Comment – Industry Canada rules “resale is not roaming”

Industry Canada's declaration this week that resale is not roaming won't deter new entrants from trying to become virtual national players soon after acquiring wireless bandwidth in the upcoming spectrum auction. This was one of the major points of contention between the big incumbent wireless operators Bell Mobility, Rogers Wireless and Telus Mobility and potential new entrants during a consultation to set rules for the next spectrum auction. The Big Three contend that mandated roaming isn't necessary and that arrangements can be made on a commercial basis. New entrant proponents say they need mandated roaming because it isn't in the ILECs' interest to allow for more competition through roaming agreements. Ultimately, Industry Canada decided that ILECs are required to provide mandated roaming. But the definition of what constitutes roaming was raised during a clarification process with some suggesting roaming be extended much farther than it has been in the past. The department has tried to clarified the rules. "Mandated roaming as prescribed in the policy does not include resale", states the clarification document released this week. This means that new entrants will have to build a network before roaming, presumably one of the three national carriers, can become available. Roaming inherently dictates the existence of two networks. "Roaming enables a subscriber already served by one carrier's network (home network) to originate or terminate traffic on another carrier's network (host network) when out of range of the home network. Accordingly, a subscriber cannot roam unless he or she is already served on another radio access network. A new entrant must therefore be offering service on its own network before its subscribers may benefit from roaming on another network," reads the document. But this statement doesn't indicate that the new entrant has to build a network covering its entire operating territory - national or regional - or even a network covering half of its newly acquired licences before roaming between networks can begin. Nowhere in the rules does it specify the percentage of population to be covered or the geographic size of the new entrant's network before roaming on another provider can start. In essence, a new entrant could erect two cell phone towers and then because of the mandated roaming requirement offer services nationally. Now if this were to take place, the Big Three would presumably object and even might refuse to negotiate with the new entrant. This new operator could turn to binding arbitration, which is likely part of the new policy on roaming and tower sharing, to resolve disputes. But the complaint may not get a good reception from government. Industry Canada's policy is about promoting facilities-based competition. Putting up two cell phone towers and expecting to become a virtual national player through mandated roaming is not competition at the network level. Industry Canada was unavailable to respond to questions on this matter at press time. Report on Wireless will provide further information from the department on mandated roaming provisions when available.

Comment – Industry Canada rules “resale is not roaming”

News | February 29, 2008

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