The decision a year ago requires the big companies that own wireless towers to let mobile virtual network operators (MVNOs) use those towers at wholesale rates—but only if the MVNOs already own shares of wireless spectrum. The federal cabinet thinks overturning that requirement would “undermine the work of smaller regional providers that have already invested substantially to increase competition,” Innovation Minister François-Philippe Champagne said in a statement. (The Logic)
Talking point: Would-be MVNO Dotmobile led the effort to reverse the CRTC ruling. It fileda petition to the government that said the spectrum requirement creates a barrier to entry so high that Canada probably won’t develop a real market of companies providing competitive cellphone services by buying access to the established giants’ towers at wholesale prices. (Dotmobile even argued the CRTC didn’t really understand what an MVNO is.) Mobile-phone plans are still too expensive, Champagne said, and “we’ll watch carefully to ensure these rules for MVNO access will lead to more choice and lower prices for Canadians.”