The emergence of more wireless players in Canada will lead to “lower prices for consumers, more choice and better service”.
- Industry Canada Minister Jim Prentice after the federal government decided to set aside spectrum to let new competitors enter the $11-billion market.
Prediction: There will be more choice and perhaps better service but don’t hold your breath for lower prices. And why is the federal government trying to influence free market dynamics?
Technorati Tags: Canada, Wireless
Presumably because in a small market in an industry that is capital intensive and reserved for domestic players free market dynamics result in an oligopoly, and therefore inefficient pricing and low innovation.
All of which, it appears pretty clear, are in fact a problem here.