MTS wants to join list of telcos providing cable TV service over DSL

Another provincial telco wants to move into the cable TV business, but this time around the CRTC apparently wants to ensure that corporate convergence doesn’t strangle competition. MTS Communications Inc. has filed an application for a broadcasting distribution undertaking (BDU) licence to serve Manitoba to become the latest telco to enter the broadcast field. "Convergence in Canadian telecommunications is here today," the company states in its proposal. "Currently NBTel, MTT and SaskTel all have initiatives to deliver broadband video services over their plant of copper twisted pair using DSL technology. All of these companies have been licensed as Broadcast Distribution Undertakings since the Canadian Broadcasting Act was revised to permit competition in the cable television business in 1997." The MTS bid, gazetted by the CRTC Nov. 30, will be considered at a public hearing in Winnipeg scheduled to begin on Feb. 4, 2002 – Notice of Public Hearing 2001-13. If licensed, the service will roll out in the first half of next year to about 200 trial customers in Winnipeg. The telco plans to use VDSL (very high speed digital subscriber line) technology to deliver voice, data, and television on the same copper line. Last month, the CRTC sent the firm a series of questions, many focusing on the relationship between MTS and Bell Canada. Bell holds a 21.64 per cent interest in the provincial telco. In addition, the two companies are partners in Bell Intrigna, with MTS owning two-thirds and Bell the rest. Bell’s parent, BCE Inc., controls the CTV network through its Bell Globemedia division. "There was a question on the influence that Bell has over Intrigna. Well, they have a one-third-ownership interest in Intrigna and they’ve got a 20 per cent ownership in MTS," Roy Bruckshaw, MTS director of regulatory affairs, tells Network Letter. "Yeah, they have some say. When you have an ownership interest you have some say. They’re entitled to three members on the board. In my view, I don’t think the Bell ownership in MTS ought to be a problem for the BDU application. Bell’s ownership of CTV isn’t a problem. It’s been permitted. I would think that would be a bigger issue with the commission. And to be honest, we don’t anticipate that there’ll be any major issues with this application." Bruckshaw says this inaugural entry into the world of broadcasting has been an eye-opener for the company. It didn’t know what type of questioning to expect from the broadcast regulator. "Our understanding is that the broadcast side does operate differently than the telecom side. And to be honest, we’re just kind of learning what they are asking," he remarks. "But the questions we get from the telecom side are usually pretty penetrating." It is the diversity in the telecom market that makes the current move necessary, the telco maintains. Shaw Cablesystems is the only cableco in the provincial capital, and it’s poised to spread its wings, MTS asserts. "Market research has consistently demonstrated that customers prefer to buy bundled services. They will buy cable, tele-phone and wireless service from a single source if one is available," the firm writes in its filing. "Bundling has a perceived economic benefit because of preferential pricing, the convenience of a single bill and single point of contact for customer service. Shaw is well positioned to offer bundled services to Winnipeg as soon as they offer telephony services over their cable networks. Consequently, MTS must be able to offer similar bundles of services if it is to remain competitive in the Manitoba market." For more on MTS’ broadcast distribution plans, read the Dec. 19/01 edition of NL affiliate publication, Canadian Communications Reports.

MTS wants to join list of telcos providing cable TV service over DSL

News | December 18, 2001

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