Hey IT Nerd! Are Canadian’s Now Out Of Luck Because Verizon Isn’t Coming?

I got this question in my inbox this morning:

IT Nerd. Some questions for you. Now that Verizon has decided to pass on Canada, does that mean that Canadians should prepare to get the shaft from RoBellUs [IT Nerd: RoBellUs = Rogers, Bell, and Telus since they are perceived by Canadians to be one in the same]? Also is there any possibility that they have learned their lesson and treat their customers better? Finally, have these three won the war?

Thanks for the questions. Let me answer them separately:

Now that Verizon has decided to pass on Canada, does that mean that Canadians should prepare to get the shaft from RoBellUs?

I think it still depends on whom places deposits on September 17th for the spectrum auction. If nobody outside of Canada or nobody who the big three perceive as a threat places a deposit, then yes. Canadians will not see any relief when it comes to wireless prices. But if say a Vodafone places a deposit, then I would expect rates to drop as a preemptive measure. It also depends on who wins the auction, or who loses it. For example if one of the big three misses out on winning some of the valuable 700 MHz spectrum, that carrier might drop prices to keep customers from defecting to another carrier. So the bottom line is that this is still very much an open question.

Also is there any possibility that they have learned their lesson and treat their customers better?

Seeing as all three telcos stock values went up yesterday, many people think it’s back to business as usual. I personally don’t think so. I think they might have learned something. But we’ll have to see if that translates into anything that customers see and feel over the medium term. As for what they learned? Perhaps it’s the fact that they operate in an environment where their customers don’t like them and would switch if an option was available to them. Thus the big three need to prevent that from becoming something that they cannot control should a fourth player set up shop in Canada.

Finally, have these three won the war?

No. I have good relationships with Telus and Rogers and the both tell me the same thing. This is not about Verizon. This is about the rules that the 700 MHz spectrum is being auctioned off under and the desire for a level playing field when it comes to telecom policy in Canada. Thus the “war” if you want to call it that continues because none of that has changed. Until those items are addressed, there’s nothing stopping someone else from taking Verizon’s place.

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