The Globe and Mail reports in its Friday edition that an unusual thing happened in Canada over the past five years: wireless prices dropped. A Globe editorial says that Canada's notoriously high cellphone service prices declined by 40 per cent during that period. Still, the lack of competition in Canada's telecom sector is still a big problem. As part of the federal government's conditions for allowing Rogers's takeover of Shaw in 2023, Shaw's Freedom Mobile was sold to Videotron. In turn, Videotron agreed to offer wireless plans for 20 per cent less than those offered by the major carriers at the time for 10 years. The measure does seem to have boosted competition. Canada still ranks the 14th most expensive. But that momentum is already fading, with prices rising again. Customers know they have few alternatives, so they put up with poor service rather than switch to another carrier. The big telcos have been vigorously fighting to avoid being forced to allow more competitors on their networks. The CRTC should also make sure the rates that the upstarts pay are reasonable enough that they have a fair chance at running profitable businesses, despite their protestations. The feds should also loosen foreign ownership rules.
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