MONTREAL - Telecom rivals BCE Inc. (TSX:BCE) and Telus (TSX:T) say they will work together to develop third-and fourth-generation wireless networks.
The companies said they are each working to launch the 4G LTE technology as it becomes available by early 2010. In the interim, they have entered a network sharing agreement that will develop High Speed Packet Access (HSPA) technology, a version of the GSM technology used by Rogers Communications (TSX:RCI.B).
The agreement allows both companies to lower the cost and increase the speed of the build-out of the national network.
It also could allow them to run trendy new smartphones like the iPhone and Blackberry Bold, which are now only available in Canada with Rogers.
Telus CEO Darren Entwistle said the technology evolution is a win for Canadian consumers.
It will provide greater wireless functionality, including international roaming, fast network speeds and the latest handsets and devices.
Bell Canada chief executive George Cope said the investment will allow customers to choose between its existing CDMA technology and HSPA, which is becoming the main platform outside North America.
The companies have selected Nokia Siemens Networks and Huawei to provide equipment for the next generation wireless network.
Telus said it expects to spend $2.65 billion in 2008 and 2009 on total wireless capital requirements, including the HSPA build-out. Bell has not indicated its capital expenditure plans.
