Recently Verizon announced their decision to stay out of Canada, in what would have been a major event for the Canadian telecommunications industry. Currently the Big 3 Canadian telecom providers, Rogers, Bell and Telus occupy 90% of the industry’s market share. The government has been avidly trying to increase completion in the industry as Canadians pay among the world’s highest fees for cell phone service. However, there is a dilemma. Should the government allow foreign companies to invest and expand in Canada, thus compromising the interests of Canadian companies? Does the government even have a right to interfere with businesses.

Well, there are positives and negatives to allowing large foreign companies establish themselves in Canada. Consumers would definitely benefit. The scale and capital Verizon would be able to challenge the market dominance of the Big 3. Consumers would have more choice and prices of cell phone plans would likely drop as a result. Yet, many Canadians are against yet another American corporation entering Canada. In a poll conducted by Nanos research, 70% of respondents said Canadian companies should be favored when the Government was auctioning wireless spectrum. For now, this can only be seen as a victory for the Big 3 in Canada, as consumers will have to continue to pay a premium for service.

http://www.crtc.gc.ca/eng/publications/reports/PolicyMonitoring/2012/cmr5.htm

http://www.engadget.com/2013/09/03/verizon-shelves-canadian-expansion/