Verizon coming to Canada is a good thing: Moody’s
Posted August 22, 2013 3:24 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Even if Verizon does come to Canada it would be good news for you — the consumer, that’s according to new analysis.
Moody’s Investors Services say it would take four to five years to actually develop a profitable company, giving competitors a chance to respond. It adds the three wireless giants — TELUS, Bell and Rogers, the latter the parent company of News1130, have already built solid followings.
Telecom analyst Iain Grant says should Verizon head north, it would only keep prices in the market stable. “Well, from our perspective Verizon is not a discount carrier so I think we don’t expect Verizon to come in and start slashing prices.”
He thinks Verizon would not target regular customers, instead the business crowd. “If they come I think it’s a very good thing. It will certainly keep prices from going up which is of some worry to us. But we should be clear, they haven’t actually said they’re coming, they’ve only said they’re looking at it.”
Moody’s also finds Verizon would need to invest $3 billion just to get started here and much of that would be spent on building its network. The report also says it would likely take at least three years for Verizon’s network coverage and capabilities to reach critical mass.
It also says the acquisition of Wind Mobile and Mobilicity “would not be an instant win,” because the three smaller carriers have less than 10 per cent of the market and their network infrastructure is limited.
The investment service says “any newcomer would face high hurdles” and adds the three largest wireless companies “have built out some of the most sophisticated networks in the world and would prove formidable competitors.”
