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  • Canada Lets In Verizon
Technology Articles > Cell Phones > Others > Canada Lets In Verizon

Entering the Canadian market is next to impossible for many carriers. Right now, Canadian carrier markets are dominated by three major companies including Bell, Rogers, and Telus. Other companies need not apply. But, this is all about to change.

Recently, Rogers and Telus attempted to buy out some remaining smaller companies. This move would have sealed the wireless deal for any companies that tried to compete with Bell, Telus, or Rogers. However, the Canadian Government put a stop to the acquisitions. Further, the government has stated that any future wireless deals will go through strict review before these deals are allowed to proceed.

Not a Fair Fight

The Canadian Government wants to stop the three major carriers from monopolizing the wireless airwaves. Any acquisitions that would form a concentration will be vetoed by the government. This also leaves room for U.S-based Verizon Communications to enter the Canadian market. Having access to a variety of communication companies makes it easier for Canadian citizens to pick and choose carriers, haggle, and, you know, live life.

Right now, trying to argue a price with one of the big three is relatively useless. Since all three companies dominate the market, prices are relatively the same for consumers. With nowhere to run and no prices to haggle, consumers are stuck with just three options. Thankfully, this is all going to change now that the government has stepped in.

Let the Bidding Begin

The new government policy will encourage foreign telecommunications companies to enter Canadian territory. Now, these outside companies can hope to bid on more than 700 megahertz airwaves. These airwaves will soon be up for auction, and Bell, Telus, and Rogers have been told that they can only purchase so many of the airwaves. This means that other companies will have a shot at getting some of the sought after airwave space.

As expected, news that Verizon would soon be entering Canada caused Telus, Bell, and Rogers stocks to tumble this past week. The three companies argue that the Canadian government should not be on the side of a US company, but the government is holding fast and strong to its decision. Currently, Telus, Bell, and Rogers control 90% of the Canadian market, so all eyes are currently on Verizon.

Opening It All Up

The Canadian Government has stated that it wants each region of the country to have access to four wireless options. That fourth slot, it seems, will soon belong to Verizon. It will be a tough road for Verizon if the company does, indeed, come to Canada, but it's also going to be a road lined with welcoming people and a government that supports the move.

Presently, smaller wireless carriers don't stand a chance against the three giants, since these companies control too much of the market. Verizon might be the one company to break the rules. If you live in Canada, what do you think of this government intervention? Is it fair or is this a place where the government has no place?