Canada Opens Wireless Industry To Competition 116
FreeKill writes "The Canadian government on Wednesday paved the way for new cellphone companies by announcing new rules for an auction of radio airwaves designed to spur competition in the wireless industry. About 40 per cent of the spectrum will be reserved for new entrants with the remainder open to all bidders, including Canada's big three providers — Rogers, Bell, and Telus. The government will also mandate roaming area agreements which will force existing carriers to share their networks with newcomers for five years, plus another five if the new entrants can build up their own networks nationally."
if this were Australia... (Score:5, Funny)
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That just made my day.
Not very different (Score:2, Interesting)
These sort of enforcements to make them "share" have happened before and they've become very clever at finding ways to discourage competition anyway.
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TekSavvy.com is paying bell a wholesale rate for the DSL and providing you support with whatever they have left over.
Bell still gets a nice cut of the pie and they don't have to deal with support issues.
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I'm praying for some new entrants to the cell market. I've used every carrier available in my area other than Virgin.
I've used Telus (worst service of all but they did expand their data network in BC this September). IIRC telus was under review by the CRTC for their horrendous wait times on their call in lines. I recently waited 45 minutes on hold dealing with an issue on an inlaw's new cell.
I'm on Bell right now. They piggyback Telus's network in BC. I c
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I just checked out TekSavvy. Both the 3Mbps and 6Mbps only ha
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Re:Not very different (Score:4, Informative)
That $20.50 pays for Bell's service of maintaining the last-mile connection between the customer's modem and the DSLAM in the CO.
The ISP (TekSavvy) must pay for a connection to Bell's ATM network in order to get the traffic from the CO to the ISP's network ($1300 for a GigE). From there, the ISP is responsible for internet connectivity. TekSavvy's primary transit is through Peer 1 (premium customers) and Cogent (unlimited customers) with various other things in the mix (TorIX, Teleglobe, etc). I know they recently purchased some InterNap hardware, but I'm not sure if they're using them for transit too.
As you mentioned, the ISP is responsible for providing technical support. However, many issues require TekSavvy to open trouble tickets with Bell (who provide pretty bad service to TekSavvy) in order to get problems resolved. This is because many problems with DSL involve incorrect settings made by Bell techs at the CO, a constant annoyance for TekSavvy.
Anyhow, that base fee only provides the last-mile. The ISP themselves pay to get the traffic from Bell to themselves, and from there it's entirely through the ISP's own network.
The end result is that TekSavvy can provide far better customer service and performance at lower prices than Bell. This is why they're signing up 1500-1800 customers per month. That figure, BTW, comes directly from TekSavvy themselves, who post on DSLReports a lot of information that most ISPs keep secret.
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Techsavvy, like you said pays Bell $20.50/customer plus GigE or other backbone services, and the only support Bell has to deal with is real internet connectivity issues forwarded to them by the smaller ISP.
Techsavvy fields all the calls that relate to the end user wanting software recommendations, or someone to hand hold them through installing something, or not knowing how to clear cookies, update software, plug in the keyboard, etc. And no, I
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I'm liking my new Teksavvy account very much. Peer1 is fast. But the last mile (and Bell fees) are still bottlenecks and I can only get 5mbit in Burlington. France and Korea get much fast
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Canadian wireless is ready to (Score:2, Funny)
-Bob & Doug McKinzee
This makes me happy! (Score:5, Insightful)
They are THAT evil.
Anything to force them to compete on merits and features must be a good thing.
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I have the cheapest plan they offer [without any of the addons]. So now when people call me, I have no idea who it is, and they can't leave voice mail. Totally le awesome. And I still pay like $30/mo after taxes, and only really talk for ~45 mins per month.
Anything to force Rogers and Bell to relinquish their license to print money would be nice.
Re:This makes me happy! (Score:5, Informative)
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About that system access fee, you can sign up on the class action lawsuit against cellular providers. See the Merchant Law Group [merchantlaw.com].
