[Advisors] [BCC-list] Competitors blast exclusive Telus deal
James Van Leeuwen
jvl at ventus.ca
Tue, 13 Mar 2012 17:41:10 -0600
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On 2012-03-13, at 2:34 PM, Gary Kenward wrote:
> Just a passing thought:
>=20
> While I do believe that Canada needs a better strategy, I do not think =
the comparison with the US helps the case.
I think it's essential Gary.=20
Great Northern's main line across the northern U.S. Rockies drove the =
deployment of Canadian Pacific's main line across the southern Canadian =
Rockies in the 1890s and 1900s.
Great Northern had already poached almost all of the ore transport =
contracts in BC's southern mining districts, drawing most of the jobs =
and wealth creation Stateside.
CP couldn't offer a cost-competitive solution for shipping ore to market =
with its existing main line, so they built a southern main line through =
the Crowsnest Pass (I can see it from where I'm sitting).=20
CP also invested in a smelter that enabled value-adding of the ore on =
this side of the border, and eventually drove most of the American =
interests right out of southern B.C.=20
It's a truly epic story, best told by Barrie Sanford in his book =
McCulloch's Wonder.
We're facing the same idiotic situation in relation to the oil sands.=20
Instead of value-adding all the bitumen on this side of the border and =
shipping refined products, the great plan is to build Keystone XL and =
ship most of the bitumen to refineries in Texas.
What are we thinking.
We're basically doing the same thing with broadband.
Months ago, I worked with my community to respond to an RFI from a data =
center developer in the U.S. (a household brand name in the IT =
industry).=20
They were looking to build a large private cloud facility in one of =
three northern States or in the province of Alberta (a damn sight better =
than a mine).
What do you suppose our chances are when the cost of wholesale bandwidth =
Stateside is less than 10% of what we can get on this side of the =
border?=20
A few years back, HP explored the business case for deploying a POD data =
center adjacent to a source of clean electricity in rural central =
Alberta (an anaerobic digester waste-to-energy system).=20
They ha to shelve the idea because the cost of bandwidth made it =
unprofitable ( so much for those rural employment opportunities).
I'm now exploring the same opportunity in relation to a waste-to-energy =
system here in southern Alberta.=20
Bandwidth costs have come down, but they still aren't anywhere close to =
competitive with the U.S.
I'd give just about anything to have direct access to a Level 3 POP in =
the U.S., so that I can compete effectively for the opportunity.
This is exactly what industry and community interests in B.C.'s mining =
district did before CP built their southern main line.
They literally begged Great Northern to build spur lines north across =
the border into their communities, so that they could ship their ore to =
market profitably.
If GN wasn't interested, they tried raising the money to build their own =
spurs across the border to the nearest GN trackage.
GN ended up selling some of its trackage to CP, and tearing out the rest =
of it.=20
The mines in southern B.C. are now mostly played out, but they were the =
economic foundation of B.C.'s Southern Interior for more than a century.=20=
The CP smelter now belongs to Teck Cominco, still Canadian for now.=20
It is still an economic anchor of the Central Kootenay district, and it =
processes quite a lot of ore from the U.S. and even overseas.=20
How cool is that!
Our incumbent telecom network operators aren't trying to help us with =
these economic development opportunities on this side of the border.
They are standing in the way.=20
> The evolution of digital services in the US is driven by (the US =
version) of free market capitalism. Service rates =96 whether long hall, =
or cellular, or Internet access, and so on =96 are generally lower =
because the US has roughly 10x the population in an area that, overall, =
is smaller then Canada. When you have three or four big operators =
competing for the same 11 million subscribers in NY, prices will go =
down. Competition for the 350,000 Halifax residents exists, but it=92s =
roughly the same number of operators and few customers. And the =
infrastructure costs per sq km are fixed.
This is why Canada has to abandon its industry status quo of =
facilities-based competition as soon as possible.=20
It could not happen too soon.
Given our geography and demography, we cannot possibly compete with the =
U.S. or anyone else under this paradigm.=20
> Note also that there are very few small operators left in the US. The =
consolidation of service providers has been the growing trend in the US =
for the last decade (actually, pretty well the trend world wide).
This has everything to do with facilities-based business models, which =
enable network owner-operators to prevent or starve competition (costs =
of market entry and penetration are too high).=20
This is hugely counterproductive from an economic development =
standpoint.
