Canada’s Cellphone Oligopoly

July 11, 2008 · Posted in Conservatism.ca 

Gone are the days when cellphones were a luxury, or a tool for a few business elite. They are now a normal and essential part of life – both in business and personal affairs. Many families, like mine, have done away with fixed line phones completely, and this trend is growing. In fact, look all around the world, and you’ll see people getting more connected and benefiting from this amazing technology – EXCEPT IN CANADA.

Yes, Canada, that backwater of cellphone oblivion – nowhere near advanced as some dynamic, modern economies like Uganda and Tanzania.

First Rogers Wireless, stuck in 1989, with their refusal to come up with a pricing plan that will actually promote their new iPhone product (which, thanks to their monopoly on that protocol, and their takeover of Fido, is Apple’s only choice in Canada). Now, Bell and TELUS charging for incoming text messages, including SPAM. Imagine if we had to pay for spam email? I’d be broke!!

It’s time for cellphone executives to pull their collective heads out of their collective behinds. They’re not just hurting consumers, their dragging our country down (in a very real and serious sense, by damaging our competitiveness, productivity and technical innovation). No serious Internet company in Canada (like mine) is going to develop applications for wireless devices – why? There’s no market!

Worst of all for Canada and for cellphone shareholders, they are hurting their own bottom lines as well by limiting their market. But they don’t see it that way – clearly they don’t see a business case for Canadians using new technology en masse.

And isn’t that what this is all about? Larger corporations and Government clients have their blackberries and pay exorbitant fees for them – of course, it’s all expensed, so it’s not real money. If they offered a reasonable price to other people, they’d risk a backlash for raised rates to these lucrative clients, and what if that wasn’t offset by all the new clients coming on?

Could you imagine if the same backwards logic was used with any other technological innovation – radio, television, microwave ovens, etc. McDonald’s can have microwaves, but the rest of us, forget it!

For a better comparison, how about the always-on DSL/Cable internet. Suppose you could use it all you wanted, but as soon as you go over 6 gigabytes in a month, they start quietly charging you some ridiculous rate per kilobyte then slap you with a big fat bill a couple weeks after the end of the month!

Unlimited data plans (and, frankly, voice plans, too) are not the future – they are the “present”, at least everywhere else in the world.

This is ritual idiocy. We shouldn’t be arguing about this, time to join the 21st century!

Comments

  • Paul Holmes
    Harry,

    I'm not suggesting there should be one rate, I'm suggesting there should be an "unlimited" option. If people intend on using far less, then they should have that option.

    However, why anyone would get an iPhone with no intention of using it to its full capacity is completely beyond me - why not just get a little NOKIA handset?

    The entire point with the iPhone, and most of the other devices, however, is that they are "designed" to constantly access the network - it's built into their functionality. From a "functionality" point of view, it's not like gasoline, it's more like a rear view mirror - it's an important part of the car, and it's just not the same experience driving it without one.

    Canadian wireless companies don't understand this - and they're the idiots selling them.
  • Harry
    I agree with most of the above. Compared to every other country I've heard of, we're paying far more for far less.

    However, in terms of the internet plans, I have no problem with them charging for usage. If the pipe is only so big, and you're consuming 10x as much of the pipe as I am, why shouldn't you pay more? Capacity, while expandable with capital expenditures, is certainly a finite supply. Most everything else in our society is charged based on consumption, why shouldn't internet use be the same? To have the same price for everyone is like saying we should all pay $50 to fill up our cars with gas. Doesn't matter how much we pump, it should be a flat $50.
  • Mississauga Tom
    I agree with all the above.

    Also, about twenty years ago someone told me that Bell Canada was the only land-line carrier in North America that got away with charging extra for touch-tone (TM) dialling. If true why is it still happening?
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