In a joint Broadcast and Telecom Decision, The CRTC rejected an application by Maskatel and Telephone Drummond that asked the CRTC to discipline Cogeco for offering services at too low a price.

They argued that Cogeco’s pricing initiatives, targeting customers in Saint-Hyacinthe and Drummondville, were unjust.

But, the CRTC was not about to issue a decision ordering Cogeco to raise consumer prices.

The Commission found that there may indeed be discrimination, but it is not unjust – rather, it is a normal competitive market response.

The Commission remains of the view that, as noted in several previous decisions, competition among distributors, along with end-user choice for consumers, can contribute to the achievement of a number of the objectives of the Broadcasting Act. Among other things, competition can contribute to the affordability of service by encouraging distributors to reduce subscription rates for end-users in their attempts to obtain subscribers.

Competition is working. Prices are coming down. Hopefully, industry participants can get used to that.

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CRTC, Cogeco, Maskatel, Telephone Drummond

With all of the attention on the CRTC’s broadcast decision last Thursday afternoon, you may have missed a Telecom Order that was also released that day which gives many customers of Bell and Bell Aliant a rate reduction.

The issue is that the companies have been charging too much, which resulted in a $16.3M recurring surplus for residential customers that are in non-high cost serving areas.

Bell had proposed to refund $1.3M to those in non-forborne areas and keep the amount attributable to the forborne areas.

Bells argument was that

if they were directed to implement the required rate reductions in non-HCSAs … they could, under the current regulatory environment, simply offset them by implementing corresponding rate increases to these services.

The CRTC wasn’t happy with this $15M annual windfall to Bell and so it has ordered Bell to reduce the price ceilings for those in competitive markets.

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Rogers has come out with new branding for its discount brand, retaining the dog imagery, but putting the focus on Fido’s home. Together with the new graphics, the new Fido branding will carry taglines: ‘giving low prices a good home’ and ‘les bons prix font les bons amis’ in French.

Together with the new brand, the new Fido launched a suite of new price plans and an ‘owner’s guarantee’: providing customers with services to control their monthly wireless bills and no surprises. These include low prices, usage alerts (at 75% and 100% of their monthly allotments), easy switching between price plans, and the option to have no term contract.

Customers can choose from a suite of Fido’s new ‘all-in’ price plans, starting from $15 per month, including plans with unlimited text messages that start at $25 per month. And yes, ‘all-in’ really means that it includes system access fees, 911 fees and all that jazz.

The old Fido was urban-centric with a younger demographic. That market is seen as heavily penetrated. The new Fido is looking to increase Canada’s wireless penetration – what Rogers is referring to as the future demographic – with entry level price points that are attractive to people who have never had a cell phone before.

Fido’s new approach seems to also sets its sights on Rogers’ pre-paid competitors, including Virgin and PC brands that use the Bell network. Not a bad strategy since Rogers has the lowest percentage of prepaid customers of the 3 big wireless carriers in Canada.

We suspect that phones with entry level plans, such as those offered by the new Fido, are going to make their way onto a lot of holiday shopping lists.

CRTC Chair Konrad von Finckenstein delivered an address on Monday to the annual convention of the Canadian Association of Broadcasters (CAB).

Populist drivel found in the comments section of various news media websites points to the irrelevance of regulators; how they just don’t understand the new era of an internet-enabled world. Such views are flawed and overly simplistic.

The address from the Chair made note of the impact of new media and the CRTC’s upcoming new media hearings:

New Media puts the users in control. They can watch what they want, when they want––in whatever form is most convenient. New Media offers exciting new ways of delivering news, information, entertainment, drama, music––and advertising.

These are innovations of great potential. They also carry major implications for the broadcasting industry that we will have to examine.

New Media operates outside the regulated routes of access to the communications system, so it is free of regulatory requirements, restrictions and licensing. Yet it unquestionably delivers broadcasting content. We will be addressing the role of New Media in the Canadian broadcasting universe during our public hearing in February.

The address contains insights into the philosophy and 3 principles that guided the CRTC in approaching its recent major policy framework reviews: simplification, coherence and calibration.

These principles can be expected to be applied in upcoming proceedings as well.

As if to launch the Christmas sales season, Bell Mobility has launched new rate plans that let users roll-over unused minutes from one month to the next.

Canadians have been watching ads from US carriers that offer such plans and Bell is the first major service provider to bring a variant of this offer to Canada. Bell will let you carry over unused local airtime voice minutes for one additional month, not indefinitely.

According to Bell Mobility President Wade Oosterman:

With Rollover Minutes, you no longer have to use ’em or lose ’em. If you undertalk one month, you can overtalk the next.

The plans are available until December 31 to Bell Mobility clients who sign a three-year contract. Customers can choose between rate plans that are broken into three categories: Rollover Minutes, Rollover Minutes & Email, and Rollover Minutes, Email & Internet.

Last year, the popular offer from most service providers was unlimited email and web browsing. What is in Santa’s bag for Christmas 2008?

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