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Shaw to Vonage Canada: You Are Wrong and Misleading
[March 08, 2006]

Shaw to Vonage Canada: You Are Wrong and Misleading

TMCnet Contributing Editor
"Vonage's news release concerning Shaw's quality of service enhancement is both wrong and misleading," declared Jim Shaw, CEO, Shaw Communications Inc., in response to Vonage Canada's action of seeking help from the Canadian Radio-television and Telecommunications Commission’s (CRTC).

The cable operator is currently charging Vonage subscribers a $10 "quality of service enhancement" fee, or hidden VoIP tax. Vonage Canada expressed that Shaw's actions may lead Vonage subscribers to switch to the operator's own VoIP offering.

Shaw claims that its digital phone service offering does not directly compete with Vonage's VoIP-based calling service.
According to the Shaw's news release, "Shaw's Digital Phone service is a carrier-grade, primary line, local and long distance residential telephone service that uses a managed IP network. Shaw Digital phone calls travel directly from Shaw's secure private network to the tried-and-true public telephone system. They do not travel over the Internet. The result is a more reliable and higher quality phone service."
Shaw also mentioned that VoIP service providers don't offer the same level of 911 access as Shaw does or as legacy phone service providers offer.
Shaw's president, Peter Bissonnette claimed that Vonage's dispute is a publicity stunt because the company is very close to filing for an IPO.
"This is an old and tired complaint from Vonage," said Bissonnette. "We find the timing of this news release to be somewhat curious. We think it has more to do with their Initial Public Offering and the fact they have so few customers in Canada rather than any real concerns about consumers. Our customers have always enjoyed the best High Speed Internet service in Western Canada."
Vonage Canada
Shaw Communications
Johanne Torres is contributing editor for TMCnet and Internet Telephony magazine. To see more articles by Johanne Torres, please visit Johanne Torres' columnist page

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