It looks like Shaw Communications will be the first Canadian cableco to launch an Internet telephony service using VOIP-based technology. At the company's AGM yesterday, CEO Jim Shaw said customers in Edmonton will be offered the service within a few weeks. The service will cost about $60 a month and include 1000 minutes of long-distance and four calling features - similar to what Mr. Shaw said a year ago. The company believes it can win 20% of the telephony market within the next four to five years. It expects to spend $105-million in capital for the first 200,000 customers, and $200-million to $250-million over five years.
Like Comcast earlier this week, Shaw is adopting a premium price approach to Internet telephony. At $60, I have serious doubts they will be able to achieve the market share gains management has targeted. Using traditional service now, even if you use plenty of LD and lots of features, $60 represents a hefty monthly bill. Does it really make sense to switch over to a cableco if the price difference is minimal?
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Comments
Re: Shaw Launching VOIP Soon
by
Anonymous
on Fri 14 Jan 2005 06:53 PM EST | Permanent Link
Would people like to switch their phone #, in order to get Shaw's digital phone service?
Re: Re: Shaw Launching VOIP Soon
by
Mustardman
on Sun 16 Jan 2005 08:21 PM EST | Profile | Permanent Link
You will be able to keep your current number. Just like with Primus.
Re: Shaw Launching VOIP Soon
by
Anonymous
on Mon 17 Jan 2005 04:19 PM EST | Permanent Link
I suspect that the $60 price will be without bundling. I would bet that if you're willing to bundle internet and digital tv, they'll offer a great discount.
At $60, Shaw is only likely to attact dissillusioned Telus customers. It should be easy for Telus to offer a competitive bundle at a similar price, preventing migration of their core customer base. I've got basic Telus service ($28) and a Vonage line for my business ($20) -- a better deal, with 500 minutes LD included. Re: Shaw Launching VOIP Soon
by
Anonymous
on Tue 18 Jan 2005 02:21 PM EST | Permanent Link
I don't need anybody's VOIP services. I can now talk to anybody who has a high speed connection anywhere for free using Skype.
Re: Shaw Launching VOIP Soon
by
awparran
on Thu 20 Jan 2005 07:34 PM EST | Profile | Permanent Link
I work for an Ameircan company in British Columbia. I suuport the Road Runner high-Speed service available exculsively in the US.
Last year they introduced VOIP to several of their customers and several months ago expanded that service. They offer their service for $35 US a month with unlimited Long Distance calling. They have a lot of people signing up as indicated by the number of calls we receive. Customer's using that service have crystal clear communications, far better than cellphone, portable phone, or the old analog phones. The only drawback to such an offering is the service itself. Since I have been with Shaw, I'd say our Internet uptime has been 99.8%. In the LA area, Kansas City, Waco, Texas, and a few others, there is no way I'd have VOIP. Their up time is very poor. If I did opt for VOIP in those areas I'd keep a fully charged cellphone at hand and two tin cans and a string for backup. If the the customer losses Internet Service, their VOIP digital phone still works. I personally took a call from a very irate customer in Kansas City that had a power failure in his neighborhood, knocking everything out. Because he had placed so much trust in the VOIP technology, they had disabled their regular telephone service. They did not have cellphones, thus the customer ran next door to use a neighbors cellphone. And then there are the honest mistakes. Sometimes, even when when we are alerted to the fact that the customer has a digital phone, during the heat of troublehsooting we forget and reset the customer's modem at which point all we hear is silence. OOPPSSS!! Resetting a customer's modem, if they are calling on said modem, knocks them off the air. This is only temporay, and may even get the customer's Internet Service back, but for us, we are sitting red-faced, listening to silence. So would I sign up for Shaw's VOIP? $60 a month for 1000 minutes LD is extremely high when compared to that offered in the US. We don't use 1000 LD minutes a month, let alone 50. Add to that Digital Cable and Internet we'd need cash grants each month. My answer is not at this time. I think we'll just stay with our regular service until Shaw offers something more exciting and competitive. Tony Re: Re: Shaw Launching VOIP Soon
by
Mark Evans
on Sun 23 Jan 2005 11:55 AM EST | Profile | Permanent Link
good insight. it's good to get an american perspective on VOIP where the price of local telephone service makes VOIP more attractive and viable than in Canada. Given there are less than 30,000 consumers using VOIP up here, we don't get a lot of feedback on how the service fares.
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