Subject: [NEXTEL-1] Telecom Update #425, March 22, 2004

From: Marcelrf <[email-masked]>
Date: Mon, 22 Mar 2004 13:56:26 -0500

************************************************************
TELECOM UPDATE 
************************************************************

IN THIS ISSUE: 

** MTS Shares Fall on Allstream Deal
** Nortel Suspends CFO, Controller
** Vonage Readies Canadian Launch
** Staff Cuts at 3Com Canada
** Fired Videotron Execs Win Severance
** Competitors Get Power Rebates
** Telus Calling-Area Expansion Terms Approved
** Phone Card Company Fined $750,000
** Aliant Union Seeks New Strike Mandate
** Two Toronto Conferencing Suppliers Join Forces
** Rogers Cable Names New COO
** Royal Host Equips Hotels With WLAN
** Pulver Brings VON to Canada
** Red Ink at Persona
** Telemanagement Online: Last Chance for Charter Rates

============================================================

MTS SHARES FALL ON ALLSTREAM DEAL: Shares of Manitoba Telecom 
Services fell 10% following last Thursday's announcement that 
it plans to buy Allstream Inc. for $1.7 billion. (See the 
Telecom Update Extra published March 18.) Many market 
analysts had been expecting MTS to reorganize as an income 
trust.

** BCE, which owns 21.7% of MTS, says it will "consider its 
   alternatives," because the acquisition is "a significant 
   change in the strategic direction of MTS." 

NORTEL SUSPENDS CFO, CONTROLLER: Nortel Networks has put its 
CFO and Controller on paid leave of absence pending 
completion of the current review of the company's finances. 
(See Telecom Update #424)

VONAGE READIES CANADIAN LAUNCH: At the Merrill Lynch Global 
Communications Conference in New York last week, Vonage CFO 
John Rego said the company would launch its Internet 
telephony service in Toronto, Montreal, and Calgary "in about 
two weeks." Canadian pricing will be similar to that offered 
in the U.S., adjusted for currency.

** According to published reports, Yak Communications and AOL 
   Canada also plan to offer VoIP services later this year.

STAFF CUTS AT 3COM CANADA: 3Com has laid off an undisclosed 
number of Canadian employees as part of a decision to rely 
"more heavily on distributors and resellers." Among the 
employees dropped was Canadian general manager Bruce Comeau, 
hired just six months ago.

** In the nine months ended February 28, 3Com Corporation 
   lost US$331 million on global revenues of $516 million.

FIRED VIDEOTRON EXECS WIN SEVERANCE: The Quebec Superior 
Court has ordered Videotron Telecom to pay three former 
employees a total of $900,000 to cover severance and other 
amounts owed. CEO Pierre Karl Peladeau fired the three senior 
managers in 2001, shortly after Quebecor acquired the 
company.

COMPETITORS GET POWER REBATES: The CRTC has ordered Bell 
Canada to pay rebates to co-locating carriers for power 
charges they paid between November 2000 and September 2002. 
The Commission said the competitors should not have to wait 
for the "significant sums" until Bell's new power pricing 
rates are approved.

www.crtc.gc.ca/archive/ENG/Decisions/2004/dt2004-18.htm

TELUS CALLING-AREA EXPANSION TERMS APPROVED: CRTC Telecom 
Order 2004-90 approves a Telus tariff spelling out the terms 
and conditions that will apply to government requests to 
expand local calling areas in Alberta and B.C.

www.crtc.gc.ca/archive/ENG/Orders/2004/o2004-90.htm

PHONE CARD COMPANY FINED $750,000: Teleresolve, an affiliate 
of a Gold Line Telemanagement (Richmond Hill, Ontario) has 
agreed to pay an "administrative monetary penalty" of 
$750,000 for allegedly charging hidden fees and higher-than-
advertised rates, and providing fewer minutes than promised, 
on its Wow and Lily prepaid long distance phone cards.

** The Competition Bureau says Teleresolve has also agreed to 
   provide a 50% credit to purchasers of the cards.

ALIANT UNION SEEKS NEW STRIKE MANDATE: Following the 
breakdown of negotiations with Aliant, two unions 
representing 4,300 employees are holding a strike vote. The 
workers could be in a legal strike position in April. (See 
Telecom Update #411)

TWO TORONTO CONFERENCING SUPPLIERS JOIN FORCES: Globalive 
Communications, a teleconferencing wholesaler, has agreed to 
buy up to 47% of Enunciate Conferencing. Enunciate will 
assume management of Globalive's Assemble conferencing 
product in Canada. Both companies are Toronto-based. 

ROGERS CABLE NAMES NEW COO: Rogers Cable has named Michael 
Adams, formerly with U.S. cableco RCN Corp, as Chief 
Operating Officer, with a mandate to lead Rogers' move to 
Internet telephony. Adams replaces Dean MacDonald, who 
resigned earlier this month. (See Telecom Update #423)

ROYAL HOST EQUIPS HOTELS WITH WLAN: Bell Canada has 
contracted with Calgary-based Royal Host to provide high-
speed wireless LAN Internet in 5,000 rooms at 36 Royal York 
hotels across Canada. 

PULVER BRINGS VON TO CANADA: Pulver.com has announced that 
VON Canada 2004, a conference and trade show focusing on "the 
IP communications revolution," will be held in Markham, 
Ontario, May 18-20. Pulver has organized similar events in 
the U.S. and Europe since 1996.

www.pulver.com/canada2004/index.html

RED INK AT PERSONA: Persona, a St. John's-based cableco, 
reports revenue of $226 million for the 16 months ended 
December 31, including $15 million from telecom operations. A 
net loss of $6.1 million compares with a profit of $6.5 
million for the year ended August 31, 2002. (See Telecom 
Update #418)

TELEMANAGEMENT ONLINE: LAST CHANCE FOR CHARTER RATES: 
Subscribers to Telemanagement Online get the current issue a 
week before it is mailed, and have exclusive access to our 
online library of past issues, reports, and editorials. 
Subscribe now: Reduced Charter Subscription rates expire 
March 31. 

www.angustel.ca/teleman/tm-sub-online.html.

** Telemanagement #213 includes a special feature report by 
   Henry Dortmans on how suppliers view corporate RFPs for 
   communications systems and services; and Part Two of John 
   Riddell's survey of IP Telephony Systems for Branch 
   Offices.

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