Profits but at what cost?

My brother is dating a girl from the Philippines.  She has a sister that work at a calling centre there for Bell Canada.  I learned that she gets paid about $30/week.  Absolutely pathetic and here is why:

Bell Canada’s Profit Doubles


Last year Canadian incumbent Bell Canada throttled the bandwidth of wholesale competitors, so they couldn’t offer unthrottled services that were better than Bell’s own, throttled DSL service. The company then started pushing for usage-based billing (UBB) for wholesalers, meaning competitors would now be paying for bandwidth on both ends (smaller Canadian ISPs lament this as double dipping and a tactic designed to drive them out of business). Bell Canada has justified the moves by saying they’re financially necessary in order to fund network expansion. However, BCE‘s earnings this week indicate the company’s profit more than doubled. Why was usage-based billing necessary again? Surely someday, somebody is going to notice that the North American ISPs who claim expensive new metering models are financially necessary are never able to prove it.
So in 2009 their profits doubled.  That means an increase of 100%.  Keep this number in mind for this next bit.

Bell Canada Enterprises profit up 84 per cent

Bell Canada Enterprises Inc. (TSE: BCE) released its financial results Thursday for 2009, with revenues nearly unchanged from 2008 and a slight drop in operating income from wireless services.
In 2009, BCE reported net earnings of $1.738 billion, up 84 per cent from $943 million in 2008. Revenues for 2009 were $17.735 billion, up 0.4 per cent from $17.661 billion in 2008.
The financial results were released the same day Bell Canada announced its Fibe Internet service, which boasts download speeds of up to 25 Megabits per second (Mbps), is available in Montreal and the greater Toronto area. Fibe Internet is not fibre to the home, but uses the second generation of Very High Bitrate Digital Subscriber Line (VDSL2) “enhancements” to its fibre to the node network.
But the carrier has promised to deliver fibre to the home to all new urban housing developmentsin Ontario and Quebec during the second half of 2010.

Bell also overlaid its cellular wireless network, based on the Code Division Multiple access protocol, with High Speed Packet Access (HSPA)last year, meaning it can now offer both CDMA handsets and the same devices as Rogers Communications Inc.

“Our strategic commitment to invest in broadband networks and services continues, with both our new HSPA network introduction on the wireless side and the significant investments in new fibre rollouts announced today that we are undertaking to support high-speed Bell Internet and Bell TV,” BCE CEO George Cope stated in a company press release.
Wireless revenues increased five per cent in 2009, to $1.198 billion, from $1.133 in 2008. But operating income for the wireless side was $226 million, down from $280 million in 2008.
Gross activations of wireless accounts in 2009 came in at 163,000, up from 117,000 in 2008. But average revenue per user dropped, from $54.22 in 2008 to $51.08 in 2009. The ARPU for postpaid wireless subscribers was $65.69 in 2008 but dropped to $62.47 in 2009.

Bell said its fibre to the building rollout to apartments and condos will give 60 Mbps service in Ontario and Quebec by the end of 2012.

This is a more detailed explanation.  So let’s play with a few numbers shall we?
$1.738 Billion!  If BCE were to divide that up equally to ALL CANADIANS(in 2009, 33,894,000 pop.), they would get $51.  Seriously, this company made enough money to give every, single Canadian $51.  You think they could afford to pay their call centre employees just a wee bit more?

About DragonDon

Having a love of travel has lead me to move to South Korea in 2010. Moving to an Eastern culture from a Western culture is a wild experience and there is never a dull day!
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