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Canada: Rogers sees failed future with four wireless players

By  |  May 24, 2014

A future in Canada’s wireless market is unsustainable with four major rivals, according to top operator Rogers Communications.

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    Rogers CEO Guy Lawrence spoke out against the government’s encouragement and pursuit of four wireless competitors, arguing that nations that have attempted similar market structures have been unable to do so in the long-run, particularly in Europe.

    ”What you saw in Europe was a number of different countries who pursued the four-carrier option for a period of five to seven years,” the executive said. “It was politically very populist and they wee happy to follow that. What you clearly see now, and I cite Germany and France, is that they’ve started to realize that given the capital complexity involved in these companies, it is very difficult to support a fourth carrier.”

    Lawrence called for a change in Canada’s policy of pursuing a fourth carrier. The nation currently houses three main rivals, Rogers, Bell and Telus. Fourth carrier Wind is much smaller comparatively, reports say, but could be built up to introduce more competition in the market, the government says.

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