Although economists often disagree with one another, most agree that restrictions to foreign market are disadvantageous. The Canadian telecommunication market is without a doubt an oligarchy; being controlled by the big three (Roger’s, TELUS, Bell), who are all heavily protected from foreign competition, the state of this Canadian market is identical to that of China, unopened to foreign direct investment for foreign capital. This does not only produce deadweight loss, but according to Wind Mobile backer Naguib Sawiris, it causes inefficiencies in the market. Since the companies that are protected are in no danger from foreign competitors, they can afford to have expensive cost structures and lack innovation.
With that in mind, I find the decision of Naguib Sawiris to invest $500 million in a Canadian Telecommunication service a poor decision. He said that he is not in the market to be the good guys, but to make money, however it is made impossible for him to compete with the big three. His entrance in the Canadian market has decreased the price of services by a third, yet his revenue is negligible compared to the gain the revenue gains from his entrance. So I wonder was it poor market research before entering the market that caused this ill made investment or simply his underestimation of the Canadian restrictions.