Verizon eyeing wireless business in Canada: Report

[maximus1987/lou99]

 

 

 

 

First, in terms of foreign direct investment, Wind Mobile is a result of an Egyptian foreign direct investment, which took quite a while to secure. 2nd, I didn't say they would start another CDMA network there, they would use the AWS holdings that Wind has and upgrade it to LTE and when most of their US customers are on VoLTE, then they can gouge their US customers for roaming and pay it back to themselves.

 

 

 

 

 

 

 

Sent from Josh's iPhone 5 using Tapatalk 2

 

 

 

 

You didn't read the article:

 

http://www.cbc.ca/news/business/story/2011/11/17/f-naguib-sawiris.html

 

 

 

"Globalive, headed by Canadian entrepreneur Anthony Lacavera, has a complex ownership structure under which the Canadian equity owners control the company, but Orascom put up more than 80 per cent of the funding.

 

That raised the ire of telecom incumbents Rogers Communications Inc., BCE Inc. and Telus Corp. which complained to the CRTC that the company doesn't adhere to Canada's stringent foreign ownership rules.

 

After a lengthy process, Canadian officials eventually ruled that Wind was within the rules and was allowed to launch a cellular service in late 2009."

 

 

 

By the skin of their teeth it was ruled ok; that's not how it should be.

 

We have Tmobile and now Softbank. WTF are the Canadians worried about?

 

It's one thing to have issues with Huawei and ZTE's routers but when it's Verizon?

 

 

 

VoLTE: I'm sure you've read the mods' many posts regarding VoLTE in its current state. Simply, it's not as robust in terms of coverage at 700 MHz, let alone at AWS, compared to even W-CDMA voice.

 

As the mods said, maybe LTE R12 will fix that but that'll be a while. And this is even more relevant for Verizon who has very far spacing on their LTE towers. Don't think that VZW will make their towers denser in Canada when their low population density will already require a huge investment.

 

 

 

And marketing-wise, how can Verizon justify charging their US customers roaming on the Verizon-Canada network? They can't.

 

 

 

That article was wrote 2 years ago. Here's the kicker: an article wrote earlier this year said that Canada's telecom authority has relaxed their rules more than when they let Wind Mobile start up. If I remember to this evening, I will try to find it. They want a major 4th player, but frankly, Verizon shouldn't be it.

 

 

 

 

 

Sent from Josh's iPhone 5 using Tapatalk 2

Found it but it's not much better. It's still not what we have here in US-A. Foreign carriers c. Buy a carrier if it has less than 10% of Canadian telecom revenues.

 

"The recent amendments to the Telecommunications Act2 provide an exemption to the normal rules for carriers and their affiliates having total annual telecommunications revenues that represent less than 10% of total Canadian telecom industry revenues. Based upon the most recent CRTC reports, carriers could have up to C$4.17 billion in annual revenue and still be exempt from the foreign ownership restrictions. As a result, the exemption will apply to all current Canadian carriers other than Bell Canada, TELUS Corporation and Rogers Communications Inc.

 

A carrier established under the exemption can expand its operations to exceed the 10% ownership threshold, provided that growth beyond the threshold is not a result of acquiring control of another carrier or acquiring assets of another Canadian carrier, in which case the normal ownership restrictions would apply (effectively, a 46.7% limit and no "control in fact")."

 

http://www.mondaq.com/canada/x/187372/Telecommunications+Mobile+Cable+Communications/Foreign+Ownership+Restrictions+Relaxed+For+Telecom+Carriers+In+Canada

 

Does anyone know why the Canadians are so antsy about foreign investment?

 

Lobbyists and campaign donations?

 

 

[MacinJosh]

Found it but it's not much better. It's still not what we have here in US-A. Foreign carriers c. Buy a carrier if it has less than 10% of Canadian telecom revenues.

