Follow Us:
Six things that need to happen in 2012 to be Canada’s best year ever in mobile
2011 was a fantastic year for mobile, but it was only a blip on the timeline compared to what 2012 holds in its potential. The Canadian cell phone market is poised to explode in smartphone usage, exceeding 50% as early as May or June, based on estimates from comScore. As we look on to what the next twelve months will bring, let’s focus on a few areas that are most important to Canadians’ mobile futures.
1) Three-year contracts have to go. We’ve been saying this for years: the 3-year contract is what keeps Canada in the mobile stone age. A lack of competition between the Big Three means that they can keep monthly rate plans absurdly high while charging very little, or what appears to be very little, for the handset itself. And over time Canadians have become complacent, used to paying $0 for a phone while forking over upwards of $60-100 every month for a plan, for three long years.
Our neighbours to the south have migrated to an industry-standard 2-year contract system, and are charged slightly more for the phone upfront. Many European nations have regulations preventing carriers from gouging customers. If the consumer doesn’t understand that the carrier is heavily subsiziding the cost of the handset to later accrue more revenue in the contract, they will continue blindly signing 3-year contracts here and complain about being overcharged. Instead, they need to view the alternatives.
When Mobilicity and WIND Mobile entered the market in 2010, it appeared that there would be a sea change in the way the Big Three did business. But instead they launched their own discount brands and kept prices high on the flagships. Progress has been made in certain areas, namely the elimination of the Early Cancellation Fee, reasonably-priced devices on 1- or 2-year terms, and, most importantly, the same plans are available to those who don’t sign a contract.
But the new entrants have not conquered the market to the extent they wanted: WIND has signed up 400,000 customers, and need a great year to hit its target of 1.5 million by the end of 2012. Mobilicity keeps lowering prices, but has had some big management shake-ups, and is in WIND’s acquisition sites. Public Mobile had a good year, sitting at over 150,000 subscribers, but all three companies are still extremely limited in where they operate and by the speeds of their aging 3G networks.
2) The 700mhz spectrum needs to be open to all, especially the new entrants. I’m not a soothsayer, but it’s fairly easy to predict that if spectrum is not put aside for the little guys like it was in 2008 for the AWS auction, it will be very difficult for the new entrants to continue competing. The 700Mhz spectrum is fundamental to the continued proliferation of high-speed, high-penetration LTE networks in Canada. The Big Three are taking the auction very seriously as they understand that the more bandwidth they have in the lower-end, the less they will need to rely on their limited AWS spectrum in areas of lower density.
If the new entrants ever want a chance at competing long-term, they need to secure enough 700Mhz spectrum to deploy Long-Term Evolution networks: they will not survive with it. The auction will determine who has enough bandwidth to deploy in rural areas, in high-density cities and, ultimately, who can fend off the competition. It’s not rocket science: whoever owns the most bandwidth will have the most robust network. The amount of capital available to them is lower than that of the Big Three due to foreign ownership restrictions, lack of public funding and a lower number of traded shares.
3) Consumers need to be better educated about their options. I still hear too many times, “What phone should I get, an iPhone or a Samsung?” Android has a branding problem that only Google can solve.
Too many OEMs taking bits and pieces of its open source OS and creating mulch; customers are overwhelmed by choice, and it’s not a good thing. Chris Ziegler of The Verge summed it up perfectly: Apple introduces one phone per year while HTC introduced over a dozen in 2011. It undermines the brand and makes customers regretful, anxious that their purchase will be obsoleted and unsupported in six months, a year.
Google needs to do two things: promise to support its vendors in updates, so customers are not left complaining endlessly about how and when they will receive an OTA update. Sure, this is a small, vocal minority, but their words have power. These people have convinced HTC and Sony Ericsson to develop bootloader unlocking services and Motorola to discontinue its terrible MOTOBLUR skin. But in a bid to differentiate themselves, these same companies are moving further into proprietary territory, alienating the very Android brand on which they are staking their future.
