More mobile competition around corner!

[Michael77]

Posted Tuesday June 6 2017

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Telecom Innovation
More mobile competition around corner

The Minister of Innovation, Science and Economic Development (ISED), at the Canadian Telecom Summit 2017, announced a more pro-consumer, pro-competition announcement on rules that would let "Wi-Fi-first" mobile providers roam on big telcos' wireless networks.
Expected to be detailed in a Cabinet order to the CRTC, the approach would increase affordability and innovation in Canada's highly-concentrated cell phone market by lowering barriers that block new players from competing.
The CRTC's review will get the ball rolling on a potentially game-changing process. Today, fixed-line providers like TekSavvy cannot broaden their models into the mobile space without building potentially redundant networks. The "WiFi-first" approach would let competitors bring the promise of lower prices, broader choice and a different way of doing things to cell phones, too.
"Consumers appreciate and trust us when it comes to bringing great service and fair prices to in-home telecom services," says TekSavvy CEO Marc Gaudrault. "But time and again, we've heard their frustration at having too few doors to knock on in other sectors."
"This is a fresh approach to kick-starting mobile competition in Canada," added Chief Legal & Regulatory Officer Bram Abramson. "In other countries, Wi-Fi-first carriers are able to enter the market and help promote competition. There's no reason we cannot create the same environment that would let Canadian and foreign investors – and attract innovators who make the market more competitive from every direction."

http://exchangemagazine.com/2017/week23/Tuesday/17060634.htm

[will13am]

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@sheytoon wrote:
@will13am
I disagree with respect to home internet pricing. Cell phone plans used to cost WAY LESS than home internet. Now it's the other way around. I think this is because of the independent third party providers like TekSavvy. Rogers offers cheap home internet because they're feeling some pressure from all the competition. Also, they know once Bell's fibre to the home (FTTH) deployments are widely available, they'll lose their network advantage and bleed customers. I think they're trying to get people to sign up now so that most customers will become comfortable and not look at leaving for Bell FTTH.

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@sheytoon, to my point, isn't competition wonderful?  Bell has just rolled FTTH in my neighborhood this summer.  It will definitely make my conversation with Rogers a whole lot more interesting when my contract ends next year.

[xCameron94x]

My unlimited internet usage costs less than rogers 250GB usage

I'm with Virgin Mobile home internet (so Bell). But i pay $50 for unlimited usage, 25download 10 upload.

Rogers for 250GB is $70. For 30download and 5 upload.

I just look at supply and demand for home internet. More supply, so prices would realisticly be a little lower

[sheytoon]

@will13am
I disagree with respect to home internet pricing. Cell phone plans used to cost WAY LESS than home internet. Now it's the other way around. I think this is because of the independent third party providers like TekSavvy. Rogers offers cheap home internet because they're feeling some pressure from all the competition. Also, they know once Bell's fibre to the home (FTTH) deployments are widely available, they'll lose their network advantage and bleed customers. I think they're trying to get people to sign up now so that most customers will become comfortable and not look at leaving for Bell FTTH.

[Michael77 · Accepted solution]

@will13am,

Thanks for your response.

I agree, real competition is important but the only way to get that with the big 3 is to have more players. We already know that Rogers, Bell and Telus work together and as a result phone plans and prices are relatively the same. It's time for real competition and change for the telecom market. Hopefully the new legislation will work to benefit consumers. 🙂

[will13am]

The telcos are so much smarter than the CRTC and in particular the average customers that they are ready to adapt to new rules and continue to make money like it grows on trees.  Recall how most customers thought that 2 year contracts would work in their favor.  With the abolition of 3 year contracts came huge increases in monthly fees.  One can only imagine how much unlocked devices will cost consumers in the end.  BTW, I can still get home internet from Rogers cheaper than Tek Savvy can get wholesale access from Rogers. 

Color me skeptical.  The only path to lower rates is competition, not legislation. 

[Wonder_why]

I love to see phone provider competition, let go PM