 

"The recent amendments to the Telecommunications Act2 provide an exemption to the normal rules for carriers and their affiliates having total annual telecommunications revenues that represent less than 10% of total Canadian telecom industry revenues. Based upon the most recent CRTC reports, carriers could have up to C$4.17 billion in annual revenue and still be exempt from the foreign ownership restrictions. As a result, the exemption will apply to all current Canadian carriers other than Bell Canada, TELUS Corporation and Rogers Communications Inc.

 

A carrier established under the exemption can expand its operations to exceed the 10% ownership threshold, provided that growth beyond the threshold is not a result of acquiring control of another carrier or acquiring assets of another Canadian carrier, in which case the normal ownership restrictions would apply (effectively, a 46.7% limit and no "control in fact")."

 

http://www.mondaq.com/canada/x/187372/Telecommunications+Mobile+Cable+Communications/Foreign+Ownership+Restrictions+Relaxed+For+Telecom+Carriers+In+Canada

 

Does anyone know why the Canadians are so antsy about foreign investment?

 

Lobbyists and campaign donations?

 

 

Frankly, they care more about their own citizens and companies that they encourage entrepreneurship to stimulate their economy. Foreign companies coming in takes away from such a thing. But I still hold to the fact that Verizon is bad for the Canadian Telecommunications industry. Instead of 3 strong carriers, you'd have 4 strong carriers and they will all price gouge just like the big 3 do now.

 

 

Sent from Josh's iPhone 5 using Tapatalk 2

[maximus1987/lou99]

Frankly, they care more about their own citizens and companies that they encourage entrepreneurship to stimulate their economy. 

 

Sent from Josh's iPhone 5 using Tapatalk 2

 

Exactly the opposite. How does insulating your economy from global competition mean you care about your citizens? They have the highest cell prices BECAUSE there is no competition. As a result of highest prices, Canada has the lowest cell ownership per capita.

 

"However when we look at how many cell phones there are per person in Canada, and compare that to other technologically advanced nations, Canada is far behind. In 2009 Canada had only 70.9 cell phones per 100 people, while the much smaller U.K. had 129.9, and even the U.S. with its large size managed to reach 89.2. Canada also fares poorly in comparison to other nations that have a widely dispersed population like Finland (144.2) and Norway (111).^8"

 

http://openmedia.ca/blog/why-your-high-cell-phone-bills-have-nothing-do-size-canada

 

 

 

Foreign companies coming in takes away from such a thing. 

 

Sent from Josh's iPhone 5 using Tapatalk 2

 

Have you heard of a foreign company called Softbank? Softbank could never do in Canada what it will do here BECAUSE we have less government coddling than in Canada. 

 

 

 

But I still hold to the fact that Verizon is bad for the Canadian Telecommunications industry. Instead of 3 strong carriers, you'd have 4 strong carriers and they will all price gouge just like the big 3 do now.

 

 

Sent from Josh's iPhone 5 using Tapatalk 2

 

How is Verizon bad? Even if Verizon, as you say, maintains the same pricing as the Canadian Triplets, then by definition, things at worst won't change.

But then why would people switch to Verizon-Canada and how would they recover their costs?

 

I can see one scenario that would be bad for Canadians: Verizon undercuts the Triplets and upon acquiring a commanding market position, it raises prices.

But this assumes the Triplets don't do anything to react. Though maybe Verizon may be content to lose money for a longer time so it kills the Triplets? What's the payoff? Canada is so small that it's not worth it. If the were to happen, the Canadian gov would step in somehow so . . . no. Verizon wouldn't risk a xenophobic backlash for such a small payoff.

 

Read some Fiercewireless articles about what happened in France - France of all places - when Free Iliad came on the scene as the fourth national competitor; France Telecom was not a happy camper. Before Free Iliad, France had the highest rates in Europe. (Can't find the article right now)

 

 

No. Verizon will definitely not be bad for Canadians. Having 4 equal-ish sized cell Cos, each with national coverage and sub 1-GHz spectrum? Count me in!

