YOUR COMPLETE SOURCE www.wifihifi.ca | September 2014 - Wifi Hifi Mobile Digital Edition
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www.wifihifi.ca | September 2014 PM42710013
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WIRELESS AUDIO MOBILE ENTERTAINMENT
CONTENTS | September 2014
PUBLISHER’S NOTE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SHORT BITS
8
Highlighting some of the latest and coolest gear available, and coming soon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
RETAIL BIZ
Creating Value: The Role of Distribution in the CE Industry
Today’s CE distributors are much more than middlemen. Without their efforts, the industry
would likely grind to a halt.
By Gordon Brockhouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
14 MOBILE WORLD
Head-to-Heads: 3 Rounds of Competition in Wireless
A glimpse into three key areas of competition in wireless: new carriers vs. incumbents; “traditional” mobile
TV providers and over-the-top services; and wireless retail vs. new channels.
By Christine Persaud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
AUTOMATION
Home Automation Goes Mainstream
Light bulbs, door locks, thermostats and surveillance cameras are joining the Internet of Things.
Custom vendors welcome this trend, because it boosts awareness of home automation.
22 By Gordon Brockhouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Riding the Wave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
30
FWD THINKING
A Game-Changer in CI?
CIs find themselves dealing with networking, and ensuring security and ease of configuration
are two prime concerns. Does this router from a Canadian company solve both?
By Wally Hucker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
CROWDFUNDING
Closing the Business Gap
It takes a lot to turn a successful crowdfunded campaign into a viable business. But as these examples
show, there can be significant advantages for distributors and retailers that get on board.
38
By Frank Lenk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
TALKING SHOP
Are online services like Kijiji and Canuck Audio Mart worthwhile for selling gear? Plus, a spate of new
store openings and partnerships in CE retail.
By Wally Hucker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
BEST LUGGAGE FOR A 3-DAY BIZ TRIP
Do you travel a lot for business? Check out our picks of great luggage options for those
short jaunts by plane, train, or automobile.
By Vawn Himmelsbach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
HOW DID YOU GET HERE?: John Henderson
50 As told to Wally Hucker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
4| www.wifihifi.ca
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Connected Receivers
SO MUCH MORE THAN A BLACK BOX
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Find out why at ca.yamaha.com
Dealer inquiries avcare@yamaha.ca
PUBLISHER’S
HAPPY NEW YEAR! NOTE
The start of the new calendar year is, of course, months away. As this issue appears, I am celebrating the beginning
of the business year; and for me, that has always been the start of September. The lazy days of summer are behind us,
the kids are back to school and in their routine, the humidity of August is replaced by the crisp days of September,
PUBLISHER / EDITORIAL DIRECTOR sandals are put away, blazers come back, and there is an energy in the air that tells us the days of kicking back are
John Thomson over. Once again, it’s time to get back to business.
Cell: 416-726-3667
September is a great kickoff month for our industry. We move straight into high gear with the IFA, CEDIA and CITA
jthomson@wifihifi.ca
@john__thomson (that’s 2 underscores) tradeshows. We look forward to seeing new products, meeting colleagues and mapping the direction where our
industry is heading.
EDITOR-IN-CHIEF For our September issue, Gordon Brockhouse addresses the importance of distribution, and how the role of
Christine Persaud
distributors has evolved in recent years. Increasingly, distributors have to add more value for both customers and
cpersaud@wifihifi.ca
@ChristineTechCA suppliers. With retailers moving to just-in-time inventory, rapid fulfillment is a must. So is operational efficiency,
given the extreme competition in our industry.
EDITOR-AT-LARGE One sign of a great distributor is its knack for finding new products to represent. While tradeshows have historically
Gordon Brockhouse
played a leading role in learning about new companies, as Frank Lenk outlines in his story on page 38, crowdfunding
gbrockhouse@wifihifi.ca
sites such as Kickstarter are becoming a great hunting ground for the next big thing.
RETAIL EDITOR One candidate for the next big thing is home automation, which is the subject of Gordon’s second feature. This has
Wally Hucker traditionally been the realm of custom integrators; but now we’re seeing a host of over-the-counter, do-it-yourself
whucker@wifihifi.ca
products. Service providers like Rogers are also entering the field. Interestingly, vendors targeting the custom
sector welcome this new competition, because it boosts awareness of home automation.
CONTRIBUTORS
Vawn Himmelsbach, Frank Lenk Is there an industry on the planet as fiercely competitive as telecommunications? Probably not, judging by the
verbal fireworks that occur every year at the Canadian Telecom Summit. On page 22, Christine Persaud goes deep
DIRECTOR OF DIGITAL CONTENT inside the wireless industry, describing the sparring between wireless providers at this year’s Summit, analyzing
James Campbell
the competition between carrier and over-the-top mobile video services, and looking at the growing number
jcampbell@wifihifi.ca
of retailers offering wireless accessories. As Christine observes, supermarkets and drugstores are fighting with
DIRECTOR OF SPECIAL EVENTS wireless and electronics retailers for smartphone accessory sales.
Cathy Thomson We round off this issue with six pages of retail news from our man on the ground, Wally Hucker. Wally was very
cthomson@wifihifi.ca
pleased to report that store openings and expansions have trumped closings and contractions this month. That’s
Melsa Media Inc. something that we have not seen in a while; and it’s terrific news.
194 Robinson Street September isn’t just the time when kids get back to school, and business gets back to work. It’s also the time when
Oakville, Ontario consumers get back into stores. In his lead item for Talking Shop, Wally talks to retailers who are using services
L6J 1G3
like eBay, Kijiji, Craigslist and Canuck Audio Mart to build traffic. They have some interesting perspectives on what
works, and what doesn’t.
Website: www.wifihifi.ca / www.wifihifi.com
Twitter: twitter.com/wifihifimag Hopefully, traffic and sales will keep building in Canadian technology stores right through the holiday season, so
Facebook: facebook.com/wifihifimag that we have lots to celebrate at the official year-end.
All advertising inquiries: Thanks for reading!
John Thomson John Thomson
jthomson@wifihifi.ca jthomson@wifihifi.ca
Copyright 2014. WiFi Hifi is a registered brand of Melsa Media Inc. and
is published ten times each year. All rights reserved. The contents of
this publication may not be reproduced in whole or in part without the
written consent of the publisher. The views expressed by advertisers
are not necessarily those held by the publisher.
