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IN THIS ISSUE:
** Bell Canada Takes the Income Trust Road ** BCE -- R.I.P. ** Vonage Expands Coverage ** Ontario Bill Seeks New-Driver Cellphone Ban ** Bell and Bell Aliant File 8-1-1 Tariffs ** More Time to Comment on Bell, Telus Rate Hikes ** Industry Canada Tests VoIP Security ** Fido Opens Burnaby Call Centre ** Mitec Raises $4 Million ** U.S. Carrier to Trial Wi-Fi/Cellular Phone ** U.S. to Allow Low-Power Devices in TV Spectrum ** AT&T/Bellsouth Merger Gets Antitrust Okay ** Applications Invited for Jeanne Sauve Awards ** Communications Institute Sets Program ** Telehealth Experts Gather in Edmonton ** Rx for Network Planning NightmaresBELL CANADA TAKES THE INCOME TRUST ROAD: In a move that could reduce the company's annual tax bill by hundreds of millions of dollars, BCE is proposing to convert Bell Canada into an income trust. After approval by regulators and by a shareholders' meeting in January, BCE common shares will be exchanged on a one-for-one basis for units in the new Bell Canada Income Fund, and Bell will buy back all preferred shares.
** Simultaneously, Bell Aliant is proposing to acquire the 36.4% of Bell Nordiq it doesn't now hold, a move that would merge those two income funds into one company.BCE -- R.I.P.: As part of the income trust conversion, Bell Canada will eliminate its holding company, BCE Inc., which was created in
1983 to shield Bell's non-telco operations from CRTC regulation. Over the years BCE has purchased companies as diverse as Trans Canada Pipelines, Montreal Trust, Teleglobe, and CTV -- and in every case took substantial losses when it sold them.** CEO Michael Sabia says that elimination of BCE reflects "our plan to focus on Bell and our communications operations. That is the business we know. That is the business we will stick to."
VONAGE EXPANDS COVERAGE: Vonage Canada has added 25 communities in Ontario, British Columbia, Alberta, New Brunswick, Nova Scotia, and PEI to the list of locations where it offers local phone numbers. The VoIP provider now offers local numbers in 70 Canadian cities and towns.
ONTARIO BILL SEEKS NEW-DRIVER CELLPHONE BAN: A private member's bill that would ban new drivers from using cellphones while driving has received second reading in the Ontario legislature. The Ontario government has not indicated whether it will support the proposal. Similar measures have been implemented in 11 U.S. states. (See Telecom Update #519)
BELL AND BELL ALIANT FILE 8-1-1 TARIFFS: Bell Canada and Bell Aliant have filed tariffs for 8-1-1 service, which will route calls to the appropriate "non-urgent health teletriage service providers" within a province. (See Telecom Update #488) The telcos have requested approval by October 20, with six months notice required to implement the service.
** The telcos' nomadic VoIP services will not be able to route 8-1-1 calls.FIDO OPENS BURNABY CALL CENTRE: Rogers' Fido division says it will employee 130 staffers in the $2.4-million call centre it has just opened in Burnaby, B.C.
MITEC RAISES $4 MILLION: Mitec Telecom, a Montreal-based wireless equipment maker, has raised $4.3 million in equity and hopes to raise an additional $3.5 million by October 16.
U.S. CARRIER TO TRIAL WI-FI/CELLULAR PHONE: T-Mobile USA says it will soon begin trials of a mobile phone that can hand off calls between Wi-Fi and cellular networks. Introduction of such phones has been long delayed by opposition from most cellcos.
U.S. TO ALLOW LOW-POWER DEVICES IN TV SPECTRUM: The U.S. Federal Communications Commission has agreed to let new low-power wireless devices operate in parts of the TV broadcast spectrum that are not used for other purposes. Marketing of the devices won't be allowed until February 18, 2009, the date when full conversion of U.S. broadcast television to digital is supposed to be complete.
AT&T/BELLSOUTH MERGER GETS ANTITRUST OKAY: U.S. antitrust authorities have approved AT&T Inc's US$79 billion purchase of Bell South Corp. A ruling by the federal telecom regulator is expected today.
** The deal will create the largest U.S. carrier, combining the six formerly separate telecom giants: AT&T, Bell South, Southwestern Bell, Pacific Telesis, Ameritech, and Cingular Wireless. (See Telecom Update #467, 520)APPLICATIONS INVITED FOR JEANNE SAUVE AWARDS: Canadian Women in Communications is inviting women managers in telecommunications and broadcasting to apply for the 2007 Jeanne Sauve awards, which provide intensive internships in communications policy. Application deadline is 5 pm, December 6.
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