Wireless Spectrum Auction Winding Down

The Canadian Advanced Wireless Spectrum Auction, which commenced on May 27, is finally winding down. In its final stages, there's no surprise that current national providers Rogers, Telus, and Bell lead the bidding. But the most enticing part of the auction is the companies that come next in line; one or more of which will become Canada's newest wireless carrier.

This year, Industry Canada set aside a portion of spectrum, which consists of the wireless airwaves required for cellular services to operate, exclusively for new carriers to bid on. This means that there's a guarantee someone new will enter the playing field. In a best case scenario for fostering new competition (and potentially resulting in improved service plan rates for consumers), we'd see a new national carrier. While Bell and Telus compete with one another in the CDMA space (along with Virgin Mobile, which piggybacks on the Bell network and Koodo Mobile, owned by Telus).,Rogers currently has no competitor in the GSM space except it's own sub-brand, Fido.

At last check, a company believed to be Quebec-based Videotron ranked fourth in the bidding process, followed by Toronto, ON-based Globalive Communications Corp., which owns the Yak Communications brand, Shaw Communications, and DAVE Wireless (Data & Audio-Visual Enterprises Wireless), a venture that includes John Bitove, formerly of XM Canada and Vulcan Capital, an organization founded by Paul G. Allen, co-founder of Microsoft.

At the onset of the auction, Globalive announced its intentions to become Canada's "fourth national wireless carrier". The company backed up that claim with a $235 million dollar deposit into the auction. Ranking right behind Videotron in the current status, Globalive has continued to show that the company means business, and indeed looks like a likely candidate to enter the market.

While the auction is set to close shortly, it's important to note that changes in the Canadian wireless landscape won't be as quick-to-action as the auction itself has been. It will likely be a year (or even two!) before a new national carrier (and/or regional ones) set up shop. What we can look forward to in the immediate future, however, is existing carriers re-thinking their current strategies to gear up for the inevitable competition. We've already seen evidence of this with both Bell and Telus recently emphasizing unlimited data plan offerings; an area where Canada has long been said to have fallen behind in comparison to other developed countries.

Meanwhile, Rogers Wireless has been taking a lot of flak because of perceived high data rates and failure to offer unlimited data plans. The spotlight has been shone even more on the GSM carrier as of late because of the upcoming release of the widely popular 3G iPhone. Any customer that wants to buy the highly coveted device will also have to sign on for a three-year term. While this has peeved many consumers to the point of a growing and widely publicized online petition, it just goes to show that Rogers is certainly thinking ahead. If the carrier ensures that customers are secured with its services for the next few years despite who or what might show its face in Canada in the next year or two, then it can buy a lot of time to examine possible plan options going forward. Stay tuned.

Koodo is the New Mentos

Do you remember those old, really annoying Mentos commercials where a guy would pop a Mentos into his mouth and somehow, problems would magically disappear and he'd turn into MacGyver? Everyone hated them, yet everyone remembers them, and constantly talked about them at the time. Well, Koodo Mobile is like the new Mentos: I can't watch TV, walk downtown T.O., or scoot through a shopping mall without seeing a retro 80s fitness gal in tights, or a weird, mustached gym teacher-looking dude plastered everywhere. What gives?

Koodo Mobile appears to be marketing itself in much the same way Virgin Mobile does: as an "alternative" concept to pesky mobile phone contracts and hefty bills. Really, though, you're still dealing with one of the big threes. In actuality, Kodoo is owned by Telus, and operates on the carrier's CDMA network. I won't get into specifics of the service, but there are a number of pre-packaged plans, as well as a la carte items, that are pretty much comparable to other service offerings (see http://www.koodomobile.com/ for more information). The gist is that Koodo focuses on "basic" users that just want to talk and text with their phones, and not really do much else.

So how does Koodo differentiate itself from Telus, and the other carriers? Via something called a Koodo Tab, which lets customers charge up to $150 toward a mobile phone to their "tab", to be paid out in increments of 10% of the balance each month. Once the "tab" is cleared, points will continue to accumulate on a new tab that can be used toward a new phone once you're ready to upgrade. When you think about it, although the service doesn't include a locked in contract, it is similar to signing up for one and getting the phone for free. Let's work out the math: if your phone bill is $40.mo., this means $4 is paid toward your mobile phone each month. It'll take, you guessed it, just over three years to recoup the $150 cost for the phone. Unless, of course, you go over your monthly minutes, in which case you'll pay it off faster.

Koodo doesn't place its emphasis on getting rid of hidden fees and cumbersome contracts like Virgin Mobile does (although the latter company recently introduced hidden fee-free contracts). Koodo takes its primary focus right to cutting down on costly bills; hence the whole "fat-free" fitness theme. But when I really examine the details, it isn't that much cheaper than other carriers.

