Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada Competition Bureau replies to telecommunications regulator on wireless roaming rates, (Feb 12, 2014)

On January 29, 2014, the Canada Competition Bureau made a submission to the Canadian Radio-television and Telecommunications Commission (CRTC) in response to a request for comments following the CRTC’s consultation on the mobile wireless roaming rates charged by Canada’s largest wireless companies to new entrants in Canada. On February 10, the Competition Commissioner announced the filing of a reply submission, finding that there was no basis to change or modify any of its earlier statements or recommendations.

The Competition Bureau maintains its assessment that the following factors are present in Canadian mobile wireless markets: (a) incumbent mobile wireless service providers (“incumbents”) have retail market power; (b)incumbents have an incentive to protect their retail market power by imposing supra-competitive terms in roaming agreements with entrant service providers (“entrants”); and (c) entrants currently face significant disadvantages as a result of the supra-competitive terms in their roaming agreements with incumbents.

These factors render the incumbents’ discrimination against entrants in respect of roaming rates unjust. Therefore, it remains both necessary and appropriate for the CRTC to intervene and remove the incentive for incumbents to use roaming agreements as a strategic tool to eliminate or reduce the competitive pressure that would otherwise be associated with entry into and expansion in Canadian mobile wireless markets.

The Reply Submission identifies evidence filed by entrants that supports the Bureau’s assessment, addresses claims made by incumbent service providers that Canadian mobile wireless markets are competitive, and provides additional perspective on appropriate remedies.

As noted in the Bureau Submission, effectively encouraging the competitive provision of roaming access to entrants will enable Canadians to enjoy the benefits of greater competitive forces in mobile wireless markets, including lower prices, higher quality service and greater innovation.

News: Antitrust