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What Lessons can Canada Learn from the AT&T / T-Mobile Deal?
AT&T and T-Mobile Enter into a Merger Agreement
Recently AT&T entered into an agreement to buy out T-Mobile for $39 Billion US. It has caused a stir south of the border in part because T-Mobile and AT&T are the only GSM providers with national coverage in the USA. As such the loss of T-Mobile establishes an effective monopoly for AT&T in the GSM market.
Both T-Mobile and AT&T have extensive infrastructure and penetration into most American mobile markets although AT&T is three times as large as T-Mobile. Notwithstanding the size difference the loss of T-Mobile means a net reduction in the number of available choices in the market of one in most places. This brings down the number of available carriers as low as 4 in some markets, although most areas will still retain 5 or more available cellular carriers; just not using GSM technology.
Review of Wind Mobile’s Cell Phone Plans
Wind Mobile’s Cell Phone Plans
Updated November 8th, 2011
After much brouhaha regarding Wind’s license and ability to operate they have finally launched and are available in Toronto as of Dec 16, 2009. Wind after 2 years currently operates in Toronto, Calgary, Ottawa, Edmonton, Vancouver and recently Kitchener Waterloo.
So now that they are in market I’ve had a chance to review their plans. So what do I think? Not many surprises but it’s a good start. We knew that Globalive would be entering the market with unlimited type plans around the $35-45 price point and they did. Read the rest of this entry »
Is Wind Mobile Failing?
What’s happening with Wind Mobile?
Recently I was invited on SunTV’s Canoe Live to speak about Wind Mobile’s issues in the market place. The general consensus based on media reports was that Wind’s foray into the Canadian cell phone market has been laced with problems and that they launched before they were “ready”. Well I see things a bit differently.
Wind Mobile was doomed to failed expectations the minute they announced their entry into the marketplace. Everyone expected that after they launched that they would single-handedly be the ones responsible for dropping the cost of our cell phone bills to more “reasonable” levels. Well that has not happened…..yet!
Globalive’s Wireless Gets Green Light!
Globalive a National Player
In a rather unexpected decision Ottawa via Industry Ministry Tony Clement, rejected the CRTC ruling that Globalive Wireless was offside regarding its foreign ownership stake. Foreign ownership rules require telecommunication companies to have majority ownership that is Canadian and requires that its board reflects this representation.
Globalive had earlier adjusted its equity stake and board representation to reflect this fact. As a result of this they were given the green light by Industry Canada to go ahead but this was subsequently blocked by the CRTC. From the CRTC’s perspective, this notion of “Controlling Fact” meaning who truly controls the organisation is a subjective interpretation. Since Globalive’s partner Orascom Holdings had a significant equity and debt stake in the company, it can wield more control that the makeup of the company would suggest. While this may be so, the legal requirement in terms of ownership makeup was held up by Globalive. Not to mention that each of the incumbent wireless carriers have a significant debt and equity holding from foreign holders. The main difference however, is that for the incumbents there isn’t a single investment with a majority holding in equity and debt and this is the source of conflict. Does Orascom have enough say to control Globalive Wireless or Wind Mobile? You decide.
Regardless of these facts, Wind Mobile can now enter the market as early as next week. But look for them to be full fledged in Q1 2010 given the time lost it would almost impossible to get ready for the holiday season, but anything is possible. Nonetheless, this decision makes the most political sense. Canada wants a shakeup in the wireless industry and Globalive is the only true national player that can do this, they’ve already hired over 800 employees – many of whom have been using their spare time doing random acts of kindness and helping out in the community – they’ve already built most of the network (with the exception of Quebec) and they’ve already paid over 400 million for spectrum licenses. Quite a hefty investment if you ask me. So it’s only natural that Ottawa given the state of the economy and the precedence set by Industry Canada to overturn the CRTC ruling. Let’s face it who will want to have 800 employees back on the streets in this economy.
So Canadians you can now expect a few things. A shakeup of the wireless oligopoly, more competitive offers as Wind comes out with its unlimited bucket plans similar to MetroPC in the US. And a more aggressive incumbent response, largely from their flanker brands like Fido, Koodo, Solo and Virgin. But it will be an interesting ride.
What’s next for Globalive?
CRTC ruling contradicts Industry Canada’s acceptance of the ownership structure in March 2009 when it granted Globalive’s licence.
Most of the new entrants entering the market are regional based, Videotron is only going to operate in Quebec, Dave Wireless is targeting three provinces (AB,BC & ON), while Shaw will focus on Western and Central Canada. Global wireless is the only true national player (except QC) and is going to be the main competitor for the Big 3 wireless companies. However, they were denied their operating license because of federal foreign ownership restrictions. Read the rest of this entry »
Will the Canadian Wireless Spectrum save you money?
Will the recent Wireless Spectrum Auction Save Canadians Money?
The wireless spectrum has put pressure on Canada’s Wireless Big Three – Rogers, Telus and Bell. New national entrants such as DAVE and Globalive will be up and running by the end of this year, promising more competition to an industry that has been dominated by this oligopoly for many years. This added competition should drive down prices in wireless for all Canadians, or so we hope. Read the rest of this entry »
