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Canadian regulator starts hearings on boosting cellphone competition

Published 2020-02-18, 12:31 p/m
Canadian regulator starts hearings on boosting cellphone competition

By Moira Warburton

TORONTO, Feb 18 (Reuters) - Canada's telecommunications regulator began hearings on Tuesday on maintaining smaller companies' access to wireless networks owned by the country's top three companies, in a bid to lower the cost of cellphone plans and increase competition.

The hearings, held by the Canadian Radio-television and Telecommunications Commission over nine days in Gatineau, Quebec, aim to examine competition in the industry, as well as whether the market is ready for 5G and if it adequately serves Canadians.

As part of its review, the CRTC said it heard from 28,000 Canadians and surveyed over 1,200 directly, the "vast majority" of whom felt that Canadian cellphone prices were not as competitive as in other countries, CRTC Chairman and CEO Ian Scott said in his opening remarks.

Canada's telecoms industry is dominated by three companies - BCE Inc's BCE.TO Bell unit, Telus Corp T.TO and Rogers Communications RCIb.TO - which together control 89.2% of the mobile subscriber market, according to the most recent government data from 2018.

Bell, Telus and Rogers were required to provide wholesale roaming services to competitors at rates set by the CRTC for a minimum of five years starting in 2015.

The Mobile Virtual Network Operators arrangement, or MVNO, allows smaller companies to provide phone plans at lower rates than if they had to build their own network infrastructure.

Scott said the commission's preliminary position was that this regime should remain in place, subject to certain constraints.

"Our goal is to ensure that Canadians have access to a world-class communications system," he said.

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Bell, Telus and Rogers were not immediately available to comment.

Prime Minister Justin Trudeau's Liberal party promised to lower phone plan costs by 25% in the 2019 federal election campaign.

Latest comments

Well if Trudeau promised it, rest assured it wont happen. The clown hasnt lived up to any of his promises to date..
Will see how well it goes.Besides if the smaller companies are not allowed to use the good common high speed frequency range that the big three are providing, it will defeat the purpose for allowing competition.Like Mobilicity before, at that time they utilize the new frequency ranges that are not accessible by most existing phones. Most people will have to get new phone if they decided to make the switch. Also the variety of phones that support the new frequency were limited, which at the end discourage the competition to happen.The smaller companies are not able to provide the service as they should because whoever own the infrastructure can screw them over by making the switch more inconvenient for end-users.
Duh! Finally Canada!
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