
MONTREAL - Telecommunications giant Bell Canada is setting a high bar for itself when it streams video of the 2010 Winter Olympics in Vancouver over its Internet-based network: like many athletes at the games, it is determined to put in a "flawless'' performance.
Bell (TSX:BCE) designed and is in charge of the Winter Games Web portal Vancouver2010.com and has taken steps to ensure it won't overload and crash once the Games begin on Feb. 12.
"We're anticipating 1.5 billion page views in those 17 days,'' said Justin Webb, Bell's vice-president of Olympic services.
"We will be the busiest sports site in the world,'' he said from Vancouver, adding there will be as much Internet traffic as there was for the 2008 Beijing Summer Olympics.
Instead of building separate networks for TV, data and voice, everything will converge over a single Internet-based network, which Bell says is a first for the Olympics and something it hopes to use long after the Games to generate more revenue.
"So if you can image all of this information whizzing around within this Games context, running on our infrastructure. We carry every second of every video from all of the venues back to the broadcast centre and then to the rest of the world.''
Live streaming of major events over the Internet is quickly becoming a must for many in the sports and entertainment businesses. Rock superstars U2, for example, have embraced the technology, most recently streaming a concert on Sunday from California's Rose Bowl live to the popular YouTube.com website.
The technology that enables live Web streaming has improved to the extent that Webb is confident in echoing his company's optimistic tone, saying he doesn't expect a single hiccup on any front: "Our mandate is a flawless Games.''
Bell will stream video from the Games in high definition, giving broadcasters the option of having it seen in their home countries in this format.
Bell's sponsorship of the Vancouver Olympics totals $200 million, of which $60 million accounts for services such as Internet connections, phones, two-way radios and cabling, Webb said.
Webb said 42 of 80 countries have already placed orders for their communication needs and the remaining countries are expected to sign on soon.
Fans coming in to watch the Games will pay Bell to use their mobile phones on its updated wireless network.
Bell hasn't yet announced what content it will offer consumers on their mobile phones during the Games.
Technology analyst Duncan Stewart said an Internet-protocol network allows Bell to deliver services more reliably and cheaply, adding the technology is about a decade old.
"It's not incredibly risky for them to use it,'' said Stewart, director of research and analysis at DSam Consulting in Toronto.
It will leave Bell with better network infrastructure and will help it compete against Telus (TSX:T) and Rogers (TSX:RCI.B) but it won't "clinch'' deals, Stewart said. Money will also have to be spent to maintain it, he said.
After the Winter Olympics, Webb said the network infrastructure can be used for its customer base, adding it reaffirms Bell's commitment to Western Canada.
"There's significant value in the business development opportunities in the West.''
As a result, Bell is the sole provider of technology solutions to the Vancouver Convention Centre for 15 years, he said.
"That was won in large part because of our association with the Olympics. That single deal is worth more than the revenue from the Games itself.''
Bell's association with the Games will allow it to brand products with the Olympic rings, which Webb said is exclusive to Bell, and allows it to link its brand with the Olympic movement.
Bell spent five years building its Internet protocol network and now-bankrupt Nortel was an equipment supplier.
Webb said Bell built a 285-kilometre fibre optic network from Vancouver to Whistler, home to major events like downhill skiing, that will enable all communications traffic, such as data, voice and Internet.
Bell also has built two-way radio networks for communication and is building a local cable TV network that has about 5,000 TVs to allow people to see what's happening at other venues.
Webb said it will provide 9,000 phones to be used in the operations of the Games that will work, despite "massive'' network traffic.
An industry analyst said Bell's investment in the Internet-Protocol network could be higher than its $200 million sponsorship of the Games.
"When you actually factor in what they're spending on the network itself and everything else that goes along with it, it's going to be quite a large project,'' said the analyst, who didn't want to be named.