1. PBRL 4014 (01) Advanced PR Management
Professor Mary Somers
Reflection Paper Assignment – Bell Canada Consumer Relations
March 7, 2011
2,334 words
B. Hawa Kombian
0523888
2. Situation Analysis
CRTC Ruling
On January 25, 2011, the Canadian Radio-telecommunications Commission (CRTC) announced a
decision allowing large internet service providers (ISPs), including Bell Canada Enterprises (Bell), to
implement usage-based billing (UBB) with their wholesale or third party ISPs (Arellano, 2011, ¶2).
Currently, large ISPs rent out bandwidth to wholesale ISPs at an unlimited rate, thus allowing
the wholesalers to set their own exclusive rates with their customers, independent from the large ISP.
Meanwhile, those who directly receive internet services from large ISPs pay a UBB rate (Hartley, 2011,
¶7).
The decision was set to take effect March 1, 2011. However, due to government, private
industry and public outcry, a review of the decision has been ordered (Hartley, 2011, ¶3).
Criticisms
The ruling was a result of a bill set forth by Bell Canada in 2010 to seek approval in operational
changes (Arellano, 2011, ¶2). Given this information, the public is sceptical of Bell’s commitment to
operating in consumers’ best interest.
Third party ISP users are calling foul on the decision which will only cover a monthly usage cap of
25GB before the kick-in of higher rates. This amounts to less than half an hour of high quality video per
day (Ly, 2011, ¶3).
The Canadian Association of Internet Providers (CAIP) and the Canadian Federation of
Independent Business (CFIB) are united against UBB. Representatives from both organizations claim that
while knowledge share via the internet continues to grow, the CRTC decision seems to be a short term
solution to a long-term social phenomenon. “While 25 GB today is probably sufficient for the average
user, we don't know what is going to happen next year, two years, or three years from now," said Tom
Copeland of CAIP (CBC, 2011, ¶14).
Critics are predicting that the introduction of wholesale UBB rates will turn small ISPs into
subsidiaries of the larger ones, resulting in a duopoly (Ly, 2011, ¶2). Despite the pending review of the
decision there is still an air of public distrust as the lead of the review committee is Mr. Bill Abbott from
Bell Canada (Schmidt, 2011, ¶4). Essentially the new ruling would seemingly stem from those with a
vested interest in pushing the legislation forward.
Public outcry
On February 2 and 3, 2011, an Angus Reid Opinion Poll revealed that 76 per cent of respondents
disagreed with the CRTC ruling. The poll was taken before the announcement of the subsequent policy
review (Taber, 2011, ¶2).
The poll revealed that the level of “strong disagreement” surpassed 50 per cent in all regions of
the country, particularly in Ontario with levels of 74 per cent (Taber, 2011, ¶7).
Further, when broken down by gender and age, 69 per cent of men opposed metered Internet
billing compared to 59 per cent for women. Meanwhile the 25 to 54 age group recorded the highest
level of dissatisfaction with 68 per cent (Taber, 2011, ¶8).
Software Glitch
In the midst of mounting criticism, Bell encountered a software glitch with their online UBB
calculator. The online calculator had been incorrectly over-calculating users’ internet usage rates and
thus effectively charging them more for the service (Marlow, 2011, ¶6).
The original notification on Bell’s website informed customers the tool had been disabled
because of “an issue that may cause internet usage shown on this site to be overstated in some cases.”
3. However, by Tuesday night, Bell changed the message slightly, replacing the word “overstated” with
“incorrect” (Marlow, 2011, ¶7).
A spokesperson said the glitch did not apply to Bell’s large contingent of DSL (digital subscriber
line) Internet customers, only to their Fibre and broadband services. Bell CEO George Cope said the
software glitch had affected around 2,700 internet customers in Ontario and Quebec (Marlow, 2011,
¶9).
Further negative coverage surrounding Bell and UBB will serve to further discredit the brand and
its image as a leader in the telecommunications market.
Client Research
Strengths and weaknesses
Bell’s strength lies in being Canada’s largest telecommunications provider; thus making it an
industry leader, powerful enough to implement real change. The organization has successfully tapped
into key consumer markets and has the ability to provide an array of modern services. Unfortunately,
being an industry leader translates into Bell appearing as the primary instigator in regulatory policy,
despite other large ISPs also reaping benefits with less backlash.
Consumer relations reputation
Initially, Bell had only planned on introducing UBB rates for wholesale customers; however the
CRTC ruled that the organization would have to implement this policy with its retail customers before
they would approve the bill (Bode, 2010, ¶2). Although the organization has not previously suffered
such negative backlash in relation to the issue, business operations caused retail consumers to become a
casualty of a broader revenue generating strategy.
Credibility with activist groups
The organization has been steadily increasing its hold on wholesale ISP consumers. In 2009, the
CRTC passed legislation allowing large ISPs to control the traffic of their third party ISP consumers
(Beltrame, 2009, ¶2). This was a stepping stone in control of internet usage. The Public Interest
Advocacy Centre’s (PIAC) representative had this to say about the issue, “ISPs should act as common
carriers and just carry traffic... now they can decide what gets through -- and how much they get to
charge you for the privilege,” (Beltrame, 2009, ¶7).
