The effect of national roaming in Canada

Plum provided advice to an investor in the Canadian telecoms market regarding the impact of new national roaming rules in the mobile market.

The CRTC announced that it would regulate national roaming in Canada more strictly, a move which would help the smaller mobile operators which do not hold national spectrum.  Plum advised the client on the likely impacts of the new regulation on the market.

The CRTC announced it would use a forward-looking LRIC methodology to set national roaming prices and Plum estimated the likely range of national roaming costs from suitable benchmark countries.  Plum focussed on assessing the likely roaming prices for voice and data services which, on a forward-looking basis, will generate the bulk of revenues for mobile operators.

Plum then analysed the effect of the estimated reduction in national roaming prices on both the larger and smaller mobile operators.