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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Telecom consumers’ bill of rights

Last summer, the CRTC issued a decision establishing a code of consumer rights, affecting the major incumbent telecom companies.

At that time, the press release from the CRTC said that these rights include:

the right to a local telephone service, the right to choose a phone company, the right to confidentiality, and the right to register a dispute or complaint.

Last week, the CRTC confirmed that these same rights apply in the territories of Northwestel and the smaller ILECs as well.

The complete list of rights, each described in more detail in the notice, includes:

  • Your right to local telephone service
  • Your right to choose a phone company
  • Your rights regarding deposits for service
  • Your rights when the phone company wants to cut off your phone service
  • Your rights when you want to discontinue your phone service
  • Your right to block outgoing long distance and 900 and 976 calls
  • Your additional rights if you are a person with a disability
  • Your right to keep your information confidential
  • Your rights regarding unsolicited telephone calls
  • Your right to protect your privacy when calling or being called
  • Your right to control access to your home
  • Your rights regarding the wiring and equipment inside your home
  • Your right to refunds
  • Your right to detailed monthly billing information
  • Your right to register a dispute or complaint
  • Your right to participate in CRTC proceedings

It remains to be seen how these rights will be policed and managed across multiple industry participants in a competitive environment.

How long will it take to create the C-5: Canadian Communications Consumer Complaints Commission that was announced last month?

Last Friday, PIAC filed a request with the CRTC asking for a public consultation process in the establishment of the agency. Will the PIAC letter act as a stimulus to start the process, or further delay its implementation pending a consultation and follow-up hearing as called for in the PIAC proposal.

Let’s get started!

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