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Telecom news roundup: the season of price hikes [Apr. 7-14]

The big three telecom companies in Canada have implemented several plan changes, resulting in Canadians paying more for services. Their flanker brands, Fido, Koodo, and Virgin Plus, have also seen price hikes.

More details on the changes, and a recap of some of the most important telecom stories this week, are detailed below:

Business

Rogers is acquiring BAI’s Canadian division, the company with the rights to build a wireless network on the TTC. It will take Rogers two years to complete its 5G build and several months to update infrastructure allowing for access through 3G and 4G.

Rogers says it’s open to working with Bell and Telus to ensure all TTC riders have access to mobile services when using the subway.

Rogers CEO Tony Staffieri made  $31.5 million in 2022, overtaking the CEOs of Bell and Telus.

Bell MTS has pledged to expand its services to six rural communities in Manitoba.

Fido, Koodo, and Virgin Plus have raised some plan prices by $2 a month. Rogers, Bell, and Telus have also implemented similar changes.

Bell has launched a lawsuit against an alleged copper thief.

According to a recent report from Opensignal, there isn’t a single answer to which company provides the best broadband internet services in Canada.

A new poll shows Canadians aren’t confident the government is doing enough to provide affordable and competitive telecom services.

Cogeco has released its Q2 financial results for 2023, reporting $736.6 million in revenue.

Deals

Lucky Mobile is offering 4GB of bonus data on select 3G plans for 12 months. More details are available here.

Chatr is offering a similar deal, but its offer includes 3G and 4G plans. Read more here.

Public Mobile is offering 15GB of data for $40/month for a limited time.

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Even Ryan Reynold’s small U.S-based carrier can’t escape big telco buyouts

Actor Ryan Reynolds is the latest Canadian to be impacted by a carrier buyout.

T-Mobile will acquire Reynolds’ U.S.-based budget wireless provider Mint Mobile for as much as $1.35 billion USD (about $1.86 billion CAD). According to details reported by Bloomberg, T-Mobile wants Mint to bolster its prepaid phone business and reach more low-income customers. The final price will be based on Mint hitting certain performance goals both before and after the transaction closes.

Reynolds owns an undisclosed but “significant” stake in Mint and will continue to make commercial appearances on behalf of the company, Bloomberg reported. Mint co-founder David Glickman told the publication that Reynolds has incentives to “continue for years.”

T-Mobile expects the deal to close later this year.

While the Mint acquisition won’t mean much for most Canadians — beyond a death knell for any fleeting hope Mint might come north of the border — it is emblematic of a larger problem in North American telecom. That is the incessant gobbling up of competition by the biggest players.

One need look no further than the ongoing Rogers-Shaw merger, or the recent spate of smaller ISPs purchased by the largest Canadian telecom players. Telus picked up Start.ca and Altima, Bell acquired Distributel and EBOX, Vidéotron grabbed VMedia and is poised to get Freedom if Rogers gets Shaw, and Cogeco nabbed Oxio (my beloved).

Sure, the CRTC launched a review of internet services in Canada and cut wholesale rates, but it might be too little too late as the number of smaller players dwindles.

Of course, Mint Mobile wasn’t the answer to any of these problems. But it was an example of how things could be better. Mint offered some of the lowest mobile prices in the U.S., with plans starting at just $15 USD per month (about $20/mo CAD). While that pricing will continue — so says T-Mobile CEO Mike Sievert — it won’t be as an alternative to big U.S. telcos but in service to one of them.

Image credit: Ryan Reynolds’ YouTube

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TekSavvy reveals CRTC chair Ian Scott’s multiple mystery meetings

The Canadian Radio-television and Telecommunications Commission (CRTC) chair Ian Scott has been under fire over meetings with telecom executives, particularly when Scott was photographed having beers with Bell CEO Mirko Bibic.

Now, independent internet service provider (ISP) TekSavvy obtained records detailing multiple undocumented, off-site meetings between Scott and unknown participants. In a blog post, TekSavvy explains it obtained documents through the Access to Information Act. The documents show several lunches or meetings Scott had in Ottawa between 2019 and 2021.

Specifically, the information in the documents comes from Scott’s calendar entries associated with the business uses of his vehicle. The documents don’t always include information about who attended the meetings or what topics were discussed. Moreover, TekSavvy said the CRTC didn’t provide additional details or documentation related to the meetings through a spokesperson or additional access-to-information requests.

