That's not true, it may have been true at one point in time like 20 years ago. Even Bell Canada says you can use your Canadian phone in most countries in the world:
https://support.bell.ca/mobility/network_coverage/where_can_...
(obviously not super authoritative but they wouldn't tell people their phone worked in a country if it did not.)
It's possible there are some obscure features that may not work properly but for general usage as far as phone calls, texting, data usage, I've never heard of anyone having any issues with their Canadian phone internationally, besides maybe the cost of roaming.If you have a source from recent times that says this, I'd like to see it.
As far as minimal competition goes, there is not an infinite amount of cellphone carriers in the US either that will give you a phone on credit, especially if you have bad credit. I'm sure there are existing ways you can scam phones out of carriers too if you are fine with being banned from the carrier and/or torching your credit.