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THE CANADIAN PRESS

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MONTREAL - Competition is expected to heat up in Canada's cellphone market as rivals BCE Inc. (TSX:BCE) and Telus (TSX:T) team up to jointly develop a faster national wireless network.

The companies said yesterday they are each working to launch a fourth-generation network using technology that they say will be the new global standard in the coming few years.

By the 2010 Olympic Games in Vancouver they plan to first install high-speed networks, using a version of the global system for mobile communications -- GSM -- already used by industry leader Rogers Communications (TSX:RCI.B) and many others around the world.

Building a national network estimated to cost between $800 million and $1 billion will allow all three Canadian wireless giants to compete on similar platforms that support the newest handsets and fastest services.

By working together in an extension of a partnership started in 2001, Bell Canada and Telus will reduce their costs and speed up the startup of the new network. It will overlay existing 850 and 1,900 MHz frequencies rather than use newly acquired spectrum.

Some of the infrastructure will also be used to eventually launch of a network using technology known as LTE, for long term evolution.

Telus CEO Darren Entwistle said the shift to the world standard will be a win for Canadian consumers.

It will provide greater wireless functionality, including international roaming, fast network speeds and the latest mobile devices.