Highlights from the documents include that several of the meetings occurred at the high-end Rideau Club. Records show that Scott met with Quebecor CEO Pierre Karl Peladeau and former CBC executive vice-president and Telus advisor Richard Stursberg. TekSavvy says there’s no further documentation of those meetings, and neither meeting was logged in the federal lobbyist registry. A Quebecor spokesperson told TekSavvy that the CRTC requested the meeting with Peladeau and that it wasn’t logged because it didn’t pertain to matters covered by lobbying regulations.

TekSavvy argues that meetings like these are concerning since there’s no transparency around them. There’s no way to know what was discussed at the meetings and what impact (if any) the meetings had on CRTC decisions. The ISP even cites a 2o14 CRTC document advising against meetings like the ones Scott attended since they could appear to express favour or bias.

Finally, TekSavvy reiterated its call for Scott’s removal, noting that he presided over several anti-consumer decisions that the ISP says contributed to rising internet prices and the acquisition of several independent telecom companies by large players. However, Scott’s term as CRTC chairperson was extended until January 4th, 2023. It was initially set to end in September.

Source: TekSavvy

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CRTC decision on MVNO access sets rules between regional players, incumbents

The Canadian Radio-television and Telecommunications Commission (CRTC) says it’s one step closer to enabling the deployment of mobile virtual network operators (MVNOs) in Canada.

The Commission published a lengthy decision on October 19th covering the terms and conditions related to MVNO service and measures to govern relationships between regional providers and incumbents like Bell, Rogers, Telus, and Sasktel.

MVNOs operate on top of existing networks to offer service (similar to how independent ISPs use existing broadband infrastructure to offer internet services to Canadians, but for mobile networks). The CRTC mandates the national wireless providers (Bell, Rogers, and Telus) — as well as SaskTel in Saskatchewan — provide network access to regional carriers.

As a quick refresher, the CRTC chose to pursue a facilities-based MVNO model in April of 2021. The decision came as a disappointment to many since it required regional providers to have invested in network infrastructure and spectrum to gain MVNO access. Critics said that requirement would limit who could launch MVNO services in Canada.

While the October 19th decision maintains that requirement, it also establishes several other details of MVNO access. You can access the entire decision here, but we’ll tackle some of the standouts below.

First, the CRTC denied various provisions restricting MVNO eligibility based on minimum spectrum holdings and other spectrum-related issues. However, regional wireless carriers seeking MVNO elibility must still register as a wireless carrier with the Commission, have a home public mobile network somewhere in Canada, and actively offer mobile wireless services to retail customers. Moreover, the CRTC expanded eligibility to regional wireless carriers that hold local telephone spectrum licences.

The CRTC also decided that the MVNO access service should be considered an extension of a regional carrier’s home network. Aside from reducing complexity, this would make the home network and MVNO access available to all end users and eliminate the need to distinguish between home network and MVNO access users.

The Commission also determined that MVNO access would include all available GSM-based networks. That means 3G, 4G/LTE, 5G and beyond will be available to regional carriers. It also determined that MVNO access should support seamless hand-off to avoid dropped calls or service disruptions when users transition between networks.

Other decisions include denying provisions to restrict the resale of MVNO access service and to require regional carriers to compensate incumbents for inaccurate traffic forecasts. It also determined that MVNO access rates be open to renegotiation at least every two years, although parties can agree to different time frames if they choose.

The full decision is available here.

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Some Rogers fibre customers experience service interruption in Hamilton region

Rogers is currently experiencing a service interruption that’s impacting some locations in Hamilton.

Unlike a previous Rogers service interruption, the telecom is clearly stating that this is due to a fibre cut caused by a local fire. Rogers’ team is already on site and working to fix this issue.

Like always, people have gone to Down Detector to note their experiences. Currently, the website indicates that more than 400 people have been affected by this service interruption.

Rogers states that this is not impacting wireless services, which makes sense given it’s a fibre issue.

Knowing that this is a fibre issue and with its team already on site, hopefully, this issue is resolved pretty soon. We’ll keep tabs on the situation and update this post as soon as we learn more details.

