TORONTO, MONTREAL, and VANCOUVER – Industry Minister James Moore made it official yesterday that Ottawa was not going to budge on its wireless policy framework, but that hasn’t put an end to the public lobbying campaign mounted by Canada’s Big Three incumbents, who issued new pleas today calling on the federal government to close what they say are loopholes that give preferential treatment to major US wireless carriers.
Bell, Rogers, and Telus each issued press releases Thursday urging Ottawa to reconsider the wireless rules that currently would allow a U.S. carrier like Verizon to enter the Canadian market through a takeover of struggling carrier Wind Mobile by taking advantage of regulations initially designed to benefit smaller entrants.
The Big Three also revealed that they sent a joint letter signed by each carrier’s board of directors to the Prime Minister on July 9 sharing their concerns on this “critical” issue. The joint letter is also featured on a new consumer website called www.FairForCanada.ca set up by Rogers, Bell and Telus as part of its public lobbying campaign.
Statements from each incumbent’s president and CEO in the press releases issued today echo the same message: that while Big Three support competition in Canada’s wireless market, Ottawa must ensure it provides a “level playing field” where the same rules apply to both Canadian and foreign competitors.
That would include offering equal bidding rights to both Canadian carriers and foreign incumbents in the upcoming 700 MHz spectrum auction, allowing Canadian Canadian carriers the opportunity to acquire wireless startups looking for a buyer (under the current rules, a U.S. carrier like Verizon would be able to purchase smaller entrants like Wind and Mobilicity, but the Big Three would not), and requiring U.S. carriers that enter the Canadian market to build out their own infrastructure instead of allowing access to existing networks that have been built by Canadian companies.
“We’re at a critical time in our industry,” said Rogers president and CEO Nadir Mohamed. “We believe it’s essential to take a step back and make sure we have the right regulatory policy that will meet the current and future needs of Canadians while ensuring our sector is strong and vibrant for years to come.”
“The situation has changed now that Verizon has confirmed it may take advantage of these loopholes to gain preferential treatment in Canada, and we are calling on the Minister to adapt to that change and close the loopholes,” said Darren Entwistle, Telus president and CEO.
“We’ve now seen serious concern about the wireless loopholes from all corners – business and labour leaders, financial and business analysts, editorialists and academics, and thousands of other Canadians,” said Bell president and CEO George Cope. “It’s time for Ottawa to confront these loopholes, their costs to Canadians and the implications for Canadian industry and infrastructure.”
