Tag Archives: Bell Canada

Bell solves TV crisis (not)

OK, someone's going to need to explain this one to me, because it doesn't make any sense.

Conventional television broadcasters (CTV, Global, TVA, TQS and CBC/Radio-Canada) are pleading with MPs and the CRTC for the ability to charge cable and satellite distributors for fees to carry their channels. Their argument is that the advertising model has failed them, and they require a second revenue source to pay for all those local news stations and transmitters. They also say it's unfair that specialty cable channels get subscriber fees. (Why am I paying money to networks that air non-stop Seinfeld reruns packed with ads anyway?)

Since the distributors would undoubtedly pass these fees onto their customers (despite their billions of dollars in profits), this would effectively mean that Canadians would be forced to pay for television channels that are broadcast for free over the air.

On Wednesday, Bell, whose Bell TV is one of two direct-to-home satellite services legally operating in Canada, announced it had come up with an "innovative" solution to this problem, that wouldn't cost consumers extra, would help broadcasters and more importantly not hurt its own bottom line.

That solution is "freesat", a system where some over-the-air television channels would be beamed to homes via satellite for free. Bell would be happy to provide this service if it meant they didn't have to do this fee-for-carriage stuff. (It's also easier to convince people to sign up for paid satellite service when they already have the equipment.)

So there you go, a win-win-win solution. Right?

Oh wait, not right, because this doesn't solve anything.

Bell seems to believe that the financial problem of television stations is their upcoming transition to digital transmission. While the purchase of digital transmitters is a nontrivial problem - the CRTC's estimate is that it would cost hundreds of millions of dollars - and it has led to the decision to shut down many retransmitters, that's not what the broadcasters are complaining about. Their argument is that the cost of local newsrooms and local programming is too high to be paid for with advertising alone. Bell's idea would not solve this problem.

Its financial uselessness isn't the only flaw in Bell's Freesat plan, as Digital Home also points out. Among the others:

  • Freesat would require users to purchase satellite dishes and decoders from Bell, at a cost much higher than a simple over-the-air digital-to-analog converter. One of the main reasons people don't have cable or satellite is cost, so the people who would need this are also the people least likely to afford it.
  • Not everyone has a home that can accommodate a satellite installation.
  • Bell's satellite service doesn't carry all local conventional television channels (like, for instance, Global Quebec). This wouldn't change under Freesat. So viewers would actually lose channels. Not to mention that the decision of what channels we'd have free access to would be Bell's alone.
  • This proposal ignores the fact that there's a second satellite provider in Canada. How would StarChoice fit into this? Would it also have to provide free channels?

I have my issues with the transition to digital. I've already argued against it, and still believe that there's plenty of room to move existing stations out of the higher channels (say, 50-69) and auction off those frequencies. Digital television would make a technology that's been used for more than half a century obsolete unnecessarily.

Freesat is worse. The equipment is bulkier and more expensive, and it doesn't give all local channels. It's the worst of two worlds.

Oh by the way, if "Freesat" sounds familiar, it could be because it's the name of a real free-to-air satellite TV service in the U.K., or because Bell is recycling this exact same idea from a year ago.

Nice try, Bell.

The Source by Bell

The Source outlet in Eaton Centre downtown

Bell Canada, which apparently has lots of money to spare, has decided to buy up The Source, the overpriced electronics retailer which used to be Radio Shack and whose parent company went bankrupt in November.

Coverage from, well, everyone: Globe, Star, CBC, Forbes, WSJ, Reuters, Digital Home

Bell says it plans to use the outlets to hawk Bell merchandise like Bell Mobility cellphones (once the exclusivity contract with Rogers ends this year) and Bell TV satellite service.

The deal seems to make perfect sense, as both companies offer crappy product, have horrible customer service, charge way too much and yet survive because people who don't know any better recognize the brand.

Any bets on whether Bell will fix the many fundamental problems with The Source's business model?

Bell wins throttling case

Bell Canada has won a case that went to the CRTC about peer-to-peer throttling.

In April, the Canadian Association of Internet Providers complained to the CRTC because Bell was using traffic shaping techniques to slow P2P traffic on both its network and the networks of DSL Internet resellers (because of Bell's telephone monopoly, it is required to sell wholesale net access to companies at government-set rates).

The CAIP argued that this was unfair and unnecessary. Bell argued the opposite.

The CRTC took Bell's side on the case, in a decision which is pretty well uninteresting otherwise. The only caveat: Bell will have to inform its resellers at least 30 days in advance of similar changes in the future.

Despite the apparentloss to net neutrality advocates, Michael Geist says it's not the last word on the subject, and there's still hope.

