I guess just the mere mention of the name Verizon has accomplished something significant. The big three telcos are apparently cutting their rates to bring them in line with US carriers according to The Globe And Mail:
Canada’s big three wireless companies are competitive with U.S. rivals on pricing, The Globe found in an informal survey of the cheapest plans including at least 1 gigabyte of data. Verizon appears to be the priciest of all the major U.S. carriers and Canadian major carriers.
Plans with 1 GB are the most common, according to Rogers. Telus says most customers are in the 500 MB to 1 GB range. T-Mobile customers using the latest 4G smartphones typically consume an average of 2GB of data per month.
To illustrate their point, The Globe And Mail provided this handy info-graphic. One thing that you will notice immediately is that the big three are in lockstep with each other when it comes to pricing while in the US there appears to be a spread in terms of pricing which implies there is actual competition there unlike what appears to be the case in Canada.
Now, this is a good thing, don’t get me wrong. But Canada is still not rate competitive with the rest of the planet:
In the high volume use basket (which includes at least 1GB of data usage per month), the CRTC data, which includes the new wireless entrants as well as the incumbents, shows average monthly Canadian prices are lower than U.S. prices, but higher than prices found in the U.K., Australia and France.
“Neither U.S. nor Canada are models to be emulated – prices in some European countries for LTE-based data packages are significantly lower than in either of these North American countries.” said Martyn Roetter, an independent telecom analyst.
My guess is the strategy that the big three are employing is to say “Look, our rates are in line with Verizon or better” and they hope that nobody looks anywhere else to see that rates in other places are cheaper than the US. Fortunately for Canadians, there are people out there who want to keep the big three honest.
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This entry was posted on August 20, 2013 at 7:42 am and is filed under Commentary with tags Canada, wireless. You can follow any responses to this entry through the RSS 2.0 feed.
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Report: Big 3 Telcos Cut Cell Prices Due To Verizon Threat
I guess just the mere mention of the name Verizon has accomplished something significant. The big three telcos are apparently cutting their rates to bring them in line with US carriers according to The Globe And Mail:
Canada’s big three wireless companies are competitive with U.S. rivals on pricing, The Globe found in an informal survey of the cheapest plans including at least 1 gigabyte of data. Verizon appears to be the priciest of all the major U.S. carriers and Canadian major carriers.
Plans with 1 GB are the most common, according to Rogers. Telus says most customers are in the 500 MB to 1 GB range. T-Mobile customers using the latest 4G smartphones typically consume an average of 2GB of data per month.
To illustrate their point, The Globe And Mail provided this handy info-graphic. One thing that you will notice immediately is that the big three are in lockstep with each other when it comes to pricing while in the US there appears to be a spread in terms of pricing which implies there is actual competition there unlike what appears to be the case in Canada.
Now, this is a good thing, don’t get me wrong. But Canada is still not rate competitive with the rest of the planet:
In the high volume use basket (which includes at least 1GB of data usage per month), the CRTC data, which includes the new wireless entrants as well as the incumbents, shows average monthly Canadian prices are lower than U.S. prices, but higher than prices found in the U.K., Australia and France.
“Neither U.S. nor Canada are models to be emulated – prices in some European countries for LTE-based data packages are significantly lower than in either of these North American countries.” said Martyn Roetter, an independent telecom analyst.
My guess is the strategy that the big three are employing is to say “Look, our rates are in line with Verizon or better” and they hope that nobody looks anywhere else to see that rates in other places are cheaper than the US. Fortunately for Canadians, there are people out there who want to keep the big three honest.
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This entry was posted on August 20, 2013 at 7:42 am and is filed under Commentary with tags Canada, wireless. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.