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Wednesday, July 23, 2008

I can finally agree with something Corcoran said

In an op-ed piece here in the National Post this morning Terence Corcoran disagrees with the fundamentals of the recent spectrum auction. In this country the airwaves are regulated and in a fit of government activism the ruling party, as would the opposition, decided to auction off the place that broadband lives - the wireless frequency. Canadians have been paying through the nose for the use of cell phones due to an oligarchy of three non-competitive phone companies. These companies purchased 60% of the airwaves offered and 40% was set aside for new comers. This was done in the naive belief that competition would ensue thereby bringing prices down.

I agree with Corcoran and disagree with the premise: how can new companies burdened with so much debt, used to buy spectrum, compete with the oligarchy. The real result will be no change and the big three will buy the startup's airspace and continue to hose us with high cell phone charges. Buy shares in Rogers and Shaw!

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