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The List Of Bidders For The 700 MHz Spectrum Hits The Streets

Posted in Commentary with tags , on September 23, 2013 by itnerd

This is the moment that all Canadians have been waiting for. It’s time to present the list of companies who will be bidding on the 700 MHz spectrum blocks this January according to Industry Canada:

  • 1770129 Alberta Inc.
  • Bell Mobility Inc.
  • BH Wave Acquisition Corporation
  • Bragg Communications Incorporated
  • Feenix Wireless Inc.
  • Globalive Wireless Management Corp.
  • MTS Inc.
  • Novus Wireless Inc.
  • Rogers Communications Partnership
  • Saskatchewan Telecommunications
  • TBayTel
  • TELUS Communications Company
  • The Catalyst Capital Group Inc.
  • Vecima Networks Inc.
  • Vidéotron

Now there are names that you will recognize, and a few (1770129 Alberta Inc. for example) you’ll wonder about. No worries. To get the full cast of characters, I’ll point you to this Globe And Mail article which does a great job of telling you who they are. Of note, there’s no obvious foreign entrants. Something that will make the big three extremely happy. However there are some oddities. I would suggest reading the Globe And Mail article to see how “interesting” some of the bidders are.

The next step in the process is to actually bid. Tune in January 2014 for that. It should be fun.

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Verizon Had More Interest In Canada Than Previously Thought

Posted in Commentary with tags , , on September 20, 2013 by itnerd

This should send a chill down the backs of the big three. Verizon as far as we currently know isn’t coming to Canada. But the company had a lot of interest in coming north of the border according to The Globe And Mail:

Before pulling the plug on its Canadian expansion, Verizon tabled a $350-million preliminary offer for struggling start-up Mobilicity over the summer. That was in addition to its $700-million initial offer for another small carrier, Wind Mobile. Verizon also looked at another way of entering the market that would not require a spectrum purchase, but would involve leasing space on an existing wireless network.

Verizon’s offer for Mobilicity, which is legally know as Data & Audio-Visual Enterprises Wireless Inc., largely reflected the value of the small carrier’s spectrum and did not include any assumption of debt. Mobilicity paid $243.1 million for its spectrum licences during the 2008 auction. It launched service in 2010 and has roughly 250,000 customers.

Verizon spent months studying the merits of both the Mobilicity and Wind deals, with a large contingent of its staff spending long stretches in Canada as local law firms and accountants conducted due diligence on its behalf.

So Rogers, Bell, and Telus really dodged a bullet on that one. And they may have dodged another one:

“We have received confirmation from Verizon, AT&T, Sprint, and T-Mobile USA that they did not submit applications for the Canadian 700 MHz auction,” wrote Jeff Fan, a telecom analyst with Scotia Capital Inc. in a note to clients late Wednesday. “We believe the absence of a large U.S. operator removes a threat for the Canadian wireless carriers … Although there is still speculation about other large global operators being involved, we do not believe they would have the same impact on Canada as the U.S. carriers.”

If that’s true, then it’s truly business as usual with the Canadian consumer ending up on the short end of the stick because there’s an oligopoly in Canada. Pity.

Though there might be a shock on the 23rd. Circle that date on your calendar.

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Today Is Deadline Day For The Spectrum Auction… [UPDATED]

Posted in Commentary with tags , on September 17, 2013 by itnerd

…..And the rules state that anyone who wants to participate in the auction must have deposits in today by noon EDT.

So, who’s participating? We won’t know for sure until September 23rd, but you can make some guesses. The big three telcos are sure to be part of this. So expect Rogers, Telus, and Bell to be on the list. Wind Mobile as I reported last night appears to be joining the party. Beyond that, it’s rumor and speculation. There may still be an opportunity for someone outside of Canada to join the fray as well. iPhoneincanada.ca is reporting that Vodafone, AT&T and Norway’s Telenor might be interested in joining the auction. Thus there may be a reason for the big three to sweat.

You might want to put September 23rd down on your calendar as it will be interesting to see who’s in and who’s out.

UPDATE: East coast wireless carrier Eastlink in an interview has confirmed that they’re in.

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Wind Mobile To Bid In Spectrum Auction

Posted in Commentary with tags , , on September 16, 2013 by itnerd

This doesn’t surprise me in the least.

