Bell rolls out Net-protocol phone service
‘ Digital Voice’ launched for customers in GTA, Hamilton ‘Lite’ version targets rivals’ services in 9 cities country-wide
Bell Canada struck back at the cable industry and lobbed a bomb on phone rival Telus Corp. with the launch of a residential digital phone service in its home territory and a “ Lite” version that targets consumers across the country.
Bell’s launch plan was first reported yesterday in the Toronto Star.
Beginning immediately, Bell customers in the GTA and Hamilton can subscribe to Bell Digital Voice for $ 40, an unlimited local plan that includes 13 calling features and the ability to customize call preferences online through a Web portal. Longdistance call plans cost extra. The service, which transmits calls as “ packets” of data using Voice over Internet Protocol, or VoIP, technology, will be launched in Montreal and surrounding areas within the next 30 days. A broad rollout across Ontario and Quebec will follow.
“ There’s no need for you to consider going to the cable companies any more,” said Ron Close, president of VoIP services at Bell.
Close emphasized that new phone offerings from Rogers Communications Inc. in Toronto and Montreal- based Groupe Vidéotron Ltée. do not offer enhanced call forwarding, re- direct and voicemail- to- email features, or the ability to manage accounts online.
“ These are pretty effective and powerful features,” he said.
Alicia Wanless, a research analyst with telecom consultancy The Seaboard Group, said Bell has hidden all the complexity of the technology on its network to make the service hassle- free for customers. There’s no need to install adapters, back- up power or special modems, or have a technician pay a visit.
“ The ability to just plug ( any phone) into the wall, in any jack, that’s really quite remarkable,” said Wanless, adding that because the technology is managed on Bell’s network, the service is more reliable and protected against blackouts. “ This is a wise move for Bell.”
Just as interesting, said Wanless, is Bell’s decision to sell a Lite version of the service, which can run over any highspeed Internet connection, outside of its territory of Ontario and Quebec.
Bell is initially making the Lite service available in nine western and eastern Canadian cities, including Vancouver, Calgary, Edmonton, Winnipeg and Halifax.
“ That’s probably the most exciting thing, because they’re launching this in Telus’s and Shaw’s territory,” she said. The Lite service, at a price of $34 for 1,200 long-distance minutes within a province or $39 for 1,200 long-distance minutes nationwide, would also compete directly with VoIP services offered by Vonage and BabyTel. But the major impact will be on the cable industry, which over the past several months has had early success nibbling away at Bell’s local customer base. Seaboard forecasts that the cable companies will have 250,000 VoIP phone customers by yearend.
“ If the cable companies are going to respond, the smart move would be to respond with more features, not by heading into a price war,” said Jeff Leiper, an analyst with the Yankee Group in Canada.
Taanta Gupta, a spokesperson for Rogers Cable, said the company is looking at similar services and features, “ but we won’t announce specifics until we are ready.”