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n2jtx

join:2001-01-13
Glen Head, NY

1 recommendation

No Outside Investment

Unlike the United States where T-Mobile is still owned by Deutsch Telekom and Sprint is in the process of being acquired by the Japanese firm Softbank, Canada has restrictions on foreign investment. Therefore, the only companies that really have the deep pockets necessary to keep the minor players afloat are the incumbent telecom companies themselves. Either the Canadian government is going to have to prop up the small competitors with the hope of creating competition, allow foreign ownership of telecom companies or get used to having a duopoly in the wireless industry.
--
I support the right to keep and arm bears.


zod5000

join:2003-10-21
Victoria, BC
Reviews:
·Shaw

said by n2jtx:

Unlike the United States where T-Mobile is still owned by Deutsch Telekom and Sprint is in the process of being acquired by the Japanese firm Softbank, Canada has restrictions on foreign investment. Therefore, the only companies that really have the deep pockets necessary to keep the minor players afloat are the incumbent telecom companies themselves. Either the Canadian government is going to have to prop up the small competitors with the hope of creating competition, allow foreign ownership of telecom companies or get used to having a duopoly in the wireless industry.

I'm not sure if that would help. One of the problems with Canada is the pie is only 33 million people big and we already have 3 big players (Rogers, Telus, and Bell) (Plus some of the regional players).

Any new entrant has to compete for a small portion of the existing pie. Not only that but they have to compete against some pretty well established networks. IE the main argument against Wind/Mobilicity was the coverage. It's basically restricted to the bigger cities and densely populated areas. Which means any time you road trip you leave their zone and go on roaming.

In the US you've a 300 million person sized pie over a country of similar size. I think that spawns the ability to have a little more competition.

I do realize that most of Canada lives in a handful of cities, but we do seem like having coverage when we leave those cities which probably ramps up the infrastructure costs quite a bit.

Both Wind and Mobilicity are struggling trying to offer service's at 30 to 40 dollars a month. I guess that says something.

Hopefully the CRTC will dissallow the spectrum transfer. It's all good that Telus says their buying Mobilicity, but the Spectrum transfer hasn't been approved.

If the CRTC (or the government) allow the big three to buy out the small players, that pretty much prevents and future competition. Hopefully they hold back that spectrum if someone wants to make a future attempt.

HeadSpinning
MNSi Internet

join:2005-05-29
Windsor, ON
kudos:5

said by zod5000:

Hopefully they hold back that spectrum if someone wants to make a future attempt.

Even if they hold back the spectrum, network deployment is a killer. Maybe force them to sell off the network assets too?
--
MNSi Internet - »www.mnsi.net

34764170

join:2007-09-06
Etobicoke, ON
reply to n2jtx

said by n2jtx:

Canada has restrictions on foreign investment.

This is not relevant for the new carriers.


Nilism

join:2011-02-07
Edmonton, AB

There are still restrictions, they are just more lenient. I can't recall the gory details but it has something to do with market share now? Someone help me out.

Industry Canada should have just tossed all foreign restraints, but they just couldn't bring themselves to it.

In the end I am not convinced more competition is even the key. The market is saturated and entrenched. The government needs to lay the smack down on these guys and start enforcing what is already in place and add a few minor consumer protections against these outrageous contracts.

All the government has to do is encourage churn by:
- Getting ride of locked phones all together
- Tossing fixed term contracts
- Disconnecting hardware from service, which is tied-selling and illegal anyway

Even one of the above points would go a long way!


34764170

join:2007-09-06
Etobicoke, ON

said by Nilism:

There are still restrictions, they are just more lenient. I can't recall the gory details but it has something to do with market share now? Someone help me out.

Industry Canada should have just tossed all foreign restraints, but they just couldn't bring themselves to it.

In the end I am not convinced more competition is even the key. The market is saturated and entrenched. The government needs to lay the smack down on these guys and start enforcing what is already in place and add a few minor consumer protections against these outrageous contracts.

All the government has to do is encourage churn by:
- Getting ride of locked phones all together
- Tossing fixed term contracts
- Disconnecting hardware from service, which is tied-selling and illegal anyway

Even one of the above points would go a long way!

I never said there were no restrictions. They're just not relevant for the new carriers.

Unless they're going to regulate pricing down to reasonable levels then we require more competition. No ands ifs or buts. We're being raped so bad it is pathetic. The lack of competition is why the pricing is so ridiculously bad. Even doing all 3 of the above is not even close to being good enough. None of those were ever an issue for me or for a lot of customers.