Counting down to CTS2010

CTS 2010Just 10 more sleeps until the Toronto Congress Centre becomes my home again as we welcome The 2010 Canadian Telecom Summit, running from June 7-9.

This year’s event features an innovation showcase from Microsoft and our delegates won’t want to miss the Monday evening Cocktail Reception sponsored this year by Fujitsu.

It is getting busy around here. Registrations are continuing to come in at a strong pace.

Yesterday’s introduction in the House of Commons of new acts to protect privacy and electronic commerce add to the list of issues that will be on the table for discussion.

Have you registered yet?

Posturing: a preposterous proposal?

Videotron filed a strong set of comments in response to Bell’s proposal to spend a remarkable $463M in deferral account funds to provide mobile-based broadband service to about 60,000 households.

Simply put, we consider Bell’s HSPA+ broadband expansion proposal a cynical abuse of the Commission’s process and an egregious anti-competitive assault on the wireless marketplace.

Videotron compares the per household cost of Bell’s proposal costs associated with other broadband subsidy projects. Videotron calculates that Bell’s proposal amounts to $7,590 per household; our quick math in a March 2 tweet was $7,276 per home, which we described as ‘staggering’. In contrast, Industry Canada’s recent rural broadband announcement used only $76.7M to extend broadband internet access to 169,000 households – just $454 per household – less than 1/16th the per household cost of Bell’s proposal.

It is important to realize that seventeen different providers, including Videotron, were awarded a portion of the Broadband Canada funds following an open, competitive process, adjudicated by a competent, independent governmental authority.

In contrast, no other service provider was given the opportunity to propose alternative, more cost-effective means to use Bell’s deferral account funds. Bell faced no competition and had no incentive to prepare a cost-effective approach. Rather, Bell’s sole goal appears to have been to find a way to claim the largest subsidy possible.

Videotron noted that Bell’s proposal was virtually identical to the total funds available in the deferral account, leaving nothing for refunds to the urban subscribers who funded the account.

To be blunt, the alleged cost of Bell’s broadband expansion proposal is preposterous. It does not pass even the most elementary “sanity” test. It should be rejected on this basis alone.

The Videotron filing sets the stage for fireworks to erupt on Tuesday June 8 at The Canadian Telecom Summit. Videotron’s President and CEO, Robert Depatie returns that morning to deliver a keynote address, followed by CRTC Chair Konrad von Finckenstein and the annual Regulatory Blockbuster. In the afternoon, we will look at digital strategies – an opportunity to explore the question of how much of a subsidy is reasonable for Canadians to provide to those living in higher cost serving areas. The 2010 Canadian Telecom Summit is less than 2 weeks away.

Have you registered yet? Register today.

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Are systems holding you back?

An order from the CRTC yesterday caught my eye. There were two interesting issues that arise – the ability to adjust rates retroactively and the challenges of billing and customer information systems.

The situation was that Bell Aliant had planned to raise the price of its Hospital Patient Telephone Service last July 1. Due to an oversight, the changes didn’t get put into its billing system and to fix it, the costs of modifying the systems exceed the revenues that would be generated. So, Bell Aliant asked the CRTC to effectively reverse the price increase retroactively.

Yesterday’s Order was an interim rate decision; the CRTC has usually found that it cannot adjust rates retroactively, where the tariff had already received “final” approval. The CRTC will deal with the issues associated with the final ratification later – whether the rates can be adjusted retroactively; whether the old price needs to pass a price floor test, etc. While it sorts through the legal issues, the interim rate order stops the amount from continuing to accumulate.

The other interesting issue is that Bell Aliant apparently cannot easily adjust the prices on a single rate element. Does this indicate that there may be a significant capital requirement in the future to replace legacy billing systems?

We have looked at operational and billing support systems in past sessions at The Canadian Telecom Summit. This year, we look at the issues from the perspective of Customer Experience Management – leveraging systems to increase customer loyalty and service provider revenues. That session, featuring executives from Sybase, Microsoft, IBM, Redknee and CGI, will be taking place on June 7 at The 2010 Canadian Telecom Summit.

Have you registered yet? Prices increase on Monday. Register today to save $250 per person.

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Was a regulatory proceeding necessary?

The CRTC issued a ruling yesterday on the Consumer Association of Canada’s filing from last December regarding a billing error by Bell that resulted in some customers being charged $2.80 per month for touchtone service. According to the filings, Bell had already corrected the billing for the customer.

The charges began after Bell conducted a “revenue assurance” audit on its lines – trying to ensure that their billing matched the services being provided by the network. In the case of this customer, touchtone was provisioned in the network, but wasn’t being billed. The customer, a grandfathered rotary customer (prior to mandatory touch tone charges), claimed that they had never asked for touchtone.

The relief provided by the CRTC was to endorse what Bell was doing:

sending a letter to all affected customers that may have been inappropriately charged the monthly rate for Touch-Tone service. The Commission considers that Bell Canada is taking steps to rectify the inappropriate charging of the Touch-Tone service monthly rate and is satisfied with the approach proposed by Bell Canada.

The consumer group has asked for its costs to be reimbursed; the CRTC has told them to file an application in accordance with the rules.

So the question is why this needed to go to the CRTC in the first place? The lawyers know each other. Did they speak in advance to try to settle without a public proceeding? Was it a slow winter and they needed a case to keep busy?

Each year, the regulatory chiefs get together to debate issues at The 2010 Canadian Telecom Summit, taking place June 7-9. The Regulatory Blockbuster, on Tuesday June 8, has become a highlight of the event – with representatives from Bell, TELUS, Rogers, Allstream, Globalive and PIAC.

Have you registered yet? Prices increase on Monday. Register today to save $250 per person.

Download the complete conference brochure.

Less than 3 weeks left

The Canadian Telecom SummitLess than three weeks until the opening of The 2010 Canadian Telecom Summit in Toronto. Registrations are continuing to move along at a stronger pace than last year – this is the last week before prices increase next Monday. Register now to save $250.

From the opening keynote by Canada’s Industry Minister, Tony Clement, this is the event that brings together all stakeholders interested in the development of Canada’s communications and information technology sectors.

For 3 full days, The 2010 Canadian Telecom Summit offers facilitates high energy interactions, discussions, networking, negotiations and schmoozing like no other event.

The 2010 Canadian Telecom Summit takes place June 7-9. Have you registered yet?

Download the complete conference brochure.

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