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Technology Stocks : Newbridge Networks

NN 14.21

+1.7%

Nov 28 9:30 AM EST

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To: nord who wrote (7033)	10/18/1998 10:14:00 AM
From: Glenn McDougall	Read Replies (2) of 18016

I will do my best to fill in the few holes not addressed to this point. stentor.ca this will give you a overview of the companies in the stentor alliance. BCE owns Bell (100%) and has a large minority / majority stake in: Telebec Ltee. 100% Northern Telephone 99.9% Northwestel Inc. 100% Newtel Enterprises 55.5% Bruncor 44.9% which owns 100% of NB Tel. Maritime Telegraph and Telephone (MT&T) 34.8% Island Telephone Company 52% Stentor network alliance by ownership (although each telco gets one vote) has been or perceived to have been controlled by BCE. There are rules with the alliance that restrict business being done in other alliance members areas. Yes Canada has had a type of monopoly with Canadian regulators overseing the entire structure (CRTC Canadian Radio-Television Commision). This arrangement has been and is being modified to allow long distance and now local competition to occur. Ian, your comments re the AT&T Canada position is correct. To my knowledge AT&T owns 25% - 30% of AT&T Canada with 3 Canadian banks owning the balance of the company. Needless to say AT&T runs the company and George Petty who is the CEO of Telus (a x-AT&T employee) wanted to takeout AT&T Canada and run the merged company. AT&T had other ideas. Again Ian I agree the rules of stentor would have inflected a heavy blow to the merged company. Pat, I think that you are correct in the 51% ownership position of BC Tel by GTE. This had occurred prior to the Canadian government restrictions being put in place and was grandfathered. Nedless to say that the merged company would give GTE a 20-30% ownership position and reduce the % below the restricted height thus making the government happy. Ian, I understand your thought process about Bell taking a run at BC Tel however with there newly acquired fiber-optic long distance cable purchase and NATCO ($750 million national network) company just set up I am not sure how BC Tel would fit into the puzzle. Further BCE is a widely held company and the thought of GTE or any other company having a large stake in it would be a surprise. Perhaps BCE could reduce their stake in bell from 100% to a lesser degree. They were willing to have their majority stake of 51% of Nortel reduced to aprox. 41% with the purchase of Bay Networks. Jean Monty is the CEO of BCE and he is the X-CEO of Nortel (and widely credited with vaulting Nortel into the top strata of equipment suppliers in the world). He is one player in the telco field to watch. He has it all vision, brains, ambition, and a large company to further articulate the BCE vision of the future. A number of telcos use NN equipment as well as the Stentor alliance. The comment by Alan that was made is he expected increased revenue from Canada this year. He did not go further and I did not get the occasion to press for further clarification on the matter. Regards Glenn

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