Why Can't We Just Buy Phones Direct?

The ongoing debate about how Canadians pay too much for mobile phone data services, how we lack competition, and how we always get locked into long-term contracts, has begun to heat up again with the upcoming launch of the iPhone next month. A CBC News report just pointed out that, while customers of the 3G iPhone in Australia will be able to buy the phone outright and carriers like AT&T in the U.S. ask customers to sign-up for a two-year agreement, Canada's Rogers Wireless is requiring that you purchase a lengthy three-year plan if you want the highly coveted device.

From a business perspective, the reasons for this decision are obvious. Why not? There is currently no competition in the GSM arena in Canada, and, with the wireless spectrum that's currently underway, there just might be in the near future. We recently employed number portability in Canada, which lets a wireless customer take his number and port it to a new carrier, should he so desire. Of course, if you're locked into a contract when a more desirable carrier pops up, you're out of luck. You have to either wait for that contract to finish, or pay through the nose to cancel it early. Naturally, anyone I know who wants an iPhone is gritting their teeth at this news, and actually considering foregoing the device based solely on principle. Why should they have to lock in for three years, the longest term reported anywhere in the world thus far, if they want it?

What would make things so much easier would be to simply start selling mobile phones directly to consumers. Sure, their sale prices would no longer be subsidized by the wireless carriers, but customers would be 100% untethered, able to purchase whatever data plan and options best suit their needs from their desired wireless carrier. Contracts are contracts, and if they are still to be offered, than so be it. But carriers should not be able to essentially hold a mobile device ransom in order to tie a customer to their services for a set period of time. I can't think of any other media and entertainment offering that works in such a manner.

I've long talked about a day when we'd actually buy the SIM card itself outright, load it up with desired options and features, and slap it into any mobile phone we like. We're a long way from that sort of open source landscape, but it really would be the most ideal option for the customer. Not only would it have the potential to improve customer service on the provider side, but it would also make it much easier (and likely!) for more people to get involved with the latest and greatest mobile phone options; and even to purchase that brand-spanking new phone as a gift for a loved one.

Rogers Says it Will Lower Price Plans

Rogers Wireless COO Nadir Mohamed said yesterday at the Canadian Telecom Summit in Toronto that the company would finally be lowering data rates to fit in line with today's cellular landscape.

Unlike the way things used to be in what seems like eons ago, mobile devices are now used for everything from surfing the 'net to sending and receiving e-mails, editing documents, streaming music and video, and even playing games. Naturally, the inflated data rate charges that are inflicted on Canadians are simply no longer relevant for the growing group of data-intensive users.

Many are reporting that this move from Rogers will be a huge leap for wireless services in Canada. But I'll wait and see the details and fine print of the actual data plans before making a judgement call. (Official announcements are scheduled to be revealed some time prior to the iPhone's arrival in Canada on July 11).

Despite what many reports are implying, Mohamed did not blatantly confirm (to be fair, nor did he deny) that the plans would actually apply to devices other than the iPhone. A representative from Rogers already confirmed to me last week that Rogers would indeed be developing a new plan for the iPhone, but made no mention about whether this plan would cross over to other devices. If anything, Mohamed seemed to focus predominantly on the iPhone and BlackBerry's upcoming Bold device (launch date TBA). Will more attractive data plans be available for owners/buyers of other smartphones as well? If I were to make an educated guess, I'd say that Rogers will offer a new plan for the iPhone and Bold, and eventually roll out new plans across the board upon monitoring customer response.

It's long been said that Canadians pay one of the highest rates for cellular services of all the developed countries. While U.S. carriers are launching unlimited data plans left, right, and centre, we have no such truly unlimited offering in Canada. I doubt we will see comparable plans to the U.S., any time soon, but hopefully we can take things one step at a time to create a more affordable wireless landscape that properly recognizes and tailors to the usage habits of mobile users today.

On that note, the Wireless Spectrum Auction, which is where telecom companies bid for the airwaves required for cellular services to operate, is still underway. Industry Canada has set aside a portion of Spectrum for a new entrant into the wireless space, which could potentially see another GSM/3G carrier enter the Canadian market. Mohamed reportedly refused to comment on the Auction.

Is the iPhone Coming to Canada or Not? - UPDATE!

