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EPHO
http://biz.yahoo.com/prnews/030624/netu025_1.html
On May 9th 2003, ePHONE announced that it had agreed to merge with Champion Teleport of Greenwich, CT, an affiliate of Alphastar International. The merger will enable ePHONE to offer a full suite of value added VoIP telephony, wireless and Wi-Fi broadband services.
Further, the newly merged company intends to consolidate the rapidly growing and highly fragmented wireless / Wi-Fi broadband and VoIP industries.
The merger is expected to be consummated within the next several weeks. Dr. Mahmoud Wahba, President of Champion Teleport, was recently appointed to ePHONE Board of Directors.
gramps2
TELUS Deploys National Voice over IP Network Based on Nortel Networks Technology
09:03 EST Monday, November 18, 2002
RESEARCH TRIANGLE PARK, NORTH.CAROLINA--Nortel Networks (NYSE:NT)(TSX:NT) announced today that TELUS, one of Canada's largest telecommunications companies, is migrating its national circuit-based long distance network traffic to a packet-based network with Nortel Networks voice over IP (VoIP) equipment.
At the heart of TELUS' new packet-based national voice solution are Nortel Networks Succession Communication Server 2000 softswitches and Nortel Networks Passport Packet Voice Gateways (PVG). TELUS' national VoIP network includes voice gateways deployed at 11 major locations across Canada, enabling voice traffic to be carried on TELUS' national high-speed IP backbone with carrier grade voice quality.
"Nortel Networks is enabling TELUS to migrate voice services or applications cost effectively to a next generation, packet-based network which is based on IP," said Dr. Girish Pathak, chief technology officer, TELUS. "With Nortel Networks Succession solution, we have leveraged our existing equipment, migrating our toll traffic from other carriers' networks onto our own, and we are significantly lowering our network costs."
"Nortel Networks is in a unique position to effectively enable TELUS' migration to voice over IP because of our detailed understanding of network design and service delivery, our solid circuit-to-packet migration strategy, and our comprehensive voice over IP portfolio," said Sue Spradley, president, Wireline Networks, Nortel Networks. "We are happy to continue our long-term relationship with TELUS, and to work with them in this strategic next stage of their business plan."
VoIP traffic will be transported across TELUS' existing optical network, which is based on Nortel Networks OPTera Long Haul 1600 Optical Line System. Nortel Networks is TELUS' primary supplier for optical, switching and mobility solutions. With this deployment, the two companies have extended a successful, on-going relationship to include voice over IP infrastructure and services.
This initiative positions TELUS for developing new voice applications and services. In support of this, TELUS will also deploy Nortel Networks Succession Centrex IP -- a full feature Centrex service set for an IP infrastructure -- and is trialing Nortel Networks Succession Interactive Multimedia Server for delivery of SIP-based personalization, collaboration and other multimedia services. Both products are key building blocks of Nortel Networks Succession Services portfolio for businesses.
Nortel Networks has the industry's only "SuperClass" softswitch that meets all the criteria for a true service provider circuit-to-packet migration: local, tandem and long distance capability on a single platform; full business and residential telephony service sets; regulatory features like Lawful Intercept and Number Portability; and carrier-grade reliability and scalability.
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global Company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Nortel Networks, the Nortel Networks logo, the Globemark, Succession, Passport and OPTera are trademarks of Nortel Networks.
FOR FURTHER INFORMATION PLEASE CONTACT: Nortel Networks, Ann Fuller, (613) 768-1208, afuller@nortelnetworks.com, or, Nortel Networks, Tina Warren, (905) 863-4702, tinawarr@nortelnetworks.com
Canada Payphone Corp - Street Wire
BCSC-banned Kuhn was fired by Union and IPO Capital
Canada Payphone Corp CPY
Shares issued 23,031,194 Sep 17 2002 close $ 0.20
Wednesday September 18 2002 Street Wire
See B.C. Securities Commission (*BCSC) Street Wire..
by Brent Mudry
The British Columbia Securities Commission's seven-year ban on former Howe Street broker Brian Paul Kuhn, for stuffing client accounts with unregistered shares of a car tire polishing promotion, is the latest setback for the former booster of Canada Payphone. Mr. Kuhn has been featured in three lawsuits with former employers Union Securities and IPO Capital in the past 10 months.
In a consent settlement released Monday, the BCSC notes that in mid-1999, while working at a mystery brokerage, Mr. Kuhn touted and sold $175,000 worth of purported seed shares of North American Marketing, a private company promoting Tire Tux and Tire-Glo tire polishers. Although the regulatory decision made no mention of any brokerages, Mr. Kuhn was working at IPO Capital at the time, after being fired by Union Securities.
