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
Unleashing the Trolls: Ontario Court Opens the Door to Liability for Influencers Who Weaponize Their Audiences 
Why Ottawa Will Likely Join the U.S. in Opposing the Quebec Online Streaming Law at the Centre of the Trade Battle 
Online Harms’ Forgotten Generation: Why the Government Needs to Pay Attention to Protecting Seniors 
Culture Off the Table? What the Collapsed Canada-U.S. Trade Talks Reveal About the Carney Government’s Cultural Policy 
Digital Trade Alignment: What May Be in Play in the Canada-U.S. Trade Deal
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.