Segacs's World I Know

Posts Tagged ‘rogers’

You can tell it’s an election year when the government actually bothers to do something useful. Harper, seeing the writing on the wall after massive petitions and public outcry, has issued an ultimatum to the CRTC about its recent usage-based internet billing ruling: back down, or we’ll overrule you:

Last week, the CRTC ruled that usage-based billing, the model used by large Internet providers such as Bell Canada and Rogers Communications to charge customers extra for exceeding monthly download limits, will apply to smaller providers, too. Until now, those smaller providers could offer unlimited Internet packages; the ruling means they no longer can.

There have been hints already from Industry Minister Tony Clement that the federal government may quash the controversial ruling, and the prime minister has asked for a review of it. But the government’s blunt ultimatum to the CRTC suggests any review would be pro forma.

This was a terrible decision by the CRTC – yet another in a long line of them that have backed Big Telecom’s demands over the rights of the consumer and the marketplace. Usage-based billing would have stifled innovation and choked off advancement, it’s true. But let’s not forget that, thanks to the CRTC, Canadians pay the most in the world for cell phone plans, pay for incoming text messages (despite another Harper campaign promise… anyone remember that?), and enjoy tons of lovely censorship of TV and radio. All because the CRTC is supposed to protect the interests of all Canadians, but only protects the interests of three: Bell, Telus and Rogers.

As for the government, let’s not forget that this is one decision, taken under overwhelming public pressure, in the face of hundreds of other decisions that have gone against consumer interests. The real solution isn’t to review this one decision; the real solution is to review the CRTC’s overall mandate and existence.

Coming on the heels of the news-that-will-shock-nobody that Canadians pay the highest cell phone bills in the world, someone’s taking notice… and it ain’t the CRTC:

Unlimited wireless data plans are almost unknown in Canada, and that’s a strategy telecom carriers elsewhere are starting to emulate as they look for ways to cope with booming demand and capacity limits.

BCE’s Bell Canada, Rogers Communications and Telus Corp  – Canada’s “Big Three” telecoms – command profit margins that are the envy of the industry. They have an historical advantage over their peers because Canadians accept that they have to pay for as much capacity as they use.

Or, maybe it’s because the CRTC is more interested in protecting those profit margins that are the “envy of the industry” than in protecting consumers, in our price-fixed, oligopolistic market.

And it’s got consequences. Less affordability translates to lower smartphone penetration, which means companies have less incentive to stay ahead of the curve on wireless development, which means Canada will – as usual – continue to lag behind the rest of the world when it comes to innovation. That’s bad news for everyone… unless, of course, you happen to be an executive at Bell, Rogers or Telus.

We’ve lagged behind the rest of the world long enough. We’re supposed to “accept” things that are unheard-of in the rest of the world, like punative three-year contracts with ridiculous cancellation fees, “system access fees” of $8.95 a month, being charged for incoming voice minutes and even text messages, and ridiculously high data plan pricing. Us Canadians don’t “accept” that we have to pay as much for data as we do; we’re forced into it because we have no choice. That is, no choice other than opting out of owning a smartphone entirely, which is the choice I’ve made.

Instead of admiring our market, the world should be mocking it. And instead of protecting the anachronistic, anti-competitive marketplace, the government should scrap the CRTC and throw the doors open to real competition. Until then, consumers and businesses will be the big losers.

Responding to massive public pressure, including an online petition that garnered over 57,000 signatures, Rogers has announced a $30 data plan for the iPhone.

It’s not the unlimited flat plan that people had hoped for, but at 6 gigabytes, it’s pretty close. And so far, it’s only available to people who purchase their iPhone before August 31st. But it’s a whole lot better than the previously-announced plans, which start at $60 and range to $115 per month – gouge-worthy levels.

The problem is, Rogers holds all the cards. Once people rush out to take advantage of this pricing and sign three-year contracts, they’re locked in. And Rogers’ regular rates for data plans are outrageously high.

Meanwhile, Bell and Telus are coming under fire for their decisions to charge for incoming text messages… by the government:

Industry Minister Jim Prentice publicly demanded an explanation from two of the country’s telecommunications giants yesterday about their “ill-thought-out” decision to start charging cellphone customers for incoming text messages.

Here’s a thought: Rather than summoning them in front of a government committee to try to justify their pricing, as these telecom giants are accustomed to doing from their monopoly days, why not open up the market to real competition instead of our current oligopoly-style imitation? That would take care of their cash-grab collusion pricing in a hurry.

Here’s yet another reason:

For 25 months now, cell-phone users in the United States have been able to change service providers and take their numbers with them. This spares you the laborious process of notifying everyone who has your number that you have a new one now.

[ . . . ]

This week the CRTC has announced, oracularly, that Bell Mobility Inc., Rogers Wireless, and Telus Corp. will have to offer number portability by March 2007 – more than three years after U.S. consumers received this service. This will apply for Quebec, Ontario, B.C. and Alberta; the requirement doesn’t kick in for smaller provinces until six months later.

It’s all part, says the CRTC, of balancing the interests of consumers with the interests of the carriers.

Isn’t it strange how consumers so often come out on the short end of the CRTC’s balancing acts?

All of the cell phone companies in Canada offer overpriced products and horrible customer service. Since Rogers bought out Fido I’ve heard nothing but horror stories from subscribers of both. Telus isn’t any better. Bell Mobility — my phone company — is perhaps the worst offender of all. But because our phones are already locked to our companies, and getting a decent deal on a new phone means locking into another contract, switching is already enough of a hassle. Having the phone number locked into the company is all that much worse.

Local numbers are already portable for landlines; I kept my phone number when I switched my home phone service from Bell to Videotron earlier this year. There’s no doubt the consumer wins when competition is fostered. If the cell phone companies actually had to fight for our loyalty, they might not treat us quite so callously.

The CRTC does little other than “protect the interests” of companies that feed us overpriced crap and prohibit us from getting the stuff we truly want. Any party that promises to immediately scrap it can have my vote in the upcoming election.

The offer’s on the table. Any takers?