Month: June 2007

As policy makers start weighing the merits of a Telus takeover of Bell Canada, consider these telecom industry facts, as published by the Paris-based Organization for Economic Co-operation and Development in its most recent Communications Outlook.

How does Canada compare against its G-7 peers when it comes to the cost of a basket of residential phone charges (including international calling):

• Canada is cheapest.

How does Canada compare to the G-7 on business phone costs?

• Canada is cheapest.

How does Canada compare to its G-7 peers when it comes to mobile phone costs for low,  medium, and heavy users?

• Cheapest. Cheapest . Cheapest.

How does Canada compare to the G-7 on the costs of high-speed Internet?

• Cheaper than the U.S. but in the middle of the pack of the G-7.

And here’s one other info-nugget: How reliable is Canada’s phone system compared to its peers?

• Easily the best in the world.

The OECD measures “faults per 100 telephone lines per year”.

In 2003 — the most recent year for which we have comparisons to the U.S. — Canadian phone companies registered an average of 1.1 faults per 100 lines per year. The U.S. was more than 10 times worse at 11.6 faults. The U.K. was 11.8 faults.

 

Bell just announced it may merge with Telus. My telco sources tell me that the regulatory hurdle they may have to clear may not be as steep as they might have been 10 years ago or so. Bell-Telus may be able to say that the cable companies and upstarts like Skype are reasonable competition and that’s why they need to merge. Here’s the press release from Bell:

 

Strategic review process: BCE signs non-disclosure and standstill agreement with TELUS Corporation to explore possibility of a business combination

     MONTREAL, Québec, June 20 /CNW Telbec/ – The Strategic Oversight
Committee of the Board of Directors of BCE Inc. (TSX/NYSE: BCE) today
announced that TELUS Corporation has entered into discussions to explore the
possibility of a business combination with the Company. BCE and TELUS have
entered into a mutual non-disclosure and standstill agreement on a
non-exclusive basis.
     The Company had previously announced its intention to review all
strategic alternatives with a view to further enhance shareholder value. The
review is currently expected to be completed in the third quarter of 2007.
     No assurances can be provided that any offer, if made, by any entity or
group, now formed or to be formed in the future, will be accepted by the Board
of Directors or that this review of alternatives will result in any specific
action being taken by the Company.

We’ve just received word that MPs will vote in about 30 minutes to put themselves out for summer recess, to return September 17.

More later …

Toyota has four of the top ten best-selling cars in Canada in 2007, according to data just released today from Desrosiers Automotive Consultants Inc. of Richmond Hill, Ont. while the North American nameplates placed just three models in the top ten.

Toyota has the Corolla (3), Yaris (4), Camry (6) and Matrix (10) at the top of the charts.

The number one selling-car in Canada is the Honda Civic but sales of that model for the first five months of the year are up just 1.9 per cent compared to the same period last year.

The North American nameplates on the top ten include the Chevrolet Cobalt (5), Pontiac Pursuit/G5 (7), and the Ford Focus (8).

Now when it comes to light trucks, including SUVs, the North Americans rule the roost. The Ford F-Series pickup truck is number one overall in this segment followed by the Dodge Caravan minivan and the GMC Sierra pickup truck. Only one foreign nameplate cracks this category — the Honda CR-V at number 10.

Through May, 361,430 passenger cars have been sold this year in Canada — an increase of just under 2 per cent compared to last year — and 331,985 light trucks and SUVs have been sold, an increase of 9.4 per cent.

 

After Question Period today, Liberal MP and former cabinet minister Jim Peterson will rise in the House to announce his resignation.
Peterson's announcement comes a day after a similar announcement from his deskmate Bill Graham.
Peterson's seat in the Toronto riding of Willowdale is expected to be contested Liberal leadership candidate Martha Hall Findlay.

Three Canadian soldiers were killed in Afghanistan today after a roadside bomb was detonated under or near the unarmoured open-topped truck they were travelling in.

As soon as he heard the news, a defence industry source of mine sent me this note: “Why are running around in open unprotected trucks with DND HQ sitting on a bundle of money for armored trucks for over a year!!!”

You will likely hear a similar line of questioning today from Opposition politicians.

Defence Minister Gordon O’Connor announced nearly a year ago to the day  that his government was ready to spend $1.2–billion on 2,300 new “medium-sized logistics trucks”.

“These new trucks will ensure the lifeline of supply for front-line troops will continue,” said then Lieutenant-General Marc Dumais, Commander Canada Command, in a press release at the time.

But a year later, this truck project is hopelessly bogged down and the department has yet to put out the call to manufacturers to invite them to even bid on the project. Insiders say the project is stalled because of internal disagreements between department bureaucrats and senior officers at HQ who cannot agree on what kind of truck to buy.

In the meantime, here’s some talking points prepared for O’Connor on the issue of new trucks for the troops. These talking points, taken from the daily “House Cards” prepared for the Minister’s daily grilling in the House of Commons, were obtained by CTV News under an Access to Information Request. These notes were prepared in September, 2006 and House Cards we have obtained from late November, 2006 make similar points:

IF PRESSED ON THE HEAVY TRUCK FLEET

• While visiting our troops in Afghanistan, I was able to witness the condition of our heavy truck fleet.
• These vehicles are operating continuously in an unstable and harsh environment. It is no surprise that the maintenance on these vehicles has increased. Having said that, they are an excellent piece of equipment and are serving the troops well. As I told our soldiers, I understand that these trucks are an important contribution to our mission in Afghanistan and I have made it a priority to acquire new trucks that will offer better reliability and increased levels of protection.

