The real way to offer Canadians more choice in wireless is to stop limiting foreign ownership of Canadian companies, a new report says.
Amid reports that U.S. telecom giant Verizon is due to enter the Canadian market, think-tank Fraser Institute said Monday that the current rules "handicap" Canada's big three telecoms -- Rogers, Bell and Telus -- and favour smaller and newer companies.
"The federal government is effectively subsidizing new entrants and promoting inefficient competition. This could make most consumers worse off, rather than better off," the institute's Steven Globerman said in a news release.
The 10% restriction on foreign ownership of Canadian companies should be eliminated, the report said, which would allow foreign investors to enter this country "on a larger scale" through mergers and acquisitions.
The "threat" of a takeover would give the existing telecom firms an incentive to provide better service and prices.