For example, for $40, you can get unlimited nationwide talk and messaging to up to 5 numbers, 100 anytime minutes, unlimited text messages, and free evenings and weekends after 7 p.m., plus the regular stuff, like voice mail and caller ID. One neat thing is the elimination of that pesky System Access Fee, and the addition of per-second billing (instead of rounding off to the nearest minute). But in digging deeper, I did find some hidden stipulations. For example, the five numbers do not apply to customers in Manitoba and Saskatchewan, and the so-called "unlimited" local calling from 7 p.m. starts on the Monday and only goes until 8 a.m. on the Thursday, recommencing at 7 p.m. on Friday. What happened to Thursday and Friday during the day? Also "detailed billing" is oddly listed as an a la carte option for an extra $3/mo. So what exactly does "regular" billing entail?

Nevertheless, Koodo Mobile sure is making a splash here in Canada. Fat-free mobile? Not quite yet. Some hidden fees need to be trimmed down, and some weight taken off the costs before we get there.

CTIA WIRELESS: "Cool" Stuff

Regardless of the trade show, you'll always find "cool stuff" that makes you say "now that's a great idea!" CTIA WIRELESS was no exception when it came to cool factor.

First, Yahoo! is launching its new onesearch 2.0 for mobile phones that promises to offer easier search, better results, and voice integration. The latter point is the most interesting, in my view. With this feature, you can not only type in your desired search words, but also dictate them orally. Say the requested search term, like "restaurants, las vegas" or "ctia show", and Yahoo! will search its server, while also sending back a confirmation note to double check that it heard you correctly. If you want to try it out, the service is already available in trial for owners of select Blackberry devices at www.m.yahoo.com/voice. I haven't been able to try it out just yet (since I don't own a Blackberry), but it'll be interesting to hear some feedback on how well it works.

Did you ever think a mobile phone could be used as a medical alert device? If not, you'd be surprised to hear about MyRapidMD, which provides an application that can be sent to your mobile phone, and includes all of your pertinent medical information in case of an emergency, like blood type, known allergies, and serious medical conditions. The company is working with mobile phone carriers and manufacturers, as well as first responders, in an effort to deploy the technology globally. Here's how it works: sign up for an account online: a lifetime subscription is US$19.95 and there's a US$5.95 renewal fee every year. Enter all of your details, and upload a recent photo. Then enter your mobile phone number, and send to any Java or Web-enabled phone. The information arrives in the form of a Web link as a text message: click the link, download the app, and away you go! It will either appear as an icon right on the home screen (it looks like a little asterisk); or may end up in the "games and applications" folder, depending on the particular phone. In the event of an emergency, first responders can find this information on your phone and use it to both identify and treat you accordingly. How will they know that you're a subscriber? When you sign up, you receive a slew of items, including a sticker that can be adhered to the back of your phone, a wallet card, keychain, car window sticker, and 'fridge magnet. If you're weary about leaving your private information "out in the open", so to speak, you can set the details to "private", at which point a first responder will be given a 1-800 phone number to call. Once he provides your subscriber number to the call centre rep, he'll gain access to the pertinent information. If this system saves even one life, it makes sense.

Another neat product that caught my eye is the backup pal (US$49.99), a little circular doo-hickey that, as the company's signgage indicated, is so simple, "even a monkey can use it". What does it do? Backs up up to 4,000 contacts from a mobile phone so that, if you switch phones, or your mobile gets lost or stolen, you can easily import the information back into a new phone. The device comes with six adapters, including ones for Samsung, Nokia, and Motorola phones, as well as a mini USB connector, which lets you connect other popular handsets, like the BlackBerry. All you need to do is connect your phone, hit the large "back-up" button, and wait. When you get a new phone, connect it and hit "restore to phone" to upload all the contacts from the device. backup pal is powered by 3 "AAA" batteries, and uses flash memory so that the information always remains safely stored, even when the batteries have depleted. $50 for peace of mind makes sense!

Finally, I was strangely drawn to a display called PetsMobility, which claims to be the first cell phone for your dog. Huh? What it really is is a waterproof GPS collar that uses the CDMA network to provide tracking information on your pet's whereabouts. Using computer software, you can establish a "geo-fence", i.e. a perimeter in which your beloved creature is not permitted to go beyond. If it does, you can be notified via your mobile phone, then use the PawTrax tracking system to find the animal. As strange as this device sounds, I can somehow manage it flying off store shelves.

As for the image above, it really has nothing to do with anything written here, but I had to give the company kudos for finding a unique way to get people's attention at the show. Yeehaw for wireless!