Publications Mail Agreement Number: PM42710013
Business Number: 81171 8709
6| www.wifihifi.ca
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SHORT BITS The newest products from the business of digital.
I Can See Clearly Now: Belkin’s NetCam HD+ Wi-Fi camera lets you see your
home in 720p resolution on a smartphone, tablet, or PC, from wherever you are.
The camera uses a wide-angle glass lens, and offers night vision, secure Wi-Fi
streaming, cloud storage, easy setup and push to talk (scold the pets for sitting on the
furniture, or the kids for coming home late from school). It works with WeMo: users
can access their camera via the WeMo app and set up rules and triggers with other
installed WeMo devices, like the WeMo Insight Switch, for things like motion detection.
Grab a monthly or yearly package that allows you to store HD video to the cloud, or
even download clips to your computer for local storing and sharing. $150 Belkin.com
No Purer Listening: Want a super-pure listening
experience with your high-end headphones? Check
out the McIntosh MHA100 headphone amplifier,
which uses the company’s technologies, like
Autoformer and Headphone Crossfeed Director OK Google, Wear my G Watch: LG’s G Watch is one of the
(HXD), to enhance the audio. Using the four digital first devices to be powered by Android Wear, a Google operating
inputs, the amp can decode music at up to 32 bits system that extends Android to the wearable platform. Worn around
and 192 kHz; it also has a pair of analog inputs. Sit the wrist, it has a touch interface, and allows the wearer to view
back and enjoy some tunes while you work at the notifications from the screen, and seamlessly connect with other
computer, or use the 50 watt stereo speaker outputs Android devices running Android 4.3 and above. It can accept
for connecting to your speakers for shared listening. audible commands for doing things like searching information
But this purist listening experience will come at a or dictating a text message: just begin with “OK, Google.” Use the
hefty price, to the tune of $4,500. Mcintoshlabs.com matching wristband, or any standard 22 mm watchstrap. $250 Lg.ca
Electric Cool on Two Wheels: The Italian-
made Energica EGO is an electric superbike
made by CRP that’s equipped with a synchronous
electric motor with permanent magnets, oil
cooled, has 100Kw of power and torque of
195Nm from 0-4,700 rpm. The top speed is 240
km/hr., and it can go from 0-100 km/hr. in under
three seconds. The 110-220V on-board battery
charger with a cable interface allows for an
85% charge in just 30 minutes. While range will
depend on use, you’ll get about 150 km with an
average speed of 80 km/h, and 200 km with an
average speed of 60 km/h (street circuit). Get one Super-Connected Micro System:
in matte pearl white or black for a cool $28K or so. The Pioneer X-CM32BT micro system is packed
But not until 2015. Energicasuperbike.com full of connectivity options. It has a CD receiver,
and can connect to music sources via Bluetooth
or USB. BT Auto Connect will automatically
remember previously-connected Bluetooth
Charger, or Speaker?: Why pick one or the other? Veho’s Pebble Aria devices for easy reconnection; and when BT
combines a portable charger and speaker in one. The cylindrical-shaped device Standby mode is enabled, you can power up the
houses a 3,500 mAh charger that can provide up to two full charges for most speaker directly from a Bluetooth device. It comes
smartphones. It also has a 2-watt speaker for playing music from a connected with a matching stand for iPod/iPhone/iPad,
mobile device. It isn’t Bluetooth; instead you connect the Pebble to your phone FM/AM-tuner that stores up to 45 radio stations,
via 3.5 mm jack. And you can rest your phone comfortably against the unit and is compatible with the free Pioneer Wireless
while songs are playing to control playback. $50 Nvu.ca Streaming App. $280 Pioneerelectronics.ca
8| www.wifihifi.ca
SHORT BITS
No Purse/Toolkit Needed: We’ve seen plenty of cool smartphone
cases over the years, but none like the myTask URBAN for the iPhone 5/5S,
which has hidden inside all of the essential mini tools one could possibly
need. For a woman, there’s a mirror, tweezers, nail file, and scissors; plus
a pen, stylus, USB drive and mini-LED light. Want something a little more
rugged? Try the TASKONE, which has 22 different tools housed within it,
Swiss Army-style. Need a bottle opener, knife, or wire cutters? This one has
you covered. $80-$100 Thetasklab.com
Amazon Adds New Perspective: Amazon’s first smartphone, the Fire, Vizio M-Series Doubles LED Zones:
uses a sensor system to respond to the way you hold, view, and move the phone. The new M-Series full-array LED backlit LCD
It will, for example, instantly recognize things like Website and e-mail addresses, HDTV collection (32-80”) from Vizio boasts up to
phone numbers, QR and bar codes on a poster or business card, for example, to let 36 active LED zones, more than double that of the
you make a call, send an e-mail, save the contact, or go to the Website. It can even 2013 collection. As smart TVs, they will also come
identify movies, songs, and products. Cool! US$200-US$300 Amazon.com with access to Vizio’s Internet Apps Plus platform,
smart remote, Active Pixel Tuning, and 240Hz
refresh rate. The TVs are also 20% slimmer than
last year’s models, with bezels that measure just
8mm. US$330-US$3,200 Vizio.com
eXact Measurements: Gitzo’s Mountaineer tripods employ
Carbon eXact, a fibre composite that’s optimized for each tube size.
