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New wireless companies abandon industry Association

Despite a mandate to represent all major companies in Canada's wireless industry, the three smaller ones say the CWTA has consistently failed to act on, and thwart, measures to increase the competitiveness of the industry.

Ottawa (16 April 2013) – Three of the newest wireless companies to enter the market have withdrawn from thE Canadian Wireless Telecommunications Association (CWTA). Wind Mobile, Public Mobile and Mobilicity made their announcement saying the Association favours the three larger incumbent providers: Bell, Rogers and TELUS.

Despite a mandate to represent all major companies in Canada's wireless industry, the three smaller ones say the CWTA has consistently failed to act on, and thwart, measures to increase the competitiveness of the industry.

"When we were first approached by the CWTA, we were promised clear and fair representation on issues of true industry alignment,” said Simon Lockie, chief regulatory officer for WIND Mobile. “But despite making our objections and concerns abundantly clear on numerous occasions, the CWTA has repeatedly failed to honour this promise, leaving us no alternative but to withdraw.”

“It has been evident for quite some time that, rather than being a true industry association which represents the views of all players regardless of size, the CWTA has instead largely been an advocate for Rogers, TELUS and Bell, and often directly contrary to the interests of new entrant wireless carriers” said Bob Boron, general counsel and senior vice-president for Public Mobile.

“We have spent the better part of three years repeatedly voicing our opposition to the CWTA on a wide range of matters to the point of issuing a press release in January 2011 that publically expressed our dissent on the CWTA’s position on wireless consumer protection,” said Gary Wong, director of legal affairs for Mobilicity.  “There seems to be a blatant disregard of the new entrants in favour of acting in the best interests of the Big Three carriers and it is unacceptable.”

Canada has some of the most expensive mobile costs in the world. Consumers have been asking for more diversity among the carriers to address these high costs and punitive agreement terms. Some had hoped with the emergence of these news carriers, service and payment plans would improve. The National Union of Public and General Employees (NUPGE) has exposed these issues in its publication The Real Cost of Communicating for its series, Smart Money: Consumer self-defense for times like these.

More information:

Smart Money: The real cost of communicating

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE