CALGARY and CAMPBELL RIVER, B.C. – Jim Forsyth can’t understand why Shaw Communications is so upset.
The Campbell River TV general manager was reacting to a press release sent out late Monday by Shaw Communications where the second-largest MSO in the country, and largest overall Canadian digital TV supplier said it “would pursue all legal remedies against Campbell River TV to stop the fraudulent practice of directly or indirectly acquiring Digital Cable Terminals from designated Shaw retail outlets,” says the press release.
“Shaw has learned that Campbell River TV is once again directing its customers to purchase Digital Cable Terminals from retail outlets in Courtney (sic) knowing that these devices are made available exclusively for Shaw customers.”
Courtenay, a Shaw system, is a 45 km drive down the Island Highway from Campbell River. Both communities are on the interior coast of Vancouver Island.
"We provide Digital Cable Terminals to our customers at a subsidized price. They are intended solely for the use and benefit of our customers. What Campbell River is doing is wrong and they know it. As this is the third such fraudulent act against Shaw we will pursue all avenues to ensure this practice comes to an end," said Peter Bissonnette, president of Shaw Communications in the release.
Both companies run Motorola cable systems, so the boxes used in each system are identical and will run in either system and yes, says Forsyth, some customers are purchasing Moto boxes in Courtenay and bringing them back to Campbell River to use in his cable co-op’s system.
However, this evening’s press release (late afternoon in B.C.) was the first he’d heard of Shaw’s anger and Forsyth, reached late Monday by www.cartt.ca, said he’s willing to work with the big MSO to mitigate the problem, but much of the onus for this falls on Shaw’s shoulders.
“(Shaw) should tell Future Shop and the other big box stores the only people they’re allowed to sell to are Shaw Cable customers… but I think they’ll sell to anybody.”
Forsyth also wonders just why an MSO the size of Shaw (“they lose or gain as many customers in a month as we have (in total),” he said) is apparently so angry with Campbell River TV.
“We’re pretty small here in Campbell River,” Forsyth added. “We’ve got about 1,000 digital cable customers and a good half of them rent. (The company has approximately 10,000 customers.)
“The other half purchase from us or from neighbours or friends – or we don’t know where they’re coming from… The boxes are not readily available from the supplier,” as Motorola’s priorities lie with its bigger customers. CRTV gets most of the set tops it distributes to customers in the used market.
So, said Forsyth, “we tell (customers) the boxes are available to purchase in the big box stores and it’s up to them if they want to buy them.”
However, Forsyth thinks “the problem is more than just digital cable boxes. “I think we’re a thorn in (Shaw’s) side because we have the lowest cable rates in the country and have more product on basic cable than they do,” he said.
Campbell River TV customers can get a huge basic tier of channels – 53 – for an astonishingly low price of $14.33 a month. Taking its analog tier, bumping up to 62 channels, moves the price to
$22 a month. In Shaw’s Courtenay system, customers have to buy basic and three tiers to get to that many channels and while pricing in that community wasn’t available on the Shaw web site, we’re betting it’s more than $22.
“I think this is difficult for them in the Comox valley,” added Forsyth.
This isn’t the first time CRTV and Shaw have tangled as early in 2004, CRTV was forced in a lawsuit to pay Shaw $38,000.
CRTV then admitted that the year prior to the decision it illegally used Star Choice consumer equipment to receive and send out three Seattle broadcast signals to its cable customers due to problems with the Shaw-owned microwave system at the time that normally delivers the signals.
Overall, this is a rather touchy situation for Forsyth and the CRTV co-op since the operator still relies on Shaw for the microwave feed of broadcast signals and on Shaw-owned Cancom for delivery of other distant TV signals.
“They are competition (through Star Choice) and a gatekeeper,” added Forsyth. “(But) I think we can work with Shaw for a solution to this problem.”
An attempt to contact a Shaw official for comment Monday evening was unsuccessful.
