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

Prolific offender found sleeping in Oak Bay resident’s car

Of 106 calls to 911 last week, eight were abandoned

RCMP confirm foul play in death of 60-year-old Metchosin man

Police believe crime an isolated incident

Researchers head out from Sidney to explore Canada’s largest underwater volcano

The Explorer Seamount is as large as Greater Vancouver and full of previously undiscovered species

RCMP identify Sidney bank robbery suspect, believe he is still on Vancouver Island

Warrant issued for arrest of North Vancouver man for TD Bank robbery

BC Ferries’ top boss helps clean Willows Beach

Old shoe, men’s underpants and too many cigarette butts on Willows

VIDEO: Dashcam video captures moment Victoria cyclist struck

Police seeking cyclist captured in video

UPDATE: Youth seen with gun at Nanaimo mall, suspect now in custody

Woodgrove Centre shut down during police incident

B.C. man dies from rabies after contact with Vancouver Island bat

Last known case of human rabies in B.C. was 16 years ago

Crown recommends up to two-year jail term for former Bountiful leader

Crown says sentence range should be 18 months to two years for Bountiful child removal case

VIDEO: Wolf spotted swimming ashore on northern Vancouver Island

Island wolf population estimated at under 150 in 2008, says VI-Wilds

Diversity a Canadian strength, Trudeau says of Trump tweets at congresswomen

Trudeau avoided using Trump’s name when he was asked about the president’s Twitter comments

Garneau ‘disappointed’ in airlines’ move against new passenger bill of rights

New rules codified compensation for lost luggage, overbooked flights

Canadian is detained in China on drug allegations: Chinese government

Detention of a Canadian in China comes as part a diplomatic dispute triggered by arrest of Huawei exec Meng Wanzhou

Rare white ravens spotted again in mid-Island

Nature photographer Mike Yip said mysterious birds back in Coombs area

Most Read