This side conversation (starting with telso) is an excellent description with a mostly-neutral yet extremely informative and correct description of the issue. Often enough people just spout knee-jerk reactions without looking at the reasons, and that doesn't make for a very good discussion. Thanks to both telso and green1 for providing a reasonable amount of sanity while actually discussing the issues.
To continue with that, I don't mind expanding foreign investments in Canada, and with Canadian companies, but it does have to be fair to all. That means giving startup companies the same chances as the big ones, and vice versa. It doesn't directly imply that all companies will then increase their foreign ownership, although most will likely increase it some. It does mean more room for competition and that's been part of the problem for all these years.
With the big three, they are essentially all very similar in coverage and plans and phones. This is a direct result of the competition between them, which not only causes the perception that their all in cahoots (whether real or perceived) to drive up prices, but also that if one of them offers something, the other two pretty much have to match it. It's created an expectation among the consumers, like with hardware subsidies, that cause the companies to earn their money in different ways.
People have mentioned (and will continue to mention) prices in the rest of the world as being much more affordable for service but it's important to note North America is a unique subset of the cellular world. I mentioned hardware subsidies, most other cellular companies don't offer them and consumers have to buy their phones at without discounts. That means all 17 year olds can't afford to get an iPhone/Blackberry/Android device but instead buy an affordable phone that allows them to text and call. Then they buy an iPod or MP3 player for extra media and use that separately. Only people who have a genuine need and ability to use/buy more expensive phones, like smartphones, do so. Those differences in cost structure certainly do affect the way the rest of your service is priced so the carriers can recoup those costs.
Also consider the size of our country. Somewhere like England or Japan would have much lower costs (with a much higher consumer base, using England as an example has $15M more people than Canada but would easily fit in one of our provinces by actual landmass, never mind Japan) to provide infrastructure. European countries like England also have their infrastructure spread across other countries which share the costs for roaming from, say, England to France between other companies, or divisions of the same carrier. For Canada, it costs money to build towers that reach all the way out to the corner or RR2 and Township Rd 4 and yet carriers still expected to have amazing speeds and clear quality for calls.
Now obviously there are still concerns over cost of services and quality, and all my rambling has gotten way off topic, so I'll end with this: for a startup to be competitive, they are limited provide coverage only to several major cities (as the cost to start a whole new network - even if it was shared across several companies - would be considerable) and keep rate plans low to attract consumers despite their other limitations, but it's important for that to still be done within the confines of the current laws to make it fair for everyone. For the major carriers to lend a considerably large hand to supporting someone like Public Mobile is actually a refreshing sign and this decision overall is a positive so that no one, including the government, plays too large a hand themselves in controlling businesses.