Competition Bureau has proposed wireless policy to lower prices for Canadians, saying that prices could be lower by as much as 40 per cent of greater competition is engendered among providers.
“Canadians could save substantially on their wireless bills if Bell, Rogers and Telus were faced with more competition from regional carriers like Freedom Mobile and Videotron,” it said in part of a submission made to the Canadian Radio-television and Telecommunications Commission (CRTC) in its review of mobile wireless services.
The Competition Bureau found that Bell, Rogers and Telus are able to charge higher prices in most of Canada, where they possess market power. However, regional carriers like Freedom and Videotron are increasingly disrupting the wireless market. In regions with wireless disruptors, prices can be 35 to 40 per cent lower, it said in a media release.
While there are promising signs of greater competition from wireless disruptors, many Canadians have not yet fully experienced those benefits, it added.
Way Forward
The bureau recommends that the CRTC pursue a Mobile Virtual Network Operator (MVNO) policy where Bell, Rogers and Telus would have to sell temporary access to their wireless networks to regional carriers who intend to invest and further expand their own networks. This would spur additional price competition in the short term, while avoiding the risk of declining network quality in the long term.
“Wireless prices are significantly lower in areas of Canada where strong regional carriers compete with established national players. We recommend that the CRTC introduce a policy that allows regional competitors to expand into new markets to ensure that all Canadians can benefit from lower prices, greater choice and more innovation in wireless services,” says Matthew Boswell, Commissioner of Competition.