Mobilicity, Public Mobile and Wind Mobile Pull Out of CWTA

By: Ali Raza  |   April 11th, 2013   |   Business, News, O Canada

The dispute between the big and small telecom companies of Canada took a new turn on Wednesday, April 10, when the three smaller telecom carriers, Mobilicity, Public Mobile and Wind Mobile furiously pulled themselves out of the Canadian Wireless Telecommunications Association (CWTA). The three companies made the big announcement as a result of their “long-standing, mounting frustration with the CWTA’s consistent bias in favour of Rogers, Bell and TELUS on a wide variety of issues.” All three carriers are the startup discount wireless companies of Canada and they started their operations after successfully bidding in a government spectrum auction that was held in 2008. At that time the Canadian government was looking to make the wireless market more competitive by introducing new telecom companies in the country.

 

Strongly accusing the telecommunication gtoup of Canada, the three telecom carriers argued that, “the CWTA does not, and cannot claim to, speak on behalf of the Canadian mobile wireless sector.”

 

Explaining their point, Chief Regulatory Officer for Wind, Simon Lockie said that, “When we were first approached by the CWTA, we were promised clear and fair representation on issues of true industry alignment. But despite making our objections and concerns abundantly clear on numerous occasions, the CWTA has repeatedly failed to honour this promise, leaving us no alternative but to withdraw.”

 

On this occasion, Public Mobile’s General Counsel and Senior Vice-President, Legal & Regulatory Affairs, Bob Boron added that, “It has been evident for quite some time that, rather than being a true industry association which represents the views of all players regardless of size, the CWTA has instead largely been an advocate for Rogers, TELUS and Bell, and often directly contrary to the interests of new entrant wireless carriers.”

 

Mobilicity’s Director of Legal Affairs, Gary Wong affirmed that, “We have spent the better part of three years repeatedly voicing our opposition to the CWTA on a wide range of matters to the point of issuing a press release in January 2011 that publically expressed our dissent on the CWTA’s position on wireless consumer protection. There seems to be a blatant disregard of the new entrants in favour of acting in the best interests of the Big Three carriers and it is unacceptable.”

 

In its defence, the CWTA said that it “rejects the accusation that the Association represents the interests of only certain members. CWTA has always and will continue to work on behalf of all of its members.”

 

The wireless sector of Canada has been inundated by a cartel for about two decades now, which has put the country on the list of states, where wireless cost is higher than any other countries. It is because of this very reason, Naguib Sawiris, an Egyptian billionaire, had said back in 2011 that Canada has “the most inefficient operators in the world” and he feels sorry of his decision to start a business in the wireless market of the country.

 

Source: TechVibes