To Garth's point, why are we allowing the telecom industry to govern =
Canada's economic development agenda?
> Canada has always had to use public money to subsidize country wide =
services, from transportation to communications. This has always been a =
social policy, not a market policy.=20
> >=46rom what I see, social policies do not fith well with Harper=92s =
ideology. There is a finite pot of public money and many, many issues. =
Harper=92s government appears to have different priorities.=20
The irony is laugh-out-loud absurd.=20
The Conservatives make much noise about free enterprise, but they are =
hanging us all out to dry.
Free enterprise is all well and good, as long as it doesn't come at the =
expense of incumbent industry players (whatever the industry).=20
They seem determined to entrench Canada' status as a de facto rentier =
state (http://en.wikipedia.org/wiki/Rentier_state) to the U.S.
> It might be a better comparison to look at a developed country that =
has a similar economy and social policy structure (I=92ll let the =
experts figure out what country that might be).
Perhaps Australia, where they have the same strategy that we need.
They have a Minister of Broadband and the Digital Economy, and they will =
plaster the country with open access fibre over the next decade.
JvL
> Cheers,
> Gary
>=20
> On 12.03.13 3:47 PM, "James Van Leeuwen" <jvl@ventus.ca> wrote:
>=20
>>=20
>> Senior government in Canada is paralyzed for lack of effective =
strategic capacity. This will not change under Harper.=20
>>=20
>> The most glaring symptom of the condition is that we still don't have =
a national digital strategy.
>>=20
>>=20
>> Provincial 'strategies' are being developed around incumbents as we =
now see in BC.
>>=20
>> 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.
>>=20
>> The Government of Saskatchewan has handed the ballgame to SaskTel (at =
least it's crown owned).=20
>>=20
>> The Government of Alberta built the SuperNet, then walked away from =
it to let market forces drive last-mile solutions for rural communities.
>>=20
>> Mobility operators are steadily gobbling up the juiciest markets and =
leaving WISPs to fight over the scraps.
>>=20
>>=20
>> The upshot of all this is that digital governance in Canada is =
developing at the community level, and this trend will strengthen.
>>=20
>> It will become a key issue by the next federal election, and it will =
cast the Conservatives in an awkward light.
>>=20
>> 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.
>>=20
>>=20
>> What else is there to say when wholesale bandwidth costs in the U.S. =
are less than 10% of ours?
>>=20
>> Or when retail bandwidth costs are less than 1% of ours?
>>=20
>> =
http://arstechnica.com/tech-policy/news/2012/02/gigabit-internet-for-80-th=
e-unlikely-success-of-californias-sonicnet.ars?utm_source=3DArs+Technica+N=
ewsletter&utm_campaign=3D2ab84ded98-September_02_2011_Newsletter&utm_mediu=
m=3Demail
>>=20
>> 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.
>>=20
>> Some recent commentary in Bloomberg from a highly respected source:
>>=20
>> =
http://www.bloomberg.com/news/2012-02-15/the-case-for-publicly-owned-inter=
net-service-commentary-by-susan-crawford.html
>>=20
>>=20
>> Canada is being left behind for lack of effective strategic =
leadership.=20
>>=20
>> This is what happens after two consecutive generations of easy =
prosperity based on exporting natural resources.=20
>>=20
>> We've grown dangerously complacent.=20
>>=20
>> As an Albertan with strong ties to the oil and gas industry, Harper =
could be the worst possible leader for our times.=20
>>=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
>>=20
>> What do you think they care about more... oil pipelines or data =
pipelines?
>>=20
>>=20
>> For now, there is only one solution for meaningful progress, and that =
is community governance and (ideally) regional collaboration.
>>=20
>> Here is what it looks like in Eastern Ontario:
>>=20
>> www.eorn.ca <http://www.eorn.ca/>=20
>>=20
>>=20
>> JvL
>>=20
>> =93Never doubt that a small group of thoughtful, committed citizens =
can change the world; indeed, it's the only thing that ever has.=94 =
[Mead]
>>=20
>> On 2012-03-13, at 9:15 AM, Garth Graham wrote:
>>=20
>>> 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!
>>>=20
>>>> 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/6=
293115/story.html#ixzz1p0NZzXu4
>>>>=20
>>>> 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.
