Telecom Update (Canada) #478, April 22, 2005

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

published weekly by Angus TeleManagement Group

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Number 478: April 22, 2005

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

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IN THIS ISSUE:

** Cellcos Promise Number Portability ** Telus Increases Pressure on Union ** CRTC RFP Seeks Deregulation Experts ** Committee Reviews Do-Not-Call Bill ** Unlimited Canada-U.S. Calling for $30 ** Xplore Announces Satellite Internet Pricing ** Telehop Offers Wholesale LD ** March Networks Hit by Patent Suit ** Dragonwave Boosts Wireless Ethernet Power ** Microsoft Supports Wireless Instant Messaging ** Most Intercity Fibre Still Unlit ** Hamilton to Test Wi-Fi Hydro Meters ** SaskTel Adopts New Messaging Architecture ** Qwest Raises Bid for MCI ** Look Revenue Declines ** Avaya Sales Up 21%

CELLCOS PROMISE NUMBER PORTABILITY: Canada's major cellular companies have agreed to let customers keep their numbers when they switch from one wireless carrier to another or between landline and wireless carriers. The Canadian Wireless Telecommunications Association says it will contract with an independent consultant to develop a project plan by September 1. No target date for implementation was announced.

** The wireless carriers, which have long opposed number portability, appear to be bowing to the inevitable: both the CRTC and the federal government have announced plans to move on the issue this year. (See Telecom Update #436)

TELUS INCREASES PRESSURE ON UNION: Saying it wants to "resolve the impasse" between it and the Telecommunications Workers Union, Telus this week increased the pressure on the union to settle their five-year-old contract negotiations.

** On Monday, the telco announced a plan to implement "lockout measures" including freezing scheduled wage increases and suspending joint committees and grievance procedures, beginning next week. The TWU is asking the Federal Court of Appeal for an injunction against the move.

** On Thursday, Telus bypassed the union bargaining committee by releasing details of its latest contract proposal directly to employees. The telco says the offer would make its employees "among the best paid telecommunications team in Canada."

CRTC RFP SEEKS DEREGULATION EXPERTS: The CRTC has issued an RFP for a team or consortium to provide economic, legal/analytic, and support services to the Commission for an upcoming proceeding on deregulating local phone service. The Commission expects to pay between $500,000 and $1 million. The RFP is number CABB-5-0051 on the Merx public tenders website; bids are due May 25.

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COMMITTEE REVIEWS DO-NOT-CALL BILL: The House of Commons Standing Committee on Industry, Natural Resources, Science and Technology is holding hearings on Bill 37, "An Act to amend the Telecommunications Act," which would set the basis for a mandatory Do-Not-Call registry, allowing the CRTC to fine violators. (See Telecom Update #462)

** This week's witnesses included CRTC Telecom Vice-Chair Richard French, as well as Mothers Against Drunk Driving and the Marketing Research and Intelligence Association.

UNLIMITED CANADA-U.S. CALLING FOR $30: BabyTel, a Montreal- based provider of broadband IP-based phone service, has cut its price for unlimited calling in Canada and the U.S. for from $45 to $29.95 a month. The company also permits customers to have phones in multiple locations working on the same number for an extra $4.95 a month.

XPLORE ANNOUNCES SATELLITE INTERNET PRICING: New Brunswick- based Barrett Xplore has announced pricing for the wireless broadband service it will begin offering across Canada in July, using Telesat's new Anik F2 satellite. Monthly rates range from $59.99 for 512 Kbps download and 128 Kbps upload to $199.99 a month for 2 Mbps download and 500 Kbps upload.

TELEHOP OFFERS WHOLESALE LD: Telehop Communications now offers a Reseller Program that includes international calling, billing, and other services for long distance resellers.

MARCH NETWORKS HIT BY PATENT SUIT: Vigilos Inc, a Seattle-based software maker, has sued March Networks for allegedly infringing on two patents for surveillance products. March Networks, whose chairman is Terry Matthews, is preparing an IPO that is expected to raise about $75 million.

DRAGONWAVE BOOSTS WIRELESS ETHERNET POWER: Ottawa-based DragonWave Inc. has introduced a new wireless Gigabit Ethernet product that it says has 30% increased reach over the previous model.

MICROSOFT SUPPORTS WIRELESS INSTANT MESSAGING: Microsoft says its Office Live Communications Server 2005 now supports Windows-based mobile devices, enabling Instant Messaging and presence-based applications for mobile workers.

MOST INTERCITY FIBRE STILL UNLIT: A new report from TeleGeography says that despite huge traffic growth only 3% of the maximum possible intercity bandwidth in Europe and the U.S. has been lit. Despite that, carriers are running out of capacity on some routes, and face expensive upgrades.

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HAMILTON TO TEST WI-FI HYDRO METERS: This year, Hamilton Utilities will test 100 "smart meters," which will automatically report customers' electricity usage via wireless LANs.

SASKTEL ADOPTS NEW MESSAGING ARCHITECTURE: SaskTel is deploying a "next generation" platform developed by New Jersey-based uReach Technologies, as the basis for wireline and wireless voice mail, as well as for new IP-based messaging services.

QWEST RAISES BID FOR MCI: Qwest Communications has increased its offer for MCI to $30 a share, 30% more than the rival offer from Verizon that has been approved by MCI's board. (See Telecom Update #476)

LOOK REVENUE DECLINES: Look Communications had revenue of $9.7 million for the three months ended February 28, 15% less than for the corresponding quarter a year ago. Look's subscriber base decreased 5% from the previous quarter, reflecting mainly losses of dial-up customers. Net loss: $2.4 million.

AVAYA SALES UP 21%: Avaya reports revenue of US$1.22 billion for the three months ended March 31, a 21% increase over a year ago. Sales declined 9% in the U.S. and increased 6% elsewhere in the Americas. IP product sales rose 30%. Net income: $36 million.

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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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John Riddell
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