A good friend I’ve known for quite some time shared this CBC article on Facebook and I could not believe my eyes! Not only have the big 3 raised wireless prices all at once now they’re getting ready to raise prices across the board for each and every service offering?
The article features commentary from a representative from Telus who goes on to say that the weak Canadian dollar is to blame for this price increase.
That’s a really funny thing for Telus to say, because when the Canadian dollar was on par with the US we didn’t hear of any price breaks because of how strong our dollar was did we? So why are we now seeing increases in pricing?
The reason is simple. The sinking Canadian dollar gives the carriers a free pass to up pricing and blame other sources for the increase. A sinking dollar means network components cost more? Why is that being passed on to the consumer? Is that not a cost of doing business? Do you not get massive tax incentives and subsidies to offset some of those costs?
When three companies control the market, it makes price increases super simple. Make a quick phone call to the other two guys and let them know what’s happening and then simply raise prices.
What’s even better is if you are running into new costs of running your business, you can always raise them again.
Where are they going to go? A “competitor”? Let them. This just means Bells network upgrades are paid for instead of Rogers.
As I mentioned in my post about the wireless industry in Canada when real competition comes along, all 3 carriers run out to the news outlets and scream unfair and try to turn Canadians against real competition.
Did you know that Rogers Wireless holds more spectrum in Canada than Verizon does in the entire United States?
Rogers Customer Count: 8.24 Million as of Q32015
Verzion Customer Count: 110 Million as of Q32015
So Rogers is 10 times smaller than Verzion so why do they need all the spectrum? Because if competitors got their hands on it, Rogers and the other two carriers may actually have to compete!
The Competition Bureau has an obligation to the Canadian public to ensure that this country is not getting bent over a table by businesses in this country.
The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
Headed by the Commissioner of Competition, the Bureau is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act (except as it relates to food), the Textile Labelling Act and the Precious Metals Marking Act.
The basic operating assumption of the Competition Bureau is that competition is good for both business and consumers.
The very first item in their list of anti-competitive activities that are investigated is price fixing. So why is it that these companies are getting away with this garbage? Why has the competition bureau not stepped in? I wish I had the answer!
I’m sick and tired of these companies completely emptying our wallets day in and day out to the benefit of their shareholders.
Communications are a necessity in this world, and we should not be punished for it! These companies need to understand that just because consumers pay it, it doesn’t mean they’re happy. It means they have a need and with 3 carriers controlling the entire market, they can’t make a choice that will help this situation.
The best we can do at this point in time is have everyone hop on Wind Mobile, but even with them being purchased by Shaw, their pricing will likely get insane too. The only reason they’re cheaper at the moment is because their network can’t reach into buildings anywhere near as well as the big 3 and the big 3 know it.
As soon as devices are ready to use 700mhz spectrum, we will see a bit more panic with the big 3 but for right now, they’re going to get as much money in their coffers as they can before any kind of revolution comes.