Google has a very different role to play behind the scenes than the one we know of. They are constantly talking to manufacturers and carriers, but not to the public. What I hear from that same public is a discontent with carrier bloatware, OEM “value-adds” and slow updates. Especially slow updates. That the first devices to get Android 4.0 after the Nexus S and Galaxy Nexus may be in Q2 2012 is ridiculous. Microsoft managed to deploy Mango through multiple manufacturers and myriad carriers without issue, by asserting control over the update process. The “overlay” problem is not insurmountable, but Google needs to set guidelines. This may never happen, but it needs to.
The Canadian market is being flooded with low-, mid- and high-end Android phones. It’s great to see the Galaxy Nexus featured so prominently in print ads, on TV and even at the movies: proof enough that Google’s name, along with the Android brand, is enough of a sell for potential customers. But it’s the superior experience that needs to be emphasized: your Nexus phone can do everything another high-end Android could and more, with the added bonus of direct support from the company who designed it in the first place.
4) RIM needs to get its stuff together. Canada’s once-darling has been knocked down more times than we can count, as evinced in their sad stock price. But where some see defeat, I can’t help but think that 2012 is going to be the beginning of a resurgence for the BlackBerry brand. It may not happen until the end of the calendar year, but RIM has a couple choices to make. They’ve already pledged to redouble their advertising efforts for the current BlackBerry 7 lineup in North America (and if you’ve watched any televised sports game in the past couple weeks, you’ll see evidence of that) but it’s clear that the United States is a lost cause.
Instead, they need to focus on markets they can win. RIM still owns Canada, or at least they did in September 2011, with 36% of total smartphone market share. I see BlackBerry 7 devices everywhere, often more so than I do iPhones. Canadians love their BlackBerry’s, and it is with this in mind that I suggest RIM work really hard on disappearing from the US market only to emerge again with a killer BlackBerry 10 device when it’s ready. When it has everything a smartphone user would want, including a wide array of quality apps to go along with existing BIS and BES services we expect from the company. BBM is a strong incentive to keep your customers around. Use it. When BlackBerry 10 devices emerge, offer loyal customers heavily discounted upgrades. Make it irresistible for people not to upgrade.
Moreover, take the advice of thousands of stockholders and analysts: get rid of the co-CEO hierarchy. Don’t sell off parts of the company you’ll never be able to get back. There is a huge Apple circa 1997 moment in here somewhere, but RIM is traditionally clumsy at taking chances.
If our darling of Waterloo can come through the next challenging quarter or two with a small profit, it will be enough momentum to sustain them going into 2013. It’s not a lot, but it’s all they have. In the meantime, stop making mistakes, getting into fights and buckle down on improving your products. We’ll wait.
5) Apple needs a hit. “What?” you say! The iPhone 4S is the biggest phone in the world; the iPad 2 ostensibly the only tablet on the market. And yet. And yet since Steve Jobs’ death in October the company has been a constant study. The first sign that the status quo has been disrupted, and that Tim Cook isn’t up to the task of his world-famous predecessor, and there will be disquiet amongst the ranks. Like Pixar, Apple has an almost-flawless record, which means, like the pessimists we are, everyone is waiting for them to screw up.
Going forward into 2012 with a continued swath of innovating and successful product launches will reassure the world that the management team at Apple is still strong, and that Steve Jobs’ influence is intact within the walls of Cupertino.
6) Devices need to last longer. If there is one insidious trend inside the smartphone market it is the quickening daily demise of our favourite toys. Combined with the fact that we are constantly using them, inserting and removing from our pockets every few minutes, they are getting more power-hungry and less energy efficient. Well, perhaps more energy efficient with the types of batteries, but less so in the trend towards thinness and more powerful internal processors. While the next-generation 32nm SoCs like Qualcomm’s S4 line, as well as the improved power mechanics inside NVIDIA’s Tegra 3, should improve battery life in some devices, in general we are getting used to our devices lasting for shorter periods.
