Post Tagged with: "Wireless"

Our Beloved Phone Company by Dennis S Hurd (CC BY-NC-ND 2.0) https://flic.kr/p/8v9Mm9

CRTC Report Confirms Yet Again: Canadian Wireless Prices Among Most Expensive in G7

The Canadian Radio-television and Telecommunications Commission yesterday released the latest Wall Communications Report comparing prices for wireline, wireless, and Internet services in Canada and with foreign countries. While some initial reports focused on the increased wireless pricing for light wireless users (150 minutes per month with no data or texting) that was attributed to the shift from three-year contracts to two-year contracts, the bigger story is that Canadian wireless pricing is ranked among the three most expensive countries in the G7 in every tier.

The report measures four different baskets of users and for every usage Canada is one of the three most expensive countries in the survey (other countries include the US, UK, France, Australia, Japan, Germany, and Italy).

July 15, 2014 — 10 comments — News

WIND SIM by mroach (CC BY-SA 2.0) https://flic.kr/p/8w7m7Y

Why the Latest Canadian Wireless Policy Move is More Shakeup Than Shakedown

Industry Minister James Moore announced new spectrum policy measures yesterday designed to help foster the creation of a viable fourth national wireless competitor. The policy features an accelerated timeline for another spectrum auction (AWS-3) and a significant set-aside of spectrum for new entrants such as Wind Mobile. When combined with the government’s policies on domestic roaming, tower sharing, and foreign investment, it is clear that it intends to continue to use the policy levers at its disposal to encourage greater wireless competition. For this, the government deserves kudos, as its emphasis on fostering greater competition is the right thing to do.

While the announcement generated criticism from the usual suspects who want Canadians to believe that the market is already competitive (or incredibly might somehow become more competitive if it shrunk down further to two competitors), it is worth revisiting the Competition Bureau’s analysis of the wireless market. Earlier this year, Canada’s independent agency responsible for competition in the marketplace concluded that the Big 3 enjoy “market power”, which it defines as “the ability of a firm or firms to profitably maintain prices above competitive levels (or similarly restrict non-price dimensions of competition) for a significant period of time.” In fact, the Bureau commissioned its own study of the market on domestic roaming and found that a more competitive market would deliver approximately $1 billion in benefits to the Canadian economy.

As if on cue, the Big 3’s most recent quarterly investor calls confirmed that they face little Canadian pricing pressure.

July 8, 2014 — 4 comments — News

Competition Bureau Recommends New Regulations To Address Wireless Competition Concerns

The Canadian Competition Bureau has filed a submission to the CRTC’s wholesale mobile wireless services review in which it reaffirmed its view that the Canadian wireless market is uncompetitive and would benefit from regulation. The Bureau finds that a more competitive market would deliver $1 billion annually in benefits to the Canadian economy:

incumbents appear to have the ability and incentive to profitably raise the rates they charge their retail competitors for wholesale roaming services, and potentially other wholesale arrangements, above competitive levels. The incumbents’ wholesale customers may be passing these price increases on to retail customers. These retail price increases may be harming competition in retail mobile wireless services markets in Canada. In particular, more competitive markets could deliver approximately $1 billion in benefits to the Canadian economy.

May 16, 2014 — 12 comments — News

Why Are Canadian Wireless Carriers Increasing Prices? Because They Can

Yesterday, I was contacted by a Toronto radio station wanting to discuss wireless pricing increases that have occurred over the past few months (including increases over the weekend at both Rogers and Bell). Their key question was what lay behind the increased prices? While some might point to reduced roaming revenues or costs associated with the spectrum auction, I believe the answer is far simpler.

The carriers increased prices because they can.

Indeed, this is precisely what the Competition Bureau of Canada concluded could and would happen in its analysis of the wireless environment in Canada. In its January 29, 2014 submission to the CRTC, it stated:

March 18, 2014 — 21 comments — News

It Only Takes One: Will the Spectrum Auction Lead to a New National Wireless Carrier?

The old adage in real estate that it only takes one buyer held true in the Canadian 700 MHz spectrum auction. After potential new entrants such as Verizon declined to enter the Canadian market and Wind Mobile dropped out of the bidding at the last minute, many declared the spectrum auction a failure. Industry Minister James Moore and the government got the last laugh, however, with the auction generating $5.3 billion and the emergence of potential new national wireless player – Videotron (parent company is Quebecor). There had been some speculation that Quebecor might make a move outside of Quebec (Nowak, Corcoran) and seeing the company scoop up prime spectrum in Ontario, Alberta, and British Columbia offers renewed hope for a more competitive environment.

February 20, 2014 — 5 comments — News