Mr. Kuhn made quite a mark during his brief brokerage career. He became a broker in February, 1996, with a short stint at Wolverton Securities, moved that October to Union, which dismissed him on July 15, 1998, effective Sept. 15, 1998. IPO Capital hired Mr. Kuhn a week after Union fired him, but he left the industry a year later, on Aug. 31, 1999.
Mr. Kuhn was already in trouble, if Union is to be believed, before joining IPO, although the BCSC gave him credit for having no previous disciplinary history and for co-operating with its investigation of him.
Union made unflattering allegations against its former broker in a $120,000 suit it filed against him last November. Union claims that sometime after it dismissed Brian Kuhn in mid-1998, it discovered a pattern of regulatory breaches when a number of his clients complained. The allegations have not yet been proven in court.
While the reasons for Mr. Kuhn's termination are not disclosed, Union claims in in its suit that after his departure, a number of former clients stepped forward with claims against the brokerage arising from conduct of Mr. Kuhn that was unlawful, in violation of securities rules and regulations, dishonest, reckless and negligent.
By the time it filed suit, Union had already paid out claims to four clients, totaling $97,000, including $77,200 paid to Haibeck Communications Group Inc. after Mr. Kuhn refused to obey instructions to sell this client's holdings in Canada Payphone, an in-house promotion at Union. Union also paid out about $20,000 to three clients who bought shares of Capital Technologies, which was not registered for trading in B.C.: $7,500 (U.S.) to an unidentified client, $2,500 (U.S.) to Craig Fraser and $3,600 to John Kos.
While this suit has not yet been proven or dismissed, Mr. Kuhn was featured in two other actions, a 1999 suit in which he sued Union and a 2000 suit in which IPO sued him, in which judgments were rendered in the past six months.
In the first suit, Union won a liability decision in July, effectively dismissing Mr. Kuhn's claims against it. Madam Justice Donna Martinson ruled, amongst other things, that Union was entitled to use Mr. Kuhn's reserve account to pay his clients' bad debts. The ruling, which came six months after a six-day hearing ended Jan. 18, was a win for defence lawyer Henning Weibach, representing Union Securities and Rex Thompson, and a loss for Bob Breivik, Mr. Kuhn's counsel.
According to court testimony, Mr. Kuhn was hired by Mr. Thompson on the recommendation of Raymond Sampson, a good friend of Mr. Thompson's and the investor relations representative and a co-founder of Canada Payphone. From Wolverton, Mr. Kuhn brought over 75 per cent to 80 per cent of his book, or about $500,000, almost entirely Canada Payphone shares.
"From the time he was hired (at Union), Mr. Kuhn built his book primarily with CPY stock and he received no pressure during this time frame. Approximately half a million CPY shares were owned by Union and Mr. Thompson personally. CPY traded for over a year at approximately $6 a share, representing a value of that combined position of approximately three million dollars," stated Judge Martinson, based on the testimony of Mr. Kuhn's co-plaintiff, Dana Ratzlaff.
Alas, Mr. Kuhn's star dimmed as Canada Payphone shares eventually collapsed.
"Mr. Kuhn aggressively promoted CPY shares while at Union. He also purchased shares himself, on margin. Initially, the CPY shares did very well, then levelled off and eventually began to fall in value. As a result Mr. Kuhn s client debts accumulated," stated the judge.
Amazingly, Mr. Kuhn claimed he had no clue what brokers' reserve accounts are for, and he testified that he thought his reserve account was a savings account for the broker. Mr. Kuhn also had trouble remembering that he signed several Union documents specifying reserve account details. His former employers, Brent Wolverton of Wolverton Securities, and Union's Mr. Thompson, testified that reserve accounts are standard in the industry and are used largely to offset client account debits.
In the second suit, before a different judge but on a similar issue, IPO failed this spring to win a preliminary summary judgment of $34,225 against Mr. Kuhn.
All of this, of course, is now in the past as Mr. Kuhn has been kicked out of the industry by the BCSC. Hopefully, a new career path might emerge. Mr. Kuhn's BCSC settlement was witnessed in the offshore haven of the Cayman Islands by career coach Kevin Pidwerbeski. "I can truly boast that ALL my clients have risen to the challenge and surpass their own goals whether they are personal or professional," states coach Pidwerbeski on the Web site of Kyosei Consulting International, his employer.
http://www.dbrs.com/web/sentry?COMP=1400&DocId=110161
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The full text of the press release:
Paul Holman, Peter Schroeder / 416-593-5577 ext.2234, ext.2279 / pholman@dbrs.com
DBRS is downgrading the TELUS group to BBB from BBB (high), with the trend remaining Negative. The downgrade reflects the fact that even if the plans announced on May 3 to grow revenues, cut costs, and improve efficiencies are successful, TELUS will face similar debt levels by the end of next year. Moreover, the recent CRTC decision on price caps removed the prospect of additional local revenue, as it effectively prevents local rate increases on about 75% of local voice revenue. Accordingly, the Negative trend remains in place to reflect the execution risk associated with the successful implementation of the cost-cutting plan to be in rolled out by year-end. TELUS has indicated that it expects to improve productivity, while reducing operating costs. With this action, it intends to improve earnings and cash flow during 2003, while reducing debt to EBITDA to 3.0 times. Thereafter, it expects to be in a position to start reducing debt levels. Despite the downgrade, however, the TELUS group remains firmly in the investment grade category at this time.