 

Can't wait till TMO gets that 5x5 @600 MHz, if it survives 3 years without upgrading all towers to at least 3G or an expansion of its footprint.

 

Ray said that the company is not currently looking to expand its network footprint and is eagerly awaiting next year's scheduled incentive auctions of 600 MHz broadcast TV spectrum. He said using such spectrum is "a far more effective way to go and build those opportunities out" and that getting access to such low-band spectrum would mean "we would finally have a level playing field in the U.S. marketplace" between smaller carriers and AT&T and Verizon Wireless (NYSE:VZ), which dominated the 700 MHz auction in 2008.

 

Read more: T-Mobile to expand MetroPCS footprint by 100M POPs - FierceWireless http://www.fiercewireless.com/story/t-mobile-expand-metropcs-footprint-100m-pops/2013-05-15#ixzz2Xux6tmhm 

Subscribe at FierceWireless

 

[mozamcrew]

Bingo!  You saved me a lengthy explanation.  Thanks, Rawvega.

 

To add to that, neither Bell nor Telus has deployed any GSM, only W-CDMA.

 

AJ

 

 

Yes, but if they're buying Wind, they're getting a pure WCDMA network that needs to be upgraded to LTE and will probably need 700Mhz in the upcoming auction to be competitive with the big three. 

 

 

The issue that I was responding to was not about Wind; it was about Bell and Telus.  Too many people think that Bell and Telus have switched to W-CDMA.  No, they rolled out some W-CDMA overlay for three reasons:

1. They had spectrum to burn.
2. They wanted the iPhone.
3. They wanted roaming revenue from the Vancouver Winter Olympics.

Other than excess spectrum, which is a constant "problem" for Bell, Telus, and Rogers, the other two reasons are now ancient history.  Furthermore, their CDMA2000 networks are still in place -- in fact, I roamed on Telus two months ago -- and they still offer greater coverage area than the W-CDMA overlays.

 

AJ

 

For some reason I had it in my head that they were replacing their CDMA networks with W-CDMA. Given that this isn't the case, at least in the near term, then it DOESN'T make sense for VZW to build/buy CDMA assets in Canada. In that case, the acquisition of Wind and their AWS spectrum (which VZW is starting to roll out LTE on in the US) and possibly bidding on 700Mhz in Canada, makes more sense. They will be moving to an all LTE network, and one using the same spectrum frequencies as their US LTE. Given the economies of scale, they probably see this as a good time to enter that market.

[bigsnake49]

For some reason I had it in my head that they were replacing their CDMA networks with W-CDMA. Given that this isn't the case, at least in the near term, then it DOESN'T make sense for VZW to build/buy CDMA assets in Canada. In that case, the acquisition of Wind and their AWS spectrum (which VZW is starting to roll out LTE on in the US) and possibly bidding on 700Mhz in Canada, makes more sense. They will be moving to an all LTE network, and one using the same spectrum frequencies as their US LTE. Given the economies of scale, they probably see this as a good time to enter that market.

 

Now of course, does Candada follow the US 700MHz band plan? I hope not! That one so freaking messy.

[mozamcrew]

Now of course, does Candada follow the US 700MHz band plan? I hope not! That one so freaking messy.

Not necessarily, but they might be able to use the same antennas/equipment. Which means even more leverage when negotiating prices with vendors. The bigger your customer is, the more leverage they have on you.

[bigsnake49]

Not necessarily, but they might be able to use the same antennas/equipment. Which means even more leverage when negotiating prices with vendors. The bigger your customer is, the more leverage they have on you.

Yes but the order for Canada is going to be pretty small. Unless they are going to replace part of their LTE network or use AWS as more than hotspot duty.

[mozamcrew]

Yes but the order for Canada is going to be pretty small. Unless they are going to replace part of their LTE network or use AWS as more than hotspot duty.

