Results tagged “bell” from IP Communications and Technology
The Post states that multiple telecom industry sources have said that Bell Canada and Telus intend to share the cost to upgrade to the next-generation wireless network and that the announcement will be made next week. It is estimated that the cost of the upgrade will be approximately $1 Billion and that it will take one year to complete.
If true, the Nokia Siemens Networks' provided upgrade will allow both companies to compete with Rogers by offering popular mobile devices such as Apple's iPhone 3G and Research In Motion's Black-Berry Bold.
When combined with the recent spectrum auction and the entry of new wireless competitors such as Quebecor, Shaw, DAVE Wireless and Globalive, the 3G announcement will contribute to significant change in the Canadian Wireless marketplace over the next couple of years.
Great news for Canadian consumers in my view.
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Surpassing most expectations, bidding on Industry Canada's wireless spectrum auction now exceeds $4 billion. Here are the totals as of 4:00 pm today:
| 22.31% | Rogers Communications Inc. | $903,046,000 |
| 19.56% | TELUS Communications Company | $791,476,000 |
| 17.50% | Bell Mobility Inc. | $708,268,000 |
| 14.39% | 9193-2962 Québec Inc. | $582,575,000 |
| 10.68% | Globalive Wireless LP | $432,346,000 |
| 15.55% | Other | $629,520,920 |
| Total | $4,047,231,920 |
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The CTV evening news had a segment on the subject this evening they called "Point, Click and Wait". The report described how Bell and Rogers have been shaping Internet traffic. A Bell spokesman indicated that left unchecked that the heavier users of the Internet would adversely affect the performance of all their customers and that they believe that would be unfair.
In my view, it has nothing at all to do with a concern for fairness. The real issue is that Service Providers have been raking in big profits for years from Internet users who were not using anywhere near the bandwidth capacity that they had been sold. The growth of bandwidth intensive applications did not happen overnight. Had the service providers been conducting proper capacity planning and reinvesting in the infrastructure there would be no concerns about congestion.
Let's hope that Canadians keep up the pressure on regulators and service providers to change their tactics. If allowed to continue its just a matter of time before service providers give preferential treatment to traffic that is in competition with their own services. If that happens, it will stifle innovation and competition (Bell's shaping of their ISP customers' traffic has already, in effect, negatively impacted competition) and will put Canadians at a disadvantage relative to other countries.
NOTE:
Net Neutrality is a term that describes the concept that all network traffic traveling over the Internet is treated equally. A lack of neutrality indicates that some traffic may be expedited or given other preferential treatment relative to other types of traffic. Another form of lack of Net Neutrality would be when a service provider does not hinder the routing of a particular traffic-type for an additional cost (Shaw has already used that tactic).
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"I have to make sure that both in law and effect, the company will be controlled by Canadians," von Finckenstein said in an interview. "I think with the provisions as we conditioned them, it will be."
With the ruling, it appears that all legal and regulatory hurdles have been cleared. However, the dynamic and deteriorating conditions in the financial markets and the associated credit crunch has cast some doubt as to whether all of the financial participants will follow through with their commitments.
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It's nice to see a faint glimmer of innovation for residential phone
subscribers. It would have been nicer if the service had been added to the
existing voicemail service. Being forced to pay extra for a service that has
been a normal feature of IP Telephony for years, does not enhance value.
With respect to residential POTS (Plain Old Telephone Service) there is no
doubt that service quality and reliability is outstanding. In fact, for most
Canadians, residential voice service, offered by the Incumbent Providers is so
reliable that we rarely give it a second thought. When was the last time you
wondered if you would hear dial-tone when you picked up the receiver? However,
even though there have been tremendous advances in communications technology,
residential voice services have remained relatively unchanged for decades.