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Rarely do you ever see anything out of people sitting on their ass and just waiting. I don't care if I can recoup the excess charges. I'll just be happy if the carriers get fined a whole lot of money and then stop their shady practices. It might not right the past wrongs, but it will ma
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I would totally love to see resolution to this lawsuit, whether it be we receive our "system access fees" back, or that the future service is better.
Just so you know, outside of the named litigants and the law firm handling this, the rest of us are doing exactly that, sitting on our collective asses waiting for a payout.
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With Telus, when I initated a call, it would call immediately, with Rogers, I would have to wait till my phone finds a channel, which could take several tries. Also, on Telus, the sound quality was amazing, clear, crisp, on Rogers you get static and particularly with the loaner piece of shit phone I ha
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Using Vodafone
$11 for a plan with 50 free minutes, 20 minutes bonus from plan signup, 30 minutes for old customer. $0.07 for SMS, free voice mail (but I've disabled it), free caller id, free to receive calls and messages. I don't use MMS, so I don't know about their price.
I have months when I use double the minutes, and months when I use half of them. They roll on the next month
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It's even worse than that.
Videotron
Partnered with Rogers.
EastLink
Partnered with Rogers.
Petro Canada
Based on Ztar, a GSM MVNE. Depends on the Rogers network.
Fido
Owned by Rogers.
7-Eleven
Also based on Ztar, also depends on the Rogers network.
Solo
Owned by Bell.
SaskTel
Saskatchewan only. Prepare yourself for huge roaming fees out-of-province.
MTS
Manitoba only. As above.
CityWest Mobile
Northern British Columbia only. As above.
Harmony Mobile
A promising and interesting company, but also a
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Indeed they are evil (Score:2, Insightful)
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Telus Vs Verizon (Score:1)
You ignore almost everything though (Score:3)
local/long distance calling is 50 dollars a month for 400 minutes within Canada. I pay the same thing for my phone plan in America.
That is but one component of the services these companies offer. You completely ignore everything else:
* When Telus advertises "$x for y minutes" that "y minutes" is ALL
In news this week (Score:5, Funny)
In news this week: Canadian government regulation on mobile telecom industry is welcomed by readers of Slashdot. "Truly wonderful example of succesful goverment regulation!" -Anonymous Slashdot commenter
In other news: FCC castigated by readers of Slashdot [slashdot.org] for trying to regulate cable TV industry. "Yeah, like more government regulation is what we need!" -Anonymous Slashdot commenter
Don't hold your breath... networks are expensive.. (Score:5, Informative)
Fido* was the price leader. They started billing by the second, unlimited voice plans, etc. Except they didn't make much money (actually they went bankrupt once). When Fido got purchased by Rogers, the competitive pricing pressure was taken off of everyone. Rogers got the best of it, since they became the only choice for those who need GSM (and those international users who end up roaming on Rogers). So prices have stalled, and in many cases edged up.
Naturally, we scream for more competition. I'm sure some company will win the frequencies, but I wouldn't bet on them succeeding.
Networks are bloody expensive to build. And, since Canada's land mass is larger than the US, with only 30M potential customers, it's more expensive to build on a per-capita basis. Granted, you don't need to provide service to the bulk of the unpopulated land, but still, a town in Canada is a whole lot smaller than a town in the USA.
Even today, Telus and Bell share their "home" networks with each other in the West and East respectively to provide national coverage while they complete their build-outs.
So, yay for more competition. Whoever it ends up being, I wish them well, and luck... they'll need it.
* Fido is operated as a distinct brand on the Rogers network, but a lot has changed - lots of nickel and dimeing.
Re:Don't hold your breath... networks are expensiv (Score:1, Informative)
There is absolutely no reason that I pay $100 - $150 a month for BlackBerry service that would cost $50/month if I lived in the states. Apparently I am not the only one who
Re:Don't hold your breath... networks are expensiv (Score:4, Insightful)
The reason this worked in Norway is regulation far beyond what is being proposed in Canada: In Norway anyone can start a cellphone network and can demand roaming access from the licensees at cost + a limited profit margin, under the argument that since spectrum is a imited resource, anything else would restrict competition.
