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Tech Bytes: No Canadian iPhone? Blame the government
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No Canadian iPhone? Blame the government

By Peter Nowak, CBCNews.ca

From the "we're getting tired of writing these stories" department comes the following: Apple on Friday launched the iPhone in Ireland and Austria. But of course, still no Canada.

The 8-gigabyte version is selling in both countries for about $617 Canadian, while the 16GB version is going for about $772. In Austria, the iPhone is available through T-Mobile, which is offering two service plans: one with 3GB of data downloads and 1,000 voice minutes for about $60 a month, or 3GB, 3,000 minutes and 1,000 text messages for $85. The phone is being offered through O2 in Ireland with some pretty crazy rates (crazy as in expensive). The entry-level plans gives a piddly 175 voice minutes and just 1GB of data for about $69. A plan with 700 voice minutes and the same amount of data goes for about $154.

This announcement brings up two schools of thought as to why there is no iPhone in Canada. The school of thought that blames Rogers says the company's data rates are too high; Apple wants people to use the iPhone to surf the web, but offering it through Rogers would be too expensive and people might actually blame Apple for the rates. Rogers, on the other hand, doesn't want to lower its rates because, well, that sort of goes against the company's very philosophy. The other school of thought argues that Canada is a smaller country, and Apple has been plowing its way through bigger markets before it turns its attentions here.

Apple looks to have disproven both schools of thought with this move. The Irish rates are pretty much proof positive that Apple doesn't give a damn what a carrier charges customers. Population size also has nothing to do with the company's rollout schedule, since Ireland and Austria - with six million and eight million people respectively - are much smaller than Canada.

What's notable is that Ireland and Austria are in effect satellite iPhone states of Britain and Germany. After all, O2 offers the iPhone in Britain while T-Mobile is the provider in Germany. Selling the device in these two countries is just a natural extension for these firms. Apple's relationship with the carriers thus looks to be the main driver behind its rollout progression.

With that said, might the iPhone be in Canada by now if AT&T were allowed to operate here? Canada's ownership restrictions limit foreign-companies to owning no more than 46 per cent of a facilities-based telecommunications company, hence the lack of interest - and presence - by outsiders in Canada's wireless market. AT&T used to own a chunk of Rogers Wireless while T-Mobile had a chunk of Microcell/Fido, but both sold out when they got tired of waiting for the government to change the rules, which most people in the industry consider archaic and anti-competitive.

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mt

Ottawa

You are forgetting the fact that Apple still doesn't own the rights to the name 'iPhone' in Canada yet! A deal was reached with Cisco, who owns the iPhone name in the US, but apple can't offer the phone here unless they reach deal with Comwave Telecom who owns the name in Canada. The only other option would be to launch with a different name. Clearly Apple is not going to change the name - they have too much riding on the brand identification. If Comwave refuses to make a deal, what else can Apple do but stay out of Canada?

Posted March 17, 2008 11:33 AM

Still a Canadian, but com'on ...

Vancouver

I buy American magazines, watch American TV shows, shop in American clothing stores, drink coffee from an American coffee chain ...

I like my magazines, my TV shows, my clothing, and my coffee ...

Canada must stop being anti-competitive and let these foreign companies in. Foreign investment will only bring more choice to consumers, and that is ultimately who we should care about.

Canada must start caring less about the companies and be MORE focused on serving the consumer. Choice and value-for-money is what the consumer needs.

Canada is a group of people and consumers before it is some artificially propped-up company.

If AT&T came in to Canada, I would still be eating the EXACT SAME CHEESE SANDWHICH I eat today ...

Signed,

A Canadian who doesn't give a damn where the company he buys his products are from.

