Wireless spectrum battle intensifies as Ottawa battles the “Big Three”
Image by Mobilicity via the Cellular Guru
The battle for cellphone frequencies continue to rage as “The Big Three” -Rogers, Bell and Telus- remain entangled with the federal government in a struggle for new wireless spectrum.
Now, Canadian consumers must choose between the phone giants and the Canadian government.
On one side, the Big Three have emphasized that by gaining greater spectrum, they would be able to create jobs while defending the Canadian industry from foreign mega-corporations such as Verizon.1
However, the federal government continues to affirm that “Canadians pay some of the highest wireless rates in the developed world”. 1
On Monday, September 23rd, Industry Canada published a list of bidders for the telecom spectrum; a list that did not include any foreign companies. The federal government supported this list, highlighting that “our largest wireless companies hold 85% of the airwaves”. 1
Currently, the government has placed restrictions on the Big Three: they are prohibited from buying the spectrum from the current bidding process.
Using perceptions based on parity, difference, and frame references, the Big Three has maximized its target profit and supplier power, effectively maintaining a monopoly in the Canadian Telecommunications Market.2 Thus, it is imperative that they are prohibited from competing for the newly released spectrum, to help promote competitive parity, which will ultimately benefit Canadian consumers.
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