Michael Geist on Rogers' iPhone Plans

I'm travelling this week, but want to blog this story. I have specific thoughts about the real threat that wireless pricing and Bill C-61 have for Canadian industry, but for now, Michael Geist has written a great piece on Rogers' plans...

Michael Geist - Canadians Face Triple Lock on Apple iPhone

Michael Geist on Canada's Wireless Crisis

Michael Geist's most excellent blog elucidates a point I made in a previous posting here; Namely, that the state of the wireless industry in Canada is a sad one, and that the lack of competition in the country is hurting our ability to innovate and compete on the world stage.

"In many ways, the iPhone saga merely confirmed what many Canadian consumers and businesses have known for some time. Mobile data pricing in Canada is among the highest in the world, creating a significant barrier to the introduction of new mobile services and causing many consumers to carefully ration their mobile use for fear of being hit with a hefty bill at the end of the month."

I was VERY surprised (and disappointed) to learn the following:

"The impact of uncompetitive pricing is felt beyond the consumer market. Last month, the World Economic Forum pointed to problems in the wireless market as a key reason for Canada's slipping global ranking for "network readiness" (Canada has moved from 6th worldwide in 2005 to 13th today). Canada ranked 75th in the number of mobile subscribers, trailing countries such as El Salvador, Kazahkstan, and Libya. It also lagged behind countries such as the United Kingdom, Singapore, Italy, Sweden, and Norway on mobile pricing."

Link

It's Official: Rogers bringing iPhone to Canada

The Globe and Mail are reporting this morning that, as expected, Rogers is indeed going to carry the iPhone in Canada sometime "later this year." No word yet on whether or not there will be any movement on flat-rate data and voice plans (a hallmark of the Apple deal with AT&T and other carriers).

"'We're thrilled to announce that we have a deal with Apple to bring the iPhone to Canada later this year,' Rogers chief executive officer Ted Rogers said on Tuesday in a statement. 'We can't tell you any more about it right now, but stay tuned.'”

Taken in line with the recent commentary from Rogers Wireless Prez. Rob Bruce, I'm not sure that this deal has been fully fleshed out. It wouldn't be the first time that Rogers jumped the gun on this announcement tho...

Link to G&M Article

iPhone 3G coming to Canada?

The Toronto Star is now reporting that the 3G iPhone will be not only coming out this summer, but that Rogers will carry it. My favourite parts of the article had nothing to do with the iPhone per se, but rather with data pricing in Canada:

"It has been widely speculated that the stumbling block was Rogers' wireless data plans, which typically cost more than those offered by carriers in Europe and the United States – a disparity that critics blame on a lack of Canadian wireless competition.

As well, most of Rogers' wireless data plans have usage caps, with users charged by the megabyte if they go over their allotment.

"We're not fans of unlimited plans," Rob Bruce, president of Rogers' wireless division, told analysts during a February conference call."

I'm not one to tell a business that they shouldn't take whatever they can get. If they're in a position to charge that, and get it, then they should: It's what the market will bear. If I don't like it, my choice as a consumer should be to go elsewhere.

My lack of consumer choice in this matter, and this is the big one, these sky-high prices are actually hurting the wireless telcos! Why, do you ask? Well, first, they're not going to own this game forever, and people in Canada have long memories. Second, and more importantly, wireless data represents some of the biggest opportunities for innovation since Web 1.0, and these guys are the gate-keepers. I think that rather than squeezing the network for cash, they need to get as many people ON the network. It's only through tremendous girth that they will have value to big-boy wireless app (and I don't mean game) developers.

This means that it's also hurting Canada. Why? Not because we're funneling huge sums of cash to Rogers, rather, because a cottage industry of innovation around wireless application development SHOULD be happening here, in the great white northern home of RIM. Such an industry could pay off BIG for wireless providers - Consider, they control the network, they could demand a cut of all mobile commerce transactions for eBay sales - Snipe from your Samsung!

Instead, we're stuck with companies that would rather gouge us than encourage a fledgling industry that could help them make a lot of money in the future.

Link to Toronto Star Article