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IN THIS ISSUE:
** CRTC Keeps VoIP Under Local Service Rules ** Telcos Outraged, Competitors Happy ** Rogers to Buy Call-Net ** 2004 Telecom Statistics Ready Next Week ** FCC to Consider VoIP-911 Rules ** Nortel Unveils New Small-Office IP-PBX ** VoIP Boosts Videotron Telecom ** CRTC Proposes Price Cap Extension ** Shaw, Bell VoIP Services Under Review ** Ottawa Launches Spectrum Policy Review ** BlackBerry Adds a Million Subscribers ** Cisco Telecom Sales Up 35% ** Mail Boxes Etc. to Offer Wi-Fi ** Conference Marks 20 Years of Cellphones ** More Cellphones Than Citizens in Ten Countries ** Vote Now for CATA Innovation AwardsCRTC KEEPS VoIP UNDER LOCAL SERVICE RULES: CRTC Telecom Decision 2005-28, released yesterday, rejects arguments by Bell and Telus that VoIP-based local telephone services are, or should be, forborne from regulation. With two Commissioners dissenting, the Commission ruled that Voice over IP services come under the same regulatory framework as circuit-switched services. Key rulings include:
** The incumbent telcos must file tariffs for "in-territory" local VoIP services, at rates that at least cover costs, and must comply with existing rules on bundling and winback promotions. "In-territory" is defined by the customer's phone number.** Cablecos that offer local phone service must register as Competitive Local Exchange Carriers and comply with all CLEC obligations.
** Incumbent telcos and CLECs must allow VoIP customers equal access to all long distance service providers. Resellers are not bound by this rule.** Incumbent telcos and cablecos must amend their wholesale broadband tariffs to allow ISPs and other resellers to provide VoIP over these connections.
TELCOS OUTRAGED, COMPETITORS HAPPY: Industry responses to the CRTC's VoIP decision depended, for the most part, on whether the responder was an incumbent phone company or not, but the division was not clear-cut:
** Most incumbent phone companies were outraged. Bell, Telus, Aliant, and SaskTel all said they will appeal the decision. Bell's Lawson Hunter called the ruling "an historic mistake," and Janet Yale of Telus said the CRTC "chose to look backward and to impose restrictions from the past that are no longer relevant."** However, MTS Allstream said the decision is "good for consumers and competition" because it limits the ability of "dominant providers like Bell Canada ... to stamp out their smaller rivals."
** The cable industry and most IP telephony providers also said the decision will prevent the telcos from crushing new entrants.** Montreal-based BabyTel said the CRTC should regulate services offered by the cablecos, not just the telcos.
** The Coalition for Competitive Telecommunications criticized the CRTC's "intrusive regulatory approach," and called the decision "bad news for business."ROGERS TO BUY CALL-NET: Rogers Communications has agreed to buy Call-Net Enterprises, the parent of Sprint Canada, in a share swap valued at approximately $330 million. The deal, which could close as early as July 1, will give Rogers some 600,000 consumer and business customers across Canada.
** Sprint Canada will probably be rebranded with the Rogers name.** Rogers says that when it deploys its cable telephony service some of Call-Net local service customers will be migrated to that platform.
2004 TELECOM STATISTICS READY NEXT WEEK: The Monday, May 16, edition of Statistics Canada's "Daily" will summarize telecom industry statistics for Q4 2004. The full report will be available later in the week.FCC TO CONSIDER VoIP-911 RULES: The U.S. Federal Communications Commission will hold a public meeting on Thursday May 19 to consider E911 requirements for IP-ba telephone services. (See Telecom Update #480)
** Last week a Florida couple said that their three-month-old daughter died because a 9-1-1 call on a Vonage phone was routed to an admin phone in the sheriff's office, which was closed for the day.NORTEL UNVEILS NEW SMALL-OFFICE IP-PBX: On May 27 Nortel Networks will launch Business Communications Manager 50, an IP-based phone system targeted at offices with fewer than 50 users. It can support up to 80 extensions.
VoIP BOOSTS VIDEOTRON TELECOM: Quebecor's Videotron Telecom unit had first-quarter revenues of $23.6 millthan the same period last year. The company attributes the gain in part to Videotron's consumer VoIP service, which now has 23,000 subscribers. Videotron Telecom is being integrated into Videotron Ltee this year.
** CEO Pierre Karl Peladeau says Quebecor will offer wireless service this year.CRTC PROPOSES PRICE CAP EXTENSION: The CRTC has invited comments on extending the current price cap regime for the major incumbent telcos, as well as for Telebec and Telus Quebec, by two years. A review at that time would allow the Commission to take into account the impact of VoIP competition and the framework for local service forbearance, to be decided in 2006. To participate, notify the CRTC by June 2.
SHAW, BELL VoIP SERVICES UNDER REVIEW: The CRTC has resumed consideration of Telus's complaint that Shaw is not complying with CLEC obligations (see Telecom Update #475) and the complaints by Cogeco, Quebecor, and the CCTA that Bell's Digital Voice service violates Commission rules (see Telecom Update #476). Both disputes had been suspended pending the release of the VoIP decision.
OTTAWA LAUNCHES SPECTRUM POLICY REVIEW: The federal government has begun a full review of Industry Canada's spectrum policy, and is inviting public comment. A public consultation paper has been posted on Industry Canada's website.
CISCO TELECOM SALES UP 35%: Cisco Systems' results for the quarter ending April 30 show a 35% rise in telecom revenues compared to the same period a year ago. Net income of US$1.41 billion was up
17%. Overall sales were $6.19 billion, up 2.1% on the quarter and 10.1% on the year, which was about half the rate of increase recorded during the preceding year.MAIL BOXES ETC. TO OFFER WI-FI: Mail Boxes Etc. is equipping most of its 275 Canadian centres with Wi-Fi Internet access for business travelers. Bell Canada, which is partnering with Boldstreet Wireless to provide the service, hopes to enlist other carriers to bill usage to cellphone accounts.
CONFERENCE MARKS 20 YEARS OF CELLPHONES: Mobile Telephony in Canada, a conference organized by the Canadian Wireless Telecommunications Association on June 8 in Ottawa, will mark the twentieth anniversary of the introduction of cellular service in Canada.
MORE CELLPHONES THAN CITIZENS IN TEN COUNTRIES: TeleGeography says that at the end of 2004 in Luxembourg there were four wireless accounts for every three inhabitants. Ten countries, including Germany, exceeded 100% wireless penetration. Canada edged past 50% penetration early this year.
VOTE NOW FOR CATA INNOVATION AWARDS: The Canadian Advanced Technology Alliance will hold its twentieth annual Innovation Awards Gala June 21 at the Chateau Laurier in Ottawa. Online voting for the awards, offered in five categories, closes on May 20.
www1.cata.ca/cata/news/awards/innovation/innovnominate2005.cfm
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