Cracks in the lobby?

Dissident subgroups are appearing within two industry lobbying associations.

Over the past few days, we have seen Mobilicity and Wind Mobile take contrary positions to that of the CWTA in response to Manitoba’s examination of increased consumer protection rules for mobile contracts.

It is difficult to build a consensus opinion for any association consisting of market competitors. However, there is a marked difference in the expression of the dissenting viewpoints. Wind Mobile took aim at its competitors, as might be expected, talking about “The Big Three.” On the other hand, Mobilicity’s press release targets the association itself, mentioing “CWTA” 6 times  in the first 4 paragraphs.

Last fall, we saw the emergence of the Canadian Network Operators Consortium (CNOC), which appears to have a membership with considerable overlap with the Canadian Association of Internet Providers (CAIP). The challenge for these organizations is to find sufficient common ground to justify a united front, recognizing the varying business interests of the membership.

In such groups, is unanimous agreement required or can a majority vote determine whether the association attaches its seal to a position? Where unanimity is not possible, should the association stand down and have members respond on their own?

CWTA President Bernard Lord will be a keynote speaker at The 2011 Canadian Telecom Summit, opening May 31 in Toronto. Early Bird rates are in effect through February 28. Have you registered yet?

The circle game

I hummed Joni Mitchell all day yesterday. It was filled with a mixture of life cycle events.

I dropped my daughter off at the airport, seeing her start on the next chapter of her own life in a new home overseas; I joined the celebrations for a new corporate office; I attended a funeral for the father of a colleague. The comments in the eulogies seemed to tie the day together for me, serving as an inspiration to make an impact with our brief time on planet Earth.

A move to a new land, a corporate beginning, a funeral. And the seasons, they go round and round…

What do you plan to do that makes a positive impact on those around you?

Already, 5% of the new year is gone. Are you on pace?

 This year, I plan to dedicate time to working on solutions to get more computers into Canada’s most economically challenged households. As I have written before, we need one million computers to provide an opportunity to participate in the digital economy in the households with the greatest needs. I’d like to hear your ideas on how to move forward.

I am getting together with some colleagues early on Monday evening to discuss the issue. In the meantime, your thoughts would be appreciated.

A new force

Today is the official opening of Huawei’s new Canadian headquarters in Markham. Huawei’s presence in Canada has grown tremendously in the three years since I met with Huawei’s first Canadian employee in a coffee shop in Mississauga.

Huawei’s network equipment now powers a number of Canada’s largest mobile networks, including Bell and TELUS. Beyond its Toronto area offices, the company has a growing R&D centre in Ottawa. Yesterday, Huawei made announcements about separate Memoranda of Understanding with Bell and TELUS announced that they have entered into a to create and maintain Joint Innovation Centres in Canada.

The collaborative platform will take Huawei and TELUS’ existing relationship to a new level, increasing business benefits for both companies. Huawei and TELUS will work together on enhancing broadband solutions, wireless and wireline offerings. According to terms of the memorandum, the length of the agreement is three years and each company will own 50 percent of the Joint Innovation Center.

In the Bell Centre, Huawei and Bell will collaborate on developing and enhancing broadband wireless solutions, core network products and value-added service offerings.

Huawei’s is a remarkable growth story that can be the source of numerous business school case studies. For today, we’ll stick with extending our congratulatory wishes on the new offices.

Huawei is a sponsor of The 2011 Canadian Telecom Summit, opening May 31 in Toronto.

Provinces examine mobile

Last December, Manitoba issued a consultation paper examining consumer protection in mobile services contract. It is somewhat interesting that the provincial government is looking at intervening. Recall that 3 years ago, the spectrum set aside rules ignored Manitoba’s 60% market share when determining the definition of incumbents – under the banner of “Putting Consumers First.” 

The paper observed that Quebec already has specific legislation dealing with cell phones. Quebec’s Bill 60 requires that mobile services contracts must be in writing (with a specific minimum font size) detailing information including:

  • detailed descriptions of the services provided
  • monthly rate for each service or the equivalent monthly cost
  • total amount paid each month
  • restrictions on services, including geographical limits
  • contract term and expiry date
  • details on how to terminate the contract
  • details on any special deals offered in the contract

Ontario has seen a private members bill introduced, calling for mobile services consumer protection.

Manitoba’s consultation asks 18 questions – and submissions are due today. Mobilicity has already responded, indicating in a press release last Friday that it opposes the position taken by the wireless industry’s national association, the CWTA.

We are exceptionally disappointed with the CWTA’s lack of foresight in continuing to act only in the interests of the Big Three wireless oligopoly. As members of the CWTA, we repeatedly voiced our opposition to its submission to no avail.

According to Mobilicity, the CWTA submission will say that consumers are better served by open competitive markets and a self-regulated wireless industry with a strong Code of Conduct.

It is a feisty warning shot to the CWTA that a consensus can be very difficult to achieve among all of the service providers. However, the divergent views that may actually be a demonstration that there are alternatives emerging to counter Canada’s largest 3 carriers. The industry does not move in unison and consumers are gaining increased choice. Mobilicity did not acquire Manitoba spectrum in the last auction; new entrants – Shaw and Wind – have not yet launched service in Manitoba.

Electronic red tape

The Prime Minister has announced a “red tape reduction commission” that is to look at ways to reduce the federal regulatory burden on businesses.

Of course this is good. But I juxtapose this article with some memoranda from various law firms [such as: here and here] warning businesses that the new anti-spam act could impose all kinds of new tracking requirements, such as how you came to acquire an email address in your address book.

The Act went far beyond what what necessary when we created legislation that could inhibit activities that promote legitimate electronic commerce. As government officials prepare the regulations associated with proclaiming the bill, hopefully there will be consideration given to the potential administrative burden associated with legitimate business’ conformance with the new anti-spam rules.

The Red Tape Reduction Commission website expects to “identify options for lasting solutions to fix the regulatory system to prevent red tape “creep” over time.”

It should start with pre-emptive consideration of the administrative burden associated with the new regulations that could otherwise inhibit e-commerce adoption.

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