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Competition Bureau Raises Concerns Over Canadian Wireless Market

The longstanding debate over the state of wireless services in Canada has veered across many issues – pricing, roaming fees, locked devices, new entrants, and foreign investment to name a few. At the heart of all of these questions is a single issue: is the current Canadian wireless market competitive?

My weekly technology law column (Toronto Star version, homepage version) notes the competitiveness of the Canadian market is a foundational question since the answer has huge implications for legislative and regulatory policy. If the market is competitive, regulators (namely the CRTC) can reasonably adopt a “hands-off” approach, confident that competitive forces will result in fair prices and consumer choice. If it is not competitive, standing on the sidelines is not option, thereby pressuring government and the CRTC to promote more competition and to implement measures to prevent the established players from abusing their advantageous position.

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February 10, 2014 Comments are Disabled Columns

Who Gets a Large Share of Access Copyright Education Licensing Revenues?: US Publishers Say They Do

As the Canadian education community continues to shift away from the Access Copyright licence, relying instead on a combination of site licenses for materials, open access, fair dealing, and individual transactional licences, U.S. publishers are now urging the U.S. government to pressure the Canadian government to take action. The IIPA, […]

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February 7, 2014 10 comments News

CIRA Commits One Million Dollars to Improving Canada’s Internet

The Canadian Internet Registration Authority, the organization that manages the dot-ca domain, has unveiled an exciting new initiative that will deliver a million dollars toward community projects, research, and other related activities (full disclosure: I am a member of the CIRA board and chair of the committee that will review […]

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February 6, 2014 5 comments News

Competition Bureau Raises Wireless Competition Concerns, Concludes Big Three Have “Market Power”

The Competition Bureau of Canada has just released its submission to the CRTC’s consultation on domestic roaming rates and with it left no doubt about its concerns with the state of wireless competition in Canada. Despite repeated efforts of the big three incumbent providers to argue that the Canadian market is competitive, the Competition Bureau has concluded that the big three enjoy “market power.” As the Bureau notes, market power is “the ability of a firm or firms to profitably maintain prices above competitive levels (or similarly restrict non-price dimensions of competition) for a significant period of time.” 

Given its market power, the Bureau finds the wireless incumbents can use roaming to shield themselves from competition. It states:

“Incumbents can use the terms and conditions of roaming agreements to raise their rivals’ costs such that incumbents are shielded from the full effect of their the rivals’ (i.e., entrants) entry. Making it more costly for entrants to access incumbent networks through roaming agreements is one way for an incumbent service provider to relax competitive pressure.

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January 29, 2014 8 comments News