Adam Bender

Blogs are buzzing about a $3.99 per month Vonage retention plan for customers who try to cancel service, but the “limited usage” plan might not be the steal bloggers think it is. For one thing, the plan is actually $4.99 per month, a Vonage spokesman said. And unlike with Vonage’s normal plans, Vonage charges retention customers $0.039 more per minute, he said. Vonage’s basic $14.99 per month plan gives users 500 minutes with no added charge. A retention customer using 500 minutes in a month would have to pay Vonage $24.49. The four-year-old program is “by no means a new plan” and fewer than one percent of customers are on it, he said. The promotion “does not significantly impact the company’s financial condition,” he added.

Google acquired voice management firm GrandCentral Communications, Google Product Manager Wesley Chan said Monday on the company blog. Financial terms were not disclosed. GrandCentral gives users one phone number that can be set to ring multiple phones, and one central voice mailbox. Users can sign up for an invitation to register for the free Google GrandCentral beta. The company does not yet have a post-beta pricing plan, a spokesman said.

Bell Canada Enterprises may have agreed Saturday to a buyout, but that decision is by no means final, Seaboard analyst Iain Grant told Communications Daily. Teachers Private Capital, Providence Equity Partners and Madison Dearborn Partners agreed Saturday to pay $48.5 billion cash to acquire Bell Canada Enterprises (BCE) in a private equity transaction larger than last May’s $27.5 billion Alltel buy and the largest in Canadian history, BCE said. But shareholders have not approved the deal, and now that losing bidders know the price another offer could arise, the Montreal-based analyst said.

Colleges’ Universal Service Fund (USF) costs will rise “astronomically” if the FCC moves fund contributions from a revenue- to a numbers-based approach, universities and a higher education group told Communications Daily. Colleges could have to choose between removing dormitory phones and paying the drastically higher fees, they said. Either way, there will be “negative financial, technical and social impact,” said Jeri Semer, executive director of the Association for Communications Technology Professionals in Higher Education (ACUTA). FCC chairman Kevin Martin last May said he has “long favored” a numbers-based model and plans to propose to reform USF contribution this fall (CD May 15 p1).

U.S. investment in Panamanian telecom infrastructure will rise if Congress approves a free trade pact signed Thursday by the countries, said Michael Nunes, Telecommunications Industry Association director- international and government affairs. “We see a lot of investment in next-generation systems in Panama as its broadband and cell infrastructure investment goes up,” he said. The agreement, signed by U.S. Trade Representative Susan C. Schwab and Panamanian Minister of Commerce and Industry Alejandro Ferrer, would end tariffs and other trade barriers between the countries. TIA said a similar free trade agreement to be signed Saturday with South Korea will be a “critical pact for the technology sector.”

The name still may be Sprint Nextel, but a new sales pitch might give another impression. A marketing campaign Sprint debuted Wednesday drops the Nextel name. The same day Sprint announced that Keith Cowan will take over as president, strategy planning and corporate initiative, with Sprint/MSO Joint Venture President John Garcia becoming senior vice president of product management and development. The shifts, two days before AT&T’s iPhone launch, reflect “coincidental” good timing, Sprint spokesman Dave Mellin told us.

To encourage rural broadband deployment, the FCC should redistribute rural wireless Universal Service Fund (USF) subsidies, Qwest said Wednesday. The Bell filed a plan with the FCC to alter the USF to bring broadband to unserved areas without raising USF fees and surcharges shown on phone bills. The plan would divert money from wireless competitive eligible telecommunications carriers (CETCs) by distributing CETC subsidies per household instead of per connection. About $1 billion of the $4 billion “high-cost” portion of the USF goes to wireless CETCs, but half of wireless customers are on family plans, averaging three lines per household, said Steve Davis, Qwest public policy senior vice president. A per-household system would free funds for use in upping broadband deployment, he said.

U.S. District Court Judge Claude Hilton did not sufficiently instruct the jury in the Verizon patent case, Vonage attorney Roger Warin said Monday during the Verizon v. Vonage oral argument at the U.S. Court of Appeals for the Federal Circuit. But it might be too late for Vonage to voice such arguments since they had opportunity to do so in the lower court, attorney Richard Taranto said for Verizon. The court should decide by the end of next month whether to overturn the lower court’s injunction barring Vonage from using the disputed patents, Stifel Nicolaus analysts said.

Subpoenas will be issued for surveillance documents related to wiretapping and electronic surveillance, a Senate Judiciary Committee vote determined Thursday. The committee voted 13-3 to authorize Chairman Patrick Leahy, D-Vt., in consultation with ranking member Arlen Specter, R-Pa., to issue subpoenas to Attorney General Alberto Gonzales and the executive office records custodian for “all documents related to the Committee’s investigation into the Administration’s operation of a warrantless domestic surveillance program outside of the provisions of the Foreign Intelligence Surveillance Act, and its legal analysis for this program.” Republicans Specter and Sens. Orrin Hatch, R-Utah, and Charles Grassley, R-Iowa, supported the authorization, along with all Democratic committee members.

The U.S. Supreme Court ruled 8-1 Thursday to strengthen Private Securities Litigation Reform Act curbs on “nuisance filings” by investors, in a case involving Tellabs. The 7th U.S. Circuit Court of Appeals used an “erroneously low standard” to decide if investors filing a 2002 class action against Tellabs satisfied a PSLRA standard requiring that “strong inference” existed to suggest Tellabs and then-CEO Richard Notebaert knowingly defrauded shareholders, Justice Samuel Alito said in a concurring opinion. Such a “strong inference” for knowing fraud (known as scienter) must be “cogent and at least as compelling as any opposing inference one could draw from facts alleged,” Supreme Justice Ruth Bader Ginsburg wrote for the U.S. Supreme Court, which vacated and remanded the 7th Circuit decision in Tellabs v. Makor.