The Globe and Mail on why telecom deregulation may actually result in higher, not lower pricing. As Ivey School of Business professor Guy Holburn notes "It's a fairly concentrated industry. It's just not obvious rates are going to go down."
Telecom Reform and Consumer Prices
One Comment
Recent Posts
Government Doubles Down in Defending Bill C-2’s Information Demand Powers That Open the Door to Warrantless Access of Personal Information 
The Law Bytes Podcast, Episode 243: What Are Canada’s Digital Policy Plans as Parliament Returns from the Summer Break? 
Grocery Shopping While Jewish 
Privacy Lost: How the Government Deleted Bill C-11’s Key Privacy Principle Just Two Months After Passing it Into Law 
Out of Nowhere: TIFF Undermines Artistic Freedom of Expression With Forced Name Change of October 7th Documentary
Because it’s more like long distance
It may not be obvious to Holburn, but there is less concentration in telephony than he acknowledges. Perhaps in a battle of the business schools, I see that Mihkel Tombak of Rotman thinks that prices could go down.
As I am quoted in that same article, “You have all sorts of outsiders who can discipline the pricing from the incumbent phone companies.” Look at all the alternatives: cable-based voice services, cell phone competition, over-the-top VoIP – local phone service is more likely to behave like long distance.
And one thing is for certain, consumers won’t save money under regulated pricing.