The Globalive issue has been flogged to death in the media. This company represents the only true potential for increased national wireless competition in Canada. This company is the only hope Canadians have of disrupting the oligopoly that is Rogers (RCI.B.TO), Telus (T.TO), and Bell (BCE.TO), and creating real competition to drive down Cellular Phone Rates.
At Investing in Canada, we have explained this issue over and over throughout a number of articles:
- Government of Canada to Comment on Wireless Providers
- Canadian Big 3 Telecoms Scramble to Defend Against New Rivals
- New Cell Phone Competition: What’s in store for Canadian Telecom Giants?
Or for the media’s latest response refer to the recent Globe and Mail article: http://www.theglobeandmail.com/report-on-business/telecom-competition-alive-and-well-john-bitove/article1374601/
If you are familiar with this Wireless Carrier issue than you likely have a strong opinion and I would like to hear it. I am of the belief that it is time for Canada to pull itself out of the dark ages and adopt real free trade. So Globalive has a majority foreign owner ship, so what? This company would employ thousands of Canadians to operate; the CEO is Canadian isn’t he?
It was only this past August the CBCNEWS reported in their article Canadian cellphone rates among world’s worst that according to a new international study, the average Canadian cellphone user is paying some of the highest bills in the developed world. Is Canada that different that citizens should continue to be gauged? Rogers, Telus, and Bell would like you to believe so. The truth is far different however. There are many countries with more dispersed populations with rugged terrain that have far lower wireless rates than Canada. If this were the scenario, shouldn’t cellphone rates be lower in metropolitan areas where the majority of Canadians live?
This article references Sharks and Piranhas, which seems fitting. The big sharks are the oligopoly of Rogers, Bell and Telus while the Piranhas are the unestablished so called new competition coming into Canada. It’s very understandable that the big 3 wireless carriers don’t want more competition, but also understandable that any competition wants Globalive eliminated.
Piranha John Bitove of Data & Audio-Visual Enterprises Wireless Inc. is no different than the big 3 Cell Providers. His incentive is one less competitor, which he believes to be better. I say he is being very near sighted. If he were to consider some potential long term implications of allow Globalive into Canada than he might perceive some potential alliance in the future. I think, let Globalive do the heavy lifting against the oligopoly and then offer yourself up for a buyout in a couple of years. I’m sure all parties to this issue would be willing bidders. Don’t attempt stab other wireless start-ups in the back just because you are behind them. If Globalive is allowed to operate you may just become bate for retaliation.
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could not agree more. we really need competition, the onerous contracts and terms are very expensive to your cellular health. I have other plans in Mexico and the US due to travel and operate at a fraction of the cost in Canada. while they have the control they have extracted millions from Canadian consumers. Long distance rates are shameful. I could go on at length but would just pile it up higher and deeper.