Telecom Update #503, October 28, 2005

************************************************************ TELECOM UPDATE ************************************************************ published weekly by Angus TeleManagement Group
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Number 503: October 28, 2005

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

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** MITEL NETWORKS:
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IN THIS ISSUE:

** Amended Do-Not-Call Bill Goes to the Senate ** Telus to Hire 800? ** Rogers Buys Nortel Brampton HQ ** Bell Nordiq Eyes Thunder Bay Telco ** Bell Digital Voice Offered in Montreal ** AT&T Name to Survive ** U.S. Courts Decline to Stay RIM Proceedings ** FCI Offers Fax-to-Email ** Stephenson Named to CIPA Hall of Fame ** Sierra Names New CEO ** Rogers Sales Up 43% ** Internet, Wireless Boost Aliant Sales ** Shaw Profit Doubles ** Cogeco Cable Sales, Profits Rise ** Avaya Profits Soar

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AMENDED DO-NOT-CALL BILL GOES TO THE SENATE: The federal government's bill to create a mandatory "do not call" registry for telemarketers is moving to the Senate for final review. The bill has been extensively amended since it was tabled last fall: it now exempts politicians, polling companies, newspapers, charities, and businesses calling customers within 18 months of a previous transaction or six months after an inquiry. (See Telecom Update #462, 478, 479)

TELUS TO HIRE 800? The Vancouver Sun reports that Telus Corporation plans to hire 350 new technical employees in 2006 and 450 more by

2008, to support Telus's planned moves into IP telephone service and IP television.

ROGERS BUYS NORTEL BRAMPTON HQ: Rogers Communications is paying $100 million for Nortel Networks' headquarters in Brampton, Ontario, which contains one million square feet on 63 acres of land. Nortel plans to lease space in the Brampton facility for now and then move to a new corporate HQ in the Toronto area.

BELL NORDIQ EYES THUNDER BAY TELCO: Bell Nordiq Group has agreed with TBayTel (Thunder Bay Telephone) to begin a 45-day period of discussions and due diligence "regarding the terms of a possible partnership."

BELL DIGITAL VOICE OFFERED IN MONTREAL: Digital Voice, Bell Canada's service that converts an existing standard phone line to VoIP using facilities in the Bell switching centre, is now available in Montreal. Local service, including voice mail and other features, is $35/month. Bell charges $40 for the same service in Toronto. (See Telecom Update #496)

** Quebecor Media, on behalf of its subsidiary Videotron, has complained to the CRTC that by offering Digital Voice only in Montreal, Bell is engaged in "illegal geographic targeting." Quebecor wants the CRTC to order Bell to make DV available throughout its operating territory.

AT&T NAME TO SURVIVE: SBC Communications says it will change its name to AT&T when its acquisition of the long distance carrier is completed later this year. SBC began life as Southwestern Bell, which split off from AT&T in 1984. It subsequently acquired two other Baby Bells, Ameritech and Pacific Bell.

U.S. COURTS DECLINE TO STAY RIM PROCEEDINGS: Both the U.S. Supreme Court and a federal appeals court have denied Research In Motion's motion that proceedings in RIM's patent dispute with NTP Ltd. be stayed until the Supreme Court decides whether to hear RIM's appeal. (See Telecom Update #501)

FCI OFFERS FAX-TO-EMAIL: FCI Broadband, which provides voice and Internet service in Greater Toronto, now offers a fax-to-email service for $12.95/month.

STEPHENSON NAMED TO CIPA HALL OF FAME: Carol Stephenson, former head of Stentor Resource Centre and Lucent Technologies Canada, will be inducted into the Hall of Fame of the Canadian Information Productivity Awards on November 1. Stephenson, now dean of the Richard Ivey School of Business at the University of Western Ontario, will be honoured as "a champion of innovation who helped build a competitive telecommunications industry in Canada." She is the first woman in the CIPA Hall of Fame.

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SIERRA NAMES NEW CEO: Sierra Wireless COO James Cohenour has been named President and CEO, replacing David Sutcliffe.

ROGERS SALES UP 43%: Rogers Communications reports third-quarter sales of $2.047 billion, 42.8% higher than the same period last year. Net income rose 1.7% to $48.9 million. Rogers added 194,900 wireless and

167,870 cable subscribers, and signed 18,100 customers for its new cable phone service.

INTERNET, WIRELESS BOOST ALIANT SALES: Aliant reports 3Q revenue of $520 million, 4.2% higher than the same period last year. Net income: $51 million. Wireless sales increased by 13.5%; Internet sales by 10.9%.

SHAW PROFIT DOUBLES: Shaw Communications reports service revenue of $563 million for the three months ended August 31, 5.9% higher than the same period last year. Net income of $66.4 million was up

130%. Shaw added 34,113 phone service customers, for a total of 56,563.

COGECO CABLE SALES, PROFITS RISE: Cogeco Cable reports revenue of $140 million for the three months ended August 31, 5.4% higher than the same period last year. Net income of $11.0 million was up 71%. Cogeco added 9.887 "revenue generating units"; at the end of the quarter its cable phone service had 2,500 customers.

AVAYA PROFITS SOAR: Avaya reports revenue of US$1.296 billion for the third quarter, 20% higher than the same period last year. Net income was $660 million, compared to $100 million last year. Acquisitions accounted for most of the sales increase.

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