>>>>=20
>>>> 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.
>>>>=20
>>>> 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.
>>>>=20
>>>> 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."
>>>>=20
>>>> "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.
>>>>=20
>>>> "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?"
>>>>=20
>>>> The companies took particular aim at the process.
>>>>=20
>>>> 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.
>>>>=20
>>>> 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.
>>>>=20
>>>> 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.
>>>>=20
>>>> Shaw noted "technology has evolved significantly and price =
structures changed dramatically" in the time it took the government to =
sign its Telus deal.
>>>>=20
>>>> 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.
>>>>=20
>>>> "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.
>>>>=20
>>>> NDP critic Doug Routley said it's another example of the Liberal =
government changing its own procurement rules when it is convenient.
>>>>=20
>>>> Rogers and Shaw declined to comment. Bell did not respond to a =
request for comment.
>>>>=20
>>>> rshaw@timescolonist.com
>>>>=20
>>>> =A9 Copyright (c) The Victoria Times Colonist
>>>> Read more: =
http://www.timescolonist.com/news/Competitors+blast+exclusive+Telus+deal/6=
293115/story.html#ixzz1p0NwobRE
>>>=20
>>> 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.
>>>=20
>>> 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 =96 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 =96 do we want them =
the dominate governance? Who elected them?
>>>=20
>>> 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
>>>=20
>>> To Unsubscribe from this list :
>>> Send an email to SYMPA@vancouvercommunity.net with the subject line =
as follows:
>>> UNSUBSCRIBE broadbandcommunitychampions-list
>>>=20
>>=20
>>=20
>=20
>=20
> Gary Kenward
>=20
> THE INFORMATION CONTAINED IN THIS DOCUMENT IS PRIVATE AND CONFIDENTIAL
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<html><head></head><body style=3D"word-wrap: break-word; =
-webkit-nbsp-mode: space; -webkit-line-break: after-white-space; =
"><div><div><div>On 2012-03-13, at 2:34 PM, Gary Kenward wrote:</div><br =
class=3D"Apple-interchange-newline"><blockquote type=3D"cite">
<title>Re: [Advisors] Re: [BCC-list] Competitors blast exclusive Telus =
deal</title>
<div>
<font face=3D"Calibri, Verdana, Helvetica, Arial"><span =
style=3D"font-size:12pt">Just a passing thought:<br>
<br>
While I do believe that Canada needs a better strategy, I do not think =
the comparison with the US helps the =
case.<br></span></font></div></blockquote><div><br></div><div>I think =
it's essential Gary. </div><div><br></div><div>Great Northern's =
main line across the northern U.S. Rockies drove the deployment of =
Canadian Pacific's main line across the southern Canadian Rockies in the =
1890s and 1900s.</div><div><br></div><div>Great Northern had already =
poached almost all of the ore transport contracts in BC's southern =
mining districts, drawing most of the jobs and wealth creation =
Stateside.</div><div><br></div><div>CP couldn't offer a cost-competitive =
solution for shipping ore to market with its existing main line, so they =
built a southern main line through the Crowsnest Pass (I can see it from =
where I'm sitting). </div><div><br></div><div>CP also invested in a =
smelter that enabled value-adding of the ore on this side of the border, =
and eventually drove most of the American interests right out of =
southern B.C. </div><div><br></div><div>It's a truly epic story, =
best told by Barrie Sanford in his book <b><i>McCulloch's =
Wonder</i></b>.</div><div><br></div><div>We're facing the same idiotic =
situation in relation to the oil =
sands. </div><div><br></div><div>Instead of value-adding all the =
bitumen on this side of the border and shipping refined products, the =
great plan is to build Keystone XL and ship most of the bitumen to =
refineries in Texas.</div><div><br></div><div>What are we =
thinking.</div><div><br></div><div><br></div><div>We're basically doing =
the same thing with broadband.</div><div><br></div><div>Months ago, I =
worked with my community to respond to an RFI from a data center =
developer in the U.S. (a household brand name in the IT =
industry). </div><div><br></div><div>They were looking to build a =
large private cloud facility in one of three northern States or in the =
province of Alberta (a damn sight better than a =
