K. Institute of Cancer Research found no relationship between the risk of acoustic neuroma and years of mobile phone use, time since first use, the number of calls, or hours of use.

CRTC ACTS ON VANCOUVER ACCESS ISSUES: The CRTC has issued letters regarding two municipal access disputes in the City of Vancouver:

** MTS Allstream is given permission to construct a transmission line at Station Street, subject to some conditions. The Commission says it will rule soon on the carrier's January 2005 application for a long-term, city- wide access agreement (see Telecom Update #466).

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** The Commission provides guidelines to Shaw and Vancouver for negotiating an access agreement, recommending a 15- year term and the Ledcor principles. If the parties don't agree by November 1, the Commission is prepared to impose access rules.

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COGECO OFFERS PHONE SERVICE TO NON-CUSTOMERS: Cogeco Cable has extended its Digital Phone service to Windsor, Ontario and Saint-Hyacynthe, Quebec. In addition, phone service in Burlington, Oakville, and Windsor will now be available to all residents in served areas, rather than only to Cogeco's Internet customers.

BCE INVESTS IN BROADBAND OVER HOME ELECTRICAL WIRE: The Toronto Star says that BCE Capital has invested US$5 million in Florida-based Intellon Corp, whose technology uses a home's electrical wiring to deliver a broadband network.

NORTEL ADDS MICROSOFT CALL CONTROL TO CS: Nortel Networks says it has integrated Microsoft's Office Communicator and Office Live Communication Server into Nortel's Communications Server 1000. The resulting "converged office solution" will be in beta trials this month, and generally available later in 2005.

** Nortel has also announced new releases of CS 1000, CallPilot, and MCS 5100, as well as four new phones.

3COM INTROS TELECOMMUTING MODULE: 3Com has introduced a SIP-compliant IP Telecommuting module that enables IP conferencing, messaging, and contact centre applications to be used outside corporate LANs. The module uses technology from Sweden-based Ingate Systems.

INTEL, MICROSOFT BACK RIM IN PATENT CASE: Intel and Microsoft have made submissions to a Washington DC appeals court, supporting Research In Motion's appeal of patent infringement rulings.

** The Canadian government also backs RIM, arguing that the U.S. court has no jurisdiction, because RIM's actions took place in Canada, at RIM's network control. (See Telecom Update #487)

HARRIS TO BUY LEITCH TECHNOLOGY: Florida-based Harris Corp. has acquired Leitch Technology Corp. of Toronto for $450 million. Both companies make digital network broadcasting systems.

ROGERS TELECOM SEEKS TO CUT DEBT: Rogers Telecom (formerly Call-Net Enterprises) has issued a cash tender to buy back outstanding notes worth US$222.9 million, in order to eliminate associated interest expenses.

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COPYRIGHT AND CONDITIONS OF USE: All contents copyright 2005 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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