Three carriers control 88% of Canada’s telecom market: report
A new study by the Fraser Institute reveals that Canada's telecommunications and broadcasting sectors are still dominated by a powerful few.
A new study by the Fraser Institute reveals that Canada's telecommunications and broadcasting sectors are still dominated by a powerful few, with the three largest wireless providers commanding over 88% of the market.
The report, Promoting Efficient Competition in Canadian Telecommunications and Broadcasting, says this level of dominance reflects “limited competition, high levels of concentration, and significant barriers to entry” that keep prices high for consumers and discourage innovation.
“Canada’s telecommunications and broadcasting sectors are characterized by limited competition, high levels of concentration, and significant barriers to entry,” the report states.
Telus, Bell and Rogers hold 88 per cent of the Canadian market.
During COVID the three companies collected more than $240 million of taxpayer dollars from the wage-subsidy program, a time where Bell and Telus continued to raise shareholder payouts.
The authors argue Ottawa’s approach to promoting competition has often been misguided, relying too heavily on public ownership and control rather than tackling structural issues that prevent new companies from entering the market.
“Policies aimed at promoting competition should focus on reducing regulatory barriers and encouraging new entrants, rather than expanding government ownership or control,” the report says.
The Fraser Institute recommends reforms including changing spectrum allocation policies, lifting foreign investment restrictions, and encouraging targeted infrastructure sharing to reduce costs while preserving incentives for private investment.
“Increasing competition will require reforming spectrum allocation policies, reducing restrictions on foreign investment, and encouraging infrastructure sharing where it can lower costs without discouraging private investment,” the report concludes.
Earlier this summer Bell faced criticism for outsourcing jobs to India, while awarding executives more than $5 million in bonuses.
This is why Canadian consumers have some of the highest telcom and internet charges in the world. Canadas CRTC and government fuels monopolozation in our country by closing our territory from foreign competitors which would offer Canadian consumers more choices thereby allowing more lower and competitive rates for services. The Canadian government under the guise of "Canadian" keeps these Canadian monpolies strong and protected from fair competition and because if this, consumers are unable to pay fair competitive lower prices. This has always been the "Canadian" way. The Canadian consumers get ripped off and abused via our own government's Canadian only policies....