Anthony Lacavera: How Do We Create A Globally Competitive Wireless Industry In Canada?
- April 15, 2010
Facilitate access to foreign capital, separate broadcasting content policy from telecommunication carriage and liberalize foreign ownership rules
TORONTO – April 15, 2010 – On the backdrop of the latest OECD study revealing that Canada ranked 30th of 30 countries in wireless penetration, Anthony Lacavera, Chairman of Globalive and WIND Mobile, Canada’s newest national wireless provider, shared his perspective on creating a globally competitive wireless industry in Canada at an address to the Empire Club today.
“We have the potential to be leaders in the wireless industry, not followers,” said Lacavera. “But in order to create the conditions for Canada to have a more efficient and vibrant industry, we need to make changes that will help make competition and innovation possible.”
The three key changes Lacavera identified as essential were: the need to facilitate access to foreign capital, the need to separate broadcasting content policy from telecommunications carriage and the need to liberalize foreign ownership rules.
On the need for greater access to foreign capital, Lacavera was explicit: “We can’t have it both ways. If we want full, real, telecom competition in Canada, we have to be able to fund it. If we can’t fund it in our own backyard, then we have to allow for foreign capital. If we’re serious about competition to provide greater benefits for Canadians then we have to allow the free market to work.”
Highlighting that incumbents such as Rogers and BCTel (which became Telus) had both leveraged foreign capital in building their networks, Lacavera declared that mobile operators should be able to build next generation networks with a globally competitive cost of capital and broader access to expertise from international operators – both of which have been instrumental in the founding of WIND Mobile.
In speaking on the need to separate broadcasting content policy from telecommunication carriage, Lacavera emphasized that it is important to differentiate between companies building telecom infrastructure from companies creating content that will be distributed on the infrastructure. “The larger and faster our infrastructure, the more content can be carried and delivered faster. Ultimately, we want the biggest ‘pipes’ at the lowest possible cost, The critical issue for the development and advancement of Canadian culture is what is moving through our pipes, not the sources of capital used to build them.”
The final issue Lacavera addressed was the need to liberalize foreign ownership rules – a key recommendation in by the Telecommunications Policy Review Panel in 2006 which ultimately ushered in the Advanced Wireless Spectrum auction that took place in 2007.
“We feel that foreign control restrictions should be removed and replaced with a more flexible structure that encourages and facilitates foreign investment where that investment benefits Canada and Canadians and restricts it where it does not,” said Lacavera. “Liberalization will not only improve economic efficiency, it will also enhance consumer choice. The bottom line is that the quality, pricing and availability of wireless services will improve significantly if Canada’s foreign ownership restrictions are liberalized.”
In concluding his remarks, Lacavera emphasized the strong desire among Canadians to have real competition at level comparable to other countries such as the United States. “The standard for these changes shouldn’t be about whether they are good for the Big Three or for us (WIND Mobile) – it should be whether they improve the lives of Canadians.”
About WIND Mobile and Globalive Holdings
WIND Mobile provides voice, text and data services to Canadians on a next-generation wireless network and is committed to offering a level of wireless service presently not available in Canada. WIND Mobile is built on actual conversations that are happening with Canadians who are passionate about wireless and creating a better mobile offering nationally. For more information, please visit: www.WINDmobile.ca.
Globalive Holdings is a leading provider of telecommunications solutions in Canada and internationally to the consumer, business and hospitality markets. The Globalive companies include: WIND Mobile, Yak, OneConnect, Canopco and Globalive Carrier Services. For more information, please visit: www.globalive.com.
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For more information on all store locations, products and services, visit: www.WINDmobile.ca.
Media contact:
Narrative Advocacy Media
Rick Byun
(416) 644-4124
rick.byun@narrativeadvocacy.com
