WIND Mobile CEO: Canadian Mobile Users to Face Higher Prices and Less Choice as a Result of Government Announcement
Decision to cap spectrum auction puts incumbent interests over consumer
interests
TORONTO, March 15, 2012 /PRNewswire/ - Despite the government's claim that
yesterday's announcement will 'provide Canadian families with more
choices at low prices', the reality is that consumers will face higher
prices, fewer choices and a return to the era of incumbent dominated
wireless, Globalive Wireless Management Corp. stated, following a
decision by the Harper government to hold a spectrum auction with caps.
"The announcement creates the illusion that the government has gone
all-in to create a competitive wireless landscape, when they've only
done half the job," said Anthony Lacavera, CEO of WIND Mobile.
"Delivering on foreign ownership is only half of the equation. We've
spent countless months telling the government that caps will destroy
our ability to compete with the incumbents in the next auction, thereby
crippling wireless competition in Canada."
The government is prepared to take credit for creating a level playing
field in the upcoming auction, when all they've really done is stack
the deck in favour of the incumbents. To build out an LTE network, 10
MHz of spectrum is necessary. This decision only allows new entrants
access to half that amount and will prevent any carriers, other than
the incumbents, from building faster networks and keeping up with the
increased consumer demand for the best available smartphone technology.
"The government invested in a solid foundation but now they're asking us
to build a house without the tools," added Lacavera. "It's a simple
formula, without the ability to acquire 10 MHz, NO new entrant can
build out LTE, which means NO new entrant can viably compete in the
long term. This is a smoke and mirrors announcement designed to
distract from the fact that they've sided with the incumbents at the
expense of Canadians."
Without access to the 700 MHz spectrum set aside at the next auction, no
new entrant would be able to acquire enough spectrum to launch LTE and
effectively compete with the incumbents.
About WIND Mobile and Globalive Holdings
WIND Mobile provides voice, text and data services to Canadians on a
next-generation wireless network and is committed to offering a level
of wireless service presently not available in Canada. WIND is built on
actual conversations that are happening with Canadians who are
passionate about wireless and creating a better mobile offering
nationally. For more information about WIND Mobile, please visit http://www.WINDmobile.ca.
Globalive Holdings is a leading provider of telecommunications solutions
in Canada and internationally to the consumer, business and hospitality
markets. The Globalive companies include: WIND Mobile, Yak
Communications, One Connect, Canopco and Globalive Carrier Services.
For more information, visit http://www.globalive.com.