OTTAWA (Reuters) – Canada’s biggest telecom companies are going to be intense lobbying against the new minority Liberal government as it moves to meet election promises to cut mobile phone charges by 25%, with a number of managers warning of action by the government is a hindrance to the more expensive network roll-outs.
FILE PHOTO: A woman uses a mobile device while walking past a Telus store in Ottawa February 19, 2014. REUTERS/Chris Wattie/File Photo
Canada’s three telecommunications providers, BCE Inc’s Bell unit, Rogers Communications Inc and Telus Corp, control about 90% of the market, and the prime Minister, Justin Trudeau said, during the campaign, he could force providers to take action.
The industry is particularly unhappy about the Liberal democrats’ commitment to improve access to Mobile Virtual Network Operators (MVNO’s), which leases wireless capacity at wholesale prices and re-sell them at discounted prices – to say that they will not be able to help with the construction of the expensive infrastructure is the need of the service provision.
“We have to fight for a five-for-fighting here, and we will use whatever tools are at our disposal to convince the powers that be … that this is wrong,” an executive at one of the big firms, he said, adding the perspective of the mvno’s are a bigger existential threat than the drop in house prices.
The board requested anonymity because of the sensitivity of the situation.
The Canadian Radio-television and Telecommunications Commission (CRTC), which regulates the industry, has been probing whether it needs to be for the big players to have access to the MNVOs who are complaining they’re effectively out of the close.
On Wednesday, Bell asked the government to overturn an August the CRTC in order to cut the rates of third-party internet resellers to pay the the large companies in the access.
Robert Ghiz, President and Chief Executive of the Canadian Wireless Telecommunications Association, said that the mvno had been short-sighted and a very bad idea.
He lost his majority in the October elections, and will probably have to rule with the support of the left-leaning New Democrats, who want a crackdown on the invoice.
John Dignan, a spokesman for Innovation Minister, Navdeep Bains, who has the overall responsibility for the ‘wireless’ file, said that the government is serious about reducing wireless bills.
However, he sidestepped questions about exactly what Ottawa would do it, saying that it would depend on what instructions He gave to those who were the Minister of Innovation, after 20 Nov.
The First, ” she said, in the first instance, to work with the industry to ensure that the provided schedule is comparable to the global rates.
As the Canadian monthly, the plans have been gradually declining, they are still more expensive than it is in the United States of america and Australia, which like Canada is a vast and underpopulated country.
Industry players are complaining that Liberals are, on the basis of the old data, and keep in mind the CRTC said in between 2016 and 2018 are reduced by up to 35%. Big companies have this year also introduced a new unlimited monthly plan, which will sell for between C$50 and C$70.
“They could probably achieve that target of 25% of the total), simply by continuing to encourage the facilities to competitors on the basis of our country,” said Ghiz.
Telus spokesman Richard Gilhooley said the company looked forward to working with all parties to achieve our common goals”. Rogers said that over the past five years, the cost of the data relating to the brands have dropped by 50%.
Call refers to a request for comment to the CWTA.
Reporting by David Ljunggren; Editing by Marguerita Choy