Michael Geist writes that the Liberals are supporting British style functional separation for Canadian telecom carriers, based on a rapid-fire on-line exchange between Open Media’s Steve Anderson and Marc Garneau this past Monday {see 2:11 on chat}:
Anderson: In Canada, we have a few companies that dominate both the business of providing access to the customer via the last mile of the Internet (wholesale), as well as the business of providing access to the wires that connect the customers to the backbone of the Internet (retail). It is this domination of both wholesale and retail markets that experts say is at least partially responsible for the high costs of Internet access in Canada, as well as the lack of choice and competition in the market. The UK and other countries have dealt with this situation by separating the two businesses in what is called “functional separation.” This appears to have lowed prices and created more choice and competition. What is the Liberals position on functional separation? Would a Liberal government adopt this approach?
Garneau: Steve, we are supportive of that concept. The UK is doing interesting stuff and we need to look at that carefully.
Anderson: Is that a yes?
Garneau: Yes.
Of course, functional separation has never been imposed in a country that has platform competition and it is unclear how it would be implemented or whether it makes any sense in Canada. The telephone companies are not the incumbent service providers for broadband. Cable based services were first. In virtually every geographic market, the phone companies aren’t even the market leader. So, which company would it apply to?
So, how would functional separation work? More fundamentally, how would functional separation stimulate further investment?
As a telecommunications lawyer, I welcome functional separation. It will keep me and my colleagues in the lifestyle we aspire to.
One of the more interesting experiments of the past thirty years was structural separation in the U.S. between long distance and local telephony. Very painful, as all commentators admitted, but necessary so that the U.S. could have competition in the long distance market. And see, it worked, they said.
Meanwhile, in Canada we rejected structural separation. Nevertheless, it turns out that we achieved a very competitive long distance market too — and saved a lot of extra costs along the way.
Unfortunately, Canadian lawyers did not become anywhere as rich as U.S. lawyers
George
Pingback: Functional separation • Telecom Trends | Telecom Operator News
Pingback: Functional separation • Telecom Trends | Telecom Carriers
Pingback: Functional separation • Telecom Trends | Telecom Carriers
Pingback: Functional separation • Telecom Trends | Telecom Operator News
truthfully telecom in Canada has become to costly and ran by alot of so called professional. Everyday I recieve call and emails to my office asking for my companies help in assisting them with a solution of a price find. Yeah we do that to.
If you were not truly a doctor would you be allowed ot operate on patients or prescribe medicine no way nota chance. But daily i get calls from clients saying so and so company told me this. Which turned out to be wrong.
For example I spoke with one telecommunications engineer with a major company here in Canada last week. I got talking with him and do you know that just last year he was teaching high school grade 11 and got the job he is in now as something to do after retirement. Because of his teaching background and because he wrote reports well he was given the title of engineer. They bill this guy out at $125 per hour he admitted to me that he only maybe has made no more than a couple hundred terminations in his short career. Yes so true, This person is running and managing projects ranging is the thousands of dollars to hundreds of thousands.
When will we folks realize that this profession is a technical one and stop treating it as I will work for cheap so you got the job or you look like a project manager so here you go your company ID your now our senior project manager. Go out and make us money.
Everyday I fix the problems of other companies someone said to me do you ever want to run them out of business no for one reason they are great for my business. I make money of there messups. You know customers are amazed I charge less and always there issue are fixed and or I find the solution they are seeking found.
In the email address you know who my company is it is no other than RAB Telecom Canada wewere built and thrive on what others do wrong. Oh yes we do not charge unlike other companies for an initial phone consultation. That would be tacky we only charge when we resolve your issue or sell you one of our amazing installation solutions. Then most times we offer you the consumer a discount because you likely desrve it seeing as how alot of other providers in this field shafted you royally before.. Thanks and cheers..