10. Decoupling of demand and revenue
aka: dumbpipeification
Bandwidth
You are here Demand
Carrier Revenue
In 2011, at least one Canadian carrier was reporting data growth of 5% per week
@tpurves
11. What does this look like?
• From Q1 2011 to Q1 2012, Rogers saw their number of
smart phone subscribers go from 3.3 to 4.6 M - 38%
growth
• In the same period, Rogers total wireless revenues
declined – negative 1% growth
• Solution: vertically integrate into media! Lock-up content
licenses, diversify into new “value” added services
• Note: when you see a whole new service marketed by a
telco, ask yourself who’s problem are they trying to solve
here their’s or mine?
• Meanwhile, feed the beast… our insatiable demand for
bandwidth
@tpurves
13. Government’s role
• Wireless services in Canada are governed by
either the CRTC or Industry Canada. Or
sometimes both. Or neither.
• Official mandate and limits of CRTC defined by
Broadcast and Telecom acts (fyi: last updated by
Parliament in early 90s)
• Provinces also have patchwork of consumer
protection legislation relative to wireless
• Canada has no official national digital strategy
@tpurves
17. How this cookie is going to crumble
Rogers New
Bell & Telus will
Entrants:
split these and
there can
combine them
only one
• Contiguous spectrum is more valuable
• Rogers will take B block, aligned with ATT in the US, and try to make the best
of combining it with A block
• Bell/Telus will take C1 & C2 which they may be able to make effective joint
use of through their network sharing agreements
• C block will be fiercely contested by 3-4 remaining carriers (no supported by
foreign financing) also helping to drive-up the bidding on B and C as well to
prevent tacit collusion amongst big 3 and maximize government revenues.
19. How the conservative government will
spend the next 4B auction proceeds:
1. Implementing a national digital strategy
2. Incentives or tax rebates for digital infrastructure investment
3. Grants or venture funding for Canadian digital startups or
content creators
4. Rolling out rural broadband
5. Rolling out urban broadband or fibre
6. Waiving HST on wired & wireless broadband subscriptions
7. Save the CBC
8. General revenues
9. Paying baby-boomers’ healthcare bills
10. Buying votes in time for the next election
@tpurves