June 2012 Archives

June 2012 Archives

Stop the Oligopoly!

By: Elean Olguin

Rogers.pngHow many times have you faced the dilemma of not knowing which cellphone provider to choose from? I know it is a tedious process because when it comes to cell phone providers in Montreal, we as consumers are limited to very narrow options to choose from: Rogers, Bell, Telus, Solo, Videotron, Public Mobile, Koodo, Chatr, etc. At this point I am sure that I have already raised a lot of eyebrows since I just listed eight providers. However, the truth is that Fido and Chatr belong to Rogers, Solo and Virgin Mobile to Bell, Koodo to Telus, and Public Mobile is partnered with both Bell and Telus. As the Seabord Group- a telecommunications and technology consulting firm- has stated "The number of players doesn't mean anything; it is the type of players with their particular interests which dictates the shape and the future of the mobile market" (TechVibes). Based on personal experience and the constant emergence of customer complains on the Internet, I believe it is time for the Canadian government to decrease the current cap structure even further to allow other companies to enter the market in order to improve wireless services and offer better prices to the Canadian public.

Throughout the years and thanks to technological advancements, companies like the big three (Rogers, Bell and Telus) have benefited from offering the public overpriced plans and extra monthly fees on commodities; unlike American companies like Sprint and T-Mobile, for example, which offer affordable unlimited plans. Despite the recent change in policies to allow more foreign investment into the Canadian Market, Anthony Lacavera, chairman and CEO of Wind Mobile -a recent start-up company- said "he was pleased by the decision to lift the foreign ownership limits, but said that the cap system handicaps the smaller companies because there isn't enough of the valuable 700 MHz spectrum available." (Thestar.com).


By: Selim T.Screen shot 2021-06-05 at 11.02.22 PM.png
Image source: Flickr

American companies such as Wal-Mart, Sears, and Best Buy within the past twenty years have entered the Canadian market, an attractive one to US companies due to the similarities in the market structures. Recently, Target, a US retail giant, announced that the company will enter the Canadian market in early 2013. Target acquired Zellers six months ago, accelerating the American retailers speed to dig into the Canadian market. One of the major challenges the company will face is the bias that Canadian customers have for Canadian products. Target can overcome these biases by establishing a strong customer loyalty, engaging the local producers within their chain to promote Canadian products, and providing organic product lines.


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