TELECOM UPDATE
published weekly by Angus TeleManagement Group
Publication of Telecom Update is made possible by generous financial support from:
** AVAYA:** BELL CANADA:
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IN THIS ISSUE:
** CRTC Issues 2005 Telecom Monitoring ReportWireless Tops the Charts
Little Growth for Local Service
51% of Homes Have High-Speed Internet** MTS, Rogers Settle LD Dispute
** Avaya Profits Down 77%; CEO Resigns** Nortel Changes Wi-Max, Converged Core Management
** Top Nfld Court Upholds Cell Ban** Former Director Sues Minacs
** 5-1-1 Approved for Weather & Travel Info** Internet Registrar Launches Privacy Review
** SaskTel, 2Wire Expand Broadband Partnership** Internap to Add Toronto Hub
** MTS Results Dip Into Red** Aliant Records Sales, Profit Gains
** Lucent Sales Continue to SlideCRTC ISSUES 2005 TELECOM MONITORING REPORT: The CRTC's annual report on telecom competition and broadband services says that telecom service revenues grew 3.5% in 2005, to $34.5 billion. Most of the growth was in wireless and high-speed Internet.
** Competitors took in 35% of all wireless and wireline telecom revenues. 11% went to incumbent telcos operating outside of their home territories, 19% to facilities-based competitors, and 5% to resellers.** 98.9% of Canadian households receive some form of telephone service; 4.8% of households use only wireless.
** Long distance traffic grew 10%, but LD revenues fell by 8.6% to $5 billion. The average retail price is now 7.8 cents per minute.WIRELESS TOPS THE CHARTS: Wireless service is now the largest and fastest-growing segment: it grew 16% in 2005 and generated 32% of telecom service revenues ($11 billion). There were 17 million wireless subscribers at the end of December, 2 million more than in 2004.
LITTLE GROWTH FOR LOCAL SERVICE: Local and access service brought in $9.8 billion, 28% of the industry's revenues. Revenues and lines both grew only slightly in 2005.
** The incumbent telcos' share of local revenue fell to 92%, and their share of local lines fell to 90%.** Competitors have more than 10% of residential lines in 11 markets, and more than 10% of business lines in 31 markets. The most competitive residential market is Halifax, where competitors have 35% of lines. In Edmonton, Calgary, Vancouver, Barrie and Toronto, competitors have over 20% of business lines.
51% OF HOMES HAVE HIGH-SPEED INTERNET: Internet revenues passed $4.5 billion in 2005. Eight million households now have Internet access. 51% of households subscribe to a high-speed Internet service, and 13% use dialup.** Broadband Internet service is available to 92% of all Canadian households, but to only 74% in rural areas.
Canada is first among the G-8 countries in broadband availability, and eighth among OECD countries in Internet subscriptions per 100 inhabitants.
** About 2,000 Canadian communities will still have no access to broadband at the end of 2007.MTS, ROGERS SETTLE LD DISPUTE: In October 2005, MTS Allstream went to court to prevent Rogers from shifting long distance traffic from Allstream to Call-Net, which Rogers had acquired (see Telecom Update #502). The two carriers have now agreed on a revised LD contract, expiring in December, under which MTS will continue to provide Web hosting and data services.
AVAYA PROFITS DOWN 77%; CEO RESIGNS: Avaya's sales for the quarter ended June 30 were 5% higher than the same period a year ago, but net income dropped to US$44 million from $194 million. Product sales rose 12%, but rental and managed-services revenue declined 9%.
** Don Peterson has resigned as CEO, the post he has held since Avaya was spun off from Lucent in 2000. He will remain as Chairman of the Board until September 30. Avaya veteran Lou D'Ambrosio has been named President and CEO, and former senior VP Michael Thurk is now COO.NORTEL CHANGES WI-MAX, CONVERGED CORE MANAGEMENT: Nortel seems to be reorganizing the top management of two of its three strategic focus areas. Mark Whitton, VP/GM for WiMax and Wireless Mesh Networks, has left the company, and Alan Stoddard, VP/GM for Converged Core, has been "reassigned."
TOP NFLD COURT UPHOLDS CELL BAN: The Supreme Court of Newfoundland an Labrador has reinstated the conviction of a man charged with using a handheld cellphone while driving. A lower court had thrown out the
2003 law on the grounds that the word "use" was ambiguous.FORMER DIRECTOR SUES MINACS: Call Centre operator Minacs Worldwide says that John Simmonds has filed suit against the company, the estate of Elaine Minacs, and the company's directors. No details on the action were released.
** John Simmonds was a member of the Minacs Board from June 2005 to February 2006, when he was removed as a result of what the company called "certain deficiencies" in the process by which he was appointed.5-1-1 APPROVED FOR WEATHER & TRAVEL INFO: CRTC Telecom Decision
2006-44 assigns 5-1-1 as a three-digit telephone number for free delivery of weather and travel information to the public. (See Telecom Update #485)** The Commission denied a competing application to use 5-1-1 for crisis intervention and suicide prevention, saying those services could be provided through collaboration with 2-1-1 centres or through a national 800 number.
INTERNAP TO ADD TORONTO HUB: Internap Network Services Corporation says it will implement its first Canadian network access point in Toronto by the end of this year. The Atlanta-based company promises corporate clients 100% network availability on the public Internet, less than 45 milliseconds latency, and less than 0.3% packet.
MTS RESULTS DIP INTO RED: Manitoba Telecom reports a second quarter loss of $1.2 million, compared to a $111.5 million profit for the same period a year ago. Revenues were flat at $500 million: an 18% decline in long distance sales was offset by growth in local and wireless business. EBITDA of the enterprise services division declined 4.3%; overall EBITDA was unchanged.
** Because of losses brought forward from the former Allstream, MTS expects to pay no cash taxes until 2014.ALIANT RECORDS SALES, PROFIT GAINS: The final quarterly results of Aliant, now part of the Bell Aliant Regional Communications Inc, show a 3.7% year-over-year gain in operating revenue, to $534 million. Second quarter net income increased 6.9%, to $53 million. Internet and wireless revenues rose by 20% and 15%, respectively.
LUCENT SALES CONTINUE TO SLIDE: Sales by Lucent Technologies for the quarter ended June 30 were down 12% on the year and 4% on the quarter -- the third successive quarterly decline. Net income was $79 million,
79% less than a year ago.** Lucent's pending merger with Alcatel has been approved by European Union regulators and is expected to close by year-end.
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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.