Telecom Update #547, September 22, 2006

************************************************************ TELECOM UPDATE ************************************************************

published weekly by Angus TeleManagement Group

Number 547: September 22, 2006

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IN THIS ISSUE:

** VoIP E9-1-1 Plan Approved ** Consumers Object to Bell Rate Increase ** Public Speaks on Govt Telecom Policy Plan ** Search Under Way for New CRTC Chair ** Globalive Buying Yak Communications ** BCE Files Prospectus for Telesat Shares ** B.C. Islands to Get Broadband Link ** Mobile Industry Group to Fight Pollution ** Cablecos' Premium VoIP Service Not for Resale ** Some Small CLECs Excused from Equal Access ** AT&T Insources 2,000 Jobs ** Bell Aliant Bids to Expand TV Licence ** Bell to Move 2,000 Toronto Employees to Mississauga ** Ottawa Startup Acquired by Telco Systems ** 50 Years of Overseas Cable

VoIP E9-1-1 PLAN APPROVED: The CRTC has approved a recommendation from the CISC Emergency Services Working Group that VoIP E9-1-1 in Canada be based on the "i2" standard developed by the US-based National Emergency Number Association. (See Telecom Update #511)

** Within six months the EWSG must submit a functional architecture for implementing this solution, including the roles and responsibilities of all emergency services industry participants.

CONSUMERS OBJECT TO BELL RATE INCREASE: The CRTC has so far received nearly 1,000 emails from consumers responding to the proposal by Bell and Bell Aliant to increase local rates by 80 cents while eliminating connection charges for new and moving customers. Most oppose the plan. (See Telecom Update #537, 541)

** Telus has filed a similar proposal, which would result in local rate increases in B.C. and Alberta of up to 5%. The CRTC says it will consider the Telus and Bell proposals together, and will issue revised timelines for PN 2006-11.

** A national survey commissioned by the Public Interest Advocacy Centre in September found that about 2/3 of residential customers believe connection charges should be paid by the person moving, not spread across all customers.

PUBLIC SPEAKS ON GOVT TELECOM POLICY PLAN: Over 50 organizations and individuals have submitted comments on Ottawa's proposal to direct the CRTC to "rely on market forces to the maximum extent feasible and regulate ... in a manner that interferes with market forces to the minimum extent necessary." (See Telecom Update #534)

** The submissions are posted on the Web at SEARCH UNDER WAY FOR NEW CRTC CHAIR: Speculation is growing about possible replacements for CRTC Chair Charles Dalfen, whose term expires at the end of 2006. Frequently mentioned candidates include telecom lawyer Hank Intven, ex-CBC president Perrin Beatty, CRTC Vice-Chair Richard French, former CRTC Vice-Chair Fernand Belisle, and Alain Gourd.

GLOBALIVE BUYING YAK COMMUNICATIONS: The directors of Yak Communications have approved Toronto-based Globalive Communications' bid to purchase the company for US$67.7 million. The deal requires shareholder and regulatory approval.

** Yak reports a net loss of US$365,000 for the year ended June 30, compared to a $4.8 million profit the previous year. Revenue was unchanged at $92.4 million.

BCE FILES PROSPECTUS FOR TELESAT SHARES: BCE has filed documents required to offer US$400 million worth of non-voting stock in Telesat. BCE would retain 100% voting control. (See Telecom Update #544)

B.C. ISLANDS TO GET BROADBAND LINK: Telus has signed a contract with the Gwaii Trust Society to build "the world's longest over-water radio Internet transmission" link from Prince Rupert to Haida Gwaii (the Queen Charlotte Islands). The 115-kilometer link is part of a Telus-B.C. government project to bring high-speed Internet to 119 rural and remote communities.

MOBILE INDUSTRY GROUP TO FIGHT POLLUTION: European cellphone makers and carriers have formed a group to improve the environmental performance of mobile phones and to encourage phone recycling. The group includes Nokia, Motorola, Panasonic, France Telecom/Orange, Vodafone, TeliaSonera AB, Intel, Epson, Spansion, and Umicore.

CABLECOS' PREMIUM VoIP SERVICE NOT FOR RESALE: Denying an application by Cybersurf, the CRTC says that cablecos do not have to provide competitors with wholesale access to their managed VoIP telephony service. (See Telecom Update #509)

** The Commission also ruled that Shaw Communications does not have to allow competitors to resell its "Quality of Service Enhancement," as there is no evidence that the QSE= service gives Shaw's traffic any preference.

SOME SMALL CLECs EXCUSED FROM EQUAL ACCESS: CRTC Telecom Decision

2006-58 says CLECs that offer local VoIP services through a reseller and that have fewer than 10,000 telephone subscribers do not have to provide equal access to long distance carriers. However, they must comply with all other CLEC obligations. (See Telecom Update #497)

AT&T INSOURCES 2,000 JOBS: Bucking a major trend in telecom, AT&T Inc. says that about 2,000 previously outsourced jobs will be brought in-house by the end of 2008. The jobs provide technical support to AT&T DSL customers.

BELL ALIANT BIDS TO EXPAND TV LICENCE: Bell Aliant has asked the CRTC to expand its broadcasting distribution licence to include Fredericton and the surrounding area. Deadline for comments: October 24.

BELL TO MOVE 2,000 TORONTO EMPLOYEES TO MISSISSAUGA: Bell Canada plans to move 2,000 of its 12,000 Toronto employees to Mississauga by the end of 2008. The Mississauga facility, with 7,000 employees, will then be Bell's largest.

OTTAWA STARTUP ACQUIRED BY TELCO SYSTEMS: Critical Telecom, an Ottawa-based startup that manufactures ADSL2+ equipment for carriers, has been acquired by Telco Systems, a U.S. subsidiary of Israeli data networking developer BATM Advanced Communications. Terms of the acquisition were not announced.

50 YEARS OF OVERSEAS CABLE: 50 years ago, on September 25, 1956, the first transatlantic telephone cable went live. The 2,000-mile link between Scotland and Newfoundland was a joint project between AT&T (50%), the British Post Office (40%), and the Canadian Overseas Telecommunications Corporation (10%). COTC was later privatized and renamed Teleglobe.

** Before TAT1 was installed, overseas calls were carried by radio: it often took hours to set up a call, and sound quality was unreliable. The new cable could handle 36 simultaneous calls with much improved sound quality. Call setup, which still required operator assistance, took about 10 minutes.

** The new cable, which took three years to install, carried close to 300,000 calls in its first year.

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