Jackman-Atkinson: Code could improve fairness
- Details
- Published on Thursday, February 28, 2013
By: Kate Jackman-Atkinson
myWestman.ca
Cellular phones and wireless communication have become an indispensible part of Canadian life. We rely on cell phones to keep in touch with family and friends, for convenience, co-ordination and safety.
We also rely on our phones to stay up-to-date on current affairs and for entertainment. For rural Manitobans, wireless technology can bring the world to us and open our doors to the world.
The problem is that all of this comes at a price, and as wireless subscribers, we know that that price is often quite high -- we see it when we open our monthly bills. The question Canadians have been increasingly asking is whether or not that price is too high and what can be done about it.
On Feb. 15, the Canadian Radio-television and Telecommunications Commission (CRTC) ended their comment period on a new draft code for wireless services. In addition to a public hearing that took place in Gatineau, Que. from Feb. 11 to 15, Canadians could comment online about the draft code between Jan. 28 and Feb. 15.
The process began last fall when the CRTC asked Canadians for their help creating a national code for wireless services, which governs the use of cellphones and other personal mobile devices.
Canadians felt strongly about a few issues they want to see incorporated into the new code. They want to see a clearer understanding of their wireless services and fees; the ability to unlock cellphones on reasonable terms; the ability to set a cap on additional fees, such as those incurred from long-distance calls, usage of voice minutes, text messages, data usage and roaming and online tools to monitor usage and any additional fees.
As Canadians gain a better understanding about how their rates compare to those paid in other countries, we are beginning to question the value we receive for what we pay. Canadians are getting upset and the need for an updated code of practice becomes much more clear.
The Organization for Economic Cooperation and Development (OECD) looks at data from different countries and one area of interest is wireless rates. Their most recent report was issued in 2011 and found that among the 34 OECD countries, Canadians paid the most for international roaming data, paying an average of USD $24.61/MB of data, an amount 2.6 times the OECD average of USD $9.48. When it comes to local usage, we didn’t do so well either; an earlier report that looked at a yearly package of 780 calls, 600 text messages and eight multimedia messages found that Canadians paid the third-highest wireless rates.
Not only do Canadians pay high rates, many of us also experience poor service. In October 2010, 3G service was available on Mount Everest and we had to wait longer than that to have proper high speed cell phone service in rural Manitoba. I have talked to people who have moved from cell phones back to radios to keep in contact because the quality of their service and signal has deteriorated.
Canada’s problem is two-fold and provided the CRTC is serious about helping consumers, and not telcos, at least one of these can be fixed through the new wireless code. Outside of urban centers, Canada’s population isn’t very dense, which means service providers have to invest in lots of towers for not a lot of people. Because of this, we should expect to pay a bit more than subscribers in small, densely populated countries where fixed costs can be spread over more subscribers. The other problem is a lack of competition.
In Canada, the $19-billion telecommunications industry is dominated by Bell (28 per cent), Rogers (36 per cent) and Telus (28 per cent). These three companies have over 90 per cent of the market and tend to act like the oligopoly they are. The big three’s market dominance makes it hard for new players to enter the market and doesn’t encourage a customer-driven offering.
The CRTC can’t do anything about our sparse population but they can improve fairness. They can make it easier for subscribers to change providers or terminate their service. Between long contracts, locked phones and high termination fees, many Canadians find themselves stuck in a position where they can’t afford to switch providers, even if there was a competitor offering something better.