High Modulus carbon fibre is used in the narrower tubes to make
them stiffer. Other improvements include added rigidity to the top
spider and column lock, redesigned leg locks to improve ergonomic
resistance, new G-lock Ultra construction that makes it easier to set
leg height, a redesigned Ground Level Set mechanism that makes
it easier to remove and invert the centre column for ground-level
shots, and an unlocking ring under the column’s upper disc that
frees the column while keeping the upper disc in place. Pricing from
$650-$1,300. Gentec-intl.com
Single Cup Beer?: The single-cup craze is
on fire, with coffee, hot chocolate, even iced
tea and lemonade. But beer? Yep, if Synek has
anything to do with it. The developer, a former
stock market analyst, wants to offer the machine
Feeling the Fibe: Bell’s Home Hub for Fibe TV and Internet is a Wi-Fi router to craft brewers as a method for dispensing beer
and modem in one, operating on the 802.11ac wireless standard and the 5 GHz from cartridges similar to coffee K cups. The
spectrum for delivering über-fast speeds. What also sets it apart are the tools cartridges, which can hold about 11 12-ounce
for managing Internet usage across all of your connected devices. Log in online beers, can be filled using an adapter, and the
and you can see a detailed list of connected devices and details about their dispenser is pressurized and self-refrigerated,
usage patterns, including what devices account for what percentage of use thus offering extended shelf life. A Kickstarter
(are you eating up most of your allowance watching Netflix through the Apple campaign has been launched in hopes of raising
TV? Or surfing on your phone?) Parents will especially love the ability to set rules the quarter-million bucks necessary to make this
for specific devices: limit Billy’s daily online game play to an hour, or shut off happen. This is the type of packaging innovation
Wi-Fi on the kids’ phones during dinner. $200 Bell.ca/bestwifi we can all drink a toast to! Syneksystem.com
September 2014 |9
SHORT BITS
Smart Phone Home: Really, who has a home phone anymore?
Panasonic hopes to change that with its new DECT series of cordless
phones, some of which can connect to a smartphone via an iOS or
Android app to use the wireless device as an additional handset. Calls
can even be transferred to mobile devices, as long as they are within
range of the wireless router and connected to Wi-Fi. Once a call has
been transferred to mobile, the main landline can still be used to make
and accept other calls. The Link2Cell models don’t require a landline
subscription at all, but give you that home phone feel; and baby
monitor features in each. $170-$250 Panasonic.ca
Tekoia SureMote: It’s a universal remote
app that can control smart media streaming
and legacy devices that use Wi-Fi or infrared
(IR) capability from a single interface. The Connect in a Flash: SanDisk’s Connect Wireless
app uses proprietary technology developed Flash and Media Drives can wirelessly connect to your
by Tekoia, which hails from Ramat Gan in smartphone without the need for an Internet connection
Israel, and will run on Android devices, with (they act as their own hotspots) for easily transferring
compatibility for a version of the OS coming content, like photos and videos, to your computer, or for
later this year. It is a standards-based solution storing then streaming files to play back on the phone.
supporting UPnP as the main communication The idea is to help you free up valuable storage space
protocol, OIPF command set, and a secure on your mobile device. They can connect to multiple
encryption layer. Tekoia.com devices at a time, and even stream to up to three devices
simultaneously. The Media Drive adds an SDHC/SDXC slot
for quick transfer and/or added storage. Capacities range
from 16-64 GB, and pricing from $50-$120. Sandisk.ca
After All, You’re My WaterWall: The WaterWall
technology in Samsung’s DW80H9970 dishwasher
uses a linear mechanism that moves along the bottom
of the dishwasher tub to provide consistent high water
pressure. This replaces the traditional rotary wash
systems, and creates a more powerful wall of water
that offers fuller cleaning coverage. The Controllable
Intensive Washing function (Zone Booster) offers two
cleaning zones: high pressure and temperature wash
for heavily soiled pots and normal wash with a lighter
stream for plates and glasses. $1,900 Samsung.ca
Onkyo Goes Dolby Atmos: Among three new home
theatre systems from Onkyo is the HT-S7700, which has HDMI
2.0 inputs with support for 4K video pass-through at up to 60fps,
Bluetooth wireless connectivity, and Zone 2 line-level audio
Savant Gets Smarter: Savant Systems has expanded its Smart Series of smart home output. Built around a 7.2-channel network AV receiver, it also
technology with a new unified media server and amplifier that allows users to automatically includes a two-way centre-channel speaker, full-range surrounds
save and control their music mixes. Users can do things like create a new Pandora Internet Radio and 10” powered sub. Housed in the front speaker enclosures
station (note Pandora is not yet available in Canada), are upward-firing drivers for producing overhead effects, such as
or create custom playlists from streaming services aircraft and rainfall, in Dolby Atmos soundtracks. It supports the
like Spotify, then access and control the audio HDCP 2.2 copy protection scheme that may be used to encrypt
through Savant’s app. Packages start at US$1,600 future 4K streaming and broadcast services, phono preamp, and
Evolutionhomecorp.com Marvell Qdeo upscaling to 4K or 1080p. $1,000 Onkyo.ca
10 | www.wifihifi.caSo SMART… It’s BRILLIANT
SHORT BITS
Hear the Motion: There are three new loudspeakers
in MartinLogan’s Motion Series: the XT (“Extreme”)
Motion 60XT floor-stander, Motion 50XT centre-channel
and Motion 35XT shelf speaker. All three employ a new
version of the company’s Folded Motion tweeter, with
a radiating surface 40% larger than the tweeters on
other Motion Series speakers. The tweeter is matched to
long-excursion aluminum-cone woofers with rear-firing Power in the Bank: TP-LINK Canada’s
low-turbulence bass ports. All models are available in TL-PB10400 Power Bank portable charger
piano black and gloss cherry finishes. $1,000-$3,500/pr. has dual USB ports for simultaneously
Martinlogan.com charging up to two mobile devices. It has
a high-capacity 10,400 mAh battery, and
2A and 1A USB ports that are compatible
with most 5V input USB-charged devices,
with voltage automatically adjusted based
The 420 on the E-NJoint: Move over e-cigarette. Dutch company E-Njoint has developed an
on the device plugged in. It can charge a
electronic way of smoking marijuana, which is, by the way, fully legal in the Netherlands, along
typical smartphone three to five times, and
with several U.S. states. Fear not, Canadians, as there’s a version that doesn’t contain any
with more than 500 recharge cycles over
THC, tobacco, or nicotine, and thus can be puffed anywhere to enjoy one of six fruity
its life. Four LED lights show battery level,
flavours. When you take a haul, the image of a green cannabis leaf lights up on
but can also double as a built-in emergency
the end. For those who reside (or are visiting) locations where marijuana
flashlight. Safety features include built-in
consumption is legal and wish to indulge, the E-Njoint Rechargeable
short circuit, over-voltage, over-current,
can be filled with your own cannabis liquid content, and the E-Njoint
over-charge, over-discharge, and
Vaporizer can be used to smoke dry herbs. E-njoint.com
overheating protection. $60 Tp-link.com
Folding Studio: Need to take high-quality product shots and only have
a smartphone on hand? It can be done! The Foldio is a super-neat portable,
foldable studio made by OrangeMonkie of South Korea and Los Angeles.
