It was recently rumoured that Verizon, a major US broadband and telecommunications company, was interested in purchasing Wind Mobile as a way to gain entry and an immediate customer base in Canada. The rumoured price for Wind was $700 million. This rumour, if true, could have a major impact on the Canadian wireless market.
But it won’t.
To be fair, I guess there has already been an effect. All three Canadian majors’ share prices fell significantly when the rumour started making the rounds. I’m guessing that the reason for this is that shareholders are assuming that if Verizon, white-knight like, comes onto the scene, Canadians will be saved from those nasty, evil, price-gauging um, other Canadians (the three incumbents), prices will fall, service (both the coverage and customers varieties) will be stellar, and all will be well in the Great White North.
Here’s what people forget: Continue reading No Communications Revolution Here: Verizon in Canada Wouldn’t Really Change Anything