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

SD61 to install new water fountains over lead concerns

They’re installing 350 new water fountains in local schools due to concerns over elevated levels of lead in the water system

West Shore firefighters band together to support men’s health

More than $8,200 raised for Movember campaign

Holiday gift wrapping tips and tricks

Streamline your process to avoid the hassle

Omnibus zoning bylaw sent for revisions to prevent blanket upzoning in downtown Victoria

More than 10 downtown properties identified by Downtown Residents Association

UPDATE: Four vehicle crash on Sooke Road snarls traffic in Colwood

Sooke Road reopens to traffic in both direction

VIDEO: That’s a wrap: Be a Santa to a Senior packages ready to go out

Program hands out more than 600 gifts to Greater Victoria seniors

Owl found dead after eating rat poison leaves B.C. woman concerned

After finding the owl on her Surrey property, Christine Trozzo says the poison is a concern for kids

Change to CPP death benefit panned as insufficient to cover funeral costs

Funeral Services Association of Canada lobbied governments to raise the value to $3,580

Shelbourne Community Kitchen vies for $20,000 prize

Epicure Foundation, based in North Saanich, will give five groups $20,000 each

Woman in Nanaimo accidentally hands over diamond ring with spare change

Incident happened Wednesday at about 7 p.m. at parking lot near Nanaimo’s boardwalk

B.C. woman brain injured in crash as a baby gets $1.1 million in damages

Trial heard the woman was 16 months old, being carried by her mother when they were both hit

Optimistic Victoria whale watching company invests in new vessel

Banner 2017 tourist season helps Prince of Whales decide to boost service

Victoria cycling advocate makes pitch lor lower speeds on local roads

Group points to evidence suggesting 30 km/h speed limit would save money, lives

Most Read