In Quebec we do have a pretty reliable cable connection (Videotron) which is a decent competitor to Bell. They have a few problems over their plans and such, but their internet connection is flawless. I don't know if other provinces has this alternative tho.
So by doing option 1, they can allow more users to connect at better speed allowing them to have a chance at compteting against whatever other providers available in the area. So by doing this, it will cost a lot but you have a chance of having a lot of new customers, depending how convincing your efforts are.
By doing option 2, they ensure that if I ever was with Bell I'd put my money elsewhere and that if I was with some other provider, I wouldn't consider moving to Bell. Less cost, shittier service, more pissed off customers plus the possibility that customers might go to other providers.
So, shareholders, I offer you costly upgrades and possibly more customers or almost no cost and a possible loss of customers... They would still go for option 2. But it's always nice to have the full picture.
UNIX is hot. It's more than hot. It's steaming. It's quicksilver lightning with a laserbeam kicker. -- Michael Jay Tucker