Posted March 17, 2008 01:31 PM

dan

Winnipeg

I say blame Rogers. 1.Every phone that has come into Canada, Rogers (and the other two) have managed to aqcuire versions that omit any wifi capabilitys. 2.Apple demands a monthly revenue from every iPhone user ($5.00 a month I believe). Why on earth would Rogers agree to that? With no other GSM provider how would that be a good business decision? 3. R.I.M with it's Blackberry devices own the business market and the iphone is a real threat. How exactly R.I.M and Rogers are allied I'm not sure but I'm sure they are. Bottom line, the iPhone is not good for Rogers stock holders (let's stop saying share holders, that's just a ploy). Anyways, I think the government is partly to blame for letting all this to happen but at least measures are being taken to correct it. Let's hope it works.

Dan

Posted March 17, 2008 01:56 PM

Rich

I like how you blame the government without any actual evidence.

Anyway, if you want one of these overhyped iPhone's, why not just go down to the US and buy one? You can hack it to work on Rogers network today. Personally, I've tried the iPhone and found it lacking in every way compared to my Nokia N95.

Posted March 17, 2008 02:11 PM

Lorrie

My understanding of the problem, verified by a quick check of the internet, is that the problem has nothing to do with government and everything to do with branding and trademarks ...

1) in Canada, the trademark 'iPhone' is owned by Comwave, not Apple.

clearly,
2) Apple either failed to do adequate due diligence when selecting a marketing paradigm (e.g. "iDevice: iPod, iPhone, etc.) or believed the Canadian market was too small to worry about potential branding conflicts here.

So,
3) Apple must either buy out ComWave's right to the trademark, or, call the product something else in Canada and market it under that name.

It may be true that Rogers charges too much for its service may be true, or that the absence of competition enables that to occur -- which is ultimately a regulatory issue.

But, unless something has changed in the last year, Apple has made marketing choices that keep iPhones out of Canada.

Posted March 17, 2008 04:44 PM

John

Toronto

I love Canada but can't stand this communist attitude by the CRTC towards communication/TV I have an American satellite, Iphone etc and what I love about Canada is that you can live like an American without actually living in the US.

Posted March 17, 2008 05:23 PM

Andrew

Toronto

Canada's size is obviously a limitation in the ability of home-brew companies to survive. If we don't maintain some (if not more) control, we'll end up just some satellite state while anything cutting-edge coming out of Canada ends up bought out by our much larger neighbour to the south. Just look at ATI and Future Shop as examples.

Posted March 17, 2008 11:08 PM

TC

If you live in Canada and really want one of these phone's go on ebay for about $500 you will have one working if you are with Rogers just throw in your SIM card.

Posted March 18, 2008 09:47 AM

Avron

Calgary

Apple chose a brand name that is closely associated with it's core products. The fact that there is a company in Canada that owns the rights to the product name is unfortunate, but our market is relatively small compared to the global market for their products.

While I'd buy this device regardless of it's product name - iPhone, iSkittle, iChange or iDontcare - brand awareness is a powerful marketing tool. People associate iTunes, iPod, iMac and iPhone. Consumers may not recognize cPhone as an Apple product, and may not embrace it as easily.

While we can hope that Apple and Comwave can come to an agreement that serves the interests of both parties, I'm not going to hold my breath. I'll wait until there's a suitable alternative (that doesn't run the rather buggy Windows OS) - maybe from Trolltech (now owned by Nokia) or Asus.

Posted March 18, 2008 10:45 AM

Andrew H.

NL

Doesn't bother me the least that there is no iphone here at all...and i wouldn't care if the iphone doesn't show up here what-so-ever. I own a iPod Touch, with the software upgrade (GPS, Mail, Stock Market, and Notepad), and its best kind.

Posted March 18, 2008 11:21 AM

Dave

Poco

It would be nice to have the option of the iPhone in Canada, regardless of carrier. Lamenting perceived goverment regulations while acceptance of an unknown policy of a US public company known for its aggresive litigation of product rumours is foolish at best. Foreign majority ownership in telecommunications is not unlike ensuring corporate controlled information, propaganda by any other name.

