Canada's cellphone service gap isn't just an inconvenience—it's a structural problem rooted in a lack of competition and tower-sharing rules. According to a recent gas-station commentary from a Canadian, “In Bancroft, I saw this only this week” the current system, which allows for two sets of cellphone towers (TELUS/Bell and Rogers/Freedom), has been a significant factor in the poor cellphone service in Canada.
Cellphone tower duopoly — how it works
Canada’s cellphone landscape is dominated by a duopoly: TELUS and Bell on one side, Rogers and Freedom on the other. This setup has been in place for years, with each side managing their own cellphone towers. The lack of mandated tower sharing means consumers may have only one bar if their provider has no towers in the area. For instance, a consumer with Rogers may have poor service in an area dominated by TELUS/Bell towers, and vice versa. This leaves many Canadians frustrated as they seek reliable coverage. The duopoly structure has created a barrier to entry for smaller competitors. Because there's no mandated tower sharing, smaller providers are left to build their infrastructure from scratch. Consumers are left with a lack of alternatives, and the major providers can charge higher prices without much competition.
A global trend of monopolies and market control
Canada’s duopoly is a localized version of a global issue. The nation's large geographic area and comparatively low population has fostered a competitive challenge, limiting choices for consumers. Canada lags behind other countries who have more extensive MVNOs (Mobile Virtual Network Operators) and tower-sharing rules. In other countries, tower-sharing and MVNOs have significantly improved cellphone services. To illustrate, Australia, which has a comparable population and geography, has over 30 MVNOs. These MVNOs use existing infrastructure and provide greater choices. In Canada, there's no mandate for tower sharing, which limits competitors to create their infrastructure from scratch. Unfortunately, Canadian consumers don't enjoy the same benefits as Australian consumers. The lack of competition means higher prices for consumers and lower transparency
Toward a more transparent and competitive land
Cell tower use
Over the years, the biggest problem in Canada has been access to cell phone towers. This issue arises due to different cell phone providers owning different cell towers. With no mandated tower sharing, when a tower owner and a provider don't align, consumers can experience low signal strength, especially in less populated areas. The solution is simple: forcing tower sharing between providers. For example, Rogers can share towers with Bell. This will help consumers who live in Bancroft or other similar towns. They will no longer have to worry about poor coverage in areas they live in and move about.
The role of MVNOs
MVNOs compete with the big carriers to provide phone communication services. They use large carriers' infrastructure but give consumers a cheaper, more adaptable option. Smaller cells can exist and grow by using the large carriers' infrastructure. This competition will mean consumers can pay less for their cell phones. Implementing MVNOs will allow Canadians greater choice and decrease the costs of their cell phones. Implementation of MVNOs needs more than just a concept. It requires financial support, economic reforms, and political will. This can be achieved with wholesale pricing for smaller carriers, so they can make a profit and surpass the ever-growing competition.
Smaller providers
Making competition possible in Canada will require the integration of smaller providers. Smaller providers must be given access to the infrastructure of already existing towers. They need to be granted financial support and given incentives for existing telecommunication companies. Greater competition in the telecommunication sector will allow smaller providers to grow and give the people of Canada better and cheaper alternatives.
Ensuring the change
For the next time you are in Canada and feel frustrated by the lack of coverage, remember you can demand change. There are specific steps you can take:
Contact your local representative
Contact your local politician or political representative, and demand action. The more citizens voice their concerns, the more politicians will listen.
- Use social media: Use hashtags (#towersharing, #MVNOs) for the issue to gain momentum.
- Email campaigns: The Ministry of Innovation and Science and Economic Development should be contacted regarding the matter.
Write to the CRTC
The Canadian Radio-television and Telecommunications Commission (CRTC) can mandate tower-sharing and allow competition. Writing to them and raising the issue will compel them to act.
Support local competitors
Support small, local cellphone providers. This will allow them to grow and give the people of Canada better options. Canada’s cellphone service landscape has been dominated by a duopoly for years. However, with mandated tower-sharing and the introduction of MVNOs, the current system can be transformed. This will allow consumers to have a choice and bring cell phone bills down, helping Canada’s telecommunications industry advance.
Questions readers ask
What exactly is a duopoly in the context of Canada's cellphone service?
A duopoly in this context refers to the dominant structure of Canada's cellphone market, where two main groups control the service. One group is TELUS and Bell, and the other is Rogers and Freedom. Each group operates its own set of cellphone towers, leading to a lack of cooperation and shared infrastructure, which results in poor service for consumers.
How does the lack of tower sharing affect my phone service?
The lack of tower sharing means that if you're a customer of a provider that doesn't have towers in your area, you may experience poor or no service. For example, if you're a Rogers customer in an area dominated by TELUS/Bell towers, you might only have one bar or no service at all. This is because there's no mandate for these providers to share their towers, so consumers are left with limited options.
Why does Canada have such a limited number of MVNOs compared to countries like Australia?
Canada's limited number of MVNOs (Mobile Virtual Network Operators) is primarily due to the lack of mandated tower sharing and regulatory barriers. In countries like Australia, which has a comparable population and geography, there are over 30 MVNOs because of more extensive tower-sharing rules. This allows smaller providers to use existing infrastructure, fostering more competition and choice for consumers.
Can smaller cell phone providers ever compete with the big carriers in Canada?
Currently, smaller providers face significant barriers to entry in Canada. Because there's no mandated tower sharing, they have to build their infrastructure from scratch. However, if the regulatory environment changes to allow for more tower sharing and the introduction of more MVNOs, smaller providers could become more competitive, offering consumers more choices and potentially lowering prices.
What are the potential benefits of forcing tower sharing between providers?
Forcing tower sharing between providers could significantly improve cellphone service for Canadians, especially in less populated areas. This would mean consumers wouldn't have to worry about poor coverage just because their provider doesn't have towers in the area. Additionally, it could foster more competition, driving down prices and increasing transparency for consumers.
Why do Canadians pay more for cellphone services compared to consumers in other countries?
The lack of competition in Canada's cellphone market is a significant factor in why Canadians pay more. With only two main groups controlling the service and no mandated tower sharing, consumers have limited choices. This allows the major providers to charge higher prices without much competition. In contrast, countries with more MVNOs and tower-sharing rules often see lower prices and more choices for consumers.
Can I do anything as a consumer to push for better cellphone service in Canada?
As a consumer, you can advocate for regulatory changes that promote tower sharing and the introduction of more MVNOs. Reaching out to your local representatives, participating in public consultations, and supporting organizations that advocate for better cellphone service can help push for these changes. Additionally, you can vote with your wallet by supporting smaller providers when possible, encouraging more competition in the market.
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