Audience Research
Bell internet wholesale consumers (small/third party ISPs)
The ruling affects this public directly therefore they needed to be effectively communicated with about
the decision and the implications. They in turn will be able to communicate the changes to their
immediate consumers.
Bell internet retail consumers
There appears to be some general confusion as to how the CRTC UBB policy will affect this public. They
do not completely understand that Bell as an ISP has different rates and costs compared to the
wholesale ISPs. Further adding to confusion is the software glitch on the online UBB calculator. This
public needs direct communication on how the policy will (or won’t) affect them and what they can
expect from the company.
4. Community/special interest groups (CAIP, CFIB, Institute for Independent Business, PIAC,
SaveOurNet.ca)
This public has membership affiliations with many of Bell’s own wholesale ISP consumers. It is
important to be willing to engage with this public and address their concerns in order to cultivate a
semblance of understanding and potential co-operation between both sides.
Media
These relationships are crucial in order to communicate key messages and as one mean of reaching
influential publics.
Industry/Competitors (EastLink, Rogers Communications Inc., Shaw Communications, Telus Canada)
Bell’s main competitors all have something to gain through the CRTC legislation. As the policy is being
reviewed it is important for Bell to understand how each organization is positioning itself in this debate.
Who is in support? Who is avoiding definitively taking a side? Who is engaging
consumers/government/special interest groups? These questions will enable Bell to better position itself
well in relation.
Objectives
Apart from plans to communicate directly with those affected by the online UBB
miscalculations, Bell does not appear to have plans to communicate with their other key consumer
publics.
In a situation involving the technicality of internet usage and the severity of the backlash, Bell
would be wise to develop impact objectives pertaining to adjusting consumer awareness and attitudes.
1. To educate Bell’s retail internet consumers (60 per cent) of the organization’s usage based
billing service packages (by May, 2011).
2. To inform Bell wholesale internet consumers customers (80 per cent) of proposed usage
based billing policy (by May, 2011) and effective implications.
3. To reverse negative public attitudes amongst Bell’s wholesale internet consumers and
special interest groups (60 and 50 per cent, respectively) towards the proposed legislation.
Bell should also be advised to engage in participation of key output objectives that will serve to
restore the brand’s reputation amongst their key consumer publics.
1. To repair online usage based billing calculator within a week of the software glitch.
2. To communicate (via general online updates, calls to those directly affected) at least once
with all affected retail customers within three weeks of the glitch and to respond to questions
and concerns while affirming Bell’s dedication to consumer services.
3. To attend at least three communication sessions with special interest groups to address
concerns in 2011.
5. Current Programming
As recently as this analysis was conducted, Bell has not commenced a detailed programming
strategy with their consumer publics.
Controlled and Uncontrolled Media
Apart from addressing the software glitch, the organization has not implemented any necessary
programming around the issue. The organization’s brand will indubitably suffer if it refuses to manage
its core relationships.
At the moment Bell has been relying on mass media new outlets to carry its messages; mainly
responding to the issue instead of effectively managing it. Few stories have been published pertaining to
consumer key messages.
Key Messages and Spokespeople
Bell has had two key spokespeople from media and government relations come forward to
address the CRTC UBB ruling. The key messages being lauded surround equalizing internet usage costs
for all consumers, focusing on the relative effect of the decision and the current internet offerings the
company provides consumers.
Jacqueline Michelis from Bell Canada media relations came forward to comment, "[That]
without wholesale usage-based billing, those heaviest bandwidth users are being subsidized by our
residential customers.” She also said that the imposition of bandwidth caps would only affect two per
cent of internet users. She further added that usage-based billing would only apply to residential users
and would not apply to Bell's business customers (CBC, 2011, ¶18).
These key messages are well defined and help provide general insight into Bell’s position on the
issue. However, given the scope of the organization’s consumer publics, greater depth and variance is
necessary to adequately inform, convince and reassure publics; all in the maintenance of credibility and
reputation.
Effective communications
According to the Consumer Relations literature on effective communications (Hendrix & Hayes,
2010, p. 259), the organization can enhance its credibility by being proactive and engaging in two-way
communication with consumers about the decision.
The online UBB software glitch has served to further dent the organization’s perceived
commitment to quality service and must be dealt with as swiftly as possible.
The organization must monitor public reactions and generate strategies that incorporate their
key publics.
Realistically, two-way communication may have to be asymmetric given the fact that the
pending decision may soon become law. It is no longer a purely regulatory topic and now has the ability
to essentially affect the entire Canadian population.
Address Glitch
In order to immediately restore confidence in the brand, Bell needs to fix the online software
glitch. It is a technical problem that has compounded a serious issue. The company did well to inform
customers and provide details for those affected. However it can begin to rebuild confidence by
responding quickly to the concerns of its affected publics.
6. Increase Communication
Bell needs to make a concrete effort to show its publics that it cares about how UBB will affect
them. Whether it is available to the public on their external website, or through a consumer portal, the
company should be posting regular responses to the issue through their website, which is an easily
accessible and cheap form of communication.
