Canadian Government Ignores Campaign by Rogers, Telus and Bell

By: Talha Bhatti  |   August 16th, 2013   |   Business, News, O Canada

Recently the Canadian government has declared that it intends to encourage healthy competition in Canada in the telecom sector rather than accepting the demands of Rogers, Telus and Bell. Previously, these three telecom giants campaigned against US company, Verizon acquiring WindMobile, a Canadian startup company because it would bring them into direct competition with Verizon. The Prime Minister, Stephen Harper has emphasized that he will not succumb to the requests by the three telecos and will certainly not discourage Verizon from entering the Canadian market and increasing competition. He has said that there will be no change in plans in the current situation and this news has been welcomed by Canadian citizens who are looking forward to cheaper rates.

“Our government has pursued extremely consistently and extremely clearly a policy of fostering greater competition in this industry for the benefit of consumers,” Mr. Harper told reporters recently. “We have every intention of continuing that policy in the interests of Canadian consumers and the broad Canadian public, including proceeding with the auction as we have laid out for some time.”

The Globe and Mail has been quoted as saying : “Under current rules, Verizon and other foreign-based carriers would be allowed to purchase more spectrum licences than the three large incumbents at an auction next year.  They are also be allowed to snap up small domestic wireless companies such as Wind Mobile and Mobilicity that are currently off limits to BCE, Rogers and Telus.” This means that foreign wireless carriers will be given a clear advantage and this proves how much the Canadian government and people want to encourage competition in the wireless sector. However, Rogers, Telus and Bell have pleaded that Verizon not be allowed to enter Canadian market but their lobbying has brought about no results and their campaign has clearly failed.

 

“The government has a responsibility toward a wider public interest, and Canadians are very clear about what that wider public interest is to us: They want to see enhanced competition, lower prices, better services in this area,” stated the Prime Minister.” Therefore, the government has refused to accept any plans that are against their policies and have stuck to what is best for their citizens. This shows the dedication of the Canadian government but on the other hand, it shows how large companies often try to persuade the government and public to make decisions that are in the company’s favour rather than the general interest.

Source: TechVibes