Shaw is ripping the wires out of its analog FM cable radio service, formerly delivered free of charge to all Shaw subscribers.

Shaw Communications’ plans to abandon its analog cable FM radio service, delivered free of charge to basic Shaw subscribers, has been met with resistance by customers who appreciated the improved reception the service delivered.

Some noted Shaw is eliminating the free service and replacing it with one that requires a digital cable subscription to receive. Shaw:

Shaw previously offered customers access to FM radio stations free of charge with their coax cable connection, as part of their Shaw service. Given that many of our customers no longer use these stations, we are in the process of removing this service across our systems.

Removing FM radio stations allows us to free up additional bandwidth, which means Shaw can deliver faster Internet speeds, increased High-Definition content and more Shaw Exo On Demand programming. This change is part of Shaw’s dedication to providing our customers with leading edge technology through our superior Shaw Exo network.

How can I access my radio stations?

The problem with both of Shaw’s options, according to readers who have contacted Stop the Cap!, is that they come at an added cost.

“Shaw would love it if we streamed those radio stations, which all count against our bandwidth cap, instead of listening to them for free on the cable radio,” says Irene Delasquay from Prince George, B.C. “Galaxie is just a music jukebox service that requires you to buy a digital cable subscription and rent a box to listen, and I don’t want all that extra equipment and expense.”

Some wonder why Shaw is discontinuing the service in the first place. Shirley and Meg Bonney told the Comox Valley Echo:

When we finally we able to speak to a person at Shaw we were told that they “didn’t think that many people were using the FM frequencies”. Had they ever inquired? Had they even tried to find out? Or had they just made a biased assumption – perhaps to try to force people to buy their digital black box in order to access even more of their own, commercial music channels?

We were also told that the CBC frequencies were a “gift” from Shaw.

Many readers who have been in touch with Shaw are being told their best alternative is streaming radio signals over a personal computer, but that presents a problem for some who don’t have a personal computer, have located it in an inconvenient room to listen, or who do not want to waste electricity running a computer just to listen to the radio.

While cable radio is no longer common in many parts of the United States, the vast expanse of Canada combined with an often-insufficient network of low-powered FM repeater transmitters, has made reception of commercial and certain public radio signals difficult, especially inside homes.

Roger and Isabel Thomas feel the loss hurts their ability to stay in touch with informative programming long-abandoned by commercial stations and cable networks:

The FM service provided us with daylong (and night-time) enjoyable, culturally stimulating, commercial free listening. It kept us abreast of national and world-wide events and allowed us to enjoy our selection of favourite music, eclectic though it may have been.

Canadian cable, phone, and satellite providers have done a better job stymieing would-be “cord-cutters” than their counterparts further south in the United States.

The Canadian Radio-television and Telecommunications Commission’s (CRTC) annual report on the country’s telecom companies shows all of them remain exceptionally profitable, keeping pay TV customers far more effectively than American providers. Total revenues climbed from $12.5 billion to $13.5 billion in just one year, as price hikes, Internet Overcharging schemes like usage-based billing, and lack of competition continue to takes its toll on Canadian wallets.

The biggest winners were the biggest telecom companies in Canada — Rogers Communications, Bell Canada (BCE), and Shaw Communications, which all saw profits soar 8.2% to $11 billion.  Costs increased about 10.7% in 2011, fueled by network upgrades and rampant hikes in programming costs — an interesting state of affairs considering Rogers and Bell own or control a substantial number of the programmers demanding higher payments.  Most of those increases were passed on to customers in the form of rate hikes.

Although Canadians are increasingly interested in streaming online video, virtually every major Internet Service Provider in the country has effectively prevented customers from dropping cable television service in favor of broadband-only access.  They manage it with usage caps and usage billing on their broadband products.  With streamed video accounting for a substantial drain on customers’ monthly usage allowances, Canadians are unlikely to cancel cable TV in favor of watching all of their favorite shows online.

In fact, the number of Canadian households that subscribed to a cable company’s basic television service actually increased by 2.8% in 2011 to reach 8.5 million.  Experts say the country’s transition to digital over the air television may account for some of that increase, but a few high broadband bills with overlimit fees for “excessive Internet use” can effectively drive online video fans back to traditional cable TV as well.

Satellite television in Canada remained flat,  with a virtually unchanged 2.9 million Canadians relying on Bell and Shaw satellite service for television entertainment.

But everyone is paying more to watch.

In 2011, cable companies paid $2.1 billion in wholesale fees to the pay and specialty services they distribute, an increase of 10.2% over the $1.9 billion paid the previous year. The fees paid by satellite companies rose by 2.8% in one year, going from $894.4 million to $919 million.

