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  • Bell, Rogers and Telus Attempt to Keep Verizon Out of Canada


    For several decades, Canadaís mobile phone service industry has been divided into three companies: Bell, Rogers, and Telus. However, Verizon, which is the number one wireless carrier in the United States, is looking into expanding into Canada. The news could potentially leave Canadian mobile communication companies in a bad spot causing them to band together to keep Verizon out of the country.

    In an effort to keep Verizon out, they want Canada to look less appealing for the wireless mobile carrier. The three companies have banded together and started a public ad campaign to get Canadaís anti-consolidation laws abolished. As it stands, none of the major Canadian companies can purchase smaller companies to expand their power. However, the same rules donít apply to foreign companies. Since the three major companies in Canada canít buy up all the smaller companies, Verizon can come in and buy them all to create a fourth major mobile communication entity. Abolishing the laws would allow the other companies to bid on the smaller companies too, thus raising the pricing and making the move a lot less affordable.

    The three mobile phone companies also want Canada to allow bids on a broader spectrum range like the one allowed in the U.S., which would increase service options. Whether or not the government agrees to these changes will be a long debate but if Verizon manages to act fast, it may be able to take over before any changes are made. Weíll have to wait and see if Verizon is able to expand into Canada or if the three Canadian companies can get the changes made fast enough.

    Source: The Verge
    This article was originally published in forum thread: Bell, Rogers and Telus Attempt to Keep Verizon Out of Canada started by Akshay Masand View original post
    Comments 5 Comments
    1. pkmaximum's Avatar
      pkmaximum -
      And here I thought all Canadians were friendly.
    1. bigbaba's Avatar
      bigbaba -
      So the big 3 in Canada want to stifle competition by crying to the Queen? Why not make yourselves competitive so the foreign company can't afford to invade?

      What is even more ironic is that the big 3 were able to muscle these "smaller companies"; who they are worried Verizon will buy; from purchasing spectrum effectively neutering their expansion ability a year ago.
    1. AGIAMIU's Avatar
      AGIAMIU -
      Quote Originally Posted by bigbaba View Post
      So the big 3 in Canada want to stifle competition by crying to the Queen? Why not make yourselves competitive so the foreign company can't afford to invade?

      What is even more ironic is that the big 3 were able to muscle these "smaller companies"; who they are worried Verizon will buy; from purchasing spectrum effectively neutering their expansion ability a year ago.
      You guys you don't know what are you talking, here is not about us Canadian being friendly, is only about money. All these 3 big Canadian provider don't want Verizon because of Verizon good voice and data plans. If Verizon comes ,how these 3 carrier could continue to rip us off.
    1. noopykat's Avatar
      noopykat -
      Quote Originally Posted by AGIAMIU View Post
      You guys you don't know what are you talking, here is not about us Canadian being friendly, is only about money. All these 3 big Canadian provider don't want Verizon because of Verizon good voice and data plans. If Verizon comes ,how these 3 carrier could continue to rip us off.
      That is SO TRUE. The cost of Wireless services are do expensive because of secret price fixing and if Verizon or for that matter ANY foreign Carrier with deep pockets is allowed to come into Canada, the market will change, for the good. A Carrier like Verizon can afford to come in with aggressive pricing and lose money for 6 to 12 months and write it off as the cost of doing business in a new market without the Shareholders "jumping ship". The "Big 3" will end up running expensive "smear campaigns" before they drop their prices because that is what the Shareholders will expect. Eventually they will lower their prices to be more in line with Verizon and then gradually over time they will stop complaining and realize that with lower, more competitive pricing, their subscriber base will have increased and then they will have realized so did their revenue. I feel that the Canadian Market has so much more potential for growth and that lowering the prices will only increase the number of subscribers who can now afford service.

      Remember that this is just the opinion of one Canadian. I was involved in the Wireless industry from about 1987 to around 1994 and I saw Wireless in Canada in its infancy and no one complained when AT&T Wireless owned a big chunk of what is Rogers Wireless today.

      I think this could be a good thing for us if it is allowed to happen. If someone has an opinion to the contrary, I have an open mind...
    1. djarkiz's Avatar
      djarkiz -
      Quote Originally Posted by noopykat View Post
      That is SO TRUE. The cost of Wireless services are do expensive because of secret price fixing and if Verizon or for that matter ANY foreign Carrier with deep pockets is allowed to come into Canada, the market will change, for the good. A Carrier like Verizon can afford to come in with aggressive pricing and lose money for 6 to 12 months and write it off as the cost of doing business in a new market without the Shareholders "jumping ship". The "Big 3" will end up running expensive "smear campaigns" before they drop their prices because that is what the Shareholders will expect. Eventually they will lower their prices to be more in line with Verizon and then gradually over time they will stop complaining and realize that with lower, more competitive pricing, their subscriber base will have increased and then they will have realized so did their revenue. I feel that the Canadian Market has so much more potential for growth and that lowering the prices will only increase the number of subscribers who can now afford service.

      Remember that this is just the opinion of one Canadian. I was involved in the Wireless industry from about 1987 to around 1994 and I saw Wireless in Canada in its infancy and no one complained when AT&T Wireless owned a big chunk of what is Rogers Wireless today.

      I think this could be a good thing for us if it is allowed to happen. If someone has an opinion to the contrary, I have an open mind...
      I am Canadian and AGREE 100%, I hate how expensive data packages are in Canada, $40 for 500mbs-1GB?? It sucks I hope this happens =)