The Conservative Government. On the Side of Canadian Consumers.

November 30, 2007

Walk down any major street in Canada and you will likely see someone using a cellular phone. Cell Phones and other wireless devices have steadily progressed from being a novelty, to a luxury, to now becoming a fixture in more people’s day-to-day lives.

As more and more people rely on cell phones and other wireless devices to do their jobs or stay in touch with their families, it is important that this increasingly vital service remain accessible and affordable to as many Canadians as possible.

One of the biggest barriers to making these services more available to lower and middle income families is the relatively high cost of using a wireless device. This Government understands that the most effective way to lower costs is to increase competition in the wireless sector.

To date, the Canadian wireless market has been dominated by three major companies. While these companies serve many Canadians well, this Government believes that expanding the competition in this sector will reduce the prices that Canadians currently pay.

That is why, out of the 105 MHz of new spectrum being made available by the Harper Government, 40 MHz is being set aside exclusively for new entrants into the wireless sector.

Spectrum is used by wireless providers to offer services such as video, music and Internet access over wireless devices such as mobile phones, much the same way a radio station emits its signal over the airwaves. Without accessible spectrum, wireless services just will not work.

The other 65 MHz of new spectrum is being made available to all sector bidders through an open auction.

Smaller wireless companies will now have the opportunity to compete with the big boys and provide specialized services for more Canadians. As we have already seen in other countries, this kind of expanded competition means lower prices and improved service for us all.

I’m proud to be part of a Government that is fighting for greater competition in the market and further innovation in the industry. At the end of the day, this means lower prices, better service and more choice for average Canadians.