Former Microcell exec lambastes Canadian wireless industry

The Telecommunications Policy Review Panel’s (TPRP) recommendations about spectrum management aim to help Canada’s wireless industry move up from its current back-of-the-pack status among the world’s mobile sectors, according to André Tremblay, a TPRP panel member. The former CEO of Microcell Telecom-munications Inc. – the firm now owned by Rogers Communications Inc. – spoke at a Canadian Wireless Telecommunications Association (CWTA) event in early May. He said our mobile sector is embarrassingly off the pace set by other countries. "Canada cannot be considered a leader," Tremblay said. "To the contrary, we’re better characterized as a laggard, especially when compared to some leading Asian countries. But even leaving aside the wireless stars such as Japan and South Korea…Canada ranked 29 out of 30 OECD countries for the percentage of the penetration of current services. Canada is increasingly running behind the United States, its number one trading partner, says Tremblay, adding that wireless penetration now lags the US by some 15%, ARPU by 25% and the average usage in the United States almost doubles the Canadian figure. "We’re also running behind for the deployment of the new generation of networks, and generally follow in new services. A good example is wireless number portability," he says. The US and the UK also have wireless number portability, something Canada doesn’t expect until 2007. In its report, published in March, the TPRP notes that Canada, like some other countries, has been moving towards market-oriented spectrum management. But the report says our steps in this direction are "tentative." Right now Industry Canada handles all spectrum concerns, including policy and regulation. But the TPR panel recommended a shifting of spectrum management responsibilities to the CRTC, with spectrum policy to remain with the department. Tremblay explained that these changes would bring Canada more in line with other nations, where policy and regulation stand apart. "We think the new policy framework will rely substantially more on wireless forces and meet the following objectives: ensure that an adequate amount of spectrum is made available to meet demand for fixed and mobile across Canada; rely as much as possible on market-based approaches for spectrum management; recover…spectrum that is unused or under-utilized to accommodate new services." CWTA management, however, believes that Canada’s wireless sector is performing well and a shifting of spectrum management responsibility doesn’t make sense (RoW, April 6/06). In an interview with Report on Wireless shortly after the panel’s recommendations were released, CWTA CEO Peter Barnes said, "We’re more of the ‘if it ain’t broke, don’t fix it routine.’ There may be other governance reasons that the government has to consider, but from our perspective as customers of the spectrum management group we think they’re doing a good job." Tremblay said the TPRP’s suggestions might help the nation’s wireless sector attain a higher ranking in the global mobile market. "We believe it is not too late for Canada to regain some of the leadership it had in the past, and to develop others. We certainly hope this is possible for wireless, which is one of the most flourishing sectors around the world right now."

Former Microcell exec lambastes Canadian wireless industry

News | June 1, 2006

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