Winnipeg Free Press - PRINT EDITION

Verizon shakes our cellphone Big 3

  • Print

THE impact of the potential arrival of American giant Verizon in Canada's cellphone market has left analysts divided, with some seeing benefits for consumers and others a lot of negatives.

Verizon, the largest American carrier, has almost 100 million subscribers, easily dwarfing the combined 25 million held by Rogers Communications, Telus Corp. and Bell Inc.

News that it was in the market for some of Canada's smaller players sent the shares of the big three Canadian companies tumbling Tuesday.

National Bank analyst Adam Shine called pullback in share prices a likely "overreaction," but said he expected some "acute" cost-cutting, including layoffs, as the Canadian firms move to deal with a big new competitor.

"This will mean significant layoffs which could easily trump the hiring to be done by Verizon, which besides a needed presence in retail outlets, should be able to initially handle a lot of functions (marketing, billing) from the United States," Shine said in a research note.

Shine also said the arrival of Verizon could also mean fewer low-cost monthly plans for cellphone users amid new-entrant consolidation, adding the price of Verizon's arrival "may ultimately prove expensive for Canada."

But U.S.-based Edward Jones analyst Dave Heger said the entry of Verizon as a fourth, large player would likely be positive for consumers.

"I certainly think Verizon would try to be competitive and creative with pricing plans," Heger said from St. Louis, Mo. "Somebody like Verizon would have a better chance of making a go of it than a small startup."

"Certainly, the Canadian government has made it clear they'd like to have a fourth competitor in each geographic area," Heger said.

The Globe and Mail has reported Verizon has made an initial $700-million offer for Wind Mobile and is starting talks with financially struggling Mobilicity. Both small carriers have just over 850,000 subscribers between them.

Verizon refused to comment Wednesday on its possible entry into the Canadian wireless market.

 

-- The Canadian Press

Republished from the Winnipeg Free Press print edition June 27, 2013 B5

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Can Steeves or Bowman catch Wasylycia-Leis?

View more like this

Photo Store Gallery

  • A goose comes in for a landing Thursday morning through heavy fog on near Hyw 59 just north of Winnipeg - Day 17 Of Joe Bryksa’s 30 day goose challenge - May 24, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Two Canadian geese perch themselves for a perfect view looking at the surroundings from the top of a railway bridge near Lombard Ave and Waterfront Drive in downtown Winnipeg- Standup photo- May 01, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Should panhandling at intersections be banned?

View Results

View Related Story

Ads by Google