MTS comments on spectrum auction.MTS Allstream Encourages Auction Rules that Promote Greater Wireless Competition
Stock Symbol: MBT
WINNIPEG, May 25 /CNW/ - MTS Allstream announced that it will today file
a submission in response to the Federal Government's Consultation on the
Auction Framework for Advanced Wireless Services ("AWS") Spectrum encouraging
the government to set auction rules that will allow the entry of new wireless
competitors.
Expert reports and analysis indicate that Canada is falling behind the
rest of the world when it comes to wireless innovation. In the submission, MTS
Allstream will provide strong support which demonstrates that Canadians are
paying higher prices for wireless services that are less advanced than those
available to people in other countries, while the pace of innovation
increasingly lags as new technology becomes available to other countries
first.
"The trends for Canadian wireless consumers are not going in the right
direction, and we think Canada can do better," said Chris Peirce, Chief
Regulatory Officer MTS Allstream. "In our submission, we clearly outline that
the Federal Government must seize the opportunity presented by auctioning new
spectrum licenses to ensure that barriers to the entry of new competitors are
removed. New entrants will spur more competition, greater investment and
speedier roll out of innovative new services for Canadians."
The MTS Allstream submission will highlight several facts supporting the
case for greater wireless competition, including:
<<
- Canada is behind other industrialized countries in terms of mobile
phone penetration such that only 57% of Canadians have a wireless
device such as a phone. In the United States, the penetration rate
for wireless is more than 77% and in other industrialized countries
the rate is in the neighbourhood of 90%.
- Canada is behind other industrialized countries in terms of 3G
deployment. According to the Telecommunications Policy Review Panel,
"Canadian deployment of 3G wireless systems lags not only the U.S.
(2004), where every major operator is in the late stages of building
and marketing these services, but also significantly lags deployment
in Europe (2002), South Korea (2002) and Japan (2001)".
- Canadians pay more for wireless services than people in the United
States. Research indicates that wireless price levels in Canada are
between 3% and 79% above US prices for comparable levels of usage.
- Canadian consumers are losing out when it comes to high-tech telecom
services because of more limited content and media offerings than in
other countries due to data transmission capacity and because of
higher prices for the services they do receive.
>>
"The Federal Government must ensure there is dedicated AWS spectrum for
new entrants to bid on and must mandate reasonable roaming arrangements and
tower sharing, failing which, the existing national players could block any
further competition," added Peirce. "The national interest demands that a
public resource like AWS spectrum be auctioned in a manner that promotes more
competition for the benefit of all Canadians and aspires to make Canada a
global leader in this crucial industry of the future."
As a leading regional wireless provider in Manitoba, MTS Allstream is
well positioned to illustrate the case for greater wireless competition on a
national basis. More information on MTS Allstream's submission, including the
expert reports supporting the case for further wireless competition in Canada,
will be available at www.mtsallstream.com.
About MTS Allstream
MTS Allstream Inc. is a wholly owned subsidiary of Manitoba Telecom
Services Inc., and is one of Canada's leading national communication solutions
providers, delivering innovative products and services through the Enterprise
Solutions and Consumer Markets divisions. The Enterprise Solutions division,
which operates under the Allstream brand nationally and under the MTS brand in
Manitoba, is a leading competitor in the national business and wholesale
markets. This division offers customers a portfolio of solutions tailored to
the needs of medium and large businesses looking for success in a world of
rapidly evolving technology - Internet protocol-based communications, unified
communications, voice and data connectivity services. The Consumer Markets
division leads every telecommunications market segment in Manitoba, delivering
a full suite of next generation wireless, high-speed Internet and data,
digital television and wireline voice services under the MTS brand, as well as
security and alarm monitoring services through AAA Alarm Systems Ltd., an
affiliate of MTS Allstream which also operates in other western provinces. MTS
Allstream's extensive national broadband fibre optic network spans more than
24,300 kilometres, and provides international connections through strategic
alliances and interconnection agreements with other international service
providers. Manitoba Telecom Services Inc.'s common shares are listed on The
Toronto Stock Exchange (trading symbol: MBT). For more information, please
visit: www.mtsallstream.com.