Apparently taking a page out of this month's advertising debate
between AT&T and Verizon, Canadian carrier Telus has sued Rogers Communications for ads claiming that the Rogers wireless network is "the fastest and most reliable in the country." Telus and Bell Canada have of course just launched their new, $1 billion HSPA network, which offers speeds up to 21 Mbps to Canadian customers. As such, Telus demanded earlier this month that Rogers stop making advertising claims that they held the 3G speed edge --
a request Rogers ignored, since they too offer 21 Mbps HSPA+ service. "Telus has not submitted any data on their network performance and we look forward to vigorously defending our position in court," says Rogers.
Last year Canadian incumbent Bell Canada
throttled the bandwidth of wholesale competitors, so they couldn't offer unthrottled services that were better than Bell's own, throttled DSL service. The company then started pushing for usage-based billing (UBB) for wholesalers, meaning competitors would now be paying for bandwidth on both ends (smaller Canadian ISPs lament this as
double dipping and a tactic designed to drive them out of business). Bell Canada has justified the moves by saying they're financially necessary in order to fund network expansion. However, BCE's earnings this week indicate the company's
profit more than doubled. Why was usage-based billing necessary again? Surely someday, somebody is going to notice that the North American ISPs who claim expensive new metering models are financially necessary
are never able to prove it.
Calling it "the most significant technology announcement for the company in 25 years," Bell Canada CEO George Cope says the company will launch its HSPA wireless broadband network
on Wednesday. The $1 billion network was built in conjunction with Telus, who says they'll launch their implementation of the network on Thursday. The new HSPA service will reach about 93% of the Canadian population, and offer speeds up to 21 Mbps (if anyone has pricing,
drop us a line). Speaking of this week's decision by the CRTC to block access of a new carrier for
not being Canadian enough, Cope proclaimed that "no one would be mistaken that there is not new competition coming to the Canadian wireless industry" (sic).
The CRTC earlier this year couldn't be bothered to come to the defense of independent ISPs facing extinction due to Bell Canada's
sudden throttling efforts, but the regulatory agency amazingly came alive this week to stop the entry of a new wireless phone competitor in Canada. A
CRTC ruling has banned Globalive, a new entrant into the Canadian market, from doing business in Canada. Why? because it's 61% owned by
Orascom, a telecom company that does ample business in the Middle East, Africa, Europe and South Asia.
Canadian regulation, lobbied for by incumbent companies, prohibits any telecom networks that aren't majority-Canadian owned. The entry of WIND would be the first major threat to Bell Canada, Telus and Rogers in more than a decade, so the companies lobbied the CRTC extensively to investigate and ban Wind's market entry. Wind Mobile has
issued a press release saying that the ruling's odd, given another Canadian agency had already given them the green light, they were
already allowed to purchase spectrum, and they were well into the process of employing 500 people and setting up operations:
In its decision, the CRTC came to a different conclusion than Industry Canada and has indicated that Globalive Wireless is not in compliance with the Canadian ownership and control requirements set out in the Telecommunications Act..."We will be evaluating our options on how to proceed," says Ken Campbell, CEO of WIND Mobile.
Canadian Law Professor Michael Geist blames the entire affair on
outdated pseudo-patriotic regulation, being a bit too kind to the CRTC (stocked with phone industry executives) and Canada's incumbent phone giants (who lobbied for the original restrictions and initiated the investigation in the first place). Mike Masnick at
Techdirt gets to the point, noting how such pseudo-patriotic moves are usually just another form of protectionism that ultimately winds up crippling competition and harming consumers, be it in the U.S., Canada, or Tajikistan.
While the United States FCC prepares to begin construction of new network neutrality rules tomorrow, users in Canada saw Canadian regulatory authority the CRTC issue some new network neutrality rules today. While the new rules don't prohibit Canadian ISPs from imposing the network management of their choice, they do force carriers to be wholly transparent with consumers, while giving retail customers thirty days and consumers at least 60 days before imposing any new traffic management.
The CRTC's involvement was of course triggered when Bell Canada decided to start throttling wholesale customers without telling them in the
Spring of 2008. Independent Canadian ISPs complained the throttling was to prevent them from offering an unthrottled residential broadband alternative to Bell Canada's throttled DSL services.