Source: Rogers

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Here’s what 5G offers Canadians

Canadian carriers have successfully made the transition over to 5G connectivity, but what does it all mean for you as a Canadian smartphone user?

This video is part of our The Future with 5G Series. A full-length documentary on 5G airs on BBC Earth Canada on August 26th.

This story is sponsored by Bell. MobileSyrup publishes sponsored posts. These partnerships do not influence our editorial content.

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Why the Rogers outage was so bad, and how to prevent the next one

Canadians didn’t know how good they had it until it was gone.

Millions woke up on the morning of July 8th to find they had no internet. Their wireless service didn’t work. Debit transactions at stores failed. E-transfers didn’t go through. Canadians couldn’t reach 9-1-1. Government services reported disruptions because phone lines were down.

Roughly 36 hours later, Rogers CEO and president Tony Staffieri publicly revealed the cause of the outage: a maintenance update in the company’s core network. The update caused “some of [Rogers’] routers to malfunction” on July 8th.

Over 48 hours later, with some customers still reporting issues despite Rogers claiming it restored the “vast majority” of service, calls for an investigation were ringing loud. On July 11th, Innovation, Science and Industry Minister Francois-Phillipe Champagne met with the heads of Canada’s major telecom companies and gave them 60 days to “improve the resiliency and reliability” of networks and to reach agreements on emergency roaming, mutual assistance during outages, and a communications protocol to provide better information to the public and authorities amid telecommunications emergencies.

Champagne also promised a CRTC investigation into the outage, and on July 12th, the commission ordered Rogers to answer questions about what happened within ten days.

On the surface, it seems simple. There was a problem, and the government told telecom companies to work together to ensure it didn’t happen again.

But it’s never that simple. To come up with a solution, you need to understand the problem — this one runs deep, and well beyond Rogers.

All-in on all-IP

To start, we need to understand how Rogers’ network operates — you’ll need to bear with me through this, as it’s a bit of a slog (I promise it’s worth it). MobileSyrup has come to understand that Rogers is an all-IP (internet protocol) network, which effectively means the traffic doesn’t matter — it all goes through the same network.

A source familiar with networks, and who asked not to be named, explained all-IP as like an FM radio. Unlike typical radio, where users need to tune in to different stations, an all-IP station has every station in one tuning. In the case of Rogers, all traffic (telephony, wired, etc.) goes through the same core network.

To be clear, there isn’t anything necessarily wrong with all-IP. Telecom networks have moved in this direction over the last several years, enabling some innovations. However, there are vulnerabilities too — for example, a whole-network outage like what we saw on July 8th.

“Look, an all-IP network I don’t think is necessarily a bad thing if it’s implemented in a resilient way,” explained Ian Rae in an interview with MobileSyrup. Rae, the founder and CEO of CloudOps, has worked in the tech industry for about 25 years. Back in 2000, Rae was part of a startup that was virtualizing network access for internet companies.

“I am very much at the intersection of telecommunications and networking, and what we now call cloud computing,” Rae said.

Rogers isn’t one of Rae’s customers, so he isn’t “intimately familiar” with the company’s network — and it’s also one of the reasons he was able to speak with MobileSyrup. Rae was able to offer some high-level insight into Canadian telecom architecture.

“The thing that’s interesting about [the outage] to me is that [Rogers] already shared that this is in their core network,” Rae said. “So what’s a core network? This is where a lot of the internal handling of traffic and security policies, how services get integrated together, all this magic happens on the core network.”

According to Rae, components running at the edge of the network, like cell towers, get connected back to the core network through backhaul. Traffic runs through this system and ends up at the ultimate destination.

Tracing the traffic

Part of that journey involves what our source called the “basic level of the internet,” comprised of big, expensive gateway nodes, or routers, that handle all the traffic and transfer it out from Rogers’ network into the wider internet. An important note here: the core difference between a router and a gateway is that gateways regulate traffic between dissimilar networks, while routers handle similar networks. In other words, a router could be considered a gateway, but a gateway can’t always be considered a router.

This is where we get into the meat of what went wrong. As detailed by Cloudflare in a blog post on July 8th, the issue stemmed from Rogers’ routers that handle Border Gateway Protocol (BGP). BGP, according to Cloudflare, allows one network (for example, Rogers) to tell other networks that it exists. The internet is a network of networks, so simply, BGP is how Rogers informs the rest of the networks on the internet of its presence.