Monitor Social Media
Another recommendation is to engage in social media monitoring. Given that UBB affects
internet users, it is fitting that much of the discussion around the issue is occurring online. By conducting
social media monitoring Bell can assess the key messages that are populating the internet from
consumers, naysayers and special interest groups. By learning the most common misconceptions and
concerns around the issue, Bell will have a better idea of how to meaningfully communicate with its
various publics.
Utilise polls
Additionally, from the Angus Reid Opinion Poll, Bell has a clear understanding of the disposition
of various Canadian demographics. It already knows that it faces the most resistance in Ontario and
from the 25 to 54 age group (Taber, 2011). Given that the impact of the issue, the company can draw on
further credible polls to assess the perceptions of the public at large and use the information in forming
communications strategies.
Assess Competitors’ Communications
It is commendable that there is a clear focus on government relations to reposition the debate
to key decision makers. However, it would be detrimental to ignore the activity of similar organizations.
By assessing its competitors, Bell would be aware that Shaw Communications, based in Alberta, has
already planned community outreach meetings across the country to engage and better understand its
publics’ specific concerns (Simpson, 2011). Shaw wishes to engage their internet service users to discuss
and propose fair solutions to the issue. Bell should follow suit and look towards implementing a similar
system of community outreach.
Community Relations Meetings
Pushing past this experience, Bell needs to cultivate relationships with the very groups that are
opposed to their operations. Find out what motivates them and why. Understand their concerns and
what makes them feel threatened. In this way, Bell can position itself as a collaborative force in helping
these groups achieve their goals in a mutually beneficial manner.
Evaluation
Bell can evaluate their objectives by establishing research benchmarks from past
communication campaigns involving operational and technical service changes. Once communication
programs are implemented, they should be measured and re-evaluated at consistent intervals to ensure
efforts are maximized to create the greatest mutual benefit for Bell and its consumer publics.
The organization can measure its own communication response times amongst glitch-affected
customers and continue to build upon it. Increased communication, social media and polls can be
evaluated by determining publics’ comprehension of organizational messages through quick online
surveys with direct consumers and media monitoring with news outlets.
7. Community relations efforts can initially be measured by frequency and turnout. Given
regularity of this tactic, the frequency and resolution of key issues can be recorded to set future
benchmarks. Meanwhile, Bell can easily measure itself against top competitors like Rogers and Shaw to
establish minimum communication requirements.
8. References
Arellano, N. E. (2011). Small businesses join revolt over usage-based billing. Itbusiness.ca.
Retrieved February 9, 2011, from
http://www.itbusiness.ca/it/client/en/home/News.asp?id=61137
Beltrame, J. (2009). Web providers remain traffic cops. Winnipeg Free Press. Retrieved February 24,
2011, from http://www.winnipegfreepress.com/business/web-providers-remain-traffic-cops-
65457567.html
Bode, K. (2010). CRTC approves wholesale usage based billing. DSLReports.com. Retrieved February 24,
2011, from http://www.dslreports.com/shownews/CRTC-Approves-Wholesale-Usage-Billing
111145?nocomment=1
Canadian Broadcasting Corporation (CBC). (2011). CRTC should spur internet competition:
business. CBC. Retrieved February 9, 2011, from
http://www.cbc.ca/news/canada/story/2011/02/04/f-crtc-usage-based-billing-industry.html
Hartley, M. (2011). CRTC officially announces review of UBB based on ‘its own initiative’.Financial Post.
Retrieved February 13, 2011, from http://business.financialpost.com/2011/02/08/crtc-officially-
announces-review-of-ubb-based-on-its-own-initiative/
Hendrix, J. A., & Hayes, D. C. (2010). Public relations cases (8th ed.). Boston: Wadsworth Cengage
Learning
Ly, M. (2011). Playing duopoly. The varsity. Retrieved February 12, 2011, from
http://thevarsity.ca/articles/41844
Marlow, I. (2011). Software glitch triggers inflated data usage for some Bell customers. The Globe
And Mail. Retrieved February 11, 2011, from
http://www.theglobeandmail.com/news/technology/tech-news/ubb-internet/software glitch-
triggers-inflated-data-usage-for-some-bell-customers/article1900568/
Schmidt, S. (2011). Is CRTC showing its consumer-friendly side?. The Vancouver Sun. Retrieved
February, 20, 2011, from
http://communities.canada.com/shareit/blogs/politics/archive/2011/02/16/is-crtc-showing-its-
consumer-friendly-side.aspx
Simpson, S. (2011). Shaw seeks “fair solution for all customers” in public consultations over
usage based internet billing. The Vancouver Sun. Retrieved February 17, 2011, from
http://communities.canada.com/vancouversun/blogs/innovation/archive/2011/02/15/shaw-
seeks-quot-fair-solution-for-all-customers-quot-in-public-consultations-over-usage-based-internet-
billing.aspx
Taber, J. (2011). Majority scoffs at usage-based internet billing in poll. The Globe And Mail.
Retrieved February 16, 2011, from
http://www.theglobeandmail.com/news/politics/ottawa-notebook/majority-scoffs-at usage-
based-internet-billing-in-poll/article1897555/