Canada’s telecom industry is best described as three companies in a trench coat. That’s why the country pays some of the highest prices in the world for broadband and wireless service. The country’s national anthem asserts that Canada is “true north, strong and free,” and yet one of the critical industries in this country of over 38 million people is an oligopoly. The most impressive trick this oligopoly has played on Canadians is naturalizing truly outrageous telecom costs. Despite years of promises from the Justin Trudeau government, there are no plans to change the status quo for the better, but two corporations are trying to change it for the worse.

In 2021, Shaw and Rogers, two of the country’s three behemoth telecom firms, announced plans to merge in a deal worth CAD$26 billion. Why? The companies cited emerging 5G technologies and the need for heavy capital investments to make the rollout work. Capacity, productivity, and efficiency would follow, of course. Jobs would be protected, naturally. Prices would remain competitive. Nothing to see here. Don’t bother trying to open the trench coat to take a peek at the bandits inside, counting your money and having a laugh.

In early May, Canada’s Competition Bureau surprised some by filing court applications to block the merger, citing a concern over “higher prices, poorer service quality and fewer choices.” The Competition Bureau doesn’t exactly have an accomplished record of fostering competition. But the country’s telecoms present such an egregious case of above-market returns that the bureau was forced to sit up and notice.