published weekly by Angus TeleManagement Group
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IN THIS ISSUE:
** Wireless Powers $34 Billion Year in Telecom ** Task Force Calls for Tough Anti-Spam Laws ** Telecom Policy Review Gets Under Way ** U.S. VoIP Providers Must Provide E911 by Fall ** Vonage Wants 9-1-1 Deadline Extended ** Bell, Shaw Respond to VoIP Challenges ** Ottawa Funds Broadband in Northern Quebec ** Global Digital Divide Narrows ** Nortel, IBM to Open Joint Research Centre ** Aliant Updates Forbearance Application ** Phonetime Buys B.C. LD Assets ** MTS Bundles Include Charity Offer ** TIW Shareholders Approve Wind-Up ** Telecom Coalition to Host Networking GalaWIRELESS POWERS $34 BILLION YEAR IN TELECOM: "A new report from Statistics Canada says the telecom services industry took in $34 billion last year, up 4.1% from 2003. The growth came entirely in wireless, where revenue rose 17.5%, subscribers increased 12.7%, and revenue per subscriber increased 3.0%.
** Wireline still produces two-thirds of industry revenue, but its contribution fell by 0.6%, the third consecutive annual decline. The number of wireline phones in service has been falling for 12 quarters: 4Q 2004 was 1.2% below 4Q 2003.** At the end of 2004 there were 46.5 mobile phones per 100 inhabitants, up five points from 2003.
** Overall operating profits were $7.2 billion in 2004, compared to $6.2 billion the previous year. Wireless was significantly more profitable than wireline.** Capital spending, which increased in both wireline and wireless, totaled $5.5 billion in 2004, a 12.2% rise. This was the first increase since capital spending peaked at $7.7 billion in 2001.
TASK FORCE CALLS FOR TOUGH ANTI-SPAM LAWS: The final report of the federal Task Force on Spam, released Tuesday, makes 22 recommendations for combating spam, including new, targeted anti-spam legislation, and increased resources for enforcement. (See Telecom Update #433, 461, 470)
** The report calls spam "a significant social and economic issue, a drain on the business and personal productivity of Canadians, and a cloak for criminal activity." Spam now comprises 80% of global email.U.S. VoIP PROVIDERS MUST PROVIDE E911 BY FALL: By the end of September, all U.S. VoIP phone services that interconnect with the public switched telephone network must include E911 emergency calling capabilities to their customers as a mandatory feature. The Federal Communications Commission order, released yesterday, says that within
120 days:** VoIP providers must deliver all 9-1-1 calls, along with the customer's phone number and location, to the customer's local emergency operator.
** Incumbent phone companies must provide access to their E911 networks to any requesting telecommunications carrier.BELL, SHAW RESPOND TO VoIP CHALLENGES: As ordered last week by the CRTC (see Telecom Update #481), Bell Canada and Shaw have responded to accusations that their VoIP services violate Commission rules. Both companies say they intend to comply with last week's new VoIP rules as soon as possible, but should not have been expected to comply with rules that hadn't yet been set.
OTTAWA FUNDS BROADBAND IN NORTHERN QUEBEC: Industry Canada's Broadband for Rural and Northern Development (BRAND) program, together with other federal agencies, has announced $6.9 million in funding to deploy high-speed Internet to some 51 municipalities in the areas of Abitibi, Abitibi-Ouest, Rouyn- Noranda, Temiscamingue and the Vallee-de-l'Or, including seven Algonquin communities.
GLOBAL DIGITAL DIVIDE NARROWS: Marking World Telecommunications Day on May 17, ITU Secretary-General Yoshio Utsumi reported significant improvements in access to communications services. The number of telephone subscribers has quadrupled since 1990, from 10% to 40% of the population, and about 80% of the world's inhabitants are now within reach of a mobile signal.
NORTEL, IBM TO OPEN JOINT RESEARCH CENTRE: Nortel Networks and IBM have agreed to establish a joint research centre in Research Triangle Park, North Carolina. The deal is the first step in a broader arrangement to collaborate on the design and development of new products and services.
** Paul Karr, formerly of Bristol-Myers Squibb in New York, has been named Nortel's Controller, replacing interim controller Karen Sledge.ALIANT UPDATES FORBEARANCE APPLICATION: Updating its April 2004 application for local phone service forbearance (see Telecom Update #428), Aliant has told the CRTC that it faces competition not just from EastLink (which the telco claims now serves 29% of local lines in
32 Nova Scotia and PEI exchanges) but also from Primus, Vonage, and Yak.PHONETIME BUYS B.C. LONG DISTANCE ASSETS: Phonetime Inc. has bought
3,000 LD customers, a billing system, and other assets from BeeTel Communications of Surrey, B.C. Phonetime's Call Select, which targets ethnic communities, now has 18,000 subscribers.MTS BUNDLES INCLUDE CHARITY OFFER: Manitoba Telecom offers to donate $3 to one of three charities for every new customer who chooses a bundle of MTS services by June 17. MTS sums up the offer as: "three choices, three bucks, three charities."
TIW SHAREHOLDERS APPROVE WIND-UP: Telesystem International Wireless shareholders have voted to approve the sale of TIW's remaining assets to Vodaphone. (See Telecom Update #473)
TELECOM COALITION TO HOST NETWORKING GALA: The Coalition for Competitive Telecommunications will host a Business Telecom Networking Gala and Dinner in Toronto on Monday May 30. The event, which features "An evening at the Vinyl Cafe with Stuart McLean," is part of the 2005 Canadian Telecom Summit. For information and to register, go to
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