Reports that U.S. telecom giant Verizon may be preparing to enter the Canadian market has sparked considerable speculation on the likely impact of a company with a market cap greater than Bell, Rogers, and Telus combined. While much of the discussion has centered on wireless pricing, my weekly technology column (Toronto Star version, homepage version) argues that the more significant development may be the shift toward a single North American communications market.
Canada and the U.S. share much of the same communications infrastructure – the same North American numbering plan (calling codes), closely aligned spectrum policies, and easy access to broadcast signals along the border – yet for decades the two systems have been separated through regulation. Foreign ownership restrictions, Canadian content requirements, and simultaneous substitution policies (which lead to the annual complaints about missing U.S. commercials during the Super Bowl) have all ensured that the two markets remain distinct.
In recent years, new technologies have slowly chipped away at the communications divide.
