Three of Canada’s largest wireless providers are using revelations about Verizon’s alleged involvement in U.S. surveillance programs—reported by whistleblower Edward Snowden—to mount a campaign aimed at blocking Verizon’s entry into the Canadian market.
The coordinated effort comes from the “big three” carriers in Canada: Rogers Communications, BCE Inc. and Telus Corp. Concerned about the potential impact on privacy and national security, these companies have stepped up lobbying efforts to persuade the Canadian government and the public that allowing Verizon to operate here could increase surveillance and compromise citizens’ privacy.
If the carriers proceed with a public campaign, advertisements are expected to appear in local newspapers, on radio and across online channels as early as next week. The campaign’s messaging will focus on the risks associated with a major U.S. telecom perceived to be subject to U.S. surveillance authorities.
At the heart of this unusual alliance between intense competitors is a dispute over wireless spectrum. Four new spectrum blocks are scheduled to become available in 2014. Under current rules, a new entrant such as Verizon could bid for two of those blocks while each existing Canadian operator would be limited to two. That arrangement raises concerns among incumbent carriers that Verizon could gain a competitive edge in launching mobile services.
Although the situation is not identical to past international spectrum controversies—such as the UK auction that temporarily gave certain operators 4G exclusivity—Canadian incumbents believe that any advantage for Verizon would be significant enough to warrant aggressive tactics to stop it.
“They’re either going to have to fold their tents and live with this, or win the fight,” a source familiar with the matter said. “If they are going to win the fight they obviously need much more aggressive tactics.”
The Canadian government has so far maintained its rules and defended the policy designed to ensure four major telecom players operate in the country. Officials argue that keeping a competitive marketplace is in the public interest and that auction rules are intended to balance opportunities for new entrants with protections for established Canadian carriers.
In support of the incumbents’ position, a website called Fair For Canada has been launched, asserting that current policy loopholes “give giant American corporations an advantage in the wireless spectrum bidding process.” The site is part of a broader effort to highlight perceived imbalances in the auction framework ahead of key registration and auction dates.
The deadline for bidders to register for the spectrum auction is September 17, and the auction itself is scheduled to begin on January 14 next year.
Verizon has declined to comment on the matter.
What do you think about Verizon’s possible presence in Canada, and the campaign against it from the three major providers operating in the country?