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

UPDATE: Nelson man who swam naked with sharks arrested

David Weaver, 37, will face mischief and assault charges

Vernon Vipers shut out Smokies

Williamson comes off IR with three points

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

Rossland voters go to the polls on Saturday for municipal election

New city council to be chosen, as well as a school trustee, and a referendum to be decided

Cannabis use still restricted from Rossland streets

The city’s smoking and vaping bylaw forbids smoking in most places in the city

B.C. NDP retreats again on empty-home tax for urban areas

Rate reduced for all Canadians, dissident mayors to get annual meeting

Ignoring climate change poses potential catastrophe for B.C.

Fisheries scientist says ‘extraordinary challenges’ in water management lie ahead

Grow ops left in legal weeds

“I think people are going to get a big surprise that it’s not going to change things much.”

Hall makes Team BC grade

Canada Games speed skating trials in Red Deer

Driving with dope: Police talk rules on cannabis in the car

Even though pot is legal, you can’t smoke in the car

B.C. teens fined for possession of pot on legalization day

The pair received $230 fines for smoking pot in public

Trio of Saint Bernard find their ‘forever home’ after story goes viral

Edmonton Humane Society had put out the call to adopt Gasket, Gunther and Goliath

Nurses deliver 24,000 anti-violence postcards to B.C. Health Minister

Nurses delivered thousands of postcards to the front steps of the B.C. legislature, each carrying a message for violence prevention

Nova Scotia works to stop underage online cannabis sales

The government cannabis retailer moves to prevent workaround of online-age verification

Most Read