Telecom Update #508, December 2, 2005

************************************************************ TELECOM UPDATE ************************************************************ published weekly by Angus TeleManagement Group
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Number 508: December 2, 2005

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

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** BCE Gives Up Control of Globemedia ** MTS Allstream to Lay Off 750 ** Numbers Going Fast in 519 ** Do-Not-Call Bill Slips Under the Wire ** Two Senior Execs Leave Nortel ** Judge Throws Out RIM/NTP Settlement ** Bell Wants Fast Decision on Winback Rules ** MTS--Tariff All 900 Services ** Bell Must Provide Full LNP on DV Lite ** Yukon ISPs Want Price Cut for Internet Gateway ** SR Telecom Delisted from Nasdaq ** BCE Opposes Income Trust Request ** Indian Cable Maker to Locate in Canada ** New Orleans Plans Free Wi-Fi ** Managing Telecom in the IP World


BCE GIVES UP CONTROL OF GLOBEMEDIA: BCE Inc. says it will be $1.3 billion richer after reducing its share of Bell Globemedia from 68.5% to 20%. Under the proposed deal, which requires approval from the Competition Bureau and the CRTC, the Thomson family's Woodbridge Company will increase its holding from 31.5% to 40%, and the Ontario Teachers' Pension Plan and Torstar Corporation will each acquire 20%.

** Bell Globemedia owns the Globe and Mail, the CTV television network, and 15 specialty channels. BCE bought CTV for $2.3 billion in 2000, then combined it with Globe and Mail assets acquired from Thomson to establish Globemedia, which was promoted as the key element in BCE's "convergence" strategy.

MTS ALLSTREAM TO LAY OFF 750: Manitoba Telecom plans to eliminate 750 to 800 jobs, 12% of its total staff. MTS's Allstream unit will absorb

80% of the cuts, most of which will take place in the first half of 2006. The layoffs are part of the company's Transition Phase II Plan, which aims to cut expenses by at least $100 million over the next two years.

NUMBERS GOING FAST IN 519: The latest survey by the Canadian Numbering Administrator predicts that all phone number prefixes in area code 519 will be in use by December 2006, eight months earlier than previously forecast. Relief is on the way: a new area code, 226, will begin serving the area in October 2006.

** The December 14 meeting of the 519 Relief Planning Committee will consider whether new number conservation measures are required.

DO-NOT-CALL BILL SLIPS UNDER THE WIRE: As we predicted last week, bills regarding Internet wiretaps and the CRTC's power to impose fines died on the order paper when Parliament was dissolved. But we were wrong about the telemarketing Do-Not-Call bill, C-37--it has received royal assent, and now only requires proclamation by Cabinet to become law.

** We expect the CRTC to issue a Public Notice regarding implementation of the Do-Not-Call List early in 2006.

TWO SENIOR EXECS LEAVE NORTEL: Nortel Networks Chief Research Officer Brian McFadden, and Sue Spradley, President of Global Services and Operations, have resigned after 28 and 18 years with the company, respectively.

JUDGE THROWS OUT RIM/NTP SETTLEMENT: A U.S. judge has ruled that the March 2005 deal settling the patent dispute between Research In Motion and NTP Corp. is unenforceable. Judge James Spencer also denied RIM's request to stay proceedings while the U.S. Patent Office completes a review of NTP's claims.

** RIM won another favourable preliminary patent office ruling this week, but Judge Spencer says it may be years before the patent office takes action.

** NTP is now expected to ask for an injunction to halt RIM sales in the U.S. (See Telecom Update #506)

BELL WANTS FAST DECISION ON WINBACK RULES: Bell Canada has asked the CRTC to stay the "winback rules" in Bell's territory immediately, pending the Commission's decision on whether the rules violate the Charter of Rights and Freedoms. Bell also wants the Commission to issue its final decision by January 11.

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MTS -- TARIFF ALL 900 SERVICES: MTS Allstream has asked the CRTC to require all carriers who provide 900 services to do so under an approved tariff, to ensure that consumer safeguards are enforced.

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BELL MUST PROVIDE FULL LNP ON DV LITE: The CRTC has given Bell Canada six months to implement full number portability for customers switching to Digital Voice Lite, for both primary and secondary numbers, and for out-of-territory as well as in-territory numbers. In the meantime, Bell must amend its Digital Voice Lite tariff to make clear that only in-territory primary numbers can be ported.

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YUKON ISPs WANT PRICE CUT FOR INTERNET GATEWAY: Two Yukon ISPs have asked the CRTC to order Northwestel to provide its wholesale Internet Gateway service under an approved tariff, and to immediately reduce the price by 25%. The ISPs say Northwestel, which currently provides this service to ISPs without a tariff, is charging unreasonably high rates to connect to the Internet backbone.

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SR TELECOM DELISTED FROM NASDAQ: Montreal-based fixed wireless supplier SR Telecom has been delisted from Nasdaq for failing to maintain an adequate share price and shareholders' equity. SR's shares have lost 90% of their value in the past year. (See Telecom Update #490)

BCE OPPOSES INCOME TRUST REQUEST: A small BCE shareholder has asked for the company's conversion into an income trust. BCE says the conversion would not be in its best interests.

INDIAN CABLE MAKER TO LOCATE IN CANADA: Kavveri Telecom Products Ltd, a telecom cable manufacturer based in Mumbai, India, said this week that it plans to invest US$2.5 million to create a subsidiary in Canada. No further details were announced.

NEW ORLEANS PLANS FREE WI-FI: New Orleans says it will provide free wireless Internet access covering the entire city within a year. The Wi-Fi network, part of an effort to attract businesses and residents back to the devastated city, is already operational in the central business district, the French Quarter, and the warehouse district.

MANAGING TELECOM IN THE IP WORLD: Henry Dortmans, President of Angus Dortmans Associates, will examine the challenges posed to IT leaders by current changes within the telecom industry at a half-day seminar sponsored by Avaya in Toronto December 8. For information or to register, call Josie Paoletta, 905-474-6969 or



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