Will America's AT&T and T-Mobile merger trigger aftershocks in the Canadian telecom industry?

Posted by Knowlton Thomas

When AT&T announced on the weekend it would buy T-Mobile in full for $39 billion, few saw this coming. But while both companies serve the U.S., this unexpected earthquake in America's telecom industry may be further reaching than many Canadians would guess. 

Some industry sources are firm in their belief that this major shift will trigger aftershocks north of the border.

Quoth the Financial Post:

"In telecom, scale matters," one Bay St. analyst said. That is something relative newcomers Wind Mobile, Mobilicity and others are still striving for as they vie for market share with far larger industry incumbents Rogers Communications Inc., BCE Inc.'s Bell Mobility and Telus Corp.

Rules established by Ottawa a few years ago to nurture competition prohibit Rogers, Bell and Telus from buying up the new operators, or rather the airwave licences each holds, for another two years. So as Wind and Mobilicity as well as Public Mobile fight tooth and nail to gain subscribers - often at the expense of the others - rumours of an inevitable combination continue to swirl.

"There is growing probability that the minors (will) consolidate to get themselves more market power and access to capital," the analyst said.

A legal source in the article observes that three to four carriers appears to be the unwritten maximum any given country can maintain in the telecom industry, and that five seven competing carriers creates conflicts and complexities that are not sustainable—making mergers inevitable.

There have yet to be talks or even rumours of any mergers, but if there is no consolidation among the new entrants, they will almost certainly be snatched up by the Big Three as soon as this option becomes available, once again leaving our country with an oligopoly. But maybe that's just the nature of the beast.

Company:
Telus Corp.
Website:
http://www.telus.com
Location:
Vancouver, British Columbia, Canada

Technology is a key enabler for TELUS and our customers, providing advantage and differentiation in the marketplace. By managing the life cycle of current technologies and the timely introduction of new technologies we deliver superior service value to our customers and long-term growth oriented investment performance to our shareholders. For investors, TELUS is succeeding in managing technology and capital... more

Company:
Bell Canada
Website:
http://www.bell.ca
Location:
Vancouver, British Columbia, Canada

Bell is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell brand, the Company's services include Bell Home Phone local and long distance services, Bell Mobility and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television,... more

Company:
Rogers Communications
Website:
http://www.rogers.com
Location:
Toronto, Ontario, Canada

We are a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada's largest wireless provider and the operator of the country's only national Global System for Mobile Communications ("GSM") based network. Through Cable we are one of Canada's largest providers of cable television services as well as high-speed Internet access... more

Company:
Wind Mobile
Website:
http://www.windmobile.ca
Location:
Toronto, Ontario, Canada

Simply put, we want to create the most unforgettably positive customer experience in Canada. How? By speaking with you, not at or over you. By making every site you visit, every store you set foot in and every call you have with us into a meaningful conversation to help build something better - together. We'll make it as easy as possible to be a customer. You'll have more control over your mobile experience than... more

Company:
Mobilicity
Website:
http://www.mobilicity.ca
Location:
Vaughan, Ontario, Canada

We believe that Canadians deserve an alternative wireless experience that delivers better value, more freedom and most of all choice. Simply a better wireless experience No Term Contracts Unlike other providers that lock you into a term contract, Mobilicity has no term contracts or cancelation fees. We are so certain that you’ll love us and want to stay that we don’t have to force you – the choice is yours to make... more

Company:
Public Mobile
Website:
http://www.publicmobile.ca
Location:
Toronto, Ontario, Canada

Formed in 2008, Public Mobile provides unlimited talk and text services to value conscious customers in Ontario and Quebec. There are no contracts, no credit checks and no surprises. Public Mobile launched its network service in May 2010 in Toronto and in June 2010 in Montreal. Public Mobile is building its network from Windsor to Quebec City. The company purchased its spectrum licence for $52M in July 2008.... more


blog comments powered by Disqus

Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more



Who's Hiring



Recent Comments

Powered by Disqus