As a result, there are tens of cellphone companies, some of which owns their network, some which own parts of their network (where it's cost effective compared to the roaming costs) and some who only sell additional services on top of the other networks.
It's similar to the "local loop unbundling" for fixed line telephony in several European countries (where the companies owning the physical lines are required to sell access to those lines for customers who want to use a different provider at cost plus a limited profit margin again) where the argument is pretty much the same (you can't have everyone digging up streets to lay more cable, so it's either less competition or treat the local loop as a semi-shared resource).
These are typical examples of where regulation leads to more choice and far more competition, and thus a far better working market.
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Re:Don't hold your breath... networks are expensiv (Score:4, Informative)
...and you're about to give a great example of why the rest of Canada resents Ontario (btw, I live in Ontario too, though I haven't always)
12.8 million [wikipedia.org] out of 33.1 million [wikipedia.org] is a "vast bloody majority"? McGuinty really needs to get on that whole "reinvesting in schools" thing.
Yes, let's compare a small part of Ontario with entire states. Forget the rest of Canada, and even the rest of Ontario (Ontario isn't even close to the most dense province population wise; remember that it not only has the largest population, but has the largest land mass too).
I would be shocked if a phone company came along with the balls to say "our coverage area will only be in the golden horse shoe". I suppose if they priced competitively it might work for a little while, but I suspect that sooner or later customer's would take a drive more than two hours from their home, and get pissed when their phone stopped working.
Actually their is a great reason. Collectively we let them. When alternitives come along we don't flock to them, we just stick with the guys that are screwing us and when alternitive are not present we don't cancel the service and wait for them to be reasonable, we just pony up the money (as you are doing apparently).
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We used to call that phone company Fido, then Rogers bought them and the coverage expanded to cover what a normal cell phone co covers.
Clearnet used to be pretty much like that too, except with Clearnet you had coverage outside the cities as long as you stayed on a major highway.
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We used to call that phone company Fido
While Fido's coverage was certainly lacking, it was nowhere near as bad as I was suggesting. (I can't speak to Clearnet, but I am pretty sure it was better than was suggested)
The OP thought that the higher population density of southern Ontario ought to make it viable for additional competitors to be in that market, suggesting that it could be considered independent of the rest of Canada. My point was that consumers have come to expect they can travel and still get coverage, so no part of Canada can be
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My sister had a fido for a while. We lived in Oshawa, she could not get to Columbus (which is still part of Oshawa) without losing her signal. As far as Fido was concerned they only needed to cover.. lets see... Google maps says 14.6km north of the 401.
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That, combined with your poor spelling and grammar, would suggest that your school needed as much investment as gp's.
You know what really sucks? When somebody tears into you and you have no defense because they are completely right. My original post is filled with errors, both grammerical and factual.
I can't even claim that I was rushed, because the final version is much improved over the one I previewed and then chose to edit. About the only excuse I have is that I was so enamoured with my own arguement that I made mistakes, both big and little. (which isn't to say that its a wonderful arguement; more like I'm an Alb
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I'm an Ontario boy who got dragged out to Saskatchewan (and hopefully Alberta soon enough) by the military. There's definitely a difference in culture... not to mention climate.
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Are you sure about that?
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It isn't, I know; I just was typing without thinking.
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Cheers, Paul
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This has nothing to do with expensive networks (Score:2)
It is the government's insistence on subsidizing their friends by blocking foreign competition that is the root cause of high cellular service prices in Canada. Foreign companies were allowed to bid last time around too, and some did. But once they realized that without a controlling position th
Those who forget history... (Score:2)
Re:Don't hold your breath... networks are expensiv (Score:2)
Re:Don't hold your breath... networks are expensiv (Score:1)
Also when the same thing (deregulation) works for third world countries, it can't work for Canada?
