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Rogers to CRTC: $28 Million Spent Weekly to Maintain Network; Market is Competitive

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Following the Competition Bureau and Telus, it was time for Rogers to make a presentation during the CRTC hearings scheduled for this week. During his presentation, Guy Laurence, Rogers’ CEO, emphasized the advanced level of the Canadian LTE coverage compared to that of Europe.

From Rogers’ perspective, the wireless market is competitive, and that involves the wholesale market as well. For example, Eastlink has roaming agreements with two of the three national carriers, said Rogers’ Engelhart. We should add, though, that the second one dates only a couple of months back.

Another controversial statement from the same carrier: Wireless startups have “freely entered” into roaming agreements, and they have the option to break the agreements if they aren’t happy with them. What Rogers fails to mention, though, is that it was the only carrier capable of providing roaming services for wireless startups after they launched.

Furthermore, the CRTC asked for roaming agreement documentation earlier this year from all carriers. It found “unjust discrimination” in the aforementioned “freely” signed agreements with new entrants and banned exclusivity terms from those contracts.

As it turns out, Canada’s No. 1 carrier spends more than $28 million each week on its network. Besides that cost, there is a myriad of costs and conditions associated with operating towers. As Laurence highlighted, he has no idea how the regulator could possibly figure out a wholesale tariff.

The hearing is on as of the writing of this article. Its aim is to discuss in a timely matter the wholesale rates of the wireless market, which could be the key to the growth of wireless startups like Wind Mobile and Videotron.

Via Twitter (Christine Dobby and Greg O’Brien)

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  • Readmore

    This guy is a clown, there is no way the big 3 are competitive.
    Everything they do is from collusion. Raising rates, same plans. Hell Bell and Telus built a freaking network together.

  • Norm

    Where I find that the big three take advantage of us is in the new 2 year contracts when you use your phone.

    They tell you that the monthy rate would be about $10.00 cheaper per month if we use our phone.

    The numbers don’t add up. $10.00 X 24 months is $240.00. The new phone6 ,16gb cost $749 to purchase or $264.00 down to buy with a plan .

    The difference is $ 485.00 ($749.00 – $264.00) balance owing on the phone with the plan. $485.00 divided by 24 months = $20.21. They have to amortize or pay off your phone.

    So if we use our own phone why is the plan not discounted by $20.00 per month instead of $10.00.

    They’re (big three) taking adavantage of us and the CRTC should be looking into that as well.

  • Tobi

    How is it competitive when the big-3 and their big-3-jr have all the same plans?

  • …waiting for Bell and Telus to chime in and state that they too spend exactly $28M every week maintaining their networks as well.

  • einsteinbqat

    28 000 000 $/w x 52 w = 1 456 000 000 $

    Really? Nearly 1,5 billion dollars per year to maintain the network?

  • SV650

    Which carrier are you discussing? I recall Telus BYOD price is $20 / mo discounted.

  • Deathdearth

    Most carriers only give 10% off

  • Norm

    Rogers

  • websnap

    Bell is 10%

  • Norm

    If your plan is 80.00 per month 10% is only $8.00.

    It should be at least $20.00 per month off

    if you use your own phone.

  • Geoff

    That’s incredible. I feel so bad. Is there any way I can send additional money to my wireless provider to help them out?

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