The CRTC Doesn’t Get It

I read with interest an article in the National Post today. The headline reads “Canadians can afford high cable fees: CRTC. Regulator finds Canadians absorb higher cable fees without complaint.” The article goes on to state that the average cable bill has risen by almost 50% since 2002 and that “Such results do no seem to suggest a significant withdrawal of demand for television services when consumers are faced with rate increases.”

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The CRTC and Television

The CRTC announced its long awaited broadcast decision, which gives television networks the right to negotiate carriage fees with cable and satellite companies (the Cable Cos). To date, Canadian stations were carried at no cost to the Cable Cos. This model worked for a long time, with both parties profiting from the arrangement. However, a decrease in advertising revenues has put the pinch on the networks and a change in model was almost inevitable. Neither side was willing budge on the issue – both seemingly content to play to the perceived public sympathies in an effort to build support for stated arguments. So what is likely to happen?

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Google Apps Marketplace

Google announced the Apps Marketplace yesterday.

The upshot is that Google Apps subscribers will have access to a number of applications that can integrate with existing Google Apps (gmail, calendar etc). Applications are delivered by a network of over 50 partners and include applications like payroll, project management, web conferencing and efax. What’s interesting is the fact that Google is moving beyond productivity (Google Docs, email, search) and is introducing applications that can drive efficiency across the business. Applications like Intuit Payroll, ZohoCRM and myERP.com (I have no idea how well these apps work, I am  just giving examples) present powerful examples of what is possible.

While it is obviously too early to tell, my suspicion is that the App Marketplace will find a home across all segments of the market. Business efficiency applications will likely see more adoption in the SMB market, but tools like project management and workflows will not be out of place in the enterprise (not that they will be adopted from the top and pushed down. More likely that these applications start in a team environment and potentially move outward).

A key challenge will be managing the partner ecosystem. Google will have little control over how partners manage service delivery, particularly when you extend this to management of trouble tickets and the like. As an example, issues with payroll tend not to be well tolerated by customers, while issues with eFax are likely to be tolerated. Unless a strict SLA regime is part of the partner relationship, Google will have little control beyond ensuring that customer feedback is front and centre. I am sure a lot of adoption decisions will be made after examining the number of stars an application has.

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Cisco – Video is the killer app.

Cisco’s CEO, John Chambers, made this bold statement yesterday when announcing a new carrier-grade router. He said the same thing in 2007, and 2009. Point made at this stage, I think?

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Steve Ballmer on the Cloud

Steve Ballmer has never been short on hyperbole. Why should the cloud be any different? http://bit.ly/b2ImUw

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Foreign Ownership Rules to Change?

Canada’s foreign ownership regulations have long been criticized as being too restrictive. The Telecom Act of 1996 makes the case clear:

“For the purposes of subsection (1), a corporation is Canadian-owned and controlled if

(a) not less than eighty per cent of the members of the board of directors of the corporation are individual Canadians;

(b) Canadians beneficially own, directly or indirectly, in the aggregate and otherwise than by way of security only, not less than eighty per cent of the corporation’s voting shares issued and outstanding; and

(c) the corporation is not otherwise controlled by persons that are not Canadians.”

Critics claim that the end result has been a paucity of foreign investment when compared to countries that have liberalized foreign ownership regulations and the knock on effect being less capital investment.

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