MANY OF THE ARGUMENTS in favour of Mobile Virtual Network Operators (MVNOs) are not informed by facts, as evidenced by Samer Bishay’s editorial from February 16 (Wireless review is critical for Canada; MVNOs must be mandated).
Using actual data from Canada and other OECD countries, the evidence clearly demonstrates that implementing wholesale MVNO access regulation will harm Canadian consumers. MVNOs have little to no competitive impact as their business model focuses on identifying niches in the market, rather than competing in existing markets. They are generally not sustainable, as market saturation and competition yields few, if any, viable niches in the market. The evidence is clear: there has been no economic change in Canada or elsewhere that warrants a change in the Commission’s 2015 decision that MVNO regulation was not beneficial, but rather would be harmful.
Mr. Bishay’s comments on wireless pricing in Canada are also inaccurate. Numerous price comparisons have shown that far from being among the highest in the world, Canadian wireless prices are in fact among the most competitive. The CRTC itself, the industry’s own regulator, reported in its most recent Communications Monitoring Report that wireless prices decreased by as much as 35% between 2016 and 2018. Notably, the wireless market has further innovated and now includes plans that avoid overage
charges.
Christian Dippon (right) is an economist with NERA Economic Consulting. He has appeared before the CRTC as an independent expert consultant on behalf of the Canadian telecom industry and has advised the Competition Bureau. He will be appearing on behalf of Telus at the CRTC wireless policy review hearing this week.
