MONTREAL – Bell Canada is the latest incumbent to voice its dissatisfaction with the federal government’s wireless policy framework, and today called on the government to reconfigure that policy to amend the “loopholes” that favour foreign wireless carriers over Canadian incumbents.
"Federal wireless policies intended to help small startup competitors unintentionally give the same advantages to major US wireless companies that want to enter Canada – advantages paid for by Canadians and denied to the country's major wireless carriers. With the potential impact on the country's airwaves and infrastructure, it's an unprecedented situation that affects all Canadians," Bell Canada president and CEO George Cope said in a statement from the company.
Bell wants the government to close three loopholes in the wireless regulations, that, in a nutshell, would enable Verizon to: 1. Buy twice as much new 700 MHz wireless spectrum in the upcoming January 2014 auction as Canadian carriers at a lower price; 2. Gain entry into the Canadian market without any significant investment in the country’s existing infrastructure; and 3. Acquire smaller Canadian wireless companies such as Wind Mobile at “fire-sale” prices and acquire all their assets – including existing wireless spectrum.
With a market cap of $120 billion – far higher than the total value of Big Three incumbents combined – Cope contends that “Verizon is not a company that needs special advantages or subsidies to compete.”
The incumbent carrier wants Ottawa to close the loopholes by promoting open competition for access to Canadian airwaves by allowing both domestic and foreign carriers to bid on two blocks of spectrum in the upcoming 700 MHz auction.
Bell says that a level playing field should also be extended to the acquisition of wireless start-ups by allowing the incumbents a chance to bid against Verizon to acquire smaller entrants like Wind and Mobilicity.
Thirdly, Bell says U.S. carriers that enter the Canadian market should be required to build out their own infrastructure instead of allowing access to existing networks that have been built by Canadian companies.
"With the loopholes in the rules, Canadian companies cannot even try to acquire startup wireless companies at any price, but American companies can. And they can bid for more of our country's airwaves and at a lower price. Favouring US companies over Canadians threatens our national communications industry and its place in Canada's future growth, productivity and prosperity," said Mirko Bibic, Bell’s chief legal and regulatory officer. "These special rules were intended to help new competitive start-ups. We ask how the federal government could now hand over Canadian spectrum, infrastructure and capital to U.S. corporations – especially when Canadians do not have similar rights south of the border."
Bell also launched a website today called Bell.ca/PlayFair that outlines for consumers the company’s position and asks the government to “Give Canadian companies the same chance as U.S. competitors.”
