The federal government’s spectrum auction starts today with its wireless strategy in tatters. Late yesterday, Wind Mobile announced that it was withdrawing from the auction, creating a new entrant vacuum that seems likely to leave some of the prime spectrum in major markets such as Ontario, Alberta, and British Columbia […]
Post Tagged with: "Wireless"
Govt Promises Domestic Wireless Roaming Regulation: Can Wholesale Price Regulation Be Far Behind?
Industry Minister James Moore yesterday took another step toward improving the state of wireless competition in Canada by announcing plans to cap wholesale domestic roaming fees at the same rates the companies charge their own customers. The cost of domestic roaming has been a persistent concern for new entrants and regional wireless carriers, who argue that the national carriers increase wholesale prices for roaming that render the smaller players less competitive. The new government reforms will put an end to those concerns. Moreover, it plans to create tough new penalties for companies that violate the wireless code or other regulatory requirements, a move that may increase compliance rates.
While the usual critics will moan that the latest changes are indicative of a wireless policy with ever-changing rules, the reality is that the government has made a clear commitment toward addressing the state of wireless competition in Canada. Some of its hopes may have been thwarted – the entry of Verizon tops that list – but identifying and addressing competitive barriers should be a continuing process with regular reforms as needs arise.
CRTC Launches Wireless Roaming Fee Task Force
The Globe reports that the CRTC has escalated its investigation into wireless roaming fees by creating a special task force to examine the issue and present regulatory options for consideration by the Commission next month.
How Canada Can Put Digital Consumers First
Reports over the past week have indicated that the government plans to unveil a “consumer first” agenda for its upcoming Speech from the Throne. The speech, which will set out the federal legislative and policy agenda for the next two years, is widely viewed as the unofficial start of the 2015 election campaign.
My weekly technology law column (Toronto Star version, homepage version) notes there is little doubt that the battle over wireless pricing, which hit a fever pitch over the summer in a very public fight between Industry Minister James Moore and the incumbent telecom companies, will figure prominently in any consumer agenda. The government is convinced that it has a winner on its hands – consumer frustration with Canada’s high wireless prices suggests that they’re right – and will continue to emphasize policies geared toward increasing competition.
Yet a consumer first agenda should involve more than just taking on the telcos on spectrum (or the airlines over their pricing practices). A digital consumer first agenda should prioritize several other issues that have similar potential to strike a chord with Canadians across the country. At the heart of those digital issues are two ongoing consumer concerns: pricing and protections.
Back to the Drawing Board: What Wireless Policies Might the Government Now “Aggressively Pursue”?
Industry Canada released the names of the bidders for its forthcoming spectrum auction yesterday with the disappointing news that no major new entrants will be using the auction to enter the Canadian market. That is rightly viewed as a big win for the incumbents, who should have little trouble acquiring the spectrum they want in the upcoming auction and will not face any new competition from deep-pocketed global wireless players. Instead, despite the persistent efforts of the federal government to convince new competitors to enter the market, the Big 3 will continue to dominate Canadian wireless services for the foreseeable future. With prices high by global standards and mobile broadband penetration lagging compared to other countries (an ITU study released over the weekend ranked Canada 32nd worldwide for mobile broadband penetration), consumers are the immediate and obvious loser for the moment.
Yet the incumbent victory did not come easily, coming at the cost of a scorched-earth public relations war with the federal government that the incumbents are already trying to downplay. However, having failed to address market concerns through new competitors, it may now fall to the government to shake things up through increased regulation. There are no shortage of options, with two big steps (the consumer wireless code that limits contract length and potential CRTC regulation of wireless roaming pricing) already underway. After yesterday’s release, Industry Minister Moore stated that “in addition to this auction, our Government will continue to aggressively pursue policies that ensure consumer interests are at the core of all Government decisions.”
What policies might Minister Moore have in mind?
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