Rogers CEO Says Fourth Wireless Carrier Not Fruitful for Canada

This article was last updated on April 16, 2022

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CEO of Rogers Communications Inc., Nadir Mohamed, asserted that Ottawa’s visualization of a fourth national wireless operator is exaggeratedly expectant considering the country’s unique characteristics including its “geographic expanse.” During a meeting with financial analysts after announcing the company’s second-quarter earnings on Wednesday, Mohamed stated that “I’ve never seen how a four-player market can work in a country like Canada. I never thought of it is as a sustainable model.”

Rogers Communications Inc. is the parent company running the country’s largest wireless service provider, i.e. Rogers Wireless. Mohamed alleged that “if you think of what’s happened over a period of time consistently in Canada, it’s proven out that this country — it’s difficult enough, frankly, to work with three players.” Additionally, he pointed out that “if anything, three players is a norm.” The former industry minister, Christian Paradis, had made it pretty clear that he favours a fourth facilities-based provider in each region of the country as he claimed it would help promote choice, innovation and price competition in the $19 billion wireless market.

Meanwhile, a spokesman for the newly selected industry portfolio in last week’s cabinet shuffle, James Moore, mentioned “the government is committed to four operators in each region to encourage competition. We are working to provide Canadian families with access to the latest technology at better prices.” It was explained that Ottawa has already capped the ability of established operators’ to acquire radio wave licences in an auction scheduled for January in order to uphold competition hoped for in the upcoming Telus’s bid to acquire financially-strapped Mobilicity.

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