Telus Mobility and Wind Mobile Battle in Vancouver

By: Kuljit Grewal  |   June 2nd, 2012   |   News, O Canada, Smartphones

An ugly battle between Telus Mobility and discount competitor Wind Mobile has hit the Vancouver underground.  The issue stems from Wind’s desire to provide wireless coverage on the popular Canada Line of the city’s SkyTrain transit system. The line features stops at the Olympic Village, City Centre, and the airport, high traffic and popular stops for locals and tourists alike. Wind’s current lack of access to the network has left their wireless users without coverage on the Canada Line, something that the company argues may be a major deterrent in keeping people from joining their service, which relies of coverage zones near major cities to offer low cost wireless plans.

 

In order to address the issue, Wind’s parent company Globalive Wireless Management submitted an application to the Canadian Radio, Television and Telecommunications Commission (CRTC) requesting that they intervene on Wind’s behalf.

 

According to the application, Wind is none too pleased with the fact that Telus currently holds what they refer to as a “monopoly” of service along the Canada Line, leaving other mobile carriers at their mercy as they charge exorbitant fees to competitors looking to access the transit system’s network. The situation is further complicated by the fact that Telus holds relative sway over the City of Vancouver and InTransit BC (the operators of the Canada Line) due to the fact that they invested $2M out of pocket themselves in 2008 in order to develop the wireless system for the Canada Line.

 

The contract Telus signed at that time stipulated that they must allow access to at least three other wireless providers, allowing competition and wider access to patrons. Two of those spots have been taken by Rogers and Bell, leaving the third up for grabs. Telus has come out and said that they offered Globalive the same rates and fees given to Rogers and Bell, and that they are willing to consider Wind once again should they have  a change of heart and agree to pay the suggested rates.

 

The odds are stacked against Globalive and Wind due to Telus’ influence on the situation as well as the fact that the fees and rates being offered are currently being paid by two of Wind’s competitors. Add the fact that the City of Vancouver is in a reciprocal position due to Telus’ $2M investment and the situation appears dire. Seeing as the CRTC is the only body that can intervene in the matter, they find themselves in a tough position with the city, InTransit BC and Telus pushing to have Globalive’s application dismissed.