Kure Technologies Inc V.KUR.H

Not such a sweet deal afterall

[DAbramov]

Industry Canada provided clarification today regarding the use of the incumbents network by a new entrant. Funny how the beaurocratic game is played. Looks like it'll take BILLIONS of dollars for a new entrant to start playing the game..... nevermind winning the spectrum auction. Good Luck. The picture is starting to look grim ================================= Post says feds score one for Rogers, Telus and BCE 2008-02-29 09:05 ET - In the News Also In the News (C-BCE) BCE Inc (2) Also In the News (C-T) Telus Corp (2) The Financial Post reports in its Friday edition that Canada's three national wireless companies got an unexpected gift from Industry Canada as it announced new entrants must build their own networks before being allowed to roam on the incumbent competitors' networks. The Post's David George-Cosh writes that since initial rules suggested a new wireless entrant would be able to almost immediately piggyback on the networks created by Rogers Communications, Telus and BCE, experts said the key clarification would make winning May's wireless spectrum auction much less of a boon for a new wireless player. "[The report] increases the risk for new entrants," said consultant Eamon Hoey. "Before you start to build, you don't know what the costs are going to be. You've got a business plan that's got a big hole in it." For instance, new entrants would be forced to spend millions, if not billions, to build a network of equal capacity to Rogers if they wish to roam on its high-speed service. "We believe this is a net positive for the incumbents, especially for Rogers, because the clarified rules are not as favourable to new entrants as previously feared," Jeffrey Fan, a UBS analyst, said in a note.