SlideShare a Scribd company logo
1 of 8
Download to read offline
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
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.”
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.
 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.
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.
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.
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.
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/

More Related Content

What's hot

Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...Ed Dodds
 
Service Voucher and Customer Right to Choose Social and Healthcare Services
Service Voucher and Customer Right to Choose Social and Healthcare ServicesService Voucher and Customer Right to Choose Social and Healthcare Services
Service Voucher and Customer Right to Choose Social and Healthcare ServicesPalveluseteli-hanke
 
Verizon Communications Inc, Industry External Analysis
Verizon Communications Inc, Industry External AnalysisVerizon Communications Inc, Industry External Analysis
Verizon Communications Inc, Industry External AnalysisMaximilian Mirra
 
Pricing trends for communication services in the UK - May 2018
Pricing trends for communication services in the UK - May 2018Pricing trends for communication services in the UK - May 2018
Pricing trends for communication services in the UK - May 2018Portal Mediatelecom
 
My Original "Business Plan"
My Original "Business Plan"My Original "Business Plan"
My Original "Business Plan"John Cochrane
 
Hank torbert p.10-11
Hank torbert p.10-11Hank torbert p.10-11
Hank torbert p.10-11hanktorbert
 
Final presentation New Media Ethics
Final presentation New Media EthicsFinal presentation New Media Ethics
Final presentation New Media EthicsTeichka Muñoz
 
BIA/Kelsey's Local Commerce Monitor, Wave 16 - Core Highlights
BIA/Kelsey's Local Commerce Monitor, Wave 16 - Core HighlightsBIA/Kelsey's Local Commerce Monitor, Wave 16 - Core Highlights
BIA/Kelsey's Local Commerce Monitor, Wave 16 - Core HighlightsBIA/Kelsey
 
Sookman casl and universities
Sookman casl and universitiesSookman casl and universities
Sookman casl and universitiesbsookman
 
EC2017 United Kingdom
EC2017  United KingdomEC2017  United Kingdom
EC2017 United KingdomRobert Bond
 
Strategic group map
Strategic group mapStrategic group map
Strategic group mapDavid Green
 
CS4001 Final Ethics Paper
CS4001 Final Ethics PaperCS4001 Final Ethics Paper
CS4001 Final Ethics PaperGino McCarty
 
The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...
The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...
The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...NAFCU Services Corporation
 
Broadband Around the World final
Broadband Around the World finalBroadband Around the World final
Broadband Around the World finalJennifer Terry
 
Mega-Mergers and Impacts on Local Government
Mega-Mergers and Impacts on Local GovernmentMega-Mergers and Impacts on Local Government
Mega-Mergers and Impacts on Local GovernmentBest Best and Krieger LLP
 
Nick Economides: Net Neutrality on the Internet
Nick Economides: Net Neutrality on the InternetNick Economides: Net Neutrality on the Internet
Nick Economides: Net Neutrality on the InternetARNIC
 
alltel 4Q 04_Earningsrelease
alltel  4Q 04_Earningsreleasealltel  4Q 04_Earningsrelease
alltel 4Q 04_Earningsreleasefinance27
 

What's hot (18)

Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
 
HiltonE2
HiltonE2HiltonE2
HiltonE2
 
Service Voucher and Customer Right to Choose Social and Healthcare Services
Service Voucher and Customer Right to Choose Social and Healthcare ServicesService Voucher and Customer Right to Choose Social and Healthcare Services
Service Voucher and Customer Right to Choose Social and Healthcare Services
 
Verizon Communications Inc, Industry External Analysis
Verizon Communications Inc, Industry External AnalysisVerizon Communications Inc, Industry External Analysis
Verizon Communications Inc, Industry External Analysis
 
Pricing trends for communication services in the UK - May 2018
Pricing trends for communication services in the UK - May 2018Pricing trends for communication services in the UK - May 2018
Pricing trends for communication services in the UK - May 2018
 
My Original "Business Plan"
My Original "Business Plan"My Original "Business Plan"
My Original "Business Plan"
 
Hank torbert p.10-11
Hank torbert p.10-11Hank torbert p.10-11
Hank torbert p.10-11
 
Final presentation New Media Ethics
Final presentation New Media EthicsFinal presentation New Media Ethics
Final presentation New Media Ethics
 
BIA/Kelsey's Local Commerce Monitor, Wave 16 - Core Highlights
BIA/Kelsey's Local Commerce Monitor, Wave 16 - Core HighlightsBIA/Kelsey's Local Commerce Monitor, Wave 16 - Core Highlights
BIA/Kelsey's Local Commerce Monitor, Wave 16 - Core Highlights
 
Sookman casl and universities
Sookman casl and universitiesSookman casl and universities
Sookman casl and universities
 
EC2017 United Kingdom
EC2017  United KingdomEC2017  United Kingdom
EC2017 United Kingdom
 
Strategic group map
Strategic group mapStrategic group map
Strategic group map
 
CS4001 Final Ethics Paper
CS4001 Final Ethics PaperCS4001 Final Ethics Paper
CS4001 Final Ethics Paper
 
The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...
The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...
The New CFPB, New Simplified Disclosures & How Your Credit Union Will Be Affe...
 
