Canadian wireless incumbents are already giving the US-based carrier Verizon a tough time even before it has entered the local wireless market. The reason Canadian firms being aggressive with the Verizon is that local wireless companies want the Canadian government to provide an equal playing field to all incumbents rather than giving favours to a big telecom company like Verizon in the forthcoming license auction. Initially, a local wireless carrier raised its voice against the favouritism, but now more and more telecom companies are joining the discourse. The latest in this regard is Bell’s President and CEO, George Cope, who has written a two-page open letter to wireless users in Canada in the July 25th edition of Toronto Star to warn them about Verizon.
The CEO of Bell wrote that “$120 billion US telecommunications giant with 100 million wireless customers” is not the carrier that would “need handouts from Canadians or special regulatory advantages over Canadian companies.” Below is an excerpt from the intro of the open letter, which describes the history of Bell and how Verizon could make things worse:
“Bell Canada is taking the unusual step of writing to all Canadians today. As the nation’s longest-serving telecommunications company, established shortly after Confederation in 1880, we would like to ensure Canadians clearly understand a critical situation impacting their world-leading wireless industry.
Verizon Communications, a $120-billion US telecommunications giant with 100 million wireless customers, is considering entering the Canadian market. A company of this scale certainly doesn’t need handouts from Canadians or special regulatory advantages over Canadian companies. But that is exactly what they get in the new federal wireless regulations.
Bell welcomes any competitor, but they should compete on a level playing field. Fair competition is something Canadians demand and something Bell expects too after 133 years of investment in delivering world-class communications services to Canadians.”
Apart from this Bell’s CEO also highlighted three loopholes in the regulations of the government which gives more advantages to Verizon as compared to other carriers. iPhoneinCanada has listed these loopholes as:
“- Buy twice as much new wireless spectrum in the upcoming auction of Canada’s 700 MHz airwaves as Canadian carriers at a lower overall price: 4 prime blocks of spectrum are available but Verizon can buy two, while incumbents are limited to one. One big player will be shut out.
– Get a free ride on the world-leading networks funded and built by Canadians: Verizon would get to piggyback on our incumbent networks in certain areas and not build their own.
– Acquire smaller Canadian wireless companies at fire-sale prices: Verizon is able to buy new wireless start ups “at cut-rate prices”, even though the ‘Big 3′ were unable to (TELUS was shut down in their attempt to acquire Mobilicity).”
Shedding more light on the loopholes Chief Legal and Regulatory Officer of Bell, Mirko Bibic said that, “With the loopholes in the rules, Canadian companies cannot even try to acquire startup wireless companies at any price, but American companies can. And they can bid for more of our country’s airwaves and at a lower price. Favouring US companies over Canadians threatens our national communications industry and its place in Canada’s future growth, productivity and prosperity.”
Source: iPhoneinCanada
Photo: iPhoneinCanada
AVG Acquires the Services of Ex-Mozilla CEO Gary Kovacs to Expand its Mobile Business
Cloudscaling Begins Search for New CEO as Michael Grant Steps Down from His Post
Lunches So Good Kids Can’t Ignore Them
Invigorating Ginger Smoothie
The U.K.’s Youngest Parents Ever
The new hair Jennifer Lawrence