Canada to finally get iPhone, but questions persist

Computerworld Canada - Rogers Communications Inc. is finally bringing the iPhone to Canada, but questions around the company's data plan and how it will support the heavily hyped Apple gadget continue to loom, said analysts.

As the only Canadian carrier using the GSM network, Rogers has always been the inevitable choice of carriers. Last October, a leaked Rogers advertisement surfaced that indicated that Canadians would see the iPhone on store shelves before the end of 2007. Now, several months later, Rogers has set the wheels in motion for the device's launch.

"We're thrilled to announce that we have a deal with Apple to bring the iPhone to Canada later this year," Ted Rogers, the telecom giant's CEO, said in a statement. "We can't tell you any more about it right now, but stay tuned."

The lack of any specific details now has many industry analysts speculating on how Rogers plans to handle the launch and why the popular device has taken so long to arrive. Most wireless watchers attributed the iPhone's delay to Rogers' high data prices. The iPhone hit Europe last November with services plans starting at roughly $70 (Canada) per month. According to Rogers' current data fees, a similar offering would cost its customers at least double that price.

The fact that Rob Bruce, president of Rogers' wireless division, told analysts during February that "We're not fans of unlimited plans" provided strong support for this high data plan theory. But according to Michelle Warren, an analyst at London, Ontario-based Info-Tech Research Group, the iPhone news might indicate Rogers is moving away from this stance.

"Bell's got unlimited usage for the HTC touch phone, so it wouldn't surprise me if Rogers and Apple have come up with some sort of iPhone-specific plan," she said. "Apple was pretty hesitant about releasing the iPhone without an unlimited data plan, so they must have struck a delicate balance. If there's some sort of unlimited or really attractive data plan, that would entice users to consider it as well."

Amit Kaminer, an analyst at tech research firm The Seaboard Group, said he expects Rogers' data plans to be drastically different for the Apple device.

"We're going to see Rogers changing their data plans," he said. "You're not going to see an unlimited plan, but instead, bigger buckets. Maybe a 5GB data plan, which is kind of like an unlimited plan for the average user."

Most analysts project the iPhone to start rolling out sometime this summer, coinciding with Apple's expected release of an updated, third-generation model that runs on 3G networks.

"The 3G version of the iPhone will most likely be coming in June," said Michael Rozender, an Oakville, Ontario-based consultant who specializes in wireless technology. "Rogers is actually rolling out its full 3G capable network as well, so it would be an attractive fit to launch with the new G3 iPhones."