Tag: wireless services

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Mobile Syrup

Canadians want more competition in the telecom sector, survey shows

It’s no secret Canadians pay some of the highest cell phone bills in the world.

A report submitted to Innovation, Science, and Economic Development Canada examining the costs of wireless services in 2020 showed Canada offered some of the steepest price tags, coming in second to Japan.

Source: Wall Communications Inc.

Data is collected and compared for Canada, the U.S, Australia, the U.K, France, Italy, Germany and Japan. Level 1 refers to plans with 450 minutes of talk and 300 text only. Level 2 refers to 1GB of data a month and doesn’t include talk or text. The remaining levels include unlimited talk and text with specific data limits. All figures are in Canadian dollars.

In 2020, Canadians using plans with 2-4GB of data and unlimited talk and text were paying 64 percent more than those in the U.K using the same plan.

For years Canadians have asked for change. A recent survey by Ipsos shows that ask has not waivered.

The market research company surveyed 1,001 Canadians over 18 on how they felt about competition in various Canadian markets.

88 percent of survey respondents want more competition across several sectors because they believe it’s too easy for big businesses to take advantage of Canadians.

90 percent of the respondents said steps need to be taken so smaller businesses can compete with more prominent players and create more choices for Canadians, leading to lower prices, better quality products, and more innovation.

The telecommunications and cable industries need the most competition, with 72 percent of the vote.

The results aren’t surprising given the lack of competition in Canada. According to the 2020 Communications Market Report from the Canadian Radio-television and Telecommunications Commission (CRTC), Bell, Telus, and Rogers (known as the Big Three) represented almost 90 percent of mobile phone revenues in 2020.

The Big Three are continuing a historical trend. They appear in this category for results released in 2017, 2018 and 2019. 

Only 28 percent of respondents say there’s enough competition in the telecom and cable sectors.

Source: Ipsos

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Mobile Syrup

Feds achieve target to reduce wireless prices, but say more needs to be done

Canadians pay some of the highest cell phone bills in the world. The federal government promised to reduce wireless bills by 25 percent to change this.

The government says the commitment, made in March 2020, has now been achieved three months ahead of schedule.

But just as we’ve seen in previous reports released by Innovation, Science and Economic Development Canada (ISED), questions remain.

It’s important to point out this is the first and only quarter where all provinces have met the minimum 25 percent target through non-promotional plans. Before this, plans were only available on a promotional basis. It wasn’t until October 2021 that Koodo, Fido, and Virgin brought out ‘starter’ plans to meet government targets. It’s worth noting that these starter plans come with several restrictions, namely that they aren’t available to customers who also want to get a smartphone from a carrier.

The reductions have seen a $50/mo plan with 2GB of data drop to $37.50/mo, a $55/4GB option drop to $41.25/mo and a $60/6GB plan drop to $45/mo.

As in previous reports, all provinces except Quebec have matching charts (Ontario chart is the one shown).

The government specifically required the ‘Big Three’ (Bell, Telus, and Rogers) to offer these reductions across their brands. What they didn’t require was for the three to offer the reductions themselves, which resulted in the carrier’s flanker brands (Virgin Plus, Koodo, and Fido respectively) offering plans that meet the government targets while the Big Three continue to offer plans starting at $80/mo.

While there is progress from each sub-brand, there’s no improvement to plans offered by the larger corporations that own them. Data shared with the public doesn’t include any numbers from the Big Three themselves.

Quebec

The data reported by the ISED show similar figures across all provinces, except for Quebec.

Fido and Virgin deliver a 27 percent reduction on the 4GB data option. The report notes that both companies offered 4GB options that would meet the 25 percent threshold and the 27 percent threshold. The less expensive one is included in the report, hence the 27 percent reduction.

Data also shows carriers in the province have offered a 3GB service option on and off since October 2020. In some cases, it was promotional, but it appeared to be a part of their regular lists in most months.

Looking at this quarter only (October 2021 to December 2021), Virgin offered a $40/mo plan with 3GB of data in October and November that isn’t marked as a promotional offer. Fido offered a similar plan for the two months but lists it as promotional. Koodo only offers the plan through a promotion in October.

The quarterly report does not state if the companies met the 3G target because there was no benchmark number available to compare it to. It’s unclear why the government show 3G as an option if data is not available from carriers.

In a press release, the government says “wireless services are still too expensive” and promises to build on the changes we’ve seen so far. No specific details are included as to how and when this will be done.

Source: ISED

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Mobile Syrup

Rise in streaming services and the death of TV: Here’s what 2022 might bring in tech and telecom

A new year means new trends.

In the fast-moving world of technology, almost anything is possible. In an effort to gauge what the year has ahead, consulting company Deloitte put together a list of the things that are most likely to change in the technology and telecommunications sectors.

Streaming services

In an article gauging the future of streaming services, the company predicts at least 150 million subscriptions will be cancelled across the world this year.

A competitive market and rising costs are two possible answers to this.

But it’s not all bad news.

The authors believe more subscriptions will be added than cancelled. Those leaving a streaming service may eventually resubscribe, a sign of a “competitive and maturing” market.

With so much competition, companies spend big to retain customers. Billions are spent to get the best programming to keep customers on board. The article notes this may not be sustainable and other methods should be explored.

In the U.S. for example, incentives such as cheaper packages are being offered, a want for most customers. The article notes companies need to keep their customers in mind if they want to succeed.

The death of TV

Keeping in line with the rise of streaming services, the use of traditional TV services will take a dramatic dip in the U.K. this year.

The company predicts this is the last year TV from broadcasters, whether live or on-demand, will make up more than 50 percent of all viewing. The authors say the trend in the U.K. will be similar to many other markets.

“For TV to thrive going forward, the industry should regroup to face the new reality that it will be, not the dominant form of home video entertainment, but only one of many strong contenders for viewers’ attention,” the authors write.

Wireless catches up to wired broadband

Deloitte predicts fixed wireless access (FWA) connections will grow to 88 million globally this year. This is an increase from 60 million reported in 2020. FWA uses radio waves to deliver wireless internet services.

This will mark the first time wireless services are competitive with wired services, and the arrival of 5G helps with this. The next-generation cellular network will help through greater availability of spectrum and improved network infrastructure.

Image credit: Deloitte 

Source: Deloitte