According to published reports over the weekend, Verizon is feeling the squeeze in Canada.
For years, Canada’s mobile phone service industry has been partitioned among three companies: Bell, Rogers, and Telus.
Today, however, the top carrier in the United States – Verizon – is looking to make major moves up north by expanding into Canada.
Not susprisingly, Verizon isn’t going to receive a warm welcome from the competition. Current chatter suggests that the leading Canadian mobile communication companies may unite in some fashion to help prevent Verizon from planting its flag on Canadian soil.
In an effort to keep Verizon out, they want Canada to look less appealing for the wireless mobile carrier. The three companies have banded together and started a public ad campaign to get Canada’s anti-consolidation laws abolished.
As of this writing, none of the major Canadian companies can purchase smaller companies to expand their power. However, the same rules don’t apply to foreign companies. Since the three major companies in Canada can’t buy up all the smaller companies, Verizon can come in and buy them all to create a fourth major mobile communication entity.
Abolishing the laws would allow the other companies to bid on the smaller companies too, thus raising the pricing and making the move a lot less affordable, The Verge reports.
The three mobile phone companies also want Canada to allow bids on a broader spectrum range like the one allowed in the U.S., which would increase service options. Whether or not the government agrees to these changes will be a long debate but if Verizon manages to act fast, it may be able to take over before any changes are made.
