Canada’s Wireless Industry

Recent studies have shown that Canada’s wireless industry is one of the most expensive in the world and yet one of the most inefficient.

The big three: Rogers, Telus and Bell seem to be able to add fees to your bill for things they call "government regulations". One almost needs a PHD to read and understand a phone bill. We were excited to hear that the Big Three would have some competition in 2010.

It seems logical that more competitors would bring prices down and perhaps even make the hieroglyphics they call a bill more readable. We will see soon.

If you are negotiating for a new phone plan these days the Big Three will give you more rebates than in the past. But why should we have to negotiate buying a phone like we are buying a car. Just give me the best price without me having to negotiate and I will be very happy.

A recent ruling by the CRTC has challenged whether or not Gloablive, one of the companies that is supposed to compete with the Big Three, will be able to go ahead. The concern is Globalive’s foreign ownership.

Globalive has hired hundreds of Canadians and is ready and setup shop here to compete with the Big Three. I am told that they are more ready than some of the other new competitors. (Globalive is not a client of our firm).

My question: If a foreign owned company can create hundreds of jobs for Canadians and create more competition for some of our own firms is this a bad thing? I recognize that I am simplifying this analysis. But I know this much for sure. Most Canadians are in favour of creating more jobs for Canadians and having cheaper wireless services.

The government is now getting involved on the ruling on this case. How do you think the government should rule on this? Should the wireless industry be regulated by government? Do we need more competition in the wireless industry? Should new wireless firms be required to be Canadian owned and operated?