The National Post is reporting that Wind Mobile is going into the spectrum auction. And they’re going in big:

Wind is the first of the trio of new entrants, which also includes Mobilicity and Public Mobile, to declare its intentions to bid in next year’s auction.

While Canada’s dominant carriers BCE Inc., Rogers Communications Inc. and Telus Corp. are limited to bidding on just one block of spectrum out of the four blocks available, others can bid on up to two blocks.

The cost of placing a 5% deposit to bid nationally on two out of the four blocks amounts to about $16-million.

Wind did not disclose whether it plans to bid regionally or nationally as the players are barred from commenting publicly on their auction strategies.

If they do win some spectrum, or both pieces of spectrum that they can bid on, then they can step up to the big time. That in turn would make them someone to fear if your one of the big three. Though, they are looking for a buyer at the moment. Although that may change if they win.

I wonder who else will enter. The deadline is tomorrow. Stay tuned.

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Hey IT Nerd! Did Bell Really Do Us A Favour By Cutting Roaming Rates To The US?

Posted in Commentary with tags , , on September 16, 2013 by itnerd

Today seems to be a popular day for questions. Here’s another one:

Question for The IT Nerd. Did Bell really do us a favour by cutting roaming rates to the US? 

Uh, no.

I’ve pointed out previously that the big three hose Canadians when it comes to roaming. And I wrote that two years ago. This announcement by Bell doesn’t change the fact that roaming rates are still too high, never mind Canadian cell phone rates in general. Plus this announcement doesn’t do anything about roaming rates in Europe, Asia and other places. And, let’s not forget the fact that  many Canadians forget to turn on one of these roaming packages? Thus they come home to three or four digit cell phone bills. This is why my unlocked iPhone 5 gets a local SIM put in it every time I travel abroad. It’s far cheaper than anything the big three offers.

Sorry, I cannot say with a straight face that Bell has done Canadians a favour by cutting their US rates by 50%. It’s a nice gesture, but they along with the rest of the big three have to do much, much better.

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More Revelations Regarding CDN Gov’t Cell Carrier Access

Posted in Commentary with tags , , , on September 16, 2013 by itnerd

This morning, I wrote about the fact that the Canadian government got access from Canadian cell carriers to eavesdrop on Canadians. Now The Globe And Mail who broke the original story is now following up that story with the news that the Canadian government tried to use the upcoming spectrum auction to get even more access:

The federal government tried to use an impending public-airwaves auction to alter the language of a surveillance accord with mobile-phone companies, acting on concerns that police lack the tools to lawfully intercept Internet data that passes through smartphones.

Records show that, following consultation with industry officials, the government pulled back on some of the proposed changes, which were not discussed publicly.

Here’s why you might want to pay attention to this:

Cutting through the jargon, observers say the proposed change would have opened up a vast new realm of surveillance on Internet data passing through Canadian mobile phones – not to mention a Pandora’s box of potential privacy problems.

“The changes that are proposed by Industry Canada represent a significant expansion of what communications could be placed under surveillance,” wrote Christopher Parsons, a PhD candidate at the University of Victoria and an expert in digital-privacy issues, in a blog posting early this year.

He wrote that the contemplated change would amount to an “entirely new means of communication that may be captured (e.g. e-mail, streaming music and video usage, TV-watching, gaming over wireless networks, etc.). … Thus, whereas carriers previously had a limited set of clear interception requirements, this simple change in language would substantially expand what they would be required to be able to intercept and preserve.”

This does not give me the warm fuzzies. Earlier today I mentioned that  I see the need for this and I’m not shocked that this is going on, but I would like to know when and how this is used and what oversight there is. But now after reading this latest article, I really feel that this has to brought out for discussion in the public realm sooner rather than later. The fact that this is basically being done behind closed doors is troubling and undemocratic. I truly believe that we can and should do better.

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Bell Slashes US Roaming Rates By 50%… But Fumbles Getting The Message Out

Posted in Commentary with tags , , on September 16, 2013 by itnerd

I was browsing Twitter this morning and I spotted this Tweet that caught my eye:

 

Digging deeper into the link which was a news release, I found these details:

Effective tomorrow, these US roaming cost reductions benefit both existing Bell customers and new customers. You can sign up before you travel, but Bell also texts customers who take their phones to the US to let them know they can easily sign up for a low-cost US travel plan while on the go. When traveling in the US, customers can choose the plans from Bell self serve on their smartphones or by calling 1-800-667-ROAM (7626). To learn more, please visit Bell.ca/Travel.

