Canadian consumers' hopes for more wireless competition and lower prices have dimmed

Verizon’s dropped call leaves Tories on hunt for new phone fix

U.S. firm says it won't be Canada's fourth major wireless carrier

U.S. wireless giant Verizon’s declaration it’s not interested in entering the Canadian market appears to have dashed consumer hopes for cheaper cellphone rates and left Ottawa seeking a new white knight to inject more competition.

“Verizon is not going to Canada,” CEO Lowell McAdam told Bloomberg Monday, adding speculation that it would was “way overblown.”

Some analysts had predicted Verizon would take a long, slow approach to any move to buy one or more of the junior Canadian wireless companies that have struggled against the country’s big three dominant telecom firms.

If the biggest U.S. telco has abandoned a northern venture – and isn’t merely playing a waiting game to gain maximum advantage – it sends the federal government back to the drawing board on how to engineer the the improved competition it has said is required.

“It leaves us back where we started in the swamp with no solution,” SFU business and marketing professor Lindsay Meredith said.

The status quo is exactly what Telus, Bell Canada and Rogers want, he said, but a fierce public relations battle waged this summer by the big three and Ottawa means the issue is unlikely to go away.

Nor, Meredith predicted, is public demand for reform and dissatisfaction with high mobile rates.

Up in the air is what happens in an auction of wireless spectrum set for January, which had been dangled by Ottawa as a lure for a new foreign entrant, who presumably would buy a small firm like Wind Mobile or Mobilicity.

“The only scenario that could possibly unbalance things is for somebody with a lot of money to come in and start backing those little guys,” Meredith said.

“I’d call Vodafone. I’d keep the heat on.”

Vodafone is the British wireless firm that is selling its U.S. interests to Verizon for $130 billion. Verizon’s McAdam said the deal wasn’t a factor in its decision against coming to Canada.

Industry Minister James Moore has said the federal government’s policy will be good for consumers, regardless of whether Verizon comes north.

Meredith said there was no guarantee Verizon – which wouldn’t have been able to bundle wireless with home phone or TV services – would have offered the cut-rate prices telco-hating Canadians had dreamed about.

He noted U.S. retailer Target arrived this year, but not with lower U.S. pricing.

But he said Canadians “finally” got a real debate on the issue, crediting Prime Minister Stephen Harper’s decision to push for change.

But he said the “relatively quiet” Harper government didn’t push the issue of unfair pricing hard enough and allowed the telecom firms to recover from what had seemed a winning cause for the Tories.

Most resonant for the telcos, he said, were their claims that Verizon price gouges in the U.S. and that it would unfairly tap into Canadian-built infrastructure, while Canadian firms don’t have the same access to U.S. networks.

“The telcos were making ground on the issue without even talking about pricing,” Meredith said. “The other side did bugger all from a strategic marketing standpoint.”

Just Posted

Open house opens access for those suffering from vision loss

Pat Chicquen understands how isolating losing vision can be, which is why… Continue reading

Valley SPCA overwhelmed with 45 cats taken from local property

Many of the cats have never been around humans, or have never been touched or handled.

BIG READ: The two sides of the Strait of Georgia roe herring fishery

The case for the Strait of Georgia roe herring fishery Comox fisherman,… Continue reading

Applications open for record bursary, scholarship funding at North Island College

Current and future North Island College students can now apply for scholarships… Continue reading

Second Stage Players present laughter and love in We Are Family

Get your tickets early to see the Evergreen Club’s Second Stage Players’… Continue reading

VIDEO: Can you believe it? This B.C. hill pulls cars backwards up a slope

Sir Isaac Newton had clearly never been to this Vernon anomaly when he discovered gravity

Comox Valley Hospice Society finds new Ocean Front home

Comox Valley Hospice Society (CVHS) recently announced plans to construct a new… Continue reading

Prime minister defends Liberal budget measures as sales effort gets underway

Conservatives under Andrew Scheer say it’s a spree funded by borrowing against the future

Mayor meets with B.C. health minister on homeless taxi transfers

Two homeless people were discharged from Surrey Memorial and sent to a Chilliwack shelter

B.C. lottery winner being sued by co-workers

They claim he owes them $200,000 each, in a lawsuit filed in B.C. Supreme Court in Vancouver

Teacher reprimanded for conduct towards special needs student

Alan Stephen Berry told vice principal he did not have time to use positive strategies

Water bottling debate continues

Merville resident says plenty of water in Aquifer 408

‘Full worm super moon’ to illuminate B.C. skies on first day of spring

Spring has sprung, a moon named in honour of thawing soil marks final super moon until 2020

Having phone within sight while driving does not violate law: B.C. judge

The mere presence of a cell phone within sight of a driver is not enough for a conviction, judge says

Most Read