Telecom by yum9me (CC BY-NC-ND 2.0) https://flic.kr/p/53jSy4

Telecom by yum9me (CC BY-NC-ND 2.0) https://flic.kr/p/53jSy4

Telecom

Bell Media President Directed CTV, Radio Stations To Provide Favourable Wireless Coverage

Carleton professor Dwayne Winseck has posted a bombshell report that uncovers editorial interference at Bell with Bell Media President Kevin Crull issuing directives to CTV and company-owned local television and radio channels to provide favourable coverage of the wireless issue just as the incumbent campaign against Verizon was ramping up in early July. Winseck posts details on internal company emails that indicate Crull sent the message to provide coverage on the CRTC-sponsored Wall Report:

Kevin Crull our President wants us to give this report some coverage….” and “Kevin is asking if this report can get some coverage today on Talk Radio. National news is covering for TV”.

As I posted on the same day as the emails, the Wall Report actually found that Canada falls on the high side of wireless pricing among the countries surveyed. Yet Crull was looking for different talking points from Bell’s media properties. As Winseck notes:

The emails begin by setting out a couple of definitional issues and then distill the two key talking points to be covered: (1) that cellphone rates in Canada have fallen in recent years and (2) that they are generally cheaper than in the US.

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August 28, 2013 21 comments News

James Moore on Wireless Lobbying: Canadians Know Dishonest Attempts to Skew Debates

Industry Minister James Moore came out swinging yesterday against the incumbent’s campaign against Verizon’s entry into the Canadian market and a letter from BCE director Anthony Fell. Moore may have been particularly angered at suggestions that the big three were disrespected after a 30 minute meeting with him when few […]

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August 14, 2013 29 comments News

Harper Stands Firm on Telecom Policy

Prime Minister Harper addressed the campaign by the Bell, Rogers, and Telus to change current Canadian wireless policy in response to the possible entry of Verizon into the market on Friday (media coverage on the issue from the Star and Globe). Harper’s complete comments: “On the telecommunications issues, let me […]

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August 10, 2013 25 comments News

Why Verizon’s Entry to Canada Would Reduce Consumer Wireless Prices

Fresh off predictions that the CRTC would not eliminate three-year contracts and that a Verizon entry into Canada was “highly unlikely“, Scotiabank’s Jeff Fan is apparently back with another report  that claims it is a myth that Verizon’s entry would lead to lower costs for consumers (I say apparently because Scotiabank declined my request for a copy of the report). The claim mirrors the talking points of the incumbent carriers, who have argued that Verizon is a high-cost carrier that will not enter the market with lower prices.

While no one knows what Verizon’s business model will be (or even if they will come), the arguments that they will not result in lower prices requires you to believe that a major new competitor will simply enter with high prices that keep the current incumbent-friendly situation largely intact. One does not need a doctorate in economics to recognize this is highly unlikely. Whether Verizon offers North America-wide roaming or other incentives to attract customers, a new entrant such as Verizon will obviously shake things up and consumers will benefit.

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August 8, 2013 20 comments News

Getting Signals Straight in the Great Wireless War of 2013

The great wireless battle of 2013 continues to unfold with Bell, Rogers, and Telus – the big three incumbents that dominate the Canadian market – calling for “fairness” in Canadian telecom policy. Ben Klass posted an exceptional response to Bell over the weekend that provided some perspective on Canadian spectrum allocation, while Peter Nowak once again took on Telus’ speaking points on the issue.  My weekly technology law column (Toronto Star version, homepage version) notes that the incumbents concerns with the policy represent a notable shift, since they described it as “thoughtful and balanced” when it was unveiled by then-Industry Minister Christian Paradis in 2012. The same companies now say the rules will create a “bloodbath” since they fear the potential entry of Verizon Communications, a U.S. telecom giant with the power to shake up the Canadian market.

While the incumbents have framed the issue around fairness and a “level playing field”, the reality is that Canadian policies are strikingly similar to those found in many other countries that have sought to encourage greater competition. Moreover, the arguments around level playing fields conveniently omit the myriad of advantages enjoyed by the incumbents.

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August 6, 2013 8 comments Columns