Wireless

Canada will ease restrictions on telecom foreign ownership

In yesterday’s pre-budget Throne Speech, the government announced that it will allow greater foreign investment into Canada’s regulated telecom sector.

The Harper Government had already signaled its intentions when it allowed Globalive to launch its WIND wireless service despite the fact that most of the investment behind the product came from an Israeli company.

The move will likely increase competition and may result in mergers and acquisitions. Perhaps we’ll even see another attempt to merge Telus and Bell.

Personally, I think its positive new for the industry and Canadian consumers.

Bell and Telus Upgrading Network to 3G

According to an article published by the Financial Post this morning, Bell and Telus are about to announce that they will be jointly upgrading their cellular networks to 3G.

The Post states that multiple telecom industry sources have said that Bell Canada and Telus intend to share the cost to upgrade to the next-generation wireless network and that the announcement will be made next week. It is estimated that the cost of the upgrade will be approximately $1 Billion and that it will take one year to complete.

If true, the Nokia Siemens Networks’ provided upgrade will allow both companies to compete with Rogers by offering popular mobile devices such as Apple’s iPhone 3G and Research In Motion’s Black-Berry Bold.

When combined with the recent spectrum auction and the entry of new wireless competitors such as Quebecor, Shaw, DAVE Wireless and Globalive, the 3G announcement will contribute to significant change in the Canadian Wireless marketplace over the next couple of years.

Great news for Canadian consumers in my view.

Canadian Wireless Spectrum Auction Tops $4B

Surpassing most expectations, bidding on Industry Canada’s wireless spectrum auction now exceeds $4 billion.

Here are the totals as of 4:00 pm today:

Telus and GSM – Context is key

Last week, Light Reading quoted Ibrahim Gedeon the Telus CTO as saying that Telus would not entertain the idea of converting its wireless network to GSM and would instead wait for LTE. Well context is everything and Ibrahim sent the following note to Light Reading to clarify his comments:

Our discussion was of a technical nature,
including my references to 2G GSM. Unfortunately, your summary of my
comments has led to some confusion for those that tend to commonly
associate legacy 2G GSM and 3G HSPA as one and the same.

When we spoke, I did indicate that TELUS would not implement 2G GSM
as we are not giving serious consideration to alternative legacy
wireless technologies. The TELUS network already covers approximately
80% of the Canadian population with high speed wireless on our 3G EVDO
Rev A technology platform. To be clear, we continue to evaluate the
complex issues of alternate 4G wireless technology evolution paths.

Also, as mentioned, scale is important to a Canadian wireless
operator such as TELUS within the greater North American or global
context. Given this, we are of course watching moves by our large U.S.
peers in terms of their 4G technology paths. However, this does not
necessarily preclude TELUS from the option of pursuing a particular
technology evolution path at any point in time regardless of the timing
of technology decisions of any U.S. peer.

So who knows, perhaps GSM will play a role at Telus at some point.

Telus to Skip GSM: Next Stop LTE

In an interview with Light Reading, Ibrahim Gedeon Telus’ CTO, has indicated that Telus will not be converting its CDMA network to GSM. In addition, the article suggests that Telus will skip an interim 4G step and move directly to LTE.

Ibrahim suggested that Telus won’t begin the technology conversion until Verizon, by virtue of its purchasing power, steps up and makes the technology affordable “Telus alone is too small to define a market,” he says.

Geist on Canadian Wireless Competition

Michael Geist speaking this week at the Spectrum 20/20 conference on the subjects of competition in the Canadian wireless market and the upcoming Canadian copyright regulations.

Rogers Introduces Dual-Mode Phone for the Home

Rogers has announced that it will be offering a dual-mode phone for home use starting tomorrow. The Nokia 6086
dual-mode phone will allow Rogers wireless subscribers to make make calls on their cell phones over the Internet when they are within range of their home Wi-Fi network.

The service will be appealing to a segment of wireless subscribers who are interested in dropping their wired residential phone line in favour of a single wireless device. The fact that there is currently only one device (the 6086) to choose from, for use on the Rogers network, will likely limit adoption.

It’s a modest example of the type of innovation that has been made practical through the advances in IP communications. It’s also another example of technologies and services that will continue to nibble away at the traditional Telcos’ residential subscriber base.

Rogers Adds 55 Communities to Inukshuk

Verizon Says Come and Play

Yesterday, Verizon announced that it will be opening up its network to non-Verizon supplied devices. I believe the decision is of great significance and marks the beginning of a shift towards openness that will ultimately spread to all major wireless providers in North America.

“This is a transformation point in the 20-year history of mass market wireless devices – one which we believe will set the table for the next level of innovation and growth,” said Lowell McAdam, Verizon Wireless president and chief executive officer. “Verizon Wireless is not changing our successful retail model, but rather adding an additional retail option for customers looking for a different wireless experience.”

In my view, the trend towards toward openness is unstoppable. Verizon realizes that, if it does meet consumer demand, someone else will. As I mentioned in my TiVo post on Monday, consumer demand will prevail and defensive strategies are doomed to failure. The entrenched incumbents affected by the latest wave of technology-enabled innovation must embrace the change with new business models. Apparently, Verizon has seen the light.  Hello MPAA and RIAA, are you paying attention?

Ultimately the move to open systems will lead to lower prices, innovative products and services, productivity improvements and improved competition for North American business in the global economy.

The next few years will be very interesting, bring it on!

Rick McCharles
Telecom Consultant, Toronto
RIC Services

Canadian Wireless Data Rates Headed Downward!

It appears that the battle has begun. Last week CrackBerry.com revealed some details on Rogers’ new Personal E-mail on BlackBerry plan that includes unlimited BlackBerry email and BlackBerry messenger for $15.00 per month. The offer is restricted to BlackBerry Pearl customers.

Now, it is rumoured that Telus is about to up the anti by offering the same unlimited $15.00 per month rate but will also include unlimited web browsing. Unlike the Pearl-only restriction at Rogers, the plan will be available for the 8130.

Combine these events with last week’s Bell announcement of the HTC Touch $7.00 per month unlimited data plan and it is clear that the downward trend has begun.

The next few months will be very interesting.

Rick McCharles
Telecom Consultant, Toronto
RIC Services