Bell Canada Raising Satellite TV Rates (Again) > It's fun to be a Duopoly....

It's fun to be a Duopoly....

The Canadian market is especially interesting in that respect. Bell has tried to undercut other competitors and when that backfires they align their prices with competitors yet again. Unfortunately this is what happens when the Government has little regulation and at the same time not allowing foreign ownership.

reply to KrK
Duopoly? There's StarChoice, Videotron, and Look. That's four choices in Montreal (Bell's second biggest market). There isn't a lack of competition in television services.

Wait what? Videotron is cable, and Look isn't available everywhere. That leaves Starchoice and Bell, so yes it is a duopoly in the satellite market, and unlike us 'city folk' who can turn around and get cable or satellite(and maybe look), you're screwed.

How many satellite companies do you need to have before there's enough competition? Bell TV and Star Choice could barely make money when their rates were reasonable, it's only after jacking them up steadily that they've become profitable. You think more competition in this sector is sustainable?

It doesn't matter how many, it matters the choice in a free market. In the end, when you have a monopoly or duopoly, then you get one thing. Occasional fighting when one decides to lower their prices to match, then once they have enough customers; a price hike.