published weekly by Angus TeleManagement Group
Number 546: September 15, 2006
Publication of Telecom Update is made possible by generous
financial support from:
** AVAYA: www.avaya.ca/
** BELL CANADA: www.bell.ca/home/Home_Business.page
** BIG PIPE: www.bigpipeinc.com
** CISCO SYSTEMS CANADA: www.cisco.com/ca/
** ERICSSON: www.ericsson.ca
** MICROSOFT CANADA: www.microsoft.com/canada/telecom/
** NEC UNIFIED SOLUTIONS: www.necunifiedsolutions.com
** ROGERS TELECOM: www.rogers.com/solutions
** VONAGE CANADA: www.vonage.ca
IN THIS ISSUE:
** Telus to Become Income Trust
** Stock Market Voodoo=20
** 2006 Telecom Hall of Fame Awards Announced
** Wireless-Only Households Jump to 615,000
** Telus to Run Ontario Government Network
** Bell Opens Montreal Testing Lab
** Rogers Provides Corporate Email Encryption
** Nokia, Nortel Chosen for Telus Broadband Project
** SaskTel to Launch Winnipeg Directory
** Rates for Toll-Free Carrier ID to Be Amended
** U.S. Wireless Auction to Reap $13.7 Billion
** MTS Buys Rural Manitoba Cableco
** Boisvert Steps Down as Telesat CEO
** Top Educators to Address "Enterprise Networks"
TELUS TO BECOME INCOME TRUST: If all goes as planned, Telus
Corporation will become Canada's largest income trust following a
special shareholders' meeting in January 2007. The carrier recently
exhausted the tax shield it acquired by buying Clearnet in 2000:
converting to an income trust will substantially reduce its future tax
liabilities. Telus shares jumped 13.5% following the announcement.
STOCK MARKET VOODOO: Earlier this year investors yawned when BCE
converted a big part of its assets into an income trust, and the BCE's
stock price barely budged. But Telus's announcement this week caused
BCE's stock to jump 8.5%. Does anyone really believe that the stock
market is rational?
2006 TELECOM HALL OF FAME AWARDS ANNOUNCED: The six telecom pioneer
and industry leaders who will be officially inducted into Canada's
Telecom Hall of Fame at a gala dinner in Toronto on October 16 were
announced this week. The 2006 laureates will be:
** Inventors and Innovators: Edward Rogers Sr (batteryless
radio) and Donald Hings (walkie-talkie)
** Icons of Business: Ted Rogers (Rogers Communications) and
Leila Wightman (Wightman Telephones in rural Ontario)
** Servants of the Public: Ernie Saunders (senior regulatory
lawyer at Bell Canada)
** Advocates and Academics: Francis Dagger (champion of
public interest in telecom, driver behind government
ownership of western telcos)
** Special Recognition Award: "Digital World" (the SL-1/DMS
digital switching technology developed by Bell-Northern
Research and Northern Telecom in the 1970s)
WIRELESS-ONLY HOUSEHOLDS JUMP TO 615,000: Statistics Canada reports
that 615,000 Canadian households were using only cellphone service at
the end of 2005, a jump of 285,000 from the previous year. Incumbent
telcos' wireline revenues dropped by 3.8% in the year ending March 31,
2006, while wireless revenues shot up by 17.2%.
TELUS TO RUN ONTARIO GOVERNMENT NETWORK: The Government of Ontario has
awarded Telus a five-year $140 million contract to supply and manage
the data network that links 1,500 government locations across the
province. The previous provider was EDS Canada, utilizing network
services from Bell Canada and Telus.
BELL OPENS MONTREAL TESTING LAB: A new Bell Canada laboratory in
Montreal includes $100 million in technology and 125 km of fibre optics.
It will test new products developed by Bell and other suppliers.
ROGERS PROVIDES CORPORATE EMAIL ENCRYPTION: Rogers Business Solutions
has launched "Canada's first subscription-based encryption email
service" for business users. The IBM-hosted service is $8.95 per email
address per month.
NOKIA, NORTEL CHOSEN FOR TELUS BROADBAND PROJECT: Nokia and Nortel
Networks will be major suppliers for Telus's $600 million broadband
networking project. Nokia has a $150 million contract as integrator
and installer of the telco's IP access network; Nortel will provide
multimedia integration services. (See Telecom Update #545)
SASKTEL TO LAUNCH WINNIPEG DIRECTORY: DirectWest, SaskTel's phone book
publishing subsidiary, says it will spend $3 million to launch a
competitive directory in Winnipeg. DirectWest already publishes
competitive directories in five Alberta cities, including Edmonton and
RATES FOR TOLL-FREE CARRIER ID TO BE AMENDED: CRTC Telecom Decision
2006-57 notes that the costs of the incumbent telcos' 800/888 Carrier
Identification services, charged to competing carriers, have not been
reviewed since 2001. The Commission says "costs for this database
service have likely declined significantly" and directs Bell Aliant,
Bell Canada, MTS Allstream, SaskTel, and Telus to file amended tariff
pages and cost studies within 45 days.
U.S. WIRELESS AUCTION TO REAP $13.7 BILLION: There were only two bids
in the latest round of the U.S. auction of broadband wireless
spectrum, indicating that the process is nearly complete. Top bidders
to date are T-mobile, Verizon Wireless, and a consortium of cablecos
and Sprint Nextel. The bids now total US$13.7 billion. (See Telecom
MTS BUYS RURAL MANITOBA CABLECO: MTS Allstream has bought Valley Cable
Vision, which provides cable TV and Internet service to about 4,000
customers in southern Manitoba.
BOISVERT STEPS DOWN AS TELESAT CEO: Larry Boisvert has retired after
13 years as President and CEO of Telesat Canada. He is replaced by Dan
Goldberg, previously CEO of the Netherlands-based satellite company
SES New Skies.
TOP EDUCATORS TO ADDRESS "ENTERPRISE NETWORKS 2006": Among the
speakers and topics at the Enterprise Networks conference, to be held
October 24-25 in Toronto:
** Gary Audin, "Convergence Crosses Boundaries: Time for a Reality Check"
** John Riddell, "New Age Enterprise Wireless"
** Michael Dunne, "IP Planning, Migration, and Implementation"
** Henry Dortmans, "What Every Enterprise Needs to Know about This Industry"
For more information and to register online, visit
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