Line of Business
Landline project delay gives Bell time to plan
Analysts assess carrier's decision to focus on IPTV, wireless4/27/2007 9:49:00 AM By: Briony Smith
Bell Canada's plans to expand its landline networks and delve into the IPTV market have stalled, but Canadian IT analysts say the company's ExpressVu television offering will tide the firm over while it concentrates on expanding its wireless coverage and improving customer service.At the end of 2004, Bell launched a five-year, $1.2-billion plan to expand its fibre-optic lines into 4.3 million homes in the Quebec City/Windsor corridor that would enable it to offer faster Internet and IPTV.
According to a report in the Globe and Mail newspaper, however, a regulatory filing revealed that Bell had spent $400 million over the last two years but had only reached a third of its network “nodes” goal and had pushed the completion date of the project back to 2009.
Nothing to lose
In the story, Bell spokesperson Mark Langton said that the delay is in line with the company's wanting to invest in projects that can produce revenue faster, including “upgrading its wireless network, improving customer service, and expanding its retail presence.”
Roberta Fox, senior partner with the Mount Albert, Ont.-based Fox Group Telecom Consulting, said that Bell doesn't have much to lose by delaying the landline project and its thrust into the IPTV space. “They have video distribution (with Bell ExpressVu) already, so, compared to the other carriers, there's not as much need to go to IPTV,” she said.
Mark Goldberg, head of Thornhill, Ont.-based telecommunications consulting firm Mark H. Goldberg & Associates, said that IPTV may increase Bell's television offerings, but it's already doing just fine without it. “People don't care about whether they buy IPTV. They just want to buy TV. They're indifferent as to how it gets to them. They just want a wide array of channels, HDTV, and PVRs, and Bell has been able to deliver that using Bell ExpressVu,” said Goldberg.
The Globe and Mail story also pointed out that Bell is waiting on “the development of a key piece of equipment, and a more advanced piece of Microsoft software, in order to launch IPTV.” Goldberg said that, this way, Bell would be able to move forward with the next-generation integrated video experience.
It will also ensure a smooth-running product, according to Fox. “With IPTV, they're not jumping in until they're ready. Why do you need to have the network without an application or capabilities?” she said.
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