Backdoor to forbearance?

CRTCLast week’s Price Cap decision has a few elements that create a lot of flexibility for ILECs in areas that aren’t fully competitive.

Optional services have been designated as uncapped – those are features like call waiting, voice mail, calling line ID, etc.

Couple that with the CRTC allowing an unprecedented flexibility in price de-averaging, down to the individual subscriber, and you need to ask what is left to be forborne?

The Commission retains the ability on a case-by-case basis, to determine whether the particular pricing strategies of the ILEC lead to discrimination that is unjust or confer a preference or disadvantage that is undue or unreasonable. To this effect, the Commission notes that subsection 27(4) of the Act places the onus on the Canadian carrier to demonstrate that any discrimination is not unjust or that any preference or disadvantage is not undue or unreasonable.

Commissioner Langford’s dissenting opinion asks some interesting questions:

What’s the difference between deregulation, forbearance in other words, and [this third price cap regime]? For consumers, the answer will be, very little. In fact, in the future, consumers living in forborne regions will be better protected. At least they’ll have competition to rely on.

As always, there is certain to be lively discussion of these issues and others at the Regulatory Blockbuster on June 13 at The 2007 Canadian Telecom Summit.

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Systemic network security

NortelNortel CTO John Roese has some interesting insights on network intelligence and the implications on security in his blog posting Security built in, not bolted on. His views were stimulated by CNet coverage of a talk delivered by Bruce Schneier [of BT Counterpane] at Info Security Europe 2007.

In the blog post, John speaks of the challenges of

the nice simple, high-performance, global Internet was so unintelligent that it could barely detect, much less defend, itself from these attacks

How do service providers guard their own networks and provide security to their customers? Some might ask, “should they?”

Contrast the current internet with his view of the future:

One of the reasons I feel that WiMAX 802.16e (not just the RF part but the whole system) has a strong possibility of playing a major role in the 4G hyperconnected future is that in addition to being a high-performance, low-cost broadband transport system, it leverages the IEEE security learnings (specifically the trials and errors of the Wi-Fi world) to deliver a system that makes few assumptions about the end systems’ security, but realizes that it must control access, protect transport and remain resilient even in the presence of the unknown.

The CNet article cites Lord Alec Broers, chair of the House of Lords science and technology committee, as having suggested that every company, from operating system and application vendors to ISPs, needs to take greater responsibility for the security of end users.

As I mentioned earlier, John Roese is delivering the closing keynote address at The 2007 Canadian Telecom Summit, June 13.

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Why wait for iPhone?

I just had a sneak peek at a new phone that is being custom developed for one of the Canadian cellular service providers for launch this summer.

The phone features the Fastap keyboard from Digit Wireless and appears to be based on a phone introduced by ZTE at CTIA in March.

The prototype of the phone is loaded with every feature you can imagine: built-in GPS, camera with flash, FM radio, music player, mobile-TV, video player, memory expansion, EVDO, web browser, speakerphone.

It is a flip phone form factor with mini-USB for connecting to your computer and charging.

I understand that the phone is being tested now. Will it be in stores before the iPhone?

Who says the Canadian market is too small for custom development? Isn’t this kind of innovation another important measure of a competitive market?

Who should pay to bridge the divide?

My blog post last week about the OECD’s broadband rankings led to some interesting discussions – some using the blog comments and others who communicated the old fashioned way – by phone.

A couple folks commented on the difference in price between broadband in the city and that offered by rural alternatives. It comes down to a question of redistribution of money: Is it fair for someone in rural Canada to have to pay more for slower speeds than what is available in the city?

This is a question of government policy. I have my own views, in part prejudiced by the fact that I personally chose to pay a lot more to live close to all sorts of conveniences: arts, sporting and cultural facilities, shopping, internet. Not everyone in rural Canada is impoverished – not by a long shot. It is an insult to equate “rural” with “impecunious”. Not everyone in the city can afford traditional supplier rates for broadband.

Should others pay to provide rural Canadians with urban prices and services for broadband, with subsidies based solely on a rural designation? Should connectivity to multi-million dollar cottages be the beneficiaries of subsidies?

Why would we stop with broadband services? I noticed that milk and other groceries are more expensive outside the city. Mind you, I have noticed that the LCBO charges the same for liquor in Keewatin as it does in Toronto. Of course, you may need to travel to Thunder Bay to find a decent Vintages selection. It is interesting to see the products for which we believe in levelling prices.

In the meantime, the CRTC has signalled in this week’s price cap decision that it is ready for rural telephone rates to move upward toward covering the costs.

I’m still waiting to see how Ontario moves forward with its budget statements to extend broadband into rural and northern communities. Maybe the best approach to stimulate broadband adoption is through an income based tax credit – independent of where people live.

Nortel vs Cisco: The lines are getting drawn

Nortel

I received an interesting package of information in the mail last Friday.

Enclosed were white papers and reports setting out distinctions between Nortel’s and Cisco’s approaches to IP telephony. In various articles, Nortel boasts a uniquely integrated strategic alliance with Microsoft, cross-licensing patents and joint sales and marketing.

The documentation claims Cisco’s approach is more network centric. Is that a bad thing? Is such an approach better for engaging carriers as channels to market, regardless of the technical merits of the architecture? Carriers might prefer network centricity.

I note that Nortel has been named the official supplier of converged network equipment for the 2010 Olympics in Vancouver and Whistler, with plans to converge all of the voice, video and data traffic over a single IP-based network backbone. At Nortel’s AGM this week, Mike Zafirovski spoke of the Olympics contract and others as evidence that Nortel has regained momentum, taking advantage of opportunities created with hyper-connectivity – a theme raised in the blog musings of Nortel CTO John Roese. Nortel is “back in the game“.

John Roese and Microsoft Communications Sector CTO Michel Burger are certain to provide their perspectives on their alliance during keynote addresses at The 2007 Canadian Telecom Summit, June 11-13. Jeff Spagnola, Cisco’s VP Marketing for Service Providers will also be addressing the Summit in a keynote address June 13, preceded by an introduction by Cisco CEO John Chambers.

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