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IP: worth readimng. RE: [broadband] Bell Canada DSL streaming media tax
From: David Farber <dfarber () earthlink net>
Date: Fri, 17 May 2002 10:20:34 -0400
-----Original Message----- From: David Akin <dakin () ctv ca> Date: Fri, 17 May 2002 10:02:18 To: "'farber () cis upenn edu'" <farber () cis upenn edu> Subject: RE: [broadband] Bell Canada DSL streaming media tax
-----Original Message----- From: Dave Farber [mailto:dave () farber net] Sent: Thursday, May 16, 2002 3:07 PM To: ip Subject: IP: [broadband] Bell Canada DSL streaming media tax ------ Forwarded Message From: Rich Persaud <persaud () Autometa com> Organization: Autometa Corporation Date: Thu, 16 May 2002 11:27:56 -0700 To: Cory Doctorow <doctorow () craphound com>
Note that SBC (Pacific Bell) of Texas is the largest (20%) shareholder of BCE (which controls Bell Canada).
Mmm. Not quite right. SBC owns 20% of Bell Canada, the remaining 80% being owned by BCE Inc. (Disclosure; BCE also owns CTV and The Globe and Mail, the news outlets I work for, as well as a host of other telecom concern, most notably Teleglobe Inc. which filed for bankruptcy protection this week. Naturally, I don't speak for the corporate masters.) SBC, in fact, has a put option that's very much in play right now and the feeling on the street is that SBC is ready to wash its hands of Bell and force BCE to buy back the 20%. The chief financial officer of Bell was an SBC guy but he was recently replaced by a BCE guy. There are no SBCers in the senior executive ranks at Bell.
SBC is applying similar logic in Canada, via BCE & Bell Canada. Since a competitive DSL market never emerged in Canada, BCE/SBC are using bandwidth caps (instead of ISP contracts) to control streaming media distribution in Canada.
To all in Canada, it seems evident that SBC is trying to wash its hands of Bell. The mere existence of an SBC equity stake in another telco shouldn't suggest that their corporate strategies are similar. (Of course, if folks in the states have some indications that SBC is pulling Bell Canada's strings, I'm all ears and would love to tell that story.) And while competitive DSL providers have been slow to market -- there is competition, albeit only in built-up urban areas. Canada's communications regulator, unlike U.S. regulators, has compelled cable and DSL providers to allow third-party access to the incumbents' central offices and facilities. And while there is little DSL competition, there is still plenty of competition among high-speed providers, between cable and telcos. High-speed takeup among Canadian consumers is the highest in the world and, in U.S. dollar terms, the prices are the lowest. No-limit High-speed (3 Mb downstream, 560 kb upstream) service is available from most cablecos in Canada for less than $30 US a month (cheaper if you bundle some other telco/cable services.). Almost all telco and cablecos in Canada have taken steps in the last few months to bring in some new price schedules. While Bell has introduced some bandwidth caps, it has also lowered prices for a basic high-speed service. Its cable competitors are doing the same thing. As the market matures in Canada and existing competitors introduce new pricing schemes, CLECs, ISPs and others here are already examining new ways to compete in the market. Hopefully, one of those entrants will offer more detailed metered pricing which takes into account how much backbone bandwidth a user consumers compared to the consumption of bandwidth on a regional or local hub. David Akin --------------------------------------------------------- CTV News The Globe and Mail National Business Contributing Writer and Technology Correspondent --------------------------------------------------------- Office: 416.313.2503 dakin () ctv ca Mobile: 416.528.3819 dakin () globeandmail ca --------------------------------------------------------- For archives see: http://www.interesting-people.org/archives/interesting-people/
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- IP: worth readimng. RE: [broadband] Bell Canada DSL streaming media tax David Farber (May 17)