They are currently preparing for AWS LTE rollout in the US. I'm suggesting that they will be able to add additional equipment to that order to include their Canadian sites. Canada by itself isn't large, but lets say it adds 10-15% to their existing order. That may get them better pricing per unit on all the gear, not SO much for Verizon since their order is already large, but it will drive down the cost for Wind/VZW Canada.  Also, assuming they will have a shot at 700Mhz spectrum in Canada, maybe that means US Verizon customers will be able to roam in Canada on both AWS and 700Mhz since they will have LTE on similar frequencies???

[WiWavelength]

They are currently preparing for AWS LTE rollout in the US. I'm suggesting that they will be able to add additional equipment to that order to include their Canadian sites. Canada by itself isn't large, but lets say it adds 10-15% to their existing order. That may get them better pricing per unit on all the gear, not SO much for Verizon since their order is already large, but it will drive down the cost for Wind/VZW Canada.

 

Unless I am mistaken, Wind has only 10-20 MHz of AWS spectrum per market.  That is tied up in W-CDMA and is not getting converted to LTE anytime soon.

 

AJ

[maximus1987/lou99]

Now of course, does Candada follow the US 700MHz band plan? I hope not! That one so freaking messy.

 

Yes they did

 

60. Taking into consideration the constraints related to potential cross-border interference, the necessity to support public safety systems and equipment ecosystem availability, Industry Canada has concluded that Option 1 (harmonization with the U.S. band plan) should be adopted.

 

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10122.html

 

If they hadn't, Verizon wouldn't have any LTE roaming advantage.

[maximus1987/lou99]

Is this a good place to start a 700 MHz bandplan discussion? If not, mods can move it.

 

AJ, why was the 700 MHz plan chosen the way it was here in USA? Is it because of no public safety band?

 

59. Option 3, the APT band plan adopted by administrations in Asia, does not include provisions for public safety services in the 700 MHzband. The adoption of this band plan would thus require the displacement of Canadian public safety operations from current frequencies. Moreover, significant issues related to cross-border interoperability, interference, frequency coordination and equipment availability would arise and affect both public safety and future commercial mobile systems.

 

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10122.html

 

That's what Canada's FCC said.

 

Or is it politics?

 

Looks like no one else is gonna use that plan

 

But while the US model is unlikely to be adopted by any other region, it does look as though other regions might be pursuing somewhat separatist strategies. Many Asia-Pacific countries have already committed to the Asia Pacific Telecommunity (APT) plan, which takes 703–748MHz and pairs it with 758–803MHz. Australia, New Zealand, India, Japan, Korea, Papua New Guinea have now either formally adopted or signalled their intent to use the APT700MHz spectrum band for LTE services. Indonesia and Malaysia are yet to commit, though, while China—ever keen to plough its own furrow—has indicated that it aims to introduce TDD technology in the 700MHz band.

 

http://www.telecoms.com/154582/done-roaming/

[bigsnake49]

They are currently preparing for AWS LTE rollout in the US. I'm suggesting that they will be able to add additional equipment to that order to include their Canadian sites. Canada by itself isn't large, but lets say it adds 10-15% to their existing order. That may get them better pricing per unit on all the gear, not SO much for Verizon since their order is already large, but it will drive down the cost for Wind/VZW Canada.  Also, assuming they will have a shot at 700Mhz spectrum in Canada, maybe that means US Verizon customers will be able to roam in Canada on both AWS and 700Mhz since they will have LTE on similar frequencies???

 

Well they better get the same Upper C Block in Canada that they did in the US. Otherwise roaming is not guaranteed since there is no interoperability between the different bands in 700MHz

[maximus1987/lou99]

Well they better get the same Upper C Block in Canada that they did in the US. Otherwise roaming is not guaranteed since there is no interoperability between the different bands in 700MHz

Duh.

[maximus1987/lou99]

Even Mexico is using the APT plan!

