As you may have heard, the Prime Minister’s Office is set on seeking another mobile player to add to Canada’s wireless market- Bell, Rogers, TELUS, Eastlink, Videotron, Mobilicity, Public, MTS, SaskTel and Wind (Canada has 10 now, the US is moving to 4).
The Canadian Wireless Carriers welcome any competitor, of any size- but on a level playing field.
With a market capitalization nearly twice that of BCE, Rogers and TELUS combined and almost four times as many customers, we don't believe Verizon needs any special favours as they look to enter the Canadian market. I’m still sad that we let Nortel be gobbled up at pennies on the dollar by large government supported entities- China, Sweden and US while we burned tax dollars into GM, Ford and Chrysler. Giving Verizon special incentives makes no sense- just sends dollars south in an attempt to garner votes.
Here are the facts;
· Canadians enjoy a very competitive wireless industry, with prices not only comparable to the rest of the developed world but actually lower than in the U.S.
- Intense competition in telecom has led to lower price growth than other competitive industries- Since 2002;
- Gasoline- Up 7% on average per year
- Cable- Up 5% on average per year
- Energy- Up 5% on average per year
- Shelter- Up 4% on average per year
- Food- Up 3% on average per year
- Communications and Telephone Services- Up 1% on average per year
Canada’s investment in telecommunications infrastructure is almost double the average of OECD countries and provides world leading coverage, speed and reliability, despite our nation’s challenging and sparsely populated geography.
· BCE, Rogers and TELUS support 370,000 employees and retirees in Canada and contribute over $50 billion each year to our nation’s economy including extensive funding for charities and not-for-profits.
· Industry observers believe a foreign entrant such as Verizon would focus purely on serving major urban markets if they are not required to build out networks to the broader population. This, in turn, could force BCE, Rogers and TELUS to focus our investments in a similar manner in order to effectively compete.
Please voice your support for fair markets and a level playing fields for Canadian companies.
- Independent reports show wireless pricing in Canada is average when compared to developed world- impressive achievement given the challenging and sparsely populated geography we serve and world leading network upgrades to latest technology
- Canadian wireless pricing is favorable compared to G7
- Canadian wireless pricing is favorable compared to U.S. (based on the CRTC’s- our government’s Wall Report)