|CADVision Sues Telus|
Friday, November 21, 1997
CADVision Development Corporation, a Calgary Internet Service Provider with 35,000 subscribers, has commenced action in the Court of Queen's Bench of Alberta against Telus Corporation ("Telus"), Telus Communications ("TCI") and Telus Advanced Communications ("TAC") on November 19th, 1997 seeking injunctive relief and, in the alternative, damages. CADVision alleges Telus, TCI and TAC are treating it in a discriminatory manner by not providing CADVision equal access to ADSL Service. CADVision's application for an injunction has been set for Friday, December 5, 1997.
As one of the largest ADSL providers in North America, CADVision would like to use our experience to work with Telus to insure a level playing field for all Internet providers. Asymmetrical Digital Subscriber Line or ADSL, provides Internet access at over 100 times the speed of regular modems.
For a level playing field to exist, Internet Service Providers require co-location in Telus's phone switches. Despite previous agreements with Telus that CADVision and other ISPs would have co-location by Dec 1, 1997, this promise will not be kept.
TelusPlanet has announced plans to launch their own ADSL service in the near future. CADVision is seeking an injunction against TelusPlanet's ADSL launch on two grounds:
First, there is significant risk hundreds of CADVision's current corporate ADSL accounts may cease to function. Likewise, TelusPlanet's ADSL customers may suffer the same problem. Corporations may loose their Email, Web site and Internet access. If two ADSL signals run in the opposite direction on a single phone line bundle, they can cancel each other out.
Second, TelusPlanet will have an unfair advantage over CADVision and other Internet Providers in that Telus's competitors will have to pay 3-5 times as much for an ADSL phone line compared to what TelusPlanet must pay. Due to CRTC tariff constraints, CADVision's ADSL lines not using co-location cost $18 - $35. Telus's ADSL lines, using co-location, cost just $7.
Co-location inside of Telus's phone switches will resolve these issues. CADVision is seeking an injunction against Telus and TelusPlanet until co-location can and is provided.
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