$25 US 30-day Travel Bundle
Formerly $50, the all-in-one $25 US Travel Bundle includes 50 Megabytes (MB) of Internet and other data, 50 anytime minutes for calls within the US or back to Canada, and unlimited incoming and 200 sent text messages. Additional data is 50 cents per MB, additional calling 25 cents per minute, and additional sent texts15 cents per message.

$20 US 30-day Travel Add-ons
US Travel Add-ons give customers the option of taking just 1 or 2 mobile services and in large quantities. Formerly $40 each, the 3 US Travel Add-ons offer big buckets of data, voice or texting for just $20 each: 100 MB of data, or 100 minutes of voice calling, or unlimited incoming and sent texts. Extra usage is 20 cents per MB on the data plan and 20 cents per minute for voice calls.

Also of interest, Bell took the time to say that this change was due to the fact that they were listening to customer feedback. Plus they also took the time to cite a variety of studies that make the argument that Canadians are paying less than they think they are when compared to other countries. Now, I think the latter part of this is a #fail. I say that because it’s great to say that you’re lowering prices based on customer feedback. But Bell should have left it at that. To go on to make the argument that wireless rates are not as bad as Canadians think they are really takes what was basically a good news story, and turns it into something that didn’t exactly leave me with the best taste in my mouth. 

So, how long do you think it will take for Rogers and Telus to follow suit? 

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Wireless Companies Gave Government Access To Spy On Canadians: Report

Posted in Commentary with tags , , , on September 16, 2013 by itnerd

Well, this might be a bit troubling. According to a report in The Globe And Mail, Canadian wireless companies agreed to give the government the ability to monitor calls and get their hands on phone data:

Documents show that court-approved surveillance in Canada is governed by 23 specific technical surveillance standards known as the Solicitor General’s Enforcement Standards (SGES).

Any firm taking part in a wireless auction can obtain a copy, but the contents are not available to the general public.

But The Globe and Mail has obtained past and current versions of the accord, which governs the way that mobile-phone companies help police pursue suspects by monitoring telecommunications – including eavesdropping, reading SMS texts, pinpointing users’ whereabouts, and even unscrambling some encrypted communications.

The troubling part is that this has been going on for nearly 20 years without Canadians knowing about it. Now you know with a story like this, there will be some explaining to do. Let’s start with the carriers:

Canadian carriers say they support the need to supply surveillance information. “Telus fully supports law enforcement’s need to carry out interception of communications with a properly executed court warrant,” said company spokesman Shawn Hall, before adding that Telus “will challenge court orders we think overreach.”

Mark Langton, a spokesman for BCE Inc., also said his company only provides police access to its systems if it sees a court-approved warrant. “The standards are public and are a requirement for a wireless licence – they would for example be made available to anyone taking part in a spectrum auction,” he said.

Now let’s hear what the government has to say:

“This document contains sensitive content and is not publicly available,” said Jean-Paul Duval, a Public Safety Canada spokesman, in an e-mail declining an interview. 

Oh, they had nothing to say.

Now there are a few ways to look at this:

  1. Nobody should be surprised that this is going on. After all, there are likely all sorts of things that revolve around national security that are secret. Thus there’s nothing to see here and this is nothing to be concerned about.
  2. We should be outraged that the government did not tell Canadians about this. We should be wondering if there’s oversight and what is actually being done with the info they’re collecting. If they are collecting data. We should also be wondering if the government is just going after “bad guys” or anyone they feel like.

I personally fall into a third camp. I see the need for this and I’m not shocked that this is going on, but I would like to know when and how this is used and what oversight there is.

How do you feel?

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EXCLUSIVE: Rogers Talks To The IT Nerd About Canadian Wireless Policy

Posted in Commentary with tags , , on September 11, 2013 by itnerd

Frequent readers of this blog will be aware that I do my best to get both sides to any story I write about. The battle over the 700 MHz in particular and Canadian wireless policy in general is an example of that. I have my views on this issue, which is that there isn’t enough competition in the marketplace and that needs to change. But to balance things out, I reached out to both Rogers and Telus to get their perspectives. Rogers responded this morning and here’s what they had to say:

What’s the core issue that makes Rogers want to protest the rules that surround the spectrum auction?