We’ll get into BGP more in a moment, but first, it’s worth noting that MobileSyrup understands Bell and Telus operate all-IP networks as well. In other words, both could be vulnerable to similar issues.

But first, to highlight the scope of how traffic runs on Rogers’ network, it’s worth looking at what happened to Rae when Rogers went down. Rae had been on vacation in Rhode Island and was just starting the drive back to Montreal when the outage hit, and Rae lost service.

“One of the reasons for that is that the ability to roam actually does still tie back to the availability of those core networking services back up in Canada,” Rae said.

That’s perhaps one of the best examples of how this system works for people outside the know, and it helps clarify why the Rogers outage was so significant. It wasn’t that phones couldn’t connect to towers. Rogers’ network failure was much more specific, taking down a core piece of the network responsible for directing traffic from Rogers’ network to the rest of the internet.

It’s also key to understanding the issues with 9-1-1 and Rogers customers being unable to call emergency services. As MobileSyrup understands, Canadian telecommunications companies already have network sharing agreements to enable 9-1-1 access in the event of a network outage. In other words, if a Rogers phone can’t connect to Rogers’ towers, it can fall back to other carriers’ towers through local roaming to access the emergency network. If you have cell signal, you can dial 9-1-1.

Given that Rogers’ towers were operating fine, it appears that the emergency fallback didn’t kick in. Further, Iristel president, founder and CEO Samer Bishay said in a statement that Rogers customers could have regained access to 9-1-1 services by removing the SIM card from their device. Typically this isn’t necessary, but because of how Rogers’ network failed, Bishay said removing the SIM would enable the typical fallback routing for emergency calls. Unfortunately, this wasn’t communicated to Canadians during the outage, with some emergency services directing people to find landlines or borrow other, working phones.

Assembling the puzzle pieces

Albert Heinle, co-founder and CTO of Waterloo, Ontario-based CoGuard, shared a deep dive into Rogers’ BGP issues on the CoGuard website. Heinle assembles a few pieces — first, noting what Rogers revealed about an update causing router malfunctions, then pulling in Cloudflare’s information about BGP — and explains that there was likely a scheduled maintenance update on Friday morning, which caused Rogers’ BGP routers to malfunction. That malfunction stopped those routers from communicating to the rest of the internet that Rogers’ network existed. Rae also notes that Rogers may use internal BGP (IBGP) for communication within its own network, which could also potentially be a point of failure.

Both Heinle and Rae referenced Facebook’s October 2021 outage, which was also BGP-related. A small misconfiguration removed the ability of Facebook’s systems to communicate with each other.

The anonymous source described the issue to MobileSyrup as similar to being connected remotely to a computer. If you turn on that computer’s firewall, it cuts off the remote connection, and now you can’t remotely reconnect to turn off that firewall. Then, you have to physically go to that computer and physically connect to turn off the firewall. Of course, it’s never that simple — there’s still the process of figuring out what went wrong, where it went wrong, and how to fix it. Oh, and then actually fixing it!

However, it’s worth acknowledging that there may still be pieces of the puzzle that haven’t been revealed. Rogers is due to answer CRTC’s questions about the outage on July 22nd, and new information will likely be revealed there. That said, it seems enough of the pieces have been revealed for people to start teasing out ways to prevent this from happening again.

And that brings us to the crux of all this: solutions.

Work together, or else!

It’s important to understand that no solution should be off the table. Everything is worth considering at this point, and every solution has pros and cons. People can argue about what should be done, but first, we should examine what can be done.

So far, the solution that appears to have garnered the biggest headlines is Minister Champagne’s demand that Canada’s telecommunications companies work together and develop agreements for mutual assistance, emergency roaming, and better communication about outages.

The latter point is critically important, especially given that Rogers’ existing solutions for communicating outages almost completed failed to do that effectively. The ‘@RogersHelps’ Twitter account shared its first update over four hours into the outage on July 8th. Prior to that, customers were directed to visit either a community forum page that was supposed to offer information about ongoing outages — but didn’t — or a Rogers support page where customers could access a chatbot to get information about outages. During the early hours of the outage, that chatbot appeared to have difficulties working correctly.