mine).</div><div><br></div><div>What do you suppose our chances are when =
the cost of wholesale bandwidth Stateside is less than 10% of what we =
can get on this side of the =
border? </div><div><br></div><div><br></div><div>A few years back, =
HP explored the business case for deploying a POD data center adjacent =
to a source of clean electricity in rural central Alberta (an anaerobic =
digester waste-to-energy system). </div><div><br></div><div>They ha =
to shelve the idea because the cost of bandwidth made it unprofitable ( =
so much for those rural employment =
opportunities).</div><div><br></div><div><div>I'm now exploring the same =
opportunity in relation to a waste-to-energy system here in southern =
Alberta. </div><div><br></div><div>Bandwidth costs have come down, =
but they still aren't anywhere close to competitive with the =
U.S.</div><div><br></div><div><br></div><div>I'd give just about =
anything to have direct access to a Level 3 POP in the U.S., so that I =
can compete effectively for the =
opportunity.</div><div><br></div><div>This is exactly what industry and =
community interests in B.C.'s mining district did before CP built their =
southern main line.</div><div><br></div><div>They literally begged Great =
Northern to build spur lines north across the border into their =
communities, so that they could ship their ore to market =
profitably.</div><div><br></div><div>If GN wasn't interested, they tried =
raising the money to build their own spurs across the border to the =
nearest GN trackage.</div><div><br></div><div><br></div><div>GN ended up =
selling some of its trackage to CP, and tearing out the rest of =
it. </div><div><br></div><div>The mines in southern B.C. are now =
mostly played out, but they were the economic foundation of B.C.'s =
Southern Interior for more than a =
century. </div></div><div><br></div><div><div>The CP smelter now =
belongs to Teck Cominco, still Canadian for =
now. </div><div><br></div><div>It is still an economic anchor of =
the Central Kootenay district, and it processes quite a lot of ore from =
the U.S. and even overseas. </div><div><br></div><div>How cool is =
that!</div><div><br></div></div><div><br></div><div>Our incumbent =
telecom network operators aren't trying to help us with these economic =
development opportunities on this side of the =
border.</div><div><br></div><div>They are standing in the =
way. </div><div><br></div><div><br></div><blockquote =
type=3D"cite"><div><font face=3D"Calibri, Verdana, Helvetica, =
Arial"><span style=3D"font-size:12pt">
The evolution of digital services in the US is driven by (the US =
version) of free market capitalism. Service rates =96 whether long hall, =
or cellular, or Internet access, and so on =96 are generally lower =
because the US has roughly 10x the population in an area that, overall, =
is smaller then Canada. When you have three or four big operators =
competing for the same 11 million subscribers in NY, prices will go =
down. Competition for the 350,000 Halifax residents exists, but it=92s =
roughly the same number of operators and few customers. And the =
infrastructure costs per sq km are =
fixed.<br></span></font></div></blockquote><div><br></div><div>This is =
why Canada has to abandon its industry status quo of facilities-based =
competition <b>as soon as =
possible</b>. </div><div><br></div><div>It could not happen too =
soon.</div><div><br></div><div>Given our geography and demography, we =
cannot possibly compete with the U.S. or anyone else under this =
paradigm. </div><div><br></div><blockquote type=3D"cite"><div><font =
face=3D"Calibri, Verdana, Helvetica, Arial"><span =
style=3D"font-size:12pt">
Note also that there are very few small operators left in the US. The =
consolidation of service providers has been the growing trend in the US =
for the last decade (actually, pretty well the trend world =
wide).<br></span></font></div></blockquote><div><br></div><div>This has =
everything to do with facilities-based business models, which enable =
network owner-operators to prevent or starve competition (costs of =
market entry and penetration are too =
high). </div><div><br></div><div>This is hugely counterproductive =
from an economic development standpoint.</div><div><br></div><div>To =
Garth's point, why are we allowing the telecom industry to govern =
Canada's economic development agenda?</div><div><br></div><blockquote =
type=3D"cite"><div><font face=3D"Calibri, Verdana, Helvetica, =
Arial"><span style=3D"font-size:12pt">
