The cost of wireless services emerged as a political issue during the recent national election, with most parties taking turns promising measures to increase competitiveness and lower consumer costs. The Liberals based their platform on a commitment to reduce costs by 25 per cent over the next two years, a measure that some analysts suggested had already been met. I argued that the 25 per cent reduction target was measuring the wrong thing, noting that “the 25 per cent price decline may sound attractive, but if other countries experience declines of 30 per cent or 40 per cent, it means that Canadians would actually be paying even more relative to consumers elsewhere.”
Post Tagged with: "rewheel"
Wireless Worsens: Report Finds Canadian Wireless Pricing Now Less Competitive Compared to Other Developed Economies
Telecom and broadcast policy figured prominently in season one of the Law Bytes podcast. With Canada currently studying potential reforms and cultural issues emerging as a possible electoral issue, there are no shortage of issues worth of discussion. Given its role as a telecom and broadcast regulator, the CRTC was the subject of several episodes: Monica Auer of FRPC talked about her extensive access to information work on the CRTC, while former CRTC Commissioner Peter Menzies joined the podcast to help sort through Cancon funding, Internet regulation, and the role of the Commission.
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.