Innoculation against telco IP-TV

Effective today, Videotron has announced more High Definition programming, bringing its total to 20 HD channels, many of them available with no monthly charge.

We have written before about the power of HD as a means to confound telco IP-TV plans. For the near future, homes with multiple HD TV sets will find IP-TV to be incapable of providing sufficient capacity to feed HD broadcast programming to more than one receiver. The more channels that are available in HD, the more likely a home will be to demand more than one HD feed.

In the meantime, Videotron and other cable companies are locking-in subscribers with sales of set-top boxes and personal video recorders that serve as disincentives for subscribers to switch to IP-TV. Each time an analog cable subscriber converts to digital represents an even more expensive acquisition for telco IP-TV service. A subscriber that has just paid $300-$600 for a cable set-top box is going to be less likely to switch service providers.

When will we see more than MTS with telco HDTV service? We’ll have a look at MTS financials later today.

Forbes likes Rogers

ForbesForbes likes the looks of Rogers these days for what they call its Canadian Triple Play. We would actually call the Rogers combination of TV, Internet, Wireless, Digital Home Phone a full quadruple play. Or four-play, if you like that better.

Nikhil Hutheesing, editor of Forbes Wireless Stock Watch, recommends RCI:

In the U.S., no similar company exists. There are cable-TV companies that offer high-speed Internet access and voice-over-IP telephone service. There are also wireless service providers like Cingular and Verizon Wireless that offer cellphone service and broadband 3G service, and telecom companies that provide Internet access via DSL. In Canada, Rogers Communications offers customers all of these options.

Besides, Hutheesing notes that since the Canadian penetration for wireless is only about 50%, compared to 70% in the U.S., “growth rates will be higher than companies such as Sprint Nextel and Verizon Wireless.”

Nice to see the attention from the US business community. In June, we observed that Business Week put Rogers in their IT-100 listing of the top 100 information technology performers.

Backup and recovery solutions

CarboniteLike many small businesses, the president of is also the director of IT, the procurement manager, finance and accounting, sales and (most importantly) the catering manager.

As director of IT, I developed a backup and recovery strategy to keep off-site backups of current projects and do a full backup periodically to CDs, also kept in another location. Like many businesses, performing backups seems to rank slightly ahead of going to the dentist in the list of My Favourite Things.

But recent telecom outages and watching friends and family go through the pain of crashed computers and iPods have recently made me rearrange my priorities; much the same as the need for a root canal may finally get you to start flossing, or the way people get a home security system after their neighbour’s home gets broken into.

Some ISPs offer automated services – but many of them are size dependent. I have 32GB of material that I want backed up. One of the Canadian telcos charges $6 per month for the first 3GB and $4 for the next block of 3GB – that gets to be pretty pricey. On the other hand, I have now started using a service called Carbonite, that offiers unlimited backup storage capabilities for an annual fee of $50 (US).

The service operates in the background and as the Red Herring review says, it really is idiot-proof. Once installed, Carbonite appears as any other drive on the My Computer view. Carbonite’s default settings take care of backing up My Documents and the Desktop, but it is simple to add other files and folders. Files that are waiting to be backed up have a yellow flag; backed up files are tagged green. It took about a week for it to do the initial 32GB back-up, but it is handling day-to-day changes with ease.

This is a winner for personal and small businesses. Take a free Test drive by clicking on the link.

The question I have is why all ISPs don’t offer these kinds of solutions.

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I’m so dizzy, my head is spinning

Wednesday was a busy day. Recovering from Halloween candy-induced sugar shock; Finance Minister income mistrust; client meetings; industry briefings; and, the Canadian Information Productivity Awards. BCE’s 3rd quarter results got lost in shuffle.

The wireless industry held a briefing Wednesday to help the community of analysts better understand the competitive landscape as described in their recently released commissioned reports from Wall Communications: “A Study on the Wireless Environment in Canada” and more catchily entitled “An Examination of Issues Raised in the Telecommunications Policy Review Panel’s March 2006 Report Regarding the Canadian Mobile Wireless Services Industry.”

The Canadian wireless sector has been feeling under attack lately. The CRTC has imposed number portability under a more compressed timetable; it is planning to consider equal access to long distance competition on cellular; consultants like Seabord Group have released studies that suggest Canadians are paying 60% more than equivalent US plans. Seabord says price is a hurdle that holds back Canadians’ adoption of wireless services.

