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Bell Wants to Dump Third-Party ISP's Entirely

Posted by ScuttleMonkey on Fri Apr 04, 2008 03:46 PM
from the taking-their-cable-and-going-home dept.
phorm writes "Not only is Bell interfering with third-party traffic, but — according to CBC — they want third-party ISP and phone carriers off their network entirely. Bell is lobbying to have lease-conditions on their networks removed, stating that enough competition exists that they should not longer be required to lease infrastructure to third-parties. Perhaps throttling is just the beginning?"
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  • to the Sherman Anti Trust Act in Canada? Not that it has helped much in the US lately.
    • I hit submit too soon. I meant to ask "Is there any equlvalent to the Sherman Anti Trust act?"
    • Re: (Score:2, Interesting)

      I'd be surprised if the Bells in the USA didn't start making this same argument here soon. After all, they have to compete with cable and satellite. Why would anyone need more choices than that?
      • Yeah right; america has always been insane on government regulation of telecoms. Yeah they get away with all sorts of abuse, but they do not own their own networks; they operate completely at the mercy of congress and the FCC, and there's no way that they'll let them just cancel the terms of their lease contracts that they don't like.
        • I know, government regulation of telecoms is so crazy considering that all we taxpayers have done is pay for much of the infrastructure, granted them monopolies, and gave up our property for their right of way. I mean, we should just cancel all our deals with them and let them do whatever they like.

          I'd love to see a couple dozen telephone lines coming to my house so I can lease from the company I like, rather than having only one. And I'd also like a couple dozen sewer lines, water lines, and road networks I can choose from, too. As well as competing fire departments, police departments, and sanitation.

          I mean, why should I pay for garbage removal when I have no sense of smell. My property, my rules. If I don't want to pay for fire protection, I shouldn't have to. If my house burns down, who else could that possibly hurt?

          All these government regulations of private industry do nothing but hurt us. Competition will always ensure we have the best possible services available, and there is nothing government can do that corporations can't do better.

          The scary thing is, there are people who actually believe that crap, and want to force those beliefs on us rather than just opting out of the system and making one of their own.
          • Re: (Score:3, Insightful)

            You're going to be modded up by people who don't get to your last sentence o_o Also I was using "insane" as one of those cool kid words, not like how you 4-digit-uid geezers think it means.. highly regulated not unfairly regulated
          • by Kjella (173770) on Friday April 04 2008, @06:06PM (#22968944) Homepage
            The thing is that while some things are very effective to run as a monopoly, it's very difficult to make a monopoly run effectively. The drive for margins tend to be lacking throughout the organization, and everyone is bloating their own needs to get a more comfortable budget. Ultimately the politicians granting money try to cut costs but it's like working for a company where only the CEO wants to save money. Also you have issues with workers intentionally slowing down and creating a backlog, it's very easy to lose to passive resistance because usually the solution is to recieve more money, not that the department is laid off because the company is bleeding.

            They try various methods like regulation, bids and other things but none of them really work that well. Take bids for example, they usually deliver the minimum of the service requirements, the way the operation is driven is kept as a competitive secret and it's usually hard to get real competition against the incumbent that's already got the staff, the routines and the equipment in place. Regulation is trying to keep the squeeze on the company to simulate the market pressure, but it's really difficult to know how hard to squeeze because the regulated company will undoubtably say you're trying to squeeze blood from a rock. Set service requirements and you'll certainly get a too high claim of how much it'll cost to deliver and so on.

            In the end, I understand perfectly well why people look to many of those poorly handled monopolies and say "Man, if only we could get private companies competing for that". I've only dealt closely with one such monopoly and there were simply so many excesses, the great location, the great offices, the fancy equipment in EVERY meeting room, the free beverages and snacks, the great cafeteria and a million other small things... it's all those things that show they got money to spend, and don't really care what the bill adds up to. They just need something that legitimately can be expensed as business cost, and it's fine. They're still on public salary levels and they can't raise those much, but it's no doubt the money was loose and the work pressure low...
            • Re: (Score:3, Interesting)

              Leave the country. Start your own. Go live in a cave or camp out in a national forest. I know some people who've opted out of the system and pay no taxes.

