Incumbents Will Benefit If New Wireless Entrants' Complaints Go Unadressed

Canada's wireless incumbents appear to be getting another leg up on new entrant competition as hurdles persist regarding antenna tower and sit-sharing negotiations as they try and roll out their networks.

UBS analyst Jefferey Fan told clients in a note that new entrants have complained they are encountering delays in the process and want faster response and greater access to vacant space.

Likely in response to these informal complaints, Industry Canada drafted a proposal that would first require new entrant requests for information and access be responded to within one week and second that incumbents only reserve vacant site/tower space for "imminent future use."

Based on some of the comments about the proposal, Mr. Fan said new entrants were all for the proposals whereas incumbents objected.

"We believe this is an important issue for new entrants especially since this is just the start of the network build-out (roaming negotiations still to come)," the analyst said.

"If the hurdles remain, it could lead to higher costs and launch delays, which we believe could benefit Rogers (RCI), TELUS (TU) and BCE."

Comments

[Old Trader:]

Is it any surprise that incumbents would "foot drag" on ANY proposal that would result in the pie being sliced into ever smaller pieces? That's the way the game is played.

Mar 14 09:09 PM