Canada's main issue is that we've allowed duopoly on ALL telecom (i.e. we essentially have 2 major national communications networks encompassing all forms of telecom, including phone, TV, cell phone, internet etc.)
Rogers is one of those networks, and it basically covers 30-40% of the country's communications.
There are a few smaller regional players, such as Shaw, Cogeco, Videotron etc. I think we might be the only developed country that's allowed this. I know in the US, there are 5 major mobile networks, some of who offer internet etc., but there are major internet providers separate from the mobile network providers.
The reason this has happened, is because building networks is really expensive making it so that being a regional provider is a tough business, and the 3 major companies have played the laws to their advantage. They've done acquisitions over time, and used the rules around foreign investing to block a lot of major development in 3rd and 4th networks from happening.
This is why the Rogers/Shaw deal should be blocked and the government needs to allow foreign investment to be able to come in and build out networks.
This problem can only be solved in 1 of 2 ways, and only through regulation unfortunately:
- A complete overhaul of our rules which will allow foreign investment in our communications networks in Canada
- A break up of the 2 networks
The second is not likely to happen. Rogers/Bell/Telus are some of the wealthiest companies in the world, and are at the top in terms of deep pockets in Canada. They will essentially fight the government on any sort of attempt to break them up and handily win.
The government has a much better shot at changing the rules to allow foreign investment, but they don't want to do it. The reason that's the case is because the leadership of the telecom companies has many shared members with prominent politicians, and also outright owns all forms of media in the country except for CBC, Post Media, and Corus.
Post Media is a known right-leaning org and Corus is effectively owned by Shaw, so their sway in the country's politics is not as big as Bell Media and Rogers Media who both own much bigger networks.
That means that they can run a very effective smear campaign against any politician or part who dares to allow foreign competition to enter Canada.
Rogers is one of those networks, and it basically covers 30-40% of the country's communications.
There are a few smaller regional players, such as Shaw, Cogeco, Videotron etc. I think we might be the only developed country that's allowed this. I know in the US, there are 5 major mobile networks, some of who offer internet etc., but there are major internet providers separate from the mobile network providers.
The reason this has happened, is because building networks is really expensive making it so that being a regional provider is a tough business, and the 3 major companies have played the laws to their advantage. They've done acquisitions over time, and used the rules around foreign investing to block a lot of major development in 3rd and 4th networks from happening.
This is why the Rogers/Shaw deal should be blocked and the government needs to allow foreign investment to be able to come in and build out networks.
This problem can only be solved in 1 of 2 ways, and only through regulation unfortunately: - A complete overhaul of our rules which will allow foreign investment in our communications networks in Canada - A break up of the 2 networks
The second is not likely to happen. Rogers/Bell/Telus are some of the wealthiest companies in the world, and are at the top in terms of deep pockets in Canada. They will essentially fight the government on any sort of attempt to break them up and handily win.
The government has a much better shot at changing the rules to allow foreign investment, but they don't want to do it. The reason that's the case is because the leadership of the telecom companies has many shared members with prominent politicians, and also outright owns all forms of media in the country except for CBC, Post Media, and Corus.
Post Media is a known right-leaning org and Corus is effectively owned by Shaw, so their sway in the country's politics is not as big as Bell Media and Rogers Media who both own much bigger networks.
That means that they can run a very effective smear campaign against any politician or part who dares to allow foreign competition to enter Canada.