It folds down like an envelope that can be easily slotted into a backpack
or briefcase. Then, pop up the durable plastic material, origami-style, and
use the built-in magnets to arrange it like a box. There are two embedded
LED strips (9V battery required) for ensuring proper lighting, even in dark
environments. The box is white, but the backdrops can be easily changed;
black, gray, and white sheets included. $70 Nvu.ca
Rolling Screen: LG hopes to make Ready, Camera, Action!: Use Wi-Fi to connect Sony’s HDRAS20 Action
portable screens on-the-go a reality with Cam to the wearable, waterproof Live View Remote accessory, which lets you
its 18” roll-able OLED screen (1,280 x 810 view and control up to five cameras. It has a wide-angle ZEISS Tessar lens with
resolution) that uses a high-tech plastic a 170° field of view (120° with SteadyShot on), back-illuminated Exmor R CMOS
film made of polyimide that allows it to be sensor, stereo mic, and a handy flip function that automatically inverts the
rolled up to just over an inch in diameter. image if you’re shooting with the camera bolted upside down. Record up to
LG hopes to see the technology reach 130 minutes (150 with Wi-Fi off), then edit your vids and share them via social
screens as large as 60” by 2017. Movie, media using Sony’s free PlayMemories Home app for the computer. Want to
anyone? Sure, let me just grab that 60” add some cool effects? Use New Video Merge to create split-screen composites
screen out of my briefcase… Lg.ca of up to four simultaneous views captured by different cameras. $250 Sony.ca
12 | www.wifihifi.caSHORT BITS
The New Millenia: The Millenia LP2 and LP XL from Paradigm
are both ultra-slim designs, only 1.75” deep, and suitable for
shelf- or wall-mounting, and two-channel or surround sound
applications. Both come with tabletop stands and wall brackets,
and can be placed horizontally or vertically. Newly designed
woofers and tweeters see a phase ring hidden in the protective
screen in front of the satin-anodized aluminum (S-PAL) dome
tweeter that “improves high-frequency response.” The new
aluminum cone woofer has lower distortion than polypropylene
units, because the cone’s resonant frequency is beyond the driver’s
passband. They look cool, too, with gloss black finish, one-piece
baffle, and perforated tweeter screen. $560-$770 Paradigm.ca
Steer Me, D-Link: D-Link’s wireless
AC1900 Dual Band Gigabit Router (DIR-880L)
offers band steering, which lets users perform
simple Internet activities on the 2.4 GHz band,
and more demanding ones on the cleaner,
Rotate & Record: VSN Mobil’s V.360° has a 16 MP sensor that can interference-free 5 GHz band. It also uses the
record 360-degree video at 1,080 x 6,480; comparable to three 1,080p QoS engine for smart traffic prioritization and
images laid out side by side. It can shoot forwards and backwards, smarter bandwidth allocation. Advanced AC
with a complete 360-degree video at all times. Captured video can be SmartBeam technology tracks connected
viewed through an iOS or Android app, where users can manipulate devices and focuses signals toward them for
the video or image to see every angle, or lay it flat for a detailed faster throughput and greater range. It has four
panoramic view. The rugged camera can withstand dust, drops, and Gigabit Ethernet ports, and two USB ports with
even water submersion (up to one metre for up to 30 minutes.) It mydlink SharePort (USB 3.0 and USB 2.0) for
is compatible with the standard mount used by GoPro and other sharing and streaming content from up to two
cameras, so it can be attached to helmet mounts, tripods and a variety connected USB drives. Use the Quick Router
of other accessories. Take video and stills at the same time, and even Setup app to get going immediately from a
include location information. Pricing “under $500” Vsnmobil.com mobile device. $190 Dlink.ca
TV, Made Simple: Simple.TV provides over-the-air HD television to connected devices, and it’s now available in
Canada following a successful Kickstarter campaign. Rather than sign up for cable, customers can watch their favourite
shows from various devices, and even download HD content to a Mac or PC for offline viewing and syncing with mobile
devices. The PVR has dual tuners, allowing it to record two shows at once,
or stream up to five shows simultaneously. $230, plus higher-priced
Premier package options. Simple.tv
Hangin’ Tuf: Heading out to the cottage
or cabin? Or looking for an emergency
gadget to keep in your car’s trunk? Check out Beam Me Over, Xantech: The flagship Xantech EN85K
Freeplay’s Tuf, which combines a flashlight Ensemble universal infrared (IR) kit can send IR signals easily from a
with an AM/FM radio, and can be powered remote control to devices in separate locations. The compact sensor
by USB, solar, or hand crank. Oh, you can also allows users to reroute the IR signals to a separate location, allowing
connect your smartphone and crank away equipment to be hidden out of sight yet operated in areas such as
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carabeener handle on the side to latch it attached in a number of ways. It’s backwards compatible with other
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September 2014 | 13Rather than place consumer shipments in a large box, D&H
CREATING VALUE: The Role of Canada uses a special machine that wraps them in a corrugated
material. This reduces dimensional weight and minimizes
Distribution in the CE Industry shipping costs.
BY GORDON BROCKHOUSE
GREG TOBIN HAS A PRETTY DRAMATIC VIEW OF WHAT WOULD HAPPEN if distributors stopped
The Story
working: entire industries would grind to a halt. Tobin is General Manager of Brampton, ON-based D&H Canada, In Canada, the consumer electronics industry is
whose parent company happens to be the oldest distribution company in North America; so his exalted view served by scores of distributors, some of them
broad-based; others specializing in specific
of the importance of distribution might seem self-serving.
sectors like wireless or custom integration.
But if you think about it for a few minutes, you realize that Tobin is right. The products we consume are
produced all over the world. But for the most part we buy them locally – from stores that carry products from For small brands, a distribution arrangement
often represents the only path to the Canadian
scores of different brands. Distribution is what enables local retailers to offer a broad product mix to their
consumer. But some large brands are opting
customers. “We support hundreds of vendors and thousands of customers,” Tobin says. “Can you imagine for a distribution model in order to manage
if those thousands of customers had to go to hundreds of manufacturers?” costs more effectively.