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Re:Don't hold your breath... networks are expensiv (Score:1)
That is an incorrect statement. Check out the facts: http://education.yahoo.com/reference/factbook/countrycompare/area/3d.html;_ylt=As1XMsN8kgSx746VWazy_s7PecYF [yahoo.com]
The US is slightly bigger in land mass. To your credit though, the difference is slight and you are correct that the cost to implement a nationwide network would end up being more costly per user.
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A lot of the Canadian territory up north is mostly water...
A very interesting article (Score:4, Insightful)
Re:A very interesting article (Score:5, Informative)
I hadn't checked to see who wrote the article, but when I read that I knew it was CBC. You should check out the online stream of the radio broadcast - great stuff!
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http://www.cbc.ca/arts/story/2003/08/26/gemini260803.html [www.cbc.ca]
Or at least that is what the CBC would have you believe...
I'm not sure how well they do on the international stage though.
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The idea that freedom is possible witho
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Sorry you can't have it both ways. If you want a "Free Market" the government can have no hand in the economy. We have a mixed market economy as are most in the world. "free market" is just an economist utopia and will never happen.
"Free" vs "Open" market (Score:2)
There are semantics and confusion of terminology in economics, just like in the realm of software development (open source vs Free software vs freeware).
What Canada has in the wireless market is a fairly "closed" market. There are 3 big players and each do their best to minimise interoperability and retain customers (they call the
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If you have a choice of nearly-identical plans on a choice of 3 nearly-identical companies, can there really even be said to be "a market" in the first place?
The cell phone 'market' in Canada from the consumer's point of view looks more like a soviet-style command economy than a free market, just instead of the Politburo pushing you around you have Ted Rogers doing it.
Of course, Bell, Rogers, and Telus don't have the ability to send you to a gulag, so there's that...
You wanna see a comparison of
Hopefully one of the new entrants will be GSM (Score:2)
Fido used to have a plan called "City Fido" where you get unlimited plans local calling for $40 flat. Now, those plans, while not being offered any more, can be still be transferred from person to person, with the person receiving the plan usually paying over $400.
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I work for SaskTel and that was a "Industry Update" we received in our email.
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but phone networks are so dumb (Score:5, Interesting)
Phone systems are a relic of the last century. A much better use would be mobile IP addresses where consumers choose their own devices for Internet, text, voice, or whatever and cell phone companies can't limit our choice of devices or nickel and dime us for trivial stuff, like opening a port for email and selling it as a service (I'm sure glad the cell phone companies aren't running the Internet).
So perhaps we need to stop thinking in terms of phones and start thinking more about expanding the wireless spectrum to be part of the Internet because that's where we'll get real choice and innovation.
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You're obviously not a Rogers customer.
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I would like the system to be more open, but I don't want the sound quality to suffer even more just by letting people be cheapskates and use worse quality devices like a roaming Skype device. I certainly would be more inclined to hang up if it's like the last Skype call I received.
Sweet!!! (Score:1)
It won't change much (Score:2, Interesting)
(1) little companies will come forward
(2) said little companies will find it tough competing against big players, due to unfair practices
(3) Federal govt will ignore problem due to incompetence and/or backhanders
(4) little companies will end up getting bought out by Rogers, et al.
(5) Big companies increase their monopolistic stranglehold
Mr. Ted Rogers said as I recall ... (Score:2)
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Ted Rogers once boasted that he'd "never in his life sent a corporate income tax to Ottawa".
Remember the negative billing when the new cable tv channels came out?
Ted Rogers calling other people out on an issue of fairness would be like Bush criticizing Canada for spending too much on the military.
The OECD found that Canadians have the most expensive plans in the world, 2 or 3 times the price of europeans, 1.5-2 times the price Americans pay.
And before somebody pulls out the tired argument
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