As the desire for a fourth large telecommunications competitor to enter Canada emerged, four global companies (AT&T Vodafone, Telenor and Verizon) showed interest. While Canada’s marketplace drew the attention of large telecommunications companies, none of the companies so far, have decide to enter. In fact, Version and AT&T have completely abandoned the notion, claiming that “there is not enough room for four players in Canada.”

The loss of desire to enter Canada’s market, can be analyzed using aspects from Porters Five Forces. One of the largest persuaders against the entry of a new telecommunications company into Canada includes the numerous barriers of entry that Rogers, TELUS and BCE have implemented. These pre-existing companies have launched aggressive public campaigns influencing Canadians to act against the attempted movement. While Canadian telecommunications companies fight off the international competitors with public announcements and influential movements, a large entry fee into the Canadian market and large start-up costs will also influence competitors. A starting bid of $700 million dollars to enter Canada was reported by Verizon before the discussions closed. A large entrance fee and the huge impedance from domestic competitors are barriers to entry that drive away the competition from entering the telecommunication field in Canada.

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http://www.bnn.ca/News/2013/9/17/ATT-looked-at-entering-Canada-nixed-idea.aspx

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