              How would I opt out of a lassez-faire free market system where all the real estate was owned?
            • Its take it or move to BFE Midwest and live like a fricken hermit.

              I'm curious about something: What does 'BFE Midwest' stand for, or mean?

              I moved out to the Minneapolis-St Paul area a couple years ago, and although I've always met great folks wherever I've, these Minnesotans are the nicest bunch of them all. Helpful, you can talk to young and old alike out in public without getting paranoid or 'WTF' reactions that are so common elsewhere in the States. And the State, itself, has this sort of conservative, yet very progressive 'tilt' to it. And of course a bunch of the

                • Re: (Score:3, Informative)

                  Thank you. I hate having to point this out to libertarian types over and over and over again. They seem to want all of the benefits of society without paying the costs.
                  Gee, just like the communists...
        • Just like the government wouldn't give the telecoms billions of dollars in subsidies to upgrade their networks and then allow them to continue to raise rates and delay those same upgrades while spending the money on, apparently, hookers and blow? Congress works for the lobbyists (including telecom lobbyists), not for the people. Same with the FCC, which has spend the last several years either rolling back or just ignoring various regulations intended to keep these companies from having too much power.
          • Re: (Score:3, Informative)

            The deal here in Hoser-Ville, is that the ISP's lease the bandwidth from Bell. They also pay around 20$ per user to bell. So I dont see how bell is loosing out here at all. If the independant wants more, they pay for it. It really dosent make any sense.
      • I'd be surprised if the Bells in the USA didn't start making this same argument here soon. After all, they have to compete with cable and satellite. Why would anyone need more choices than that?

        Didn't they (read: large corporate internet/content providers like Qwest and Charter) already do this, in reverse? I mean, wasn't that one of their major arguments AGAINST opening the Cable networks to competition? "Why should we allow you to get someone else's pipe on your cable modem? You already could just get DSL or Satellite!"

        • Re: (Score:3, Interesting)

          the other point is in Canada and the US, the cable-co and the Tele-co's don't really compete that much, they seem to do a dance around the borders but don't really enter the vital territory. The third party ISP on the other hand do compete when Bell-CA started filtering, they chopped the legs out from under the 3rd parties by eliminating one of the few ways they could offer a substantially better service by actualy delivering what was promised in the ads.
    • Re: (Score:2, Informative)

      Canada has the Competition Act and also a common law framework that provides the legal basis.
  • Throttling is at the other end of the pipe, where they have you by the short and curlies. This is the latest salvo in another volley of lawsuits. This is the beginning of the end of teh internets. Soon you will have a public utility running a subsidized feed of advertisements and surveilance kit to your boxen, call it TV++.

    Whatever we get, it is double-plus ungood. It is increasingly clear to me that the www, at least, has been dead for about a decade.
  • I've thought for quite a while that forcing telecoms to lease bandwidth to 3rd party providers has been a bad idea. Look at Qwest's leasing options with MSN. MSN has a contract that states they MUST be the lowest-priced Qwest-backed ISP! This is, of course, only BAD for competition. It's just supporting the huge MS monopoly.
      • Actually, Bell "owns" the (last mile) wires... emphasis on the '"'. The wires were installed by Bell and paid for by Canadian Taxpayers. Bell is forced to lease them because they don't really belong to Bell in the first place. They just happen to be the government subsidized company that was hired to install and manage the infrastructure. Now they want to act like a private company without giving up their government-given priveleges.
  • Can't play well, eh? Dump them-- DSL and landlines-- and go to VoIP. And take Rogers with.

