TELUS has announced that it has been selected to provide the Government of Ontario with managed data services, including network security. The initial 5-year, $150M contract includes opportunities for 5 additional years under extensions.

While TELUS has its own extensive network in Ontario, the contract calls for 2000 circuits in 1500 locations; off-net locations will mainly be handled by Hydro One Telecom. As a result, over the next 9-12 months of implementation, Bell Canada will experience a meaningful erosion in retail revenues, without significant wholesale off-sets.

Just as Bell West gained credibility in its selection as the builders of the Alberta SuperNet, this strategic win helps to further the interests of meaningful competition in Eastern Canada.

There are those who think that the competitive landscape is a cozy duopoly between the cable companies and the phone companies. Make no mistake. This contract not only is evidence of a vigorous rivalry between multiple service providers, it helps advance the state of competition for all subscribers by improving TELUS’ credibility in Bell’s backyard.

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TELUS, Ontario, Hydro One, Bell Canada, Mark Goldberg

I know we are talking about some really small towns (3700 TV subscribers, 150 internet subscribers in 13 communities), but something seems a little off when the phone company buys the cable company. That is what MTS Allstream announced yesterday in purchasing Valley Cable Vision.

Kelvin Shepherd is quoted:

This transaction advances our strategy of being Manitoba’s leading full service provider of wireline, wireless, broadband internet, and television services. We look forward to building on Valley Vision’s strong tradition of serving cable television customers in the Pembina Valley, and being able to offer an expanded suite of communications and entertainment service options that meet their needs.

In the Pembina Valley, MTS Allstream won’t just be the leading full service provider; they’ll be the only service provider in town.

It begs a couple questions. How does creation of a single monopoly provider help customers? How does operating a small cable company benefit shareholders of a national telco? I would like to hear the story behind acquisition.

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MTS Allstream, Valley Cable Vision, IPTV, cable, Manitoba, Mark Goldberg

I had a note from a reader who tells me that he has an interesting way to get his communications services.

He took advantage of a Rogers sign-up bonus to get 6 months of free phone service. However, he uses BitTorrent and he wasn’t crazy about the impact of ‘traffic shaping’ from Rogers, so he uses naked-DSL Sympatico for his high-speed internet – no local telephone service over the loop.

I understand that most of the strange combinations like this are put together by competitive analysts from one company checking out the deals and services from the other. This person is just a plain, ordinary consumer.

It is unusual, but it is evidence that some people will arbitrage deals and aren’t as concerned about bundles – unless there are tangible savings. Any others out there?

Technorati Tags:
Rogers, Sympatico, BitTorrent, Bell, Mark Goldberg