Canada should be wary of Verizon, says Ralph Nader

A prominent American consumer-rights advocate says the Harper government should be wary about allowing Verizon into the Canadian wireless market.

In an open letter to Prime Minister Stephen Harper published by the Toronto Star, Ralph Nader says Verizon has made extensive use of U.S. tax subsidies even though the wireless communications giant was profitable at the same time.

Verizon has been exploring an entry into the federally regulated wireless market, currently dominated by three Canadian companies — Rogers, Bell and Telus.

The three carriers and the domestic industry’s main association have responded with an extensive publicity campaign calling for the Harper government to drop policies that they say give Verizon an unfair advantage over them.

Industry Minister James Moore has responded with a cross-country tour to explain why the government wants to increase competition in wireless services.

In the letter published Thursday in The Star’s opinion pages, Nader says that it would be a “bad idea” for Harper’s government to allow Verizon to operate in Canada with unique rights to acquire certain wireless spectrum.

Citing a report by the Center for Tax Justice and Good Jobs First, Nader says Verizon received $14 billion in U.S. federal and state income tax subsidies in the 2008-2012 period, even though it earned US$33.4 billion in pre-tax income.

“Question: Why would you allow one of our country’s most aggressive tax dodgers, a company with a track record of overtly ripping off our government, into your country,” Nader writes.

“What’s bad for the United States will be bad for Canada.”

Nader, who has been an unsuccessful independent candidate for the U.S. presidency in several campaigns, is a frequent commentator on issues that he considers of national or international public interest.

He first rose to prominence in the 1960s by campaigning for improved safety and performance standards in the U.S. auto industry.