So CWTA released the Wall reports as its rebuttal and had the authors available for Q&A.; While I agree that there are a number of factors that contribute to wireless penetration lagging the US, I am not pursuaded by Wall Communications that our prices are just fine, thank-you.

The Wall report says that Seabord assumed average use of 500 minutes in looking at comparable US plans, which Wall claims is too high. Canadian minutes of use aren’t that high, but the industry numbers include pre-paid, which Wall acknowledged brings the average down. Industry average (pre-paid and post-paid) is closer to 400 minutes per month.

When pressed to give a better post-paid number to allow Seabord to defend its claim, the subject was changed. I note that Rogers’ most recent results indicated that their average post-paid customer generated 541 minutes of use per month for the first 9 months of 2006, up 50 minutes from a year ago. It seems to me that Seabord’s use of 500 was pretty good.

Industry Canada will soon be soliciting comments on rules for its next spectrum auction, including an examination of whether incentives such as a spectrum set-aside should be introduced to attract more facilities based wireless carriers. CWTA will need more convincing evidence to demonstrate that we already have sufficient levels of competition.

Hey Evans: you talkin’ to me?

A challenge! Pistols at dawn. Mark Evans asked what I thought about Videotron CEO Robert Depatie’s comments yesterday in respect of a transmission tariff. It has been a while since I got dragged into Net Neutrality, so let’s go, Mr. Evans. I’ll meet you in the alley…

To start with, I don’t believe the press has accurately reported what was said. The Globe and Mail said

Videotron boss Robert Depatie wants the federal government to slap a transmission tariff on providers — like the music and film industry — so they can shoulder part of the burden.

That isn’t what he said, according to the speech I received. He didn’t ask the feds to step in. The Globe’s account would seem to fly in the face of his concurrent press release that called for cable deregulation and his “vibrant plea for free competition.” M. Depatie said:

What is missing in this model is a way for the provider of content to share part of the content revenue stream for the use of the network. If the movie studio, say, were to mail a DVD – not a untypical scenario – they would expect to pay postage or courier fees – why should they not expect a transmission tariff.

He also spoke from his past business experience.

Before I worked at Videotron, I was in the food business – we were a ‘content producer’ in the parlance of today’s communications business. To reach our customers, we dealt with a distribution channel, in our case, grocery stores.

To reach our customers we needed to convince our distribution channels to place our product in advantageous positions (end of aisles, eye-to-shoulder height on shelves – too high, or too low and sales suffered), and to help promote our product. We paid for that service. We compensated the distributor for his ‘help’ in making our product more successful.

Not all producers pay stores for product placement. And I have noticed that my neighbourhood grocery stores and drug stores give preferred placement to their house brands. But I don’t see people shouting about food neutrality. There is no ‘Save the soft drinks’ movement. Although with winter approaching I would like to find Red River cereal more prominently displayed, I shop around until I find it. I’m not calling for a federal inquiry as to why Sugar Zombies are easier to find at every store.

There is limited shelf space next to the cash registers or at the end of each aisle. How do you think the decisions get made as to which products get displayed there?

If we are OK with Sympatico presenting MSN more prominently and Rogers presenting Yahoo because those companies struck appropriate business relationships, what is wrong with a movie distributor doing a deal in order to be able to deliver the goods over a faster pipe to its customers? I don’t see him talking about blocking the other movie distributors.

Instead of movies, let’s say that your business wants you to work at home. But they are concerned because at 3:30 each day, your neighbour’s kid comes home and starts downloading all the TV shows and music his friends were talking about in school. So your connectivity gets spotty. Should you be able to subscribe to ‘Bandwidth Plus’ – a service that prioritizes your connection so you can keep working and getting paid?

Now, if you can subscribe to that Bandwidth Plus service, is there any reason why your office can’t subscribe to that service for all of its telecommuting employees?

What if my internet brokerage wanted to buy the same service for me to make sure that I could trade my telecom stocks the second that I hear about another flip-flop on income trust rules? Shouldn’t they be able to offer their best customers a way to make sure our trades get through?

Why is it any different for any other form of content?

We all want broadband providers to increase the size of the pipes coming into our homes. We want them to take on the multi-billion dollar risks associated with making that possible, trying to sort out how to recover the cost.

A business model that seeks to find ways to keep my monthly bill down to a manageable amount is just fine with me.

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