Wireless carriers joust over issue of special treatment of ESMR spectrum

Canada’s wireless carriers continue to spar over proposed changes regarding the treatment of ESMR spectrum holdings under existing spectrum aggregation limit rules. Telus Mobility continues to claim the move would be a simple adjustment and is only a minor change, but other carriers believe treating ESMR spectrum differently would have far-reaching competitive impacts. Neither side seems willing to budge from initial statements made to DGTP-003-02. Bell Mobility (representing the Bell Wireless Alliance), Microcell Telecommunications Inc., Rogers Wireless Communications Inc., and W2N Inc. are opposed to the proposal. In its June 25 reply comments, Telus states that the other wireless operators have not presented any compelling evidence that Industry Canada shouldn’t move forward with modifying the treatment of ESMR spectrum. "Indeed, it appeared to us that our competitors struggled mightily to find and/or create arguments in an attempt to persuade Industry Canada to hold back and retain the status quo," the company notes, pointing out some of the plan’s opponents’ deficient arguments. "In all our years of reviewing Gazette comments we have rarely observed a weaker argument than W2N’s opening complaint that Industry Canada should not change spectrum cap policy as quickly as the weather! Similarly, we note Microcell’s plea that Industry Canada first resolve every other major Canadian telecom policy issue prior to dealing with this relatively minor and straightforward issue. Even Bell seemed unable to muster little more than the suggestion to utilize an awkward and inefficient waiver process rather than making the policy adjustment." The plan’s opponents maintain that the impact of Telus’ application is neither minor nor straightforward. "The BWA strongly suggests that the department not be deluded into considering Telus’ request as one comprising a minor modification or tweaking of the spectrum cap policy," Bell notes in its reply comments. " is a change that could seriously disrupt the competitive equilibrium of this market at a critical juncture. While it may be in Telus’ competitive interest to seek such a change, it is clearly not in the interest of the wireless industry as a whole or the public interest." Telus rebuts arguments that changing treatment of ESMR spectrum holdings would confer an unfair advantage on it. It points out that Rogers and Bell offer similar dispatch-type services on spectrum that isn’t covered in the spectrum cap. "Telus Mobility believes that should modified treatment of ESMR spectrum be denied, that competitive equity would demand that the spectrum for these other similar, competing services be aggregated under the spectrum cap as well," the company notes. Telus also indicates that some of the spectrum it wants to use for ESMR services isn’t new spectrum. Some of the opponents argue that giving Telus access to more ESMR spectrum would translate into an inefficient use of the spectrum. They contend that using cell-splitting technologies is a method to more efficiently use the spectrum. Telus disagrees with that assessment, however, indicating that actually the reverse is true. "ome of the spectrum that is being contemplated for use in the ESMR system is not new spectrum but is spectrum already licensed by Telus Mobility and that the current treatment under the cap effectively restricts to inefficient analog service," the company writes. "Telus Mobility’s proposal seeks to remove the constraint that currently prevents it from re-deploying certain analog spectrum it already holds to much more efficient digital operation in our ESMR network. Indeed, this is possibly the single most important reason for our original proposal to the department, yet our competitors seem to be completely unaware of it and all have completely failed to address it."

Wireless carriers joust over issue of special treatment of ESMR spectrum

News | July 9, 2002

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