Bill Campbell: Competitive broadband Internet access is at a crucial crossroads

By Bill Campbell

A month ago, a coalition of over 40 Canadian Internet service providers launched the Campaign for Competitive Broadband. The campaign’s aim is to rally the support of businesses and consumers to ensure that fair and equitable access to facilities and networks partly controlled by incumbent telecom companies like Bell and Telus continues. Without this access, independent ISPs face a critical test of their ability to service customers, which, in some cases, could eventually lead to their collapse. This will ultimately impact the choice Canadians will have in ISPs and the quality of service they receive.

Thus far, the campaign has helped generate close to 70,000 letters from concerned Canadians to the federal government. A staggering amount given the time frame, and a clear indication that this issue resonates with Canadians from coast to coast.

At the core of this issue is a decision by the Canadian Radio-television Telecommunications Commission that will allow Bell and Telus to have complete control of the telecommunications network that was built over decades supported by federal rules which gave these companies monopolies over telephone service. This was effectively a subsidy by taxpayers, guaranteeing that these companies would be profitable, so that the public could benefit from having telecommunications networks built across the country. Once these networks were built, and the telephone companies were very well established, the federal government put in rules to help create healthy competition by allowing independent Canadian ISPs to compete in the marketplace by assuring equitable access to the network at fair and reasonable market rates.

All competitive providers, including my own Vancouver-based company, Skyway West, must make use of local network facilities controlled by the large national incumbents: Telus and Bell. Without the CRTC mandating access to those facilities on fair, cost-based terms, customers are likely to suffer from a lack of competition and innovation for their important broadband services because the incumbents will be empowered to prevent competitors from reaching the customer. Equitable access also means that the telephone companies must deliver service speeds to independent ISPs that match their retail offerings—something which Telus and Bell are refusing in spite of a CRTC order to do so.

Businesses choose independent ISPs to deliver e-mail, Internet access, VPN, Voice over Internet Protocol, and other services. Internet-based businesses depend on independents to design their networks to support innovative services like off-site backup, cloud computing, Web hosting, and software as a service. Many are located in small communities, support local organizations, and employ local people.

Independent ISPs attract business customers by making their services more reliable than Telus or Bell and by innovating more quickly. They earn loyal customers by providing personal, localized service that is delivered and maintained by skilled technicians. Many bundle VoIP and offer video-conferencing capabilities, helping people save money and stay connected with loved ones. They will soon begin distributing video content from around the world.

If the federal government allows the decision to stand, Bell and Telus will control the network, and there will be little incentive for them to provide independent ISPs with the fair and equitable access we require to service our customers. And why would they? Without us in the market, competition will cease and they can effectively raise the price for broadband access, while decreasing overall service levels, to consumers and businesses alike.

The Canadian ISP market is dominated by the likes of Telus in the west and Bell in the east, and their collective track record in keeping the customer top of mind is spotty at best. Independents rightly see themselves as the alternative conscience of the Internet, fighting to ensure that it maintains its origins as an open and neutral technology. Without independent ISPs to challenge the dominant players, competition and service will suffer, and the Internet experience as we know it will be subject to the absolute controls of these dominant corporations.

The coalition believes that the CRTC has made their initial decision without understanding the impact it will have on ISPs, Canadian consumers, businesses, and the economy overall. We’re asking the federal government to review and overturn this decision. And we’re asking Canadians to join our Campaign for Competitive Broadband by visiting our consumer site or business site to let the federal government know they want competition in the broadband market.

Bill Campbell is the Western Canada board member for the Canadian Association of Internet Providers and the president of Skyway West Business Internet Services, a Vancouver-based ISP.

Comments

seth
Forget those fancy wine soaked lunches and dinners for the CRTC. You can't beat Big Telecom at that game.

You might try throwing a few campaign donations and fancy lunches at provincial, municipal and other public power officials and get them to make their smart meter communication fiber channels conform to your needs. Low bandwidth smart meters leave a lot of no cost spare capacity available that you can use for internet, VOIP, mobile and IPTV applications.

