Bolder action needed on telco competition: Industry watchers
BNN Bloomberg
As the Competition Bureau seeks to block Rogers' takeover of Shaw over concerns the $20-billion deal will reduce wireless competition, some industry watchers say even bolder action is needed.
Thomas Ross, professor at the UBC Sauder School of Business, says Canada being a big and expensive country to run networks, combined with low population density, means there will always be limits to the telecom options.
He says there are, however, some measures the federal government can take to help spur competition in Canada's telecom industry, like letting foreign wireless companies operate in Canada, whether it's an international company taking over a regional player and growing it or building its own network from scratch.
Ross also says the feds could force Canada's telecom giants to sell wholesale access to their networks at much more favourable prices to facilitate the growth of Mobile Virtual Network Operators (MVNOs), which buy network service from major carriers at a wholesale rate.
