Canadian Government Should Not Give Verizon an Advantage: Report

A new paper from the Fraser Institute suggests that the federal government should level the playing field of Canada’s wireless market if it wants Canadian consumers to have choice and competition.

The report argues that “preventing large incumbent carriers from unduly restricting competition in the future can and should be addressed through the Competition Act, rather than through ‘handicapping’ the competitive process, including spectrum auction caps.”

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Author Steven Globerman uses the report, titled An Assessment of Spectrum Auction Rules and Competition Policy, to explain that putting Canada’s incumbent wireless carriers—Rogers, Telus, and Bell—at a disadvantage versus new entrants does not guarantee a net benefit for the consumer.

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He also suggests that the government should remove foreign ownership restrictions. According to Globerman, even the threat of a takeover encourages companies to run their business more competitively.