    Truly: they don't understand the Internet, only monopolistic revenues. They're never spanked, so hit them in the wallet, where they'll feel it as that's where their hearts and souls are.
  • Google is so happy about all that openness. That they keep talking about. Why not just come out and admit that they took a beating? Now that Verizon got the spectrum (and doesn't have to fear last-mile competition) they are trying to consolidate all access. And Google is trying to claim that possession of the spectrum doesn't give them complete control. Right.... It's only a matter of time until the Bells re-consolidate. Google loss was a huge loss for everyone. No matter how many "don't panic, we a
    • Google still had a small victory in that loss. Part of the spectrum required completely open access to all third parties. Now whether that is done voluntarily or through a lawsuit or two remains to be seen.
      • has beePosession is 9/10 of the law. A "lawsuit or two" can be dragged out for years until the market is manipulated to the point where paying the damages for the past instances of non-compliance will become irrelevant -- a monopoly will have been established.
  • ... but they put up that big barricade to make it impossible. They tested it quite thoroughly by having Cletus attempt to circumvent the anti-dumping device and he was unable to. It's foolproof.s

    OK, so an early flaw was that you could ram the barricade with your car allowing you to dump a silo full of pig manure, but they learned their lesson and fixed that.

    So good luck Bell with dumping your "third-party ISPs" (whatever that is). There is simply no way you will be able to.
  • It didn't work in the US, there seem to be problems in the UK, and now Canada. Retrofitting open access into networks and companies that weren't built for it just doesn't work politically or financially, because the telcos always find ways to screw it up (aka loopholes, regulatory capture).

    If we want an open access infrastructure, I am forced to conclude that we need to build it.
    • by rpp3po (641313) on Friday April 04 2008, @04:14PM (#22968014)

      It didn't work in the US...
      Of course it works! For example, there is a very healthy and competitive DSL resale market in Germany. It is protected by strong anti monopolistic government regulation and works out quite well. Needless to say that you need something else than a lobbyist infiltrated FCC to accomplish something like that.
    • Re: (Score:3, Interesting)

      The question is - how do you build an open-access infrastructure without having to completely rip and replace all the last mile infrastructure in the United States and Canada? Not that I doubt its possible, but from a business standpoint, they like the current infrastructure. They make money no matter what - either by charging competitors to allow them access to the system or by charging customers. And they don't have to invest capital in updating the network (which everyone but Verizon seems to be avoid
      • Re: (Score:3, Informative)

        I work for SaskTel [sasktel.com], a smallish telco in Canada, but still an ILEC in Sasktchewan. Here's how our network works:
        • Our landline switches have access points for third party long distance switches interconnecting with ours. This allows for long distance competition.
        • Our landline switches also have access points for third party telephone company switches, for example Shaw [www.shaw.ca] has telephone service in my city. Rogers and SaskTel mobility also provice local service.
        • Although we don't have any, third party unbundled loo
  • The "infrastructure" business seems like a hell of a niche to get in to. Rather then being a provider yourself, you provide the copper/fiber/whatever and lease it out to whoever. If you agree to a few monopoly stipulations (like not competing with your third party vendors), you could probably suck on the government tit for generations to come. Someone get me a VC on the line, I think I can take over Manhattan by Monday.
  • VoIP,etc,etc, (Score:3, Interesting)

    by loconet (415875) on Friday April 04 2008, @04:20PM (#22968090) Homepage
    I can't believe they could actually get away with this. There goes VoIP. This basically leaves us with Rogers and Bell to choose from. Period. Since Bell is still mainly a telephone company, I can't imagine Bell being too happy with customers switching to VoIP providers either (same with Rogers, they also offer a home phone service. ). If they can get away with throttling their internet provider competition or flat out lobby against their existence, what's to say they won't plain out choke out VoIP as well? Or Skype? Or "Youtube" - because they "compete" against their sat service. Where does this stop.

    We, citizens, need to light a fire up the government's ass to step in on this one.
  • by MightyMartian (840721) on Friday April 04 2008, @04:24PM (#22968134) Journal
    If I was in government, I'd say yes to Bell, but with the caveat that they would now to have rent the right-of-ways they were effectively given all those years ago.

