without a consumer’s consent. The Commission says capping these charges is the best way to ad-dress the problem of “bill shock” that consumers face when their mobile phone bill ends up being significantly higher than their normal monthly bill.

Consumers will also be able to cancel their contracts at any time by notifying their service pro-vider, with the cancellation taking effect that same day. Customers who cancel a contract before the

SUMMIT DAILYTuesday June 4, 2013

The Canadian Telecom Summit Daily News is produced for the delegates by www.cartt.ca

Wireless Code: Bill shock, 3-year contracts, gone

G ATINEAU – The CRTC’s new Wireless Code issued today al-

lows Canadian consumers to can-cel their mobile contracts after two years even if they have signed on for a longer term, and also places caps on data overage and roaming charges, among numer-ous other things.

The code, which will apply to new wireless contracts begin-ning December 2, 2013, requires wireless service providers to cap data overage charges at $50 for inside Canada and international roaming charges at $100 within a single monthly billing cycle. Ad-ditional charges cannot be added

end of the commitment period cannot be charged any penalty other than an established, clear, early cancellation fee.

For wireless contracts that in-clude a subsidized smartphone, the code states that the early cancellation fee must not exceed

the value of the device subsidy, and must be reduced by an equal amount each month for a maxi-mum of 24 months until that amount falls to $0. Many carriers already offer already offer cus-tomers some of the stipulations set out in the new code, such as caps on international data roam-ing and allow for phone unlock-ing.

“We have been making a genu-ine effort over the past number of years to listen to our custom-ers and respond with significant improvements. As a result, we already do a lot of what is in the new code,” said Ted Woodhead, Telus senior vice-president of fed-eral government and regulatory affairs. “Telus believes that many aspects of this new code will give Canadians a strong and friendly set of protections.”

DAY TWO

Tuesday June 4, 2013 DAY TWO

Schedule of Events

7 a.m. – Registration and Breakfast

8:30 – Opening Remarks – Hall C

8:45 – KeynoteJoe Natale, TELUS

9:30 – KeynoteTony Ciciretto, Cogeco Data Services

10:00 – KeynoteJean-Pierre Blais, CRTC

10:30 – Coffee

11-12:30 – Regulatory Blockbuster

Edward Antecol, VP regulatory affairs and carrier services Globalive/Wind Mobile; Mirko Bibic, EVP, chief legal and regulatory officer, Bell Canada; Ken Engelhart, SVP regulatory and chief privacy officer, Rogers Communications; John Lawford, executive director and gen-eral counsel, Public Interest Advocacy Centre; Chris Peirce, chief cor-porate officer, MTS Allstream. Moderator: Greg O’Brien, editor and publisher, Cartt.ca.

T u E S day J u n E 4 , 2 0 13

12:30 – Luncheon KeynoteAnthony Lacavera, Wind Mobile

2:15 – Plenary - HALL C

The Customers Speak OutChristopher Henry, former CIO, Grant Thornton; John Lawford, ED and general counsel, PIAC; Howard Maker, commissioner and CEO, Commissioner for Complaints for Telecommunications Services; Barbara Motzney, chief consumer officer, CRTC; Dean Smalley, VP and co-owner, A&B Courier. Moderator: Roberta Fox, chairman and chief innovation officer, Fox Group.

3:15 – Coffee

3:45 – Plenary

The Revolution of TV: Content Anywhere and Anyhow

David Fuller, chief marketing officer, Telus; Michael Hennessy, president and CEO, Canadian Media Production Association; Ken Morse, CTO, advanced technologies, Cisco; Wayne Purboo, CEO and co-founder, QuickPlay Media; David Purdy, SVP content, Rogers Communications. Moderator: Peter Miller, chair, Interactive Ontario.

The code does not impose an outright ban on three-year con-tracts, which incumbent compa-nies defended before the Com-mission at its hearing in February as a pro-consumer option. In-stead, the CRTC has taken what Simon Lockie, chief regulatory officer of Wind Mobile, calls a “sophisticated and subtle” ap-proach to the situation by not placing any restrictions on the ways in which both incumbents and new entrants can attract or motivate customers to join them.

“You don’t want to ban those kinds of things outright because they’re pro-consumer. What you want to do is suggest that you can’t use that as an artificial re-tention tool beyond two years,” Lockie told Cartt.ca. “These three-year contracts were used by the incumbents as an anti-competitive retention tool and we think that capping cancellation fees at 24 months is a major posi-tive for competition.”

Moving to two-year contracts may sound like good news for consumers, but carriers like Rog-ers and the CWTA maintain that the reality will instead lead to lower devices subsidies and con-sumers paying higher upfront purchase prices for their smart-

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“We think that capping cancellation fees at 24 months is a major positive for the competition.”

Simon Lockie, Wind Mobile

continues on page 3

Industry Minister to make announcement at 8:00 a.m.

L ate Monday the media were provided with the following announcement

from the office of Industry Minister Christian Paradis: “The Honourable Christian Paradis, Minister of Industry, will make an important an-nouncement regarding Cana-da’s wireless telecommunica-tions sector.”

