MONTREAL – The Canadian wireless sector is not only well-priced, it offers better service than many other large industrialized countries, and does not need new “interventionist measures” to promote competition, according to a new publication from the Montreal Economic Institute (MEI).
The organization published a new Viewpoint Monday entitled Three Myths about Competition in the Canadian Wireless Sector, timed to coincide with the start of the CRTC’s hearing into the wholesale wireless market.
According to the document, wireless prices in Canada are lower than those in the United States, Japan, and Australia. Moreover, by comparing different mobile wireless service bundles in 34 countries, the OECD concludes that Canada is about average. In addition to competitive pricing, the Canadian wireless sector offers better than average service quality when compared to that of other large industrialized countries, and is ranked 8th and 9th out of 25 in terms of download and upload speeds.
"The negative perception of the industry that justifies interventionist measures is simply mistaken”, said Martin Masse, co-author of the study, in the news release. “Canadian consumers enjoy one of the most advanced telecommunications networks in the world, are among the biggest users, and pay prices that are generally close to the average of what is found in other industrialized countries."
"Instead of trying to micromanage competition in the telecommunications industry, the government should concentrate on eliminating the obstacles that prevent true, dynamic competition," added fellow co-author Paul Beaudry.
The Montreal Economic Institute is an independent, non-partisan, not-for-profit research and educational organization. Through its studies and its conferences, the MEI stimulates debate on public policies in Quebec and across Canada by proposing wealth-creating reforms based on market mechanisms.
