Rogers CEO Warns Verizon Auction Win Would Affect Wireless Speeds

Rogers CEO Nadir Mohamed, speaking with the Globe and Mail’s editorial board, warns Canadians if Verizon is able to purchase two out of four spectrum blocks, millions of Canadians will find wireless speeds falling behind.

Why? The premise is Rogers, TELUS and Bell would fight amongst the last two remaining spectrum blocks, meaning one company could possibly be shut out, lagging behind the others when it comes to faster wireless speeds. Mohamed had this to say:

“It’s really important that we all understand the importance of spectrum,”

[…]

“We have a tremendous resource that is an asset and shouldn’t be seen any differently than any other scarce resource that Canada has.”

Mohamed also reiterated the Canadian wireless industry does not need a fourth player, an argument Prime Minister Stephen Harper disagreed, as he spoke on the matter during his annual summer tour of Northern Canada, in Whitehorse:

“Our considered view, upon examining market structures here and elsewhere, is that we could use more competition in the Canadian marketplace. We believe that consumers strongly support that,”

Last week Industry Minister James Moore echoed similar thoughts to iPhoneinCanada and when asked about the ongoing PR blitz by the Big Three, said “I don’t think the campaign has been terribly successful.”

If Verizon does successfully bid on two chunks of the 700MHz spectrum and only two remained, wouldn’t one think TELUS and Bell would share the spectrum, similar to how they are currently sharing their 4G LTE network? Rogers would still have one block left to bid on and the wireless climate could very much remain the same. That is unless one major player is shut out–it would mean customers desiring faster and better coverage would switch to the best network, regardless of company nationality.

As for the degradation of wireless speeds, some would argue networks right now are already starting to feel congested on 4G HSPA+ and LTE networks. What do you think? Does Mohamed have a valid argument here? Are you scared your network of choice might be shut out?

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • Fluxuated

    Boy, the Greedy 3 are getting desperate. If Verizon coming in slows down their network, then they need to invest more into it. It means their network is pathetic to begin with.

  • Lol, the last desperate attempt.
    I’m sorry, but for exemple, their HSPA network had shitty speeds before Bell and TELUS HSPA network…

    So don’t tell me that if your network is low, it’s because of another carrier.
    What if a fifth carrier comes? They’re going to say that there are too many carriers so it’s unfair?

    They really think we are that dumb?

  • websnap

    Look at the plans we sign on for… of course they think we are dumb.

  • Graham Rose

    It sounds like rogers is worried that telus and bell would win the other 2, and share them like they do now, and rogers would get shut out. I would say if telus/bell jointly won one and rogers the other there would be no different off than now…

  • K3

    More like they would just throttle the speeds and charge twice as much to hold on to the money making model thats been in place for longer than it should have.

    “now boys and girls we told you that “other company” would cause the data to become congested.” ????????????????????????????

  • K3

    Hey speak for yourself I’m just with stoopid. ?

  • The Big Three work so well together I find it hard TELUS and Bell would shut out Rogers, but you never know. This means, time to up your ante fellas, Ottawa is going to cash in even more this time around.

  • canadan

    Sounds like yet another scare tactic to me, no support from me Rogers, come on over Verizon, shake things up please 🙂

  • djepsilon

    lol, the petition’s, the crying, the piss poor attempts to try to sway public vote… Absolutely hilarious to me. I love watching this train wreck!

  • CMfly

    Is there anything stopping them from sharing it all? Make deals with the owners of the spectrum and get some of the action..

  • K3

    What the odds that Mohammed is less concerned about holding on to the current monopoly and it’s now just more of an attempt to look good on the way out.

  • Anthony

    I’m waiting for the next erroneous fee these 3 are going to force Canadians to pay in order to cover the costs of this epic failure of a marketing blitz. Wonder what it’ll be called…. the “Bend over and take it fee”?

  • crosseyed_mofo

    so by this logic, if we were to disband one of the big 3, then the remaining 2’s speeds would increase

  • rob0302

    First stage – plead to national pride. “Do you REALLY want an American co. to come in and steal jobs and benefit from all the hard work us Canadian Co.’s have done?”
    2nd stage – Threatening. “You want to keep enjoying the current speeds, then don’t let the American’s in”
    3rd stage – ??
    I’m not sure what the 3rd stage is, but from the first 2 it looks like the Big 3 are S#!tting in their pants. Hopefully it’ll be an actual “negotiation” stage, where they come out with some good affordable plans for Canadians in an attempt to keep Verizon out..