Post Tagged with: "OECD"

Some SIM cards by mroach (CC BY-SA 2.0)

Competition Matters: New Study Supports Government Policy Focused on Fourth Wireless Player

Last year’s explosive battle over the potential entry of wireless giant Verizon into the Canadian market may be a distant memory, but the debate over the state of wireless competition remains very much alive. Industry Minister James Moore has pointed to a modest decline in consumer pricing and complaints as evidence that government policies aimed at fostering a more competitive market are working.

The big three wireless carriers remain adamant that the Canadian market is competitive and that while pricing may be high relative to some other countries, that is a function of the quality of their networks. In other words, you get what you pay for.

There is seemingly no major international entrant on the horizon, but the Canadian Radio-television and Telecommunications Commission is currently grappling with an assortment of policy measures aimed at improving the competitiveness of new entrants and facilitating the development of a more robust market for virtual operators who could enhance consumer choice. Moreover, the government is planning another spectrum auction early next year that would benefit new entrants.

My weekly technology law column (Toronto Star version, homepage version) notes that at the heart of the debate is whether creating a fourth national carrier is a legitimate policy goal or a mirage that will do little to decrease pricing or create market innovation. The major carriers argue that the Canadian market is too small to support a fourth national carrier and that competitiveness is not directly correlated to the number of national operators.

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November 12, 2014 3 comments Columns
IMG 2614 by Rubin Starset (CC BY-NC-SA 2.0)

OECD Releases New Broadband Data: Canada Ranks in Bottom Third on Mobile Broadband Subscriptions

The OECD released its latest Internet broadband data yesterday, covering the 34 OECD member states. The update emphasized wireless broadband access, comparing subscription rates across the OECD (many other aspects of the OECD data collection, including pricing and speeds, were not updated). Wireless broadband has emerged in recent years as a critical method of Internet connectivity with consumers and businesses relying on mobile broadband, yet the OECD data has Canada ranking poorly for wireless broadband subscriptions when compared to the rest of the developed economy world (coverage from the Wire Report (sub req)). The OECD release comes one week after a CRTC sponsored report found that Canadian wireless pricing is among the most expensive in the G7 in every tier of usage.

Seven countries, including Finland, Australia, Japan, Sweden, Denmark, Korea, and the U.S., have at least one subscription for every inhabitant. In Canada, the number drops to 53.3 subscriptions for every 100 inhabitants. That places Canada 24th out of 34 OECD countries.

OECD, 2014, OECD, 2014,

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July 23, 2014 5 comments News

Telus Flip-Flopping Continues With Latest Lawsuit as Company Changes Its Tune Yet Again

Telus’ decision to file a lawsuit against the federal government over its spectrum transfer rules continues a trend of flip-flopping on policy issues at the company. What does Telus think of the government’s wireless policies?  Apparently it depends when you ask. For example, in March 2012, Telus said the following about the spectrum auction approach:

TELUS believes this is a thoughtful and balanced decision that meets the Government’s objectives of promoting consumer choice, supporting sustainable competition through investment in technology and further expanding broadband services in rural markets.

Sixteen months (and the possibility of a Verizon entry) later, CEO Darren Entwistle now says:

There’s going to be a bloodbath, because people are not going to give up on getting that block. So it’s going to be prohibitively expensive and suck a lot of money out of the industry – money that won’t go to infrastructure and technology, money that won’t go into rural coverage or support lower prices.

There is similar change of tune with the latest lawsuit.

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July 31, 2013 11 comments News

OECD Report: Canada Still Among Ten Most Expensive Countries for Broadband Internet Services

Yesterday I blogged twice about the 2013 OECD Communications Outlook, a major international report issued once every two years with detailed comparative data on telecommunications throughout the developed economy world. My first post noted that Canada’s wireless performance ranks poorly, as it is among the most ten most expensive countries within the OECD in virtually every category and among the three most expensive countries for several standard data only plans. After Telus responded to my post, I followed up with a second post that examined some of the Telus-specific data used by the OECD. Those measures ranked Canada as the 2nd most expensive of 7 countries for 1 GB of wireless data (at speeds Telus customers are likely to receive) and the second most expensive of 19 countries for 500 MB of wireless data for tablets (again at speeds Telus customers are likely to receive).

The OECD report also includes comparative data on broadband services with Canada ranked among  the ten most expensive countries in virtually every tier (note that the OECD measures the cost by purchasing power parity so that differences in income are factored into the analysis).  For example, for plans offering 54 GB of data per month at speeds of 45 Mbit/second, Canada ranks as the 9th most expensive in the OECD. Move down a notch to 42 GB of data per month at 30 Mbit/second and Canada is the 8th most expensive country in the OECD. At slower speeds, Canada remains expensive – 33 GB of data per month at 15 Mbit/second is the 11th most expensive and for 18 GB of data per month at 2.5 Mbit/second it is the 9th most expensive.

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July 16, 2013 18 comments News

Telus: Canada Should Be the Most Expensive Wireless Country in the OECD

Telus has responded to my post on the 2013 OECD Communications Outlook, which ranked Canada among the most expensive countries in the OECD for wireless services in virtually every category, with its own post claiming that Canadians should be celebrating our relatively high prices. The post notes the investment that Telus and other companies have made in Canada (Peter Nowak explains the reason behind much of that investment) and argues that:

When you consider our enormous investment, challenging geography, sparse population and outstanding networks Canada really SHOULD be the most expensive country for wireless service in the OECD, but we’re not. That’s a great success story we should be celebrating.

It is a testament to how out-of-touch Canada’s incumbent wireless providers have become that they think Canadians should be celebrating the fact that we are not the single most expensive wireless country in the developed economy world.  Telus says that scratching below the surface of the OECD report will lead people to conclude that Canadians pay about the same as other developed countries. Yet in its own chart, Canada ranks among the more expensive countries within the G7 in every category but one.

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July 15, 2013 37 comments News