The other two demands are more difficult. Emergency roaming agreements didn’t work during the July 8th outage, so revamping that system could help. However, it’s currently unclear how best to do that, considering that the way Rogers’ network failed prevented traffic from routing to fallback measures.

As for mutual assistance, while it would be good to allow phones to effectively “hop” between available networks, our source explained that this would essentially open a back door into the network that competitors can use. And, as is so often pointed out with government attempts to gain access to encryption, if a backdoor exists, it becomes a target for exploitation. That could come from anywhere — governments, hackers, competitors. It seems impossible — how do you open the core of your network to prevent outages without putting the whole network at risk?

Moreover, Rae said that although he liked the idea of Champagne’s mutual assistance, he worried that such an agreement could further hamper efforts to increase competition and bring in new players.

Update the way you update

Heinle’s analysis includes a close examination of Rogers’ own proposed solutions. On July 9th, Rogers outlined three parts of its action plan regarding the outage, which included analyzing the root cause of the outage and implementing redundancy and any other necessary changes.

Redundancy can be best thought of as increasing the amount of infrastructure to create fallbacks. In the case of Rogers’ outage, that could be increasing the number of routers. MobileSyrup’s source suggested adding specialized routers to handle emergency traffic, if such a system doesn’t already exist. However, Heinle notes redundancy isn’t the issue. The update structure is.

Rogers’ outage started with a faulty update, which means increasing the number of routers won’t solve the problem – if they all receive a faulty update, they all break. So, Rogers should focus on updating the way it handles updates to mitigate the potential for outages of this magnitude.

“These maintenance activities are generally pretty typical in routine,” said Rae. “You’re going to have a change management plan, you’re going to have an approval process, you’re going to have a backout plan. It doesn’t sound like, from what [Rogers] is saying, that it was a major change architecturally… those tend to be much riskier activities.”

Both Rae and Heinle posed the question of what Rogers’ risk management was with the update. Heinle suspects a rollback wasn’t possible given that Rogers said it disconnected impacted equipment. Both also questioned the “blast radius” of the outage — why didn’t Rogers stage the update to catch any potential issues on a smaller scale before it impacted the entire network? And if Rogers did stage the update, how did the issue slip through? We may not know these answers until we hear them from Rogers in the coming days.

A long road ahead

Ultimately, Rogers will need to review its internal update policies and develop solutions to fix possible failure points. Ideas shared with MobileSyrup include reviewing why updates need to be applied, and how those updates spread through the company’s network. Can Rogers contain updates to specific areas of the network for testing before a broader release? The approval process for updates should also be considered.

Rogers may examine whether it should implement check systems to warn of potential issues and prevent wide rollouts of broken updates. Maybe the company could implement (or improve an existing) system for managing update rollbacks when something goes wrong. Maybe more frequent, smaller updates instead of singular, major updates is the key.

Even better? A combination of everything. No solution should be off the table, including potentially expensive options — for example, the company’s consideration of splitting the wireless and wireline networks. That would be a huge expense given how the network currently works.

Moreover, while Rogers carries significant blame, no critical service in Canada — or anywhere — should be wholly dependent on a single telecom company.

“The fact that they went down is something that I’m shocked that everybody’s so shocked about it,” said Rae. “How is it that we have banks and other services that are mission-critical, and they depend entirely on the ability of a single telco provider to provide services? That is [an] unacceptable risk from my perspective.”

Rae acknowledges that that thought line only goes so far. It works for major services like Interac — which announced it would add a supplier to increase redundancy following the Rogers outage. For regular customers and small businesses, it may not make sense to have multiple internet services. Expense aside, many companies — including Rogers — incentivize customers to bundle services and get internet, wireless, TV, and more from one company.

In all of this, it’s easy to forget that Rogers’ employees were also affected. Like everyone else, employees couldn’t access services, couldn’t make payments, and couldn’t call 9-1-1. Unfortunately, many will likely be on the receiving end of vitriol from customers frustrated with how the company handled the outage.

So what can Rogers do to prevent a future outage? A lot. What should it do? That’s up for debate. What will it do? We don’t know yet. Rogers made it clear on the call with Champagne that it wants to work with Bell and Telus on this because what happened to Rogers could happen to them.

What will that mean for Canadians? We’ll have to wait and see.

