[Advisors] Re: [BCC-list] Competitors blast exclusive Telus deal
michael gurstein
gurstein at gmail.com
Tue, 13 Mar 2012 12:29:08 -0700
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-----Original Message-----
From: advisors-admin@tc.ca [mailto:advisors-admin@tc.ca] On Behalf Of =
James
Van Leeuwen
Sent: Tuesday, March 13, 2012 11:47 AM
To: BC3 listserv; advisors@tc.ca Advisors
Subject: [Advisors] Re: [BCC-list] Competitors blast exclusive Telus =
deal
Senior government in Canada is paralyzed for lack of effective strategic
capacity. This will not change under Harper.=20
The most glaring symptom of the condition is that we still don't have a
national digital strategy.
Provincial 'strategies' are being developed around incumbents as we now =
see
in BC.
The Government of New Brunswick has done a much better job of leveraging
Bell Alliant, but it's a different company from Telus or Bell... more
progressive and strategic.
The Government of Saskatchewan has handed the ballgame to SaskTel (at =
least
it's crown owned).=20
The Government of Alberta built the SuperNet, then walked away from it =
to
let market forces drive last-mile solutions for rural communities.
Mobility operators are steadily gobbling up the juiciest markets and =
leaving
WISPs to fight over the scraps.
The upshot of all this is that digital governance in Canada is =
developing at
the community level, and this trend will strengthen.
It will become a key issue by the next federal election, and it will =
cast
the Conservatives in an awkward light.
Their hands-off policy of less intervention in Canada's telecom industry
will finally be challenged as a liability to Canada's strategic =
positioning
in the global economy.
What else is there to say when wholesale bandwidth costs in the U.S. are
less than 10% of ours?
Or when retail bandwidth costs are less than 1% of ours?
http://arstechnica.com/tech-policy/news/2012/02/gigabit-internet-for-80-t=
he-
unlikely-success-of-californias-sonicnet.ars?utm_source=3DArs+Technica+Ne=
wslet
ter
<http://arstechnica.com/tech-policy/news/2012/02/gigabit-internet-for-80-=
the
-unlikely-success-of-californias-sonicnet.ars?utm_source=3DArs+Technica+N=
ewsle
tter&utm_campaign=3D2ab84ded98-September_02_2011_Newsletter&utm_medium=3D=
email>
&utm_campaign=3D2ab84ded98-September_02_2011_Newsletter&utm_medium=3Demai=
l
The trend in the U.S. is now towards greater government and regulatory
intervention in the telecom industry, because of strategic objectives =
and
political pressure from grass roots.
Some recent commentary in Bloomberg from a highly respected source:
http://www.bloomberg.com/news/2012-02-15/the-case-for-publicly-owned-inte=
rne
t-service-commentary-by-susan-crawford.html
Canada is being left behind for lack of effective strategic leadership.=20
This is what happens after two consecutive generations of easy =
prosperity
based on exporting natural resources.=20
We've grown dangerously complacent.=20
As an Albertan with strong ties to the oil and gas industry, Harper =
could be
the worst possible leader for our times.=20
He and most other western political leaders are banking on Alberta's oil
riches to carry the Canadian economy under a business-as-usual scenario,
i.e., rip it and ship it.=20
What do you think they care about more... oil pipelines or data =
pipelines?
For now, there is only one solution for meaningful progress, and that is
community governance and (ideally) regional collaboration.
Here is what it looks like in Eastern Ontario:
www.eorn.ca <http://www.eorn.ca/>=20
JvL
"Never doubt that a small group of thoughtful, committed citizens can =
change
the world; indeed, it's the only thing that ever has." [Mead]
On 2012-03-13, at 9:15 AM, Garth Graham wrote:
FYI. If those of you using broadband for community development have =
been
feeling a bit lonely after the latest Telus Agreement, some strange =
allies
may have just showed up!
Rob Shaw. Competitors blast exclusive Telus deal: In world of =
technology, 10
years is a 'lifetime,' Rogers tells government. Times Colonist March 13,
2012
Read more:
http://www.timescolonist.com/news/Competitors+blast+exclusive+Telus+deal/=
629
3115/story.html#ixzz1p0NZzXu4
Canada's biggest telecommunications companies have blasted the B.C.
government for a $1-billion deal with Telus Corp. that they say is =
unfair
and won't give taxpayers the best value for money.
