Responding to years of consumer frustration with the state of Canadian wireless pricing, Canada’s political parties have propelled the issue on to the election campaign agenda. The telecom giants will disagree, but study after study has found that Canadians pay more for wireless services than consumers in most other developed economies. But though just about everyone agrees we have a problem, my Globe and Mail op-ed notes there remains considerable debate over what to do about it.
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The Cultural Lobby Demands for Internet Taxes and Fees: The Forgotten Piece in Canada’s Lower Wireless and Internet Cost Puzzle
Over the past few weeks, both the National Post and Reuters have reported that the Liberals plan to include lower Internet and wireless costs as part of the fall election campaign. The reports indicate that reforms could include price caps or a firm commitment to facilitating the entry of new competitors in the form of mobile virtual network operators (MVNOs). I’ve posted regularly on Canada’s high wireless prices and efforts to address the issue (here, here, here, here, and here), which remain uncompetitive relative to many other countries (some of the reasons why are discussed in this LawBytes podcast episode with Antonios Drossos of Rewheel Research).
The LawBytes Podcast, Episode 21: Why Canada Has Some of the World’s Highest Wireless Data Prices
Canada has a well-earned reputation for some of the highest wireless prices in the world with numerous comparative studies finding that consumers pay relatively high prices for low amounts of data. There are obviously many factors behind pricing, but for many consumers the top line issue is how much does the wireless service cost and how much data do I get? Rewheel Research, a Finland based consultancy, has been at the forefront of pricing comparisons with extensive analysis of mobile data pricing in countries around the world. Its reports have often called out Canada, recently noting that prices are “a world apart” from more competitive markets. With Canadian telco giant Telus commissioning a study to challenge the Rewheel research, I’m joined this week on the Lawbytes podcast by Antonios Drossos, managing partner of the firm, who talked to me from Helsinki about their findings, what lies behind Canada’s wireless pricing, and the Telus-backed study.
Stepping In It: Why Navdeep Bains’ Failing Wireless Strategy is Not a Step in the Right Direction
The CRTC’s low-cost data-only plan decision released yesterday was as unsurprising as it was uninspired. Under CRTC Chair Ian Scott, the Commission has abandoned any pretense of consumer focus, reverting to the days when Canadians perceived the regulator as a guardian of industry interests. The low-cost data-only decision, which is ostensibly designed to address a serious gap in affordable wireless services, will do little to solve the problem. Indeed, even the CRTC admitted that “none of the revised plans on their own would necessarily be enough to fill the gap identified by the Commission with respect to lower-cost data-only plans.” Those revised plans, which CRTC largely supported, would be laughably uncompetitive in most developed countries (as one expert noted yesterday, $30 for 1 GB is not a low cost data plan).
Back to Bains: Why the CRTC Has Left Fixing Canada’s Wireless Woes to the Government
Few policy issues have proven as frustrating as the state of Canadian wireless pricing. For the better part of a decade, Conservative and Liberal governments have grappled with overwhelming evidence that Canadian consumers pay some of the highest prices for wireless services in the world. The solution has always seemed obvious: more competition. Yet despite repeated efforts to nudge the market and regulator toward a more competitive environment, the needle has barely moved.
My Globe and Mail op-ed notes that the latest failed effort was sparked by Innovation, Science and Economic Development Minister Navdeep Bains’ June 2017 request to the Canadian Radio-television and Telecommunications Commission to reconsider a decision on how regional and smaller wireless companies access wholesale roaming services from larger providers.
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