That leaves vertically and horizontally-integrated conglomerates like Bell in the perfect position to extract higher programming payments.  Those costs are passed down to Canadian consumers and blamed on “greedy programmers,” despite the fact those programmers are owned in part or outright by Bell.

A Rogers retail rental store

Rogers is also well-suited to remain a part of the Canadian entertainment experience.  The company owns cable systems, wireless phone networks, programmers, and even home video stores. However Stop the Cap! reader Alex notes Rogers has been closing a number of those video stores over the past few months.

“This gives customers one less choice for renting movies, basically forcing them to use Rogers On Demand instead,” writes Alex.

Rogers On Demand comes with a higher price, too.  In-store rentals from Rogers are priced at 2 for $9 or 3 for $15.  A recent look at Rogers’ video on demand website, Rogers Anyplace TV, shows most movie titles priced at $4.99 each.  With Rogers closing 40 percent of their retail rental outlets, movie fans have had fewer competitive choices for movie rentals.

One potential new contender coming to Canada – kiosk video rentals.  Although services like Redbox are now commonplace in the States, they are virtually unknown in the north.  Jim Gormley, former owner of Jumbo Video is back with Planet DVD.  With just 2% of Canadians renting movies from kiosks, Gormley believes there is plenty of room to grow, especially as Rogers scales back its video rental business.

Planet DVD has a pilot project running with supermarket chain Sobeys to place kiosks in front of nine store locations.  The first kiosk was erected in early March in front of a Sobeys store in Mississauga, Ont.

A new release at a Planet DVD kiosk is priced at $3 for a one-day rental.  That’s less than what most video stores charge, but more than double what Americans pay at a Redbox kiosk.

Just a few weeks after announcing $2 rate increases on most tiers of the company’s broadband service, Rogers Communications has announced speed upgrades and tiny increases in usage allowances for certain customers:

• Express: download speeds will increase from up to 12Mbps to up to 18Mbps and data allowance will increase from 60GB to 70GB.
• Extreme: download speeds will increase from up to 24Mbps to up to 28Mbps and data allowance will increase from 100GB to 120GB.

These enhancements apply to customers utilizing Rogers DOCSIS 3.0 capabilities. Rogers will start rolling out the faster speeds to existing Express tier customers currently receiving download speeds of up to 12 Mbps starting January 26^th and will continue over the following weeks. New customers will experience faster speeds beginning February 21^st. All new and existing customers will benefit from higher data allowances starting March 8^th.

Rogers has played repeatedly with their usage allowances, particularly for its Extreme tier, which has seen increases and decreases over the past few years:

Rogers Extreme Tier Usage Cap History

• 2009: 95GB per month
• 2010: Reduced to 80GB per month (-15GB)
• 2011: Increased to 100GB per month (+20GB)
• 2012: Increased to 120GB per month (+20GB)

Rogers’ Express service gets just a 10GB monthly bump, making the speed upgrade less valuable because customers are restrained from using the service.

Rogers says the incremental upgrades are a result of Canadians using the Internet more than ever.

“Rogers customers are increasingly watching movies on Rogers on Demand Online, working from home and using multiple devices like tablets and laptops connected by Wi-Fi to the internet,” said John Boynton, executive vice-president and chief marketing officer at Rogers Communications. “The ways Canadians are using the internet are changing dramatically and we are constantly reviewing our plans and policies to ensure they deliver the best possible customer experience that lines up with evolving needs and usage patterns.”

Apparently those living in western Canada use the Internet even more, because Shaw Communications’ comparable broadband tiers are much more generous:

Shaw Communications Usage Allowances

• High Speed 10Mbps: 125GB per month
• High Speed 20Mbps: 200GB per month
• Broadband 50Mbps: 400GB per month

Katz

A former executive at Bell Canada and Rogers Communications has been named interim chairman of Canada’s telecommunications regulator.

Current Canadian Radio-television Telecommunications Commission (CRTC) vice-chairman Leonard Katz was appointed interim chairman Wednesday, following the departure of Konrad von Finckenstein.

Katz is not expected to hold the position for long.  Political insiders point to Conservative government favorite Tom Pentefountas, who has spent months lobbying for the CRTC top spot.  In July, Pentefountas asked a consumer group, “what is so undemocratic about allowing a few companies to control the Internet?”

Katz is yet another regulator who has spent most of his professional life working for the companies he is now expected to oversee.  Katz held senior posts at both Bell and Rogers, Canada’s largest telecommunications companies, before joining the CRTC in 2005.  He has served as its vice-chairman since 2007.