IF PRESSED ON G-WAGON USE OUTSIDE OF KAF [Kandahar Air Field]

• As I have said in the past, I haven't given any order to restrict the use of the G-Wagon in Kandahar, nor have I said that the G-Wagon would never be used outside the base.
  We are continuing to use the G-Wagon outside of
• Kandahar airfield with certain restrictions. Those restrictions are made to reduce the risk to our soldiers as much as possible. For security reasons, I cannot talk publicly about those restrictions.
• Despite these efforts, we cannot completely eliminate the risks to our soldiers operating in Afghanistan, whether using G-Wagons or other vehicles.

IF PRESSED ON G-WAGON I NYALA SAFETY

• The Canadian Forces use a variety of vehicles in Afghanistan, depending on the situation. The safety of our troops is our top priority when making decisions about the use of equipment on operations.
• No vehicle is immune to incidents involving powerful explosives. The G-Wagon has proven to be effective in certain roles in Afghanistan and will continue to be an important asset to our mission there.
• As the threat evolves, DND will continue to evaluate the equipment provided on operations to ensure it meets the needs of the CF.

From a “House Card” prepared on Nov. 22, 2006:

MEDIUM TRUCK FLEET REPLACEMENT PROJECT

• We are investing approximately $1.1 billion in 2,300 new medium sized logistics trucks for the Canadian Forces.
• The new fleet will be the logistics backbone of the Army, getting supplies and special capabilities where they are needed in the most efficient way possible.
• We are in the process of acquiring these trucks through a competitive process that is still ongoing. We will ensure that Canadian firms have significant involvement over the life of this project.

And from a “House Card” prepared on Feb. 2, 2007:

IF PRESSED ON RELEASING THE PLAN BEFORE ANNOUNCING FUTURE PROCUREMENT PROJECTS

• This government has shown time and again that it is committed to giving the Canadian Forces the equipment they need to get the job done. The procurement announcements that were made last June
  represent the most significant investment in the Canadian Forces in a decade.
• Those announcements included the procurement of new strategic and tactical aircraft, helicopters, support ships and logistics trucks – all of which are required by the Canadian Forces as quickly as
  possible to support their operations.
• For these projects, the department had secured the necessary funds and approvals to move forward.

Using an Access to Information request, I recently received a briefing note submitted to Defence Minister Gordon O’Connor last year in which department officials review the 2006 National Security Strategy of the United States, a document that each U.S. administration is supposed to produce every year but which the current Bush administration has produced in 2002 and then not again until last year.

Here’s some excerpts from the conclusion, written by Corey Michael Dvorkin,  who was, when this document was prepared in March 2006, working in the office of the director of strategic analysis at the Department of National Defence.

What is perhaps unique about this document is the extent to which a strategy statement devoted to long-term security issues repeatedly articulates the belief that the US has a calling to spread democracy and freedom. For many Americans, this 21st century version of 19th century American Manifest Destiny is not simply a tool to enable victory in the war on terror; rather it is seen by many as a moral obligation which the United States is expected to assume. The document notes that in the fight against tyranny, history teaches that other states may not act unless the US does its part. Some of this can perhaps be dismissed as hyperbole used to justify the policies of an increasingly unpopular President. To do so, however, would ignore a long and historic trend in which such concepts lie at the core of American selfdefinition and, at times, US foreign policy.

While the 2006 Strategy reveals that the US will be unrelenting in its resolve, it is also is quite direct in stating that it will remain flexible on its choice of means in pursuing national security objectives. In other words, the document reveals a subtle but important  shift away from the previous emphasis on force, which is repeatedly described as a last resort. It is also signalling that America's allies have an opportunity to influence U.S. behaviour by acting proactively, bilaterally and multilaterally, rather than waiting until the US concludes it has no other choice but to act unilaterally.

From a Canadian perspective, the new US National Security Strategy shows many positive signs. Foremost among these is the repeated emphasis it places on working with old friends and allies in areas of common cause. Indeed, the 2006 Strategy states that “there is little of lasting consequence that we can accomplish in the world without the sustained cooperation of ow allies and partners.” This stands in marked contrast to the 2002 Strategy, under which the US would engage multilateral institutions only to the extent that they could contribute to the war against terrorism, and only if such cooperation did not restrict America's freedom of action.

Read the entire 4–page briefing note.

Want to see the video of Hilary Clinton's new campaign song, “You and I”? It's been online here since 2004 after I covered the Air Canada presser at which the company announced that Celine Dion would be the star in its new marketing materials. Air Canada produced a video of the song shown only on its flights — and never on MuchMusic or MTV.
So I've gone back into my blog archives here and found the post from 2004 where I wrote about the Celine presser and — for you Celine (and Hilary) fans — I've got the link there to the video Air Canada produced of “You and I”.

In a few minutes, Liberal MP Bill Graham will rise in the House of Commons
and announce his resignation, clearing the way for Bob Rae to run in Toronto
Centre.
Graham is among the best-liked MPs in the House and commands a great deal of
respect from all sides.
In his parliamentary career, he served as minister of national defence, as
minster of foreign affairs, and also served as interim leader of his party.
David Akin
CTV News
+1 613 220 7935
www.davidakin.com