A recent Canadian Radio-television Commission (CRTC) ruling likely means high cellphone bills are here to stay in Canada. Last week, the CRTC ruled against a coalition of small ISPs interested in offering steeply discounted wireless services.
The ISPs – known as the Canadian Network Operators Consortium – hoped to rent the networks of the big Canadian telcos, allowing them to offer alternative, inexpensive services. However, the CRTC says such a move wouldn’t be fair to the companies that have invested in their own networks, such as Bell, Rogers and Telus.
One thing is clear: it’s unlikely Canadians will benefit from a wave of new competition in the wireless industry anytime soon. According to a Bank of America Merrill Lynch Report, Canadians pay some of the highest rates in the developed world, an average of $46 US per month. It’s not a coincidence Canadian carriers are also making some of the biggest profits in the world.