It will happen at 8 a.m. this

morning at the Minister’s Ot-tawa office. Please go online and check out Cartt.ca then to see just what it that announce-ment will be. Will it be a state-ment on spectrum transfer? A 700 MHz auction delay? We’ll have to wait and see. The Min-ister had been scheduled to speak at the Canadian Telecom Summit tomorrow, but he has cancelled that appearance.

Are you missing out on what everyone’s talking about? These and hundres more stories like it can be found on Cartt.ca, the Canadian industry’s home page.

created a great deal of market dis-ruption, “the real disruption will come with connected devices and wearable devices,” Maynard said. For example, he noted that M2M could “change the way we drive,” produce electricity and deliver health care.

The big obstacle holding back the device-to-device communica-tions market right now, Maynard said, is the lack of a real business model for such services. But he expects that issue to be overcome because of the momentum be-hind it. “It’s better to be driving the bulldozer than to be part of the proposed roadway,” he said.

While all four panelists ex-tolled the virtues of the mobility movement, they admitted under questioning that it has its down-side as well. For instance, they said, the constant beeping, buzz-ing and ringing of mobile devices and the multitasking required to manage them is already taking its toll on peoples’ attention spans

“It’s certainly made my kids a lot less patient than I would like them to be,” cracked Ken Price, DM of mobile communications for Samsung. He questioned whether rules meant to limit to the use of mobile devices in cor-porate meetings and other set-tings will prove to be very effec-tive in the end.

— Staff

T ORONTO — Expect to see continued growth in mobile video, commerce

and other wireless apps over the next few years, as well as a surge in new, smart, web-connected de-vices.

Those were some of the key points made by four industry experts at the Canadian Telecom Summit here on Monday morn-ing. Speaking on a panel devoted to mobile devices, screens and apps, the four executives agreed that the mobile movement will continue to extend into new areas, foreseen and unforseen, as con-sumer demand for such devices keeps growing, wireless devices get even more sophisticated and even such traditional appliances as refrigerators, thermostats and washing machines become smart, interconnected devices.

Nauby Jacob, vice president of products, services and content for Bell Mobility, said Bell’s mobile TV product is prompting more customers to use mobile video and driving mobile video con-sumption among existing users. He noted that Bell’s mobile TV subscribers now watch an average of more than one hour of video content on their wireless devices each day, up from 25 minutes a day four years ago.

“It’s really an exciting business for us,” Jacob said. During the

CTS 2013: More devices + more demand = more stress

Toronto Maple Leafs’ climactic seventh game against the Boston Bruins in the NHL playoffs last month, he noted, “a lot of our cell sites had trouble keeping up with the demand” from subscribers.

Alec Saunders, vice president of developer relations and ecosys-tem development for BlackBerry, said his company sees great prom-ise in mobile commerce apps. Despite consumers’ current secu-rity concerns about making their credit card information available over their cell phones, he believes that mobile wallet technologies like Near Field Communications (NFC) will take off as users get more comfortable with using their phones for mobile payments and other information exchanges.

“We think that NFC has a huge amount of potential,” Saunders said. He noted that the company’s latest BlackBerry 10 devices are already NFC-enabled.

James Maynard, president and CEO of Wavefront, said machine-to-machine (M2M) communi-cations holds great potential for Canada as more and more devices get connected to the Internet and learn how to speak the same lan-guage. He also sees promising in-dustrial and health applications for M2M, such as tele-medicine in emerging markets and remote locations.

Although smartphones have

Fuller versions of all these original news stories can be found on Cartt.ca.

Tuesday June 4, 2013 Tuesday June 4, 2013DAY TWO DAY TWO

CTS 2013: Ericsson announces new ICT centre for MontrealBy Linda Stuart

T ORONTO – While he may have phoned in his keynote address to the Ca-

nadian Telecom Summit from Stockholm, Ericsson president and CEO Hans Vestberg made much of the role Canada plays in the company’s research and de-velopment plans.

Speaking via a live video feed from Ericsson’s global headquar-ters, Vestberg (pictured) said: “Canada is playing an important role for us when it comes to re-search and development on many of [Ericsson’s] products.”

Vestberg used his opportu-nity to speak to Canadian Tele-com Summit attendees to an-nounce Ericsson’s plan to build a 40,000-square-metre data centre in the Montreal suburb of Vau-dreuil-Dorion which will begin operations in early 2015. It will be one of only a few such data centres to be built globally by the company.

The idea is to bring together the company’s complete product portfolio in a single facility where Ericsson can innovate and test its equipment, and also do research and development on it, Vestberg said. At the same time, custom-ers will also be allowed to use the data centre to do trials and tests on Ericsson equipment, he said.

Vestberg said, of the roughly US$5 billion Ericsson invests in R&D globally every year, about 80% is invested in network in-novation. In addition, Ericsson invests heavily in OSS/BSS (oper-ations support systems/business support systems) and process transformation, he added. Other technology areas of focus for Er-icsson include mobile payment, IPTV, and machine-to-machine platforms in the cloud, Vestberg said.

