Canada’s wireless sector downgraded by Moody’s

After 8 weeks of bidding and over $4.25 billion Canada’s wireless sector has been officially downgraded by Moody’s Investors Service “The expectation of increased pricing pressure has prompted Moody’s Investors Service to change its outlook on the Canadian wireless telecommunications sector from positive to stable”. This is actually good news for us consumers as the purpose of the auction was to create more competition and lower prices.

Industry Minister Jim Prentice said “It strikes me as the first independent market corroboration that the policy we pursued in the wireless spectrum auction to bring more choice to consumers is working. It seems clear from reading the report that the industry will remain stable and healthy but they do say there will be more competition and… downward pressure on prices as a result of that competition.”