Hmmmmm, check this out. Dep
Regional Cablesystems in Talks With Internet Service Providers
Oakville, Ontario, June 22 (Bloomberg) -- Regional Cablesystems Inc. said it's talking with several undisclosed Internet service providers to offer high-speed Internet access in 1,000 Canadian towns in the next year.
''We're in negotiations with several of them to expand across Canada,'' said Brendan Paddick, president and chief operating officer of Regional, a Canadian cable TV operator. He declined to disclose details, though he said a partnership agreement could be announced in two weeks.
The discussions are a result of Regional's decision last month to open its cable lines in a market trial to three Internet service providers in Ontario. In the process, it disproved a contention by other Canadian cable companies, including Rogers Communications Inc. and Shaw Communications Inc., that third- party access to their cable networks is impossible because of technical hurdles.
Regional, which has 250,000 cable subscribers in seven provinces and 1998 revenue of C$47.2 million (US$32.1 million), said it opened its network in Timmins, Ontario, to any local Internet service provider who wanted to provide customers with a faster connection to the Internet through cable. ''It was almost a feeding frenzy of wanting to know how they can get on and participate,'' said Paddick. He declined to discuss subscriber details.
The Canadian Association of Internet Providers, which represents 150 industry members including AOL Canada Inc. said their livelihood is being jeopardized as more customers choose faster methods of Internet connections over the conventional dial- up method.
Bell Canada's Sympatico and two other ISPs participated in Regional's May market trial.
So far, Regional and Campbell River TV Association of Campbell River, British Columbia, are the only two firms in Canada to comply with the Canadian Radio-television and Telecommunications Commission's 1996 requirement that cable companies give third-party access to their cable networks for non- broadcasting purposes such as Internet services, said Ted Woodhead, CRTC's director of access policy.
The larger cable companies are still waiting for the CRTC's pricing and scheduling policy, expected at the end of next month, before complying. ''If you're precluded, it means a short life for Internet service providers,'' said Ron Kawchuk, the Internet association's president.
Regional said a partnership with Internet service providers could increase subscribers by as many as 500,000, based on industry predictions of 50 percent of homes that have cable will subscribe to high-speed cable modem access in five years.
Regional shares fell C$0.25 to C$14.75 in early afternoon Toronto trading.
Jun/22/ 99 13:13
For more stories from Bloomberg News, click here.
(C) Copyright 1999 Bloomberg L.P.
Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News.
The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1999 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P. |
