IP: worth readimng. RE: [broadband] Bell Canada DSL streaming media tax

[David Farber <dfarber () earthlink net>]

-----Original Message-----
From: David Akin <dakin () ctv ca>
Date: Fri, 17 May 2002 10:02:18 
To: "'farber () cis upenn edu'" <farber () cis upenn edu>
Subject: RE: [broadband] Bell Canada DSL streaming media tax



> -----Original Message-----
> From: Dave Farber [mailto:dave () farber net] 
> Sent: Thursday, May 16, 2002 3:07 PM
> To: ip
> Subject: IP: [broadband] Bell Canada DSL streaming media tax
>
>
>
> ------ Forwarded Message
> From: Rich Persaud <persaud () Autometa com>
> Organization: Autometa Corporation
> Date: Thu, 16 May 2002 11:27:56 -0700
> To: Cory Doctorow <doctorow () craphound com>

> Note that SBC (Pacific Bell) of Texas is the largest (20%) 
> shareholder of
> BCE (which controls Bell Canada).

Mmm. Not quite right. SBC owns 20% of Bell Canada, the remaining 80% being
owned by BCE Inc. (Disclosure; BCE also owns CTV and The Globe and Mail, the
news outlets I work for, as well as a host of other telecom concern, most
notably Teleglobe Inc. which filed for bankruptcy protection this week.
Naturally, I don't speak for the corporate masters.)

SBC, in fact, has a put option that's very much in play right now and the
feeling on the street is that SBC is ready to wash its hands of Bell and
force BCE to buy back the 20%. The chief financial officer of Bell was an
SBC guy but he was recently replaced by a BCE guy. There are no SBCers in
the senior executive ranks at Bell.


> SBC is applying similar logic in Canada, via BCE & Bell 
> Canada.  Since a
> competitive DSL market never emerged in Canada, BCE/SBC are 
> using bandwidth
> caps (instead of ISP contracts) to control streaming media 
> distribution in
> Canada.

To all in Canada, it seems evident that SBC is trying to wash its hands of
Bell. The mere existence of an SBC equity stake in another telco shouldn't
suggest that their corporate strategies are similar. (Of course, if folks in
the states have some indications that SBC is pulling Bell Canada's strings,
I'm all ears and would love to tell that story.)

And while competitive DSL providers have been slow to market -- there is
competition, albeit only in built-up urban areas. Canada's communications
regulator, unlike U.S. regulators, has compelled cable and DSL providers to
allow third-party access to the incumbents' central  offices and facilities.

And while there is little DSL competition, there is still plenty of
competition among high-speed providers, between cable and telcos. High-speed
takeup among Canadian consumers is the highest in the world and, in U.S.
dollar terms, the prices are the lowest. No-limit High-speed (3 Mb
downstream, 560 kb upstream) service is available from most cablecos in
Canada for less than $30 US a month (cheaper if you bundle some other
telco/cable services.).

Almost all telco and cablecos in Canada have taken steps in the last few
months to bring in some new price schedules. While Bell has introduced some
bandwidth caps, it has also lowered prices for a basic high-speed service.
Its cable competitors are doing the same thing.

As the market matures in Canada and existing competitors introduce new
pricing schemes, CLECs, ISPs and others here are already examining new ways
to compete in the market. Hopefully, one of those entrants will offer more
detailed metered pricing which takes into account how much backbone
bandwidth a user consumers compared to the consumption of bandwidth on a
regional or local hub.

David Akin
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CTV News                               The Globe and Mail
National Business                     Contributing Writer
and Technology Correspondent        
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Office: 416.313.2503                         dakin () ctv ca
Mobile: 416.528.3819                dakin () globeandmail ca
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