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Shaw Sues Novus For Defamation
For pointing out Shaw engaged in predatory pricing...
by Karl Bode Tuesday 25-Aug-2009 tags: prices · competition · business · bandwidth · cable · Novus Entertainment Inc
Canadian Cable operator Shaw recently dropped a pricing bomb on Vancouver, offering 15Mbps broadband, 200 channels of TV, or voice service for about $9 US for each service. It's an unheard of deal, and Shaw is clearly taking a loss in the city in order to crush Novus Entertainment, a local FTTH operator. As we noted in July, Novus responded with a fairly smart ad campaign (Twitter, Facebook, and blogs) aimed at informing Shaw customers outside of Vancouver of the deal they were missing, and urging them to call in to complain. Shaw's responded with a defamation suit against Novus:

Calgary-based Shaw, which has more than two million customers, mostly in Western Canada, has fired back by filing a defamation lawsuit against Novus in B.C. Supreme Court. Shaw president Peter Bissonnette said Novus is spreading misinformation. The offer isn't just targeted at Novus customers but residents of West Vancouver in general, which is a "highly competitive" market.

Of course there's not an ISP in business who'll admit they do business in anything but the most competitive of markets. But were this really about Shaw being generally competitive, they'd offer the $9 promotion in their other "highly competitive" markets as well.

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ThrowDemsOut
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1 edit

Novus sued 1st and Shaw lawyers responded - surprise!

Novus filed the 1st lawsuit over this and it isn't very surprising that Shaw fired back with their own lawsuit. Dueling lawsuits is std business practice in the world of large companies. You sue me, then I will sue you and then we will settle out of court to cut down those legal bills.

The company filed a complaint over Shaw's pricing in July with the Competition Bureau and launched a lawsuit in B.C. Supreme Court.

Calgary-based Shaw, which has more than two million customers, mostly in Western Canada, has fired back by filing a defamation lawsuit against Novus in B.C. Supreme Court.
Proving predatory pricing is very hard to do because the real incremental costs of a service is usually well hidden from competitors and even regulators. Novus could be out of business before they ever got enough proof together to make their case. My guess is they will both come to a settlement of some sort and prices will go back to normal.

And this is what started the war. Novus blocked Shaw from new apartment buildings thru contracts while the buildings were being built.
Novus has for the past three years blocked access to Concord Pacific buildings, where Shaw has not been allowed to lay wiring while they were being built.

"Those buildings up until recently have never had access to our services," he said.
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Re: Novus sued 1st and Shaw lawyers responded - surprise!

Proving predatory pricing is very hard to do because the real incremental costs of a service is usually well hidden from competitors and even regulators.
It doesn't exactly take a recombinant gene technologist to see that $9 for 200 SD and 25+ HD channels is artificially low.

ThrowDemsOut
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2 edits

Re: Novus sued 1st and Shaw lawyers responded - surprise!

said by Karl Bode:

Proving predatory pricing is very hard to do because the real incremental costs of a service is usually well hidden from competitors and even regulators.
It doesn't exactly take a recombinant gene technologist to see that $9 for 200 SD and 25+ HD channels is artificially low.
The story doesn't say, but is that $9.95 rate for a LIMITED time period? Sort of like the discounted rates all cable companies use. In those cases, some costs are eaten to conquer new customers from a competitor. And proving something in court isn't the same as assuming they are below cost.
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cdru
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Re: Novus sued 1st and Shaw lawyers responded - surprise!

According to the Shaw ad image here, the 9.95 plan is promotional. It's actually free the first two months, then $9.95/service for months 3-12. My guess is that it's just a standard 12-month promotional rate and what's available at the end has not been decided.

baineschile
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said by Karl Bode:

Proving predatory pricing is very hard to do because the real incremental costs of a service is usually well hidden from competitors and even regulators.
It doesn't exactly take a recombinant gene technologist to see that $9 for 200 SD and 25+ HD channels is artificially low.
Direct TV has ads now where one gets 5 Months free!!! Sounds grea.*

*With a 30 month contract, where months 6-30 are $109/mo, and there is a $300 ETF

KrK
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said by Karl Bode:

It doesn't exactly take a recombinant gene technologist to see that $9 for 200 SD and 25+ HD channels is artificially low.
Or--- one could say... maybe costs are actually low enough this pricing is actually acceptable--- and the rest of us in Canada and the USA and elsewhere are being totally ROBBED!!!

Personally though, $9 sounds low even to me.
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ThrowDemsOut
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Re: Novus sued 1st and Shaw lawyers responded - surprise!

said by KrK:

Personally though, $9 sounds low even to me.
It was $9.95 not $9. So closer to $10 than $9.

KrK
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Re: Novus sued 1st and Shaw lawyers responded - surprise!

OK OK

$10 Sounds low even to me!
chemaupr

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backfire

I love how this backfire! Good for Novus! They took the fight to the customers and Shaw now is playing victim...

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Eeny, meeny, miny, moe

With the way things are going in Canada, the judge will just put on a blindfold and play Eeny, meeny, miny, moe to decide Novus' fate.

Can't say it's any better in the US. Here we just pretend there's no problem whatsoever (overbearing lobbying efforts grease the wheels immensely)
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Re: Eeny, meeny, miny, moe

Nah they'll probably just pick the one with the deepest pockets.
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chronoss2009
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how the 1st poster is WRONG

when you have a small area getitng such a wicked deal and the rest getting ZEROD or little for WAY HIGHER pricing ILL say the same thing novus is CALL TO COMPLAIN

This is a time those letter campaigns and such can be handier and calls to mps and such.

