Tuesday, July 9, 2013

What...My Verizon Phone Will Work on Both Sides of the Canada-U.S. Border? Verizon May Enter the Canadian Marketplace, Ending One of the Most Recognizable Canada-U.S. Digital Border Barriers

One of the most recognizable Canada-U.S. border barriers may soon fall.

So, are you one of the many cross-border travelers who detests either (a) having two phones or (b) adjusting to life without your Verizon cell phone?

Well, your stress may soon be over. (Oh, also, Canadians may see more options for watching NHL and NFL games.)

From Michael Geist TheStar.com:
Reports that U.S. telecom giant Verizon may be preparing to enter the Canadian market has sparked considerable speculation on the likely impact of a company with a market cap greater than Bell, Rogers, and Telus combined. While much of the discussion has centered on wireless pricing, the more significant development may be the shift toward a single North American communications market.

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The prospect of a Verizon entry into Canada would put a single communications market into overdrive. On the telecom side, Verizon could use its Canadian network to change the approach to roaming in North America altogether, since it would be uniquely positioned to offer a single U.S. and Canadian network. 
The company could move to eliminate roaming fees for U.S. and Canadian customers, while offering cost-competitive U.S. and Canadian roaming together for international providers establishing wholesale roaming agreements. Such a plan would obviously be attractive to the corporate sector as well as regular cross-border travellers, leading to the gradual elimination of roaming and long distance charges for calls throughout North America.

On the broadcasting side, Verizon holds exclusive U.S. rights to both the National Football League and the National Hockey League. Those rights are currently held by BCE in Canada, but a Verizon entry into Canada could shake things up. Verizon could presumably complicate the BCE rights by offering free access to NFL and NHL games to Canadian customers when they travel to the U.S. More interestingly, it could make a play for joint U.S.-Canada rights in the future, moving closer to an elimination of the geographic divide on content rights.

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With satellite radio and Internet video already close to a single market, regulatory reform to longstanding policies such as simultaneous substitution a possibility, and the geographic lines on telecom, content, and broadcast distribution all increasingly blurred, the big question may be whether Canada is closing in on a common North American communications market.

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