[Advisors] Canadian Internet speeds among world's fastest: report

Sun, 5 Feb 2012 03:28:45 -0700

Just the latest self-serving propaganda from industry.=20

The major strategic threat facing the industry is that it can't keep =
pace with rising market expectations under its existing business =
paradigm.

In the traditional business paradigm, network owner/operators provide =
commercial services to pay for development and operation of their =
networks and to generate profits.

Providing better broadband service is actually self-destructive, because =
it enables competition from OTT providers of voice and video services =
like Skype and NetFlix (I use Skype for almost all of my fixed line =
telephony and videoconferencing, and only watch over-the-air =
broadcasting and online video).

Finally, Canada's regulatory framework is built around the traditional =
business paradigm and therefore captive to industry.

This all means there is no incentive for industry to change the way it =
does business or to deliver services that are internationally =
cost-competitive.

The gap between market expectations and realities will grow as more =
Canadians learn about the services that industries in other nations are =
now delivering, and how much less they cost.

Propaganda is the only tactic Canadian industry has for mitigating this =
condition, and this is the context for the new report paid for by =
Rogers.=20

A review of reader comments responding to the National Post article and =
other mainstream media coverage suggests that Canadians aren't buying =
the propaganda.

Outgoing CRTC head Konrad von Finckenstein has made it clear the federal =
government needs to reform regulation of broadcasting and =
telecommunication.

"Overhaul' is a more appropriate word for what is needed, and a common =
regulatory framework for broadcast and telecom is a given.=20

In the meantime, the simplest and most effective measure the government =
can take is to open Canadian industry to foreign ownership.

This may be imminent, if the government has actually found the =
testicular fortitude to impose unwelcome change on a recalcitrant =
incumbent industry.=20

All bets are off, but if the government does indeed relax ownership =
restrictions, watch for a flurry of merger and acquisition activity.=20

A Telus/Bell merger would best protect market share and shareholder =
value for both companies, by creating a single mobility operator with =
nationwide coverage.

Smaller mobility operators would be forced to merge to remain =
competitive in any meaningful sense, or become sitting ducks for =
acquisition at discounted prices.

MSOs could also be forced to merge to remain competitive with a Belus.=20=

Alas, none of this would actually address the fundamental issue in =
Canadian telecom, which is vertical integration of network operation and =
service provision and the expensive and massively wasteful network =
duopoly it has engendered.

Until we have arm's length separation between networks and services, we =
will never have real service-based (vs. facilities-based) competition in =
Canada.=20

There is little if any hope our current federal government will impose =
structural separation on the telecom industry, as this would wrong-foot =
the government ideologically.=20

By intervening in the market, the government would alienate a dogmatic =
voting base and leave itself wide open to withering attacks from the =
telecom and broadcast industries as well as the political opposition.

When the Conservative government intervened in the Saskatchewan potash =
industry, the hypocrisy of their actions cost them credibility.=20

Similar meddling in the Canadian telecom industry would be far more =
costly.=20

JvL

On 2012-02-04, at 2:56 PM, Work wrote:

> I thought it was a load of b$;).....
> But mainstream bull!
>=20
> Paf
> Peter Frampton=20
> (mobile so curt).=20
>=20
> On 2012-02-04, at 4:38 PM, norah@creativehouse.com wrote:
>=20
>> Likely the study looked at penetration rates where Rogers cable was =
available only. I still can't get cable anything where I live just north =
of Toronto. But I'm only scanning article off my BlackBerry so maybe I =
missed something not laughable
>> Sent from my BlackBerry device on the Rogers Wireless Network
>>=20
>> -----Original Message-----
>> From: "michael gurstein" <gurstein@gmail.com>
>> Sender: advisors-admin@tc.ca
>> Date: Sat, 4 Feb 2012 10:28:45=20
>> To: 'Peter Frampton'<pafpersonal@gmail.com>; <advisors@tc.ca>
>> Subject: RE: [Advisors] Canadian Internet speeds among world's =
fastest: report
>>=20
>> Hmmm...
>>=20
>> M
>>=20
>> -----Original Message-----
>> From: advisors-admin@tc.ca [mailto:advisors-admin@tc.ca] On Behalf Of =
Peter
>> Frampton
>> Sent: Wednesday, February 01, 2012 7:23 PM
>> To: advisors@tc.ca
>> Cc: Marita Moll
>> Subject: [Advisors] Canadian Internet speeds among world's fastest: =
report
>>=20
>>=20
>> =
http://business.financialpost.com/2012/02/01/canadians-internet-speeds-amo=
ng
>> -worlds-fastest-report/
>>=20
>>=20
>> Paf
>> Peter Frampton=20
>> (mobile so curt). _______________________________________________
>> Advisors mailing list
>> Advisors@tc.ca
>> http://victoria.tc.ca/mailman/listinfo/advisors
>>=20
>> _______________________________________________
>> Advisors mailing list
>> Advisors@tc.ca
>> http://victoria.tc.ca/mailman/listinfo/advisors
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>> =
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=07o=EF=BF=BD=EF=BF=BD+=EF=BF=BD=EF=BF=BD=1Cj=1Bm=EF=BF=BD=EF=BF=BD=EF=BF=BD=
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