 

http://www.policytracker.com/headlines/mexico-adopts-apt-plan

[bigsnake49]

Duh.

Not guaranteed! There are other players that might bid for that.

[maximus1987/lou99]

Not guaranteed! There are other players that might bid for that.

 

What's the market cap of the other players vs Verizon?

 

Comparison of the Triplets:

http://finance.yahoo.com/q/co?s=RCI+Competitors

 

 

Verizon could buy ALL the spectrum in the auction.

 

Verizon could buy Rogers, Telus, and Bell if it really wanted to.

 

http://finance.yahoo.com/q?s=VZ

[bigsnake49]

What's the market cap of the other players vs Verizon?

 

Verizon could buy ALL the spectrum in the auction.

 

Verizon could buy Rogers, Telus, and Bell if it really wanted to.

We will see what the rules of the auction are going to be.

[maximus1987/lou99]

We will see what the rules of the auction are going to be.

 

Why would there be any rules to deny Verizon to bid on Band 13?

Especially when it doesn't have any 700 MHz in Canada so . . . 

 

Here are the rules:

 

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10572.html

 

6.2 Spectrum Aggregation Limits

243. Competitive measures with regard to the 700 MHz band were announced in SMSE‑002‑12. Industry Canada sought comments on the proposed wording of the condition of licence related to the spectrum aggregation limits as follows:

The licensee must comply with the spectrum aggregation limits as follows:

• A limit of two paired frequency blocks in the 700 MHz band (blocks A, B, C, C1 and C2) is applicable to all licensees.
• A spectrum cap of one paired spectrum block within blocks B, C, C1 and C2 is applicable to all large wireless service providers. Large wireless service providers are defined as companies with 10% or more of the national wireless subscriber market share, or 20% or more of the wireless subscriber market share in the province of the relevant licence area.

The spectrum caps put in place for the 700 MHz auction will continue to be in place for five years following licence issuance. Therefore, no transfer of licences or issuance of new licences will be authorized that allows a licensee to exceed the spectrum caps during this period. Any change in ownership or control granting a right or interest to another licensee in this band may be considered as licence transfer for the purpose of this condition of licence whether or not the licensee name is changed as a result. The licensee must request approval by the Minister of Industry for any change that would have a material effect on its compliance with these spectrum aggregation limits. Such a request must be made in advance for any proposed transactions within its knowledge.

[maximus1987/lou99]

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10572.html

 

I've tried pasting the spectrum table allocation but it removes the formatting; the table is in the link above.

 

Search for "Table 1 — Block size for spectrum in the 700 MHz band"

 

The band plan is exactly the same except Band 13 spectrum is split into 2 5x5, probably so that two carriers can buy that band.

 

What's nice for Verizon is that it will be able to purchase both those 5x5 blocks in Band 13.

 

• A spectrum cap of one paired spectrum block within blocks B, C, C1 and C2 is applicable to all large wireless service providers. Large wireless service providers are defined as companies with 10% or more of the national wireless subscriber market share, or 20% or more of the wireless subscriber market share in the province of the relevant licence area.

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10581.html#p6.2

[maximus1987/lou99]

Plus, from everything I've read, Bell and Telus have no plans to discontinue their CDMA networks because of the roaming revenue they bring in from US CDMA roaming customers. All they see is '$$$$$'.

 

Sent from Josh's iPhone 5 using Tapatalk 2

 

If they have to compete with Verizon on speed then they might need to repurpose the CDMA spectrum for LTE and increase the W-CDMA coverage (if they feel like it).

[maximus1987/lou99]

Now what'd make the Triplets REALLY freak out is if ATT were to jump in and buy all 10x10 of Band 17 AND the unpaired (Band 29) D,E blocks, for 10MHz of supplemental downlink, leaving only one 5x5 of Band 12 spectrum for the triplets.

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10572.html

Table 1

 

If that happens, expect some CDMA refarming to occur pronto.