I imagine there has been no decent money in it for at least 10 years. The end user cost of phone and data service is probably not far above the production cost, which means these services are mere commodities, like gasoline. How many different gas companies do we need when they all sell the same thing for the same price and make the same tiny profit? When prices for data services change I'm sure it's because the production cost has changed, like gas, and not because of "gouging". Data and phone access services are so marginally profitable for the big companies that they don't even compete on customer service (again, like gas stations
:). The real profit is in those things that cost comparatively little to produce, like text messaging and voice mail (or
ring tones, according to Chris Rock :). This will probably be the final stage of consolidation of the data access service industry in Canada.
Yes, the infrastructure was built partially with public money through subsidies. Does that mean we, the people are forever and always entitled to do what we want with it? If that was the plan then the government should have built it. If you let a private company (i.e. not government run) build something, sorry, it's the company's property. I can get a tax break to put solar panels on my house. Do I owe you some of my electricity? No. You get a side benefit, which is (theoretically) cleaner air. We've reaped the benefit of the subsidy in that we have phone lines just about everywhere, which is something given the vast sparely populated areas of this country. (I haven't visited all of Canada so I don't know if this is literally true. There are probably people in northern communities still waiting for phone service.)
If I'm right that data and voice service is totally commoditized then the wholesale resellers aren't necessary. They either currently resell service at a price higher than it needs to be, or the wholesale price is artificially low to ensure are profitable. I'm not in favor of paying more than I need to, and I'm not in favor of things that distort prices. At this moment in 2009 I think this is a good decision.