Katz has crossed swords with the Conservative government led by Stephen Harper on more than one occasion, most recently being embroiled in the controversy over Usage Based Billing.  An initial decision by the CRTC to adopt much of a plan submitted by Bell that would end unlimited flat rate access to the Internet in Canada was reversed by then-Industry Minister Tony Clement.  The government’s decision to overrule the Commission opened the door for ridicule by opposition Liberal and NDP MPs, who questioned the credibility of the CRTC and its authority under Conservative leadership.

Departing chairman Von Finckenstein blamed outdated regulatory policies for much of the controversy at the CRTC.  The government agency has been forced to adopt a largely deregulatory stance towards telecommunications, and has regularly been accused of catering to the interests of some of Canada’s largest telecommunications companies.

In the past several years, the CRTC has overseen a telecommunications marketplace that is rapidly consolidating, especially around companies like Bell, Rogers, and Shaw Communications, which have interests in broadcasting, publishing, entertainment, and telecommunications services.

Pentefountas

Katz could be replaced as early as this fall, and the controversial Conservative Montreal lawyer Tom Pentefountas remains the favorite pick among political watchers in Ottawa.

But Pentefountas has his enemies.  He has been roundly attacked for lacking the necessary experience and credentials to act as a commissioner on the CRTC, much less serve as its chairman, particularly by NDP Heritage Minister Critic Charlie Angus (Timmins-James Bay).

Pentefountas, Angus claimed, told national media five months after being considered for the post of vice-chairman of the CRTC, “he didn’t know anything about the job.”

One unnamed source told Postmedia News Mr. Pentefountas may not grasp the transformational nature of the Internet and its impact on traditional broadcasting and telecommunications companies.

“He’s occasionally comes out of left field,” the source said.

[flv]http://www.phillipdampier.com/video/Charlie Angus on CBC on CRTC 2-10-11.flv[/flv]

CBC-TV aired this exchange last February between NDP Heritage Critic Charlie Angus (Timmins/James Bay), Dean Del Mastro, Parl. Secretary for the Minister of Heritage, and Liberal MP Marc Garneau (Westmount/Ville-Marie) regarding Tom Pentefountas, the challenges at the CRTC, and controversy over a new policy that would allow the reporting of “false news.”  (12 minutes)

Ex-CEO Jim Shaw earns even more not working for the cable company his father founded.

The ex-CEO of Shaw Communications is a charter member of the 1% Club, raking in more than $25 million from a golden parachute retirement package cable customers are paying as part of their ever-increasing monthly cable bills.

Jim Shaw earned $1.2 million in 2011 from his duties as chief executive.  But when the 53-year old decided early retirement was right for him, the company that shares his name provided a generous $25.5 million parting gift.  That’s a golden parachute package equivalent to what more than 2,000 lower-middle class Canadians earn each year.

What makes Jim Shaw worth that much?  Company officials claim the departing CEO helped the company earn new revenue.  But Shaw subscribers know the recipe for higher revenue is easy to make — annual rate increases and overpriced products and services.

Shaw didn’t have much of a fight justifying his departing pay package.  Not with his father J.R. Shaw holding 79 percent of the cable company’s Class A voting stock.  The Shaw family has been especially generous with themselves in 2011.  Brother Brad pocketed $15.8 million this year for himself.

The Shaw Executive Money Party has grown so large, the company’s top six paid officers collectively walked away with compensation of $82.2 million in 2011, $1.5 million more than Shaw Communications earned in the entire fourth quarter of 2010.  Imagine one-quarter of your company’s earnings headed straight into the pockets of a half-dozen employees, often immediate family members of the CEO or company founder.

Even those sums are dwarfed by the $330 million the company has now set aside to guarantee executive pensions, even as Shaw’s lower level employees (and most of their customers) see their incomes continue to stagnate, if not outright decline.

That three Shaw family members collectively grabbed $58.6 million from the company accounts is not welcome news for shareholders.  Jim Shaw’s exit package in particular proved galling for some, particularly because he effectively sabotaged his own standing with image-damaging public comments and an abrasive management style.

“There was a lot of institutional backlash over the pension given to Jim on his departure because it was rather monstrous,” one pension fund adviser was reported as saying in the Edmonton Journal. “This is just another piece that will get everybody upset.”

Shareholders are also unimpressed with the value of their Class B Shaw stock, which has remained lackluster since 2006.

While top management earned big, Shaw has alienated customers with legendary call holding times that can extend for hours, annual rate increases for cable service, and less-than-impressive customer satisfaction scores.

Shaw is western Canada’s dominant cable operator.