Distributors play an equally important role for both retailers and vendors. “While retailers focus on selling Distributors add value for dealers by carrying
product, distributors can support them with efficiencies in logistics, added services like direct-to-consumer inventory for them, and through programs like
shipping, marketing and brand-building, and providing display solutions,” says Wayne Mayall, Director, Multimedia training, in-store P.O.P., and special events.
Division for Erikson Consumer in Baie d’Urfe, QC. “Distributors also bear some of the risk burden for the retailer by Distributors add value for vendors through
holding inventory, managing warranty processes and generally working towards making a brand successful.” their relationships with Canadian dealers, by
Adds Jason Lau, Marketing Manager for Cesium Telecom Inc. in Mont-Royal, QC: “Manufacturers mostly building brand awareness, and managing
prefer working with a distribution model, as this allows them to focus on their core competencies. They repairs and service.
generally do not have the relationships and networks to sell to many retail locations.”
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weight and shipping costs. But Tobin acknowledges its own challenges, Daoust observes. “The challenge
that the competitive advantage D&H gains from is to sift through the brands and find quality products
this slick technology will be fleeting. “The cruelty of that the Canadian market will embrace. A big part of
distribution is that when you come up with a new our job is to anticipate what the market will demand
efficiency, someone else will as well, and margins in years to come. We also need to be completely sure
keep getting compressed.” that any brand we represent is in alignment with our
Talk to just about most distributors, and they’ll company philosophy.”
tell you how challenging their role has become. “The Distributors put their reputation on the line
marketplace is much more competitive,” says Joel when they add a new brand, notes Steven Freytag,
Seigel, President and CEO of Gentec International in General Manager of the Consumer Division of Dorval,
Markham, ON. “The dollar fluctuates quite regularly QC-based SF Marketing Inc. “It’s very easy to find
and usually goes the wrong way. It’s more challenging brands,” says Freytag, whose division focuses on
to carry the inventories, because our customers have audio and home theatre in both the retail and custom
Gentec International operates from a 100,000-square-foot fully
computerized warehouse and distribution centre in Markham, ON. implemented just-in-time. We have to carry larger sectors. “What is difficult is finding brands that
“We run two shifts, starting at 7:30 a.m. and closing at midnight,” inventories without having the forecast or insight as dealers/integrators want. If we become the distributor
says President and CEO Joel Seigel. “We have full B2B capabilities to what might be coming down the road.” for a given brand, we are effectively giving it our
with over 500 customers.”
Adds Mike O’Connor, Executive Vice President stamp of approval.”
for Concord, ON-based Gem-Sen Holdings Corp.:
JUST IN TIME “More investment has had to be made to support
To a casual observer, distribution might seem like higher inventory levels, more staff infrastructure, and
a simple business: a distributor buys products from of course, the increasing costs of supporting buying “ The cruelty of distribution is
different vendors, stores them in a warehouse, sells groups, as well as national programs.” that when you come up with
them to retailers and ships them out on demand. a new efficiency, someone else
But look behind the scenes, and you see it’s much SOURCING will as well, and margins keep
more complex. These challenges notwithstanding, many distributors getting compressed.”
Distributors have to source products that say the opportunities are greater today than ever. “In Greg Tobin
dealers will be able to sell, and keep up with a rapidly recent years we have seen manufacturers transition to General Manager, D&H Canada
changing competitive and technological landscape. distribution,” comments Grant Daoust, Vice President
They have to add value for both vendors and of Trends Electronics International Inc., a Burnaby,
customers. Perhaps most important, they have to get BC-based distributor that targets the custom integrator
product to dealers quickly and accurately. Especially market. “We anticipate that this will continue to be a Distributors also have to make sure new lines
in Canada, with cross-border shopping opportunities growing trend. Many manufacturers are struggling to will remain viable beyond the short term. “There are
just a mouse-click away, they have to do all this while show a profit in the Canadian market with a subsidiary always brands available, but it’s harder and harder to
adding as little cost to the product as possible. model. We create a fixed cost of distribution, unlike the find relevant brands that are innovating and on their
D&H Canada is a case in point. Earlier this year, variable cost of a subsidiary or selling direct.” way up,” comments Troy Fargey, President of Hitfar
the company moved into a 100,000-square-foot fully Moreover, there are many brands that are Concepts, a Burnaby, BC-based distributor of mobile
automated warehouse with RF technology. From this looking for Canadian representation. But that poses accessories. “The wireless industry is maturing quickly.
facility, D&H sends shipments to dealers across the While there is still a handful of enterprising companies
country – and to dealers’ customers. While shipments doing new things, there is an overabundance of
to dealers account for most of D&H’s revenue, direct-to- me-too brands.”
consumer shipments account for most its transactions. Gem-Sen, which focuses on the 12V market,
“ We are always trying to do the
“If a customer orders online from an e-tailer by absolute best job with the lines we is cautious when it comes to adding new lines,
5:30 p.m., the order is automatically sent to us by EDI, currently carry, before looking at O’Connor says. “We are always trying to do the
and is guaranteed to ship that day,” Tobin says. “It’s brand expansion.” absolute best job with the lines we currently carry,
made to look like it left the e-tailer’s warehouse. Our Mike O’Connor before looking at brand expansion. We are not
value is our ability to service our customer’s customer.” Executive Vice President, looking to take on lines for one to two years, then
Instead of loading products into boxes, D&H uses Gem-Sen Holdings Corp. discard them and move on to the next line.”
special machinery to wrap shipments to consumers Pretty well all distributors say they’re regularly
in a corrugated material. This minimizes dimensional presented with new brand opportunities. “There
16 | www.wifihifi.caRETAIL BIZ
seem to be more and more tier two and three how to grow opportunities in these categories.
brands knocking at our door every day,” says Kyle Education is a big part of the challenge. Many new
Duszynski, Vice President, Brand Management at Curve categories have a culture all unto their own.”
