The Globe and Mail reports in its Wednesday, May 4, edition that it was announced this week that BCE is buying Manitoba Telecom Services. The Globe's guest columnist Tony Clement wonders whether
this deal is good for Canadians.
As it stands, Manitoba and Saskatchewan
have some of the
cheapest cellular plans available
in Canada, thanks to an increase
in competition in those provinces,
with MTS in Manitoba and
SaskTel in Saskatchewan competing
for customers with the other
nationally recognized carriers.
This is a case of increased competition
bringing down prices for
consumers. Mr. Clement ponders whether increased
competition automatically brings
better service.
In a move
to make this deal more palatable
to regulators (who may not react
kindly to a decrease in competition),
it has been reported that
BCE will, in a separate deal, sell
a third of MTS's postpaid
subscriber base and various retail
locations to Telus.
With Bell and Telus slicing up
MTS between them, it is up to
these companies to make the
case to consumers and regulators
that this deal will benefit Canadians
with an increase in service
throughout Manitoba and the
maintaining of the current pricing
level.
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