Canadian cellphone consumers are paying some of the highest rates in the world, but what is there to be done about it?
In January 2014, the Canadian Government will be auctioning off the elusive 700 MHz spectrum, which is sought after by the telecommunication industry. All potential bidders needed to apply before September, including foreign investors. As Andrei Burlacu pointed out, it is very costly for foreign communication companies to enter Canada. Unfortunately, after lots of speculation about Verizon’s possible break into the Canadian market, Verizon is not a potential bidder in the upcoming 700MHz election.
A foreign telecommunications company entering the Canadian market could have lowered the current Canadian cellphone rates due to increased competition. Despite the big three (Telus, Bell, and Rogers) forming a coalition against new entrants, their opinions are single sided. These companies claim that a new entrant into the market will result in a loss of jobs for Canadians and “will have massive consequences” (Mobile Syrup). The flip side to this coin is the cellphone market becomes increasingly competitive in a normally stable market. Increase competition will lead to better offers for Canadian cellphone consumers.
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