By Alastair Sharp
TORONTO, March 1 (Reuters) - Consumer advocates accused
Canadian telecom and cable companies of failing to adequately
promote the launch on Tuesday of cheaper basic packages of
television channels under sweeping new rules imposed by the
country's broadcast regulator.
Rogers Communications Inc RCIb.TO and BCE Inc's BCE.TO
Bell, two of Canada's biggest distributors, listed the C$25
($18.57) basic service on their websites by the March 1
deadline, but placed the "skinny" packages and smaller groups of
add-on channels below more expensive and expansive offerings.
A Rogers comparison page showed the basic bundle was
costlier than more comprehensive options once C$58 for
"something for everyone" was added. Bell's Starter pack does not
qualify for rental fee waivers and bundle discounts.
"The big telecom companies are trying to strangle the C$25
package at birth," said Josh Tabish, campaigns director at
consumer advocacy group OpenMedia.
University of Ottawa law professor Michael Geist noted the
Rogers package includes major U.S. networks, while Bell's does
not.
Bell's basic offering "is not designed for anyone to buy,"
he said.
CBC News reported last week that both companies planned to
downplay the cheaper products, citing an internal Bell document
and interviews with unnamed employees.
Bell declined to comment on the anonymous claims but said
its packages and marketing comply with the rules adopted by the
Canadian Radio-television and Telecommunications Commission
(CRTC) in March 2015.
Rogers said it has trained staff to help customers "find the
option that best meets their needs."
The new CRTC rules also include a provision requiring all
extra channels be offered individually by December.
The sweeping change to how Canadians access their favorite
television shows followed complaints from consumers who did not
want to pay for channels they did not watch.
It also came as low-priced streaming services such as
Netflix Inc NFLX.O challenge the dominance of major Canadian
television providers, which also include Telus Corp T.TO , Shaw
Communications Inc SJRb.TO and Quebecor QBRb.TO .
Ryan Bushell, a portfolio manager at Leon Frazer who holds
stakes in BCE, Telus, Rogers and Shaw, said the cheaper service
would cut profits, though some customers looking to cancel might
instead move to cheaper subscriptions.
He said the cost of upgrading networks for ever-faster
Internet connections was a bigger issue, especially for
telecommunications companies.
"The trend for TV revenues per household is down," Bushell
said. "The question will be how much and how fast they can make
it up on the Internet side."
($1 = 1.3463 Canadian dollars)
(Editing by Paul Simao)