Thank you for your e-mail regarding rate plans proposed by Rogers for iPhone services.As Canada’s wireless market has been deregulated since the mid 1990s, prices and contract terms are no longer subject to approval by the Canadian Radio-television and Telecommunications Commission. This is consistent with the government’s objective of a competitive wireless sector that relies on market forces to the benefit of Canadian businesses and consumers. The government is of the view that competitive market forces are the best means of achieving better choice and lower prices for telecommunications services. Deregulation of the wireless market leaves wireless service providers to interpret market forces and determine appropriate rates for wireless services, including roaming and mobile data.

The government also took steps to increase competition in wireless markets by setting aside a portion of the spectrum specifically for new entrants to bid on in the auction of radio spectrum (airwaves) that was held from May 27 to July 21, 2008. As well, new entrants that acquire spectrum will have access to existing antenna towers and the ability to roam on existing networks at market-based rates.

This new spectrum is suitable for advanced new wireless services, like high-speed Internet and video, and faster access for services such as those being offered using the iPhone. The introduction of new service providers will help make Canada’s wireless market more dynamic, competitive and innovative to meet the growing needs of Canadians. The government’s objective is better choice and lower prices for Canadian wireless users.

Once again, thank you for writing and please accept my best wishes.

Sincerely,

The Honourable Jim Prentice, P.C., Q.C., M.P.

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