Distribution Services Inc., a Calgary-based distributor of Crowdfunding sites have become a fertile
portable and mobile products. “But finding someone source of new brands for some distributors. Daoust,
who is differentiated and has an organizational vision Fargey and Mayall all report that Kickstarter is a
that aligns with ours is a lot more rare.” good source of leads. But Duszynski has a different
Dealer requests can be an important source of take. “Crowdfunded organizations tend to be built
new brands and lines. Comments Freytag: “We like from the ground up to follow a direct-to-consumer
to speak with our dealers and integrators, as well model, which rarely leaves room for a retailer or
A key value-add that Evolution Home Entertainment Corp. provides
as our sales agents and reps, and learn what new distributor. Most crowdfunded companies we have
for its customers is the Savant Experience Centre in downtown
technologies we should be looking at or what brands spoken to simply aren’t ready to handle large-scale Toronto. Last year, Evolution hosted 200 visits to the centre, where
we should be targeting.” retail distribution.” customers got to experience a full Savant Smart Home System
Sometimes distributors target specific brands. installed in a luxury condo.
Gentec landed three key lines that way: Klipsch audio
products, Alpine car audio and Manfrotto tripods challenges, you can’t be battling with somebody
“ Exclusivity allows for better and photo accessories. “We pursued Manfrotto for 10 else going into the same account. All you’re doing is
management of a brand by years,” Seigel elaborates. “We had a relationship with whittling down your own position. It has worked in
controlling pricing policies, regular Klipsch because of their acquisition of API. [Audio certain cases, like SanDisk and Bushnell, where we’ve
inventory fulfillment and focused Products International manufactured speakers under split up the market and it’s been really clean and
marketing efforts.”
the Energy and Mirage brands, and Gentec sold worked well for years.”
Wayne Mayall Energy AV cables under license from API.] That gave Many distributors insist on exclusivity because of
Director, Multimedia Division,
Erikson Consumer
us an entrée. We’ve been in the car audio accessory the time and money they invest in building a brand,
business for 10 years. We were looking to add to the and because they want to make sure that marketing
portfolio, so we approached Alpine.” messages are consistent. “For us, exclusivity is almost
always a deal-breaker,” Duszynski states. “We invest
Distributors in other countries can also provide EXCLUSIVITY so much into launching our brands that we need all
leads. “It is not unusual for us to get a call from an Because of the close identification of distributors 35 million Canadians buying them to see a return.
overseas distributor of one of our brands, to discuss and their brands, exclusivity is important, Seigel says. For dealers and vendors, it’s important that there’s a
what is going on in their markets,” says O’Connor. “Typically we don’t like to carry competing brands. We consistent marketing message and pricing strategy
“A lot of opportunities come to light through represent ourselves as Alpine of Canada, as Klipsch of across the country. Otherwise you could have one
ongoing dialogue with like-minded companies Canada, Sigma of Canada, Manfrotto of Canada. We distributor that wants to position the brand as a
around the globe.” have to be focused on their categories. clearance item while the other is trying to maintain a
Major tradeshows like CES are another source “Exclusivity is not a 100% must-have, depending MAP strategy. Nobody wins when that happens.”
of new lines, as are tradeshows with a tighter on how we cut up the market,” Seigel continues. Exclusivity is especially important in Canada,
focus like CEDIA for the custom integrator market, “When you look at a marketplace of 35 million says Mayall of Erikson Consumer. “While the country
InfoComm for the commercial market and CTIA for people, the physical size of our market, the logistical is physically large, our population is less than the
the wireless market. “The odd time you come up with state of California,” he observes. “Exclusivity allows for
a little nugget,” Seigel says. “We got into the digital better management of a brand by controlling pricing
picture frame business that way. We came across the “ Manufacturers mostly prefer policies, regular inventory fulfillment and focused
opportunity at an out-of-the-box tradeshow. We rode working with a distribution marketing efforts.”
the wave while it lasted.” model, as this allows them to But Jon Zabel, Director of North American
It’s important for distributors and dealers to look focus on their core competencies. Sales for AVAD, says exclusivity arrangements are
at new categories that connect with their current They generally do not have the becoming less common; and distributors have to
relationships and networks to
business direction. “We are always educating ourselves adapt. “Years ago, a distributor was able to satisfy the
sell to many retail locations.”
in new categories, and understanding how the lines business needs of the vendor for a given territory.
Jason Lau
between categories continue to get blurred,” Daoust Today, the demand for share is forcing vendors
Marketing Manager,
elaborates. “As a distributor, it is our responsibility to Cesium Telecom Inc. to look for multiple outlets inside of territories.
bring new categories to our dealers, and understand Competition from other distributors exists with
18 | www.wifihifi.caRETAIL BIZ
all lines, in all territories. It’s just the nature of the Similarly D&H Canada prides itself on being able camera, notebook and cable, we’ll gladly take care of
business. We work hard to be a solution destination to service small retailers. “Our number-one value-add that. We help the independent retailer get product
for our dealers. We differentiate ourselves with for customers is that we are flexible, and adapt our with minimum order sizes that make sense.”
programs and services that help the dealer make programs to their needs,” Tobin states. “Our number- Daoust of Trends says personalized service from a
more money.” two is speed to market. It’s not the big that beat the capable sales team, transparency and quick response
small; it’s the fast that beat the slow. are all critical value-adds. “Supply chain management
ADDING VALUE has become more and more relevant in the last few
There are many ways that distributors differentiate years. Many dealers have moved towards a just-in-
themselves. The basics – processing and shipping time strategy. We have made significant investments
orders accurately and quickly – are demanding “ Vendors have told us that our in our organization, in terms of systems, warehousing,
enough; and CE distributors use impressive service team was able to conduct logistics and personnel to support supply chain. We
technology and processes to make sure that happens. repairs on their equipment more believe this is paramount to our business partners.
accurately than they could, and
But in a sense, this is table stakes. There are many “We also invest in our sales team across the
in many times, faster as well.”
other ways that distributors add value for customers. country,” Daoust continues. “This has been part
Steven Freytag
For AVAD Canada, a key value-add is the ability to of our strategy since day one. We recognize that a
General Manager, Consumer Division,
accommodate CIs who need product for the coming SF Marketing Inc. Web-based ordering portal is important, but having
week’s projects. “We stock everything we sell,” Zabel in-field sales representatives to service our accounts
says. “We offer a will-call solution for dealers who is ultimately important. We are very proud of our
need only one of something. We basically act like their sales team and the relationships they have with our
warehouse. Most of our dealers come into the branch “Regardless of size, every customer receives business partners.”
locations weekly to pick up products they need for a dedicated rep,” he continues. “If you’re a small If a distributor wants to sell into a retailer, it has to
specific jobs.” storefront in Wawa, ON, and you need to order a help sell through, Seigel maintains. “We partner with
We bring fast moving consumer
electronics to Canadians; serving as
the exclusive Canadian distributor
for a focused portfolio of consumer
electronics brands. We provide
sourcing, logistics, fulfillment,
category management and brand
marketing services. We have
coast-to-coast sales representation
to provide individual attention to
every account, large or small.
