Protect customers

We wrote earlier about the possible need for improved reporting of service outages.

One of our friendly (but shy) readers has pointed out that the current reporting regime looks at service interruption to competitors, not to consumers. In 2005, the CRTC simplified the reporting requirements.

Before then, the Commission required that ILECs file reports on all service outages that affect competitors and that exceed 15 minutes in duration. Those reports were changed to annual reports by last year’s circular.

We think that consumers would be well served if all Canadian service providers, wireline and wireless, were required to report service outages affecting a broad base of subscribers for more than 15 minutes.

We would include broadband internet access service providers in that reporting as well, given the migration of some voice services to ride over broadband. Reliable connectivity for consumers will become a competitive supplier issue as access independent services take hold.

In an environment of government organizations looking at emergency preparedness, we may need to have an independent audit of how carriers are engineering their networks in a competitive environment. Are margins getting to be too thin to provide the kinds of reliability that national security may require?

If customers aren’t willing to pay the cost for higher network availability, how do we fund the shortfall?

Better bundles, part deux

Videotron launched its quadruple play this morning, adding mobile wireless services with some pretty aggressive pricing: 4 services for $94.95 – all in (no annoying additional network charges, etc.). The wireless services are being offered over the Rogers Wireless network acting as a Mobile Virtual Network Operator (MVNO), with Videotron handling all aspects of customer service, technical support, billing, etc.

The $95 price, while appearing very aggressive, is intended to get the customers’ attention. It includes 300 anytime minutes, basic wireline service, the ‘lite’ internet service and basic TV. Videotron’s hope is that most customers will be attracted by the bundle and will buy additional services.

As we reported on Tuesday, Videotron’s experience has been that their wireline voice service has attracted a new complement of cable subscribers.

Keep in mind that Quebec has historically had the lowest cable penetration rates of any province in Canada. As a result, Videotron’s added services (internet, phone and wireless) help to bring more basic customers onto their TV network, which already passes the homes. Better capital efficiency.

Beep, beep

Faster DownloadsAccording to a story in CARTT, the folks at Cable Labs are pushing the speed envelop even faster. This week, it issued its DOCSIS 3.0 specifications, that will, when deployed, enable operators to offer downstream data rates of 160 Mbps and upstream data rates of 120 Mbps.

The bit rate race we are seeing between the telcos and cablecos is just beginning.

Beep, beep.

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Prepare to forbear

The CRTC‘s rules on local forbearance set a threshold of 25% market share loss for the incumbent in a census or economic region.

While a lot of folks have focussed on Eastlink’s success in residential services versus Aliant, it appears that Western Canada has substantial evidence of business services competition in its 3 biggest markets.

The CRTC monitoring report indicates that, as of year end 2005, Edmonton, Calgary and Vancouver have lost 24.5%, 23.4% and 22.5% respectively.

The applications for forbearance should be getting prepared already. It makes one wonder why TELUS has not asked for the business services winback restrictions to be lifted in those markets, unless it is failing on the competitor services quality metrics.

We note that Toronto (416) and Barrie are in a similar position for business services.

Grammar school

The importance of good grammar was made evident in a CRTC Decision recently handed down.

In case you missed the story in Monday’s Globe and Mail, the placement of a comma was worth more than $2M to Rogers.

Here is the paragraph in question:

Subject to the termination provisions of [the Agreement], [the Agreement] shall be effective from the date it is made and shall continue in force for a period of five (5) years from the date it is made, and thereafter for successive five (5) year terms, unless and until terminated by one year prior notice in writing by either party.

Snap quiz. Calling out to all English teachers, when can the agreement be terminated? It all hinges on when the clause “unless and until terminated by one year prior notice in writing by either party” and whether it applies to the entire contracted period or just the successive 5 year terms.

In other words, is the contract solid for at least the first 5 years?

Well, thanks to that pesky second comma, the “unless and until” was ruled to apply to the whole sentence, not just the “and thereafter…” portion. As a result, Aliant was able to give one year’s notice to Rogers and raise pole attachment rates to the tune of more than $2M.

And that, boys and girls, is why it is important to pay attention to your English teachers when you go back to school next month!

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