TPRC 2024: The 52nd Research Conference on Communications, Information and Inter

Link to paper

Abstract:
Unlike most developed countries, Canada's mobile market does not have any significant presence of mobile virtual network operators (MVNOs). Instead, over the last 20 years, the price conscious market segment has been predominantly served by six flanker brands operated by Canada's largest incumbent mobile providers. Facilitated by a series of acquisitions, Canada's flanker brand regime has not only increased the incumbents’ market power, but it has also failed to deliver an affordable, diverse, and high-quality set of mobile services to all Canadians. Recognizing this competitive failure, the Canadian Radio-Television and Telecommunications Commission (CRTC) instituted a limited MVNO access scheme which allows spectrum-holding regional providers already operating in Canada to access the network of incumbent providers on an interim basis. This paper investigates the Canadian MVNO policy approach in comparison to the US market, generating insights relevant to prospective Canadian MVNOs, the CRTC and other key industry stakeholders. Drawing on primary survey data, the American Consumer Satisfaction Index (ACSI) report on MVNOs, and a mobile tariff comparison, the paper concludes that Canada’s flanker brand market is less differentiated than the American MVNO market to the detriment of consumer satisfaction. Addressing the lack of differentiation in the Canadian marketplace may present an opportunity for prospective facilities-based MVNOs.