CRTC chair says it's hard to sustain low wireless, internet prices in long term
Thursday, May 20, 2021
It's agreed that Canadians should pay less for wireless and internet services but it's difficult to keep prices low for long without investing in networks, CRTC chairman Ian Scott said Thursday.
Scott, who heads Canada's federal telecommunications regulator, said retail prices could go down faster if internet and wireless service resellers just paid to use somebody else's networks.
But countries that have a lot of resellers tend to see service quality fall and consumer prices rise again in the longer term as rivals cut their profit margins to unsustainable lows to win customers, Scott said.
"And that doesn't really give us confidence that there will be sustainable competition in the future," Scott said.
On the other hand, he said, when a company invests in the infrastructure needed to provide those services, those assets don't go away "if the firm were to disappear, so to speak."
"And it creates an opportunity for someone else to acquire those facilities, and perhaps they'll enter the market with a lower unit costs, and have a stronger ability to compete."
Continued at https://www.nationalnewswatch.com/2021/ ... long-term/