Spectrum auction rules announcement

[boron228]

I don't think the reason WIND seems to be in a rut is because of government (they're provided a lot of free passes) decisions like this one or capitalization (foreign ownership). It's more likely a vindication that the market is ultra-competitive with the Big 3 and other new entrants and WIND is just conveying that frustration through the media, using "competition" rhetoric to mask the real issues.

Now Tony is coming across as a whiner.

[hardy83]

Countries have laws stating this? Please provide a link. I always thought it was market conditions that determined that. Are you suggesting Canada has a law that allows for three year contracts?

Canada has no laws regarding cellular contracts. They could go for 10 years if the industry chose.

While I'm not 100% sure on the other countries, the UKs regulator banned 3 year contracts for cable and phone services.

[Tendenzi]

Countries have laws stating this? Please provide a link. I always thought it was market conditions that determined that. Are you suggesting Canada has a law that allows for three year contracts?

I'd also like to know while you're addressing @hardy83 where he thinks a monopoly was formed inside Canada. Owning 33% is hardly a monopoly.

As I'm sure anti-trust investigations would occur if there was a single given monopoly. I also point to the US wireless industry as an example too, where 3-4 (counting T-Mobile for now) companies dominate the 300 million+ subscribers.

Seemingly forgetting the other laws in those countries that restrict contracts to 2 years or less and ones that stop monopolies from forming.

[Justdoitagain]

Inside thestar.com

http://www.thestar.com/business/arti...ectrum-auction

Wind Mobile, a relative newcomer to Canada’s telecom industry, will likely boycott an upcoming auction of wireless spectrum because the rules do not give smaller players enough bandwidth to build the most advanced network.

Wind Mobile, a relative newcomer to Canada’s telecom industry, will likely boycott an upcoming auction of wireless spectrum because the rules do not give smaller players enough bandwidth to build the most advanced network.
MARK BLINCH/REUTERS
Reuters

Wind Mobile, a relative newcomer to Canada’s telecom industry, will likely boycott an upcoming auction of wireless spectrum because the rules do not give smaller players enough bandwidth to build the most advanced network.

Canada’s Conservative government said on Wednesday it would loosen curbs on foreign investment in the telecommunications sector and also presented rules for a government auction of prized 700 MHz wireless spectrum.

The rules cap how much spectrum Canada’s three biggest wireless carriers — BCE Inc’s Bell Canada, Rogers Communications Inc and Telus Corp — will be able to buy.

Related: Wireless market in Canada opens to new carriers

“As I understand that cap system, we will not bid,” Wind Mobile chief executive officer Anthony Lacavera told Reuters. He said that proposed 10 MHz blocks of spectrum would not be enough for his company to build a long-term evolution (LTE) network to compete with dominant industry players.

Each of the three main players are using existing spectrum to build out LTE networks, which promise faster mobile Internet speeds.

“I don’t know how we’re going to be able to successfully raise the financing. We’re going to make our best efforts, but I don’t know how we’re going to raise the financing when there’s technically no way for us to roll out LTE,” he said.

Wind Mobile forced the issue of foreign ownership onto centre stage with its backing from Egypt’s Orascom Telecom, which has since sold assets including Wind to Russia’s VimpelCom.

The auction of the low-frequency 700 MHz airwaves — which travels longer distances and penetrate walls more easily than other spectrum — will take place in early 2013, five years after an auction of the same frequency spectrum took place in the United States.

“This is a classically Canadian solution, which on the surface looks like they gave all market players an opportunity, but at the end of the day what they’ve actually done is hurt the Canadian wireless industry and therefore hurt Canadian consumers,” Lacavera said.

Wind Mobile launched after a 2008 spectrum auction in which the government blocked established players from bidding on some airwaves so as to encourage more competition.

Another company that bought set-aside spectrum in that auction, Mobilicity, welcomed the rules for the 2013 auction.

“We’ll be there, we’ll be bidding 100 per cent and we’ll be bidding aggressively,” said Stewart Lyons, Mobilicity’s chief operating officer.

“It’s good news for the Canadian wireless consumer, that’s for sure. It’s a real strong indication of their (the government’s) commitment to maintaining a competitive environment, which means lower prices, greater availability of technology, proliferation of devices.”

He said it was possible to build an LTE service on just 10 MHz, although he acknowledged it would not be optimal.

[Tendenzi]

In other news, The Government and all other wireless carriers in Canada, have dedicated this song to WIND and Tony Lacavera.
How sweet of them.