Power-hungry LTE chips and desktop-calibre graphics have all led to us expecting to recharge our devices not only every night, but for many of us, by mid-afternoon. Even Apple’s iPhone 4S has been plagued with reports of poor battery life. If vendors can implement power-saving features into the software, combine LTE into existing baseband chips and scale down the CPU when not in use, 2012 could be the year our smartphones start lasting longer, for once.
Discussion
39 comments for “Six things that need to happen in 2012 to be Canada’s best year ever in mobile”
Post a comment
- CES 2012
- Mobile News
- Airtel Wireless
- Bell Mobility News
- Chatr
- Clearnet
- Eastlink
- Fido News
- Globalive News
- Koodo Mobile News
- Mobilicity
- MTS
- NorthernTel
- PC Mobile News
- Petro-Canada Mobility
- Primus Wireless News
- Public Mobile
- Rogers Wireless News
- SaskTel News
- Shaw
- Solo Mobile News
- Speak Out Wireless News
- tbaytel
- Telus Mobility News
- Vidéotron News
- Virgin Mobile News
- WIND Mobile
- Reviews – Carrier
- Reviews – Manufacturer
- Various News
Hidden due to low comment rating. Click here to see.
Like or Dislike:
7 
94
Yep, you’re the first dyck.
Like or Dislike:
54 
9
Hidden due to low comment rating. Click here to see.
Like or Dislike:
21 
81
thebestthing,
if you’re Canadian, you should show a Canadian company more support, being a major contender in the mobile industry is a huge feat. If you’re not; keep your mouth shut, there are many American companies who have s*** the bed, too.
Like or Dislike:
31 
8
We need more Windows Phones, can’t wait for next week about the Nokia handsets, but I’d also would like to see what they have for Canada.
Like or Dislike:
36 
26
That was my first thought after I read the article too. I would rate the need to show more support for Windows Phones 2nd behind getting rid of 3 year contracts. With Mango Windows Phone is best mobile OS there is (worse name notwithdstanding) and the carriers have to step up. AT&T has way better choice than all of Canada combined.
At the very least give me a cheaper plan if I choose to buy my phone elsewhere.
Like or Dislike:
15 
7
How about some support here in Canada for Windows Phone? All the reviews seem to say it’s a) more cohesive than Android and b) MUCH better at rolling out updates and keeping handsets current. But here in Canada there are just two devices out of the 13-15 currently available worldwide.
Like or Dislike:
33 
12
Hidden due to low comment rating. Click here to see.
Like or Dislike:
5 
15
Haha yep
Like or Dislike:
2 
2
With regards to #3, the confusion lies in all the tech specs. If Mr. Phonegeek can’t figure out why Device A is better than Device B because it has single/duo/quad-core CPU, type-X GPU, 256/512/1024/2048MB RAM, 0-64GB flash, 1000-9000 mAh battery, etc, etc, how do you expect Joe Sixpack to know which phone is better?
Perhaps adopting Intel’s star rating or simplified CPU (ix-????) system would be good for android. There’s such a huge range of hardware out there that it’s mind boggling. Apple has 3: outdated (3GS, $0), old (4, $49) or new (4S, $99+). Android needs to simplify to nearly this level to make it easy for the non-phonegeek crowd.
Like or Dislike:
11 
2
“700mhz spectrum needs to be open to all” isn’t that another way to say goodbye to the new entrants? Robelus would throw every dime they had at it, only to make us pay for it later.
Like or Dislike:
23 
8
Did you read the whole item? I believe that he is advocating that the auction be structured to allow the new entrants to get some spectrum – so that the new entrants aren’t squeezed out by the incumbents superior financial resources.
(Personally, I think that another item on the list should have been – Mobilicity and WIND must merge so they can stop competing with each other and start competing with the incumbents.)
