Coping in difficult times

The folks at Intel in Haifa have leveraged their own technology to keep working through the current wave of incoming missile attacks. The people who brought you the Centrino chip have been keeping productive thanks to in-house wireless networking. This is not something you see in most of the promotional brochures.

Don’t you think everyone should have WiFi equipped bomb shelters?

Intel Israel, is considered to be the largest private employer in Israel today – with 6,600 employees in its development and production facilities.

As we have written before, Israel’s biennial Telecom show takes place this year, November 6-9. We are still planning to attend. Let me know if you want to join us!

Faster than…

SupermanOn July 5, Bell announced its Optimax internet service, offering download speeds of 10-16 Mbps (see Jon Arnold’s comments). Now Videotron has raised the stakes even higher, giving subscribers to its Extreme Plus High-Speed Internet 20 Mbps service. As the Quebecor press release says: “Videotron still the fastest. Period.”

Through the weekend, Mark Evans wrote about HDTV: Hot or Not? I suspect that increased HDTV penetration is one of the strategic objectives of the cable industry.

Telco IP TV has limitations on the number of HD channels that can be carried over its broadband connections. The sooner that people buy multiple HD screens for their homes, the more difficult it will be for the phone companies to control a household bundle that includes traditional broadcast distribution.

There is a disruptive approach needed – we think the phone companies need to change the rules of the game. We’ll have some more thoughts on this over time. And later this week, we’ll look at a colleague who specializes in disruption.

Stay tuned!

Operating on the fringe

TelehopWe have written before about how some companies are able to profitably identify niche opportunities in telecom and offer service to their customers.

Telehop, the company behind the $1 per call 10-10-620 service and the discount dial-around by-the-minute service 10-10-100, has announced advertiser-supported, free directory assistance.

Toronto HondaInitial advertising partners include Toronto Honda and Omni TV.

According to Telehop President Ruth Bartholomeusz,

The service works very much like normal directory assistance. Callers dial 10-10-620-0 or 10-10-100-0 and go through an automated system that will play an advertising message before they are asked for the location, type of listing and listing name.

Telehop (TSX-Venture: HOP) seems to be successful at identifying niche opportunities and offering value to customers, operating with no debt and growing steadily.

MSRP

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There is a Public Notice out from the CRTC, looking at whether to remove some of the final regulations that are still imposed on Bell, TELUS and the incumbents for long distance services.

Regulation on the major phone companies have been largely forborne since 1997, but there are a few little items that seem anachronistic in today’s competitive reality: maintaining a basic rate schedule for toll; prohibit route de-averaging on these rates; provide advance notice of changes in these rates; make these rates available for any customer requesting them; etc.

Does it matter? We can think of a few reasons that it does, including ways that residential consumers can subscribe to basic rates in order to save (that’s right, save) the so-called ‘network access’ fee.

And besides, if there is no longer a list price, how will we know what percentage the savings are for other price plans?

Off and running

AliantThe new units of Bell Aliant are actually up and running and finished their first week of trading at $34.05.

On Friday, I had a chance to follow up on the concerns that I had mentioned in my posting earlier in the week. Based on my conversations with the company, I have a greater level of comfort in the structure of inter-company transactions.

There are interesting marketing opportunities that arise from a company focused on serving the second tier markets.

In addition, it should also help BCE clarify its own business focus, aided by the consolidated mobile wireless assets and the uncoupling of the regional operations.

It will be a very different model to examine. As we noted a few months ago, MTS rejected the idea of income trusts for telcos more than two years ago. We disagreed with that decision then.

Bell Aliant will prove one of these viewpoints correct. I’m prepared to place a bet.

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