Bad move for Telus.. Rogers is a BUY!I don't believe investors have fully taken into consideration the cost it would incur for Telus to make such a move to deploy a GSM network. It is not as simple as adding 3G Cpu's on a few BTS's.
Telus management will need to think about the pros/cons of making such a move at this specific time. If they were to change their network to GSM it shouldve been done a few years ago and not today.
A few negatives for Telus:
- The high cost of rolling out a GSM/3G network(Rogers started going GSM in 2002, and was helped by the purchase of an already established Canadian GSM network Microcell)
- Next step is 4G, this will merge and create inter-compatibility. Meaning Telus could very well have a cut in Roaming without the need of creating a new Network, rather upgrading to WCDMA. It will save Time and Money.
- Telus would already be a few years behind Rogers GSM in getting their network up to par and fine tuned.
- New competition will be in the same boat as per Timeline, but will have the benefit of roaming on Rogers GSM for an established fee. Telus will not have that benefit.
- Timing of this GSM idea from Telus is off the mark, as for getting a piece of the Roaming Pie, it is much smaller now than it could have been a few years ago.. Is it really worth going GSM now that there will be possibly 2 GSM companies already in Canada???
Telus management must be aware of the consquences of this action.. And all around it would not make sense Financially.