Comm101

Earlier this year the government announced that it would be auctioning off a vacant wireless spectrum. This was seen by Verizon as an opportunity to gain a foothold and expose a big market.

A move that threatened the stranglehold Bell, Telus and Rogers have on the market , and one that led them to actively and successfully oppose Verizon’s expansion. It is important to note that customer satisfaction with these companies is low given the expensive contracts and sub-par service on offer. However consumers have little choice as other privately owned startups are too small to compete with their larger counterparts. This gives the big three a staggering 90% of the market share.  

It’s unfair to allow firms to monopolize the market. The spectrum is owned by the public and therefore should be sold by the government keeping the public’s best interests in mind. Ie: Auctioned off at the highest price (it will be added to the government budget), with the aim of increasing competition.

This is unethical behaviour as instead of trying to beat the competition through innovation these companies are simply driving them out and thus placing taxpayers at a disadvantageous position.  

Related reading and citations-

http://goo.gl/inj4Aq

http://goo.gl/8ajJgi

http://goo.gl/0MQZcy