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CANADA'S WIRELESS WONDERLAND |
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Portable Numbers as Pistons of
Progress |
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October 2003- IGB Grant +1 514 849 3508
& Brian Sharwood +1
416 413 9381
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KEY HIGHLIGHTS: |
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- SeaBoard contends that local number portability between wireless carriers
is a distraction – the only number portability that really matters,
the only portability that gives consumers real choice and will drive
the telecom industry forward, is portability between wireless and wireline.
The U.S. market fascination with ‘number portability’ is
really a nonissue in Canada. Canada’s regulators have already acted to make ‘ portable
numbers’ a feature of the Canadian telecom landscape.
- Portable numbers in action: companies like
Sprint Canada and Microcell are what are as known as Competitive Local
Exchange Carriers (CLECs)– they have gone through a formal process
set up by Canada’s telecom regulator, the CRTC, to enable local
number portability. Sprint is already active in the market, offering
Canadians choice in local communications services – choice that
is not hampered by ‘giving-up’ your local telephone number.
That number makes the journey from old provider to Sprint Canada if
you do.
- What’s new: Microcell, a Canadian
wireless provider, has just introduced CityFido™ in the Vancouver,
and lower B.C. mainland market. CityFido offers wireline-like quantity
of service (unlimited number of minutes) and a free regional calling
area for only about a 50% premium
over wireline services. It also represents a savings, at least for heavy
cell users, from other mobile carrier services.
- What’s important: the Microcell offer
is focussed on migrating wireline users to wireless. Number portability
is a key feature. SeaBoard thinks this is an important innovation.
An innovation that Canada’s telecom regulators have been waiting
for, for five long years.
- What’s next: We caution the other
wireless carriers not to react too quickly. This is not (really) a
focussed provocation to you and your present plans: Microcell is, we
think, after bigger fish. Other wireless companies need to keep their
eyes on the bigger picture; the wireline base (retaining or eroding,
as the case may be) is the true prize. Rogers should watch the CityFido
action closely – don’t be afraid to emulate, but avoid
the missteps that may haunt the first mover. Rogers has little to lose
in the short term and much to gain as the local competition wireless
alternative develops.
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