The CRTC’s low-cost data-only plan decision released yesterday was as unsurprising as it was uninspired. Under CRTC Chair Ian Scott, the Commission has abandoned any pretense of consumer focus, reverting to the days when Canadians perceived the regulator as a guardian of industry interests. The low-cost data-only decision, which is ostensibly designed to address a serious gap in affordable wireless services, will do little to solve the problem. Indeed, even the CRTC admitted that “none of the revised plans on their own would necessarily be enough to fill the gap identified by the Commission with respect to lower-cost data-only plans.” Those revised plans, which CRTC largely supported, would be laughably uncompetitive in most developed countries (as one expert noted yesterday, $30 for 1 GB is not a low cost data plan).
Post Tagged with: "Wireless"
Telus vs. Telus: Who Do You Believe on Wireless Competition in Canada?
The state of Canadian wireless competition has been a much-discussed issue in recent years with numerous reports providing evidence that Canadians pay some of the highest rates in the world. In fact, even the Competition Bureau has concluded that “market power concerns persist in the Canadian wireless industry” and “when market power is exercised, prices are higher, and wireless penetration is lower, than in a market that is competitive.” In response to the Competition Bureau’s report, Telus argued that the CRTC should “reject the Bureau’s submission in its entirety.”
The State of Canadian Wireless in One Chart: No One Has Carriers That Generate More Revenue With Less Usage
Tefficient has released a new report on global wireless market that makes it clear that Canada is a global outlier (or leader if you are a telecom executive). Simply put, no one has carriers that generate more revenue with less usage per SIM than Canada.
The Consequences of High Wireless Costs: OECD Data Confirms Canadians Lag Behind in Data Usage
The OECD released the latest data on broadband usage this week highlighting yet again that the high costs of Canadian wireless services have real world consequences when it comes to consumer data usage. Earlier this month, Canadian Wireless Telecommunications Association President Robert Ghiz told an industry conference:
Consumption of mobile data – through all kinds of apps and every flavour of streaming content – continues to grow at an astounding rate in Canada. Mobile data traffic in our country increased by 41% between 2015 and 2016 alone.
Yet the OECD comparative data tells a far different story. First, OECD data indicates that Canada is at the low end of countries when measured by mobile broadband subscriptions per 100 inhabitants, ranking well below the OECD average and ahead of only six other OECD countries.
CRTC Rebuked: Government Signals Frustration With the Commission Prioritizing Carriers Over Consumers
Telecom issues were in the spotlight yesterday with the government ordering the CRTC to “examine claims of aggressive or misleading sales practices concerning telecommunications services, the prevalence and impact on consumers, as well as potential solutions.” The Order-in-Council, which was accompanied by a request to the Competition Bureau to provide assistance, follows CBC reports on misleading sales tactics from companies such as Bell and Rogers and the CRTC’s rejection of a request to conduct an inquiry into the matter. The announcement from Innovation, Science and Economic Development Minister Navdeep Bains is a welcome development, signalling the government’s frustration with a CRTC under new chair Ian Scott that has seemingly abandoned consumer interests.
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