Canada’s Wireless Industry Facing Major Setback As All Three Small Telecom Carriers Are Looking For Buyers


By: Ali Raza  |   April 15th, 2013   |   Business, News, O Canada

Canadians have always wished for a competitive and fair wireless industry but unfortunately it seems that their wish is not going to be fulfilled because the Dutch owners of Wind Mobile have put the company up for sale. A few weeks after that rumours started swirling in the wireless industry that Canada’s giant telecom carrier TELUS is having talks with Mobilicity in order to acquire it for as much as $400 million. This news was revealed by The Globe and Mail after they got hold of an internal document. Soon after it was reported that Public Mobile has appointed investment bankers to find a buyer for the telecom carrier that may be worth $150 million.

 

So it means that all three small telecom companies which the Canadian government has introduced in the wireless market to boost the competition and level of service, are now up for sale and if this happens Canada will once again fall into the hands of the big telecom companies like Bell, TELUS and Rogers, which have formed a supposed cartel in the country.

 

The strength of this cartel over the wireless industry of Canada can be judged from the fact that Wind Mobile, Public Mobile and Mobilicty were not able to break into the industry despite several efforts. The three companies even decided to withdrew themselves from the Canadian Wireless Telecommunications Association by saying that a “long-standing, mounting frustration with the CWTA’s consistent bias in favour of Rogers, Bell and Telus on a wide variety of issues.”

 

Chief Regulatory Officer of Wind Mobile, Simon Lockie said on this occasion that “When we were first approached by the CWTA, we were promised clear and fair representation on issues of true industry alignment. But despite making our objections and concerns abundantly clear on numerous occasions, the CWTA has repeatedly failed to honour this promise, leaving us no alternative but to withdraw.”

 

Public Mobile’s General Counsel and Senior Vice-President, Legal & Regulatory, Bob Boron said that, “It has been evident for quite some time that, rather than being a true industry association which represents the views of all players regardless of size, the CWTA has instead largely been an advocate for Rogers, Telus and Bell, and often directly contrary to the interests of new entrant wireless carriers.”

 

Director of Legal Affairs at Mobilicity Gary Wong said, “We have spent the better part of three years repeatedly voicing our opposition to the CWTA on a wide range of matters to the point of issuing a press release in January 2011 that publically expressed our dissent on the CWTA’s position on wireless consumer protection. There seems to be a blatant disregard of the new entrants in favour of acting in the best interests of the Big Three carriers and it is unacceptable.”

 

On the other hand, the CWTA said in its defence that it “rejects the accusation that the Association represents the interests of only certain members. CWTA has always and will continue to work on behalf of all of its members.”

 

Source: TechVibes

Photo: NewAndroidNews

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