Like or Dislike:
8 
2
Well, I’m glad to see Daniel read my comment, and then rewrote that part of the article…..
Like or Dislike:
0 
0
Daniel……you should have posted here that you did rewrite that part that I commented on, for clarity. As you can see, just rewriting it, without acknowledging it, makes my first post seem to “Tom” that I wasn’t reading it right, along with the others that “thumb downed” it. When I actually helped you…
Like or Dislike:
1 
0
I would hope you meant “700mhz spectrum needs to be provisioned to ALL carriers”
Like or Dislike:
9 
2
#7 actual fast updates for phones, and google actually releasing Ice cream sandwich for samsung nexus s.
Like or Dislike:
9 
2
I like #1 ALOT
Like or Dislike:
15 
2
Hidden due to low comment rating. Click here to see.
Like or Dislike:
6 
28
@Matt — You don’t get how this is an issue for people? Seriously?!? You don’t see that carriers vary price between 2 and 3 year terms substantially, in a way to basically force consumers into 3 year terms to get a deal?
This is common in the Canadian market:
$649.99 full price / $599.99 1yr / $529.99 2yr / $149.99 3yr
Seriously, what the hell is that? Do you think that is fair Matt? You’re saving $50 by signing for a year, another $70 for adding an additional year, and then $380 more if you sign for three whole years.
Like or Dislike:
39 
2
You’re all clueless! I hope you realize that all these “new entrants merge they will become the big 4 right? and you people winning about 3 year contracts but you want a free phone? Ok I want a BMW for a Honda civic price. you guys have no idea about marketing landscape of wireless your fickle absurd opinions are the reason these new companies have customers, hope you know that there are over 35 carriers in Canada average to 1.02 million per carrier ratio vs. population when the US has 150 carriers or 2.01 million which means the percentages by pop is greater in Canada IE greater competition by weighted average. Bring on the keyboard warriors who think they know everything .
Like or Dislike:
0 
0
That’s why this country is still the worst for wireless. We still have customers seeing no issues with 3 year term.
Like or Dislike:
29 
4
Hidden due to low comment rating. Click here to see.
Like or Dislike:
3 
16
“$199 for a HTC Sensation on a 2 year contract on Tmobile. Versus the 24 dollars it costs on a 3 year plan on Bell. You want people to pay more?!”
Yes I do. $200 more upfront, but you avoid paying $60/month for an additional 12 months, which is $720.
Like or Dislike:
17 
2
Hidden due to low comment rating. Click here to see.
Like or Dislike:
7 
39
Yup Milpool, you are right. The big 3 need to be taught a lesson. I started that lesson when I bought a Bell Nexus on a 30 day contract. Next step is when my Telus contract is up, bye bye, Hello Wind.
Like or Dislike:
11 
1
Things to happen in 2012 #1: LOWER MONTHLY PLANS
Strange how you omitted that one. Drop 3 year plans? Canada still remains one of the highest charged countries in the world for voice, data and combo packages.
Sure we can allow more competition and hope that prices come down, but then again we can just as easy state to make 2012 the most successful year for mobile in Canada, why not just cut to chase and say – lower the prices!
Yes, competition is brewing. The Winds, Mobilicity, and Koodoos are helping but if you want a premium phone, either you have to go with one of the big 3 and pay and arm and leg or pay $400+ up front and hope that one of these smaller carriers may have it and may have a suitable plan and may have suitable coverage and may… too many mays.
To have a decent phone and decent plan starts at $50 per month, not including taxes, service fees, voice and or data overages and “regulatory fees”, etc. Seriously? This is progress? A family plan that costs over $100 per month? And consumers are paying for this?
Changed my mind. Disregard lowering pricing. Common sense. Pass that around for everyone. Paying exorbitant sums because you think you have to without shopping around is your fault. Common sense for buyers, new and old and then maybe, we will all have a good year (not withstanding your other suggestions).
