The non conformer's Canadian Weblog

August 12, 2009

Unacceptable merger between Bell and Telus


“A merger between Bell and Telus, two of Canada’s largest phone and internet companies, is looking “very likely” within the next two years, according to a report from RBC Capital Markets. The impending launch of new cell phone companies, the continuing trend of customers ditching their landlines, and the saturation of internet and television services are combining to eat away at growth opportunities for Bell and Telus, RBC analyst Jonathan Allen said in a research note to clients on Wednesday. Those factors are putting pressure on both companies to cut costs, something they could achieve better as a merged entity, Allen said. The spectre of increasing competition, particularly in wireless, should also ease regulatory and government concerns. A combined Bell-Telus would hold more than 60 per cent market share of the wireless business in six provinces, with the highest concentrations in the Atlantic provinces and Alberta. However, Allen said, the Competition Bureau tends to look at market power rather than just share. With competition set to increase, a merged company will see its ability to control prices lessen. “
“Do not allow mergers of these telecos.”
“Great!   Now they can join forces and price gouge Canadian cell phone users to death.”
“And of course the lap dog (aka CRTC) would allow this to happen to “protect” (rip-off) Canadian consumers, right?
 “On the plus side…..   Choosing a crappy provider for all your communications services will certainly become a lot easier!”
  “Just another blankety blank ( crappy) monopoly with little or no regulation as predicted when the de-regulation craze started almost 30 years ago.” 

We are already now paying some of the highest costs in the world for their poor services, being gouged and they want to be allowed to falsely gouge us some more? Dream on.. Unacceptable

      For those wondering about the state of competition in Canada’s wireless world and where the CRTC stands on the issue, it is perhaps disheartening to read that the CRTC appears to believe the best competition to the established telecommunications companies include, well, the established telcos.

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