Competition for the Canadian Cell phone... finally

Next year Canada will hold an auction for 105 MHz of the wireless spectrum, and 40 MHz of it will be reserved for "new entrants", opening the floodgates of competition.

All I can say is... it's about time.

In addition to this, regulators will force existing networks to share their towers, allow roaming at commercial rates, and other consumer-friendly bonuses.

This blogger has ranted against the Canadian cell-phone establishment on a few occasions. What is interesting to see, is how this auction compares to the upcoming US spectrum bid.

In the US auction, Google is offering to bid on the spectrum simply because they want to open it up to competition (because the more people that use data on cell phones, the more mobile search services it can offer). As a condition to bid, Google tried to push the US government to adopt a number of consumer-friendly regulations for the auction.

The government decided to adopt... "a few" of the measures.

Meanwhile in Canada, the regulators a diving in head first, pushing rules that are way beyond even what Google was trying to push the US to do.

Of course, the environment in Canada is different in the US. While competition in the US among Telecoms is scarce, competition in Canada is non-existent.

With only 3 oligopolistic bedfellows (Rogers, Bell, Telus), consumers are paying the price. The regulators had to do something.

And indeed they have done something. Let the war for consumer loyalty based on service value instead of penalties begin!