Like or Dislike:
9 
1
Decent big three like phones, tab or 3 year system, all that on koodoo- like plans – Virgin Mobile!!
Like or Dislike:
3 
0
Interesting article, good read.
Like or Dislike:
2 
0
The 2 year contract is usually about $50 cheaper than the no-contract price, which isn’t even one monthly phone bill cheaper for people at Robelus.
Often, buying it outright from Mobi or Wind IS CHEAPER THAN THE 2-YEAR CONTRACT.
I bought an x10 from Mobi for $275 after MIR or $499 without the MIR. At the time, Rogers was selling the x10 for $599 outright, and $499 on a 2 year.
They’re gouging you regardless on whether you sign a contract or not.
Like or Dislike:
10 
1
@Milhouse
So what, those $60 a month payments would just stop after the 2 years? You pay the same, whether you’re on contract or not.
Like or Dislike:
8 
5
But you have more options. After the 2 years are up, you can pursue other providers for better deals, consider a switch to prepaid if you prefer, and much more.
The big 3 even have heavy penalties if you drop below X dollars per month when you have a data device. I believe its currently $50. So if financially you want to make a change to something smaller, you’re boned with the big 3.
Like or Dislike:
3 
2
I love how WP7 has replaced Android as the tech/hipster OS of choice.
“Nokia’s are the best!”
“My Motorola StarTAC is way smaller than your Nokia”
“Motorola? have you seen the touchscreen on my iPhone?”
“Palm is totally better than the iPhone”
“I liked Android before it was mainstream”
“Seriously guys, WP7 is the best OS, but you’ve probably never heard of it. Damn conformist carriers don’t have enough WP7 Devices”
Like or Dislike:
12 
4
I would have added better data plans across the board. We are quickly moving from Voice/Texting to data based activities on our smart phones. The new entrants have great prices but that a small part of the population. And unlimited plan with any of the big 3 would trump any of the above listed items, and even with caps, 5 gig is a bit on the small side… we can’t really let lose when off the wifi.
Like or Dislike:
2 
1
Things that need to happend to mobilesyrup for 2012 to be Canada’s best year ever in mobile:
- You complain about three year contracts, but it’s all about the plans. There’s a move towards being able to cancel the long term contract and mostly just paying the remaining months’ phone subsidy (already exists in Quebec). The plans and deals are important; and mobilesyrup is big enough that by paying more attention to the pohne plans, it could actually influence the market to some extent: so, talk less about the devices, talk more about plans!
- Mobilesyrup sometimes seems a bit Toronto-centric. For example there are many posts on wind/mobilicity, but almost none about Videotron (which admittedly, isn’t that good, anyway). Share more love with all of Canada.
Like or Dislike:
5 
0
Very well written. I couldn’t agree more with all your points. Especially #1. No more high price 3 Year contracts. I don’t mind paying a little more for the hardware if i get a lower monthly cost.
Like or Dislike:
0 
0
once we’ve made ground, THEN we can complain about the monthly plan price gouging
Like or Dislike:
0 
0
Canada needs to get out of the Stone Age of communications:
1) No charges for incoming calls and texts.$0.0. No matter which plan you are on
2) Latest Models to be released as early as the rest of the world
3)Bell and Rogers Cell phone divisions to be broken up the same way AT&T and IBM was dealt with. They have become too big to handle
Like or Dislike:
1 
0
I agree that we need more love for Windows Phone here in Canada. At least mention it in the year-end roundup! I’m using a very nice Android phone, but miss my LG Optimus 7 dearly (I needed 32GB and a better camera). Second, we should get rid of long distance once and for all. The rates (with Telus at least) have come down substantially, and I know there are some carriers that don’t charge it, but it’s really not necessary these days when everything is data-centric (always local).
Like or Dislike:
2 
0
another thing to add to #1 is to “not force additions to the plan”. for most of the subsidized phones there’s a small print saying something like “when you sign up for a minimum of $60 plan”.
Like or Dislike:
1 
0