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07-29-2013, 12:12 AM #1
Bell, Rogers and Telus Attempt to Keep Verizon Out of Canada
For several decades, Canada’s 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 Canada’s 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 don’t apply to foreign companies. Since the three major companies in Canada can’t 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. We’ll 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
07-29-2013, 12:16 AM #2
And here I thought all Canadians were friendly.
07-29-2013, 12:59 AM #3
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.
07-29-2013, 07:25 AM #4
07-29-2013, 09:32 AM #5
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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...
07-29-2013, 11:41 AM #6