Tree of Eden

Canadian telecoms tired excuse that we are not like them…

Posted in Uncategorized by T.Salami on December 16, 2009

It is baffling that the argument Canadian telecoms have constantly insinuated that: “Canadians cannot possibly expect to get the same qualitative services as in the states and at similar prices” has stuck for so long.

David Olive, a journalist at the Toronto Star describes how much the wool was and probably is still – pulled over Canadians eyes with this eloquent statement about the telecoms almost about face turn once the Canadian Gov gave Wind mobile -a new Wireless entrant- the go ahead to launch. He said:

“Like magic, the three incumbent giants eliminated long-standing customer irritants including monthly system access and 911 fees. And soon they’ll no longer be able to charge the same prices for service packages that are different in name only.”

Now this might not mean that Canadians get the same price points and services as consumers in the states but it is still a big step closer.

I mean, this whole incident -which I believe caught Rogers, Bell and Telus with their pants down- is just too telling of the impact competition has on market prices. In regards to this lack of competition in the Canadian wireless market, Olive says:

“There are five wireless operators in Canada. There are more than 180 in the U.S., which would suggest there should be about 18 here. As it is, the results of Ottawa’s wireless auction will see the number of Canadian operators double to only 10. The Big Three are not pleased, nor should they be. Wireless is their cash cow. Unlike three of the new entrants – Wind Mobile, Public Mobile and Data & Audio Visual Enterprises Wireless Inc. (DAVE) – Bell and Telus have low-margin land line service to maintain, dating from early in the previous century. Rogers is a conglomerate with cable, broadcast outlets, magazines and a money-losing baseball team to manage.”

If Olive’s estimate that Canada should have roughly 18 wireless providers (since it is about one-third the population size of the states) then that means that even following the entrance of the new wireless providers, the Canadian market will probably still not be to competitive. Which means that Wind mobile might just end up being another exploitative wireless provider in the future.

It also could mean that Rogers, which bought Skydome, the home of the baseball team: the Toronto Blue Jays for $25 million, could have used those funds to provide better services and price plans for consumers than to have spent it managing as Olive says: a “money-losing baseball team”

You can find David Olive’s article here: http://www.thestar.com/mobile/business/article/739322

Posted via email from CNS

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: