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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: CRTC-VOIP: Silly Rule
by Anonymous
Mark - I think you are spot on. The CRTC does not seem to have a clue here. And as for the cable companies, of course they are sayign that they won't sell below cost because they want to maintain their winning end of the CRTC decision. As I understand it the cost of terminating a phone call in Canada is zero. You only have to pay for the access technology, the long distance transport, and whatever fees are required to have a license and get phone numbers from some database (gov't controlled?) PacketCable is VoIP ready, so all cable modem infrastructure is pretty much going to support VoIP for next to nothing. So other than cost of customer acquisition, what are the costs? Well, look at skypeIn as an example. 30 Euros per YEAR is the cost for them to take PSTN calls and route them to a skype user. That includes the phoen number. I bet the cost to support a voice customer in Canada (over cable modem) is cheaper than CAD $50/yr. This considers no LD charges, but even those are peanuts since the cable guys will share their networks with each other and skip the PSTN for the LD and terminate in the destination city. So unless the cable guys are selling VoIP for less than $5/month I doubt they are losing money (depending on how you account for costs)
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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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