Canada: Federal budget proposal to push for telco consolidation

Financial analysts say they predict Canada’s federal budget proposal will likely include overhauls meant to aid smaller wireless operators and promote consolidation in the industry, reports say.

Barclays Capital’s Philip Huang told reporters that Canada’s Conservative government will likely propose overhauls to the nation’s Telecommunications Act and Radiocommunications Act in efforts to cap wholesale fees charged to independent, smaller operators to use large rivals’ networks.

Further, he predicts the government will look to give telco watchdog CRTC and Industry Canada more power to issue fines and penalties on anticompetitive telcos.

The likely proposals would follow Industry Minister James Moore’s earlier announcement of plans to overhaul the nation’s wireless industry as new entrants struggle to gain a footing against the giants.

Three operators, Bell, Telus and Rogers, control about 95 percent of the market, say reports.

Full Content: Huffington Post

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