GET LOUD ABOUT this unfair and unethical company.
HEY SHAW ill bet that people will go with novus JUST TO SPITE you now.
knowing that when there gone your prices will revert to normal

ThrowDemsOut
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Re: how the 1st poster is WRONG

said by chronoss2009:

GET LOUD ABOUT this unfair and unethical company.
HEY SHAW ill bet that people will go with novus JUST TO SPITE you now.
Novus started the mess when they blocked Shaw from some apartment buildings during construction. Ethics by Novus isn't so hot either.
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caco
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Re: how the 1st poster is WRONG

Correct me if I'm wrong but isn't aprtment complex somehow linked to Novus owenership?
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ThrowDemsOut
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Re: how the 1st poster is WRONG

said by caco:

Correct me if I'm wrong but isn't aprtment complex somehow linked to Novus owenership?
Yes. But in Canada, like in the US now due to recent FCC rulings, you can't exclude competitors from an apartment building. Novus drug out the exclusion of Shaw as long as possible. So Shaw fought back with their own dirty tricks.
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Re: how the 1st poster is WRONG

That's interesting. I never thought about that..and I was wondering why I see so many people in my apartment building having Dish network in an area that is mainly served by bankrupt charter. I guess they are all not taking a risk going with charter in case they all of a sudden go poof! :P
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hottboiinnc
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you can block them. you just can't sign exclusive deals. There is a difference.

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That is true about excluding competitors; however in some instances, the owner(s) can refuse to allow the competitor to attach anything to their property. Or allow entrance onto the property from said competitor.

[Or for that matter allow Dish Network / Direct Tv to be installed- while there is OTARD, it doesn't do any good it the owners say no satellite dishes.]

Which they can do, legally.

shaner
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said by ThrowDemsOut:

Novus started the mess when they blocked Shaw from some apartment buildings during construction. Ethics by Novus isn't so hot either.
Doesn't Shaw have a sales team for MDU's? Or, have they been cocky enough to think they deserve to win all the business?

I know Bell TV went through the same thing in Ontario with Look TV some years ago. Bell didn't get pissy about it, they refocused their strategy with MDU's and started to take them seriously. Of course, it helped their cause that Look went bankrupt all on their own.
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said by ThrowDemsOut:

said by chronoss2009:

GET LOUD ABOUT this unfair and unethical company.
HEY SHAW ill bet that people will go with novus JUST TO SPITE you now.
Novus started the mess when they blocked Shaw from some apartment buildings during construction. Ethics by Novus isn't so hot either.
Well, this was considered "Just good business" till just recently. Shaw clearly is playing dirty pool, why defend them?
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zalternate

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1 edit

Geeeeeez

If you have ever played the game of postal code bingo, with these national companies. You would find all sorts of different deals depending on your local area. And it really pizz's people off about it too.
So is it discrimination to give one group of people a deal and others don't get the deal? In some cases, Yes.

So really Shaw should have to explain to the Competition Council and court, about why they can offer such great deals in a certain area. At such a loss in profit(negative).
But if Novus has printed correct information, it's a total waste of the courts time. And besides, Novus just has to correct any skewed information that Shaw can prove is wrong in court. If they can that is.

»www.10buckstoo.com/tips-to-get-t···ck-deal/
Tips to Get the 10 Buck Deal!

Need some tips on how to approach Shaw and get the 10 Buck Deal? We’ve put together a quick list of tips that should help you navigate your way through Shaw’s customer service.

1. Call Shaw customer service and demand the 10 Buck Deal 604.629.8888
2. If they say you do not qualify, ask why?
3. If they say you have to be a Novus customer, refer to the CBC article where Shaw president Peter Bissonnette says that “The offers are aimed at any multi-dwelling unit in Vancouver. They’re not limited to Novus buildings”
4. If you don’t live in Vancouver, say that it is outrageous that you are paying full rates to subsidize users that live in downtown Vancouver and that you demand to be treated equally as a customer.
5. Once they have given you a ‘reason’ demand to speak to their manager and say that this isn’t fair customer service and all Shaw should be provided the same offer!
6. Don’t back down until Shaw gives you the promotion!
7. Tell us how you fared trying to get the 10 Buck Deal. If they wouldn’t give it to you, sign our petition and join us on Facebook and make them hear your voice!

»www.cbc.ca/consumer/story/2009/0···int.html
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PIZZAMAN76

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The latest on this:

»www.cbc.ca/consumer/story/2009/0···ory.html
rody_44
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who cares

i dont care why they are doing it, i would welcome them with open arms at that price here in the USA
hottboiinnc
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Re: who cares

i would have signed up the same day it was released/announced
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Re: who cares

said by hottboiinnc:

i would have signed up the same day it was released/announced
Because you *hate* competition. We all know.
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Re: who cares

if someone's going to offer me the the service they are offering why not sign up?

and yah i do. That's why i work for big box stores because i hate small mom and pop stores. Even though I shop at Fresh Market

Bor

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said by rody_44:

i dont care why they are doing it, i would welcome them with open arms at that price here in the USA
Once they drive the competition out of business, they'd gouge back everything you saved and more.
brad

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Of course you would. You would sign your soul over for a chocolate bar.
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Come on Shaw

If you claim to be offering it to residents of West Vancouver then why won't you upgrade my plan to it. I'm right smack in the middle of where you claim to offer it, I can get Shaw service but you won't provide the terminal.

I think you meant to say Yaletown - which is basically condo city in downtown Vancouver and the heart of Novus territory.

So, if you're going to sue someone about it at least offer the service to the area you're claiming to be offering it to.

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