[ALL] Telus: Canada Should Be the Most Expensive Wireless Countr
per: Dr. Michael Geist ... a law professor at the University of Ottawa where he holds the Canada Research Chair in Internet and E-commerce Law.
Telus: Canada Should Be the Most Expensive Wireless Country in the OECD
Monday July 15, 2013
"Telus has responded to my post on the 2013 OECD Communications Outlook, which ranked Canada among the most expensive countries in the OECD for wireless services in virtually every category, with its own post claiming that Canadians should be celebrating our relatively high prices. The post notes the investment that Telus and other companies have made in Canada (Peter Nowak explains the reason behind much of that investment) and argues that:
When you consider our enormous investment, challenging geography, sparse population and outstanding networks Canada really SHOULD be the most expensive country for wireless service in the OECD, but were not. Thats a great success story we should be celebrating.
It is a testament to how out-of-touch Canada's incumbent wireless providers have become that they think Canadians should be celebrating the fact that we are not the single most expensive wireless country in the developed economy world. Telus says that scratching below the surface of the OECD report will lead people to conclude that Canadians pay about the same as other developed countries. Yet in its own chart, Canada ranks among the more expensive countries within the G7 in every category but one.
Interestingly, days after Telus promoted the OECD report with a press release and quotes from CEO Darren Entwistle claiming that Canadians "pay about the same prices as people in much more densely populated countries", it now says the OECD methodology is "limited." The OECD data relies on sample plans from Telus, Bell, and Rogers for its analysis. Telus also adds that pricing alone does not tell the whole story, noting that different prices may reflect different speeds.
To address their concerns about methodology and suggestions that rank do not tell the whole story, below are two of the key baskets from the OECD pricing comparisons that used Telus costs. Moreover, I have eliminated any country that does not match the Telus speed according to the OECD data. In other words, this is the OECD comparison of Telus pricing against providers in other countries offering comparable speeds. First, a 1 GB data plan with speeds of 40 Mbit/s or more:"
For the rankings, go to »www.michaelgeist.ca/content/view/6906/125/
"This is the data provided by the OECD using Telus as representative of Canadian pricing: the 2nd most expensive of 7 countries for 1 GB of wireless data (at speeds Telus customers are likely to receive) and the second most expensive of 19 countries for 500 MB of wireless data for tablets (again at speeds Telus customers are likely to receive). Telus apparently believes the fact that we rank 18th out of 19th countries in this OECD sample is a great success story. Based on recent comments, it does not appear the government shares that view."
Re: [ALL] Telus: Canada Should Be the Most Expensive Wireless Co
When I read about this sort of arrogance from the Canadian incumbents, it makes me want to throw the doors wide open to the other telcos of the world.
|reply to Old Koot |
Wow that's almost lower than AT&T low and saying the prices are needed for Canada's so
Space and size is a stupid thing to say thir is prices in the us that is super low and it has even more changeling shape and size.
|reply to Old Koot |
Shitty way to go about making the statement, but there is some truth.
We are a huge nation, with a low population. We have less people per square mile than anywhere else 'developed'. It costs us way more money to lay the infrastructure needed to support the speeds europe boasts about. I do expect to pay more, but don't use that as a justification
|reply to Old Koot |
The solution to the cost of serving remote areas is for all the providers to set up a single wireless corporation just to serve the boonies. I suspect the ITU standards allow one transciever to advertise 3-4 service providers.
Has anyone travelled highway 3 in south BC and checked what percentage has service?
|reply to Darhole |
Take a look at where our main population centers are and you will see we are all with in 100 kms of the Canada US border in dense pockets.
Get these dense pockets hooke dup first then brach out and lay the trunk work for further deployment to other areas.
Sure Canada is vast but just string some fiber from point a on the west coast to point b on the east coast and bingo theres your trunk.
You don't think there's a fibre backbone across the country already??
|reply to Old Koot |
You don't need even to know anything about the shape and demographics of the country or the technology, or much of anything. High profitability compared to firms in other jurisdictions would indicate a lack of competition. Now I don't have numbers to compare, but I do know Telus is constantly bragging about it's profitability, as do Bell and Rogers. So you do the math.
|reply to Old Koot |
It will be interesting for ripoffs coming until the Dec 2 2013 date of the start for 2 year contracts. And maybe two years after that will be more reasonable packages.
Seems to be the new plans about to come out will up monthly bills by $10 to 'holy crap'.
I for one, consider 'flex plans' and their associated price scales to be robbery. Of course I have 6GB a month at $30 so hopefully Telus loyalty in a couple of years will be nice to me again. Its my version of Flex and one price for my various amounts of monthly data use without having to end up with a variable bill.
The CRTC rulings seem to somewhat mirror Telus business models of pro-rated cancellations, no massive overages and such.
If you get a low cost touch screen phone, the subsidys were 2 years. The more expensive phone subsidys were more economical for a 3 years contract.
I could upgrade my phone right now to a newer model by paying off the prorated fee on my current phone. But I like my current phone.
Beginning July 17th, 2013, Bell will replace all existing Consumer rate plans with a new line-up designed for 2 year contracts to offer greater choice and flexibility. Also as of July 17, 2013, hardware pricing will be determined by the plan the customer selects. There will be three key categories of rate plans offering different values of minutes and data usage. These new plans will be available on a 30 day and 2-year terms. The rate plan categories will be Voice; Voice and Data Lite; and Voice and Data Plus..
Were still gaining additional info on the specifics of the new 2-year hardware pricing structure. What were hearing is that the prices will slightly increase from the 3-year pricing, but now on a 2-year. For example, the iPhone 5 will be around $199.95 and the Galaxy S4 will be $249.95. The entry-level device will most likely stay the same, but the higher end flagship device will increase.
Long chat on Bell plans.
Wireless bills going up because Investors gotta profit every 3 months. At least Telus, to a certain degree, Bitches at greedy Investors.
The new Telus rate plans will cost at least $5 more a month on standard smartphone contracts for those who upgrade to a new device, and the amount moves higher on certain plans. Customers who already own their own phone wont pay additional fees, Telus says.--
Cutting through the details, we believe the new plans reflect higher [revenue per customer] to neutralize the impact of contracts moving from three years to two years, Jeff Fan, an analyst at Scotiabank said. (The Scotia analyst has set out two plan comparisons in the graphic at the bottom of this post.)
Adam Shine, another industry analyst at National Bank added: Costs will be moving up rather meaningfully in the short term to accommodate two-year plans.
Telus said Wednesday the new plans are a necessary response to recover costs more quickly on expensive smartphones sold to customers at an upfront discount. The carrier then collects the remaining balance through monthly payments, a Telus spokesman said.
We have kept the pricing comparable to what we had. There is a moderate increase to the device balance charge because of the shorter amortization period, Shawn Hall, a spokesman for Telus said.
The entrenched industry model for selling phones is for the carrier to offer new devices for a cheaper upfront fee than what the hardware actually costs. In exchange, a customer agrees to cover the remaining balance over the life of a multi-year contract, similar to a home mortgage.
The story so far: In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move.