    The Telcos have forgotten that their networks, both in Canada and the US, were built, one way or the other, with the good graces and money of the taxpayers. Those right-of-ways were essentially a gift, with the understanding that they would be used to make communications near-universal.

    If the Telcos want to end that universality, then I think their automatic right to those right-of-ways should be removed. We can either go to an open bid, or we can do annual leases, the rates dependent on how nicely the Telcos behave. If they don't like it, they can go buy their own right-of-ways. Might be a bit problematic in major cities, but oh well, I don't think these bastards deserve an ounce of consideration any more.
  • by Seek_1 (639070) on Friday April 04 2008, @04:38PM (#22968298)
    Would someone please tell me where I can an ISP in Ottawa (Canada's Capital of all places) that doesn't have a downstream cap, or throttling/traffic shaping and has (god formid) decent customer service.

    I'm looking for a new ISP because just this week I got a notice from Rogers that they've decided to change the definition of 'unlimited' to 95Gigs + $1.50/Gig after that. While I understand that Rogers is utterly incompetent, once my services and billing were properly set up, they required very little maintenance once they were up and running (it took me almost two years for their 'system' to properly bill me automatically and send me a paper invoice). Because of this I haven't had a reason to switch. ***Attention Shareholders*** Now I do.

    I've been looking at CIA.com (www.cia.com) recently as they come highly recommended, but I'm waiting until I can get some more concrete numbers before signing up.

    And yes, I will be cancelling my Rogers account now (After nine years), and have no plans to switch over to Bell.
  • by kwandar (733439) on Friday April 04 2008, @05:11PM (#22968562)

    and the sooner they pay back the differential between the monopolistic prices they received to subsidize their phone infrastructure for 100 years, and competitive prices, the better.

    Those funds can be used to subsidize third party "last mile" networks, if Bell Canada is so suddenly keen on bringing competition to the market! And while we are at it, the cable carriers can do the same thing (albiet for a shorter time period). Lets see how they like it when there is more than a duopoly involved in the "last mile"

  • by mrobinso (456353) on Friday April 04 2008, @05:49PM (#22968798) Homepage
    The most disconcerting message in the story is the interview Nowak had with Paul Geist. In it is mention of the fact that Minister of Industry Jim Prentice is AWOL on the issue. I mean, who would dare ask the Minister in charge of investigating anti-competitive offences - and they are serious offences - to look into what has to be one of the worst companies to do business with in Canada. I won't even mention that one of the most recent former Ministers of Industry had just been previously employed as ::cough:: head of regulatory affairs at ::cough:: Bell Canada.

    While you might think that the CRTC is an old antequated fossil that needs to be put out of its misery, the Minsitry of Industry is on life support. What's left of it is being run by gutless bureaucrats more interested in their career path in private business post-federal brothel than protecting Canadians from scheming corporate predators, marketing fraud, advertising scams, artificially high gas prices, the list goes on and on...

    Bell Canada is the least of our worries.

    • by PFAK (524350) * on Friday April 04 2008, @03:54PM (#22967824)
      Why shouldn't they be forced by the government to lease their last mile? The infrastructure that Bell uses for delivery of their service was paid for by Canadian tax dollars, and supported by a government provided monopoly.
      • by ancientt (569920) <ancientt@yahoo.com> on Friday April 04 2008, @04:03PM (#22967928) Homepage Journal

        Essentially the tax payers are the ones who created and funded the company. It has served its purpose.

        As with any government agency, once the services it provided are done by private industry, it is time to cut out the public funding. The government should sell back all the hardware to all the companies involved and use the funds generated to cut taxes.

        Doubtless this seems unfair to Bell, but the government was unfair to everyone when it created an intentional monopoly. When they whine, and they will whine, they should be told to join the competition that they felt was healthy enough.