We’re asking the government for a fair and level playing field. We welcome competition from any company, foreign or domestic, but believe the government’s wireless policy should not treat large foreign companies better than Canadian companies.

Current wireless policy was designed to assist small Canadian start-ups, not massive foreign companies. Under the current policy foreign carriers can buy twice as much prime spectrum as Canadian incumbents. The 700 MHz auction rules impose minimal rollout obligations on successful bidders, meaning new entrants, even huge transnational ones, would have no incentive to build beyond lucrative urban markets. This could discourage continued investment in rural and remote communities by forcing carriers to divert resources to urban markets just to stay competitive. Incumbents are also barred from purchasing Canadian upstarts that are looking for buyers- meaning they could be sold at significantly lower prices.

Does Verizon’s exit change anything?

We always have and we always will welcome competition. The Fair for Canada campaign was never about one particular carrier. Our ask of the government remains the same: a fair and level playing field that treats large foreign carriers the same as established Canadian carriers.

How would Rogers like to see the rules around the spectrum auction set up? 

Specifically we’re asking the federal government to:

  1. Offer equal bidding rights in the 700 MHz auction – give Canadian carriers the same rights as large foreign incumbents
  2. Create an open environment – if a Canadian wireless player seeks a buyer, everyone should be able to bid
  3. Strengthen auction rollout requirements – ensure foreign carriers invest and build a national network in rural areas

How would Rogers like to see telecom policy in general take shape in Canada? 

We share the government’s objective of an open, competitive market. We would like to see the government address the issues we’ve outlined above to create a fair and level playing field that promotes competition and a sustainable wireless industry in Canada. The government also has tools at their disposal to address any issue affecting consumers that the market isn’t correcting, i.e. through the Wireless Code.

The industry is not in the same place that we were 5 years ago. Collectively we’ve made a lot of important progress, prices have come down almost 20%, and we’ve improved network coverage and quality across the country. We’ve heard from our customers that we need to focus on addressing consumer pain points. We value that feedback and are working hard to improve customer experience.

Canadians perceive that they are not getting cell service at a fair price with good service. How do you think that came about and how do you change that perception?

As an industry we have not always focused on the consumer in the way that we should have. At Rogers,  we are working hard to address customer pain points. We know that’s not something done overnight and we know we need to do a better job letting customers know we hear them and are working to address their concerns. We’ve made some important strides over the past several years, but acknowledge we still have work to do.

Any closing thoughts?

We believe that Canadians are more engaged than ever about the future of Canada’s wireless industry; this is a good thing for both consumers and carriers. It’s important that we have a constructive dialogue to move forward. We think the best solution for Canadians is an open, fair market.

I’d like to thank Rogers for taking the time to answer my questions. As soon as I get a response from Telus, I’ll get it online for you to read.

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Bell Sues Feds Over Wireless Policy

Posted in Commentary with tags , , on September 9, 2013 by itnerd

I was wondering when another member of the big three telcos would join Telus in suing the Canadian Government (in fact the’ve done it twice). Today The Globe And Mail is reporting that BCE who is the parent company of Bell (and owner of The Globe And Mail by the way) is suing over the Government’s wireless policy:

The legal challenge stems from a government decision in March to expand and extend obligations for incumbent carriers to provide roaming and tower-sharing to new entrants. Previously, the rules included some roaming measures to help new carriers for five years. But now the rules say those roaming provisions will continue indefinitely, and include new measures to reduce the timelines for carriers to seek arbitration when disputes arise.

BCE argues that the federal government cannot retroactively change conditions of wireless licences it bought years ago.

BCE’s Aug. 30 application for judicial review of the wireless policy comes as the Big Three carriers wage a public-relations battle against government efforts to attract new entrants to the wireless market.

My gut feeling on this is that these lawsuits are out there to ensure that nothing changes the status quo so that even if competition comes in, the price of entry will be so high that it won’t be worth doing. Having said that, I can see why the Government would want rules like this. But I think the better way to go is less legislation via dropping the sort of restrictions that keep foreign companies out. Then do everything possible to get them into to the country so that they can set up shop and influence prices that way. Now if that were to happen, the big three would likely still complain loudly, but you would likely not see these sorts of lawsuits being filed.

Let’s see if Rogers, joins in on the legal action.

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