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IN THIS ISSUE:
** Telco Plans Shaken by Trust Ruling Telus Bell Canada Bell Aliant** BCE Profits Down by a Third
** Telus Net Income Up 68% ** Rogers Adds 106,000 Phone Lines ** Videotron CEO Urges Cable Deregulation ** Rogers Begins HSDPA Roll-Out ** Dalfen Confirms Departure from CRTC ** Rogers Plans Wi-Fi Enabled Cellphone ** CRTC Finalizes 2006 Contribution Rate ** Quebecor Winback Challenge Rejected ** Small Telcos Seek CLEC Status ** Shaw Claims Fastest Internet Access ** Aliant Expands EV-DO Coverage ** Vonage Adds 14 Ontario Cities ** Glentel Buys Ottawa Wireless Firm ** Avaya Puts IP Telephony in Juniper RoutersTELCO PLANS SHAKEN BY TRUST RULING: Though neither has yet said so, it seems likely that Canada's two largest telcos will cancel their plans to convert into income trusts, following Finance Minister Flaherty's October 31 announcement of new tax rules.
** Telus CFO Robert McFarlane called Ottawa's action "unfair and inappropriate, particularly as it relates to Telus." He argued that Telus should be grandfathered until 2011, but Flaherty said that only trusts that were actually trading on October 31 would get a four-year exemption on paying the new trust distribution tax.** Bell Canada CEO Michael Sabia said Ottawa's policy change "has a significant impact on our proposed conversion," so the company will evaluate its options. The plan to eliminate BCE's holding company structure will go ahead.
** Bell Aliant Communications, which was spun off as an income trust earlier this year, says it is reassessing its proposal to take Bell Nordiq Income Fund private, although it believes that the "strategic rationale" for the transaction remains valid.BCE PROFITS DOWN BY A THIRD: BCE reports third quarter revenue of $4.42 billion, 0.3% more than a year ago. EBITDA rose 1.3% to $1.84 billion. Net income declined 35% to $285 million.
** Wireless sales rose 14.3% and made up 21% of total revenue. Average revenue per user (ARPU) increased $3 to $66/month. Bell Canada added a net 114,000 wireless subscribers.** Bell ended the quarter with 2.40 million high-speed Internet subscribers, up 12.6% on the year.
** The number of local lines declined by 71,000 in the quarter, and was 3.7% lower than a year ago.TELUS NET INCOME UP 68%: Telus reports third quarter revenue of $2.21 billion, 7.2% more than a year ago. EBITDA rose 13.4% to $952 million. Net income rose 68% to $320 million.
** Wireless sales rose 17% and made up 45% of total revenue. ARPU increased $2 to $66/month. Telus added a net 137,000 wireless subscribers.** Telus ended the quarter with 1.1 million high-speed Internet subscribers, up 18.5% on the year.
** The number of local lines declined by 40,000, and was 2.8% lower than a year ago.ROGERS ADDS 106,000 PHONE LINES: Rogers Communications reports third quarter revenue of $2.35 billion, 14.7% more than a year ago. Operating profit increased 33.1% to $784 million. Net income was $154 million, compared to $49 million a year ago.
** Wireless sales rose 18.4% and made up 54% of total revenue. ARPU increased $4 to $70/month. Rogers added a net 203,000 subscribers.** Rogers ended the quarter with 1.25 million Internet subscribers, up 16.1% on the year.
** Rogers added 106,100 cable telephony subscribers in the quarter. It now has 270,800 cable phone lines and 552,300 circuit-switched lines in service.VIDEOTRON CEO URGES CABLE DEREGULATION: Addressing a telecom conference in Ottawa this week, Videotron CEO Robert Depatie said that if local phone service is deregulated, then the CRTC should also "free cable companies from the regulatory burden preventing them from offering better choice and prices to consumers."
ROGERS BEGINS HSDPA ROLL-OUT: Rogers Communications has deployed High Speed Downlink Packet Access through southern Ontario's Golden Horseshoe area, between Niagara Falls and Oshawa (see Telecom Update #517) At present it operates only with a Sierra Wireless AirCard 860, sold by Rogers for $49.99 (3-year contract) or $349.99 (1- or 2-year contract).
** Rogers says it will extend the HSDPA network to "top Canadian markets" next year, and plans to introduce HSDPA-enabled phones.DALFEN CONFIRMS DEPARTURE FROM CRTC: Speaking to reporters this week, CRTC Chairman Charles Dalfen confirmed that he will not be seeking a second term when his five-year contract expires at the end of this year. (See Telecom Update #547)
ROGERS PLANS WI-FI ENABLED CELLPHONE: Ted Rogers told analysts October
31 that by late 2007 or early 2008 Rogers aims to introduce a cellular phone that switches to wireless LAN transmission when it comes within range of a Wi-Fi network.CRTC FINALIZES 2006 CONTRIBUTION RATE: Telecom Decision 2006-70 confirms that the contribution rate for 2006 is 1.03% of telecom revenue, and sets the interim rate for 2007 at the same amount. This charge is paid by telecommunications service providers with telecom service revenues over $10 million a year, to subsidize residential local service in high-cost serving areas.
** The decision sets out the amount of per-line subsidy payable to carriers providing residential local phone service in high-cost serving areas in 2006.SHAW CLAIMS FASTEST INTERNET ACCESS: Shaw Communications says its new Internet service, with 25 Mbps download and 1 Mbps upload, is the fastest access service available in Canada. "Nitro Internet" will be launched in Calgary, Edmonton, Saskatoon, Winnipeg, Vancouver, and Victoria on November 15, at $99.95/month plus a purchased modem.
ALIANT EXPANDS EV-DO COVERAGE: Aliant has begun offering its High-Speed Wireless service, using EV-DO technology, in the Truro to Halifax corridor, as well as in five additional communities in Nova Scotia (Sydney, New Glasgow, Wolfville, Kentville and Coldbrook) and two in New Brunswick (Florenceville and Bathurst).
VONAGE ADDS 14 ONTARIO CITIES: Vonage Canada has begun offering local service in Aurora, Campbellford, Fort Erie, Galt, King City, Maple, Milton, Newmarket, Niagara Falls, Oak Ridges, Peterborough, Port Colborne, Waterdown, and Welland. It now offers local numbers in more than 50 Ontario cities.
** Across North America, Vonage now has over two million lines in service, up 200,000 from three months ago. Its churn rate was 2.6% per month in the third quarter.GLENTEL BUYS OTTAWA WIRELESS FIRM: Glentel has bought all shares of Ottawa-based Time Mobile Communications Inc. for $4.5 million. Time MCI, which provides wireless service and equipment, operates a two-way radio network with 50 tower sites in eastern Ontario.
AVAYA PUTS IP TELEPHONY IN JUNIPER ROUTERS: Avaya says it will integrate its IP voice gateway and communications applications into Juniper Networks' new J4350 and J6350 enterprise branch routers.
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