Look out for Look

There is a serious billing dispute in front of the CRTC right now, the likes of which some of us haven’t seen in more than a decade.

Look Communications has asked the CRTC to help stave off a disconnection by Bell Canada for non-payment of approximately $13M. The original disconnection notice was scheduled to take effect today (May 10).

The CRTC agreed to an expedited review process and final arguments were to have been submitted on Tuesday of this week.

It is somewhat voyeuristic to read through the materials filed by the two companies. Look provided transcripts of voice messages and emails from Bell personnel that acknowledge amounts that are in dispute. Bell’s response says that the disputed amounts are trivial compared to the massive outstanding balance.

While Look claimed that Bell was conferring an undue preference (contrary to Section 27(2) of the Telecom Act) by threatening disconnection, Bell replied

Contrary to Look’s contentions in this proceeding, it is not the suspension or termination of service to this customer that would be contrary to section 27(2) of the Act but potentially, instead, the continued delivery of services to Look on the terms set out by this Customer.

We’ll be looking for a determination on this file in the next few days. Watch this article for an update.

Docsis 3.0 at the cable show – so what?

US cable executives have proudly unveiled DOCSIS 3.0 at The Cable Show in Las Vegas, demonstrating channel bonding to deliver up to 150 Mbps internet.

I can barely conceal my yawn.

Did they miss the news in Canada last January when Cisco and Videotron launched the same technology? At the time, Videotron indicated that they could achieve up to 320 Mbps.

Videotron will be participating in The 2007 Canadian Telecom Summit next month with a keynote address from CEO Robert Depatie and participation by SVP Manon Brouillette on the Consumer Services panel. Robert will also be speaking about Videotron’s mobile services intentions in our panel discussion looking at Wireless Competition.

How do you use technology?

The Associated Press carried a story about a survey on the use of technology conducted by Pew Internet / American Life Project. The study was designed to classify Americans into different groups of technology users.

In order to classify users, the group examined people’s relationship to information and communications technology. According to the report’s author, the results identified a wide variety of Web 2.0 users and non-users.

At one end of the spectrum, the survey

identifies the heaviest consumers, most active users, and happiest denizens of the information society. It also locates those who find great satisfaction in the use of ICT even though they have fewer network resources. In the middle range, the typology highlights some users who have invested a lot in services and hardware, but feel uncomfortable with the extra connectivity. And at the other end of the spectrum, it identifies those who get along – many of them just fine – with a relative scarcity of information goods and services.

Key findings of the study:

  • 8% of Americans are deep users of the participatory Web and mobile applications
  • Another 23% are heavy, pragmatic tech adopters – they use gadgets to keep up with social networks or be productive at work
  • 10% rely on mobile devices for voice, texting, or entertainment
  • 10% use information gadgets, but find it a hassle
  • 49% of Americans only occasionally use modern gadgetry and many others bristle at electronic connectivity

There is an online quiz to help you discover what kind of technology user you are.

Do you cringe when your cell phone rings? Do you suffer from withdrawal when you can’t check your Blackberry? Do you rush to post your vacation video to your Web site?

I took the quiz and I ranked at the high end as an Omnivore. Not surprising.

What are your results?

As service providers and policy makers, is important to understand that most consumers aren’t the same – and generally aren’t like people who work in the industry. The study found nearly 60% of Americans fit into categories called Connected but Hassled (10%), Inexperienced Experimenters (8%), Light But Satisfied (15%), Indifferents (11%), Off the Network (15%).

How does the industry attract these users?

Looking back at the Economist e-readiness rankings, are there policy initiatives that can help migrate folks toward the more technophilic classes of Productivity Enhancers and Connectors?

What is good for the goose…

On April 4, when Industry Minister Maxime Bernier discarded the prohibition on winback activities by the phone companies, it created an asymmetry in rules governing incumbent cable companies.

Rogers applied for the CRTC to review these restrictions on April 5 – one day after the Minister removed similar restrictions from the telcos). The CRTC says that Rogers expressed its firm belief that it is time for the regulatory framework to embrace competitive activity from cable distributors as something to be encouraged, not prohibited.

The major cable companies are currently subject to restrictions on their winback activities. In dealings with customers who live in multi-unit dwellings, for 90 days, the cablecos must refrain from:

  • directly contacting customers who, through an agent, have notified their cable company of their intention to cancel basic cable service; and
  • offering discounts or other inducements not generally offered to the public, in instances when customers personally initiate contact with the cable company for the purpose of cancelling basic cable service.

Today, the CRTC issued a public notice to call for comments on whether it is time to provide relief to the cable companies.

Views on this? Comments are due to the CRTC by June 6.

Two leading indicators from Alberta

CanadaStatistics Canada released some interesting numbers last week on cellular adoption (two thirds of homes have access to at least one mobile phone) and cable or VoIP service (more than 10%).

I found it interesting that in both cases, Alberta leads all other provinces – 80% of Alberta households have cellular phones and, at 13% penetration, Albertans are 30% more likely to be using a VoIP or cable phone service. Contrast these numbers with Quebec and New Brunswick around 57.5% cellular adoption, or Newfoundland and Labrador with fewer than 5% using VoIP or cable telephony. Quebec may lag in cellular, but it is close to Alberta in VoIP and cable telephony.

Proportion of households by type of phone service, December 2006

Land-line Cell phone Cable telephone/VoiP
Canada 90.5 66.8 10.6
Newfoundland and Labrador 95.0 61.8 4.9
Prince Edward Island 92.6 64.7 5.9
Nova Scotia 93.2 63.6 10.8
New Brunswick 94.5 57.5 5.4
Quebec 86.4 57.9 13.2
Ontario 92.5 70.1 9.6
Manitoba 90.7 62.4 11.5
Saskatchewan 95.5 67.9 6.4
Alberta 88.2 80.1 13.5
British Columbia 91.2 68.6 8.7

Why? What are the factors that influence Alberta leading in both categories, and so far in the lead in cellular adoption per household?

Are these statistics tied to provincial government policy initiatives, such as the Alberta Supernet, stimulating the population to examine alternate technology solutions? Are they tied to Albertan’s income profile or booming oilfields? Are they a reflection of the particular demographic profile that has been turbo charging the Alberta economy.

Home relocations – moving – is an opportunity for people to re-examine their choice of communications services providers. Moving represents a discontinuity in the inertia for people’s relationships with their status quo.

How can service providers improve their share of these customers?

The Statistics Canada report shows that people cutting the cord completely and migrating strictly to cell phone use is growing, but at a slower pace: about 5.0% of households reported having only a cell phone in December 2006, compared to 4.8% in December 2005. In 2004, only 2.4% of Canadians had cell phones only. What caused the slowdown?

How many cell phone users are using VoIP as a backup or for more affordable long distance? Interesting information to be mined.

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