Broadband Around the World final
Broadband Around the World finalBroadband Around the World final
Broadband Around the World final
 
Mega-Mergers and Impacts on Local Government
Mega-Mergers and Impacts on Local GovernmentMega-Mergers and Impacts on Local Government
Mega-Mergers and Impacts on Local Government
 
Nick Economides: Net Neutrality on the Internet
Nick Economides: Net Neutrality on the InternetNick Economides: Net Neutrality on the Internet
Nick Economides: Net Neutrality on the Internet
 
alltel 4Q 04_Earningsrelease
alltel  4Q 04_Earningsreleasealltel  4Q 04_Earningsrelease
alltel 4Q 04_Earningsrelease
 

Viewers also liked

Viewers also liked (14)

Kombian_4019_Crisis_Reponse__3aa
Kombian_4019_Crisis_Reponse__3aaKombian_4019_Crisis_Reponse__3aa
Kombian_4019_Crisis_Reponse__3aa
 
Modul mikrotik-2.8.26
Modul mikrotik-2.8.26Modul mikrotik-2.8.26
Modul mikrotik-2.8.26
 
Effective PR Management
Effective PR ManagementEffective PR Management
Effective PR Management
 
HKombian s3023036 - Geopolitics paper Nov 2015
HKombian s3023036 - Geopolitics paper Nov 2015HKombian s3023036 - Geopolitics paper Nov 2015
HKombian s3023036 - Geopolitics paper Nov 2015
 
IDAP College 4.12.15
IDAP College 4.12.15IDAP College 4.12.15
IDAP College 4.12.15
 
Kombian_4019_Crisis Reponse #1
Kombian_4019_Crisis Reponse #1Kombian_4019_Crisis Reponse #1
Kombian_4019_Crisis Reponse #1
 
Understanding Culture for the Management of New Diverse Teams in the Workplac...
Understanding Culture for the Management of New Diverse Teams in the Workplac...Understanding Culture for the Management of New Diverse Teams in the Workplac...
Understanding Culture for the Management of New Diverse Teams in the Workplac...
 
історія розвитку Ibm
історія розвитку Ibm історія розвитку Ibm
історія розвитку Ibm
 
Student Leadership Presentation_YMH
Student Leadership Presentation_YMHStudent Leadership Presentation_YMH
Student Leadership Presentation_YMH
 
Aia group limited and its subsidiaries
Aia group limited and its subsidiariesAia group limited and its subsidiaries
Aia group limited and its subsidiaries
 
Liberalism
LiberalismLiberalism
Liberalism
 
Diago's HR CV
Diago's HR CVDiago's HR CV
Diago's HR CV
 
HKombian s3023036 - Anthro Final Paper
HKombian s3023036 - Anthro Final PaperHKombian s3023036 - Anthro Final Paper
HKombian s3023036 - Anthro Final Paper
 
Natinal Security
Natinal SecurityNatinal Security
Natinal Security
 

Similar to Advanced PR Mgmt - Reflective Paper

For Cable Tv A Bad Signal. Viewers Are Fading To Black
For Cable Tv A Bad Signal. Viewers Are Fading To BlackFor Cable Tv A Bad Signal. Viewers Are Fading To Black
For Cable Tv A Bad Signal. Viewers Are Fading To BlackOksana Beregova
 
All the q about net neutrality.1. Who is in favor of net neutralit.pdf
All the q about net neutrality.1. Who is in favor of net neutralit.pdfAll the q about net neutrality.1. Who is in favor of net neutralit.pdf
All the q about net neutrality.1. Who is in favor of net neutralit.pdfakashborakhede
 
Press Release Global Consumer Survey Mwc 2012
Press Release Global Consumer Survey Mwc 2012Press Release Global Consumer Survey Mwc 2012
Press Release Global Consumer Survey Mwc 2012Rob Van Den Dam
 
OgilvyRED - Dollars and Sense of Connectivity
OgilvyRED - Dollars and Sense of ConnectivityOgilvyRED - Dollars and Sense of Connectivity
OgilvyRED - Dollars and Sense of ConnectivityOgilvy
 
Craigs Summit Presentation
Craigs Summit PresentationCraigs Summit Presentation
Craigs Summit Presentationritterim
 
Global Evolution of Data Sharing
Global Evolution of Data SharingGlobal Evolution of Data Sharing
Global Evolution of Data SharingPERC
 
Zahid Hussain - Internet Tv Aug 2008 Poland
Zahid Hussain - Internet Tv Aug 2008 PolandZahid Hussain - Internet Tv Aug 2008 Poland
Zahid Hussain - Internet Tv Aug 2008 Polandguest4d4d00
 
