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: "unlimited"
Wireless Worsens: Report Finds Canadian Wireless Pricing Now Less Competitive Compared to Other Developed Economies
Message Received: Why Unlimited Wireless Plans Show Government’s Emphasis on New Competition is Being Heard
Long available in other countries, “unlimited” wireless plans arrived among the big three carriers in Canada yesterday with Rogers launching new unlimited options that offer 10 GB of data at full speed and unlimited additional data at a far slower speeds of 256Kbps. While some criticize the throttled overage speeds or the inferiority of the Canadian plans when compared to what is available in the U.S., this is a good step for consumers that ration their data each month in fear of incurring significant overage charges. Indeed, the comparative data shows Canadian consumers use less data than consumers elsewhere, particularly subscribers with Rogers, Bell, and Telus. Moreover, with carriers generating more than $1 billion per year in overage fees, the change is not trivial with some analysts characterizing the move as a negative for Canada’s wireless industry.