You boys need to study up on how independent insurance companies outfoxed Humongous Bank and got the Harpo to block Humongous from the insurance business.

A lot of insurance agents belong to the same churches attended regularly by Harpo and cabinet and it is there that the insurance companies through their agents concentrated their lobbying efforts. A little religion wouldn't hurt you and who knows it might work.


seth
 
Jim Johannsson
Jim Johannsson here from TELUS. The CRTC decision to which Mr. Campbell refers (Telecom Decision 2008-118) relates to Ethernet data services provided to very large business customers, not individuals and small businesses. The “Campaign for Competitive Broadband” is a public relations ploy created by national business services provider MTS Allstream, which does not even provide Internet access to consumers and small businesses outside Manitoba. MTS Allstream appears to be trying to confuse the public into supporting its appeal of the Ethernet decision by making misleading claims, such as the one about consumer Internet prices going up. What the Ethernet decision was really about was the CRTC ruling that the kinds of network facilities in question – fibre optic business networks in big cities – are economically feasible to replicate (and they have been replicated), which means that it is no longer necessary for the CRTC to regulate the prices that telephone companies can charge for access to them. Access to the copper loops that independent ISPs use (and, incidentally, to the cable TV lines that for some reason they choose not to use) to provide Internet access to homes and small businesses remains regulated. However, the bigger issue is whether companies like TELUS, which is risking enormous amounts of its shareholders’ money to build the broadband networks of the future, should be forced to share them with competitors (who bear next to no investment risk) at regulated rates, or whether market rates ought to prevail. The CRTC has concluded that market rates ought to prevail, and we agree.
 
james y
CRTC is not working for the canadian people. Check this video out on the australian NBN.

 
Graham Fletcher
Jim from Telus will know that part of the Decision contemplated affects the local loop. In our Part VII submission to the CRTC Telus argued that we could not put a DSLAM outside a local street cabinet (the cabinet on the street where the local last fee feet wire from the residence meets the new fibre Telus installed) and use these "regulated" rented local loops from the home or business through the street cabinet to our gear, so that we could provide an alternate DSL service. Telus cited crosstalk as a reason. Yet where competitor DSL equipment currently exists - in the central office or wire centre - and is attached from that wire centre through these street cabinets to the customer premises, is EXACTLY the same configuration we argued for in our submission to the CRTC. Telus would like it, apparently, both ways. If Telus rebuttal to our submission that crosstalk (interference) exists at the street cabinet, then it should also be interfering with existing setups. It doesn't.

In addition, in building out their network, Telus uses the same argument that Jim does - that they built their new next generation network with "their" money.....

Well....kinda'. The money spent was earned primarily from either a competitive market - the Internet and cell phone market - and a regulated market - the phone system and services sold to third party competitors. In other words, the CRTC and the Government of Canada protected the Telus' and Bell' profit, which is fine because in a large geographic, small population country, this works. BUT it is a stretch for Telus to talk about "their" money. As an Incumbent, regulated provider, Telus and Bell accepted the right to a guaranteed profit, but also to guaranty competitor access to telecom infrastructure to promote competition. WE pay higher rates to Telus and Bell so they can afford to build these new networks with "their" money.

The point of having a cake is to eat it. However, if the rules are that in order to have the majority of the cake, you are required to share some of the crumbs, then those are the rules. Telus wants all of the cake, and is fighting hard to get it. Yet it was not Telus or Shaw or Bell that started the Internet in Canada. It was the small competitors.

Jim-from-Telus tells only part of the story.
 
Scott Lockey
Jim Johannsson is actually incorrect - MTS Allstream does provide internet service outside of Manitoba, not only to Enterprise business but also to small and medium business too.
 
 
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Bill Campbell is the president of Skyway West Business Internet Services.
Bill Campbell is the president of Skyway West Business Internet Services.