Ericsson’s latest Mobility Re-port, also released Monday morn-ing, indicates the global adoption of smartphones and 4G networks is helping to drive tremendous growth in video traffic, which is

increasing by 60% annually.During his keynote address,

Vestberg expanded on the Mo-bility Report, saying 4G network adoption is particularly high in North America, Korea and Japan, which represents a shift from the previous trend of high penetra-tion of 3G networks in Europe.

By the end of 2018, Ericsson expects global smartphone sub-scriptions to reach 4.5 billion, up

from 1.2 billion in 2012. Overall mobile subscriptions will total more than 9 billion by the end of 2018, up from about 6.4 billion subscriptions in Q1 2013, accord-ing to Ericsson. Mobile broad-band subscriptions are expected to account for about 7 billion of the world’s mobile subscriptions by the end of 2018, Ericsson pre-dicts.

Vestberg offered some shorter-

term predictions for the mobile market, saying that by year-end 2013 about 50% of all mobile phones shipped globally will be smartphones. Mobile broadband subscriptions are expected to top 2 billion by the end of the year, he added. Also by the end of 2013, smartphone users will be con-suming 20MB of data per day on average.

Mobile revolution?

You ain’t seen nothing yet

T ORONTO— If you thought the mobile communications revolu-tion had already transformed the

world, well, we’re still just seeing the tip of the iceberg.

That was the basic message Peggy Johnson delivered in a keynote address at the Canadian Telecom Summit at the Toronto Congress Centre on Mon-day morning. Johnson, executive vice president and president of global mar-ket development for Qualcomm, spent some time spouting facts, figures and forecasts to show how much mobile us-age has grown over the past few years, how much more it will continue to grow over the rest of the decade and what that all could mean.

For instance, to highlight how much wireless usage is continuing to grow, Johnson noted mobile users have now downloaded more than 30 billion data apps onto their handheld devices across the world, with the 60-billion mark not too far off. She also noted that the wireless business now produces about US$1.5 trillion in revenues globally, enough to account for about 2% of global GDP.

Johnson argued the mobility move-ment is totally re-shaping the comput-ing business, with such increasingly sophisticated devices as tablets and smartphones making PCs and laptops all but obsolete in the future. “We’re redefining computing by leaving lap-tops behind” and using tablets and smartphones, she said. “The world of computing has gone mobile… We’re starting to demand things in our pock-ets that used to be on our desktops.”

To buttress her point, Johnson cited forecasts that 7.5 billion smartphones “will go out the door” worldwide over the next five years, joining the 1.5 bil-lion smartphones already in consum-ers’ hands. She noted that one million new smartphones now go out the door every day, about three times the num-ber of babies born on earth each day.From left. Moderator Ian Hardy, Mobile Syrup; Alec Saunders, BlackBerry; James Maynard, Wavefront;

Nauby Jacob, Bell Mobility; Ken Price, Samsung.

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phones. “That’s the one thing the CRTC did that I’m not sure will be necessarily welcomed by cus-tomers,” said Rogers Ken Engel-hart, Rogers’ vice-president of regulatory affairs, in an interview. “Time will tell whether that’s right or not.”

Engelhart said he is also con-cerned that the December 2 start-ing date does not provide enough time for carriers to develop and implement systems to monitor customers’ data usage and other requirements to comply with the new code. “That’s a pretty daunt-ing IT challenge to get done in six months.”

Other provisions introduced in the code include allowing con-sumers to have their cellphones unlocked after 90 days, or imme-diately if they paid for the device in full. Wireless service providers will also be required to provide customers with a clearly stated, easy-to-understand written con-

tract that outlines prices (in-cluding taxes), services provided, commitment period, terms of subsidized devices and other de-tails.

The CRTC’s decision to in-clude provisions to cap fees and limit contracts to two years is good news for consumers and has been welcomed by advocacy groups such as the Public Inter-est Advocacy Centre (PIAC). “The Wireless Code has rules to help wireless customers where it counts – the bottom line,” said PIAC executive director and gen-eral counsel John Lawford. “It also makes it easier to switch compa-nies because those costs are limit-ed and are clear,” he added. Inter-net advocacy group OpenMedia.ca agree and say the new code is a positive sign that the CRTC is beginning to consumer concerns more seriously.

Ontario not-for-profit Diver-sityCanada Foundation contends that the Wireless Code fails to ad-dress the needs of some prepaid

customers, however. Under the code service providers of prepaid cards are required to keep cus-tomers accounts open for seven calendar days after an activated card has expired to allow the cus-tomer more time to “top up” their account and retain their prepaid balance.

Celia Sankar, executive direc-tor of the DiversityCanada, says if customers miss the top-up expi-ration date, they risk having their service cut off. “Balance expiry amounts to disconnection for prepaid consumers, because they can only use their phones if there are funds in their accounts,” San-kar said in a release. “When you consider that it is the less afflu-ent consumers who most heavily use prepaid wireless services, the inequity baked into the wireless code is inexplicable.”

The CRTC also says it plans to conduct a formal review of the Code within three years of imple-mentation. There’s more at www.crtc.gc.ca/wirelesscode

Wireless Code: cont’d

Ericsson CEO Hans Vestberg made a remote appearance from Stockholm.

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