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Nov. 3, 2009

Bell Canada said today it will launch its newly advanced wireless network tomorrow, leveling the playing field on network capabilities between Bell, Telus and Rogers-- Canada's three largest telcos.

Bell Canada's new launch will come a day before Telus launches its new network, making each of the two major cell phone carriers able to carry Apple's sought-after iPhone.

The only Canadian wireless carrier that has been able to offer Apple's touchscreen smartphone until now has been their rival Rogers, a cable, wireless and Internet company.

Bell CEO George Cope said "wireless is still without a doubt the fastest growing area of the telecom industry and will probably remain that way for the next 10 years.

Cope called the launch of Bell's new network the most significant technology announcement for the company in the last 25 years.

Both Bell and Telus will join Rogers in having HSPA networks, allowing faster Internet downloads of music, video and various software applications.

Cope also added that Bell supports a recent CRTC decision that ruled new cell phone company Globalive didn't meet Canadian ownership and control requirements.

With Toronto-based Globalive sidelined, analysts say there will still be price cutting, but maybe not as much as consumers would like. Analyst Carmi Levy said Rogers, Bell and Telus will be able to hold the line on pricing for as long as they can.

"It's just absolutely clear that we all have to live under the same rules," he said. Cope noted there are other new cell phone players as well to contend with, such as Quebecor's Videotron and competitors Dave Wireless and Public Mobile, all expected to be up and running by February 2010.

"No one would be mistaken that there's not new competition coming to the Canadian wireless industry," Cope said. "Prices will come down over time but probably not as fast as Canadians would like because of that," Levy said, referring to the CRTC decision on Globalive.

"You still only have three major national players," said senior vice-president of strategic consulting for Toronto's AR Communications Inc.

"The competitive landscape isn't any different today than it was last year." Analyst Duncan Stewart said prices usually come down in the 12 months before new players get into the cell phone market and in the year they are up and running.

Prices will likely come down about 10 per cent in that two-year period, said Stewart, director of research and analysis at DSAM consulting in Toronto.

"They've already come down a bit but not as fast as most consumers would like," he said.

After that, there will hopefully be some price stability and then one of the new players will usually reduce prices.

Other competitors could follow suit and eventually someone gets acquired or simply goes out of business, Stewart said.

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Source: Bell Canada.