Open access in 700 MHz band would encourage consumer choice, Mobilicity says

Open access requirements in the 700 MHz band would help promote consumer choice when purchasing an unlocked handset, Stewart Lyons, chief operating officer at new wireless entrant Mobilicity, says. “If you could just go to a store, buy a handset and choose a carrier we would do that too,” Lyons said in an interview. “We are in the handset game out of necessity, not out of interest.” Industry Canada is seeking comments from stakeholders on whether it should adopt an “open access” policy for the 700 MHz spectrum band as part of its consultation on a policy and framework for the band. Open access rules would allow consumers to use a larger range of devices and applications on the band’s open access portion. Open access requirements would mean manufacturers can develop any device to be compatible with the frequency, as long as the carrier’s wireless network isn’t negatively impacted. Developers can also create applications of their choice for the devices provided they meet technical conditions related to the wireless network’s management. Open access requirements should not be confused with unlicensed spectrum such as “white space” that can support uses like WiFi. Lyons said Mobilicity would prefer that all handsets are universally compatible with any Canadian wireless carrier. He said open access rules could help create a situation where carriers no longer have a monopoly on certain popular devices, such as Apple Inc.’s iPhone 4, which is currently carried by Rogers Communications Inc., Telus Corp. and Bell Canada. The three wireless incumbents declined to comment on the consultation on an open access policy. The companies said they are in the process of developing their positions for the consultation, which closes Feb. 28, 2011. Lyons said he expects the incumbents to side against open access requirements. “I think the incumbents’ attitude is to own the user experience and own the handset experience,” he said. “They still believe in the ‘walled garden’ approach, which I would say is a bit of an outdated concept.” But Robert Hersche, director of regulatory affairs at SaskTel, said in an interview that the incumbents are moving to open access on their networks. Hersche pointed out that Telus now has plans to offer unlocked phones and give its customers the option to purchase contract-free devices. On Dec. 14, Rogers also began offering customers the option of unlocking their Rogers phones for a $50 fee. Hersche added that SaskTel supports open access for the 700 MHz band. In its consultation paper, Industry Canada asked stakeholders which of three options they would support: open access requirements on all future commercial mobile bands; open access on the entire 700 MHz band, constituting a total of 84 MHz; or open access on a 22 MHz section in the band’s C block. “Adopting an open access policy similar to that used in the United States would enable service providers and users in Canada to take advantage of economies of scale due to the larger U.S. market,” Industry Canada wrote in its consultation paper. “Moreover, such policies could enable Canadians to participate more actively in the new digital economy as consumers, innovators and content creators.” But the department noted in its paper that advances in technology may preclude the need for regulatory intervention. It noted consumers can now buy a phone from third-party retailers and approach a carrier for a service plan, and many new devices have open operating systems for applications. Steven Anderson, national coordinator with OpenMedia.ca, said in an interview open access requirements would encourage innovation. “Open access stimulates innovation and it encourages competition and choice in the marketplace,” he said. “It lets manufacturers and more players make devices and utilize that spectrum.” In 2007, the United States’ Federal Communications Commission (FCC) issued open access requirements when it released its policy for the U.S. 700 MHz band auction, which took place in 2008. The FCC set aside 80 MHz of the band for commercial use and reserved another 22 MHz in the band’s C Block for open access. Google Inc. was a strong supporter of the open access conditions in the U.S. It argued the open access requirements lead to innovation from smaller players who could not otherwise create new devices or services for the network. But wireless carrier Verizon Communications Inc. disagreed, arguing the rules could impede innovation. “Imposing any such requirements in the competitive wireless market would reduce the revenue the government will receive from the spectrum auction and limit the introduction of new and innovative wireless services,” the company said in a release shortly following the release of the FCC policy. Verizon later acquired a chunk of open access spectrum for $4.74 billion US, defeating Google’s $4.71 billion US offer. news@thewirereport.ca

Open access in 700 MHz band would encourage consumer choice, Mobilicity says

News | December 17, 2010

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