Regional operators with their own mobile networks are helping to lower prices in Canada, according to the Competition Bureau. In a submission to the CRTC in its review of the mobile market, the competition regulator said Canadians could save substantially on their mobile bills if Bell, Rogers and Telus were faced with more competition from regional carriers like Freedom Mobile and Videotron.
The Bureau found that Bell, Rogers and Telus are able to charge higher prices in most of Canada, where they possess market power. However, regional carriers like Freedom and Videotron are increasingly disrupting the market, and in regions where these operators are active, prices can be 35-40 percent lower.
The competition watchdog recommends that the CRTC pursue a MVNO policy where Bell, Rogers and Telus would have to sell access to their networks to regional operators so the latter can expand their footprint. This would spur additional price competition in the short term, while avoiding the risk of declining network quality in the long term.
