The CEO of Verizon Communications Lowell McAdam has said that the operator is not planning to enter the Canadian wireless market any time soon.
Speaking in the wake of its US$130bn buyout of Verizon Wireless, McAdam said there was no connection between…
The CEO of Verizon Communications Lowell McAdam has said that the operator is not planning to enter the Canadian wireless market any time soon.
Speaking in the wake of its US$130bn buyout of Verizon Wireless, McAdam said there was no connection between the landmark deal and its decision not to go into Canada, which it had been scoping out earlier this year.
McAdam told Bloomberg in an interview that his company is “not going to Canada” because this does not offer sufficient value creation for shareholders.
The disclosure will come as a relief to Canada’s three incumbent operators – Bell Canada, Rogers Communications and Telus – which have engaged in a lobbying campaign since Verizon’s interest in the country was revealed.
Had the US giant chosen to enter, it may well have left one of the three dominant players without a licence in the upcoming auction for “beachfront” 700 MHz spectrum.
The Canadian government is likely to be less pleased, having been banging the drum for more competition in the wireless market ahead of January’s auction. One of the Stephen Harper-led government’s policies is to have four wireless operators in every region across the country.
The deadline for potential auction participants to submit 5% deposits to compete in the 700 MHz auction is 17 September. The government has reiterated today that the auction is set to go ahead as planned.