Posted March 18, 2008 12:36 PM

Mark

Ottawa

My thoughts are aligned with Dan's comment up above. 1- Rogers is not a fan of unlimited data. 2. WiFi will cut into its data profits 3. Rogers want to implement its cheesy WAP page browser on the Iphone, therefore increasing sales on the Rogers store, Apple having definitely turned down that option, in which I agree Safari (Apples Browser) rules. 4. No subsidisation of the Iphone, only individuals is Apple cause its there product, therefore profits again lost on the part of Rogers and again 5. They cannot offer free iphones to people to retain their customers cause of their poor service, Rogers would have to pay full cost and giving away $400 phones on a day-to-day basis which would be extremely costly. 6. The 5$ monthly profit sharing, never will that happen either. So its not a Gov. issue its a money hungry Controlling company dominating the GSM service here in Canada. However I know when the Wireless Spectrum auction is complete, they will no longer have the upper hand. And remember customers never forget all there negative experiences; therefore most customers will enjoy the switch and fresh start with a New Cell Phone carrier.

Posted March 18, 2008 02:26 PM

Stuart

Kanata

AT&T has already bailed on Canada ... they pulled out of the wireline/LD/internet service and sold to MTS who formed MTS Allstream. They sold up their interests in Rogers AT&T Wireless to Rogers. Now SBC (Southern Bell) owns AT&T and they're so far from the Canadian border their only interest in Canada is services to snowbirds!

Rumour has it that in fact Rogers is very close to a deal with Apple and we can expect to see iPhone later this year. But who knows ... Rogers is reportedly a hard company to do business with. One thing you can count on is that Rogers will soak users as bad as Ireland!

Posted March 19, 2008 02:10 PM

Michael

Calgary

To John and Still a Canadian:

Why don't you just move down there then? You're obviously only Canadians by convenience. American culture is crap, plain and simple. Its low-brow, lowest common denominator approach obviously appeals to some here in Canada, but what I see is an erosion of Canadian culture from encroachments such as those you two both listed. You like that junk so much? Then go be American in America.

I say bravo to the protectionist approach of the gov't. I say keep Americans and American culture and products in the US and keep Canadians and Canadian culture products in Canada.

Let them foist their crap on somebody else.

Posted March 19, 2008 02:54 PM

Justin

Halifax

No iPhone... What will I ever do...Wait a minute *Pulls out iPod video, slips in the ear buds to my ears and starts rocking out*

Posted March 21, 2008 02:44 PM

Mike Pontarelli

Canada is a great country but its so sad that small things like these make it unaffordable to live:

1. Very high new car prices.(Even cars made in Canada)
2. Higher Cell Phone / Data costs. (No competition)
3. High taxes.
4. Higher Unemployment.
5. Higher gas prices

Progress has been made but it's still not enough!!!

Posted April 1, 2008 06:14 PM

crusher

capetown

i dont care becus i have touch to talk on anyways why do you car if you have phone why call me now on ipone and the govemnt will listn to you anyways

Posted April 7, 2008 02:39 PM

Mark Lee

toronto

I think it is okay to blame the government! No agency is in place to handle wireless telecommunication issues. Contrary to the beliefs of some, "the CRTC does not regulate the rates, quality of service or business practices of cellular (wireless) service providers." In fact wireless complaints are handled by an independent agency, established by the telecommunications industry. Clearly a joke in my opinion anyway

Our Government owes the people better! If there is a conflict of interest preventing government from serving its purpose it needs to be removed.

Get involved! (It takes so little time)

Posted July 9, 2008 09:34 AM

Monkey

Winnipeg

Ok ladies and gents, time to put your pants back on, wash up and go get your friggin iPhones, and when Apple releases a better iPhone in the next 4 months you can complain about that too.

Blame the government? Not too sure if you've noticed but the government HIRES agencies, or more like gives them contracts, so its up to a group of like-minded individuals, like yourselves, to get together and convince the goverment of the need to have a separate body monitor these companies.

Good luck to all with that one.

Posted July 11, 2008 11:04 AM

Steve Lee

Its the way the game is played its all apple if you ask me I been looking around online for long time to get unlocked iphone, finally you can get factory unlocked iphones I purchased mine from selectgsm.com it depends on your needs but if your looking for this phone you can try online retailers.

Posted April 15, 2009 01:05 PM

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