I think I'm asked this question more than I'm asked how I'm doing today, or what I'd like to eat for lunch. OK, maybe I'm exaggerating a bit, but I do find myself in the middle of a discussion about the iPhone, and "hey, when the heck are we going to see it in Canada?" at least once every few days. For the most part, it's others asking me and not the other way around. I really could care less (yes, I'm serious). But clearly I'm the exception to the rule in this case. So when is the holy-grail-of-phones, the iPhone, coming to Canada?

As of late, there has been another swarm of rumours that Rogers (the only GSM provider in Canada) and Apple are working out the terms of a deal. The Toronto Star even claims that it could be here between May and July. Of course, the paper doesn't cite its "industry sources", and is quick to note that there have been no official confirmation from either side. I can't seem to get one either. A Rogers spokesperson simply told me that there "is nothing new to report on the iPhone." As Chandler from Friends would say, "Can you BE any more vague?"

I recall similar rumours having been stirred up a few months ago, so it could just be someone, somewhere trying to rock the boat again and get the Canucks all excited. My instinct tells me that we won't see the iPhone here until after the Advanced Wireless Spectrum Auction at the end of May, which is when carriers bid for additional spectrum to enhance their services, and new entrants can bid to start their own service. Why do I say this?

1) With Rogers being the only main GSM carrier, there's no rush to bring the iPhone here since no one else can swoop in and carry the phone under Rogers' nose!

2) Data plan pricing in Canada is significantly higher than in the U.S. To my knowledge, Rogers does not offer any unlimited data plans. This means that data-intensive users will either have to pay through the nose to use the iPhone, or continually monitor and limit their on-the-go usage so as not to incur hefty additional fees.

3) Apple likes to play to the tune of its own song, and I get the feeling that Rogers is the same way. The Toronto Star report claims that Apple takes a portion of customer's bills as part of its agreement with carriers. If this is indeed true, Rogers is probably not too keen on that idea. And trying to agree on a deal will be tough with two strong-headed, powerful forces, neither of which wants to let up on its terms.

But then again, the AWS Auction could very well be a reason why we might see the iPhone in Canada before the end of the year. Here's why:

1) There will almost certainly be a new wireless carrier in Canada after this Auction, who will very likely be ready to set up shop by 2009. (Industry Canada has decided to set up a portion of the spectrum exclusively for a new carrier). Knowing this, Rogers might bite the bullet to smooth out a deal with Apple before competition heats up.

2) Canadian born and bred Research in Motion (RIM), makers of the popular BlackBerry device, reportedly has some cool devices on the horizon, and the longer we become used to the BlackBerry model, the more residents will hold it as the standard. People will only wait so long before they upgrade to a new phone! And once it's done, they won't too easily fork over another $400 for an iPhone.

3) People are quite obviously (and vocally) becoming frustrated that it's been almost a year since the iPhone debuted in the U.S., and yet we still haven't seen it north of the border.

4) "Grey" market iPhones that have been unlocked and cracked are widely being used across Canada on the Rogers network already. The longer it takes for the device to arrive her legitimately, the more it will become available illegitimately (although I'd argue that a huge percentage of those who have it illegitimately would have obtained it that way to begin with).

So what's the bottom line? Hurry up already so I can go back to using my regular, Sony Ericsson camera phone in peace.

UPDATE: One day later, and we have our answer. Rogers finally issued a statement confirming that it WILL be bringing the iPhone to Canada "later this year". Read all about it on our sister Website at http://www.marketnews.ca/.

Will Canadians Ever see the iPhone?

Believe it or not, I'm not one of those people sitting on the edge of my seat, waiting for the Apple iPhone to arrive in Canada. But I do find the fact that it still isn't here a bit insulting. What's the deal?

When it comes to downloadable movies or TV shows through iTunes, I understand the reasons for the delay. Separate licensing agreements need to be worked out with Canadian broadcasters, CRTC regulations met, and so forth. But here, we're just talking about a phone. A mobile device just like any other mobile device that lets you make and receive phone calls, surf the web, compose e-mails, listen to music, and the like. Partner with a wireless carrier, and let's get going, already!

The iPhone has been available south of the border for about seven months, and yet we haven't even received a confirmed date as to when we'd see it here in Canada. Sure, the rumour mill has been going crazy as of late, with many reputable sources claiming that a Canadian launch announcement would be made during Apple's MacWorld conference earlier this week. Well, the conference has come and gone, and still no announcement.