Shaw Communications Inc., Bell Canada, Rogers Communications Inc. and =
five
regional communications companies sharply criticized the government for
signing a 10-year deal with Telus to provide long-distance, voice, data =
and
cellular services to the provincial government, six regional health
authorities and four Crown corporations.
The province announced its intention to contract with Telus last June =
and
moved ahead with the deal despite the opposition, according to documents =
the
government released publicly on the weekend.
Rogers went so far as to hire an Ottawa-based international trade =
lawyer,
who wrote the deal was "a flawed process that borders on abuse."
"In the world of technology, 10 years is a lifetime, and it is hard to
fathom how the government can anticipate their future telecommunications
needs and expect to meet them through one company," wrote Rogers
senior-vice-president David Miller in an accompanying letter.
"And the issue of price is paramount - how, with a sole-source contract, =
can
the government effectively benchmark the prices that it obtains from =
Telus?"
The companies took particular aim at the process.
B.C. had been looking to secure a new wireless contract since 2008. It =
put
out a request for proposals on nine service bundles and said Telus won =
all
nine. The government then expanded the scope of the deal to include =
rural
service improvements and announced a direct contract in 2011 under the
rationale that only Telus could meet the province's stated needs.
Telus promised to upgrade high-speed Internet connections to 450 schools =
-
79 on Vancouver Island - expand cell coverage to dead zones, such as the
highway from Port Alberni to Tofino, and boost Internet bandwidth in 119
communities.
The other companies weren't aware they could put together offers on =
expanded
services and were excluded from making such bids, Bell Canada complained =
in
its letter. B.C. "violated its obligation to keep the tendering process =
fair
and equitable" with the deal, wrote Mario Belanger, senior =
vice-president of
sales.
Shaw noted "technology has evolved significantly and price structures
changed dramatically" in the time it took the government to sign its =
Telus
deal.
The government has said it stands to save as much as $400 million over =
the
10-year-deal by bundling all its services with Telus, which is also =
creating
an $80-million improvement fund.
"None of [the companies] were able to do it better, faster or cheaper =
than
Telus could do," said Labour, Citizens' Services and Open Government
Minister Margaret MacDiarmid. MacDiarmid said the contract contains =
clauses
allowing the province to cancel the deal.
NDP critic Doug Routley said it's another example of the Liberal =
government
changing its own procurement rules when it is convenient.
Rogers and Shaw declined to comment. Bell did not respond to a request =
for
comment.
rshaw@timescolonist.com
C Copyright (c) The Victoria Times Colonist
Read more:
http://www.timescolonist.com/news/Competitors+blast+exclusive+Telus+deal/=
629
3115/story.html#ixzz1p0NwobRE
My own question about this particular "market-based" approach to =
broadband
infrastructure development in BC isn't about procurement rules or bid
process. It's this - in a digital economy, if you "outsource" to the
private sector all of the capacity in government to understand the uses =
of
networked connectivity for the electronic delivery of government =
services,
who is left to meet government's inherent responsibility to link
connectivity and community development? My experience with government
practices of using outsourcing to downsize itself, for example in =
health,
social services or environmental regulation, is that the people who
understand the public policy dimensions of that sector are then let go, =
and
government effectiveness as an actor in the sector disappears. Less
government almost always results in less effective governance, leaving =
the
little guys and the big guys to sort it out on their own.
I'm not rejecting public-private partnerships where the capacity of
governments to exercise their responsibility to balance the system of
services remains intact. But it remains my own faith that societies =
that
recognize the importance of community in the structure of a digital =
economy
will do far better at adapting to it than those who do not. For the =
next
ten years, because of a political priority to downsize government by
outsourcing network services for the electronic delivery of government
services, Telus now owns essential components of BC capacity to address =
the
uses of ICTs for development - community development online. Bottom =
line is
that Telus now dominates the transport channels for the networked =
delivery
of government services. Long term, the question I think needs to be =
asked is
- do we want them the dominate governance? Who elected them?
