Cindy Fu

Recently in the summer, Verizon Wireless, which is the second largest mobile network operator in the U.S, announced its interest in expanding their assets by entering the Canadian marketplace.  Right away, the big three wireless network providers in Canada told their customers that if Verizon were to enter the Canadian telecom industry, it would be costly, in a sense of lost jobs and unfairness. The big three lobbied that there should be the federal government should place a barrier to entry on this foreign company.

The truth is, Canadians “pay some of the highest prices for some of the worst telecom services in…world” (Chan) Allowing a foreign telecom company to enter the Canadian market will ensure enough competition so that the rates of The Big Three will be reasonable. Competition allows the consumer and sellers to meet at equilibrium, that will adjust the price accordingly, and both the consumers and sellers will be happy. The narrow mindset of Bell only cutting prices and putting a cap on additional charges on plans because of the said feedback from customers when they were instructed by CRTC is fairly misleading. (Laudrantaye, The Globe and Mail)

Sources:

LADURANTAYE, STEVE . “Bell to cut roaming fees by half – The Globe and Mail.” Home – The Globe and Mail. N.p., n.d. Web. 5 Oct. 2013. <http://www.theglobeandmail.com/report-on-business/bell-to-cut-roaming-fees-by-half/article14333517/>.

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