TILA-RESPA Short Essay
TILA-RESPA Short EssayTILA-RESPA Short Essay
TILA-RESPA Short EssayKristina Kivi
 
Marketing management power slide usa 2022
Marketing management power slide usa 2022Marketing management power slide usa 2022
Marketing management power slide usa 2022ShashwatAgnivanshi
 
Wireless at a Crossroads
Wireless at a CrossroadsWireless at a Crossroads
Wireless at a CrossroadsCognizant
 
Having low profit sharing ratios, vietnamese mobile content provider c ps hav...
Having low profit sharing ratios, vietnamese mobile content provider c ps hav...Having low profit sharing ratios, vietnamese mobile content provider c ps hav...
Having low profit sharing ratios, vietnamese mobile content provider c ps hav...Brian TRAN
 
BELTUG_competition study with notes_web
BELTUG_competition study with notes_webBELTUG_competition study with notes_web
BELTUG_competition study with notes_websasvangent32
 
The battle over net neutrality
The battle over net neutralityThe battle over net neutrality
The battle over net neutralityniz73
 
EvolutionArticle2011
EvolutionArticle2011EvolutionArticle2011
EvolutionArticle2011Raoul De Sota
 
Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)
Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)
Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)Rob Van Den Dam
 
State Cable & Telecommunication Deregulation
State Cable & Telecommunication DeregulationState Cable & Telecommunication Deregulation
State Cable & Telecommunication DeregulationBest Best and Krieger LLP
 

Similar to Advanced PR Mgmt - Reflective Paper (20)

Aol term paper
Aol term paperAol term paper
Aol term paper
 
For Cable Tv A Bad Signal. Viewers Are Fading To Black
For Cable Tv A Bad Signal. Viewers Are Fading To BlackFor Cable Tv A Bad Signal. Viewers Are Fading To Black
For Cable Tv A Bad Signal. Viewers Are Fading To Black
 
All the q about net neutrality.1. Who is in favor of net neutralit.pdf
All the q about net neutrality.1. Who is in favor of net neutralit.pdfAll the q about net neutrality.1. Who is in favor of net neutralit.pdf
All the q about net neutrality.1. Who is in favor of net neutralit.pdf
 
Press Release Global Consumer Survey Mwc 2012
Press Release Global Consumer Survey Mwc 2012Press Release Global Consumer Survey Mwc 2012
Press Release Global Consumer Survey Mwc 2012
 
OgilvyRED - Dollars and Sense of Connectivity
OgilvyRED - Dollars and Sense of ConnectivityOgilvyRED - Dollars and Sense of Connectivity
OgilvyRED - Dollars and Sense of Connectivity
 
Craigs Summit Presentation
Craigs Summit PresentationCraigs Summit Presentation
Craigs Summit Presentation
 
Global Evolution of Data Sharing
Global Evolution of Data SharingGlobal Evolution of Data Sharing
Global Evolution of Data Sharing
 
Media Update - July 2011
Media Update - July 2011Media Update - July 2011
Media Update - July 2011
 
Zahid Hussain - Internet Tv Aug 2008 Poland
Zahid Hussain - Internet Tv Aug 2008 PolandZahid Hussain - Internet Tv Aug 2008 Poland
Zahid Hussain - Internet Tv Aug 2008 Poland
 
TILA-RESPA Short Essay
TILA-RESPA Short EssayTILA-RESPA Short Essay
TILA-RESPA Short Essay
 
Marketing management power slide usa 2022
Marketing management power slide usa 2022Marketing management power slide usa 2022
Marketing management power slide usa 2022
 
Wireless at a Crossroads
Wireless at a CrossroadsWireless at a Crossroads
Wireless at a Crossroads
 
Having low profit sharing ratios, vietnamese mobile content provider c ps hav...
Having low profit sharing ratios, vietnamese mobile content provider c ps hav...Having low profit sharing ratios, vietnamese mobile content provider c ps hav...
Having low profit sharing ratios, vietnamese mobile content provider c ps hav...
 
BELTUG_competition study with notes_web
BELTUG_competition study with notes_webBELTUG_competition study with notes_web
BELTUG_competition study with notes_web
 
Industry Analysis
Industry AnalysisIndustry Analysis
Industry Analysis
 
The battle over net neutrality
The battle over net neutralityThe battle over net neutrality
The battle over net neutrality
 
The battle over net neutrality
The battle over net neutralityThe battle over net neutrality
The battle over net neutrality
 
EvolutionArticle2011
EvolutionArticle2011EvolutionArticle2011
EvolutionArticle2011
 
Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)
Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)
Telcos Strategic Positioning in the New World (Slovenia Telco Day 2013)
 
State Cable & Telecommunication Deregulation
State Cable & Telecommunication DeregulationState Cable & Telecommunication Deregulation
State Cable & Telecommunication Deregulation
 

Advanced PR Mgmt - Reflective Paper

  • 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/