The “wireless war” between the federal government and telecommunication leaders, regrettably, has degenerated into name-calling. That’s not a good thing. There’s too much agitation in the conversation.
In my long business life, I’ve never known sabre-rattling and stone-throwing to be successful in resolving differences and coming to reasonable solutions.
Because the telecom battle has been in the news so much, I’m being asked many questions these days. Some of them, and my answers and views, will follow.
Between 1988 and 2003, as a board member of B.C. Tel and Telus, I experienced what was then the most challenging and changing times in the history of the industry. In my early years as a board member, management reported the number of telephones that had been installed in the previous months. That was relevant then.
After a lifetime of the phone company operating as a monopoly, regulations changed and competition was introduced. That was good news for Canadians.
New companies emerged, though many failed because they couldn’t compete or had bet on the wrong horse (e.g. “long distance”).
Fortunately, Telus saw cellular and the Internet as the future. We didn’t fully understand the importance of what turned out to be a life-saving decision. We began to pour money into the “new” technologies.
From a small regional telephone company, Telus fought its way onto the national scene, giving Canadians more choice and becoming what is acknowledged globally as one of the world’s best services.
In the past 10 years, the telecom industry has mushroomed. Canadian telecommunications companies over the past 25 years have built expensive, massive infrastructures from coast to coast. In the past 10 years alone, Telus has invested $100 billion in developing its own network.
• Will the new proposed U.S competitor simply piggy-back on the existing Canadian-financed system?
Yes. Is that fair?
• Does the federal government underwrite the industry?
No. Canadian consumers do, through their purchases of telecom services.
• Who owns Telus?
Canadian shareholders by the millions; your pension funds, mutual funds, investment portfolios and hundreds of thousands of ordinary Canadians are shareholders. So are Telus staff members, who own one-seventh of the company.
• Does Telus profit stay in Canada?
Absolutely. Hundreds of millions of dollars every year. Telus is a big taxpayer, too.
• Are we paying more for our telecom services than Americans?
Recent comparisons of like services above and below the border say we are not.
Telus prices, for instance, match Verizon’s. There’s little or no reason to believe Verizon will change its pricing practices and become a low-price provider in Canada. My own experiences with Verizon have been good ones. It would be tough competition in the Canadian markets it chooses to service, which it says are Toronto and Montreal. The good news is that Canadian prices across the country are already on the way down by some 18 per cent.
• Why is the January spectrum auction so important?
Canadians have a voracious appetite when it comes to wireless use. The future need for more spectrum to meet the next generation of demand for faster access from a wider range of devices is fully understood by industry experts. Canadian companies want the same opportunity as Verizon to bid on an equal basis.
• Are Canadian telecoms good corporate citizens?
Absolutely. Telus, for instance, in 2011 was chosen as the “most philanthropic corporation in the world.” That’s high praise.
In my role as chairman of the Telus Victoria Community Board the past six years, we’ve had the opportunity to spearhead the Jeneece Place project with a $1-million contribution and Victoria’s David Foster Foundation that serves transplant children and their families with a similar $1-million donation.
Our board of 15 prominent Victoria citizens has supported 168 charitable programs for children and youth in our region to the tune of $2 million.
• Should we be proud and supportive of our Canadian telecommunications companies?
Yes, we have every reason to be proud. It’s recognized worldwide for its quality. Canada does not have a second-class telecommunications industry. It’s not perfect, but who is?
The government should:
• Agree to fair access to essential spectrum for existing Canadian telecoms.
• Agree to no special deals for foreign corporations.
• Agree to let the marketplace prevail.
• Agree to enter into discussions with Canadian telcos in good faith, with the goal of creating fair opportunities for our invaluable industry.
That makes good common sense to me.
Mel Cooper is former owner of C-FAX Radio and Seacoast Communications Group. A recipient of the Order of Canada and Order of B.C., he is chairman of the Telus Victoria Community Board and was a corporate board member of B.C. Tel and Telus for 15 years.