GG
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D
For list archives and subscription/unsubscription settings visit:
http://vancouvercommunity.net/lists/info/broadbandcommunitychampions-list=
To Unsubscribe from this list :
Send an email to SYMPA@vancouvercommunity.net with the subject line as
follows:
UNSUBSCRIBE broadbandcommunitychampions-list
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<DIV><FONT color=3D#0000ff size=3D2 face=3DArial><SPAN=20
class=3D302411619-13032012>+1</SPAN></FONT></DIV>
<DIV><FONT color=3D#0000ff size=3D2 face=3DArial><SPAN=20
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<DIV><FONT color=3D#0000ff size=3D2 face=3DArial><SPAN=20
class=3D302411619-13032012>M</SPAN></FONT></DIV>
<BLOCKQUOTE style=3D"MARGIN-RIGHT: 0px">
<DIV></DIV>
<DIV dir=3Dltr lang=3Den-us class=3DOutlookMessageHeader =
align=3Dleft><FONT size=3D2=20
face=3DTahoma>-----Original Message-----<BR><B>From:</B> =
advisors-admin@tc.ca=20
[mailto:advisors-admin@tc.ca] <B>On Behalf Of </B>James Van=20
Leeuwen<BR><B>Sent:</B> Tuesday, March 13, 2012 11:47 AM<BR><B>To:</B> =
BC3=20
listserv; advisors@tc.ca Advisors<BR><B>Subject:</B> [Advisors] Re: =
[BCC-list]=20
Competitors blast exclusive Telus deal<BR><BR></FONT></DIV>
<DIV><BR></DIV>
<DIV>Senior government in Canada is paralyzed for lack of effective =
strategic=20
capacity. This will not change under Harper. </DIV>
<DIV><BR></DIV>
<DIV>The most glaring symptom of the condition is that we still =
don't=20
have a national digital strategy.</DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<DIV>Provincial 'strategies' are being developed around incumbents as =
we now=20
see in BC.</DIV>
<DIV><BR></DIV>
<DIV>The Government of New Brunswick has done a much better job of =
leveraging=20
Bell Alliant, but it's a different company from Telus or Bell... more=20
progressive and strategic.</DIV>
<DIV><BR></DIV>
<DIV>The Government of Saskatchewan has handed the ballgame to SaskTel =
(at=20
least it's crown owned). </DIV>
<DIV><BR></DIV>
<DIV>The Government of Alberta built the SuperNet, then walked =
away from=20
it to let market forces drive last-mile solutions for rural =
communities.</DIV>
<DIV><BR></DIV>
<DIV>Mobility operators are steadily gobbling up the juiciest markets =
and=20
leaving WISPs to fight over the scraps.</DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<DIV>The upshot of all this is that digital governance in Canada is =
developing=20
at the community level, and this trend will strengthen.</DIV>
<DIV><BR></DIV>
<DIV>It will become a key issue by the next federal election, and it =
will cast=20
the Conservatives in an awkward light.</DIV>
<DIV><BR></DIV>
<DIV>Their hands-off policy of less intervention in Canada's telecom =
industry=20
will finally be challenged as a liability to Canada's strategic =
positioning in=20
the global economy.</DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<DIV>What else is there to say when wholesale bandwidth costs in the =
U.S. are=20
less than 10% of ours?</DIV>
<DIV><BR></DIV>
<DIV>Or when retail bandwidth costs are less than 1% of ours?</DIV>
<DIV><BR></DIV>
<DIV><A=20
=
href=3D"http://arstechnica.com/tech-policy/news/2012/02/gigabit-internet-=
for-80-the-unlikely-success-of-californias-sonicnet.ars?utm_source=3DArs+=
Technica+Newsletter&utm_campaign=3D2ab84ded98-September_02_2011_Newsl=
etter&utm_medium=3Demail">http://arstechnica.com/tech-policy/news/201=
2/02/gigabit-internet-for-80-the-unlikely-success-of-californias-sonicnet=
.ars?utm_source=3DArs+Technica+Newsletter&utm_campaign=3D2ab84ded98-S=
eptember_02_2011_Newsletter&utm_medium=3Demail</A></DIV>
<DIV><BR></DIV>
<DIV>The trend in the U.S. is now towards greater government and =
regulatory=20
intervention in the telecom industry, because of strategic objectives =
and=20
political pressure from grass roots.</DIV>
<DIV><BR></DIV>
<DIV>Some recent commentary in Bloomberg from a highly respected =
source:</DIV>
<DIV><BR></DIV>
<DIV><A=20
=
href=3D"http://www.bloomberg.com/news/2012-02-15/the-case-for-publicly-ow=
ned-internet-service-commentary-by-susan-crawford.html">http://www.bloomb=
erg.com/news/2012-02-15/the-case-for-publicly-owned-internet-service-comm=
entary-by-susan-crawford.html</A></DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<DIV>Canada is being left behind for lack of effective strategic=20
leadership. </DIV>
<DIV><BR></DIV>
<DIV>This is what happens after two consecutive generations of easy =
prosperity=20
based on exporting natural resources. </DIV>
<DIV><BR></DIV>
<DIV>We've grown dangerously complacent. </DIV>
