MONTREAL – The federal government’s plan to increase foreign ownership in the telecommunications sector will not result in cheaper wireless service, and could serve to undermine plans for universal access, says Canada’s largest telecommunications union.
Dave Coles, president of the Communications, Energy and Paperworkers Union (CEP), said that CEP-commissioned research actually disputes claims that wireless services are more expensive in Canada than in other countries.
"Existing studies compare pricing in markets that have very different usage, that don’t have special plans with unlimited minutes, or free phones, for example, like we do in Canada," Coles said. "When taking all of that into consideration, Canadian pricing is low compared to other countries. And more foreign competition will not make it lower. Bringing fresh capital to Canada is not what we need. Shaw, Bell and Telus are all flush with capital. We already have lots of competition in telecommunications."
Coles also said that he believes that more foreign competition could result in poorer service.
"Profit-oriented companies will not be interested in providing access for rural and remote areas," he continued. "This must be achieved by consultation and regulation through the CRTC. Foreign ownership will undermine our ability to ensure access to telecom services for all Canadians, including in rural areas and the north."
