05-27-2011, 11:01 AM
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#744
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Lifetime Suspension
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I don't see how this is great news, basically to get Shaw's internet you have to buy their TV service as well.
http://wordsbynowak.com/2011/05/27/s...ainst-netflix/
It’s hard to see how requiring someone to take a service they don’t want (TV) in order to get the one they do want (higher-speed internet) wouldn’t qualify as tied-selling. Of course, the Competition Bureau has been letting wireless companies get away with tied-selling for years. A customer can buy a cellphone outright from a provider but, with some exceptions, the carrier won’t unlock the device, thereby forcing the customer to buy monthly service from them as well. That’s tied-selling in a nutshell.
From Shaw’s perspective, it’s no surprise the company wants to lock customers into a service they don’t want. Like most other ISPs, the cable company is running scared of Netflix and other so-called over-the-top video providers, so this sort of tied-selling is a sneaky move. After all, does the company really care how well Netflix and other online video providers do, or how much data internet customers use when they’re still paying up for that TV service? Of course not. Shaw still gets the same revenue from the customer.
First, the big ISPs tried throttling, then they tried UBB. Neither worked, so now they’re collectively trying to slow Netflix et al with regulation. Unless Canadian regulators are a bunch of loonies (and the jury is out on that), that too won’t work. Tied-selling, where customers have to pay cable companies for video whether they want to or not, may be their final kick at the can.
Over to you, Competition Bureau.
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