Telecom day at the Post

Today must be National Post Telecom Day. The entire commentary page of the Financial Post (FP19 for the edition I receive) is dedicated to telecommunications issues.

Hal Singer writes about the chill on investment that could be caused by net neutrality in a piece called Not Neutrality.

Terence Corcoran calls on Ottawa to stay the course for increasing the pace of telecom reform in his editorial Backbone Needed.

And yours truly writes about the need for Industry Canada to resist the temptation to meddle with market forces in the upcoming wireless spectrum auction in my piece Hang up on call for cell phone subsidies. The themes are consistent with material you have read on this blog. As a consumer, I would like wireless rates to fall even more — I really do like free. But, as a taxpayer, I question the government artificially stimulating an additional competitor.


Update [September 28, 10:00 am]
You can access a pdf version of the OpEd here.

How net neutrality can be anti-competitive

Nicholas Carr asks if a “neutral” network may actually be anti-competitive. He points out that the issue is more complex than many consider.

In an interesting posting, he suggests:

If net neutrality becomes law, it would prevent big companies from locking in an advantage at the protocological level – giving certain types of data privileged status – but it would allow big companies to lock in an advantage at the infrastructural level.

The protocol may be neutral, but those content providers that can afford to build better infrastructure, or mirror their sites, are able to buy advantages that confound the democratic ideals sought by those idealists who would impose net neutrality legislation. Hal Singer asks questions about Google’s motives in his commentary in today’s National Post.

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Ottawa bridges the digital divide

Barrett XploreWhen you think of Ottawa, you think of Parliament Hill, museums, high tech research parks.

Some readers may not realize that significant parts of the city of Ottawa do not have access to broadband internet service. As a result, Ottawa issued an RFP to find a service provider that would provide universal coverage to the unserved areas.

Today, Barrett Xplore was approved as the preferred private-sector partner to complete rural broadband coverage in Ottawa.

While many of us in urban regions take broadband availability for granted, lower population density creates a challenge in terms of broadband delivery to rural Canada and a gap for the delivery of public services. John Maduri, CEO of Barrett Xplore says:

Our wireless and satellite technologies bridge that gap, and offer rural broadband that’s fast, affordable and reliable. Getting broadband everywhere in Canada is no longer limited by technology. The City of Ottawa’s thorough and extensive tender process confirmed that Barrett is the best fit for rural broadband delivery.

Sustainable, rural broadband is here, now. There literally isn’t a single square inch of Canada where we can’t provide broadband.

I act as an advisor to Barrett Xplore. Its approach brings important options for internet access to Canadians. Proof that broadband service delivery is hardly the exclusive domain of telcos and cablecos.

Following up on last week’s provincial budget, as Ontario moves to extend broadband into rural and northern communities, we’ll be watching for continued fixed wireless and satellite deployment and further expansion from Barrett Xplore.

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Net neutralist shows true colours

In a Hill Times letter that was intended to critique my previous week’s Op Ed, Russell McOrmond actually helped prove my thesis: there are elements among net neutrality proponents that want to nationalize the communications infrastructure of Canada’s carriers.

In his letter, he comes clean with a statement that confirms his objective.

You can find the full text of Russ’ submission (pre-editorial chopping) on his blog.

If we built communications networks the way I believe we should, we would have a separate communications infrastructure utility that is separate from any specific product or service someone would want to connect to. … It should be just as easy to connect directly to the home of someone else in Ottawa, or to a government service, as it is any specific commercial service.

Let’s look at the design objective – to be able to connect as easily to someone else’s home, or to a government service, as it is any specific commercial service. I’d suggest that this objective is consistent with that of every carrier. Do any of you have any difficulty using the commercial internet to do just that?

The question I have is, why does he think that there needs to be a new “very-high-speed connection at my home (example: fiber)” connection to accomplish this objective? And if you believe that this new utility is a viable business plan, then go ahead and get it financed. Except for one little problem: I don’t think he wants a commercial venture to operate this network. The term utility, at least in Canada, is often a code word for a government-owned operation.

No – I am not a McCarthy commie conspiracy kind of guy. Still, up until this letter to the editor, it is rare for the neutralists expose their nationalization objectives in plain language. We generally have to infer their ultimate objective.

But Russ’ letter concludes with precisely such a statement:

Not only are the incumbent service providers in North America not a useful path for rolling out future services, but we need to wrestle this critical infrastructure out of the hands of existing telecommunications and cable companies.

And these are the folks who took umbrage when I warned in my Op Ed to beware of the People’s Republic of Net Neutrality.

I am happy you put such clarity into your letter to the editor. Thank you for your support.

Is it doublespeak at the CRTC?

There is a deadline fast approaching for Cabinet to finalize its variance of the CRTC’s local forbearance decision from last year. The final order must be issued by April 6, 2007 – Good Friday.

So the CRTC rushed out a forbearance order for Fort McMurray today, perhaps to demonstrate that it was still in-charge. Why do I say ‘rushed’? The order was released at 11:00am but contained a significant enough typo that an amended order was released 3 hours later.

The caveat in the order was:

The Commission approves the introduction of local forbearance in the Fort McMurray residential relevant market once [TELUS] has demonstrated that it has met the CQ of S [Competitor Quality of Service] criterion that will be in effect at the time of its CQ of S filing.

Both Bell and TELUS were incensed with the terms of the order. According to Janet Yale of TELUS:

It is an undeniable fact that Fort McMurray residents have a choice of competitors for their basic phone service, and yet the CRTC insists on maintaining outdated restrictions on TELUS’ ability to make its best offers to customers. The conditions for deregulation they set out for local phone service are unattainable in any practical sense, and were rejected as such by the federal government. Their decision today runs entirely contrary to the government’s directive.

Lawson Hunter of Bell said:

This proves the need for the government to move forward on its commitment, as confirmed in the recent federal budget, for a new regulatory framework for local service forbearance that will bring the full benefits of open competition to consumers.

Their concern is that cabinet may choose not to issue a final version of its variance announced in December.

When the kids were young, they would ask for a cookie before dinner, and my wife would answer them with a ‘yes’ – as soon as they finished their dinner. The CRTC said yes, you can have forbearance…

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