Seeking Alpha

Canadian CEOs, local telcos, object to wireless rule changes

  • A group representing 150 Canadian CEOs has sent a letter to PM Stephen Harper asking him to reconsider new mobile investment rules they claim would give would-be entrant Verizon (VZ +0.6%) and unfair edge over incumbents BCE (BCE +0.3%), Rogers (RCI +1.1%), and Telus (TU +0.9%).
  • The incumbents have already been aggressively lobbying Ottawa to fix perceived loopholes in telecom policy they claim benefit outside giants, rather than smaller carriers.
  • Verizon, possibly motivated by the potential for huge roaming fee savings, is believed to be eying the purchase of struggling Canadian carriers Wind and Mobilicity, whom the incumbents can't acquire due to spectrum rules.
  • Big Red is also considering taking part in a Jan. '14 spectrum auction; the rule changes would allow it to buy more spectrum than the incumbents.
From other sites
Comments (1)
  • dunnhaupt
    , contributor
    Comments (727) | Send Message
     
    Germany has just reduced its four major telecom companies to three. So where does the Canadian government get the idea that they absolutely need a fourth competitor, even though Canada's population is much smaller than Germany?
    29 Jul 2013, 12:17 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs