iPhone Won’t Come to Canada
Waiting for Apple to release iPhone in Canada?
Get used to it!
The monolithic approach by Canadian telephone companies to mobile data prices prevents Apple from doing business with Rogers, Canada’s GSM carrier.
The situation raises serious concerns about the future of communications technology in the Great White North.
Pierre Karl Peladeau, CEO of Quebecor Media, recently appeared at a prestigious speaker’s forum in Toronto called the Empire Club.
Peladeau attacked Canadian mobile network providers while brandishing an iPhone and citing the outrageous fees Canadians would have to pay to make the phone operate.
"Americans can pay about $60 a month to use the iPhone," Peladeau said. "In Canada, this same phone will likely cost between $260 and $879 a month."
Apple was able to secure a deal with AT&T for unlimited data access at a reasonable rate of $60 per month. This provides iPhone users access to iTunes for mobile music and other entertainment media downloads. In Canada, wireless data costs make the entire sector of business cost-prohibitive.
Companies like RIM and Apple have invested in mobile networking not to sell hardware because the real money is made selling their services.
Google is also preparing to join this competition shortly. In 2008 Google will make its web services available to a new industry based around wireless data services.
If Rogers and Bell have their way, Canada will be isolated from 21st Century communications developments.
Apple isn’t in business to sell fancy phones.It wants to drum up business for its media portal, iTunes. Without its new phone as a platform for iTunes, Apple can’t be bothered selling iPhones to Canadians.
How do Canadian data rates compare worldwide?
Canadian business blogger Thomas Purves provides graphic illustration of an entire industry in collusion.
Canadian Mobile Data Rates
Rogers owns Canada’s only GSM mobile data network. Its only competitor is Bell who owns Canada’s only CDMA network. Companies like Telus lease CDMA bandwidth from Bell. Rogers owns Fido, the other Canadian carrier using its GSM network.
There is no competition because of the protectionist policy of Canada’s equivalentof the Federal Communications Commission.
The Canadian Radio-Television and Telecommunications Commission exists not to promote fair business practices, but to protect Canadian culture and communications industries from an American takeover.
The net effect of its protectionist policies has been to dull Canada’s competitive edge. Where Canada once had a proud history as a world-class communications leader, today it’s relegated to the communications technology backwater.
A possible bright light in 2008
There is a possible bright spot for beleaguered Canadian mobile network users.
Healthy competition from new networks should knock the complacency off the industry.
In 2008, Industry Canada will auction off a whole range of wireless frequencies. Names like Shaw Communications and other have already put their names into the hat as interested bidders.
This includes pictures, hotmail access and MSN messenger access.
Bundled with the HTC touch this works out pretty good.