Yesterday the CRTC blocked Globalive from becoming Canada’s next national new wireless Carrier. This 14 months and 450 billion million dollars after this same government of ours (in this case Industry Canada) took Globalive’s money, approved their ownership structure and welcomed the new entrant to the industry.

Ironically, it was Telus who explains this decision the best: “CRTC makes the only Globalive decision it could“. The addendum to which would be “…after we ourselves, in a pique of legal jackassery, vigorously lodged the very official complaint thus forcing CRTC to abide to the letter of their antiquated and anti-competitive governing act despite it’s obvious contraction of the expressed policy of the Canadian government and people in this case.”

But don’t blame the incumbents. You know, other new entrants were equally pissed if/that Globalive would be seen to be receiving special treatment. The fact is that the Canadian capital markets are too small. All the other entrants (and even the incumbents in the past) have struggled mightily to build out their infrastructure while meeting the ownership requirements of last century’s Canada Telcom Act.

The real culprit here is our own bumbling goverment (Governments plural really) for a decade now, who have failed to reform or de-regulate foreign ownership, and who’ve failed modernize Canada’s regulatory governance in any coherent way to advance Canada in the digital economy.

Tony Clement, we’re looking at you.

Telus has announced it’s iPhone launch for November 5th of this year, at the same time they are announcing their half of the new 21MB HSPA+ (same speed as Rogers) network they’ve been rolling out with Bell. Telus is calling it “Canada’s largest 3G+ network“. We have no idea what that is supposed to mean.

What we do know, is that things are looking up in Canada Wireless-wise. Compared, for instance, with our poor American neighbours to the south we now have not one but three (and soon to be more) offering the latest 3G standards all of whom offer, generally, far better reliability than the US’s largest GSM carrier AT&T.

On top of which we now have three carriers offering the iPhone 3GS as well as, we trust, some very nice next-generation androids and blackberries (9700′s) any day now.

It’s going to be a very good Christmas to look for smartphones and broadband sticks in your stockings.

The answers so far are no, yes and maybe. Depending who you ask.

Brush up on the announcement and initial reactions here: Peter Nowak has excellent coverage today of the CRTC call (long time coming) on net neutrality in Canada. Michael Geist and Ars Technica offer some balanced opinion.

What everyone seems to agree on is that CRTC’s framework is reasonable, and is highly progressive relative to where the debate was just a year or more ago. We’ve argued in the past for economic solutions to ISP capacity which is what the CRTC is also stressing.

When it comes possible dirty tricks with packets, the problem will be in enforcement. It’s not clear that the framework will result in ISPs changing any of their current practices (other than increased disclosure). For those of us on teksavvy connections, now perhaps stuck for all time at 5MBps and throttled during all waking hours, that doesn’t sound too hopeful.

Under the framework if there are violations, it’s up to consumers to make a complaint. In the event of a complaint it would then be up to the CRTC to take however long it might take to follow up (for example, it’s now taken about 3-4 years since the ISPs started toying with throttling/DPI for the CRTC to address the issue of net neutrality) and when the CRTC makes a ruling they may side either way. The ISPs have a fair degree of leeway in deciding when traffic management is “needed”.

The current framework also does not apply yet to wireless. The CRTC is promising a separate ruling on wireless. This concept concerns us. If you believe in a principles-based approach to policy, it confuses us how exactly the carrier’s particular choice of last-mile technology should have bearing on that.

Remember that the end game for true innovation in Canada will be the day we can all access fat pipes with a level playing field for voice, video, data and any other service across those pipes whether they be wired, wireless or any combination.

The real problem for now that we consumers want it both ways. We enjoy our convenient cable and dsl broadband, infrastructure which is in fact heavily cross-subsidized by the economies of scale and scope of the digital tv, home phone, video on demand etc. services that your carrier delivers through that same last mile connection.

What we want is our cheap, low-up-front-cost connection to be super fat and completely open without having to watch all those stupid adds on regular tv, or pay the ridiculous cable charges or inflated home-phone fees.

There’s only a few ways we can think of around that dilemma.

a) Either someone goes out and builds a net-new fibre to the home/office at an epic scale (with either public or private investment or both, and note that some cities/municipalities have acheived this sometimes with spectacular success). We’ll defer to Mark Surman on this one (Director of the Mozilla Foundation) who told us once “listen, if you really love the net don’t protest about it, if you want the net to be awesome, don’t expect/demand/ask everyone else to make the net awesome for you, go make it awesome yourself!”

b) We learn to suck it up and pay the full cost of open connectivity infrastructure in exchange for the benefits it brings us (Think a few hundred to a few thousand dollars per home for fibre depending on density). Think of it as part of the capital value of realestate, after homeowners and landlords pay full freight for furnaces, roofing, water heaters etc. internet is just another.

c) Live with our status quo. The CRTC’s new framework is reasonable, if it can be enforced. Increased service transparency may yield more aggressive competition on consistency of service speed and quality. We shall see.

The news burning up the twittersphere today is that Bell and Telus are both revealed to be launching the Apple iPhone in Canada, as early as next month.

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.

This is pretty epic news and a huge win for Canadians. Not for the sake of the iPhone, which is a perfectly excellent phone, but because it means the HSPA competitive war is now on. Far more than the coming new entrants (though they won’t hurt either) the fact that all three big telcos are now going toe-to-toe in the once Rogers-only universe of GSM can only be good news for the rest of us. In fact, Canada is the only market we can think of where 3 three carriers are offering the speedy fruit-themed widget. We just now need to see what the plans will be.

One also wonders if supplies of 3GS’s at Rogers outlets will also magically improve real quick?

link: Bell, Telus to launch iPhone next month

Coming soon on WirelessNorth.ca: Dear Bell and Telus, please just kiss and makeout and get it over with already.

UPDATE: It appears that triple-carrier iPhone is becoming the norm in various markets including the UK and France. At WirelessNorth.ca we for one welcome this new comoditization of high-end smart phones.


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