At BCE Inc.'s annual analyst event, the sticky issue of net neutrality
was raised during a Q&A. Kevin Crull, who heads up Bell Canada's
residential business, made it pretty clear that Bell like many carriers
in North American struggling to deal with the loss of loss phone
service is exploring the idea of downstream fees and/or QoS charges. Crull's explanation, which sounds much like what many telecom
executives are pitching, is that Bell will "pursue ways to monetize its massive
investment that we are making" in its high-speed network. The
counter-argument is that consumers are the ones who have paid to
build the network over the years, and Bell already monetizes its
investment by charging high-speed access fees, which by the way it's
raising by $2 a month to $46.95. (By the way, Bell had a booth at the conference promoting 12Mbps residential service for all you gamers out there). While there are no regulations to
prevent Bell from hitting service providers with downstream tollgate
fees, Bell COO George Cope (who has become the Canadian telecom industry's champion of disciplined, profitable growth) made it clear demand for high-speed is growing and Bell is very well positioned given it owns one of the two big pipes to the home. One would
think that would give Bell enough of an economic rush without attacking
net neutrality. That said, it could easily happen if Bell can convince Rogers, Telus and Shaw to go along with the idea. If they present a united front, it will be an easier sell from a political,business and consumer perspective. All you really need is a savvy marketer and some connections in Ottawa to convince everyone that net neutrality isn't disappearing, it's just evolving.
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Bell Canada's Take on Net Neutrality
Comments
Re: Bell Canada's Take on Net Neutrality
by
Anonymous
on Wed 01 Feb 2006 04:37 PM EST | Permanent Link
Unlike the US, the only direction Canadian telecom pricing is going it UP. The big boys have all agreed to pricing "discipline", which like gasoline prices, means they're all going up at the same time. There'll be the occasional pricing skirmish in a neighbourhood where a new entrant wants to make a splash, but for the majority, get out more money for your everyday telecom services.
I'm surprised the share prices of TELUS and Rogers didn't go up more today given Bell's announcement that high prices are here to stay and be prepared for more. (including evenings starting at 9 pm) Oh, if only we could get US-style competition here. Re: Re: Bell Canada's Take on Net Neutrality
by
François
on Wed 01 Feb 2006 09:28 PM EST | Profile | Permanent Link
There is no competition like no competition!
FCC 2002-2006++ F. Re: Bell Canada's Take on Net Neutrality
by
len
on Wed 01 Feb 2006 05:23 PM EST | Profile | Permanent Link
interesting, I would like to be in some of the planning meetings on how much they can raise prices for broadband without some new technology taking over. e.g. Direct satellite, yes I know they control that right now, but I am sure someone is working on a alternative to wired broadband and only needs a price point to make it worthwhile. A none technology example of this concept is here in alberta with oilsands they needed $30 per barrel. Now if only we could get the CRTC to open to real competion.
Re: Re: Bell Canada's Take on Net Neutrality
by
Mark Evans
on Wed 01 Feb 2006 08:30 PM EST | Profile | Permanent Link
truth be told, rogers and bell pretty much have the broadband market wrapped up in ontario and quebec unless you go with a wireless provider such as terago or a satellite provider like barrett. terago deals more with businesses, though.
Re: Bell Canada's Take on Net Neutrality
by
Alan Gahtan (www.gahtan.com/techlawblog)
on Thu 02 Feb 2006 08:50 AM EST | Profile | Permanent Link
12 megs??? They can't even make 3 megs work for many of their customers (but are still charging full price even if the speed is fixed at a lower rate due to poor quality of their circuits or the distance between the CO to subscriber homes). I guess you'd need to be right next door to one of the central office in order to get 12 megs service.
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