        • by MightyMartian (840721) on Friday April 04 2008, @04:27PM (#22968176) Journal
          I think, in those early days, it was a wise investment on the part of government. Within a few decades, phones reached just about every house in the US and Canada. The government (really the people) knew that no company could raise the capital required for such a massive infrastructure program, so they popped in the right-of-ways and the like and granted the companies an effective monopoly, but with some rather important understandings.

          What's happened is that the telcos have forgotten that the taxpayer subsidized and continues to subsidize their networks.
      • by Gat0r30y (957941) on Friday April 04 2008, @04:14PM (#22968022) Homepage Journal

        Why shouldn't they be forced by the government to lease their last mile?
        well that totally ruins there plans to monopolize the last mile, jack prices through the roof and make a metric (its Canada) assload of cash, all at the taxpayers expense. duh.
          • Re: (Score:3, Insightful)

            Wouldn't that be the last 1.6 kilometers?

            Nah, Canadians are bilingual when it comes to measurement systems.
      • by Sentry21 (8183) on Friday April 04 2008, @06:01PM (#22968888) Journal
        The impression I got from Bell's argument is something like this:

        What they said: The market was opened up for competition, but now there's enough competition so we shouldn't have to still hold their hands.

        What they mean: People are competing with us, despite the fact that we own the network and fuck around so badly with our wholesale clients that their problems never get solved in a reasonable amoutn of time, and instead of fixing our ludicrously broken processes or continuing to lose out to people who use our network better than we do, we want our monopoly back.

        Bell does have a point; a lot of companies (like one ISP I worked for for almost a week after my training ended) just keep reselling Bell's and Telus's services (despite getting dicked around all the time); they have essentially the same prices, plans, and service as Bell, but it takes longer to get anything done because you're one more step removed from the technicians.

        An ISP a friend worked for, however, took the other route. After selling Bell's service in Montreal, they hired my friend to do their ADSL rollout. They bought their own bandwidth, installed their own DSLAMs, and started moving customers over, and you know what? Paying for bandwidth directly was cheaper for them than leasing an essentially unlimited line from Bell.

        As a result, they started moving all of their customers over from Bell's per-customer charges to their third-party's per-megabit rates, and they're saving tons of money - enough to use to buy the new ADSL2+ equipment and move even more people over.

        The lesson is: Don't wait for Bell to stop being dicks; do things right yourself and it pays off.
        • Re: (Score:3, Interesting)

          An ISP a friend worked for, however, took the other route. After selling Bell's service in Montreal, they hired my friend to do their ADSL rollout. They bought their own bandwidth, installed their own DSLAMs,
          Who is that (which ISP)???
    • by sarhjinian (94086) on Friday April 04 2008, @04:13PM (#22968010)
      Here's the issue: Bell and the other Stentor consortium members were essentially granted a monopoly--and were given government support--to build the telecommunications network in Canada.

      When high-speed internet came to the forefront, Bell utterly failed to deliver a competitive product and was basically going to fall back a the "gentleman's agreement" with the cable- and phone companies that would have allowed a maximum amount of profit for the providers with a minimum amount of service on lines that we, the consumer, subsidized.

      The CRTC, deciding that the existing Bell/Stentor cartel had done little except gouge customers and that forcing leased lines had done wonders for the long-distance market, hit Bell with the same thing. The result is that Canada has one of the best broadband adoption rates in the world, despite a fairly unfriendly geography.

      Yes, they own the last mile, yes, and pay for it, but it's not like they didn't get a free ride from the CRTC and the Canadian public for years. Revoking this will result in a broadband market that looks like the Canadian wireless market: something like the "gentleman's agreement" mentioned above that keeps prices uncompetitively high.

      On that note, I personally think the CRTC hasn't gone far enough: they need to force the incumbent providers to open their wireless networks ("System Access fee" my ass) as well. The wireless market in this country is abysmal (as in "worse than the US, by a large margin") and the reason is that the incumbents maintain a cartel and buy or destroy competition.