Canada has always had to use public money to subsidize country wide =
services, from transportation to communications. This has always been a =
social policy, not a market policy. <br>
>=46rom what I see, social policies do not fith well with Harper=92s =
ideology. There is a finite pot of public money and many, many issues. =
Harper=92s government appears to have different priorities. =
<br></span></font></div></blockquote><div><br></div><div>The irony is =
laugh-out-loud absurd. </div><div><br></div><div>The Conservatives =
make much noise about free enterprise, but they are hanging us all out =
to dry.</div><div><br></div><div>Free enterprise is all well and good, =
as long as it doesn't come at the expense of incumbent industry players =
(whatever the industry). </div><div><br></div><div>They seem =
determined to entrench Canada' status as a de facto rentier state (<a =
href=3D"http://en.wikipedia.org/wiki/Rentier_state">http://en.wikipedia.or=
g/wiki/Rentier_state</a>) to the =
U.S.</div><div><br></div><br><blockquote type=3D"cite"><div><font =
face=3D"Calibri, Verdana, Helvetica, Arial"><span =
style=3D"font-size:12pt">
It might be a better comparison to look at a developed country that has =
a similar economy and social policy structure (I=92ll let the experts =
figure out what country that might =
be).<br></span></font></div></blockquote><div><br></div><div>Perhaps =
Australia, where they have the same strategy that we =
need.</div><div><br></div><div>They have a Minister of Broadband and the =
Digital Economy, and they will plaster the country with open access =
fibre over the next =
decade.</div><div><br></div><div>JvL</div><div><br></div><blockquote =
type=3D"cite"><div><font face=3D"Calibri, Verdana, Helvetica, =
Arial"><span style=3D"font-size:12pt">
Cheers,<br>
Gary<br>
<br>
On 12.03.13 3:47 PM, "James Van Leeuwen" <<a =
href=3D"x-msg://2147/jvl@ventus.ca">jvl@ventus.ca</a>> wrote:<br>
<br>
</span></font><blockquote type=3D"cite"><font face=3D"Calibri, Verdana, =
Helvetica, Arial"><span style=3D"font-size:12pt"><br>
Senior government in Canada is paralyzed for lack of effective strategic =
capacity. This will not change under Harper. <br>
<br>
The most glaring symptom of the condition is that we still don't have a =
national digital strategy.<br>
<br>
<br>
Provincial 'strategies' are being developed around incumbents as we now =
see in BC.<br>
<br>
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.<br>
<br>
The Government of Saskatchewan has handed the ballgame to SaskTel (at =
least it's crown owned). <br>
<br>
The Government of Alberta built the SuperNet, then walked away from it =
to let market forces drive last-mile solutions for rural =
communities.<br>
<br>
Mobility operators are steadily gobbling up the juiciest markets and =
leaving WISPs to fight over the scraps.<br>
<br>
<br>
The upshot of all this is that digital governance in Canada is =
developing at the community level, and this trend will strengthen.<br>
<br>
It will become a key issue by the next federal election, and it will =
cast the Conservatives in an awkward light.<br>
<br>
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.<br>
<br>
<br>
What else is there to say when wholesale bandwidth costs in the U.S. are =
less than 10% of ours?<br>
<br>
Or when retail bandwidth costs are less than 1% of ours?<br>
<br>
<a =
href=3D"http://arstechnica.com/tech-policy/news/2012/02/gigabit-internet-f=
or-80-the-unlikely-success-of-californias-sonicnet.ars?utm_source=3DArs+Te=
chnica+Newsletter&utm_campaign=3D2ab84ded98-September_02_2011_Newslett=
er&utm_medium=3Demail">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-Septemb=
er_02_2011_Newsletter&utm_medium=3Demail</a><br>
<br>
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.<br>
<br>
Some recent commentary in Bloomberg from a highly respected source:<br>
<br>
<a =
href=3D"http://www.bloomberg.com/news/2012-02-15/the-case-for-publicly-own=
ed-internet-service-commentary-by-susan-crawford.html">http://www.bloomber=
g.com/news/2012-02-15/the-case-for-publicly-owned-internet-service-comment=
ary-by-susan-crawford.html</a><br>
<br>
<br>
Canada is being left behind for lack of effective strategic leadership. =
<br>
<br>
This is what happens after two consecutive generations of easy =
prosperity based on exporting natural resources. <br>
<br>
We've grown dangerously complacent. <br>
<br>
As an Albertan with strong ties to the oil and gas industry, Harper =
could be the worst possible leader for our times. <br>
<br>