<DIV><BR></DIV>
<DIV>As an Albertan with strong ties to the oil and gas industry, =
Harper could=20
be the worst possible leader for our times. </DIV>
<DIV><BR></DIV>
<DIV>He and most other western political leaders are banking on =
Alberta's oil=20
riches to carry the Canadian economy under a business-as-usual =
scenario, i.e.,=20
rip it and ship it. </DIV>
<DIV><BR></DIV>
<DIV>What do you think they care about more... oil pipelines or =
data=20
pipelines?</DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<DIV>For now, there is only one solution for meaningful progress, and =
that is=20
community governance and (ideally) regional collaboration.</DIV>
<DIV><BR></DIV>
<DIV>Here is what it looks like in Eastern Ontario:</DIV>
<DIV><BR></DIV>
<DIV><A href=3D"http://www.eorn.ca/">www.eorn.ca</A></DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<DIV>JvL</DIV>
<DIV><BR></DIV>
<DIV><FONT class=3Dsqq><I>“Never doubt that a small group of =
thoughtful,=20
committed citizens can change the world; indeed, it's the only thing =
that ever=20
has.” [Mead]</I></FONT></DIV>
<DIV><BR></DIV>
<DIV>
<DIV>On 2012-03-13, at 9:15 AM, Garth Graham wrote:</DIV><BR=20
class=3DApple-interchange-newline>
<BLOCKQUOTE type=3D"cite">
<DIV>FYI. If those of you using broadband for community =
development=20
have been feeling a bit lonely after the latest Telus Agreement, =
some=20
strange allies may have just showed up!<BR><BR>
<BLOCKQUOTE type=3D"cite">Rob Shaw. Competitors blast exclusive =
Telus deal:=20
In world of technology, 10 years is a 'lifetime,' Rogers tells =
government.=20
Times Colonist March 13, 2012<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Read more: <A=20
=
href=3D"http://www.timescolonist.com/news/Competitors+blast+exclusive+Tel=
us+deal/6293115/story.html#ixzz1p0NZzXu4">http://www.timescolonist.com/ne=
ws/Competitors+blast+exclusive+Telus+deal/6293115/story.html#ixzz1p0NZzXu=
4</A><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Canada's biggest telecommunications =
companies have=20
blasted the B.C. government for a $1-billion deal with Telus Corp. =
that=20
they say is unfair and won't give taxpayers the best value for=20
money.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Shaw Communications Inc., Bell Canada, =
Rogers=20
Communications Inc. and five regional communications companies =
sharply=20
criticized the government for signing a 10-year deal with Telus to =
provide=20
long-distance, voice, data and cellular services to the provincial =
government, six regional health authorities and four Crown=20
corporations.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">The province announced its intention to =
contract=20
with Telus last June and moved ahead with the deal despite the =
opposition,=20
according to documents the government released publicly on the=20
weekend.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Rogers went so far as to hire an =
Ottawa-based=20
international trade lawyer, who wrote the deal was "a flawed =
process that=20
borders on abuse."<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">"In the world of technology, 10 years is a =
lifetime, and it is hard to fathom how the government can =
anticipate their=20
future telecommunications needs and expect to meet them through =
one=20
company," wrote Rogers senior-vice-president David Miller in an=20
accompanying letter.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">"And the issue of price is paramount - =
how, with a=20
sole-source contract, can the government effectively benchmark the =
prices=20
that it obtains from Telus?"<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">The companies took particular aim at the=20
process.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">B.C. had been looking to secure a new =
wireless=20
contract since 2008. It put out a request for proposals on nine =
service=20
bundles and said Telus won all nine. The government then expanded =
the=20
scope of the deal to include rural service improvements and =
announced a=20
direct contract in 2011 under the rationale that only Telus could =
meet the=20
province's stated needs.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Telus promised to upgrade high-speed =
Internet=20
connections to 450 schools - 79 on Vancouver Island - expand cell =
coverage=20
to dead zones, such as the highway from Port Alberni to Tofino, =
and boost=20
Internet bandwidth in 119 communities.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">The other companies weren't aware they =
could put=20
