Competition in the wireless services market
Retail prices for cellular services are generally going down in Canada. This is a positive sign that there is increasing competition in the market.
However, a small number of providers have a dominant share of the market in certain areas. Market power is a company’s ability to raise prices above the level that would be seen in a more competitive market. Among Canadian providers, we found that Bell, Rogers and Telus have market power in all provinces except Saskatchewan. In that province, SaskTel has market power. We also found that Bell Mobility has market power in Yukon, the Northwest Territories and Nunavut.
A CRTC review found the prices charged by those four providers and their profits are higher than in other countries. New providers trying to enter the market face barriers in launching services, and consumers face barriers in switching providers. Both of these factors limit competition.
Encouraging competition and lower prices
The CRTC is taking action to help competitors establish themselves in the wireless market. This will help promote competition and lower prices for consumers. It will also encourage investment in infrastructure, such as 5G (fifth generation) technology.
We are requiring that Bell, Rogers, Telus, and SaskTel give regional competitors wholesale access to their wireless networks. This will help these competitors grow their customer base while they build or invest in their own networks. These competitors can also resell their access to other “virtual” providers, which could further increase competition. (Mobile virtual network operators, also known as MVNOs, are companies that use the networks of other wireless providers.)
We have changed the way we set wholesale domestic roaming rates. Instead of the CRTC setting rates, wireless providers can negotiate with each other to try to get better rates. If they cannot agree on a rate, the CRTC will then set the rate. This change is expected to bring lower wholesale domestic roaming rates to the market faster. This will be good for competition because savings can lead to better prices, new promotions, innovative features, and network upgrades.
Bell, Rogers, Telus and SaskTel must implement seamless roaming between their networks and those of their competitors. This will help to reduce dropped calls and interrupted data use when customers move from one network to another, especially during travel. In addition, regional competitors will be able to offer roaming services on the dominant providers’ 5G networks, at terms and conditions set by the CRTC, when they become available.
Related links
- Telecom Decision CRTC 2024-233 – Wholesale roaming service – Review of rates and rate-setting approach
- Decision to reduce dropped calls and interrupted data
- CRTC puts measures in place to spur more mobile wireless competition for Canadians
- Decision on mobile wireless services – Backgrounder
- Your consumer rights for cellphones
- Low-cost and occasional-use wireless service plans
- Roaming charges
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