Claiming that an advantage was being given to foreign investment, Rogers, Bell and TELUS lashed out against Ottawa’s wireless spectrum rules. The three are currently leading the telecom scene in Canada and are certainly worried that American counterpart, Verizon, may be getting some relaxation and other benefits to make an easier entrance up north.
WIND Mobile CEO Anthony Lacavera does not agree in regards to their claims at all. Terming them to be “completely unfounded”, he continued to talk about how they had been getting more than a fair share of assistance from the federal Canadian government. He was speaking with the Globe and Mail and added how “substantial spectrum imbalance” has made it hard for any newcomer into Canada, while allowing the already established to have it easier in every regard.
Collectively, Rogers, TELUS and Bell hold 85% if all licences that are in the category of “currently usable mobile spectrum”, according to Industry Canada. They are providing services for all 90% of customers and because of most of those users vying for data instead of voice now, spectrum possession could not have been any more valuable.
“Spectrum is a national asset and it was allocated to incumbents in the mid-eighties and the mid-nineties on a beauty contest basis – a free basis. And that spectrum today has very high value,” said Lacavera.
“A U.S. major assessing the market is clear evidence that the government policy to foster more competition in wireless is working. And the frantic reaction from all three incumbents is all the evidence one should need to assess the need for more competition to disrupt the entrenched and cozy oligopoly.”
The upcoming 700 MHz spectrum auction is also in place that will be coming up in the near future as well. Because of the infiltration levels that TELUS, Rogers and Bell are at in the Canadian market at the moment, it is definitely a close-to impossible task for any third competitor to come in and try to take their market share away from them.
Source: iPhone In Canada
Four blocks of 700 MHz are up for grabs and the strategy of Verizon is that entering as a newcomer will give it an advantage of being able to bid on two blocks instead of just one. This will obviously cause the bigger and older players to lose out.
With Verizon reportedly gearing up to make a spectacular entrance, it will definitely be interesting to see how the Canadian big wigs react to it.
Verizon inches closer to acquiring Wind Mobile to make Canadian Entry
Windows held responsible by Nokia for Unimpressive App Selection
Lunches So Good Kids Can’t Ignore Them
Invigorating Ginger Smoothie
The U.K.’s Youngest Parents Ever
The new hair Jennifer Lawrence