UPDATE: Geist has some quick reactions from Bell and the CRTC.

Another gigantic waste of money from Bell

Bell billboard on St. Jacques St. West

Bell billboard on St. Jacques St. West

Unless you've been living under a rock, you've been exposed to ads in print, television, online, outside, in the metro and elsewhere from Bell Canada, which recently changed its logo, dumped its beavers and has launched a massive ad campaign to ... introduce their new logo, I guess.

As if to underline the pointlessness of the redesign and the ad campaign, Bell first put up anonymous ads in the metro, with little slivers of the logo. I'm sure some marketing genius thought that would get people's attention (they certainly bought enough space to get noticed). But really, nobody cared enough to look into it, gossip about it, or put the ad puzzle pieces together to figure out their source. (Well, almost nobody).

When the ad campaign launched, it introduced taglines in both French and English. The French version is "la vie est Bell," which is a cute but obvious pun. In English, the taglines all end with a bolded, coloured "er", as in "today just got better", which makes no sense and has no connection with Bell.

Combined with ads for Telus's Koodo service, expect to be bombarded with cellphone-related advertising, expecially in the metro.

Bell is also heavily promoting the Samsung Instinct, which it paradoxically promotes as both the "hottest phone of the year" and an "Apple killer" (sorry, "killer"), all with a straight face, in a desperate (and desperately transparent) attempt to show that not having the iPhone doesn't make Bell executives cry at night.

But the worst part for Bell customers: Every one of the millions and millions of dollars spent on advertising, marketing experts and website designers is a dollar that is not spent improving customer service, lowering rates or expanding the network.

La vie est Bell, indeed.

Blogosphere PR is a waste of money

The Gazette today has an essay from Mitch Joel (so great they published it twice), republished and edited from a blog post, about how media has changed and companies should monitor the blogosphere and respond to people's complaints as if they were news articles.

Joel's essay makes several very valid points, about how Google can bring a critical blog post about your company into the limelight, and about how the media is spread out and includes a lot of online outlets.

But his conclusion is wrong. It makes little sense for big companies to care what bloggers say about them. And the reason is quite depressing: Customers don't care about crappy customer service (at least until it happens to them).

Just look at Bell Canada. Their Mobility wireless and Sympatico Internet brands have by far the worst customer service reputation in the country, which is not an easy feat. (Imagine a company that responds to a service collapse by shutting down their customer service department temporarily.) Blogs and message boards are filled with complaints, vows to never do business with them again. CEO Michael Sabia lies through his teeth that customer service is their "number one priority," but nothing seems to change.

And yet, ironically on the same day this article is published, we hear that Bell Canada's wireless division is seeing soaring profits, in part because of new people signing up for wireless service. The article talks about how Bell has to focus on keeping and obtaining customers, and "increasing profitability." Michael Sabia doesn't mention "customer service" once.

Why is this? How could a company with the worst service be getting more people signed up?

  1. Customer service is expensive. And the better it is, the more expensive it is. Human resources are always the most important part of any large company's bottom line. The more they can save on these positions, the better off they'll be.
  2. One person doesn't mean much to a big company. In fact, if you're the kind of person with a complicated situation who's going to spend a lot of effort fighting them on it, you're probably the kind of customer they don't want. When a company has millions of customers, it really doesn't matter if one gets screwed.
  3. Few people have serious problems with service. While most people have had to deal with customer service reps once or twice a year, the vast, vast majority of customers use the service and pay their bills without talking to anyone at the company. The very few who have serious problems, bad enough to warrant a blog post, are considered acceptable losses.
  4. Everyone does it. Don't like Bell Mobility? Who are you going to switch to? Telus? Rogers? They're not much better. There's an de facto industry standard of great sales but horrible service that everyone reaches eventually. And the few customers Bell loses to Rogers because of customer service nightmares will be offset by customers Rogers loses to Bell for the same reason.
  5. Customers care about price, not service. There's a reason we buy all our crap from China, get the cheap imported fruit from the grocery store, eat at McDonald's and shop at Ikea for borderline-disposable furniture. It's cheap. And in the battle for cheap vs. quality, cheap will win almost every time. Lots of people check price lists but very few look Google customer service stories before choosing a service provider.

Complaining about customer service in blogs or the media does tend to work. Mike Boone and Jean-François Mercier both got Bell to solve their problems after going public with them.

So by all means, blog about your problems, because they're more likely to get solved that way. But don't expect the company to change the way it does business just because you're unhappy. It's easier for them to give gold-plated service to a newspaper columnist or two than to hire three or four more full-time customer service reps for the rest of us.

