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This is huge for Canada's telecoms. 
Bell, Telus to launch iPhone next month
By Simon Avery
Globe and Mail Update
Move will break Rogers' year-long stranglehold; telcos set to launch next-generation wireless network ahead of schedule
BCE Inc.'s BCE-T Bell Canada and Telus Corp. T-T will begin selling the iPhone next month, breaking the stranglehold on the device that their rival Rogers Communications Inc. RCI.B-T has held for more than a year.
Both carriers hope the addition of Apple Inc.'s AAPL-Q groundbreaking smart phone to their lineups will help them sign up higher-value customers and shift the balance of power in Canada's mobile market.
Bell announced on Monday that it will launch in November, months ahead of schedule, the next-generation wireless network it has been building with Telus. The build-out extends the companies' existing 3G (third generation) network to include the same technology standard employed by Rogers, the nation's largest cellphone company.
Telus has yet to give an indication of when it will begin offering service on the new network.
Until now, Rogers has enjoyed a Canadian monopoly on that standard, known as high-speed packet access (HSPA), as well as its precursor GSM, and with it, one of the hottest products of the IT age. The iPhone, which is a GSM-based device, has helped drive the company's wireless growth through the recession by 7 per cent this year. Rogers has said its iPhone customers spend 1 1/2 more than their average wireless subscriber.
Neither Bell nor Telus would confirm that they would add the iPhone to their lineups. Apple also declined to comment. But people familiar with the matter said the two carriers will announce a working partnership with Apple as early as Tuesday or Wednesday and begin selling the device in time for the launch of their new network next month.
Apple demands strict terms from phone companies carrying the iPhone, which limit the carriers' ability to cut prices or differentiate their subscription plans significantly. But for consumers, the news will mean at the very least greater supply of the device as well as more choice in service providers and bundled offers for other services, such as home phone, Internet or television connections.
The iPhone has proved a double-edged sword for Rogers and other wireless operators around the world carrying the device. The smart phone attracts more customers, and specifically users who spend more money that the average mobile phone client. But it requires a heavy subsidy from the carriers, which eats into their profitability.
For example, Rogers' revenue from wireless data increased 40 per cent in the first six months of the year to $611-million. But the company's profitability has been squeezed by the cost of subsidizing the iPhone and other smart phones. Rogers spent $479-million on handset subsidies in the first six months, an increase of 59 per cent.
Apple's fortunes have soared with the iPhone. But the phone companies are realizing that they have to balance the cost of their subsidies with the value of the customers the device brings in.
For Bell, which has managed to cut its wireless customer acquisition costs recently, the iPhone should help spur much-needed growth. The company added only 45,000 new mobile phone customers, compared with 142,000 for Rogers and 111,000 for Telus.
For Telus, Apple's smart phone should help it bolster its average revenue per user, which declined nearly 7 per cent in the second quarter.
Bell and Telus have rushed to get their new network in place before the holiday shopping season. Bell argues that its version is more advanced than Rogers' because it uses the latest version of the standard, called HSPA+, which is capable of download speeds of up to 21 megabits per second. Rogers, which has used GSM technology since 2001, is still in the process of converting its entire national network to the HSPA+ standard. Last month it said the new technology is in place in five cities: Vancouver, Calgary, Toronto, Ottawa and Montreal.
Bell and Telus announced a year ago that they would put aside their historic rivalries to build the HSPA network together. They said the partnership would allow them to split the approximate $1-billion cost and to get to market sooner.
By Simon Avery
Globe and Mail Update
Move will break Rogers' year-long stranglehold; telcos set to launch next-generation wireless network ahead of schedule
BCE Inc.'s BCE-T Bell Canada and Telus Corp. T-T will begin selling the iPhone next month, breaking the stranglehold on the device that their rival Rogers Communications Inc. RCI.B-T has held for more than a year.
Both carriers hope the addition of Apple Inc.'s AAPL-Q groundbreaking smart phone to their lineups will help them sign up higher-value customers and shift the balance of power in Canada's mobile market.
Bell announced on Monday that it will launch in November, months ahead of schedule, the next-generation wireless network it has been building with Telus. The build-out extends the companies' existing 3G (third generation) network to include the same technology standard employed by Rogers, the nation's largest cellphone company.
Telus has yet to give an indication of when it will begin offering service on the new network.
Until now, Rogers has enjoyed a Canadian monopoly on that standard, known as high-speed packet access (HSPA), as well as its precursor GSM, and with it, one of the hottest products of the IT age. The iPhone, which is a GSM-based device, has helped drive the company's wireless growth through the recession by 7 per cent this year. Rogers has said its iPhone customers spend 1 1/2 more than their average wireless subscriber.
Neither Bell nor Telus would confirm that they would add the iPhone to their lineups. Apple also declined to comment. But people familiar with the matter said the two carriers will announce a working partnership with Apple as early as Tuesday or Wednesday and begin selling the device in time for the launch of their new network next month.
Apple demands strict terms from phone companies carrying the iPhone, which limit the carriers' ability to cut prices or differentiate their subscription plans significantly. But for consumers, the news will mean at the very least greater supply of the device as well as more choice in service providers and bundled offers for other services, such as home phone, Internet or television connections.
The iPhone has proved a double-edged sword for Rogers and other wireless operators around the world carrying the device. The smart phone attracts more customers, and specifically users who spend more money that the average mobile phone client. But it requires a heavy subsidy from the carriers, which eats into their profitability.
For example, Rogers' revenue from wireless data increased 40 per cent in the first six months of the year to $611-million. But the company's profitability has been squeezed by the cost of subsidizing the iPhone and other smart phones. Rogers spent $479-million on handset subsidies in the first six months, an increase of 59 per cent.
Apple's fortunes have soared with the iPhone. But the phone companies are realizing that they have to balance the cost of their subsidies with the value of the customers the device brings in.
For Bell, which has managed to cut its wireless customer acquisition costs recently, the iPhone should help spur much-needed growth. The company added only 45,000 new mobile phone customers, compared with 142,000 for Rogers and 111,000 for Telus.
For Telus, Apple's smart phone should help it bolster its average revenue per user, which declined nearly 7 per cent in the second quarter.
Bell and Telus have rushed to get their new network in place before the holiday shopping season. Bell argues that its version is more advanced than Rogers' because it uses the latest version of the standard, called HSPA+, which is capable of download speeds of up to 21 megabits per second. Rogers, which has used GSM technology since 2001, is still in the process of converting its entire national network to the HSPA+ standard. Last month it said the new technology is in place in five cities: Vancouver, Calgary, Toronto, Ottawa and Montreal.
Bell and Telus announced a year ago that they would put aside their historic rivalries to build the HSPA network together. They said the partnership would allow them to split the approximate $1-billion cost and to get to market sooner.
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