Report: Canadian Consumers Not Seeing Benefits From Wireless Industry Competition
In a new report this week, the Canadian Press indicates that Canadians feel they are paying too much and have too few choices when it comes to mobile phone, Internet, cable, and satellite service. The information comes by way of the Public Interest Advocacy Centre, a group that provides legal and research services on behalf of consumer interests, including those involving the provision of important public services. In regards to Canadian mobile, Internet, and television services, Michael Janigan of the Public Interest Advocacy Centre says that “in most services, we lag international models in relation to price and choice.” Canadian consumers are reportedly still frustrated with the Canadian wireless landscape, even though the industry has been deregulated and recently restructured to allow more competition with the new wireless entrants, such as WIND Mobile and Mobilicity. Janigan further indicates that, among wireless being a cash cow for the industry, it has been “enormously” profitable for Rogers, Bell, and Telus, which control the majority of the market. All kinds of benefits were promised to consumers in terms of lower prices and better deals on packages. None of that came to pass. Janigan’s report also details that the average monthly cellphone cost in Canada, which includes voice, text and data service, is approximately $67.50. This amount is a large price to pay when compared with similar services in the USA for $59.99 and $32.40 in the United Kingdom. Of course, the wireless carriers disagree with this report, as Telus spokesman Shawn Hall calls the report “self-serving mythology,” The fact is that urban Canadians enjoy the benefits of one of the most competitive telecommunications industries in the world. Canadians have access to a dozen or more options for their wireless, home phone and Internet services, while rural Canadians are not far behind that.
