As the threat of a large U.S. carrier disrupting the Canadian telecommunications market fades, analysts say the new pressure the dominant domestic players face is increased government intervention.
Ottawa sparred with the big three carriers this summer over its policy to promote competition in the industry and observers say it won’t abandon those plans now that Verizon Communications Inc. and its U.S. peers have signalled their lack of interest in heading north.
While part of that will entail sticking to its policy on barring the incumbent players from buying up wireless airwaves purchased by new entrants to the market, the federal government could also look at directly setting prices.
The Canadian Radio-television and Telecommunications Commission is currently collecting information from the carriers on the wholesale rates they charge and pay to their competitors for roaming on each others’ networks and many see this area as a potential point of regulation.
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