When asked whether Toronto Hydro's plans to launch a Wi-Fi network in Toronto will lead to direct competition with cellular and broadband rivals, Toronto Hydro Telecom CEO Dave Dobbin said - with a big smile on his face - "Isn't it great?". Well, you know what? I think he's right. I think the idea of an alternative broadband service provider is a great idea if it means breaking up the un-competitive landscape that currently exists. In most major markets, consumers only have two choice for broadband service - and the war for their attention isn't being fought on price. In fact, prices have been steadily climbing. Maybe Toronto Hydro will become what Inukshuk was supposed to be - at least in Toronto - before Inukshuk was absorbed last year by Rogers and Bell. Inukshuk, for the uninitiated, was going to launch a broadband service across the country using Wi-Max. Unfortunately, it disappeared just as it seemed things were going to get interesting. Toronto Hydro, one the other hand, has staying power. Let's hope it doesn't lose its rebellious streak.

Where to begin, where to begin with Canadian telecom news....First, BCE is creating a super regional telephone business by combining Bell Nordiq, its new rural income-trust in Ontario and Quebec and Aliant Inc.'s wireline business. The question is whether it's just more financial re-engineering by BCE Inc. and/or a shuffling of the deck chairs on the Titanic. The transaction, which will create a business with 3.4 million phones lines, still doesn't change the fact Bell Canada is losing hundreds of thousands of local phone customers a year as the cablecos move into the market. Unless BCE wants to become a super income-trust, bolder strategic moves must be made.
Meanwhile, Vonage Canada has filed a complaint with the CRTC over Shaw Communications $10/month "VoIP tax". Shaw prefers to call it a QoS fee that ensure non-Shaw telephone services such as Vonage will work well. Vonage contends this is a net neutrality issue because Shaw is clearly looking at the traffic on its network and identifying voice packets that aren't it own. This $10 issue popped up last June when Primus Canada complained about it.
Finally, Toronto Hydro unveiled the details of its city-wide Wi-Fi plan. The initial plan is rolling out a six square mile hot zone in downtown Toronto that will encompass the financial services, university, tourism and entertainment communities. In three years, Toronto Hydro will extend it across the entire city. The utility, owned by the city of Toronto, said its network will deliver speeds as fast as 54MBps. While there is controversy about a public sector entity competing against the private sector, this Wi-Fi network could be the consumer-friendly broadband alternative the market has been demanding. If anything, it's going to force Bell, Telus and Rogers to examine their Wi-Fi service and pricing strategies if they want to remain competition. What could be really interesting is whether Toronto Hydro can make inroads in the lucrative residential broadband business. If that happens, it could spark a price war as the incumbents battle to maintain market share.
Tags: BCE, Aliant, Vonage, CRTC, Toronto Hydro, Wi-Fi