published weekly by Angus TeleManagement Group
Number 528: May 5, 2006
Publication of Telecom Update is made possible by generous
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** ERICSSON: www.ericsson.ca
** MICROSOFT CANADA: www.microsoft.com/canada/telecom/
** MITEL NETWORKS: www.mitel.com/
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** ROGERS TELECOM: www.rogers.com/solutions
** VONAGE CANADA: www.vonage.ca
IN THIS ISSUE:
** Decline of Legacy Services Squeezes Telcos
Telus Leads in Telco Revenue Gains
** CRTC Chair Responds to Telecom Policy Report
** VoIP Drives Primus Canada Revenue
** RIM Offers Free Small Business Server
** Avaya Adds Mid-Sized IP Systems
** Bell to VoIP Customers: Switch Back for Free
** Former CEO Sues Nortel
** Nortel Completes Restatement
** CRTC Hears Do-Not-Call Views
** Internet Registrar Seeks Board Members
** Credit Union Plans Video Kiosks
** Canadian Chip Maker to Work With Nokia
** RIM in New Patent Fight
** Five Million U.S. Households Use VoIP
DECLINE OF LEGACY SERVICES SQUEEZES TELCOS: First quarter financial
results of Canada's four leading telcos show that all are suffering a
decline of local and long distance revenues. Compared to a year ago,
the change in these two categories totalled: MTS -7.4%; BCE -7.3%;
Aliant -3.9%; Telus -1.8% (includes data).
** In 2005, all of the telcos lost local lines, mainly to
competitors: MTS -6.5% (residential only); BCE -3.2%;
Telus -2.7%; Aliant -0.6%.
** Long distance now comprises less than 10% of total
revenues for Telus and BCE. BCE's LD revenue fell 15.2%.
TELUS LEADS IN TELCO REVENUE GAINS: Total revenue of the four telcos
changed as follows: Telus +5.4%; Aliant +3.9%; BCE +2.2%; MTS -0.5%.
Wireless revenue grew by 13% to 17%. Both Aliant and Telus report that
monthly disconnects on postpaid wireless accounts are now under 1%.
** Changes in operating income: Aliant +11.1%; MTS +6.0%;
Telus +1.2%; BCE -3.0%.
** Changes in net income: MTS +3.5%; BCE no change; Aliant
-7.8%; Telus -13.3%. Aliant and Telus results were
affected by significant one-time events.
CRTC CHAIR RESPONDS TO TELECOM POLICY REPORT: In a speech to an industry
forum on April 30, CRTC Chair Charles Dalfen said the Commission is
assessing the Telecom Policy Review panel's recommendations and will
likely implement a number of them on its own initiative.
** Dalfen says he agrees with the principle of "after the
fact" regulation, but only if the Commission is empowered
to impose meaningful penalties.
** His talk mentioned the interview published in Telecom
Update #525b, in which he predicted that business services
in most major cities will be deregulated in 18 months.
Dalfen also expects residential service in Halifax,
Montreal, Toronto, and some major western markets to
VoIP DRIVES PRIMUS CANADA REVENUE: Primus Canada took in $78.6 million
in the first quarter of 2006, "driven by growth in local and VoIP
products." The company has about 73,000 local lines in service.
** Virginia-based Primus Telecommunications Group reports a
US$4 million loss in the quarter; Primus Canada accounted
for 26% of its parent company's revenue.
RIM OFFERS FREE SMALL BUSINESS SERVER: RIM has announced BlackBerry
Enterprise Server Express, enabling small businesses to connect
BlackBerry devices to their office email system. The free software
includes a licence for one Blackberry, and licences can be purchased
for up to 14 more. Businesses that expand beyond 15 devices can
convert the software to a full Enterprise Server by purchasing an
AVAYA ADDS MID-SIZED IP SYSTEMS: Avaya this week introduced three
telecom systems for businesses with 100-500 employees. MultiVantage
Express is an all-in-one IP PBX server, Avaya On Demand provides
IP-PBX and contact centre features on a per-month subscription basis,
and the S8400 Media Server allows customers with older Avaya systems
to migrate to IP telephony.
BELL TO VOIP CUSTOMERS - SWITCH BACK FOR FREE: CRTC Telecom Order
2006-103 says Bell Canada can waive reconnection charges for its
Digital Voice customers who want to return to Bell's wireline local
service. Bell told the Commission in November that some customers
resist migrating to its VoIP service without this assurance.
** Commissioner Langford dissented, saying this violates the
promotion rules and gives a preference to Bell's VoIP
customers over those of competitors.
FORMER CEO SUES NORTEL: Frank Dunn, the Nortel CEO who was fired "for
cause" in April 2004, is suing the company for wrongful dismissal,
defamation, and mental distress. The suit seeks unspecified punitive,
exemplary, and aggravated damages.
** Meanwhile, the Ontario Superior Court has ruled that Dunn must
testify in the Ontario Securities Commission's investigation of
Nortel. Dunn had said his testimony might be used against him in a
U.S. criminal case, but the judge ruled that Ontario law protects
NORTEL COMPLETES RESTATEMENT: Nortel Networks has filed its 2005
annual report, including revenue "restatements" for 2003, 2004, and
the first nine months of 2005. The changes involve US$1.5 billion.
CRTC HEARS DO-NOT-CALL VIEWS: The CRTC's public consultation on how a
Canadian Do-Not-Call list should operate was held this week. Transcripts
of the hearing are posted on the Commission's website.
INTERNET REGISTRAR SEEKS BOARD MEMBERS: The Canadian Internet
Registration Authority has appointed a Nomination Committee to find
candidates to fill three positions on its Board of
Directors. Proposals must be received by June 3. For information, see
CREDIT UNION PLANS VIDEO KIOSKS: Vantis, a Manitoba Credit Union with
22,000 members, is installing video kiosks in all of its branches to
allow customers to consult face-to-face with service reps. The system,
the first of its kind in a Canadian financial institution, is being
deployed by MTS Allstream, using Nortel's SIP multimedia platform.
CANADIAN CHIP MAKER TO WORK WITH NOKIA: Markham-based ATI
Technologies, a developer of video chips, has entered a long-term
strategic relationship with Nokia to develop mobile multimedia
RIM IN NEW PATENT FIGHT: Visto, a California-based developer of
wireless email products, is suing Research in Motion, alleging that
its BlackBerry product infringes on of four Visto patents. RIM has
countersued, asking a Dallas court to rule that no patent infringement
has taken place.
FIVE MILLION U.S. HOUSEHOLDS USE VoIP: TeleGeography reports that 5.4
million U.S. households now subscribe to a Voice over IP service,
twice the number one year ago. The research firm predicts that
one-fifth of U.S. households will use VoIP in 2010.
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