Canada’s major telecom corporations are planning to intensify lobbying against the brand new minority Liberal government as it moves to meet election pledges to cut cellphone costs by 25% with some officials warning government action could hamper costly network rollouts.
Canada’s three telecommunications providers, BCE Inc’s Bell unit, Rogers Communications, and Telus, management around 90% of the market and Prime Minister Justin Trudeau said throughout the campaign he might pressure providers to take action.
The sector is unhappy about the Liberals’ pledge to permit other access for Mobile Virtual Network Operators (MVNO) – which lease wireless capability at wholesale costs and resell it at decreased retail prices – saying they don’t help construct the expensive infrastructure wanted to ensure service.
“We’re fighting a five-front battle right here, and we’ll use whatever instruments are at our end to convince the powers that this is incorrect-headed,” an official at one of the leading corporations, stated, including the prospect of MVNOs was a higher existential threat than price cuts.
The Canadian Radio-TV and Telecommunications Commission (CRTC), which regulates the trade, is probing whether it ought to order the significant companies to allow more access to MNVOs, which complain they’re effectively being shut out.
On Wednesday, Bell requested the government to reverse an August CRTC order to cut the rates that third-party web resellers pay the significant firms for access.
Robert Ghiz, the CEO and President of the Canadian Wireless Telecommunications Affiliation, said MVNOs had been short-sighted and a bad idea.
Trudeau lost his majority in this year’s election and will probably govern with the help of the left-leaning New Democrats, who also expect a crackdown on bills.