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Mark Evans

the blog - examines the world of telecom  and  technology  from  a distinctly Canadian perspective.

the person - lives in Toronto, CA with  his  wife  and  three children, and  works  as director of community with PlanetEye Inc.
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Re: Deep Thoughts About VoIP's Future in Canada
by Anonymous
You keep dreaming about this supposed price war. Just like there's a price war in cellular phones, a price war so incredibly vicious that getting voicemail costs extra, getting caller id costs extra, until you're paying $90/month for a phone you barely use? Newsflash: these companies operate as a cartel. They will not compete against each other. They will take action to prevent new entrants from joining the fray, by cross-subsidizing their services to run newcomers out of business. Competition does not magically appear when there are at most 3-4 companies competing for your business. If there were a dozen competitors, probably one of them would break free of the cartel. But most people in Canada have one (1) phone company and one (1) cable company. Please understand that "deregulation" does not mean "the government will cease making phone companies charge such high prices, allowing prices to fall". What it mainly means is that "the government will stop forcing the incumbent phone companies to share their taxpayer-funded infrastructure with any other companies, driving those companies out of business since they would have to create a whole parallel telephone infrastructure and that isn't going to happen". What's going to happen is that compating VOIP services won't be allow to tie-in to the local phone network. So you'll be able to get all the VOIP you want, but you won't be able to call anyone with a traditional landline because Bell Canada charges $893,000,000 for competing VOIP companies to connect to "their" taxpayer-funded network. Bell Canada will have the only VOIP service that can interconnect with the traditional phone network. Basically, all you need to know is this: Bell has been pushing for this deregulation. That tells you all you need to know about whether it will be good for competition (=bad for Bell's profits) or whether it will be bad for competition, and good for Bell's profits.
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My blog has moved. Check out the new Mark Evans. It's part of my mini-blog empire that also includes All About Nortel and Twitterrati. You can subscribe to Mark Evans Tech by clicking on the RSS symbol above.
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