The downgrade applies to the entire TELUS group as it is considered to have a consolidated credit profile. This results from the inter-company debt that was put in place to help with the acquisition of Clearnet Communications Inc. The internal debt effectively places the creditors at the corporate level (TELUS Corporation debtholders) on par with those at the operating level (pari passu with TELUS Communications Inc. debtholders).
The downgrade takes into account a number of specific issues:
(1) High debt levels, with financial ratios under pressure. Even with a successful execution of the revised business plan, debt levels will remain high next year.
(2) Regulatory decisions that are expected to reduce EBITDA by up $300 million annually. The CRTC decision concerning contribution rates last year will reduce EBITDA by about $230 million, while the CRTC decision this year concerning price caps will reduce EBITDA by up to $45 million this year and $75 million each year thereafter. While TELUS expects to more than cover this with lower operating costs and reduced dividend payout, the net improvements are uncertain.
(3) Cost cutting that has been slow to materialize since the merger of TELUS and BC TEL, and the acquisition of Clearnet. At the time of the merger, there was pressure from local governments and unions to resist downsizing the work force. The differing operating cultures in all these companies have made it challenging to streamline the businesses. As TELUS addresses these issues, with employee reductions later this year, it will incur sizeable cash charges.
(4) Intense wireless competition. TELUS’s wireless operations in western Canada are under increasing competitive pressure from Bell Mobility. As well, TELUS continues to face intense competition in Central Canada from its three main competitors. While TELUS expects to see some easing in price competition and improving cash flow, wireless revenue and customer growth rates could slow, as they have done in the U.S., despite the significant subsidies still provided to new customers.
(5) Costly data network strategy facing intense competition in central Canada. TELUS plans to fund a sizeable capital expenditure program to complete the roll-out of its competitive carrier operations in Toronto and Montreal. This business competes directly with the incumbent, Bell Canada, and the local CLECs. In Canada, as elsewhere, growing revenue by gaining market share from the incumbent telcos represents a significant challenge.
Even with the aforementioned, DBRS is maintaining TELUS’s investment grade status due to:
(1) Significant incumbent telco franchises in B.C. and Alberta that generate stable cash flow.
(2) Reasonable liquidity and minimal debt refinancing requirements. The first major debt maturity is not until 2006.
(3) Easing pressure on internal funding requirements and free cash flow, with lower capex and lower cash dividends.
(4) Revised business plan to reduce costs appears reasonable and management appears determined to achieve the targets. This includes ambitious cost-cutting initiatives leading to cash flow break-even for 2003. As well, tax shelters from Clearnet will reduce TELUS taxes through 2004.
(5) Verizon Communications Inc. owns 24% of TELUS.
While TELUS is investment grade at this time, this could be at risk if operating performance during this period shows no signs of improving and free cash flow remains negative. Conversely, this position would be further supported as performance improves and financial strength grows.
Dominion Bond Rating Service Limited (DBRS) will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, please contact us at: info@dbrs.com <mailto:info@dbrs.com>.
DBRS is a Toronto-based, full-service credit rating agency established in 1976. Privately owned and operated without affiliation to any organization, DBRS is respected for its independent, third-party evaluations of corporate and government issues, spanning North America, Europe and Asia. DBRS's extensive coverage of securitizations and structured finance transactions solidifies our standing as a leading provider of comprehensive, in-depth credit analysis.
Information contained herein is obtained by DBRS from sources believed by it to be accurate and reliable. Due to the possibility of human or mechanical error as well as other factors, such information is provided "as is" without warranty of any kind and DBRS, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. DBRS shall not be liable in contract, tort or otherwise for: (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of DBRS or any of its directors, officers, employees, independent contractors, or agents in connection with, or related to, obtaining, collecting, compiling, analyzing, interpreting, communicating, publishing or delivering any such information; or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including, without limitation, lost profits), even if DBRS is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. In addition to the foregoing, the rights of subscribers of DBRS are governed by the terms and conditions of the applicable Subscription Agreement. In the event of any conflict between this document and the Subscription Agreement, the Subscription Agreement shall govern (without limitation, a conflict shall not include the failure of the Subscription Agreement to cover a matter covered herein). The credit ratings, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities.
TELUS bond June 01/2006 is selling at $87.00, yield over 12%.
Anyone got an opinion? Anyone out there???
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