Pity the Poor (Formerly) Regulated Monopoly?

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Pity the Poor (Formerly) Regulated Monopoly?

Postby jon » Wed Jun 15, 2016 4:32 pm

Of late, I've heard a wide range of comments about how the former Regulated Monopolies in Canada should be treated these days. From the feeling that Taxpayers paid for their infrastructure, to the other extreme: we owe them a huge debt for ponying up the money to build the infrastructure, and we are cheating them out of their investment by allowing other players to use that infrastructure.

Phone companies created a network of copper wires to your home, cable companies did the same with coax. Both are being or have been upgraded to fibre optic cable.

The CRTC, meanwhile, has now forced those companies to share their networks with competitors.
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Re: Pity the Poor (Formerly) Regulated Monopoly?

Postby tuned » Wed Jun 15, 2016 4:37 pm

When you build a house or an apartment YOU pay for the cost of wiring the building. Those wires are not owned or paid for by any of the rip off artists that fleece Canadians 24/7. The wires that they do own are placed in most cases on PUBLIC property.
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Re: Pity the Poor (Formerly) Regulated Monopoly?

Postby PMC » Wed Jun 15, 2016 4:53 pm

jon wrote:The CRTC, meanwhile, has now forced those companies to share their networks with competitors.


The term `forced' I think is excessive. It comes down to dollars and a sense of business management.. as example if I create a phone exchange that is free, all others could go out of business, and that is not good for the people or the economy. The free would not last either, and then I can hire all back, and have my very own game of monoply lol :)

Many people don't understand the technology, and then can't decide on what is good or bad, because the details are meaningless. Many see it for the instant gratification and make no effort to understand it.

Good news is, there is a new minister `Joly' to over look the CRTC.
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Re: Pity the Poor (Formerly) Regulated Monopoly?

Postby Toomas Losin » Thu Jun 16, 2016 6:00 pm

PMC wrote:
jon wrote:The CRTC, meanwhile, has now forced those companies to share their networks with competitors.


The term `forced' I think is excessive.

It should be clarified that the incumbants aren't being "forced" to do this at a loss. They still make a profit with wholesale DSL.
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Re: Pity the Poor (Formerly) Regulated Monopoly?

Postby jon » Thu Jun 16, 2016 7:26 pm

Toomas Losin wrote:It should be clarified that the incumbants aren't being "forced" to do this at a loss. They still make a profit with wholesale DSL.

But not as much profit as they would if they were selling the service directly to the customer. Compare TELUS and Yak pricing:

TELUS Internet 15:
15 Mbps download
1 Mbps upload
200 GB monthly
$63/month

Yak High Speed 15:
15 Mbps download
1 Mbps upload
250 GB monthly
$39.95/month

I cannot believe that Yak is not making a profit, so the "loss" for TELUS (retail - wholesale) would be well over the $23.05 difference in price. Well, at least that is how TELUS, Shaw, Rogers or Bell would argue it.
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