The Final Kick in the Nuts

20 Jan

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?

Serious Bull

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?

Greed

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!

Fed Up

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.

According to their web site:

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.

Do Something

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.

 

Wireless Competition in Canada

27 Aug

This post has been a long time in the works as I’ve gown continually frustrated with the rediculous cost of owning a smartphone these days. I wanted to put it all in one place and show just how sad competition is in the wireless market in Canada (more specifically Ontario).

Now bear in mind that in all provinces there is likely a smaller carrier that I’ve not listed that forces the big guys to compete, however here’s what happens in a province where Rogers, Bell and Telus are not forced to compete.

The Premise

I decided on the specs of a plan I wanted, and priced them out as best as I could at several carriers.

The Plan

  • Unlimited local calling
  • Unlimited texting / mms
  • 6GB of Data
  • Call Display, Voicemail

Carriers I priced:

  • Bell
  • Telus
  • Rogers
  • Fido (Owned by Rogers)
  • Virgin (Owned by Bell)
  • Koodo (Owned by Telus)

The Pricing

Bell

As you can see from Bells pricing, my plan would cost me $120 per month for a single device.

Telus

telus-voice-data

As you can see from Telus’ pricing, the same plan would cost me the same amount at Telus. $120 per month for a single device.

Rogers

rogers-voice-data

As you can see from Rogers’ pricing, the same plan would again cost me the same amount at Rogers. $120 per month for a single device.

Fido

fido-voice-data

Fidos pricing is a little different. I get the same plan but 1GB less in terms of data for $105 per month for a single device.

Virgin

virgin-voice-data

Virgin does not have a 6GB option and this is the closest to what they have. $110 per month with 2GB less data.

Koodo

koodo-voice-data

This is likely why Koodo is killing it these days. This plan has 1GB less data than my desired plan, however all of the other features are the same. $90 per month for a single device. Their pricing actually reflects the loss of 1GB of data where as Virgins price is actually HIGHER for giving up 2GB of data.

The Real Kicker

Here’s the only company even trying to compete.

Wind Mobile

wind-voice-data

Sure you loose 1GB of data, but they even have a promo going on right now that sees their $45 plan drop down $6 per month for a limited time.

Now you with a straight face sit and tell me that there is real wireless competition in Canada. The only company I see trying to compete to win the business of Canadians is Wind Mobile.

This has been a load off of my chest and hopefully a learning experience for the rest of Canadians who think they are getting “Value” from any of these companies.