The Canadian Competition Bureau has filed a submission to the CRTC’s wholesale mobile wireless services review in which it reaffirmed its view that the Canadian wireless market is uncompetitive and would benefit from regulation. The Bureau finds that a more competitive market would deliver $1 billion annually in benefits to the Canadian economy:
incumbents appear to have the ability and incentive to profitably raise the rates they charge their retail competitors for wholesale roaming services, and potentially other wholesale arrangements, above competitive levels. The incumbents’ wholesale customers may be passing these price increases on to retail customers. These retail price increases may be harming competition in retail mobile wireless services markets in Canada. In particular, more competitive markets could deliver approximately $1 billion in benefits to the Canadian economy.
The submission, which includes a commissioned study on the Canadian market, also concludes that:
Michael Geist – May 16, 2014.
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