VIDEOTRON’S ROBERT DÉPATIE RECENTLY shared with readers his view of competition in today’s market (See "A new phone plan from Ma Bell", www.cartt.ca, February 1, 2006).
In his world, competition only works when his company is free to price and market services as it wishes while his main competitors (the phone companies) remain subject to artificial constraints. Strangely, Mr. Dépatie seems to actually consider these constraints to be “special favours for Bell”; favours that he says no cable company has ever received. He is at least half right.
No cable company ever needed regulatory permission to change prices or service features on anything other than their basic service, and even that was deregulated soon after satellite TV arrived. No cable company ever faced a one year prohibition on contacting its customers who switch to a competitor. No cable company was ever prevented from pricing differently in different regions of its territory, or restricted from introducing promotions for its services. No cable company has ever had to receive prior approval for bundles of its multiple services like internet, cable and telephone.
Yet all of these restrictions apply to the local telephone services of established phone companies. Special favours? For whom?
These are antiquated regulatory rules unprecedented in modern economies. Neither party needs nor deserves artificial protection from market forces. And, it is the consumer who pays as choice is limited and innovation slows. It is competition that delivers real value and choice to consumers and we welcome it. In fact, competition between companies like Videotron and Bell is very much alive and well – witness Videotron’s ability to sign up more than 160,000 local telephone customers in 2005.
That is why we and so many others, including customers, have called for major telecommunications policy change in this country. Without it, innovation and investment will be stifled in this industry that has become so vital to our everyday lives and an engine of growth for our economy.
Perhaps self-interest best explains why cable companies like Videotron are pleading for the status quo – right now they are well protected from competition and wish to remain so, no matter what the cost to customers – or the country.
Mirko Bibic
Chief Regulatory Affairs
Bell Canada
