Rogers CEO Says Wireless Speeds Will Suffer If Verizon Wins

Rogers CEO Nadir Mohamed yesterday warned Canadians that if Verizon wins two blocks of the valuable 700 MHz spectrum, some Canadians will suffer from lower wireless speeds. Here’s what he said to The Globe And Mail:

The company that is left out would find its service increasingly marginalized as its rivals use their new spectrum to increase wireless Internet speeds, Mr. Mohamed suggested. That would affect millions – even the smallest of the Big Three has more than seven million customers – at a time when subscribers are using wireless Internet more than ever.

“It’s really important that we all understand the importance of spectrum,” Mr. Mohamed said in a meeting with The Globe and Mail’s editorial board. “We have a tremendous resource that is an asset and shouldn’t be seen any differently than any other scarce resource that Canada has.”

That is something that I’ve previously suggested might happen. The problem that I have with the above statement is that it isn’t exactly true. Bell and Telus share an LTE network as I type this. So you cannot tell me that if the “loser” of this auction wouldn’t dial one of the “winners” up and exchange some “financial compensation” shall we say for access to the 700 MHz spectrum. Then the universe would be just as we see it now.  Also, and I admit that this is the cynic in me coming out, it almost sounds like Rogers thinks it may actually leave the auction with nothing. If that were the case, it may spark mass defections to other carriers. That would be worst case scenario for them.

This is really fun to watch, is it not?

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