Telecom Update #499, September 30, 2005

************************************************************ TELECOM UPDATE ************************************************************ published weekly by Angus TeleManagement Group Number 499: September 30, 2005

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

** AVAYA: ** BELL CANADA: ** CISCO SYSTEMS CANADA: ** ERICSSON: ** MITEL NETWORKS: ** NEC UNIFIED SOLUTIONS: ** ROGERS TELECOM: ** VONAGE CANADA:

************************************************************

IN THIS ISSUE:

** Carriers Debate Local Deregulation ** Telus and TWU Resume Negotiations ** Alberta SuperNet Now Complete ** Bell Buys Quebec Integrator ** RIM Shareholders Hard to Please ** Nortel Reorganizes Again ** Ottawa Updates PCS Spectrum Availability ** Telehop Intros Business VoIP Service ** Yak Sales Up, Profits Down ** Telemarketing Scammers Shut Down ** Allstream Launches Hosted IP Contact Centre ** Most U.S. VoIP Customers Accept 9-1-1 Limits ** Report Sees Phone Gains for Cablecos ** Conference Adds Telecom Management Tutorials

============================================================

CARRIERS DEBATE LOCAL DEREGULATION: This week's CRTC hearings on criteria for deregulating the incumbent telcos' local telephone service went into overtime: the commission held evening sessions and extended the sitting to Friday in order to hear all the submissions. As expected, the contentious issues were what percentage market share loss would trigger deregulation, and how large an area should be included in calculating the percentage.

** Full transcripts of the hearings are posted at TELUS AND TWU RESUME NEGOTIATIONS: On Tuesday, for the first time in three months, Telus and the Telecommunications Workers Union met at the bargaining table. CEO Darren Entwistle has agreed to participate personally, and both parties have imposed a news blackout on the talks, which are being held in the Toronto area.

ALBERTA SUPERNET NOW COMPLETE: Alberta SuperNet is now connected to

4,200 learning and health facilities, and to government offices in 529 communities. Prime contractor Bell Canada says SuperNet's focus is now shifting to the development and delivery of multimedia applications.

BELL BUYS QUEBEC INTEGRATOR: Bell Canada has acquired The Createch Group, a Quebec-based information systems integrator that specializes in business process optimization. Createch's 160 employees will work with Bell's enterprise wireless data group.

RIM SHAREHOLDERS HARD TO PLEASE: This week, Research In Motion made a deal to use a new Intel processor in future BlackBerry devices, obtained another favorable ruling from the U.S. Patent Office in its dispute with NTP Inc, and released second quarter results that showed sales up 58% and profits up 57%. Despite that, RIM shares fell more than 10%.

NORTEL REORGANIZES AGAIN: Nortel has reorganized its product, technology, services, operations, and sales groups into two product divisions -- Enterprise Solutions and Packet Networks led by Steve Slattery, and Mobility and Converged Core Networks led by Richard Lowe -- as well as four region-based marketing divisions.

** Malcolm Collins, who has been president of the Enterprise Division, is leaving the company.

OTTAWA UPDATES PCS SPECTRUM AVAILABILITY: Interested in becoming a cellular carrier? There's unused PCS spectrum in parts of B.C., Saskatchewan, Quebec, and New Brunswick: it will be assigned to applicants on a first-come-first-served basis. Industry Canada has posted an updated summary at

TELEHOP INTROS BUSINESS VoIP SERVICE: Toronto-based Telehop Communications, known primarily for dial-around (1010) long distance service, has introduced a business version of its VoIP-based telephone service. Starting at $53.99/line/month, the SOHO version of Broadtalk includes a 416 number, unlimited calling to most of Ontario and the Montreal region, 1,500 Canada/U.S. LD minutes a month, and various calling features.

YAK SALES UP, PROFITS DOWN: Another dial-around operator, Yak Communications, reports revenue of US$92.7 million for the year ended June 30, 15% higher than the previous year. Net earnings declined 16% to $4.18 million. Between April and June, 905,000 customers used the service.

TELEMARKETING SCAMMERS SHUT DOWN: Telemarketing operations at four locations in Toronto and Calgary were raided and shut down on September 22 and 27, and criminal charges have been laid. The Competition Bureau says the boiler rooms ran scams that offered pre-approved credit cards to American consumers with poor credit history.

ALLSTREAM LAUNCHES HOSTED IP CONTACT CENTRE: Allstream has introduced a managed IP contact centre service based on Cisco technology that allows agents to interact with customers voice, email, web chat, and fax.

MOST U.S. VOIP CUSTOMERS ACCEPT 9-1-1 LIMITS: Most of the 2.7 million U.S. Internet phone subscribers have said they understand and accept the limitations of 9-1-1 service on these phones. The Federal Communications Commission had ordered VoIP providers to disconnect any customers who had not responded positively by September 28; it has now extended this deadline again, by another month.

REPORT SEES PHONE GAINS FOR CABLECOS: A new report from the Convergence Consulting Group predicts that Canadian cable TV companies will capture 16% of residential phone lines by the end of 2007, and

27% by 2009. By contrast, the report says, the telcos will get only 4% of the TV market by 2007 and 9% by 2009.

** For more information on the report, see

CONFERENCE ADDS TELECOM MANAGEMENT TUTORIALS: The first day of year's Telemanagement Live conference (Toronto, October 17-19) features six new in-depth tutorials for managers of enterprise telecommunications and networking. Topics:

** IP-Based Convergence How to Make the Right Decision ** Telecom Cost Control Reducing Your Bills Without Sacrificing Service ** Single or Multiple Vendors Selecting the Better Approach ** Transitioning to IP The Megatrade Story ** Managing Change in the Telecom Industry ** IP Security The Threat and Risk Assessment

Telecom Update subscribers who register online now will receive a $200 discount on an All Access pass, including all sessions and meals and a ticket to the Telecommunications Hall of Fame Dinner. To qualify, register at Telemanagement Live website

enter AMBP95 in the "promotional code" field.

============================================================

HOW TO SUBMIT ITEMS FOR TELECOM UPDATE

E-mail snipped-for-privacy@angustel.ca and snipped-for-privacy@angustel.ca

===========================================================

HOW TO SUBSCRIBE (OR UNSUBSCRIBE)

TELECOM UPDATE is provided in electronic form only. There are two formats available:

1. The fully-formatted edition is posted on the World Wide Web late Friday afternoon each week at
   formatting link

1. The e-mail edition is distributed free of charge. To subscribe, send an e-mail message to: join-telecom snipped-for-privacy@nova.sparklist.com To stop receiving the e-mail edition, send an e-mail message to: leave-telecom snipped-for-privacy@nova.sparklist.com Sending e-mail to these addresses will automatically add or remove the sender's e-mail address from the list. Leave subject line and message area blank.

We do not give Telecom Update subscribers' e-mail addresses to any third party. For more information, see

===========================================================

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.