REGINA – SaskTel says competition from other wireless carriers may be driving prices too low.
The provincial crown corporation’s annual report shows more than $90-million in 2013 profits.
But a move to two-year cell phone contracts and investments in rural infrastructure are partially blamed for a weaker bottom line than expected.
SaskTel’s president and CEO, Ron Styles, says prices are up to 45 per cent higher in Alberta, Manitoba and Ontario, where there are only three major wireless providers.
“Is there some type of anti-competitive pricing going on in those jurisdictions? Or is the pricing being used in other jurisdictions a little on the high-side?” Styles questioned on Wednesday. “For the federal government, I think there’s a legitimate issue they have to look at.”
Saskatchewan, Manitoba, Quebec and Atlantic Canada all have a fourth major provider. The government has committed to bringing a fourth carrier to the other provinces.
Styles says there are no planned changes to SaskTel’s pricing over the next six months.
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