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Canada Splits Local Phone, DSL Services

s20451 writes "Running counter to the recent string of pro-consolidation FCC rulings in the United States, the Canadian Radio-television and Telecommunications Commission has ruled that big Telcos like Bell and Telus must offer ADSL service even when local phone service is provided by another company. Effectively this ruling splits local phone and net services, opening both up for competition and lower prices. Press release here."

28 of 445 comments (clear)

  1. Oh I could only wish... by TWX · · Score: 5, Interesting

    ... that someone here would work to implement this in the United States. It would mean that companies like Verizon and Qwest wouldn't have the stranglehold on broadband that they currently do...

    In Phoenix, we have two different Cablemodem providers, with some fairly significant overlapping coverage, but all of the independent DSL line providers for residential closed except for Qwest, and Qwest still uses Pair Gain, which kills DSL.

    --
    Do not look into laser with remaining eye.
  2. hmm by UU7 · · Score: 3, Funny

    This is quite good news. I'm glad we aren't following the US.

    I love living here :)

  3. They'll just bypass this edict... by Anonymous Coward · · Score: 5, Interesting

    ...by pricing it ridiculously high. If they get suckers who sign up, then they profit. If they don't, well they really didn't want the business anyway.

    1. Re:They'll just bypass this edict... by Zathrus · · Score: 3, Insightful

      That's fine. As long as they offer it to everyone, indiscriminately, at that price. Including internal customers.

      Anything else is price discrimination, which I'd bet is illegal in Canada.

      Offering it at absurd prices will merely kill it outright and drive customers to alternate providers and/or services. This is the entire idea behind deregulation, and if it's implemented properly it can work.

      When it's implemented improperly, however, it becomes a nightmare and causes far more problems than existed previously -- for examples on badly done public utility deregulation see California's electric power dereg or Georgia's natural gas dereg. Either one is a case study in how not to do it, and between the two they've frozen dereg pushes on power or natural gas across the US.

    2. Re:They'll just bypass this edict... by martok · · Score: 3, Informative

      Unfortunately for consumers, higher DSL prices when the local line is
      through a competitor are likely. Telus already does something similar with
      long distance and calling features. The idea is that you can get your call
      waiting, callerid, and some other features at a discount as part of a
      bundle. However, this bundle must include a long distance package. Switch
      to Sprint for example for your long distance and your optional phone service
      prices go up. They could offer similar DSL discounts for local-line
      customers.

      I suppose they see it as more of an insentive program for loyal customers
      but it makes it very difficult to switch optional services from the big
      telco such as long distance or DSL.

  4. Still no adsl-only service by tomhudson · · Score: 5, Interesting
    Unfortunately, the decision only applies if you have service from some telco - it doesn't make it possible to have ADSL-only service for those of us who use our cell phones as our only voice line.

    Should happen soon, though - you can already order internet access from cable companies w/o subscribing to their TV services.

  5. I'm an American by Gefiltefish11 · · Score: 5, Funny


    I'm an American, you insensitive clod!

    1. Re:I'm an American by Pyrosz · · Score: 5, Funny

      I'm an American

      I'm Sorry.

      --

      An optimist believes we live in the best world possible; a pessimist fears this is true.
    2. Re:I'm an American by djmurdoch · · Score: 4, Funny
  6. Ouch. by Quasar1999 · · Score: 4, Interesting

    Bell was losing hundreds of subscribers a day due to their bandwidth capping earlier this year, and now they have to provide ADSL service to really small markets where it will cost them more to upgrade the infrastructure to support ADSL than they could possibly make in revenues from customers?

    Sell your Bell stock! ;)

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
    1. Re:Ouch. by Anonymous Coward · · Score: 4, Informative

      Read the ruling again. They're not required to provide ADSL everywhere (which would entail huge upgrade costs).

      What they do need to do is provide ADSL, in areas that they already serve, to customers who use local phone service from someone else.

  7. A word of caution: by Meat+Blaster · · Score: 4, Insightful
    We split our national phone company, and it turns out the rates kept going up while the level of service went down. Apparently, there's some sort of economic force called "scale economy" that reflects the fact that having multiple companies providing the same service means a lot of costly redundancy.

    Some monopolies should be broken, but others are better off regulated. We got Unix out of AT&T, but I'm not even getting reliable Caller ID out of the local tel.

    1. Re:A word of caution: by Realistic_Dragon · · Score: 4, Insightful

      We split our national phone company, and it turns out the rates kept going up while the level of service went down.

      We split up our ADSL providers in the UK, and service went up while costs went down with the exception of the services offered by the old monopolist.

      They offer the worst service with the worst reliability at almost the highest cost - now imagine how bad it would be if they had no competition at all?

