Debunking Rogers' LTE

Another day, another shorthanded spin on the truth.

Rogers, the source behind this week’s telecom misstatement, has gone one step further in the wily unveiling of their new Long Term Evolution (LTE) wireless network. Claiming that any government oversight in the up-coming 700MHz spectrum auction would “leave Canada behind the rest of the world”, Rogers has taken its anti-competitive lobby to the public.

"I want my LTE" is Rogers’ cringe-worthy attempt to drum up public support in their conquest of the 700MHz band, which was freed from private over-the-air broadcasters last month. Now vacant, the band, ideal for building penetration and rural service, is to set be auctioned off in 2012 and the ground rules surrounding the auction have yet to be determined.

Rogers, having had the country’s largest stake in wireless for the last five years, has particular interest in the auction's rules, and wants to secure as much of the 700MHz band as possible. Three years ago, the Advanced Wireless Services (AWS) auction saw 40MHz of spectrum reserved for new wireless players — Wind Mobile, Videotron, Mobilicity — and Rogers was kept from bidding on much of a band that would have been theirs in an unfettered auction. Fearful of a similar outcome, Rogers has stepped up their rhetoric surrounding the 700MHz auction in an effort to undercut potential competitors, and to coax Canadians into acting against their own best interest.

By asking Canadians to write their local Member of Parliament requesting that the auction be "open and free" Rogers is hoping to remove the only safeguard that enables new wireless providers to feasibly purchase parts of the spectrum. In a multibillion-dollar auction for a public resource, “open and free” does not translate into inclusive and fair, especially when Rogers and two other bidders collect 95% of the wireless industry’s revenue.

In all likelihood, Rogers' LTE network will suitably serve the needs of their subscribers on the 700MHz band even if a fraction of the spectrum is reserved for new wireless providers. The only real set back to setting aside spectrum is the increased cost of what remains available to the bloated big three.

So, if a large telecom incumbent asks you to stick your neck out in consideration of their wallet, please, just say no.

The slogan "I want my LTE" is likely influenced by the opening line of the Dire Straits classic Money for Nothing, but hums a tune closer to “Money for Practically Nothing”. As the base plan offers 1.5 gigabytes a month for $45, the highest plan offers 9 gigabytes a month for $90; naturally, further usage results in an extra charges of $10 per gig. To put things into perspective, Verizon offers their LTE service at 5 gigabytes for $50 a month — a mere five dollars more for nearly four times the bandwidth.

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