together offers on expanded services and were excluded from making =
such=20
bids, Bell Canada complained in its letter. B.C. "violated its =
obligation=20
to keep the tendering process fair and equitable" with the deal, =
wrote=20
Mario Belanger, senior vice-president of sales.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Shaw noted "technology has evolved =
significantly=20
and price structures changed dramatically" in the time it took the =
government to sign its Telus deal.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">The government has said it stands to save =
as much=20
as $400 million over the 10-year-deal by bundling all its services =
with=20
Telus, which is also creating an $80-million improvement=20
fund.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">"None of [the companies] were able to do =
it=20
better, faster or cheaper than Telus could do," said Labour, =
Citizens'=20
Services and Open Government Minister Margaret MacDiarmid. =
MacDiarmid said=20
the contract contains clauses allowing the province to cancel the=20
deal.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">NDP critic Doug Routley said it's another =
example=20
of the Liberal government changing its own procurement rules when =
it is=20
convenient.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Rogers and Shaw declined to comment. Bell =
did not=20
respond to a request for comment.<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><A=20
=
href=3D"mailto:rshaw@timescolonist.com">rshaw@timescolonist.com</A><BR></=
BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite"><BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">© Copyright (c) The Victoria Times=20
Colonist<BR></BLOCKQUOTE>
<BLOCKQUOTE type=3D"cite">Read more: <A=20
=
href=3D"http://www.timescolonist.com/news/Competitors+blast+exclusive+Tel=
us+deal/6293115/story.html#ixzz1p0NwobRE">http://www.timescolonist.com/ne=
ws/Competitors+blast+exclusive+Telus+deal/6293115/story.html#ixzz1p0NwobR=
E</A><BR></BLOCKQUOTE><BR>My=20
own question about this particular "market-based" approach to=20
broadband infrastructure development in BC isn't about procurement =
rules or=20
bid process. It's this - in a digital economy, if you=20
"outsource" to the private sector all of the capacity in government =
to=20
understand the uses of networked connectivity for the electronic =
delivery of=20
government services, who is left to meet government's inherent =
responsibility to link connectivity and community development? =
My=20
experience with government practices of using outsourcing to =
downsize=20
itself, for example in health, social services or environmental =
regulation,=20
is that the people who understand the public policy dimensions of =
that=20
sector are then let go, and government effectiveness as an actor in =
the=20
sector disappears. Less government almost always results in =
less=20
effective governance, leaving the little guys and the big guys to =
sort it=20
out on their own.<BR><BR>I'm not rejecting public-private =
partnerships where=20
the capacity of governments to exercise their responsibility to =
balance the=20
system of services remains intact. But it remains my own faith =
that=20
societies that recognize the importance of community in the =
structure of a=20
digital economy will do far better at adapting to it than those who =
do not.=20
For the next ten years, because of a political priority to =
downsize=20
government by outsourcing network services for the electronic =
delivery of=20
government services, Telus now owns essential components of BC =
capacity to=20
address the uses of ICTs for development – community =
development online.=20
Bottom line is that Telus now dominates the transport channels =
for the=20
networked delivery of government services. Long term, the question I =
think=20
needs to be asked is – do we want them the dominate =
governance? Who=20
elected =
them?<BR><BR>GG<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>For list=20
archives and subscription/unsubscription settings visit:<BR><A=20
=
href=3D"http://vancouvercommunity.net/lists/info/broadbandcommunitychampi=
ons-list">http://vancouvercommunity.net/lists/info/broadbandcommunitycham=
pions-list</A><BR><BR>To=20
Unsubscribe from this list :<BR>Send an email to <A=20
=
href=3D"mailto:SYMPA@vancouvercommunity.net">SYMPA@vancouvercommunity.net=
</A>=20
with the subject line as follows:<BR>UNSUBSCRIBE=20
=
broadbandcommunitychampions-list<BR><BR></DIV></BLOCKQUOTE></DIV><BR></BL=
OCKQUOTE></BODY></HTML>
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