Verizon Communications is now looking to become a player in the cellular telephone business in Canada. According to a report from the Globe and Mail, this would fulfill the hopes of the Canadian government to have a fourth major wireless firm in the market.

This can start with the takeover of a small market player in Canada, one of which is Wind Mobile. The next step is the participation in a new wireless spectrum auction according to a newspaper report that cited two anonymous industry resources that were familiar with the transaction.

The new independent players have helped lower the overall prices of wireless services in Canada. These firms include Wind, MobilCity and Public Mobile but all of them still have to turn a profit since they started operating in the country.

The struggling revenues of these new wireless service providers have blunted the efforts of the Canadian government to engage a fourth major wireless company in order to compete with Telus Corp, BCE Inc's Bell unit and Rogers Communications.

According to the news report, aside from Verizon, other firms that can invest in Canada include AT&T Corp, Vodafone Group Plc and Telenor ASA.