Good News For Mergers and Acquisitions Specialists, Bad News For Mobile Phone Users

Canada currently has a monopolistic telecom industry and for that matter cable television as well. Finally Parliament is listening to Canadians and taking steps to improve the situation. or are they? I'm not so sure yet. It is true that the current situation forces carriers to stick to their agreed upon regions, but that isn't what they are changing. The changes currently taking place will allow for a larger portion of foreign investment and will make the market more prone to mergers. Ask a former Adelphia customer if their service improved when they got scooped up by Comcast, they definitely weren't happy with the change. Previous to these changes all telecom companies must be majority owned by Canadian investors. 

That's where I get worried, because the government claims that "new telecoms will only be allowed to operate if the decision provides Canadians with a net gain and does not propose a national security risk." How much is a large enough net gain? Just because there will be a net gain doesn't mean there will be a long term gain, a net gain refers to capitol gain, which in short means that as long as we sell it for more than it was worth when we bought it good to go, so that's right Roger's can sellout to AT&T or Verizon, while Bell and Telus can become  Tell, or maybe Belus? 

There still is  hope though as the bill still needs one opposition party to sign on the Liberal's are open to the idea while the NDP are strongly against the move as they believe it's a risk to Canadian Culture.

Throw your comments up fools.