Canada: Skepticism grows over proposed code of conduct to fix problematic wireless market

As Canada proposes its first draft of a national code of conduct for wireless phone companies to appease growing consumer dissatisfaction with the industry, some analysts say that while the idea is a start, the industry would be better off with more competition. Among the top consumer complaints are dramatically high roaming prices and major difficulties encountered when trying to switch companies. The Canadian Radio-television and Telecommunications Commission has recently opened public hearings concerning the first proposal of its code of conducts to fix these issues; companies have already begun to respond as Rogers Communications Inc. just announced a “worry-free” flat-rate roaming charge. But one analyst says that while the code of conduct may not fully grasp the industry’s problems, noting that it is “unlikely” that many of the provisions in the draft – including capping roaming fees to $50 – will make it into the actual code. The analyst additionally notes that three companies dominate 90s percent of the nation’s market – Rogers, Bell and Relus – and until that leadership is broken the industry will continue to serve as a dysfunctional one for consumers.

 

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