Globe: The future of wireless competition

The Globe and Mail's Rita Trichur gives an overview of an issue that will have a huge effect on the cost of wireless Internet in Canada, and the shape of the industry going forward: the upcoming spectrum auction. The way the government manages this auction will determine whether Big Telecom gets to retain their stranglehold on the wireless industry. Article from Rita Trichur for The Globe and Mail: The explosive popularity of mobile devices like smartphones and tablet computers is transforming Canada’s telecommunications industry. Canadians’ data use is surging, heaping pressure on wireless companies to provide faster mobile broadband speeds.

Now, companies of all sizes are eager to implement what is known as Long-Term Evolution technology, the hugely important standard for existing and future smartphone networks. Doing so, however, requires significant network investments and more mobile spectrum.

“This is a game of speed,” said Ken Engelhart, senior vice-president for regulatory affairs at Rogers Communications Inc. “Whoever has the faster network has a lot of cachet with customers.”

The next year is poised to be a game-changer for the telecom industry as the federal government mulls an overhaul of the sector’s foreign investment rules and unveils its long-awaited vision for a crucial auction of wireless licences on the valuable 700 MHz frequency. What’s ultimately decided by Ottawa has the potential to shake up the competitive landscape by triggering consolidation, which could, in turn, impact pricing trends. The ramifications of the government’s weighty decisions will be felt by businesses and consumers alike. Read more »

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Read more at theglobeandmail.com

Check out OpenMedia.ca's recommendations for the wireless spectrum auction, and send our report to your MP.