With files from Douglas Soltys.

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Telus’ challenge against Videotron 5G spectrum license rejected by Canadian Federal Court

The Canadian Federal Court officially rejects Telus’ challenge against Quebecor-owned Videotron. In September 2021, Telus and Bell filed a complaint against Videotron’s right to buy 5G spectrum in Western Canada.

Videotron purchased the rights for 3.5Hz in British Columbia, Alberta, and Manitoba during the summer of 2021. The deal was secured for $8.91 billion and served as the company’s formal expansion of its mobile services outside of Quebec while using the 5G spectrum.

Telus and Bell believe that Videotron does not meet the criteria required to do so. The company’s formal complaint states that Videotron was not already present on the western side of the country;  therefore, it should not have the right to buy 5G spectrum. Additionally, the complaints claim there is a lack of transparency.

In October 2021, Telus lost the initial court case against Videotron. Since this junction, Bell withdrew its complaints. However, Telus persisted. The most recent ruling from the Canadian Federal Court now rejects the objection. It’s not yet known whether Telus will file an appeal to the court.

The Canadian Federal Court found that Videotron used an affiliate called Fibrenoire, which is registered with the CRTC as a facilities-based provider. Fibrenoire was providing commercial telecom services to the general public, as confirmed by Videotron’s application.

Quebecor has been stirring up Canada’s telecom industry recently. The company is in the running to acquire Shaw Communications’ Freedom Mobile as well. Though, the deal is contingent on how Shaw’s merger with Rogers Communications pans out. However, it does appear as though the likelihood of the deal passing went up as the Competition Bureau looks into the merger over competitive concerns.

Source: Telecompaper

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Canada’s Competition bureau plans to oppose Rogers’ $26-billion takeover of Shaw

Canada’s Commissioner of Competition is reportedly planning to oppose the $26-billion takeover of Shaw by Rogers at the Competition Tribunal. The two telecom companies have come together to make a joint statement on the matter.

The application from the Commissioner of Competition, Matthew Boswell. The two companies are planning to oppose it, following notification of Boswell’s intention to file the application late this week. The application seeks to block the proposed merger of Rogers and Shaw, homogenizing two of Canada’s largest cable networking companies.

Rogers and Shaw, along with the Shaw family trust, agree to extend the merger deadline. The deadline is now set for July 31st rather than June 13th.

Rogers and Shaw remain committed to the transaction, which is in the best interests of Canada and Canadians because of the significant long-term benefits it will bring for consumers, businesses and the economy,” the joint statement reads. “The companies have offered to address concerns regarding the possible impact of the transaction on Canada’s competitive wireless market by proposing the full divesture of Shaw’s wireless business, Freedom Mobile.”

Freedom has roughly two million wireless customers across Ontario, Alberta, and British Columbia. It is credited with driving down cellphone bills throughout previous years. A number of firms and entities have also expressed interest in the acquisition. This includes Globalive Capital’s Anthony Lacavera, who offered Rogers $3.75-billion for Freedom. Lacavera is also said to have called the sales process a “non-competitive sham.”

In March, Boswell is said to have received a letter from Lacavera, accusing Rogers of running a “closed and secretive sales process.”

As part of a press release from Rogers and Shaw, the two detail benefits of the $26 billion deal. A $2.5 billion investment is being made to build 5G networking in Western Canada until 2027. $1 billion is also being invested in the networking of rural and Indigenous communities.

Image credit:

Source: The Globe and Mail

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Chatr Mobile is offering 3GB of bonus data for six months

Chatr Mobile is offering a flash sale featuring 3GB of bonus data for six months.

This flash sale is available until May 9th. Below are all of the offers:

  • $70 for 23GB with 500MB with autopay
  • $60 for 18GB with 500MB with autopay
  • $50 for 13GB with 500MB with autopay
  • $40 for 7.5GB with 500MB with autopay
  • $35 for 5.5GB with 500MB with autopay
  • $25 for 3.5GB with 500MB with autopay

After six months you’ll lose the extra 3GB of data, however.

These plans also come with unlimited Canada/US Talk, unlimited text, 3G speeds, voicemail and more. To clarify, the autopay bonus is when you sign up for automatic payment withdrawals from your debit or credit card accounts.

Source: Chatr