Our connected approach to distribution
delivers superior results.
CONNECT WITH US TODAY!
info@curvedistribution.com
877.795.5325 - Toll Free
curvedistribution.comRETAIL BIZ
our customers when we sell in; and that means we “Many brands are looking to grow outside of the U.S., a challenge for some U.S. suppliers to understand
have to partner in selling out. If it doesn’t work, we’re and Canada is perfect for that.” that the Canadian market is different than their
going to be there to insure they’re not on the hook. It starts with understanding what your vendors home market,” Daoust comments. “Strategies that
That’s a key value-added. We provide the tools for our want to accomplish, says Tobin of D&H. “They might work in the U.S. often do not translate with the same
retailers to sell. That could be training, in-store P.O.P., be looking for volume or revenue. They may want success in the Canadian market. Canada is a very
and retail ad support.” to diversify their customer base so they’re not so large country in terms of geography, but has a small
Road and training shows are another important exposed. A vendor may use us for a specific channel population. Shipping costs, organizing training events
service, especially in the CI sector, where factory like education or government, then have us look at and transactional costs are higher in Canada as a
experts can show integrators how their products their mass-merchant program.” result. We have to convey these challenges to our
should be implemented in the field. SF Marketing and One immediate benefit is the distributor’s suppliers, especially those who are entering Canada
Trends are both active in this arena. relationships with existing customers. “What we offer for the first time.”
is our expansive customer base and our solid personal Even so, vendors’ experience in other markets can
relationships with those retailers,” comments Fargey help their Canadian distributors, Lau maintains. Both
of Hitar. “To get a customer to try a new brand, there parties benefit if this dialog flows in two directions.
“ Some vendors don’t realize just is no replacement for relationships based upon trust “Our vendors rely on us to grow their presence in the
how important Canada is until we and respect.” Canadian market, so we become their eyes and ears
get their products in front of
Adds Curve’s Duszynski: “For many of our brands, simply because we are closer to the consumer,” he
big-name retailers and they see
we are their largest international distributor. Some explains. “However, due to the similarities between
the sales potential.”
vendors don’t realize just how important Canada the Canadian and the American markets, we also ask
Kyle Duszynski
is until we get their products in front of big-name vendors who are active in the U.S. to share their data
Vice President, Brand Management,
Curve Distribution Services Inc. retailers and they see the sales potential.” on the American market.”
Moreover, a Canadian distributor can help
overseas vendors prepare their products for our
market, and create local demand. “We work with
Another CI-oriented distributor, Concord, ON-based every one of our brands to develop packaging
Evolution Home Entertainment Corp., has a unique that is suitable to Canadian bilingual packaging
value-add; the Savant Experience Centre in downtown law,” Duszynski says. “We also have partnered with
Toronto. Installed in a luxury condo in the heart of the several vendors to create products that are specific
entertainment district is a full Savant automation system. to Canada. Beyond that, we develop and implement
In addition to lighting, climate, entertainment and channel marketing strategies, pricing strategies and
security, the system is used in a simulated boardroom advertising programs.”
so that visitors can see the business applications. CIs can Marketing can extend far beyond providing co-op
bring prospective clients to the centre. dollars for dealers. “With most of our distribution
Last year, Evolution hosted 200 visitors, says contracts, there’s a mandatory commitment for
One of SF Marketing’s value-adds for its dealers is annual roadshows,
Brad Middleton, Savant Canadian Brand Manager. promotion and brand-building,” Seigel says. “With where vendors like Brad Tabor from OmniMount present seminars
“We believe strongly in creating opportunity for Klipsch, we’re a global partner with Maple Leaf Sports and training for SFM’s customers in the CI sector.
our dealers, rather than thinking of them as the and Entertainment, and also with Live Nation. That’s a
opportunity,” Middleton comments. “We invest major commitment that goes beyond co-op.” Another important value-add provided by full-
heavily in making our products successful for our Vendors often look to distributors for insight into service distributors is warranty and repairs. “We try
dealers, through training, designer and architect the Canadian market, not just for marketing, but for to offer our vendor partners a full-service turnkey
events, and targeted marketing.” product development. Seigel says Gentec’s vendors solution,” says Freytag of SF Marketing. “Vendors have
will sometimes provide product samples, and ask told us that our service team was able to conduct
VALUE FOR VENDORS how they should be tweaked for the Canadian repairs on their equipment more accurately than they
Distributors add as much value for vendors as they market. “We have specialists who manage each of could, and in many times, faster as well.”
do for retailers. Canada can be an important first step our divisions,” he elaborates. “We’re seeing a lot As in many areas of human endeavour, the
for brands that are venturing outside of their home more Asian vendors who are reaching out as they’re essentials of distribution can be distilled to a simple
markets. “Although our neighbours south of the developing product.” recipe: make life easier for your customers and
border often overshadow us, the Canadian market Sometimes vendors have to be educated on the suppliers. But like other aspects of life, there’s more to
is not negligible,” observes Cesium Telecom’s Lau. intricacies of the Canadian market. “It is sometimes executing a simple recipe than first meets the eye.
20 | www.wifihifi.ca
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The SSP6™ Multiducer™ is Now Available. Experience it at any of AVAD’s 23 North American locations.
866.523.2823 | www.avadcanada.ca
Best Brands | North American Distribution | Dealer Education | Experience CentresHEAD-TO-HEADS: 3 Rounds
of Competition in Wireless
BY CHRISTINE PERSAUD The Story
The debate continues on the state of the
HEAD-TO-HEAD COMPETITION IS A TYPICAL, HEALTHY PART OF ANY INDUSTRY. And it’s certainly wireless market in Canada, the need for
the case in the telecommunications business. a fourth national carrier, and the right
On the provider level, the incumbent carriers have been openly duking it out for ages. But since the approach for fostering change.
