Thursday, November 06, 2008
Danger: falling prices
In a joint Broadcast and Telecom Decision, The CRTC rejected an application by Maskatel and Telephone Drummond that asked the CRTC to discipline Cogeco for offering services at too low a price.They argued that Cogeco's pricing initiatives, targeting customers in Saint-Hyacinthe and Drummondville, were unjust.
But, the CRTC was not about to issue a decision ordering Cogeco to raise consumer prices.
The Commission found that there may indeed be discrimination, but it is not unjust - rather, it is a normal competitive market response.
The Commission remains of the view that, as noted in several previous decisions, competition among distributors, along with end-user choice for consumers, can contribute to the achievement of a number of the objectives of the Broadcasting Act. Among other things, competition can contribute to the affordability of service by encouraging distributors to reduce subscription rates for end-users in their attempts to obtain subscribers.Competition is working. Prices are coming down. Hopefully, industry participants can get used to that.
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CRTC, Cogeco, Maskatel, Telephone Drummond
Posted by Mark Goldberg @ 11/06/2008 06:30:00 AM 
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