Telecom Update #502, October 21, 2005

*********************************************************** TELECOM UPDATE ************************************************************ published weekly by Angus TeleManagement Group
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Number 502: October 21, 2005

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

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** Telus Exec Jumps to Bell ** Nortel Recruits a CEO, Again... ** ...and Motorola Sues Him ** Allstream Challenges Rogers' Plan to Move LD ** CRTC Expands VoIP 9-1-1 Notification Rules ** Bell May Vary VoIP Prices by Province ** Telecom Policy Forum to Be Held Next Week ** CRTC to Continue Telecom Industry Reports ** Videotron Hiring to Meet Phone Demand ** Telus Must File Dark Fibre Tariff ** Mitec Weighs Strategic Alternatives ** Treo to Offer BlackBerry Connect ** RIM Seeks Stay in Court Appeal ** Telus Strengthens Security Portfolio ** NEC Intros Small Business VoIP System ** Celestica Sales Down 8% ** TIW Shares to Be De-Listed ** Toronto VoIP User Group Formed ** IIC Sets Conference Program


TELUS EXEC JUMPS TO BELL: George Cope, President and CEO of Telus Mobility, will join Bell Canada as President and Chief Operating Officer in January. His surprise resignation from Telus was effective this past Tuesday evening.

** Bell's Enterprise, Small and Medium Business, Residential, and Wholesale units will report directly to Cope. He will not be responsible for Bell Mobility.

** Stephen Wetmore now has overall responsibility for improving Bell's cost structure: his new title is Group President Corporate Performance and National Markets.

NORTEL RECRUITS A CEO, AGAIN... Mike S. Zafirovski, who was Chief Operating Officer of Motorola from 2002 until January 2005, will join Nortel Networks as President and Chief Executive Officer on November

  1. He replaces Bill Owens, who has held the post for only 19 months.

... AND MOTOROLA SUES HIM: One day after Nortel's announcement, Motorola filed suit against Zafirovski in Illinois, alleging that joining Nortel would violate non-compete agreements he signed on eight separate occasions. Motorola wants the court to prevent him from taking the position, and to order him to return a US$11 million payment he received when he left the number 2 cellphone maker.

ALLSTREAM CHALLENGES ROGERS' PLAN TO MOVE LD: MTS-Allstream says it is preparing a court application to block Rogers Communications from moving its long distance traffic from Allstream to the former Call-Net, which Rogers acquired this year. Allstream says Rogers is obligated by contract to continue using Allstream for LD until the end of 2006.


2005-61 orders all VoIP providers to notify current customers about the availability, characteristics, and limitations of their 9-1-1/E9-1-1 service within 90 days, and to notify new customers before providing service. The information cannot be buried in small print, and must be provided in marketing, point-of-sale and implementation materials.

** Customers must be re-informed of 9-1-1 limitations at least once a year.

** Carriers must include these conditions in their new and existing contracts with VoIP resellers.

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BELL MAY VARY VoIP PRICES BY PROVINCE: CRTC Telecom Decision 2005-62 gives interim approval to Bell Canada's application to charge different rates in Ontario and Quebec for its access-dependent "Digital Voice" VoIP service (see Telecom Update #496, 498).

** The ruling does not apply to Bell's access-independent "Digital Voice Lite."

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TELECOM POLICY FORUM TO BE HELD NEXT WEEK: The Telecom Policy Review panel, appointed in April, is hosting a three-day public forum October

24-26 at the Gatineau Congress Centre. The forum will examine a wide range of telecom policy and regulatory issues. (See Telecom Update #477, 485, 490)

** CPAC will provide a live webcast of the proceedings, and will rebroadcast them on TV at a later time.

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CRTC TO CONTINUE TELECOM INDUSTRY REPORTS: The CRTC says its annual reports on the state of the Canadian telecom industry have proved so useful that it will continue issuing them, even though the five-year Cabinet order requiring the reports expires this year. To improve timeliness of reporting, service providers must submit data by March of each year.

** The CRTC's 2005 monitoring report will be published this month.

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VIDEOTRON HIRING TO MEET PHONE DEMAND: Videotron says it will hire 300 new employees for customer service, technical support, and other areas. The cableco says the 10% increase in staff is driven by an increase in customers, "including those generated by the launch of residential telephone service."

TELUS MUST FILE DARK FIBRE TARIFF: CRTC Telecom Decision 2005-63 orders Telus Communications to file a general tariff for optical fibre, subject to the availability of unused and unallocated facilities.

** If Aliant, MTS Allstream or SaskTel decide to provide dark fibre, they must file a general tariff for the service.

** The Commission has decided not to deregulate dark fibre on routes where IX private lines are already forborne.

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MITEC WEIGHS STRATEGIC ALTERNATIVES: Montreal-based Mitec Telecom, which makes radio equipment for the wireless and satellite industries, has hired Orion Securities to help it assess "strategic alternatives," including the possible sale of the company.

** Mitec has named a new executive team, headed by CEO Keith Findlay. (See Telecom Update #490)

TREO TO OFFER BLACKBERRY CONNECT: Palm Inc. says it is working with Research In Motion to add RIM's BlackBerry Connect software to the Palm Treo 650 smartphone early in 2006.

RIM SEEKS STAY IN COURT APPEAL: Research In Motion has asked a U.S. appeals course to block proceedings in NTP's patent-infringement lawsuit while RIM appeals the case to the U.S. Supreme Court.

TELUS STRENGTHENS SECURITY PORTFOLIO: Telus's portfolio of managed security solutions now includes End Point Security Agent, which analyzes "suspicious IT behavior" to identify worms and viruses.

NEC INTROS SMALL BUSINESS VoIP SYSTEM: NEC Unified Solutions has expanded its Univerge product line with the SV7000 MPS, an IP-PBX for the Small/Medium Business market. The system, which can grow from 50 to 500 IP clients, supports both NEC Dterm telephones and SIP-standard devices.

CELESTICA SALES DOWN 8%: Toronto-based Celestica, which makes telecom and other electronic components, reports third-quarter sales of US$1.99 billion, 8.4% less than the same period a year ago. The net loss of $19.6 million was Celestica's ninth in the past ten quarters. (See Telecom Update #466)

TIW SHARES TO BE DE-LISTED: Telesystem International Wireless plans to have its shares de-listed from the TSX Ventures Exchange by the end of November, as part of the company's liquidation. Earlier this year TIW sold its major European assets to Vodafone for US$3.5 Billion: it distributed $3.58 billion to shareholders on September 27, leaving it with cash and short-term investments of $260 million. (See Telecom Update #473)

TORONTO VoIP USER GROUP FORMED: The inaugural meeting of an organization of business users of VoIP products and services will be held in Toronto on November 1. For information contact Toronto VoIP Users Group:

IIC SETS CONFERENCE PROGRAM: The Canadian Chapter of the International Institute of Communications will hold its fifth annual conference at the Ottawa Congress Centre, December 12-13. The theme of this year's meeting is "Broadband: Are We Ready?" See the IIC'S website for the conference agenda and registration information.

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