{"id":1789,"date":"2014-05-20T10:09:52","date_gmt":"2014-05-20T14:09:52","guid":{"rendered":"http:\/\/www.worldline.ca\/blog\/?p=1789"},"modified":"2023-11-27T21:19:33","modified_gmt":"2023-11-28T02:19:33","slug":"lack-of-competition-costs-canadians-1-billionyr","status":"publish","type":"post","link":"https:\/\/www.worldline.ca\/blog\/lack-of-competition-costs-canadians-1-billionyr\/","title":{"rendered":"Lack of Competition Costs Canadians $1-billion\/yr"},"content":{"rendered":"
\"Dr.Greater competition in the tightly-controlled mobile wireless market could result in savings of about $1 billion a year for consumers and the wider economy, says the Competition Bureau.<\/div>\n
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The Canadian Press reported last week\u00a0that the competition watchdog made the claim in a submission to the federal regulator, the Canadian Radio-television and Telecommunications Commission, which is reviewing whether to increase regulation in the wholesale sector and has public hearings scheduled for September.<\/p>\n<\/div>\n

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The regulations would effect what the large wireless companies \u2014 Rogers, Bell and Telus \u2014 can charge small players for the use of towers and roaming fees.<\/p>\n<\/div>\n

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In the submission released Thursday, the Competition Bureau said one study into the issue suggests Canadians could benefit from greater competition and that large established wireless operators are realizing above-normal returns on investments because of their market dominance.<\/p>\n<\/div>\n

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The bureau says the three largest wireless companies, which together have about 90 per cent of Canada\u2019s cellphone market, have the power to maintain prices above competitive levels for a significant period of time.<\/p>\n<\/div>\n

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\u201cThe bureau estimates that increased retail competition from an additional nationwide mobile wireless carrier could result in gains of approximately $1 billion per year to the Canadian economy in the form of better product choices, price reductions and other benefits to customers,\u201d it said.<\/p>\n<\/div>\n

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This backs up the landmark study released by the CBC using data from the Organization for Economic Cooperation and Development (OECD) that\u00a0compared the cost of cell phone use in Canada to that of 19 other countries. They found that in\u00a0Canada a mid-range cell phone package costs an average of $572.86 US per year, which is almost $175 more than the average<\/strong>.<\/p>\n

\"Canada_WirelessData\"<\/p>\n

The $1 billion figure comes from a previously-commissioned report from the Brattle Group, which estimated a fourth national carrier would expand mobile wireless usage in Canada and drive down incumbents\u2019 average retail prices by about two per cent.<\/p>\n<\/div>\n

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Rogers\u2019 senior vice-president of regulatory affairs, Ken Engelhart, dismissed the submission as \u201cmisguided\u201d and \u201cspeculative,\u201d since the report deals with potential savings from added competition.<\/p>\n<\/div>\n

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Is it misguided to pursue a policy that would save Canadians hundreds of dollars a year? If you are one of the Big Three, the answer is an obvious yes. But for the rest of us? Not so much.<\/p>\n

\"wl_save_internet\"<\/a>All Canadians want is a fair shake, and the solution is simple\u00a0as it\u00a0has\u00a0been done before\u00a0with telecoms, resulting in companies like Worldline providing Unlimited High Speed Internet<\/strong><\/a> at hundreds of dollars a year less than the Big Three are capable of charging.<\/p>\n

The Competition Bureau is recommending that the CRTC establish additional regulatory measures \u201cif and when they are needed to ensure that new entrants have access to the wholesale services they need to compete effectively.\u201d<\/p>\n

Sounds like a plan.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Greater competition in the tightly-controlled mobile wireless market could result in savings of about $1 billion a year for consumers and the wider economy, says the Competition Bureau. The Canadian Press reported last week\u00a0that the competition watchdog made the claim … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[],"class_list":["post-1789","post","type-post","status-publish","format-standard","hentry","category-unlimited-high-speed-internet","category-worldline"],"yoast_head":"\nLack of Competition Costs Canadians $1-billion\/yr - Worldline Canada<\/title>\n<meta name=\"description\" content=\"Canadians are being ripped off by the virtual monopoly of the Big Three telecoms, but that may change sooner than later - if the government acts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.worldline.ca\/blog\/lack-of-competition-costs-canadians-1-billionyr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lack of Competition Costs Canadians $1-billion\/yr - 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