Verizon may be delaying plans to expand into Canada: reports

VANCOUVER (NEWS1130) – Verizon could be hanging up on its plans to come to Canada, at least in the short-term.

The wireless company might be cooling to the idea of buying Wind Mobile, Mobilicity, or both, according to new reports.

The Globe and Mail is reporting Verizon will put off trying to buy the companies while its executives decide whether to be involved in Canada’s wireless spectrum auction early in the new year.

When the auction is over, Verizon could go back to trying to buy the two struggling Canadian wireless companies.

Opposition to Verizon continues to grow in Canada

Telus, Bell and Rogers, which is the parent company of News1130, are now being joined in their fight against Verizon’s entry into in Canada by the Telecommunications Workers Union.

The Harper government supports the move and says increased competition could lower your cell phone bill. The union disagrees and says Verizon would likely want to operate in lucrative urban markets and ignore rural communities.

“Tempting voters with the lure of cheaper cellphone bills seems to be Mr. Harper’s plan, but it’s a mirage,” national union president Lee Riggs said in a release.

“There is no guarantee of lower prices. It is a complete manipulation of the Canadian public. Instead, Verizon will be able to easily swing into the lucrative urban markets, ignore rural communities and Canadian consumers and workers will be no further ahead.”

Telecom expert Richard Smith said unions whose members work for large corporations usually have interests that are closely aligned.

The federal government, on the other hand, thinks the issue will win it votes and it does hold the cards, said Smith, director at the Centre for Digital Media in Vancouver.

“It’s not so much a story about truth or fact or anything like that,” Smith said. “It’s a story about politics, sort of little ”p’ politics.”

“There’s a perception by voters that is this protecting the little guy and helping individuals and small business and the government thinks it’s a vote-getter. It’s sort of old style populism.”

But Smith said there is some evidence that a fourth national wireless player in Canada would lower prices, noting that was the case in France and United Kingdom and that it appears to be happening in the United States.