Here's the script to my column as aired this morning on "The Business Network":
In May 2008, the federal government is going to hold an auction. But you and I won't be bidding on the goods. The auction is for what they call "wireless spectrum". That means the frequencies that can be used for things like mobile phones and devices like Blackberries and Treos. Valuable stuff.
The interesting wrinkle in this auction is that Industry Canada, the department in charge, has set aside almost half of the spectrum available for new entrants.
If you're carrying around a RazR or you're a crackberry addict, you likely already know that Canada's wireless market is made up of three big players - Rogers, Bell, and Telus.
But while phones and PDAs may seem ubiquitous, we Canadians are behind the curve. In fact, of the 30 countries in the OECD, we are 29th in mobile phone adoption. Countries like Finland or the UK, for example, are way ahead.
Why? Critics of the mobile marketplace suggest that wireless companies in Canada charge way too much for data use in particular, and that there's no competitive incentive to drop those prices.
Others point to the fact that the Apple iPhone, the mobile holy grail, is not even scheduled to be introduced in Canada yet. Even worse, under current plans, Canadians would pay about $300 per month for the data-hungry iPhone, compared to $50 in the US.
Canada wants to be a technology leader. We invented the blackberry. But we're laggards in its everyday use. And while revolutionary Google is getting into the wireless market in the US, our entrants are likely to be not nearly so exciting.
So as the auction approaches, brace yourself for a major PR battle.
The big three are going to deploy cute little animals to tell you their networks are the biggest, fastest, friendliest. The problem? At least two of those companies -- Bell and Rogers -- both have TERRIBLE reputations for customer service. They're companies that we love to hate.
But while sentiment may be against the big three, more cuddly branding from new companies isn't going to turn the tide. The new entrants are going to have to match their PR attacks against the establishment with the substance and service to make people want to desert the devil they know.
I'm hoping to expand the post later today with some more ideas about the future of wireless in Canada.
Ciao,
Bob.
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