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September 5th, 2008Waiting for the Bell/Telus HSPA announcement

Posted by Editor in HSPA, bell, telus

An announcement was expected as early as this week [National Post
BCE and Telus in 3G network pact
], but apparently the spell checking and t crossing on the PR release is taking a little longer. The cat is pretty much out of the bag however, they may as well tell us the full news.

What might an HSPA announcement mean? For one thing they will be among the first to roll out a “naked” HSPA network. Most other carriers globally moving to HSPA are upgrading or overlaying on top of existing 2G GSM/EDGE etc. services. Bell and Telus (and probably other new entrants as well) will be rolling out without the benefit of an established/reliable (if slower) network to fall back on when out of HSPA range.

It also means that Rogers will still retain all the roaming revenue from foreign (2G) GSM phones roaming in Canada. When it comes to 3G services, Rogers may have the advantage in reliability and coverage for a while until Bell/Telus new networks can can catch up in density and maturity. Even the new entrants may do better as they’ll have the advantage now of falling back to the Rogers network as well as the Bell network for roaming and reliability. (A little extra competition on the wholesale side for HSPA roaming probably can’t hurt their cause either).

What else will be the consequences of managing a frankenstein CDMA+HSPA network? What will happen to all those 3 year EVDO contracts? We shall see, and we await word from Bell and Telus. Meanwhile if you have theories, drop us a comment.

WirelessNorth.ca originally broke the story on Bell /Telus going GSM-HSPA back in July.

  • GaryB
    HSPA officially announced this morning by TELUS, Oct 10/08
  • Tom W
    Everyone's on this "switch to HSPA" bandwagon it seems except me and here's why:

    - Bell's recently spent over 350 Million expanding their EVDO footprint.
    - CDMA carriers are still having success in some parts of the world. Sprint although not "sexy" is having a great time selling the Samsung instinct in the US. (Bell recently launched this same handset. Not a small investment, when you think about $500 or more per unit cost from Samsung.
    - The next logical evolution is a 4G LTE or other type of network.
    - The cost of building out a new national network is huge and as you've mentioned above they'd still have to support the 10 million handsets that are on the old network for a period of at least 3 years.

    The money that it would take to make the switch is the real indicator here. Are the new owners of Bell willing/able to spend this kind of money and hope for a quick recovery? I don't think so.
  • sebastien
    My theory is that Bell/Telus will build out the Vancouver/Whistler area in time for the Olympics, scramble to sign roaming agreements with offshore carriers, and I further predict that by 2010, nobody will own a 2G phone anymore ;-)
  • mainertoo
    I think you are spot on there sebastien. It has amazed me that an official sponsor of the Olympics would bend over and let Rogers entertain the world on GSM roaming all by their lonesome. Granted, they still might with the 2G service but I agree that Bell/Telus will be scrambling to sign roaming agreements in a hurry.
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