As was anticipated in a number of reports, Nortel announced further restructuring and job cuts yesterday.

An article in the weekend Globe and Mail questioned the wisdom of pre-announcing the intent to sell one its top performing divisions, the Metro Ethernet Networks group. Yesterday’s results confirmed that 3rd quarter sales have slipped and at least some of that has to be attributed to customer uncertainty about where the division is heading.

Earlier this fall, some had speculated that Huawei is among the most likely suitors.

A challenge for Huawei in operating in North America is the need to establish a domestic supply chain. Huawei is able to send products produced in China into Canada or the United States. However, US export controls puts some restrictions on shipping high tech items back to China.

This adds a bit of a wrinkle into normal vendor “return and repair” of equipment that needs maintenance. How will Huawei work through the challenges as it ramps up its operations in Canada?

What impact might this have on Huawei’s ability to acquire parts of Nortel? To what extent do parts of Nortel provide Huawei with a strategic solution, helping to accelerate its western growth.

Who else might come to the auction for Nortel’s best assets?

The Washington / London based law firm of Arnold & Porter has just released a paper [ pdf] that discusses recent developments in net neutrality in the United States. The piece is a chapter in an upcoming book: Telecommunications Laws and Regulations 2009.

The piece is an excellent review of the Comcast case in front of the FCC, presented with a history and a review of the jurisdictional questions.

According to the paper, the issue isn’t whether ISPs can manage their internet traffic. It cites a Federal Trade Commission, (the US federal regulatory agency with jurisdiction to enforce antitrust and consumer protection laws) report that said:

the use of bandwidth intensive applications like certain peer-to-peer file-sharing protocols by even a small minority of users is already consuming too many network resources as to be worrisome … [and] even a small portion of Internet users may effectively degrade service for the majority of end users.

Rather, the issue is whether those ISPs should be free to address this problem without government involvement to guard against improper limits on public access to the Internet content.

The advice to ISPs in the interim is to provide consumers with relevant information about limits on their use of their service, but it is unclear how much detail must be provided; and, to apply network management techniques that are “narrowly tailored” to meet the harms they are designed to address.

The Comcast case is far from over. As was noted in the Arnold & Porter paper, “the lack of a factual basis for the conclusion that Comcast was acting discriminatorily may prove problematic for the Commission.”

It would be nice to see a similar review of net neutrality in Canada. References, anyone?

Technorati Tags:
net neutrality, Arnold & Porter

Through the weekend, Diane Francis wrote in the National Post about the intent of President-elect Barack Obama to create an office for the Chief Technology Officer of the United States.

The plan is to deal with centralizing the support of technology of all kinds: environmental, scientific, engineering, medical and more, including an objective of doubling the number of engineering graduates from 60,000 a year within half a generation.

Although her article suggests naming Stanford academic Lawrence Lessig, other articles [such as e-Week here and CNET here] have touted a list of people with strong business credentials along with some names with background in moving Washington machinery.

It makes you wonder whether such a position should be considered here on either a national or provincial level or both.

Consider the diversity of departments in Ontario that have an economic development mandate. Why was the latest round of broadband subsidy operated under the Ministry of Agriculture, Food and Rural Affairs (OMAFRA), instead of Economic Development or Northern Development & Mines – any of which could have an equal claim of responsibility and may have more institutional experience in communications technology. Citizens shouldn’t be left to wonder if much more than a coin toss was used to determine where responsibility for a program fits.

In the CNET article, James Lewis, senior fellow at the Center for Strategic and International Studies, was cautious about filling the CTO position.

We’ve seen lots of times where people have brought in gurus from the high-tech community, and they give up after a year because they’re frustrated. Knowing how the government works is important.

Even so, CNET quotes Lewis saying that implementing technology policy cannot be left to policy wonks from Washington without industry advice.

How would a CTO in Obama’s cabinet affect Canadian technology policy?

Under our system of appointing ministers, an office of the CTO isn’t likely to enjoy a seat at the cabinet table. Still, who would be your choice as the top technology leader and advisor in Canada? And what should be their first priorities?

Technorati Tags:
CTO, Barack Obama

How would you safeguard consumer telephone service quality in markets that don’t have competitive choice?

In areas that are now forborne, the CRTC has already determined that there is a sufficient level of competition to discipline prices and so it is presumed that service quality can also be disciplined by market forces. If you don’t like the quality, you have the choice of other service providers.

But what do we do with the other places? That is a question that the CRTC is grappling with.

Up until yesterday, phone companies tracked 17 different quality metrics and had to report on action plans when they achieved failing grades on any for 3 consecutive months. In addition, there was a plan that rebated money to customers using a formula if there was a particularly bad year for service performance.

The rebates have never amounted to anything that could satiate a customer that suffered from extremely poor service. Between 2002 and 2005 rebates ranged from $0.19 to $2.73 per subscriber per year and there was no requirement to rebate in 2006 and 2007. Rebates were paid to all subscribers, not just those who suffered poor service quality.

Add to that the consideration that there is an ever shrinking number of places deemed ‘non-forborne’, and so fewer customers are impacted by a relatively onerous (ie. costly) reporting regime. As such, the Commission determined that the current reporting requirements are not “efficient and proportionate to their purpose,” nor “minimally intrusive and as minimally onerous as possible,” which are factors required by the Policy Directive. So, the CRTC has trimmed the 17 indictors to just 3:

Bell Aliant, Bell Canada, MTS Allstream, NorthernTel, Northwestel, SaskTel, TBayTel, Télébec, and TCC to continue reporting on a quarterly basis the results for the following indicators: (a) 1.2 – Installation appointments met; (b) 2.1 – Out-of-service trouble reports cleared within 24 hours; and (c) 2.2 – Repair appointments met.

The CRTC has launched a follow-up mini-proceeding to look at whether there are other key indicators to be tracked or if the Commission should rely on a complaint-based regime.

Public comment is due in January with a final decision by May.

Technorati Tags:
CRTC, service quality

First it was TELUS Koodo.

Then came Rogers’ rebranded Fido.

Now, Bell’s Solo brand is offering plans with no add-on fees (such as system access fees or 9-1-1 charges).

Available starting tomorrow until December 31, four new Unbeatable plans now offer clients rates starting at $15 per month for both local calling and text messaging. Clients on Unbeatable plans can pay just $5 a month to share minutes and get unlimited local and Canada-wide long distance calling as well as unlimited texting with up to four family and friends on the same account. Higher-end plans also include unlimited incoming calls.

Unlike Koodo, Solo is offering some higher end smart phones such as the Samsung CLEO and the BlackBerry Pearl 8130.

We’re seeing signs of the Christmas specials from the discount labels.

What will the seasonal offers look like from the core brands?

Technorati Tags:
Bell, Solo