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. <br>
<br>
What do you think they care about more... oil pipelines or data =
pipelines?<br>
<br>
<br>
For now, there is only one solution for meaningful progress, and that is =
community governance and (ideally) regional collaboration.<br>
<br>
Here is what it looks like in Eastern Ontario:<br>
<br>
<a href=3D"http://www.eorn.ca">www.eorn.ca</a> <<a =
href=3D"http://www.eorn.ca/">http://www.eorn.ca/</a>> <br>
<br>
<br>
JvL<br>
<br>
<i>=93Never doubt that a small group of thoughtful, committed citizens =
can change the world; indeed, it's the only thing that ever has.=94 =
[Mead]<br>
</i><br>
On 2012-03-13, at 9:15 AM, Garth Graham wrote:<br>
<br>
</span></font><blockquote type=3D"cite"><font face=3D"Calibri, Verdana, =
Helvetica, Arial"><span style=3D"font-size:12pt">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!<br>
<br>
</span></font><blockquote type=3D"cite"><font face=3D"Calibri, Verdana, =
Helvetica, Arial"><span style=3D"font-size:12pt">Rob Shaw. Competitors =
blast exclusive Telus deal: In world of technology, 10 years is a =
'lifetime,' Rogers tells government. Times Colonist March 13, 2012<br>
Read more: <a =
href=3D"http://www.timescolonist.com/news/Competitors+blast+exclusive+Telu=
s+deal/6293115/story.html#ixzz1p0NZzXu4">http://www.timescolonist.com/news=
/Competitors+blast+exclusive+Telus+deal/6293115/story.html#ixzz1p0NZzXu4</=
a><br>
<br>
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.<br>
<br>
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.<br>
<br>
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.<br>
<br>
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."<br>
<br>
"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.<br>
<br>
"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?"<br>
<br>
The companies took particular aim at the process.<br>
<br>
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.<br>
<br>
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.<br>
<br>
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.<br>
<br>
Shaw noted "technology has evolved significantly and price structures =
changed dramatically" in the time it took the government to sign its =
Telus deal.<br>
<br>
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.<br>
<br>
"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.<br>
<br>
NDP critic Doug Routley said it's another example of the Liberal =
government changing its own procurement rules when it is convenient.<br>
<br>
Rogers and Shaw declined to comment. Bell did not respond to a request =
for comment.<br>
<br>
<a =
href=3D"x-msg://2147/rshaw@timescolonist.com">rshaw@timescolonist.com</a><=
br>
<br>
=A9 Copyright (c) The Victoria Times Colonist<br>
Read more: <a =
href=3D"http://www.timescolonist.com/news/Competitors+blast+exclusive+Telu=
s+deal/6293115/story.html#ixzz1p0NwobRE">http://www.timescolonist.com/news=
/Competitors+blast+exclusive+Telus+deal/6293115/story.html#ixzz1p0NwobRE</=
a><br>
</span></font></blockquote><font face=3D"Calibri, Verdana, Helvetica, =
Arial"><span style=3D"font-size:12pt"><br>
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.<br>
<br>
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 =96 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 =96 do we want them =
the dominate governance? Who 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>
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<br>
</span></font></blockquote><font face=3D"Calibri, Verdana, Helvetica, =
Arial"><span style=3D"font-size:12pt"><br>
<br>
</span></font></blockquote><font face=3D"Calibri, Verdana, Helvetica, =
Arial"><span style=3D"font-size:12pt"><br>
</span></font><span style=3D"font-size:12pt"><font color=3D"#000080"><font=
face=3D"Skia, Verdana, Helvetica, Arial"><br>
<hr align=3D"CENTER" size=3D"3" width=3D"95%"></font></font><font =
face=3D"Skia, Verdana, Helvetica, Arial"><font color=3D"#0A0032">Gary =
Kenward<br>
</font></font></span><font color=3D"#300094"><font size=3D"1"><font =
face=3D"Comic Sans MS"><span style=3D"font-size:8pt"><br>
</span></font></font></font><font size=3D"1"><span =
style=3D"font-size:8pt"><font color=3D"#FF0000"><font face=3D"Engravers =
MT">THE INFORMATION CONTAINED IN THIS DOCUMENT IS PRIVATE AND =
CONFIDENTIAL</font></font></span></font><font face=3D"Calibri, Verdana, =
Helvetica, Arial"><span style=3D"font-size:12pt"><br>
</span></font>
</div>
</blockquote></div><br></div></body></html>=
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