YouTube/WochitGeneralNews Verizon’s decision not to enter the wireless market in Canada any more may turn out to be critical for Canadians.
The decision to withdraw its business from Canada may mean that Canadians have to pay more for their cell phone bills, according to many analysts. Verizon's entry in the Canadian market obliged other rival companies to provide new plans for data sharing. Iain Grant, the telecom analyst, said on Tuesday that these data sharing plans were previously not available for tablets and smartphones.
Mr Grant said that even the suggested apprehension of Verizon entering the Canadian market helped the consumers be served with a cheaper price. He feels that there is every possibility that the prices will go up as Verizon has decided not to proceed further on entering the Canadian market.
Verizon Communications Inc. announced on Monday that the company was not interested any more in being one of the contenders in the wireless market of Canada. The announcement was followed by the company's decision to pay $130 billion to Vodafone for buying 45 per cent of shares in Verizon Wireless.
Analyst Troy Crandall does not, on the other hand, believe that the 3 major carriers in Canada are going to announce a hike in price that soon anyway. The companies are competitive, so they are able to understand that most customers have a limited monthly budget for the cell phone bills.
The telecoms claimed that the impending auction is going to favour foreign competitors. The government has apparently been in favour of increasing the competition among telecom companies to benefit the consumers consequently. It has been proposed to have 4 wireless carriers in each region of the country.
Mr Crandall does not find the logic how preventing Verizon from entering the Canadian market is going to benefit the consumers. He feels that the consumers are least thought about while implementing new plans.
Mr Crandall agrees with Mr Grant on the 3 major telecom companies in Canada cornering the majority of the wireless market in the country, which make it even more challenging for attracting foreign companies.