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Will Rogers Launch VOIP Service by July 1?
by
Mark Evans
on Thu 16 Jun 2005 07:19 AM EDT | Permanent Link
There are a couple ways to read the complete silence surrounding Rogers Communications' launch of a cable telephony service. Either everything is on track for the July 1 target date set by CEO Ted Rogers, or there's still lots of work to be done and Rogers has gone into radio silence until it resolves these issues. According to a Rogers PR person everything's on track for a mid-summer launch, and trials are underway. Still, July 1 (the 20th anniversary of Rogers Wireless) is only two weeks away. One of the big issues Rogers needs to tackle is pricing. The company needs to decide whether it wants to go the Videotron route with low prices so it can quickly win market share; follow Shaw's lead and sell cable telephony as a premium service; or take the middle ground and sell it at attractive prices to customers who already buy other services. From what Ted Rogers has said, he has no plans to follow Videotron's lead. What will be as interesting is Bell's strategic and marketing response. How does an ILEC protect its turf while having little flexibility on price due to regulatory issues? Bell can market its traditional local phone service as high-quality, reliable and inexpensive, or it can roll out its own VOIP service - or it can do both. Either way, Bell needs to respond because Rogers will have plenty of momentum and goodwill as the new kid on the block.
Comments
Re: Will Rogers Launch VOIP Service by July 1?
by
Anonymous
on Thu 16 Jun 2005 10:03 AM EDT | Permanent Link
How does an ILEC protect its turf while having little flexibility on price due to regulatory issues?
I'm not sure you fully get the regulatory issues at hand. Bell can price its Digital Voice offering at any price down to cost. Given that Digital Voice is access-independent, I figure this can go down to about seven bucks or so, net of long distance. But you don't have to believe me -- instead break with the rest of the press by doing some real journalism. Find out from Bell just how low they can go. I think you'll be surprised. Bell can market its traditional local phone service as high-quality, reliable and inexpensive, or it can roll out its own VOIP service - or it can do both. Wait, "can"? Isn't this exactly what Bell is already doing with POTS on one hand and Digital Voice on the other? |
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