Wireless Spectrum Auction of 2008, the competition has gotten even more intense, with two distinct sides: Mobile video viewing is on the rise, and
Bell, Rogers, and Telus on one, and the new carriers on the other. Do we need a fourth national carrier? service and content providers like Bell and
Rogers find themselves in competition with
On a content level, there’s an interesting conundrum with video, as the incumbent carriers must support
over-the-top streaming services like Netflix.
over-the-top video offerings by allowing access to competing services through their mobile pipelines. How do
Mobile phone accessories are found
you effectively compete with services that you must also support?
everywhere from clothing to grocery
Third, on a retail level, the wireless accessories market is expanding into new territories, making it a
and camera stores nowadays, which
particularly attractive category for every type of retailer, from the grocer to the high-end apparel shop. puts dedicated wireless retailers in direct
For the independent wireless retailer, it means considering everywhere from Henry’s to Holt Renfrew as competition with even more shops than
a direct competitor for the high-margin accessory sale. ever before.
In this article, I’ll delve a little deeper into each of these three key areas of competition in wireless.
22 | www.wifihifi.caMOBILE WORLD
ROUND ONE: “Yes, a fourth national carrier is desirable,” said Lacavera says a partnership with Mobilicity
Big Three Carriers vs. Change Leonard Waverman, Dean, DeGroote School of could help.
Business, McMaster University, “but it’s not going “[The incumbents] are very dismissive of WIND’s
“Look to your left. Look to your right. In five years, to happen. The government has dug itself into a place in the market,” adds Lockie. “We’re relying
only one of us will be here,” said Alek Krstajic, formerly deep hole.” very heavily on the CRTC, and are hopeful given the
president of Public Mobile, during a panel at the At the Summit, Tony Lacavera, Chairman of circumstances that they’ll act.”
Canadian Telecom Summit five years ago, shortly WIND, noted that the carrier currently has more than
after services were launched. He was talking to 735,000 subscribers, and reported “record” sales in
representatives from Mobilicity and WIND, which also April and May. WIND’s Chief Regulatory Officer Simon
launched services following the spectrum auction Lockie pointed out that Rogers and Bell lost 75,000 “ The challenge we face is securing…
of 2008. And he was right on the money. This year, subscribers in the same quarter. spectrum at terms and value levels
that the business of WIND can
Telus acquired Public Mobile, while Mobilicity’s future “Over the past 18 months, we have seen our
support, and within the timeframe
remains in limbo as the Canadian Government rejected primary investor Vimpelcom apply for control of
that the spectrum is needed to
Telus’ bids to acquire the struggling company. WIND Mobile and, after a protracted dialog with
meet LTE demand.”
Canadian government, subsequently withdraw its
Tony Lacavera
application as it was not approved,” noted Lacavera.
Chairman, WIND Mobile
“This control and ownership uncertainty has adversely
affected funding and investment in WIND over the
“ Yes, a fourth national carrier is
desirable, but it’s not going to
past two years.”
happen. The government has dug WIND has plans to add an improved Canadian Vidéotron, meanwhile, is also lobbying for
itself into a deep hole.” roaming offer and worldwide roaming rates; upgrade that fourth carrier job. And the company has a
Leonard Waverman antenna sites to dual-carrier HSPA+; fill in coverage leg up on WIND, having spent $233 million in the
Dean, DeGroote School of Business, gaps and black spots by adding sites and expanding 700 MHz auction, bringing its total spectrum and
McMaster University its footprint; and add new markets, including one of network spend up to $1.6 billion, with licenses for
the latest, Brantford, ON. cellular frequencies in Ontario, Alberta, BC, and
But to rollout LTE services, Lacavera says, Quebec. Dion noted in his keynote speech at the
WIND must acquire additional spectrum, especially Summit that Vidéotron is “ready, willing and able to
While still standing, WIND hasn’t quite found its since the company did not secure financing for become Canada’s fourth wireless competitor,” but
place, nor the spectrum and financing it needs to fully that critical 700 MHz auction. There’s potential, he only “under the right conditions.” Dion mentions
move forward. Vidéotron President & CEO Pierre Dion is adds, with the upcoming 2,500 MHz, AWS-3, and the possibility of consolidating with one or two
hinting strongly at the Quebec-based carrier’s hope of 600 MHz auctions. of the “undercapitalized new wireless entrants. If
becoming the country’s fourth national wireless carrier. completed,” he said, “this would allow us to almost
The Canadian government continues looking triple our customer base.”
for a way to foster a better competitive landscape While we wait to see who takes the next punch,
in Canada, but the back and forth between carriers the CRTC is hoping its Wireless Code, which become
makes it difficult to determine what would be the effective this year, will help kick-start change, with
Industry Minister James Moore
right move. has promised that the upcoming requirements like clearer contracts and the ability for
Some believe what’s needed is a fourth national AWS-3 band auction will boast a simple customers to cancel without penalty after two years.
carrier. Would that benefit Canada in the long and streamlined process that includes But the Code, while helping in some ways, has hurt in
set-asides for new carriers.
term? The overwhelming sentiment in a panel on others. The cost of basic wireless service plan pricing
the Competition in Telecom at this year’s Canadian has apparently gone up.
Telecom Summit in Toronto was that having a fourth A study recently conducted by Wall Report
carrier may not be the answer. and commissioned by the Canadian government,
Roger Ware, Professor of Economics at Queen’s found that the average price for basic service is
University, opined that while it might help lower “The challenge we face,” explains Lacavera, “is now $35.70 compared to $30.71 last year, and
pricing in the short run, it would not necessarily have securing any one of these sources of spectrum at $32.73 six years ago. Even medium-volume plans
long-run value to society. “All oligopolies possess terms and value levels that the business of WIND can have increased from $44.86 to $45.26. These have,
market power,” he said. “That’s just their nature. support, and within the timeframe that the spectrum however, dropped drastically from the exorbitant
And the possession of market power is not illegal.” is needed to meet LTE demand.” price of $60.81 in 2008. Most of the positive results
24 | www.wifihifi.caYou can also read