The other offering is innovative, interesting and could lead to some new and
useful applications. Named, Text to Landline Service, the Bell Mobility
offering enables clients to send text messages to any landline phone. Text
messages are converted into an automated voice message delivered to the
recipient's phone. The message can then be heard live or is sent to voicemail
if the call is received by an answering machine or voicemail. A confirmation
message is sent to the sender indicating whether the message was successfully
delivered to a live person or a voicemail system. If delivered to a person, the
recipient will have the option to respond immediately by sending a voice
message back to the original sender, who automatically receives a notification
message. The Text to Landline service works with any landline in
Mobile services are becoming increasingly more functional, reliable and
cheaper. That, combined with Internet Telephony alternatives and the snail-pace
of innovation in POTS, is combining to convince me that perhaps its time to cut
the cord and save a few bucks a month.
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Other big wins have included:
- $213M contract with the Department of National Defense
- $90M deal with Yellow Pages
- $140M contract with Government of Ontario
Telus' success in Eastern Canada is impressive growing from about 300 people in Ontario and Quebec in the year 2000, to 10,000 today.
The company was quick to embrace IP-based communications technology which I'm certain has contributed to their success in the east. I expect continued aggressive growth for the company at the expense of Bell Canada which will continue to be encumbered by the pending takeover by Ontario Teachers' Pension Plan.
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BCE shares closed down almost 4% yesterday at $34.95 as some investors begin to have doubts whether the Ontario Teacher's Pension $52B takeover of Bell Canada will be completed.
Contributing to the uncertainty, was Blackstone Group LP's suggestion that a $6.4B deal to buy credit-card payment processor Alliance Data Systems Corp. might fall through.In addition, amid the global credit crunch, due in large part to the US sub-prime mortgage fiasco - a wonderful example of greed and corruption - investors are concerned the $32B in debt funding necessary for the Teacher's to complete the deal, could evaporate.
In my view, the sooner the deal falls apart, the better for everyone involved. At a time, when Bell should be cannibalizing their own commoditized services with innovative offerings and expanding into their competitors' territories, they are nearly paralyzed as they focus on strict cost controls while employees wonder about their future.Even if the deal closes successfully, there will likely be a lengthy period of adjustment as the new owners take control. Bell Canada needs to invest and innovate and I doubt that the new owners will be in an investing mood given that they are going in with a $32B debt obligation.
On the positive side, it's a great opportunity for TELUS, Rogers and Allstream.
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Statistics Canada is reporting that Canadian cable operators are continuing to lure away residential phone customers away from Bell Canada and Telus. In a publication released yesterday, Canada's national statistics agency reports that as of August 31, 2006, the cable operators, led by Videotron, Rogers, Shaw and Cogeco, had 927,463 telephone customers. That is four times more clients than they had a year earlier.
Many of the incumbents' customers are lured away by attractive bundling options offered by the cable operators. While the rate of growth has slowed, the cable operators continue to chip away at the incumbents' customer base. As the rate of growth slows, I anticipate that the cable operators will enhance their service offering and begin to offer more aggressive pricing.
In my view, Bell and Telus have limited options:
1. They could just ignore the competitive threat if they believe that the bulk of the damage has already been done. I'm confident that this option is not viewed as a viable option by either of the incumbents.
2. With the regulatory handcuffs removed, they can begin to lower prices. While we are likely to see price reductions by all players, playing the pricing game is not in their best interest.
3. Innovate! In my view, increased innovation is the most significant consumer benefit of increased competition; not reduced prices. By offering enhanced telephony offerings and integrating mobility, Internet and television features, Bell and Telus can stem the flow of customers to their competitors without slashing their telephony profit margins.
Rick McCharles
Telecom Consultant, Toronto
RIC Services
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Moments ago, Industry Minister Jim Prentice announced that a portion of the spectrum up for auction next spring will be reserved for industry newcomers.
The move, along with other factors such as the impact of the iPhone and yesterday's announcement by Verizon will lead to increased competition and lower prices for consumers. To date, Canadians wireless rates have been higher than similar services in the United States and Europe.
The Canadian telecom market is currently led by Rogers, Telus and Bell.
Rick McCharles
Telecom Consultant, Toronto
RIC Services
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I will be on the phone with Rogers to insist that they reduce the outrageous $60.00 / month I pay for my unlimited data service; an unlimited service that is only unlimited if Rogers deems that I'm not exceeding their unknown threshold!
Rick McCharles
Telecom Consultant, Toronto
RIC Services
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