PHONE DEREGULATION IS HERE
Long, long ago, way back in June, 1987 I wrote a column about the
Cam-Net autodialer. At that time I had been using it for several
months and found it remarkable. It has allowed me to phone anywhere
in the world, excluding Canada and Washington State, at rates 20 to
79 percent lower than charged by the former local monopoly holder of
all telephone rights - B.C. Tel. My savings during the past four
years have been substantial to say the least.
Naturally B.C. Tel was not amused by this upstart that dared
challenge their monopoly. Through various pressures B.C. Tel tried
to make this nuisance go away. They appealed to the C.R.T.C., courts,
etc. All backed away as Cam-Net's operation was not illegal.
Canadians, being a meek lot and vulnerable to indoctrination,
couldn't believe what they had been told all along was untrue. This
is one reason why I think that up to 85 percent of what we have been
taught in school and by our culture will be proven wrong. But back
to Cam-Net.
Ever since this small company got into business they were forced
to have customers reach their world-wide robotically-automated
switching system in Lynden, Washington routed from Vancouver through
the B.C. Tel network. B.C. Tel instantly substantially increased the
charges for Cam-Net calls to travel that short distance. Cam-Net's
business continued to grow because an increasing number of customers
found the service a bargain even with the annoying B.C. Tel charge to
the border.
Now new age technology will allow Cam-Net to run its traffic over
a leased CNCP fibre-optic line from Vancouver and jump over the
border via digital radio to Sumas, Washington where another fibreoptic link will carry calls to Cam-Net's network in Seattle. The
previous exhorbitant Vancouver-to-the-border charge will evaporate as
Cam-Net upgrades its Vancouver operation. The new process went into
operation mid-1990. Cam-Net claims that customer savings will
double. In June Cam-Net tied in with the cross-Canada CNCP link and
offered, for the first time, calls within Canada to Alberta, Ontario
and Quebec, again at substantial savings. As soon as some pending
legislative changes are enacted, they will cover the rest of the
country. The new game has begun.
Now for the first time in history Vancouverites have a real choice
... You can phone a Vancouver number, have your call go via the
modern fibre-optic line to the border, enter the Cam-Net robot
switcher on the U.S. side and then go anywhere in the world. With
pre-programmed auto dialers you only have to press one button to
accomplish this.
But the story does not end here. The biggest hurdle for Cam-Net
was that a Canadian company was unable to do business throughout
Canada. This came to an end. Vancouverites can now phone anywhere
in Canada via the Cam-Net non-monopolistic network. Cam-Net estimates
customers will save 20 to 25 percent over previous rates.
Why am I such a fan of this service? Because monopolies are not
advantageous to small business or the individual. Since 1984 at
least, Canadians have been over-paying for long distance phone
service while phone company executives have been drawing excessive
salaries, running up exorbitant expenses and have been increasing
company profits with now unacceptable techniques. How did this work?
Under C.R.T.C. regulations phone companies are allowed to make a
fixed margin of profit of 14 percent after costs. So all a phone
company had to do when their profit went over the limit was to
increase costs ... buy more limousines, fly around the world checking
(ostensibly) on other phone companies, or give the president another
$100,000 raise. The customer has already paid for this with that
extra profit they now have to spend. For a century phone companies
have been making substantial profits (basically guaranteed by their
CRTC-enforced monopoly) because they had no competition. A new age
dawns: social and economic accountability.
Make your own decision about phone service, but to consider an
alternative, see below.
More information:
Jay Mantil,
Cam-Net Communications Inc.,
885 Dunsmuir St.
Vancouver, BC V6C 1N5.
Phone: 604/684-4111.
(Editor's Note: Frank Ogden advises that he holds 100 shares of
Cam-Net common stock, which allows him to attend
their private shareholders' meetings.)
(Cam-Net's new rates are in the following box.)
Direct dialing per minute daytime phone rates 8 am to 6 pm.
From Vancouver to Following U.S. Cities:
Local Price City Call Cam-Net Savings
Company Alternative.
B.C. TEL .43 Seattle .26 40%
.63 Chicago .38 40%
.61 Los Angeles .37 40%
.63 Miami .38 40%
.63 New York .38 40%
.63 St. Louis .38 40%
* * *
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