ISP “inaction” to blame for lack of third-party Internet access

The following is a letter to the editor from the Canadian Cable Television Association (CCTA) responding to the editorial that appeared in the November 22, 2002 issue of Canadian Communications Reports. The issue of why third-party Internet service providers aren’t accessing cable lines was also brought up recently at Standing Committee on Canadian Heritage hearings last month. The facts simply do not support the opinions expressed in Norma Reveler’s editorial on third-party Internet access (TPIA) printed in the November 22 issue of Canadian Communications Reports. The editorial argues that cable companies have found a way to shut out third-party access and have not "initiated easy and open procedures for third-party access to their lines at a reasonable cost." This is not fair commentary. As Jim Shaw, CEO of Shaw Communications, recently told the Standing Committee on Canadian Heritage, the industry is open for business, but it takes two to make a deal. It takes a third-party Internet provider to request the service before third-party Internet access can become reality. And the facts are that although CRTC-approved cost-based rates have been in place since August, 2000, not a single ISP, until the last month, stepped forward to sign up for the service. This ISP inertia has ruled the day despite the statements made by Jay Thomson, President of the Canadian Association of Internet Providers (CAIP), in a CAIP press release on August 21, 2000, the day of the CRTC decision. Mr. Thomson was quoted as saying, "As long as cable’s retail rates remain at current levels, these wholesale rates should provide ISPs enough room to build in their own costs and still offer a competitively-priced cable high-speed service. There is still more work to be done, but we applaud the CRTC for establishing a pricing regime that presents a real business opportunity for both independent ISPs and cable companies, and consumers should be the biggest beneficiaries from the choices that will result." Since that date, cable companies have raised retail rates for their standard high-speed Internet service provided monthly to almost two million subscribers. The cable industry has spent countless hours and significant sums of money working jointly with ISPs developing and trialing technical solutions. CCTA and its members have participated actively in the CISC process and the tariff proceedings while the same cannot be said of independent ISPs. This lack of participation has left the cable industry questioning ISPs’ interest in the service. Further doubts have been cast by the absence of even one customer for the service for over two years since the transport rates were approved. To lay blame on the cable industry for ISP inaction is absurd. When a request for the TPIA service finally did materialize, the cable industry responded quickly and efficiently. Cybersurf’s request has resulted in two signed agreements with Canada’s two largest MSOs. In its November 21 press release, Cybersurf noted that its "new cable Internet service will meet required profit margins to contribute to the company’s path-to-profitability." Those are the facts. ISPs and CAIP should stop crying wolf. The myth is dispelled. Michèle Beck is VP of regulatory engineering at the Canadian Cable Television Association.

ISP “inaction” to blame for lack of third-party Internet access

Broadcast | December 5, 2002

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