Fears that wireless prices could increase after Verizon ends Canadian interest

by Andrew Roach on September 4, 2013

After Verizon had decided against entering into the Canadian market, there have been a lot of people guessing about what impact it would had on many of the national carriers.

One of the main concerns that is already concerning both industry professionals and national carriers is the prospect of mobile costs increasing over the coming months.

Many people had thought that the prospect of having a fourth national competitor would force prices to drop as networks push to keep their prices as low as possible.

The likes of Rogers, Bell and Telus had started offering new plans to cope with the possibility of a Verizon-backed venture giving them some trouble but this work could soon cease if no other rivals emerge.

After all, the Big Three had already adopted some strategies to try and keep their customers entertained such as giving families the opportunity to choose their own data limit on a shared monthly plan.

This is a feature that already had been adopted by several networks in the US such as Sprint, AT & T and even Verizon themselves.

The thought of competition is something that many analysts believed was the catalyst that was needed to get the major networks to bring down some of their fees. These views were best summarised by Iain Grant, managing director of the SeaBoard Group who told the Financial Post: “Thanks Verizon. Even just clearing your throat got us better prices for data sharing.”

However, their mindset may not last long as time runs out for new entrants to try and earn a spot in the next auction for spectrum in just under a fortnight.

With the government specifically setting side large swathes of spectrum for anyone but the Big Three, there couldn’t be a more suitable time for a fourth company to establish themselves across the country.

This in turn would certainly keep the major networks on their toes if no other foreign telecom companies were to get involved in the Canadian market.

But with such little time left before entries are in, it’s unlikely that any new names would emerge to challenge the Big Three which could see things revert back to the way it was where prices benefitted the networks and not the consumer.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube

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