Since the iPhone operates on the GSM standard, it's pretty safe to assume that it will be available through Rogers Wireless once it does arrive here. However, with the wireless spectrum set to open for auction for additional competition in May, is it possible that Apple is waiting to weigh its options and perhaps join with another partner? Or maybe the company is waiting for a next-generation model to finally let Canadians join in on the fun.

Whatever the reason for the delay, let's hurry it up. Or pretty soon, all the anxious Canadian mobile phone upgraders will get tired of waiting. The longer the iPhone takes to recognize the Canadian market, the more popular devices like the BlackBerry and HTC Touch will become.

TiVo is Here!

I've always wanted TiVo, and to be honest, I'm not quite sure why. I have a set-top box at home with a built-in PVR that lets me record TV programming on the fly, set future recordings, and pause, rewind, and fast forward live TV. But yet I've always wanted one of those "cool" TiVo's that they talk about on American TV all the time. Maybe it's sort of like the iPod vs. every other portable audio player on the market. They all essentially do the same thing: let you listen to digital tunes (and sometimes video) while on-the-go, or through a home audio system or separate speakers. But the iPod arguably does it best, with an easy-to-use, and quite sexy interface. Is that what TiVo promises?

To be honest, I don't know because I've never had the chance to play around with one. Well now, I just might. The company has confirmed its entrance into the Canadian market, and now I feel like an anxious Mac-addict that salivates every time he sees the iPhone commercial. We've waited so long for this device to come to Canada, I was beginning to think that Canadian broadcasters might have to bleep out the word "TiVo" every time it was mentioned and voice-over "PVR" just so we wouldn't feel left out.

In the U.S., "TiVo" has become much like the terms "Kleenex" for tissues and "Xerox" for photocopies, both of which are actually brand names, not products. The same thing happened with the Sony Walkman in the '80s, where virtually every portable player, whether made by Sony or not, was simply lumped into the "Walkman" category. When it comes to TiVo, I, in Canada, will say I missed Dexter last night, but no worries: IPVR'd it; while U.S. TV watchers are more likely to say I missed Dexter last night, but no worries, I TiVo'd it! Do you catch my drift?

Back to TiVo in Canada: although the box that will be available in early December ($199) does not support high-definition signals, up to 80-hours of standard definition content can still be recorded for later viewing. A reader to our news Website http://www.marketnews.ca/ commented that the move is "a day late and a dollar short", stating that, since so many people have already converted to HD, they won't bother with standard definition recording. Au contraire, I say. There are tons of consumers out there that haven't yet bought into the HD craze: in fact, the penetration in Canada is projected to be just about 48% by the end of this year, according to the CEMC. Even so, I'm an HD viewer, but I'd rather record a program in SD than not record it at all (of course I'd prefer HD if given the option).

A subscription will cost $12.95/mo. (in U.S. dollars, not that it makes much of a difference), or less depending on how many years you sign up. As for compatibility, a press release issued by TiVo says that it's "optimized for cable households". A TiVo spokesperson tells me that it will also be compatible with satellite boxes; and dial-up Internet connections (albeit with the turtle speeds that dial-up users have become accustom to).

Maybe it's marketing. Maybe it's U.S., pop culture TV. Maybe it's the same juice iPod-fanatics are drinking. But I'm happy to see Canada added to the TiVo culture. Better late than never, as they say. Next up: the iPhone. We're waiting....

And the No. 1 Invention of the Year is...

Time magazine has deemed Apple's iconic iPhone the "invention of the year". If this doesn't indicate the importance of design, functionality, and, most important, consumer attention, in creating products and services that will "make a difference," I don't know what does!

Some may not agree with this decision, however, especially since so many other influential inventions have come forth in 2007: products and technologies that help combat environmental damage, help prevent injuries or harm from natural disasters, and even advances in medical science. There have even been tons of technological innovations for the physically disabled, like more advanced electronic prosthetics for amputees, and even high-tech wheelchairs that help make life easier for their owners.

According to the Globe & Mail, the reason the iPhone was chosen was, not surprising, because of its look, functionality, and features. "The features themselves may not be groundbreaking," reads the article, "but the way in which Apple presents them is." I can't disagree with that: Apple certainly knows how to market products, and get people excited about them which, after all, is what technology should be about.

As for Time's list, I get the impression it's meant to be taking light-heartedly anyway: last year's top invention was online video sensation YouTube.

I look forward to reading the entire list, which is scheduled to appear in this Friday's issue.

What product/technology would you deem the top invention of 2007?