Wireless under fire

It seems to me that there is an undertone of discontent in Ottawa concerning the state of the Canadian mobile wireless industry. Not acute pain, but an annoying chronic irritation.

Over the past couple years, there have been various signals that policy makers are not as comfortable with the state of competition between the big 3 national players (Rogers, TELUS and Bell). I think the first warning shot was the CRTC’s Decision on E911 – it served as a reminder to the wireless industry that the CRTC retained regulatory power despite its forebearance on price regulation.

Wireless Number Portability was next, with the clear intent to better empower users.

Yesterday’s report from the Telecom Policy Review panel is another voice shouting that all is not well in the mobile wireless sector, notwithstanding the exuberance on Bay Street. Investors like a comfortable, “disciplined” market. It sustains profits. That sentiment is not shared by the people who pay the phone bills.

In the Afterword to the TPR report, Canada’s poor performance in wireless pricing and penetration is cited as one of the primary reasons that foreign investment rules should be liberalized.

Will the Wireless Association and the major industry participants hear the underlying message?

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