      --
      Beep beep.
  8. Two edged sword by Anonymous Coward · · Score: 5, Insightful

    Effectively this ruling splits local phone and net services, opening both up for competition and lower prices

    This also opens up the possibility of finger-pointing and blame assigning, instead of problem resolution. A couple of years ago, I had difficulty getting DSL from DirecTV DSL over BellSouth's phone lines - rather than solving my problem, the two companies used me as a message carrier in their blame war. I gave up, got a cable modem, and haven;t looked back.

  9. Does this mean...? by Anonymous Coward · · Score: 4, Interesting

    They have unbundled local service and dsl so that people don't have to pay for a land line to get high speed internet access? So a person could just subscribe to the high speed service and do his own internet telephony?

  10. land line telephone services = days are numbered by Supero100 · · Score: 5, Insightful

    Interesting - let the competition begin.

    However, we'll all be wireless before too long, and there will be no place for DSL - unless this market competition drives the overall costs down. Who wants to pay for local phone service (if you're already paying for it with your wireless plan) if you just want DSL, which would then be an additional cost to the local line?

    $30 local phone
    +$60 DSL service
    -----------------
    ($50) Digital Cable + ($45) Cable Internet

    Assumption: You already pay $35 for a cellphone.

    Sure, I'll take 125 channels as a perk for my decision making skills.

    I hope this will make it harder for my decision making skills, it's amazing how quickly you learn that you have 125 channels and nothing is ever on!

  11. Re:But, can they still compete with cable? by gregmac · · Score: 4, Informative
    From where I'm sitting, it costs about the same for Bell or Rogers.

    I've been using smaller ISPs for DSL, and they're a lot better. Bell Nexxia owns the DSL network. Sympatico 'rents' the lines/bandwidth from Nexxia to provide high-speed internet. The problem with Sympatico is that they rent a certain amount of bandwidth for a geographical area (well, really, per-CO switchbox), and if they happen to have 300 subscribers in that area, they all have to share that limited amount of bandwidth, which is why it is often very slow.

    The smaller ISPs will actually purchase 1.2mbit of bandwidth (or whatever plan you have) per customer. If they have 10 customers in that area, they get 12mbit of bandwidth (in reality, they probably maintain a ratio, but the effect is the same). As number of users increases, they get more bandwidth. As a result, my DSL is a lot faster than a friend of mine's who lives in the same building but is on Sympatico.

    --
    Speak before you think
  12. Re:Not pro-consolidation by CausticWindow · · Score: 3, Insightful

    Most people would consider it a good thing to have more than two media companies in a country as large as the US.

    Mass media equals power. Concentration of power is bad.

    Don't forget that a diverse and critical media is one of the pilars of modern democracy.

    --
    How small a thought it takes to fill a whole life
  13. Re:land line telephone services = days are numbere by shadowofdarkness · · Score: 3, Informative

    Actually I am in Canada and a friend only pays $25 CDN for DSL from Telus. And if this story is correct due to competition it may go down

  14. It's really true... by cioxx · · Score: 4, Interesting
    I read an article 2 days ago regarding Dismayed Americans who contemplate moving to Canada because the States had become too conservative and there was a quote which stood out from the rest..
    "Canada has an opportunity to define itself as a leader," Hanley said. "In some ways, it's now closer to American ideals than America is."

    And it's more evident with the recent news that we keep hearing how Canada is moving forward while the States are slipping into regress by way of draconian laws and regulations a la DMCA, Super-DMCA, Media Consolidation, etc.
    1. Re:It's really true... by Tumbleweed · · Score: 3, Insightful

      > But the biggie is socialism. Bad bad bad socialism. Socialism is authoritarian communist crap.

      No. Socialism is socialism, and communism is communism. Equating socialism with communism is typical American ignorance.

  15. Sweet! by Z0mb1eman · · Score: 5, Informative

    I've had Bell ADSL in Toronto for almost 3 years now. Setup was a pain, and I had problems with it about one year later for a few days, but other than that it's been rock solid, and very reliable performance. Not FAST - 128kbps up, 1mbps down - but I know I can get those speeds any time.

    Of course... 3 years later, I find myself paying more for less. Speed hasn't increased at all (why would it?), the price has gone up a few dollars, and they've introduced monthly transfer limits - 10GB combined upload/download, with absurd prices for extra bandwidth. What ticks me off is that they still advertise it as "unlimited".

    There are other, smaller, local DSL providers - but the speed and prices are comparable.

    Maybe this will finally help advance an industry that's been stagnant - from the consumer's point of view - for over 4 years now!

