September 30, 2014
Chairman and Chief Executive Officer
Canadian Radio-television and Telecommunications Commission
Ottawa, Ontario, Canada, K1A 0N2
Topic: An open letter to the CRTC’s Jean-Pierre Blais regarding the Wholesale Wireless Market in Canada
The Canadian MVNO space is does not exist today.
Global market presence for MVNO’s is established and is strikingly different from Canada, Europe and has created over 500 healthy MVNO’s competing daily with the major carriers to deliver more imaginative cellular services, better value and often lower prices.
In the United States, the MVNO market exceeds over 180 healthy MVNO’s servicing all sectors of the market including, business, small business, consumer and machine to machine (m2m) for alarm monitoring, patient health monitoring, wearable technology etc.
The MVNO markets everywhere have proven that they can target niche audiences more effectively and delivery highly targeted services such as tailored long distance plans, pre-paid no contract options, life-style niches such as affinity groups (example American Automobile Association, Kroeger Mobile and Walmart Family Mobile to name a few).
The total number of MVNO subscribers in the United States is estimated at 30 million. The estimate in Canada is basically three (3) MVNO’s that server less than 500,000.
We believe that the market in Canada can easily support between 2.5 – 3.0 million MVNO subscribers. This will create mobile innovation, competition, jobs, and potentially spur an organically created Canadian Fourth Carrier that is not straddled in debt.
The markets in the United States and Europe have been operating successfully for more than 20 years based on fair agreements between carriers, for matters of roaming with agreed upon and competitive resale and roaming rates.
The precedents are everywhere. The rates are set. Time for studying is over. Time for action is now. Canada has to choose to be a leader in Telecom or a laggard.
President, Frontier Networks Inc.