The Race for Lower Cellphone Rates

Telecom Competition in Canada | BCBusiness
With Ottawa’s lift on foreign investment restrictions, Canadians could see lower wireless rates as more competitors enter the market.

Ottawa has opened up the telecom industry to foreign ownership, which could mean more competition and lower cellphone bills for Canadians.

At least once a month, I’m overcome with a wave of homesickness for the States. Why? Well, my consistently outrageous Rogers bill makes me miss the reasonable rates and varied options for cellphone carriers down south. But Canadians could finally see lower cellphone rates in our near future.
 
On Wednesday Ottawa announced it would open Canada’s telecommunications market up to foreign ownership beginning after a spectrum auction in early 2013. Companies with less than 10 per cent of the market will see all restrictions on foreign investments lifted. Previously, the telecom industry was mostly closed off to only Canadian players, i.e. Rogers, Telus and Bell.
 
Opening the doors for foreign investors could mean some vaguely familiar names south of the border – AT&T and Verizon – could expand their service north. And more competition means no more biting the bullet with every bill just because we don’t have many options.
 
The spectrum auction will see service providers bid on the 700 MHz spectrum, which is valuable for carriers hoping to expand to rural areas of Canada. The frequency allows for service in underground parking lots, elevators and doesn’t require as many towers to maintain a consistent signal. For smaller or new carriers, bidding on this spectrum is integral for expansion.
 
Luckily for me, a certain wireless contract expires right around the time the new rules take effect.