CRTC approves telecoms’ proposed low-cost data plans

The CRTC has chosen not to make changes to lower-cost data plans suggested by telecoms, accepting the plans as envisioned by the companies, in a decision that angered consumer advocates — whose proposals for cheaper alternatives went unheeded. The regulator said on Monday that Rogers Communications Inc., BCE Inc., and Telus Corp. will have 90 days to implement new data plan options, ranging from $15 for 250 MB to $30 for 1 GB of monthly data in pre- and postpaid flavours on both 3G and LTE on their flanker brands. The decision comes after a proceeding that started when the commission ruled that, instead of mandating roaming for WiFi-first providers, it would be best to first test the competitive waters by asking the big three to propose lower priced data-only plans to address a gap in the market. When the initial proposals from the companies were deemed inadequate, including by consumer groups, the telecoms submitted revised plans that doubled their initial offerings -- which the CRTC approved on Monday. Part of what informed the CRTC’s decision was the mix of different options that it said, when taken altogether, technically represent more choice for consumers. The deal includes different variations of roughly the same price-per-megabyte: Bell’s Virgin will offer $28 for 1 GB on LTE for both pre- and post and its prepaid Lucky Mobile will offer 500 MB for $15 on 3G; Rogers’ post- and prepaid options on Fido will include $15 for 250 MB, $25 for 500 MB and $30 for 1 GB on LTE, all with unlimited text and picture messaging, while its Chatr brand will include prepaid base options of $15 for 250 MB and $25 for 1 GB at 3G speeds with text and voice; and both Telus’ Koodo and Public Mobile brands will include postpaid and prepaid options, respectively, of $30 for 1 GB on LTE. Telus already offers the plans on its budget-friendly brands, spokesman Steve Beisswanger said in an email. Both Rogers and Bell said in statements that they plan to have the plans available within the 90 days. “While none of the revised plans on their own would necessarily be enough to fill the gap identified by the Commission with respect to lower-cost data-only plans, their introduction would represent an important step forward in developing and supporting more affordable and innovative mobile wireless services for Canadians and, in particular, for Canadians with low household incomes,” the decision read, which elicited some confusion from some experts. Carleton University academic Ben Klass, who co-wrote a filing in the proceeding commissioned by Consumers’ Association of Canada Manitoba Branch, was critical of the decision Monday. Noting in a phone interview he was speaking as an individual, he said that the commission’s acknowledgment that the plans won’t fill the holes in the market makes the decision “a complete mystery to me how they could’ve proceeded in the way that they did, approving these plans.” He added it’s a “slap in the face” to those lower-income people who need access to data as much as everyone else. Klass said the CRTC effectively ignored evidence brought in front of the regulator suggesting that tablet plans from the incumbents offered more data for similar pricing as the low-cost data plans. In July, before the big three revised their low-cost options, Shaw Communications Inc.’s swooped in and started offering the same top-line deals -- $30 for 1 GB. The regulator saw this, as well as intentions of Quebecor Inc.’s Videotron to further compete in the lower-cost market, as “further competitive activity and rivalrous behaviour” that “is likely to occur in this market segment.” “The Commission expects that, as a result of this dynamic, the number and variety of lower-cost data-only plans available to Canadians will continue to increase and improve over time, and bring better value to consumers,” the decision said. The CRTC said in its analysis that the fact that the services will be on the incumbents’ flankers will not take away from the quality because they all ride on the same network. But Klass said that there’s been evidence on the record suggesting the carriers throttle -- or reduce -- speeds on the budget-friendly brands. This same issue was raised by consulting company Nordicity, when it told the Wire Report earlier this year that flanker brands are not an attractive option for the “vast majority” of subscribers because the services are limited in such things as service area, features and devices. But Telus Corp. said in response that that’s not always the case, and that in its case, its flankers are in the same service areas as its main brand. It added in its reply submission to the current proceeding that the low-cost plans are available on the latest network technology. In its own reply submission to the low-cost data proceeding, Bell said there’s no difference between its brands in terms of network footprint and coverage. Rogers said Fido customers get the “same advanced LTE networks” as Rogers customers, while providing the data plans on both premium and flanker brands would create “unnecessary confusion.” Part of the agreement is that the Big Three will have to file a report every six months showing monthly demand by province and/or territory for each of the options, how they are marketing them, and note changes to rates, terms and/or conditions for each. The first report is due July 31, 2019. The CRTC said it expects these options to remain in place until it completes a thorough review of the wholesale mobile wireless framework, which includes a reconsideration on mobile virtual network operators (MVNOs), beginning next year. Internet advocacy group OpenMedia said in a Monday press release that the decision effectively treats those who need affordable plans as “second-class citizens” and will “perpetuate Canada’s digital divide.” That’s because, they say, the “small range” of proposals are “disproportionately expensive.” The group is asking Innovation Minister Navdeep Bains to intervene once again, as he had when he sent back the CRTC’s original MVNO decision back, which eventually led to Monday’s decision. Late Monday afternoon, Bains said in a statement that echoed his previous comments when the CRTC began the low-cost data proceeding, that the decision is a “step in the right direction, but we know more must be done to make prices more affordable for Canadians.” “Connectivity is not a luxury in today’s digital age,” he continued. “And greater affordability for Canadians will come from more competition,” adding the government will continue to monitor the situation and promote greater competition. Various groups had put forward plans of their own that were significantly cheaper than those offered by telecoms -- who then countered those suggestions by arguing to the CRTC that opting for any plans but those proposed by the telecoms themselves would harm the industry. The Public Interest Advocacy Centre (PIAC) said a rate of $11.62 per month for 1 GB should be offered, while the Forum for Research and Policy in Communications suggested a $7 a month plan that provided 1 GB of data. A proposal from the Canadian Internet Policy and Public Interest Clinic (CIPPIC) and OpenMedia suggested about $2 per GB, while the Manitoba Branch of the Consumers’ Association of Canada propsoed a “flex” proposal running $20 a month for 1GB of data. The FPRC said on Twitter that there is “no clear rationale” for why the CRTC just accepted the proposals as put forward by the incumbents. University of Ottawa law professor Michael Geist and Carleton University professor Dwayne Winseck also said the decision was inadequate -- some expressing it in terms that would make “inadequate” an understatement. Winseck, for example, called for the removal of CRTC chairman Ian Scott, suggesting that under his leadership the commission has “turned back the clock.” He said the top line low-cost offer is “off the charts” by international standards. Part of the problem that some say the industry is facing lays in data that show data consumption is higher than 1 GB; some suggest the average consumption, depending on the year, on mobile per month is increasing -- estimates range from 1.3 GB to 1.5 GB. "Even the highest level of plan that has been accepted here -- the 1 GB plan -- is only about two-thirds of the average use...this is a below average plan at best," Klass said. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC approves telecoms’ proposed low-cost data plans

News | December 17, 2018

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CRTC approves telecoms’ proposed low-cost data plans

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