      Heck, Canadian content rules have actually kept foriegn competition out of the market, which means that all Bell et al have had to compete with are small fish and bottom-feeders, which is what Bell wants to squash. I don't like T-Mobile or Verizon much, but I'd like to see them slap some respect into Bell, Telus and Rogers
      • Re: (Score:3, Informative)

        There is no government imposed system access fee. Every provider in Canada that I've seen charges it, and nobody has to. It was originally intorduced to help expand the network but that day has passed, and now there are no requirements for it, but that didn't stop anybody (including Rogers) from charging it.
        • Re: (Score:3, Informative)

          You're correct. The problem with the System Access fee is that the providers and their resellers have implicitly (and occasionally explicitly) said that it's government mandated. The CRTC has expressed some interest in forcing them to clarify it, which, of course, they're fighting.

          I've personally had a "discussion" with a Rogers Enterprise Wireless rep (and his sales engineer) on this point when negotiating our contract. He and several of his colleagues were under the impression that it was CRTC-manda
    • Re: (Score:3, Insightful)

      However, I don't think that the government should force them to lease infrastructure to competitors.

      When the government gives businesses billions of dollars, taxpayer dollars, in subsidies the government better attach strings to the money. Such as open access. And actually building the infrastructure the money was given to them to do.

      Falcon
    • by KillerBob (217953) on Friday April 04 2008, @05:02PM (#22968504)
      I'm going to give you the benefit of the doubt, and assume that you genuinely don't know what's wrong with your suggestion.

      There's plenty of competition in high speed internet, but there is *NOT* plenty of competition in terms of technologies in use. Bell Nexxia owns 100% of the copper to the house. Likewise for cable TV lines... in Ottawa, where I live, for example, 100% of the cable TV lines (and that includes cable Internet) are owned by either Rogers (on the Ontario side), or Videotron (on the Quebec side). There is exactly one provider of wireless Internet services.

      That means that if Bell's argument is accepted by the CRTC, the Ottawa market will go from having about 50 options for high speed Internet to having exactly 3, each with a monopoly on their respective technology.

      To make matters worse, not one of those three providers offers a service that is suitable for technologies like VPN, or running your own server. All three of them filter access on those ports, and won't allow their users any incoming connections. It's also in their service agreements that they can terminate your service if they catch you running a server.

      In other words... not only will the variety of consumer-level services be cut down to 3 monopolies, the quality of services available to consumers will fall into the shitter. It's already fairly well known that if you need to run a VPN, you don't go with Bell, Rogers, or Storm in this city... you go with one of the 3rd parties that's leasing time through one of those three, to get unfettered access. If you want decent access to the Internet, you have to buy a corporate connection from these people... Bell's cheapest runs about $80/month, Rogers is the same, and Storm is $195/month. Just for the privilege of actually having a connection to the 'net which you can use for more than surfing and e-mail.

      What's more, tax dollars paid for the establishment of Bell Nexxia. We paid for that copper which they own. So no. They should absolutely be required to continue leasing service. Actually, the Government should acquire Bell Nexxia and turn it back into a crown corporation, and make BCE, the phone/Internet company, lease time from Nexxia as well.
    • Re: (Score:3, Informative)

      Ma Bell is alive and well, and living under the name "AT&T" these days, which is technically what she was known as before the whole "Ma Bell" thing...but the current company is technically SBC (Southwest Bell), which happened to be the nastiest and most voracious of the little bells. They switched their name to AT&T inc after they bought the "original" AT&T co which was the chunk of the original company that was allowed to keep the name after the divesture.

      (I know the preceding paragraph is near
      • Re:Hmmmmm..... (Score:4, Insightful)

        by Anonymous Coward on Friday April 04 2008, @04:52PM (#22968434)
        Except this is Bell Canada we're talking about, which was split off from the whole bunch about 60 or 70 years ago. They have nothing to do with AT&T or any of the Bells you mention, except that they share a common name, and that's because they were all incorporated by Alexander Graham Bell.