Mid-term report

As we approach the Canada Day holiday weekend, it is an appropriate time to pause for a mid-term report on the top posts so far this year.

These are the blog posts that attracted the greatest viewership so far.

The most viewed post in the first half of the year was from late 2022. Most of the top viewed articles in the mid-term report are from March or earlier; only one is from the past 5 weeks.

Which subjects are of the greatest interest to you? Which articles have you forwarded to a friend or colleague?

CRTC budgeting

The CRTC has a problem with budgeting.

Last year, I wrote about the CRTC’s 25% increase in the fees charged to telecom service providers. It turns out that it didn’t really need most that extra money after all. In its 2023 Telecommunications Fees Order, the CRTC said that it had a surplus of more than $7 million left over from last year’s fees.

That surplus is getting applied against the budget requirements for the current year (1 April 2023 to 31 March 2024), just a hair under $54 million.

The CRTC characterized the requirement for fees as “This estimated net billing represents a decrease of 1.37% compared to the amount for the 2022‑2023 fiscal year ($47.520 million).”

On a first glance, you might have read the CRTC’s short announcement and thought this is unusually frugal budgeting by a government agency. After all, it is a net billing decrease of 1.37%.

But, let’s look at what is really going on here.

A year ago, the CRTC said it needed $48M to cover “its estimated total telecommunications regulatory costs”. It had a surplus of $7.127M, meaning it really only spent $41M. It is now forecasting a requirement of $53.997M, an increase of $13M over last year’s amount, an increase of more than 30%.

Two important take aways from this announcement: the CRTC is forecasing a substantial (30%) increase in its costs this year; and, the CRTC has again demonstrated what I have termed budgetary myopia. The only reason fees aren’t going up again this year is that the service providers already pre-paid a big chunk last year.

Trusted sources for telecom data

Where can you find trusted sources for telecom data?

I have written extensively about bad data sources such as Rewheel or Cable.co.uk. It is hard to do meaningful international price comparisons, given wide variations in quality and underlying costs. But where can Canadians go when looking for trusted sources for telecom data?

I tend to be a fan of government data. I did my graduate work in mathematical statistics at a time when Statistics Canada was one of the world’s most respected statistics agencies. It remains the most reliable source of Canadian telecom data in my books.

Statistics Canada maintains a telecommunications information portal, “Telecommunications: Connecting Canadians”, as a subset of its “Digital economy and society statistics” portal. There are also communications industry sub-indices produced each month as part of the Consumer Price Index.

The Digital economy portal has breakouts for:

There is a lot of other information available through that portal, including the Canadian Internet Use Survey.

The Statistics Canada telecom portal also has links to the CRTC’s Communications Market Reports, which are regularly updated with financial and performance information. The CRTC’s portal generally has more current information than it publishes annually. The Commission’s 2021 annual summary was published last week, eighteen months after the end of the year represented in the report. According to the CRTC, “With its investment in new technologies, and its new streamlined data collection and validation processes now in place, the CRTC has the tools to release data not only in a timelier fashion, but also in a more transparent and accessible way. The timing of the releases of the future iterations of the Annual Highlights will benefit from these improvements.”

The CRTC’s Communications Market Reports site is also a portal, with data summaries on various sectors and access to raw data in spreadsheet form. The CRTC portal also offers a number of tableaus (such as the one below), produced in conjunction with Statistics Canada, that can be configured dynamically by the viewer.

So where do I go for reliable facts and statistics? I start with government agencies, especially data produced by Statistics Canada.

Making broadband customers happy

What is the secret to making broadband customers happy?

Canadians love to bash our telecom companies. There is an organization, the Commission for Complaints for Telecom-television Services (CCTS), that deals with certain classes of problems. The semi-annual reports from the Commissioner provides statistics about the complaints received. The CRTC conducts “secret shopper” studies, looking for examples of “misleading or aggressive sales practices”.

It used to be that only the post office was a more despised institution, but who sends letters today? That leaves banks, airlines and the CBC as the competition for a title no one wants. Canadians love to hate our telecom service providers.

But, is anyone in Canada studying factors that contribute to actually making broadband customers happy?

There was a recent report, published by Roger Entner’s Recon Analytics, that looked at “The happiest and unhappiest broadband customers in the United States”.