[keyzink]

I also point to the US wireless industry as an example too, where 3-4 (counting T-Mobile for now) companies dominate the 300 million+ subscribers.

Normally for a country like canada, 3 national wireless provides would be enough. It would be the case if we had 3 competing companies. What we have instead is a coalition of 3 companies with the exact same pricing and policy structures. Hence the need for change.

[boron228]

Normally for a country like canada, 3 national wireless provides would be enough. It would be the case if we had 3 competing companies. What we have instead is a coalition of 3 companies with the exact same pricing and policy structures. Hence the need for change.

Really? They seem to fight it everyday through distribution channels, marketing, and value add-ons, such as Rogers One Number.

[Tendenzi]

Normally for a country like canada, 3 national wireless provides would be enough. It would be the case if we had 3 competing companies. What we have instead is a coalition of 3 companies with the exact same pricing and policy structures. Hence the need for change.

What you're describing would be considered "collusion" and it is very much illegal in Canada. LINK

Has WIND taught you nothing yet? Prices will most certainly go up, and local calling areas will shrink, features will be removed and charged for adding back on, and phones will be subsidized with a bigger mark-up on non-contract pricing to encourage the lock-in.

WIND is a great accelerated example of how the industry had to transform when facing the challenges of simply their own debt.

[keyzink]

Really? They seem to fight it everyday through distribution channels, marketing, and value add-ons, such as Rogers One Number.

In other words, coming up with innovative techniques to earn more (read rip-off) from the consumers. If competition means keeping the base plan prices artificially high and then competing on add-ons above and over then sure we don't need any more of such competition.

[Tendenzi]

Really? They seem to fight it everyday through distribution channels, marketing, and value add-ons, such as Rogers One Number.

you again? you typo'd the b, I think you meant to put an "m" there, chloride...

[keyzink]

What you're describing would be considered "collusion" and it is very much illegal in Canada. LINK

Has WIND taught you nothing yet? Prices will most certainly go up, and local calling areas will shrink, features will be removed and charged for adding back on, and phones will be subsidized with a bigger mark-up on non-contract pricing to encourage the lock-in.

WIND is a great accelerated example of how the industry had to transform when facing the challenges of simply their own debt.

So you're saying what Robelus do (Bellus to a greater extent) isn't collusion? A regulatory body with some spine would've taken action against such practice long ago.

For all their faults and shortcomings, it cannot be argued that the new entrants have brought in something different to the established order. A breath of fresh air that we desperately need.

[xFLINTSTONEx]

Does the foreign ownership rule apply to internet providers?

[Tendenzi]

So you're saying what Robelus do (Bellus to a greater extent) isn't collusion? A regulatory body with some spine would've taken action against such practice long ago.

For all their faults and shortcomings, it cannot be argued that the new entrants have brought in something different to the established order. A breath of fresh air that we desperately need.

The new entrants have yet to show any signs of business impact on the incumbents, both in ARPU and subscriber growth.
Regulatory bodies have investigated the incumbents time and time again. It's no cake walk to be them I'm sure.

And please don't defend WIND to me, I'm not arguing anything other then, if WIND could have 7 million subscribers right now and a nationwide network, don't bet on anything close to the plans they have today. WIND's competitive plans work only because they're small and inferior to the market. The more easier it becomes for them to acquire subscribers and their money, the more the plans push how much they can squeeze out of them.

I speak mainly because of what is happening in the US wireless industry right now. Plans are on the up, the unlimited data is a big issue where all providers are putting caps, throttling and limits on, and it reminded me. That any wireless feature that was new and fresh was once free, or very cheap, until people became addicted or expected it as the norm. Then it became an add-on, expensive feature, or whatever. Just look at voicemail, callerID, texting, free after 6pm, billing by the seconds, etc. etc.

All wireless carriers to me act like drug dealers. Get you hooked, and then keep getting you f@#$ed up every month after you're addicted.

[boron228]

I hate the words Tony uses: "Boycott" the auction? Give me a break. It's quite misleading to correlate WIND's decision not to participate in the auction with government policy...Seems like a public sympathy trip under the guise of "competition" rhetoric. WIND has the freedom to participate but simply chose not to.

I wish more Canadians could see underneath the rug here.

[403808]

Is that Urkle? That's the BEST!!!!!

Edit: No its not, but it sure looks like him LOL