Analysts Say Verizon Pulling Back Bad for Canadian Wireless Consumers

Wireless industry experts have asserted that the recently announced decision of Verizon to stay out of Canada has puffed all the government plans to make the wireless market more competitive and consumer-friendly. A professor at the Rotman School of Management, Walid Hejazi, stated that “without someone like Verizon, what will end up happening is the Big Three will win.”

Together The Big Three, i.e. Bell, Rogers and Telus, collaboratively control 90 per cent of the market share in Canada. The Big Three had unanimously launched an elaborative ad campaign throughout the summer, informing its customers that Verizon’s entry into the wireless market would be “unfair” and cost Canadian jobs. However, critics have alleged that Verizon’s entry would rather force the Big Three to offer better services and rates. The announcement made by Verizon CEO, Lowell McAdam, on Monday helped to put an end to all nervous speculations. McAdam made the announcing only a short time after it was reported that Verizon is paying $130 billion US to buy the 45 per cent stake in Verizon Wireless currently held by British telecom Vodafone.

Editor and publisher of a news site about the Canadian telecom and electronic media industries, Cartt.ca, Greg O’Brien alleged that “Verizon’s interest was never really all that real.” He added that “they were just kicking the tires at Wind and Mobilicity and [considering buying] some spectrum because these are all assets that would maybe provide them with some growth. And they decided in the end that it just wouldn’t.”

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