The sad state of Canadian wireless pricing is old news for consumers and the government, but a new report graphically demonstrates how Canadians face some of the least competitive pricing in the developed world. The Rewheel study measured pricing in EU and OECD markets by examining how many gigabytes of 4G wireless data consumers get for the equivalent of 30 euros. This chart from Rewheel says it all:
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Canada’s Billion Dollar Wireless Cash Grab: CRTC Data Shows Overage Fees Now Exceed Roaming Revenues
The CRTC’s release of the 2017 Communications Monitoring Report ushered in the usual conflicting reports on the state of communications services in Canada. I found the most compelling take to be Tefficient’s data charts that show Canadian wireless companies generating revenue per GB that is the highest in the developed economy world (literally off-the-chart) alongside mobile data usage growth rates that are among the slowest on record. The Canadian Wireless Telecommunications Association described the growth rate as “impressive”, but when just about everyone has faster growth rates, it is readily apparent that high wireless costs in Canada have a negative impact on usage.
Digging further into the data, the CRTC provides insight into an oft-overlooked source of revenue for the carriers: overage charges, which represent an ongoing source of frustration for many consumers. While many carriers have unlimited broadband plans, unlimited wireless plans are rare, leaving subscribers to carefully monitor their data usage. Based on the CRTC data, however, many find themselves exceeding their monthly cap fairly regularly as data overage charges constitute 6 per cent of total retail wireless revenues:
Government Rejects Call for an Internet Tax: “Conflicts With Principle of Affordable Access”
The federal government yesterday released its response to the Standing Committee on Canadian Heritage report on local media released last June. The most controversial recommendation in that report – one swiftly rejected by Prime Minister Trudeau – was a call for a new Internet tax to help fund Canadian media and the creation of Cancon. As I wrote at the time, the proposal is a terrible idea that runs counter to important policy objectives of fostering affordable network access for all Canadians.
The government response, signed by Ministers Joly, Bains, and Morneau, rightly notes that “access to affordable broadband Internet, particularly in rural and remote regions, is essential to the participation of the Canadians in the digital economy.” In light of this policy priority, the government firmly rejects the Internet tax proposal, grounding its decision in the principle of affordable access:
European Commission Backed Study Confirms Canada Among the Most Expensive for Broadband Internet Access
The European Commission has released a new study it commissioned on broadband pricing in Europe and several other leading countries. It confirms yet again what Canadian consumers have long suspected: Canada is among the most expensive countries in the developed economy world for broadband Internet services. The study, which provides data on the 2016 retail pricing for consumers throughout the EU, Canada, the U.S., Japan, South Korea, Norway, and Iceland, found Canadians consistently face some of the most expensive pricing regardless of speed or whether the packages include local telephone and television services. The survey was conducted over a two-week period in October 2016 and included retail pricing for five major Canadian ISPs: Bell, Shaw, Rogers, Videotron, and Telus. The data includes procedures to account for one-off fees and other discounts.
Why the Government Was Right to Swiftly Ditch the Ill-Advised Internet Tax
Politicians are sometimes said to struggle with “developing policy at Internet speed,” but Thursday the government gave new meaning to the words. My Globe and Mail op-ed notes that as Liberal MPs were presenting the much-anticipated Standing Committee on Canadian Heritage report on media that included a recommendation for a 5-per-cent tax on broadband access, Prime Minister Justin Trudeau and Canadian Heritage Minister Mélanie Joly were assuring Canadians that the government had no intention of accepting the committee’s proposal.
Ms. Joly left the door open to an Internet tax last year through her national consultation on Canadian content in a digital world, steadfastly refusing to take a firm position on the issue. The committee report effectively ended the debate as the immediate criticism of the ill-advised policy measure means that an Internet tax has about as much future as a dial-up modem.
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