To: Stephen B. Temple who wrote (1963 ) 11/20/1998 7:13:00 AM From: Stephen B. Temple Respond to of 3178
Cogeco Cable Announces Plans To Enter Phone Market November 20, 1998 MONTREAL, QUEBEC, CANADA,: Cogeco Cable, one of Canada's handful oflarge cable-television operators, has announced plans to become a competitive local exchange carrier (CLEC), offering local and long- distance telephone service to its customers in Ontario and Quebec by the end of next year. The company, which is already a player in high-speed Internet access via cable modems, said it will use its local cable networks, a fiber-optic backbone it has helped build from Montreal to Rimouski in Eastern Quebec, and capacity on other backbone networks to provide phone service in the corridor from Windsor, Ont., to Rimouski. That corridor, which includes Montreal and Toronto, is one of Canada's most densely populated areas. Subsidiaries of Cogeco in Ontario and Quebec have already filed with the Canadian Radio-television and Telecommunications Commission (CRTC) to be recognized as CLECs, company officials said. Cogeco said it will use advanced technology such as the Java programming language and JavaScript to add special features to its phone service, which will rely on voice over Internet Protocol (IP) techniques. Eventually, officials said, Cogeco hopes to add video telephony to its offerings. All of Canada's major cable firms are believed to be at least looking at the telephone market since the CRTC opened local telephone service to competition effective at the beginning of this year. At the IP Telephony and Voice/Data Integration Conference in Toronto last month, Steve Guiton, vice-president of telecommunications and multimedia at the Canadian Cable Television Association, predicted that 10 years from now about 20 percent of Canadian cable firms' revenues will come from the telephone business. However, Eamon Hoey, a Toronto-based telecommunications consultant, said cable companies still have some hurdled to overcome before succeeding in the telephone market. In addition to some technical issues, Hoey said, the cable firms have little expertise in serving the business market, and their credibility with consumers -- many of whom are unhappy with the service they get from their cable providers -- is doubtful.