Canada PoliticsHarper government, telco industry trade barbs over Verizon
Industry Minister James Moore is fighting back against Canada's major telcos calling their latest campaign "dishonest" and "misleading."
At issue is the federal government's policy government's policy which aims for greater competition and liberalized investment in the wireless industry. Specifically, Rogers, Telus and Bell have teamed-up to fight against unfavourable rules in an upcoming wireless spectrum auction and U.S. based Verizon's ability to enter the market by purchasing start-up carriers Wind Mobile and Mobilicity.
The trio of large companies has launched an aggressive campaign with ads on radio, television and in print.
[ Related: Rogers trying to stop Verizon grabbing Canadian rivals ]
Last week, the telcos upped the ante with an open letter, penned by BCE board member Anthony Fell, questioning Minster Moore's comprehension of the issue.
I am dismayed by the way the telecom/Verizon file has been handled by the Ministry. George Cope, Darren Entwistle and Nadir Mohamed are three of the most capable Chief Executive Officers in Canada and for Minister Moore to allocate them a half hour to present their case, is disrespectful. It’s as if the Minister is just going through the motions. For Minister Moore, after less than a month in office, to suddenly become an expert on major telecom policy and make grand pronouncements on this decision without far more detailed analysis, discussion and understanding is quite unseemly. To be frank, there is an arrogance about both the Ministry and the Department which I believe is inappropriate.
The highly biased spectrum auction rules were designed for small, startup Canadian companies. At the time there was absolutely no thought or consideration given to the possibility that one of the world’s telecom giants would swoop in and take advantages of these very substantial subsidies and preferential treatment.
Moore responded in kind with a letter on Tuesday evening. Here are excerpts from his post on his website.
"I recognize that Canada's largest wireless companies have responsibilities to their shareholders and their bottom line, and I also understand the need to pressure our Government to design policies that serve the interests of their firms. However, Mr. Fell's letter is filled with assumptions about the outcome of the upcoming spectrum auction, and misinformation about the intent of our Government's policy.
In his letter, Mr. Fell says our policies are merely "a political populist initiative to capitalize on a mis-informed public view" of Canada's telecommunications industry. I can assure Mr. Fell that our policies were quite deliberate, based on a great deal of consultation with all players – including Canada’s wireless companies – and will serve Canadians well.
Unlike Mr. Fell, I do not believe the public is misinformed. I think Canadians know very well what is at stake and they know dishonest attempts to skew debates via misleading campaigns when they see them. Equally, Canadian consumers know instinctively that more competition will serve their families well through better service and lower prices.
In addition to the ads and letter writing campaign, the telcos have launched a website — fairforCanada.ca — which includes literature and videos stating their position.
Unfortunately, for them, after years of questionable customer service, they don't have public opinion on their side.
In a poll commissioned by Canadian Business last month, 71 per cent of Canadians felt Verizon's entry into the market would be good for consumers while 65 per cent believe it will be good for the industry overall.
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According to Digital Home, the major carriers in Canada have the bulk of the market share.
New wireless entrants such as WIND, Mobilicity, and Videotron account for only 4 percent of the 27 million cellphones in the country.
(Photo courtesy of the Canadian Press)
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