Bell and Telus this week will launch new HSPA wireless networks. Both companies
are proud to announce they will be launching four months earlier than expected.
Bell and Telus, increasingly inseparable, pass international standard HSPA +, fully compatible with GSM networks in over 200 countries. This is a first for them since they had until now favored the established systems from the CDMA standard, popular in North America, but virtually unknown elsewhere. This puts Bell and Telus in direct competition with Rogers and new players such as Videotron, which will launch its new network next spring. This migration also allows Bell and Telus to sell the hugely popular iPhone to their customers because this device is only available in HSPA.
Bell and Telus probably wanted to take advantage of the holiday season to offer the iPhone to their customers and retain them for the duration of the three-year contracts that accompany the purchase of this device. Bell and Telus also hope to take over all new consumers who are preparing to compete with established companies in the coming months. Bell will also benefit from the visibility it has as a sponsor of the Olympics in February to promote his new offer and take advantage of all the calls that will be between Vancouver and other countries.
All this is fine, but one thing eludes me entirely. Bell and Telus have chosen to offer tomorrow access to the network almost anywhere in Canada except Quebec and the Ottawa area to be served until the first quarter of 2010 by a slower HSPA network. The remote parts of northern Alberta or the coast of Newfoundland have access to the new ultra-fast network, but not us. I believe that it is precisely in Quebec, where competition is most intense with the arrival of Videotron in this market.
Since the appointment of George Cope at the helm, Bell seems like a player less lethargic and less defensive than with Michael Sabia. Bell became the owner of The Source stores and 750 stores will cease from January to sell subscriptions for Rogers and Videotron terminals in 150 branches in Quebec. They bought the half that did not belong to Virgin Mobile in Canada. Bell TV – formerly ExpressVu – I think also more dynamic in this market. In short, the old lion roars yet.
The old lion still must deal with a poor image. It’s clients made 1239 complaints last year to the Complaints Commissioner, substantially more than Rogers and Telus. Videotron, which makes life hard in Quebec has in turn generated only 72 complaints. Besides quality and network performance, it is here that early 2010 will be the tough battle to win the heart of Quebec.
Putting Quebec and Ottawa in the bottom of its priorities for the establishment of the new network does not appear to me a sign in the right direction.