CRTC Low Cost Data Only Plans: “Much Ado About Nothing”
The proposed lower-cost data plans outlined in the Canadian Radio-television and Telecommunications Commission decision from today are unlikely to be used and will not help provide more affordable options to Canadians. None of the proposed plans exceed 1 GB of data and only Rogers’ plans offer a voice and text allowance in addition to data for the price of $30. In effect, today’s decision was: “Much ado about nothing.”
If affordable and useful wireless service options are going to be made available to consumers, more competition is going to need to be introduced into the wireless market, not semi-cajoled, likely largely unused plans like those approved today. The best way to facilitate more competition in wireless would be to allow mobile virtual network operator (MVNO) access. That is, reselling of wireless service by new companies that obtain wholesale access to existing wireless networks.
The CRTC launched this consultation on lower-cost data only plans in March as a stop-gap measure after the Commission made a number of determinations regarding wholesale roaming charges by Bell, TELUS and Rogers in Telecom Decision 2017-56 that effectively delayed any meaningful MVNO access in Canada. The Governor in Council sent that decision back for reconsideration by the Commission, expressing concerns regarding choice of innovative and affordable mobile wireless services on offer from those national carriers, particularly for Canadians with low household incomes. Read: the government wanted the CRTC to move towards MVNOs sooner than later.
Unfortunately, CRTC chose delay on this file by issuing Telecom Decision 2018-97 which re-confirmed its refusal to consider even an indirect route to the real issue of MVNO access. The result was the process that led to the CRTC’s decision of today. In it, the CRTC has approved the suggested “data-only” plans of the national wireless providers. They have committed to offering lower-cost data-only plans which range from $15 for only 250 MB of data (yes, you read that right: 250 megabytes, not gigabytes) to $30 for only 1 GB of data. There was no reasoning given by the CRTC or the companies for these proposed prices. But that is because the CRTC did not think the public should see these costs.
Without unlimited data or lower prices for capped data, these “low-cost data only plans” will not help Canadians with low household incomes afford wireless services because they actually are not useful and affordable. They will remain largely unused while Canadians again wait for the CRTC to reconsider wireless services (and MVNOs) in a large upcoming proceeding (and largely avoid discussions of high wireless prices meantime).
Sorry, not much ado about nothing. A comedy of errors.
Save PIAC – Update
*** UPDATE ***
As of 24 December 2018, thanks to your generous donations, PIAC will be open at least until mid-January. The fight is not over, however, to our supporters and those who gave so generously, THANK YOU, we will keep working to survive and thrive. Happy Holidays all! – JL
For over four decades, PIAC has been your consumer voice in Canada. We have consistently fought for fair treatment, fair pricing, and your fundamental rights as people, not just customers.
PIAC’s work has never been more important: major corporations are more powerful than ever in Canada. But PIAC itself has never been more threatened. We face an acute funding crunch and will be unable to keep going without your urgent help.
DONATE NOW TO KEEP PIAC’S WORK GOING
PIAC’s business model has always balanced on a knife-edge. PIAC staff and legal counsel do expert legal and advocacy work, and regulators like the CRTC reimburse these modest costs.
Over the last few years, our cost awards have been paid later and later, hurting our ability to operate. Now, after another unreasonable delay, PIAC needs your help now to keep our work going.
Will you donate today to keep us fighting for affordable internet, cheaper phone bills, airline passenger rights, and more?
I believe in the work we do, and our long record of consumer wins is a testament to the success we’ve had together. It’s crucial that this work continues. If you agree, please support us now.
For our consumer rights,
John Lawford
Executive Director
Public Interest Advocacy Centre