The blog post “The Big Three-Bell, Rogers, Telus vs. Verizon” written by Cindy Fu mentioned that the US mobile network operator Verizon Wireless is planing on expanding its service into Canada. The three respond to this as “possibility of unemployment of Canadian, and unfairness”, but I have a similar opinions as Cindy Fu.
As Verizon enters Canada, it will increase the competitiveness of telecom industry in Canada. As everyone knows, the rate of com
munication is really high. But, when more competitors emerge, price will drop since that telecom industry is elastic, a small increase in price will cause the customers to turnover to other companies. So, in order for the telecom companies to increase their revenue, they will either have price reduction, for example cheaper rate so that customers will be willing to stay with the same company, or they will provide better service, for example free data give away.
It is clear that when more competitors emerge, customers will directly benefit for it. But, from the Canadian government’s point of view, it will not be happy for foreign companies to enter Canada since this means the Canadian’s money is going to other country.