One of the key questions around the happiest and unhappiest home internet counties is where they are and what the driver is behind the happiness and unhappiness. Every week, we ask our respondents a battery of questions around how satisfied they are with the service they receive. After surveying more than three hundred and thirty thousand respondents later, we have respondents from 2,368 counties out of 3,142 in the United States telling us are telling us where the happiest and unhappiest broadband customers in the United States and allows us to determine the root cause behind their experience.

Recon’s analysis of the data challenges some of the “commonly accepted truths”, such as whether technology influences happiness, or whether number of competitors is a factor. In four of the ten unhappiest counties examined, member-owned cooperatives were active.

What about making broadband customers happy? Recon Analytics found that nine out of the ten happiest counties were rural. In six of the ten happiest counties, coops are active, but not in the happiest broadband county. Is the mere presence of coops driving better service? The feedback from customers in such counties ranges from “terrific to terrible.”

The data found that Fiber or Cable coverage is also not playing a determining role.

At the end of the day, Recon found that the most important factor driving customer satisfaction was the individual performance of a provider in any given county.

Almost all the providers displayed uneven performance. The same provider that performed very well in some counties performed poorly in others. Cable providers like Comcast and Charter performed very well in some counties. Comcast’s exceptionally good performance made Mercer County, WV the happiest broadband county. Equally, its poor performance in Barnstable County, MA and Whatcom County, WA made them the second and third unhappiest broadband counties. Only AT&T Fiber performed consistently well in the ten happiest counties and was not present in the unhappiest.

Each of the providers was able to deliver service that made customers happy. And apparently, these same providers could make their customers unhappy.

Considering that the nationwide providers engage in nationwide standard pricing, the satisfaction score differences are not driven by low price, but by actual performance. Technology helps, but the key is local execution. Providers could improve their performance in markets by internally benchmarking their performance and extending best practices throughout the entire organization.

Over the past 5 years, we have had to deal with a number of hospitals in the Toronto area. There have been clear differences in our levels of “customer satisfaction”. Fortunately, living here in Canada, it has nothing to do with pricing. It has nothing to do with outcomes or the quality of healthcare provided. But, there are clear differences in the way staff interact with patients and their families. Let’s phrase it as the way the health services providers deal with their customers. In two of the hospitals, there has been palpable caring and empathy exhibited toward us from virtually every staff member. We feel it from the parking garage attendants selling long term passes, from the information desk clerks, in addition to what we experience from the medical care teams. In one of the other hospitals, patients and the public are made to feel like we are getting in the way. As though the staff are upset that patients interfere with what would otherwise be a great place to work.

How do executives instill a culture that encourages caring and empathy? Regardless of the business, whether running a hospital or a division of a phone company, how do your workers approach customer service? How do all of your employees (even those who aren’t in customer facing jobs) represent the company in a positive way within their communities? In a remote work environment, how do you establish such a corporate culture?

It seems it isn’t the technology that makes the difference in making broadband customers happy. I think it comes down to people and the culture engendered in the workplace.

Understanding rural broadband investment

Is enough work being done to understand and quantify the impact of rural broadband investment in Canada?

There were a couple of interesting studies published in recent issues of Telecom Policy. In the May edition, I read “Evaluating the impact of broadband access and internet use in a small underserved rural community” [pdf, 4.1MB], looking at the impact of broadband in an under-served community in north-western Missouri.

The Missouri research had two primary findings:

  1. changes in using the internet for employment, education, and health could not be directly attributed to the internet intervention, and
  2. the internet intervention was associated with benefits stemming from the ability to use multiple devices at once.

The Missouri study is especially interesting because it examined improving service in underserved rather than unserved communities.

The other paper is from the July, 2023 issue: “Economic growth and broadband access: The European urban-rural digital divide” [pdf, 2.1MB]. Conclusions from the European study found the benefits aren’t limited to densely populated urban areas. It found economic growth across all regions, highlighting a need for rural broadband investment to close the urban-rural digital divide. “These results potentially indicate the presence of infant rural industries and technologies which rely on high-speed and high-quality broadband infrastructure to sustainably mature, aligning with the emergence of innovations in smart farming technologies and reassuring its importance in the future.” Not surprisingly, the European study observed private investments focus on providing faster connection rates in urban areas, supporting the use of public-private initiatives for rural broadband.

We know that there are broader benefits of broadband adoption, as I discussed in a blog post a couple weeks ago.

I started the year with a post looking at a policy agenda for the year ahead.

Over the summer, I’d like to put together a research agenda for telecom focused academic studies in Canada. What would you want to see on that list?

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