The latest indication that Videotron is feeling the heat from competition by Bell Canada is that it has rebranded its Internet packages to include the word “fibre”.
Now, rather than “High Speed” or “Ultimate Speed”, the packages are being referred to as “Fibre Hybrid”. This term reflects the fact that, while the telecom company has 30,000 kilometres of fibre-optic cable, the cable that actually gets into people’s homes is still the same coaxial copper cable that’s been used for cable TV for decades.
Such a setup, in which the backbone is fibre-optic but that last connection to individual homes is a conventional line, is called fibre-to-the-node or fibre-to-the-neighbourhood. It contrasts with fibre-to-the-home, in which fibre-optic cable actually goes all the way to a person’s home, giving them access to very high data transfer rates and room to grow.
Bell Fibe, which isn’t even five years old yet, has been spreading in Montreal, offering for many the first non-satellite alternative for cable TV and high-speed Internet. We don’t know exactly how many customers it’s stolen from Videotron, but we do know that the powers that be at the Quebecor-owned company are very nervous.
Because fibre-optics is so central to Bell that it’s even in the name of the fibre-optic package, Videotron apparently decided it wanted to make sure everyone knows that it too uses fibre. Ads in newspapers boast that Videotron had a fibre network before Bell set one up.
But Videotron’s network, and much of Bell’s, isn’t really fibre. It’s FTTN, not FTTH. And both of them will need to come up with something even more buzzword-worthy when they do bring fibre right into people’s TVs. (Bell has some FTTH customers, but many with “Bell Fibe” don’t have fibre entering their homes.)
As these two companies continue their pissing contest, La Presse’s Jean-François Codère did a comparison between Bell and Videotron in terms of Internet packages. Bell comes out slightly better in some areas while for others you’re better off with Videotron (assuming Internet speed and download caps are all you care about.
It would be nice to say healthy competition is forcing both Videotron and Bell to put consumers first, but Bell just told clients it’s dramatically increasing its prices And Videotron booting its prices is a yearly occurrence.
Maybe we can just amuse ourself in the assumption that if it weren’t for competition, those price increases would be higher. But don’t hold your breath hoping for more. Cogeco just announced it’s abandoning its plans for an IP-based data link to residential subscribers, saying it’s too complicated.