published weekly by Angus TeleManagement Group
Number 455: November 1, 2004
Publication of Telecom Update is made possible by generous
financial support from:
** ALLSTREAM: www.allstream.com
** AVAYA: www.avaya.ca/en/
** BELL CANADA: www.bell.ca
** CISCO SYSTEMS CANADA: www.cisco.com/ca/
** ERICSSON: www.ericsson.ca
** MITEL NETWORKS: www.mitel.com/
** SPRINT CANADA: www.sprint.ca
** UTC CANADA: www.canada.utc.org/
IN THIS ISSUE:
** Carriers Show Improved Results
Telus Reverses Wireline Decline
Rogers Wireless Profit Soars
Microcell Revenues Up 20%
Call-Net Cuts Its Losses
Videotron Sales, Operating Profit Rise
Aliant Blames Strike for Profit Slump
** Primus Launches Cellular Service
** Cellcos Face Class-Action Suit
** Nortel Misses Another Deadline
** Avaya Profits Rise
** Bell Third-Party VoIP Tariff Approved
** Bell-Quebecor Dispute Returned to CRTC
** Inukshuk Calls for Proposals in Yukon
** Bell-NorthernTel Fibre Swap Agreement Nixed
** Sprint Expands Local Phone Coverage
** Emergis Replaces CEO
** Bell, Aliant to Create SMB Innovation Centre
** Reinventing Telecom in 2005
CARRIERS SHOW IMPROVED RESULTS: The following results are for the
quarter ended September 30:
** Telus Reverses Wireline Decline: Led by an 8% increase in
data revenue, Telus wireline sales edged up by 1%
compared to a year ago, reversing a two-year decline.
Overall revenue increased 7.8%; net income rose 37%. Telus
Mobility added a net 136,200 subscribers and reduced
monthly churn to 1.34%.
** Rogers Wireless Profit Soars: Rogers Wireless reports a
profit of $108 million, a 154% increase over the same
period a year ago. Revenue rose 22.5% to $721 million, of
which $36 million was data. Net subscriber additions were
97,500, down 15% from a year ago.
** Microcell Revenues Up 20%: Microcell revenues of $175
million were 20% higher than a year ago; net income was
$2.9 million. Net subscriber additions of 75,773 rose 84%;
per-subscriber revenue rose 11%. Churn increased to 2.8%,
which the cellco attributed to competitor retaliation for
** Call-Net Cuts Its Losses: Call-Net Enterprises neared
breakeven with a quarterly loss of $1.6 million, compared
to a $30 million loss a year ago. Consumer sales rose 8%
and business sales rose 1%. A decline in carrier sales
resulted in a marginal drop in total revenue, to $204
** Videotron Sales, Operating Profit Rise: Videotron Telecom
had sales of $21.5 million (up 18%) and an operating
profit of $4.2 million (up from $2.4 million). Videotron,
Quebecor's cable subsidiary, increased its sales 9.4% from
a year ago to $221 million, and its operating profit by
37% to $90 million.
** Aliant Blames Strike for Profit Slump: Aliant was the
exception to the positive trend. Sales dropped 3.3%
compared with a year ago (to $497 million); net income
declined 27% (to $37 million). Aliant blamed the five-
month strike of its unionized employees, which it says
cost the company $55 million.
PRIMUS LAUNCHES CELLULAR SERVICE: Primus Canada has begun offering
cellular telephone service using the Microcell network. Initial plans
range from $20/month for 250 anytime local minutes to $40 a month for
550 anytime local minutes.
CELLCOS FACE CLASS-ACTION SUIT: Last week's quarterly reports from
Rogers and Microcell revealed that they and the other wireless
carriers face a possible class action suit accusing them of "deceit,
misrepresentation, and false advertising" when they levied so-called
system access fees on customers. The action, filed by a Saskatchewan
lawyer in August, has not yet been certified as a class action.
NORTEL MISSES ANOTHER DEADLINE: Nortel Networks, which had promised to
file its financial results in October, now says that its statements
for 2003 and the first half of 2004, and revised statements for 2001
and 2002, will be completed in mid-November.
AVAYA PROFITS RISE: Avaya's net income for the third quarter was
US$100 million, up 82% from a year ago and 64% from the previous
quarter. Revenues increased 10.8% to $1.08 billion.
BELL THIRD-PARTY VoIP TARIFF APPROVED: The CRTC has given interim
approval to Bell's Internet Voice Access Service, which provides call
origination and termination functionality to and from the public
switched telephone network to Voice over Internet Service Providers
(VISPs). The CRTC ordered Bell to offer the service only to telecom
BELL-QUEBECOR DISPUTE RETURNED TO CRTC: The Federal Court of Appeal
has referred a fees dispute between Quebecor-owned Videotron and Bell
Globemedia-owned RDS (see Telecom Update #361) back to the CRTC,
saying the Commission's original order in RDS's favor may have been
based on "misleading, if not false, evidence" filed by RDS.
INUKSHUK CALLS FOR PROPOSALS IN YUKON: Inukshuk Internet says it will
provide up to $63,000 to fund content and connectivity projects in the
Yukon, and has invited proposals. This is the latest in a series of
regional calls for project proposals.
BELL-NORTHERNTEL FIBRE SWAP AGREEMENT NIXED: The CRTC has refused to
ratify a five-year old fibre swapping agreement between Bell Canada
and NorthernTel, which "through an administrative oversight" was not
filed with the Commission until early 2004. The CRTC says the carriers
must charge each other tariffed rates for the fibre, and orders
NorthernTel to file an interexchange dark fibre tariff in order to do
SPRINT EXPANDS LOCAL PHONE COVERAGE: Sprint Canada has begun offering
local residential and business phone service in three more Ontario
cities: Barrie, Markham, and Richmond Hill.
EMERGIS REPLACES CEO: Former BCE subsidiary BCE Emergis has named
Francois Cote as its new CEO, replacing Tony Gaffney, who will "pursue
other interests." Gaffney headed Emergis for only 17 months: he was
previously President of Bell Nexxia.
BELL, ALIANT TO CREATE SMB INNOVATION CENTRE: Bell Canada and Aliant
plan to open a "Small-Medium Business Innovation Centre" in Saint
John, N.B., in the first quarter of 2005. The Centre will develop IP
applications for the SMB market.
REINVENTING TELECOM IN 2005: The coming issue of Telemanagement,
available to subscribers next week, will feature two in-depth looks at
the trends that will shape business telecommunications in the coming
** "Reinventing Telecom Management, Again," by Ian Angus and
Henry Dortmans, examines the rapidly evolving role of
networking in business, and offers practical guidelines
for managers who must plan and implement change.
** "IP Telephony Today: Changing Everything (Almost)," by
Business Communications Review publisher Fred Knight,
predicts that IP telephony will reach the tipping point in
2005, and explains how that will affect the industry and
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