Tuesday, October 11, 2005

Telus Labor Impasse Settled - Time to Move Forward

It looks like they've finally settled this thing, which should be good news for the Canadian IP space. This isn't a huge story, but it's very important to Telus, as this has been a serious distraction for the longest time. These things are usually called strikes, but the TWU - Telecommunications Workers Union - sees it as a lockout. OK. I'm not going there - call it what you want, but it looks to be over now. Phew.

At the heart of this is the issue of "flexibility" - for Telus to outsource "non-core" jobs. A lot of this is about how Telus is going to stay competitive in the IP world, where labor issues simply don't exist. This really brings home just how different the world is for incumbents, who are now trying to compete against Internet or software-based nextgens like Vonage Canada.

For the sake of moving IP forward in Canada, this is good news. I don't think Bell is quite yet shaking in their boots, but it sure sets the stage for Telus to enter the game with both feet now. How they compete now with IP is another topic, but we'll save that one for another posting.

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