Telecom Update #527, April 28, 2006

************************************************************ TELECOM UPDATE ************************************************************ published weekly by Angus TeleManagement Group
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Number 527: April 28, 2006

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

** AVAYA:
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** BELL CANADA:
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** CISCO SYSTEMS CANADA:
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** ERICSSON:
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** MICROSOFT CANADA:
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** MITEL NETWORKS:
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** NEC UNIFIED SOLUTIONS:
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** ROGERS TELECOM:
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IN THIS ISSUE:

** Rogers Cable Phone Customers Double in Three Months ** TD-Bank Chooses Bell IP Contact Centre ** CRTC to Hear Do-Not-Call Views Next Week ** Cogeco Upgrades Internet Service ** Bell Extends High-Speed Wireless ** Rogers Expands Ottawa Calling Area ** Rogers and Sprint Plan Transborder MPLS ** Bell Reports Progress in Videotron Dispute ** MTS to Receive $10 Million Subsidy Payment ** CRTC Slashes Billed Number Screening Fees ** Aliant Inside Wire Services Deregulated ** CSI Sells Fixed Wireless Business ** MTS Shareholders to Meet Tuesday ** Avaya Sales Flat ** Telehop Revenue Jumps 36% ** Ex-Nortel Exec Named Nakina Chair ** Sierra Chooses New Chairman ** Six Weeks to Telecom Summit

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ROGERS CABLE PHONE CUSTOMERS DOUBLE IN THREE MONTHS: Rogers Communications had 96,700 cable telephony customers by March 31, twice the total three months earlier. The company's circuit-switched customer base increased 22% from a year earlier, bringing its total base of residential local telephony customers to 498,700.

** Rogers now has 14% more postpaid cellular customers than a year ago. Revenue per customer is up by 5.1%, and the churn rate is down to 1.47%. Data now accounts for 10.3% of wireless network revenue.

** Rogers Business Solutions, which includes the former business wing of Call-Net, increased its revenue by 5.6% from a year ago.

** Rogers is now primarily a telecom company: cellular alone makes up 52% of its total revenue, and all telecom revenues comprise 63%.

TD-BANK CHOOSES BELL IP CONTACT CENTRE: Toronto Dominion Bank has signed a seven-year contract with Bell Canada to use Bell's hosted contact centre service, which is based on Cisco IP telephony technology. The incumbent contact centre provider was MTS Allstream.

CRTC TO HEAR DO-NOT-CALL VIEWS NEXT WEEK: The CRTC's public consultation on Canadian "Do Not Call" rules runs Tuesday-Thursday of next week (May 2-4) in Gatineau. The Commission's website sets out the agenda, and will provide a live audio feed and transcripts of the hearing.

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COGECO UPGRADES INTERNET SERVICE: Cogeco Cable has increased the maximum download speed of its standard Internet access service to 7 Mbps. Limits on monthly download volumes have been increased by three to five times, depending on service plan.

BELL EXTENDS HIGH-SPEED WIRELESS: Bell Canada has launched EV-DO wireless service, which delivers data at up to 2.4 Mbps, in Ottawa, Hamilton, Burlington, and Oakville. Bell says it now offers the service in 15 urban centres covering all regions of Canada.

** A network sharing agreement allows Bell and Telus to use each other's EV-DO facilities.

ROGERS EXPANDS OTTAWA CALLING AREA: Beginning this weekend, Rogers Communications will extend the free calling area for its Home Phone service in Ottawa to cover all of Ottawa-Gatineau, as well as North Grenville, Merrickville, Carleton Place, Lanark, Russell, and other surrounding communities.

** For more than five years, the City of Ottawa has been asking the CRTC and Bell Canada to eliminate long distance charges within the amalgamated city. (See Telecom Update #287)

ROGERS AND SPRINT PLAN TRANSBORDER MPLS: Rogers Business Solutions and U.S. LD Carrier Sprint have agreed to jointly offer IP networks with MPLS (Multi-Protocol Label Switching) to business customers with locations in Canada and the U.S.

BELL REPORTS PROGRESS IN VIDEOTRON DISPUTE: The CRTC has agreed to Bell Canada's request that the deadline for Videotron's response to Bell's recent complaint be extended to May 31. The telco says it is "encouraged" by discussions with Videotron: Bell had complained that the cableco was refusing to let its telephone customers use Bell's high-speed Internet service. (See Telecom Update #524)

MTS TO RECEIVE $10 MILLION SUBSIDY PAYMENT: The CRTC has agreed that MTS should receive a retroactive subsidy of $9.893 million for providing residential service in its high-cost Band F area from January 2002 to October 2003.

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CRTC SLASHES BILLED NUMBER SCREENING FEES: The CRTC has ordered Bell Canada to reduce the fee it charges carriers to make changes to its Billed Number Screening (BNS) database, to $0.34 from $3.16 per transaction. The Commission has also ordered Telus to show cause why its BNS rates should not be similarly reduced.

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ALIANT INSIDE WIRE SERVICES DEREGULATED: The CRTC has deregulated diagnostic, repair, and maintenance services provided by Aliant for single-line customers' inside wire, except for customers who do not have a jack-ended demarcation device.

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CSI SELLS FIXED WIRELESS BUSINESS: CSI Wireless of Calgary has agreed to sell its fixed wireless business to Illinois-based Telular for $14.8 million. CSI is also trying to sell its telematics business in order to concentrate on global positioning system products.

MTS SHAREHOLDERS TO MEET TUESDAY: Manitoba Telecom Services will hold its Annual Meeting of Shareholders on Tuesday, May 2, at the Fort Garry Hotel in Winnipeg. The meeting, which begins at noon Eastern Time, will be available as a live webcast at

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AVAYA SALES FLAT: Avaya reports first quarter sales of $1.24 billion, up 1% from a year ago and down 1% from the previous quarter. Product sales rose 9% on the year, but services revenue fell 5%. Net income of $38 million was slightly higher than a year ago, but half the level of the previous quarter.

TELEHOP REVENUE JUMPS 36%: LD carrier Telehop Communications reports $20.8 million in total revenue for 2005, up from $15.3 million in

2004. Net income was $611,000, more than double last year's figure.

** Telehop has named former Bell Canada Senior VP Barry Dixon as interim chair while the company's founder and chair, Hersh Spiegelman, undergoes medical treatment in the U.S.

EX-NORTEL EXEC NAMED NAKINA CHAIR: Marco Pagini, who headed Nortel's optical division until 2004, has been appointed Chairman of Nakina Systems, an Ottawa-based developer of network management software for carriers.

SIERRA CHOOSES NEW CHAIRMAN: Sierra Wireless has named Charles Levine, former President of Sprint PCS, as chairman. He replaces Peter Ciceri.

SIX WEEKS TO TELECOM SUMMIT: The 2006 Canadian Telecom Summit will be held at the Toronto Congress Centre, June 12-14. Featured speakers include federal Industry Minister Maxime Bernier and CRTC Chair Charles Dalfen. For information, and to register, go to

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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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