ISED touts lower wireless bills, lobby group says gov. using backward looking targets

The Government of Canada said it has delivered on its commitment to reduce wireless plans by 25 per cent while one lobby group says Canada needs to set new targets if it wants to really measure the affordability of phone bills in Canada. On Friday, the department of Innovation, Science and Economic Development (ISED) issued a press release announcing that it reached its target to reduce wireless bills by 25 per cent, three months ahead of schedule. In March 2020, the Liberal government made a commitment to track and reduce the costs of mid-range wireless plans by 25 per cent over two years. Its quarterly report, tracking the months of October through December, analyzes data from BCE Inc.'s Virgin Mobile, Telus Corp.’s Koodo, and Rogers Communications Inc.’s Fido. Campaigns Director at OpenMedia, Matt Hatfield, told the Wire Report in a phone interview that Canada is actually falling backwards when it comes to affordable prices. “Wireless prices continue to fall globally, that's a known thing. So if we are touting a modest decline in Canada we need to look at the global rates,” Hatfield said. “If the rates are falling by the same rate or less, then Canada is actually falling behind.” A report released in October by Finnish telecom research firm Rewheel Research showed that Canada is routinely amongst the top 10 most expensive countries tracked by the firm. According to data accumulated by Rewheel, Canada’s is the most expensive country in the world for a wireless plan with over a thousand minutes, and 20 gigabytes of data. The benchmark ISED uses are based on prices advertised on company websites for 4G/LTE postpaid wireless plans offering 2 GB, 4 GB and 6 GB, all of which are bring your own device plans with unlimited calls and text. “They set a backwards looking target. That’s not the plans and speeds available to most Canadians or that most Canadians subscribe to,” Hatfield said. ISED’s benchmark “plans continue to reflect Canadians’ average data usage,” the department wrote in its release, adding that in 2020, the average Canadian used 3.8 GB of mobile wireless data per month. The three flanker brands studied all set a price of $37.50 for their 2 GB plans, $41.25 for 4 GBs, and $45 for 6 GB across all the provinces. There is no price tracking provided for Canada’s three territories. “We should really be looking at the global average and setting improvements relative to the rest of the world, not setting a target relative to our own poor past performance and only measuring relative to that,” Hatfield said. During the 2021 election campaign, Prime Minister Justin Trudeau told the Wire Report at a post-debate conference that if Canada’s telecom companies did not drive down their prices they would be forced to face much more competition in the marketplace. He also said that the government would “watch very closely” if Canada’s wireless prices continue to come down, though he didn’t set a specific target. However, his recent mandate letters to Innovation, Science and Industry Minister François-Philippe Champagne and Rural Economic Development Minister Gudie Hutchings, failed to take into account the high prices Canadians pay for cellphones and internet service, according to Open Media, which has criticized the Liberals for abandoning their commitment to lower cellphone prices. According to ISED’s Friday release the “government’s policies to promote competition have contributed to better prices for consumers.” ISED noted that it set out pro-competition rules for the 600 MHz band spectrum auction “that led to regional providers more than doubling their share of low-band spectrum,” issued direction to the CRTC to consider how its decisions can promote competition and affordability, reserved set-aside spectrum in 3500 MHz spectrum auction, and regulated roaming rates through the CRTC. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca.

ISED touts lower wireless bills, lobby group says gov. using backward looking targets

News | January 28, 2022

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ISED touts lower wireless bills, lobby group says gov. using backward looking targets

News | January 28, 2022

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