Fourth national wireless carrier could result in $1B gains: Competition Bureau

OTTAWA – The Competition Bureau says a fourth national wireless carrier could benefit the wider Canadian economy and consumers by $1 billion a year.

The bureau made the calculation in a submission to the CRTC urging measures to increase competition in the sector dominated by three large players.

The bureau says the largest wireless companies — Rogers (TSX:RCI.B), Bell (TSX:BCE) and Telus (TSX:T) — have the market power to maintain prices above competitive levels for a significant period of time.

As well, the big players have the ability to charge high prices to new companies for wholesale mobile services the newcomers need to service their customers.

The bureau says the CRTC should ensure that new entrants have access to wholesale services with regulatory measures if and when they are needed.