Much as we'd like to think that top-notch customer service is good for the bottom line, looking at the industry clearly shows the opposite. It's like environmental-friendliness: Better to do something symbolic yet meaningless (like change your packaging's colour to green) than sacrifice profits to make a difference.

Having a few bloggers trashing your company is just part of the game. Fixing their problems on an individual basis might help some people feel better about your company, but it's not going to help your bottom line.

And any unnecessary expense that doesn't increase profit is a waste of money.

TWIM: Griffintown and telemarketers

This week's Justify Your Existence features a slew of "urban planning geeks" who met a few weeks ago to discuss the proposed redevelopment of Griffintown, a sad-looking area just south of downtown. They met at the behest of A.J. Kandy, who runs the Save Griffintown blog and lives in nearby Little Burgundy.

Proposed Griffintown redevelopment

They're not opposed to the project necessarily. It would revitalize the area, be entirely privately-funded, and provide a lot of housing (social and otherwise). But they're concerned about its proposed size, which would put an entire neighbourhood under the control of a single real estate company, and some measures they think will encourage car use and discourage pedestrian traffic. (Big box stores like Wal-Mart, for example, take forever to walk around and provide nothing but a brick wall for most of its street-level facade.)

They prefer a mixed environment that's seen all over downtown Montreal: Commercial establishments at street level, with housing above. They also want more consultation with residents, a promise not to expropriate land, and a cookie.

(UPDATE Dec. 30: Kate mentions formatting problems. Unfortunately, The Gazette hasn't been able to steal Chimples away to run their copy-paste online operation ... yet.)

(UPDATE Dec. 31: AJ has a post on Save Griffintown going into more detail about where they are now.)

(UPDATE Jan. 4: I totally missed it (and I think everyone else did too), but coincidentally in the same issue, J.D. Gravenor interviews Griffintown residents Chris Gobeil and Judith Bauer about their place. Both were part of the urban planning geeks and Gobeil is quoted in my article.)

Also this week is a bluffer's guide to Canada's Do Not Call registry. Bell was awarded the contract to run the list (as the sole bidder), and now we're left wondering if the fox is guarding the chicken coop. The list, which will be free and binding on telemarketers who aren't charities, politicians or newspapers (haha, suckers) is to be up and running by Sept. 30, 2008.

UPDATE (Jan. 23): Chris Gobeil and Judith Bauer have an op/ed in Le Devoir about Griffintown's future.

Bell Canada, our Do Not Call overlords

Bell Canada has been awarded the contract to manage Canada's anti-telemarketing Do Not Call list.

Because when you think "customer service" and "convenience," the name "Bell Canada" inevitably comes to mind.

No doubt the Bell Canada-run Do Not Call list will be fast, efficient, error-free and in no way a nightmare for thousands of Canadians stuck in customer service hell.

Oh, and the reason Bell won the contract? It was the only bidder.

Can you feel the irony biting you in the ass?

Internet providers have better things to do than monitor my bandwidth

Le Devoir has an article today claiming that Bell and Videotron deliberately ignore unusual increases in clients' Internet bandwidth usage which might tell them that someone is gaining access to their connection without their knowledge.

The logic is simple: They can see clearly when bandwidth usage goes up, but they don't warn the customer because they profit heavily off bandwidth overage charges.

Thing is, I'm not terribly convinced that's the answer.

First of all, there's an assumption that Internet Service Providers like high-bandwidth users. But they don't. They hate peer-to-peer networks and other bandwidth-intensive activities. The vast majority of Internet users are well below their monthly quota, and the difference between the two is free bandwidth the companies are not eager to give away. There's also the problem that a high-bandwidth user will slow the connections of other users on the network.

Secondly, I have no reason not to believe the providers' PR-clouded appeal to their own laziness. They say they don't have the resources to check every account for unusual activity (and if they do for one customer, they'll be expected to do it for all). They'd have to hire tons of new people just to do this (and they won't, of course; they'll just pull people off technical and customer service). They'd have to do it on a schedule more often than once a month (because that's when people are billed for excessive bandwidth use), and that's really not feasible.

Similarly, the comparison with credit card companies and banks is a bit silly. These organizations deal directly with money, which is very important. You might get charged $30 for maxing out on bandwidth for one month, but it's hardly the end of the world.

Finally, this isn't an exact science. An increase in bandwidth usage might mean someone's stealing your Wi-Fi, or it might mean your grandson is over for the holidays and is playing Halo 3 all day. And how many Wi-Fi leechers really run up the bandwidth meter anyway?

Just my two cents. (That doesn't put me over the limit, right?)

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