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Don't Under-estimate Bell
by
Mark Evans
on Fri 13 May 2005 05:43 PM EDT | Permanent Link
With all the reaction about the CRTC's Internet telephony decision, you would think it prevents ILECs such as Bell and Telus from competing in the market at all. In fact, they can still do business; they just have to file their pricing with the CRTC. And with a new system to accelerate the decision-making process, this isn't as much of a hassle as it was six months ago. It would be a big mistake to under-estimate the brand power and customer loyalty enjoyed by Bell and Telus. As much as people love to hate the telephone company, it's not like they've been fleeing to alternatives such as VOIP or circuit-switch service provided by Primus and Call-Net. As much as it seems counter-intuitive, consumers may very well do business with Bell, Telus, Sasktel and Aliant even if it costs more. There's the convenience of a single bill, the ability to keep same phone number, five 9s reliability, and the comfort of the brand. If consumers always took the cheap route, Dell wouldn't have the market share it has in the PC market, and no-name products such as laundry detergent would have put a huge dent in Proctor & Gamble's business. For a variety of reasons, people seem to be getting carried away with the CRTC's decision. We all need time to step back and reflect on what it really means and what happens next.
Comments
Re: Don't Under-estimate Bell
by
Anonymous
on Fri 13 May 2005 07:43 PM EDT | Permanent Link
You're completely right Mark.
I'm personally tired of the whining and bitching. I just read a press release from the Telecommunications Workers Union President, Bruce Bell. In it he states, "During the VoIP proceeding, we asked the Commission to consider the impact that growth of VoIP service will have on wireline subscribers. It's great that the CRTC decided to regulate phone companies' VoIP rates. But it should regulate the VoIP service that is provided by the cable companies, as well. Otherwise, as growth in VoIP use reduces phone companies' wireline revenues, subscribers who continue to rely on wireline service will be forced to pay higher and higher rates. Nothing in this decision addresses that issue,". This guy conveniently forgets to mention that Cable networks are just not as far-reaching as Wireline providers, so competing 'el-cheapo' voip-over-cable just won't be available everywhere. Those is non-cable serviceable markets will still buy DSL from you guessed it, Bell, Telus, or a reseller. Wireline providers will still maintain a monopoly in those markets. But wait, another thought comes to mind. Shouldn't a Telecommunications Worker Union boss have a little more faith in the product and services that he indirectly represents? Wireline (PSTN) phone services will still offer close to 100% uptime, and even in 5 years - I doubt voip will achieve that. Roll with the times people and adapt folks. I used to work for a Telco-oriented company and got laid off during the restructuring of 2000-2001. Guess what? I went to work for an ISP. Hey Bruce, if things look grim - chin up! You can always start a Voip Workers Union. Re: Don't Under-estimate Bell
by
Charlie Barker
on Mon 16 May 2005 10:57 AM EDT | Profile | Permanent Link
I see VOIP adoption being a ten year process not an overnight sensation. Anyone not agree?
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