    Hehehe... oh I kill myself... I really do...
    *keeps looking for a way to afford SDSL*

    --
    ClutterMe.com - easiest site creation on the Net. Just click and type.
  16. You must not live in Canada. by dsanfte · · Score: 4, Informative

    Bell ADSL 1mbps/256k in the Ottawa area is $25/mo. In most cases, cheaper than the rest of your phone bill.

    --
    occultae nullus est respectus musicae - originally a Greek proverb
  17. Re:so... by Jucius+Maximus · · Score: 3, Insightful
    "In my area (Toronto), DSL is much faster than cable. I get 3.5Mbs/800Kbs for about CAD$50. Cable isn't an option as it is only offered one company (Rogers), and it's a horrible one at that."

    That DSL is a sweet package, but cable is not quite so 'horrible' as you describe. Rogers cable is 1.5M/256K for $45 and it works just fine. (The intro rate for the first 4 months is $25.) In the short intervals when I lived in Toronto for business purposes (about 7 months) I *never* had a problem with it except ones that were related to my own cable box. (Some assclown tampered with it.) It worked up to the advertised speeds and my bittorrent client was very happy compared to the ultra-lame 28.8 dialup at home. (There is no broadband or even 56K available at home from any provider. Stupid rural areas.)

    Clearly rogers cable is less cost effective than your DSL, but I DSL's hidden cost is that you have to pay for a phone line as well. I just rely on my cell and forego the landline. I only needed rogers long enough to scrap it at the end of getting the intro rate and then move out of TO again, but I can say for sure that it was not 'horrible.'

  18. Pay attention by raygundan · · Score: 4, Interesting

    I think you missed the gist of the ruling from the FCC in the last big mess over DSL. It is an ugly, ugly mess. They did NOT back away from regulation as you suggest-- the ruling *requires* the telephone companies to share their networks for local phone service. However, they did end the requirement for linesharing of the "last mile" for alternative DSL companies.

    If you had to regulate one or the other, which would you have picked? The one that requires the telcos to allow competitors to use their entire network to sell phone service? Or the one that allows companies with their own nationwide backbone infrastructure (like Covad) to use JUST the last-mile portion of the lines?

    I REALLY don't understand why they picked what they did. It's not pro-consolidation OR anti-regulation. It's the worst possible combination of choices. It's no wonder there is widespread objection. Although most of the "nerd news" reporting painted the decision as one that was bad for nerds (no more DSL competition)-- mainstream press widely reported it as a terrible loss for the telcos (because they have to basically do all the infrastructure for their POTS competitors). Now, if a decision screws everybody (dsl users, dsl competitors, AND the telcos)-- it can't possibly be doing any of us any good. What the hell was the FCC thinking?

  19. Re:so... by Ominous+Coward · · Score: 3, Insightful

    as a web designer, you should maybe make your files a bit smaller? It'd take less time to upload, regardless of connection, and your site would be more user-friendly, no?

    --
    Ceci n'est pas une sig.
  20. Socialist State ? by Cheffo+Jeffo · · Score: 3, Interesting

    I don't know about Canada being a socialist state (have always wondered why people would think that ... ), but I have lived in both countries (and have family living in both countries).

    The truth is that the Canadian government is happy to infringe upon the freedom of corporations in order to enhance the lives of the individual. (e.g. decrimilize pot smoking, legal gay marriage and broadband for the people).

    The US government, on the other hand, is too happy to curtail the freedom of the individual and let big corporations (and their campaign contributions) do whatever they want. (e.g. Patriot 1/2, DMCA, RIAA, MPAA, etc.)

    Cheers.

  21. Re:"Good riddance" I say! by gobbo · · Score: 4, Informative

    Can't resist a good troll...

    Taxes aren't that bad here, especially when you factor in the cost of medical insurance. (I make ~$60k/yr CDN and pay about 28% taxes without loopholes, so duh!) For some, they're better than having an equivalent position in the USA, as they discover when they move down and experience user-pays-for-everything, and they move back to Canada for economic reasons. It all depends on cost-of-living in various regions, and even the region of Canada or US one moves to, as well as the income bracket you're in. I've found that the moderately wealthy complain about taxes consistently, if they're from a somewhat socialized industrial nation.

    If I get cancer, I can still change jobs or provinces without losing my medical benefits or paying disproportionately. That's not commie, that's humane, you twit!

    One other thing... gross disparity of income leads to other extremely expensive social ills, like massive prisons, health problems, badly educated populace, violence and insecurity, drug use, despair, riots, and extreme cultural stress. It's a hidden cost, and we canucks have our share of these problems. I think it's hilarious that 'Americans' consider us socialized pinkos!

    Besides, isn't Robin Hood a hero? You presume that the rich never steal from the poor.