Canadian net neutrality coalition forms
I caught the closing session of Vidfest on Friday - a call to arms to defend net neutrality, entitled "Can I Have Your Attention Please? An Internet SOS", featuring Matt Thompson and Jason Roks.
For those who are new to this debate, net neutrality is about maintaining the openness and equity that underpin the success of the Internet, as opposed to the imposition of packet prioritization that the major ISPs are trying to engineer. Panel surfer/moderator, Kris Krug, played this video which does a nice job of getting to the heart of the matter, albeit from the US perspective. Matt gave several analogies of other networks that owe their success to the principle of network neutrality - the phone system and the electrical grid:
"Imagine", he said, "that you call your favourite nieghbourhood family-run pizza place to place an order and instead of being put straight through an autmated voice comes on to tell you that your phone provider has struck a deal with Dominos and that you can either be put immediately through to Dominos or wait five minutes to be connected to the place you're trying to reach. Or imagine that your electrical outlet will only allow you to plug in a General Electric toaster and not one made by Phillips."
Last summer I drafted the Green Party of Canada's platform statement on Free/Libre Open Source Software and Network Neutrality (see Bruce Byfield's article from Linux.com). Since then the federal NDP have also taken up the cause.
While the US has seen egregious actions on the part of many ISPs, the latest transgression in our own fair country is courtesy of Bell Canada, which has started throttling the traffic of smaller ISPs (claiming they must do this is the name of network congestion) while at the same time launching a Video On Demand service that uses MPEG2 compression! This is absolutely ludicrous - offering their new service in MPEG4 would result in a immediate ten-fold saving in bandwidth that would all but negate the need to throttle the traffic of 'competitors' for the forseeable future.
Ultimately this is the usual story - are we going to allow greedy corporations to dictate what we can and can't do with our Internet?
The session ended with Jason encouraging us to visit SaveOurNet.ca where a coalition is currently being built in keep the Net open and free in Canada. Visit now and sign up as an individual or organization.
Apparently a bill has already been introduced, hot on the heels of Tuesday's demo.
See: http://arstechnica.com/news.ars/post/20080529-canadian-punk-rocker-turne...
Government wireless airwaves auction underway
Last Updated: Tuesday, May 27, 2008 | 5:16 PM ET Comments12Recommended21
CBC News
Shaw Communications Inc. and a group headed by Yak parent Globalive Communications Corp. were the two most aggressive new players in the first day of a government auction of wireless airwaves that began Tuesday, an auction the government hopes will pave the way for increased competition and lower prices in Canada's cellphone market.
Through two rounds of bidding in a process that could take as long as a month, the federal government's auction of wireless spectrum had drawn more than $560 million in bids from cable and telecommunications companies hoping to add to their stake in the wireless market. The auction will continue as long as bidding continues.
Canada's three big providers — Rogers Communications Inc., Bell Canada Inc., and Telus Corp. — are all competing in the auction of 105 megahertz of radio spectrum, which is used to carry the signals of cellphones.
But the auction has attracted unprecedented interest because of rules set by Industry Canada that set aside 40 megahertz of the airwaves for new entrants, opening the door to new regional and possibly national competitors for customers in the wireless industry.
While the first day's results may not be representative of the final outcome, IDC Canada telecommunications analyst Lawrence Surtees said the results show many of the new entrants are "serious in their intent."
Through two rounds, Calgary-based Shaw had the highest bid so far in 41 regional licences — bids that total $153 million and stretch from northern Ontario to British Columbia.
Toronto-based Globalive had the highest bid so far for only eight regional licences, but they have been aggressive bids, totalling about $135 million, in high population areas, including in Toronto and Montreal.
Globalive, which resells phone and internet services through its Yak brand, is bidding in conjunction with two foreign companies. Egypt-based Weather Investments, which owns cellphone companies in Italy and Greece, as well as Novator, which has funded new wireless entrants in its Iceland home and in Poland, are part of Globalive's bid.
Quebecor-owned Videotron got off to a strong start in round one but lost much of its ground in eastern Canada and southern Quebec to Globalive in the second round. Quebecor currently has the highest bid in 19 regional blocks, mostly in Quebec and Ontario.
Among other regional telecommunications companies, Manitoba Telecom Services Inc. (MTS Allstream) has the current high bid in nine regions, all but one in Manitoba, while Sasktel leads in three areas in Saskatchewan.
MTS Allstream's bid to be a national player may have suffered a blow last week when the company revealed that its partnership with two high-powered investors, the Canada Pension Plan Investment Board and U.S.-based private equity firm Blackstone Capital Partners, had fallen apart just days before the start of the auction.
Toronto entrepreneur John Bitove's Data & Audio-Visual Enterprises (DAVE) Wireless Inc. had, through two rounds, bid on only four regions and did not have a high bid in any of them.
Among established carriers, Telus is the current leader for 60 new regional licences, while Bell leads in 42 and Rogers in four.
The process, however, is still in its early stages, with two more rounds scheduled for Wednesday and another four rounds each day on Thursday and Friday. Under auction rules, the minimum bid in each round must be 15 per cent higher than the highest bid of the previous round.
Government hopes to raise $1B
The auction could last as long as a month, Industry Minister Jim Prentice said Tuesday. It ends when there are no more bids on any of the regional spectrum blocks.
Following the close of the auction, winning bidders will be required to submit ownership and control documentation and to complete various payment transactions within 30 business days, Industry Canada said.
The government had hoped to raise more than $1 billion through the sale of the airwaves, and has to be encouraged by the early results, said Surtees.
"The fact that there were more than two dozen qualified applicants speaks to the intense interest in this auction," he said.
The next few days should be interesting, Surtees said, and could reveal whether a new national player or group of smaller regional players will emerge to compete with the big three carriers.
Winning bidders are expected to begin building cellphone networks and competing with the country's three established players by early next year.
Regardless of who wins, the new competition should lead to lower prices for consumers, Surtees said.
"There's going to be aggressive pressure on the state of prices in the wireless market," he said. "I think we're headed to a new renaissance regardless of whether competition comes from a national or regional carriers. And that's what the government is hoping for with this auction."
PIRATES...
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