Wireless code of Conduct

[GostHacked]

Of course it costs us more money, the demand for cellphones is inelastic. There is no competition in the market. So people are forced to pay whatever prices the big 3 collude upon.

Collusion indeed. Only a few months ago all three big telecom companies got together to talk about their rates.

http://arstechnica.com/business/2014/03/canadas-top-carriers-roll-out-identical-price-hikes-in-two-month-span/

Who says that having multiple wireless carriers forces network operators to compete on price? Canada's top three mobile operators, Rogers, Telus, and Bell Mobility, have all raised prices for certain plans by an identical amount over a short period of time.

CBC News reported this week:

Canada’s big three wireless carriers have hiked the base prices for new plans by $5 in most markets over the past two months.

So that 10% savings talked about here is nothing more than the original price a few months ago.

[Boges]

You guys are missing the reason for the price hike.

The companies can't lock people in to pay off a phone that's worth a few hundred dollars anymore. So they're making their money from raising the rates.

[Michael Hardner]

Good observation. It is nonsensical hypocrisy. Companies making profits are good things (especially for banks) and most people don't have any ability to determine what qualifies as an "excessive" profit.

As part of a medium-sized company, it's hard to imagine what our business would be without big telcos, big banks, and big box retail.

These companies are hugely annoying, no doubt. They're probably worse than government, actually, in terms of level of service. But they are the source of big contracts for other businesses.

[GostHacked]

You guys are missing the reason for the price hike.

The companies can't lock people in to pay off a phone that's worth a few hundred dollars anymore. So they're making their money from raising the rates.

My heart bleeds for them. Canadians pay some of the highest wireless rates on the planet. Using phones cheaply made in factories that use slave labor. iPhones and Foxconn stand out as an example. No these companies are making money on the phones as well. Even if they sell them for half price, they are STILL making money. You just would not believe the huge mark up on these devices.

An iPhone or a Zune or a Blackberry should not cost the same as a moderately priced laptop or desktop computer.

[Boges]

My heart bleeds for them. Canadians pay some of the highest wireless rates on the planet. Using phones cheaply made in factories that use slave labor. iPhones and Foxconn stand out as an example. No these companies are making money on the phones as well. Even if they sell them for half price, they are STILL making money. You just would not believe the huge mark up on these devices.

An iPhone or a Zune or a Blackberry should not cost the same as a moderately priced laptop or desktop computer.

Well new phones are pretty much computers. I don't know what the precise markup is, but new smartphones are all around the same price. (except the wonderful Nexus 5 of course) All electronics are made overseas high-end or low-end, so that "cheap" moniker doesn't really work. Just like a silk shirt at a private clothiers is probably made down the street as the graphic T you get from Walmart. Or the $20 sneakers you buy at the same Walmart or the leather loafers you pay $150 for. It's the way of retail.

A private company isn't going to let the CRTC eat into their profits, the shareholders won't let them. Your heart doesn't have to bleed for them, they have a monopoly on the market, don't like it? Go with WIND they have unlimited data for $40/month. But you'll have to pay for roaming if you ever leave a big city.

[Boges]

Now last week the CRTC said they only let minor companies bid for wireless spectrum. That might help the small players compete when it comes to network,

Now that will drive prices down.

http://www.cbc.ca/news/business/aws-3-wireless-spectrum-auction-will-be-tailored-toward-new-players-1.2698481

Edited July 15, 2014 by Boges

[TimG]

They're probably worse than government, actually, in terms of level of service.

Not a chance. Governments are completely incompetent when it comes to providing customer service. The only time it makes sense to put up with government "customer service" is when private players can't do the job required. Edited July 15, 2014 by TimG

[Boges]

But like the government, Telecoms deliberately complicate their dealings with the public. Banks sorta do the same thing. Trying to get the banks or telecoms to fix a mistake is very difficult.

But the difference is, once you threaten to take your business elsewhere you often get the private business' attention, the government doesn't have to worry about that.

Edited July 15, 2014 by Boges

[eyeball]

Now last week the CRTC said they only let minor companies bid for wireless spectrum. That might help the small players compete when it comes to network,

Now that will drive prices down.

http://www.cbc.ca/news/business/aws-3-wireless-spectrum-auction-will-be-tailored-toward-new-players-1.2698481

This won't help competition in rural or remote areas. Perhaps the government could partner with consumer co-ops to provide service to remote areas and hopefully keep prices in line with those available in cities. The government could allocate bandwidth just as easily as sell it.

[Boges]

This won't help competition in rural or remote areas. Perhaps the government could partner with consumer co-ops to provide service to remote areas and hopefully keep prices in line with those available in cities. The government could allocate bandwidth just as easily as sell it.

Hey if you choose to live in ButtBleep nowhere, don't expect to pay the same for LTE connections than people in the cities do.

The government helped the Big 3 build the current lines though didn't the?

[eyeball]

I don't expect the cost of providing service to be the same, but I don't see why I shouldn't expect a certain amount of public bandwidth can be allocated to the public that owns it so they can cooperatively find ways to keep their prices in line.

[cybercoma]

You guys are missing the reason for the price hike.

The companies can't lock people in to pay off a phone that's worth a few hundred dollars anymore. So they're making their money from raising the rates.

they're so hard done by that they can charge people much less in jurisdictions with public carriers. Give me a break with this absolute BS that they NEED to raise the prices.