Canadian Carriers May Switch To GSM

[Blue4Life]

Canadian Carriers May Switch To GSM
By Marin Perez
InformationWeek Wed Jul 23, 1:35 PM ET

Canada's second- and third-largest wireless carriers may be switching their cell phone network technology from CDMA to a GSM-compatible one, according to a report from UBS Investment Research.
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The shift would allow Telus and Bell Canada to offer a new variety of handsets that have only been available on the market-leading Rogers Wireless. A change would also give the two wireless carriers revenue from GSM-using international customers who are roaming while in Canada.

Bell and Telus are reportedly looking to switch to either High Speed Packet Access or Wideband-CDMA technology, which are similar to GSM in how they transmit data. The move to GSM would cost the companies a combined $360 million to $480 million, according to the report. Representatives from Bell and Telus did not comment.

The majority of carriers around the globe use GSM technology for their cellular networks, and companies like Telstra in Australia and SKT in South Korea have recently made the switch from CDMA. Additionally, handset manufacturers are increasingly producing consumer-friendly phones that are GSM-only.

"If Telus (and BCE) comes through with this decision, one could conclude that they had little choice if they want to secure their future competitive position," UBS said.

A switch could enable Canadian wireless subscribers to take their phones with them when switching providers. It could also allow Bell and Telus to offer the popular iPhone 3G, a GSM-only device.

Rogers is the only Canadian company that carries Apple's handset, but there's no exclusive agreement like AT&T has in the U.S. market. But many Canadian customers complained that Rogers' mandatory plans were too expensive, and the required three-year contract was too long. A switchover could provide these customers with more carrier choices for Apple's popular phone.

[Mobile Mike]

I read about this too on another site, but I wonder if this be BCE and Telus' LTE upgrade path plan more so than a network switch . It would make sense for them to begin the process now. Within a few years, they both will be on the same level with Rogers (with LTE). It doesn't make sense for either one to go with "GSM" per se, as it is obsolete in its original form, but heading down the GSM architecture path makes sense, of which is LTE.

If they both truly decide to move away from CDMA, it will be great for Canadians who are presently stuck with the Rogers GSM monopoly.

[spleck]

It's a conundrum! They want to migrate to UMTS (LTE), but they also want to get roaming fees, and very few international phones have UMTS (LTE or WCDMA) support for North American frequencies. They do however often have 1900 GSM, and sometimes even 850.

Too many standards out there right now to fit in a single phone...

[Cellplanman]

I was speaking to some high up there Bell rep about 8months ago.. and he said that in 2yrs they should have GSM. Their phones will have both the GSM and the CDMA option (for the old users).

Personally.. I doubt itll happen any time soon.. rogers is trying real hard not to let even one competitor in GSM.. forget two

[Mobile Mike]

Originally Posted by Cellplanman

I was speaking to some high up there Bell rep about 8months ago.. and he said that in 2yrs they should have GSM. Their phones will have both the GSM and the CDMA option (for the old users).

Personally.. I doubt itll happen any time soon.. rogers is trying real hard not to let even one competitor in GSM.. forget two

Rogers wouldn't really be able to stop them, would they??? Do they hold that much power in Canada? Also, would the Canadian government allow Rogers to get away with this?

[hillbilly44]

Originally Posted by Cellplanman

I was speaking to some high up there Bell rep about 8months ago.. and he said that in 2yrs they should have GSM. Their phones will have both the GSM and the CDMA option (for the old users).

Personally.. I doubt itll happen any time soon.. rogers is trying real hard not to let even one competitor in GSM.. forget two

Actually they are looking at UMTS/HSPA to allow roaming and give them a better inventory of phones alone with decreased network equipment cost. Also they believe it'll allow them to migrate to LTE and reduce some of the royalties they pay to Qualcomm. With UMTS/HSPA they can do a handover between UMTS/HSPA and GSM but not CDMA & GSM.

[Wireless Mechanic]

Yup thats correct, the new Bellus (Bell/Telus) network is 3G UMTS, its NOT GSM.

[Mobile Mike]

Both networks go live next month, ahead of schedule before the upcoming 2010 Winter Olympic Games in Vancouver, which is what Telus and Bell were aiming for with this upgrade.