Annual Report of the Privacy Commissioner

Canada’s Privacy Commissioner, Jennifer Stoddard, released her annual report recently.

In the report, she notes that her predecessor, Bruce Phillips, in his outgoing report 6 years ago, already called the weaknesses of the Privacy Act

… all the more striking now that Parliament has passed the Personal Information Protection and Electronic Documents Act. This act (which regulates personal information handling in the private sector) contains many features that are superior to the Privacy Act, making a comprehensive review of the existing law both urgent and unavoidable.

Such a review has still not taken place. As the current report states, “If the review of the Act was both ‘urgent and unavoidable’ in 2000, it is even more so today.

As we have written, there are numerous privacy issues that arise from new technologies and applications that cry out for review. As Commissioner Stoddard’s report notes:

Technological and social changes in the last 20 years – the creation of the Internet and the World Wide Web, new information and communication technologies, globalization, global positioning systems, video surveillance, outsourcing, data mining and the commodification of personal information – have not just changed the landscape, they have put us on another planet.

Labs for sale

I’m trying to imagine the listing in the real estate section of the New York Times for the landmark Bell Labs building in Holmdel NJ. 2M sq ft, former home to Nobel laureates. Buy a piece of American history. Architectural landmark.

I remember my first time arriving at the facility. In 1986, the building was already a quarter century old, but it looked like new. One of the first mirror glass buildings in the world, it was designed by Eero Saarinen to ‘disappear into the sky’ despite its awesome presence in the midst of farms and pastures in the area.

Inside, no offices are along the windows. Instead, a series of catwalks provide hallways separating the offices from the outer glass skin and the central atrium in the middle. Offices had no windows, decades before computer programmers began working in batcaves.

It made coffee break conversations in the atrium all the more inviting, encouraging interaction while providing quiet solitude when you wanted to work on your own.

When I was being shown around the facility by my first boss, Dick Grantges, he paused as we passed the reflecting ponds at the front of the building. Resting his arms on the banister and gazing out at the geese, he sighed and said that one of the things he liked best about working at Bell Labs is that if you get your best ideas while gazing out the windows, then we’ll pay you to stare at geese. Dick was a great boss – and he appreciated my trips back to Canada that always included bringing him an extra box of Red River Cereal.

Two million square feet of offices in a six story building on 472 acres. Taxes of more than $3M.

When I worked there in the late 1980s, there were more than 5000 people on-site. AT&T Communications, the long distance company, had separated from the RBOCs, but it was still integrated with what would become Lucent and Avaya. With all of the structural changes that have dissected the piece parts of the Bell Labs organization, only a thousand people remain at the Holmdel facility.

Despite AT&T reuniting with a large part of its baby Bell offspring, there is no way to put all of Humpty Dumpty back together again.

Sure, it’s only a building. But it was also a symbol of the once mighty industrial research giant. Watching Lucent sell the Holmdel facility is another loss of America’s back pages.

Rogers cracks the IT-100

65

Business Week released its listing of the top 100 performers in information technology and Rogers Communications was the sole Canadian firm to crack the list. Number 65 on the list of global titans – but don’t sniff at the relatively low placement. Take a look at who isn’t there.

No Bell, no TELUS, no Nortel nor RIM. Not even Markham-based graphics company ATI is on the list. They are in good company as well: Samsung, IBM, France Telecom and Intel are former Top 100 companies that fell off the list this year.

With revenue growth as one of the key criteria, Rogers’ M&A; activity helped propel it onto the charts. Will there be any Canadian companies on the list in 2007?

Shareholders versus subscribers

AliantBell

Last Friday, the CRTC approved Bell Canada’s application for the creation of a portfolio of tariffs to accommodate its regional income trust structure. The tariff pages are another of the procedural steps required in order to get to the closure of the deal.

It was interesting that there was a minority dissenting opinion issued from Commissioner Stuart Langford. In his view, at least some of the tax benefits to be obtained under the new corporate structure should be shared with the subscribers. The majority of the Commissioners applied their own ‘test’ of whether an exogenous event had occurred that would merits revisiting the rates. Events or initiatives are considered to qualify for an exogenous factor adjustment if:

  1. they are legislative, judicial, or administrative actions which were beyond the control of the company;
  2. they are addressed specifically to the telecommunications industry; and
  3. they have a material impact on the company.

The income trust creation was caused by the company and could hardly be considered to be beyond its control. Income trusts are not limited to telecom and therefore both of the first two tests fail, despite the obvious material impact on the company.

Commissioner Langford disagreed. He recalled the special adjustment made to accommodate the privatization of MTS and the need for the company to pay taxes for the first time.

Imagine this scenario: MTS, as it was, is privatized. It appeals to the Commission for permission to raise rates so as to offset this new expense, saying that its going-in prices are no longer correct. The Commission, as it did, agrees. A short time later, MTS converts itself into an income trust. Surely no one would allow consumers to be gouged in such a way on the grounds that a true exogenous event had not triggered the transition of MTS back to a non taxpayer.

What’s good for the goose…

Rebranding

Bell Old Logo

I noticed that Bell replaced the signs on their Central Office in one of the towns up north. The old lettering for ‘The Bell Telephone Company of Canada’ still shows through on the brick wall.

I wonder how soon the new Bell Aliant Regional Trust sign will go up. I also wonder how many customers are going to switch carriers because the new company name just isn’t as familiar as ‘The Bell’.

Bell often owns the one brick building in many small towns. The building might be seen as emblematic of the strength and permanence of the company.

In an era of ad agency-created corporate brands, like Cingular, Verizon, and even Aliant, you need to be cautious before shedding a brand name like Bell in small town Ontario and Quebec.

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