The IT Nerd

From there “big deal” department comes this announcement from The Canadian Wireless Telecommunications Association that they’ve decided to adopt a code of conduct:

“This new Code will ensure that customers have the information they need to make informed purchasing decisions,” said Bernard Lord, CWTA President & CEO. “It also safeguards their rights as customers and assures that their concerns are addressed.”

As for the “where’s the teeth” part of this:

Not only will the new Code safeguard the rights of consumers, but it will also serve as another resource available in the complaint resolution process by Canada’s Commissioner for Complaints for Telecommunications Services (CCTS). Unlike other jurisdictions that have developed wireless carrier conduct guidelines, such as in the US where the code is strictly voluntary, the Canadian Code will be backstopped by the third-party, independent CCTS.

“The CCTS was consulted during the comprehensive process of developing this new Code of Conduct,” said Mr. Lord. “And of course, it was the Government of Canada’s foresight in requesting the creation of the CCTS that will give the code its teeth in giving Canadian consumers confidence that wireless carriers will adhere to these high standards of service and transparency.”

Carriers that have signed on for this include Bell, Rogers, Telus, Videotron, MTS Allstream and Wind Mobile.

So, why am I so “meh” about this announcement? Simple. The customer service and the clarity of contracts for any Canadian cell phone providers not named Wind Mobile (as they aren’t in business yet) quite frankly sucks. While there is a complaints resolution process that is part of this, I really don’t think that this will do anything to change that. Perhaps the fact that I have come to expect so little from a cell phone provider is clouding my view of this? If Canadian cell phone companies want me to have a better opinion of them, here’s what I would suggest they do:

1. They should actually have quality customer service rather than the lame excuse for customer service that these companies have now. After all, I have had very few positive customer service experiences with these companies and a whole lot of negative ones. I don’t have to single out any one company as they are all like that. That needs to change in a hurry.
2. Get rid of bogus fees like the $6.95 System Access Fee that many of these cell phone companies love to charge and love to claim that it’s a government fee (which it is not).
3. Lower the rates that they charge as Canada has some of the highest cell phone rates in the world. After all, if more people can afford to have a cell phone because cell phone companies aren’t going out of their way to gouge consumers, then they’ll have more customers which will increase their average revenue per user. Seems really simple to me.

None of that will happen of course because these companies really only care about lining their pockets with cash and not with providing a service at a fair price with customer service that doesn’t make you want to pull your hair out every time you deal with them.

So, take this announcement and ignore it. It really doesn’t mean anything and it’s business as usual with Canadian cell phone companies. Of course they’re free to prove me wrong, but I’m betting that it’s not going to happen.

As if to underscore the need for competition in the cell phone space in Canada, this study appeared on The Globe And Mail website today. According to the OECD, Canadians pay some of the highest mobile phone rates in the Western world:

Those classed as medium users (making 780 calls, and sending or receiving 600 text messages and eight video messages per year) spent $500.63 (U.S.) per year on their cellphone packages on average. That’s third highest amongst OECD member countries, just behind Spain and well behind the United States, where users spent $635.85 per year.

Users in the Netherlands, Austria, and Scandinavian countries, by contrast, each spent less than $200 per year on average.

Hmmm….. I’ve heard this song and dance before.

This comes as no shock to Canadian cell phone users as I always hear about how expensive it is to have a cell phone from friends, customers, and associates. No wonder everybody I talk to is just waiting for competition to arrive in this market so that they can either switch over to a carrier that will bill them less, or they will force their existing carrier to give them a better deal. I’ve deliberately not agreed to a two or three year deal with Rogers on the phones that my wife and I own so that I can see what deals are available when competition finally arrives.

Of course, it would be nice if the existing cell phone carriers would recognize that this is a situation that needs to change and do something about it proactively. But I wasn’t born yesterday. They have to be forced to do so by having competition in the marketplace. Too bad that has to be the case as I really think that the first cell phone carrier that cuts their rates and got rid of the System Access Fee on their mainstream brands (rather than on their discount brands) for their existing customers would get a lot of positive press and be able to keep their customers from defecting to the competition.

Somehow, I don’t see that happening though. Which may be too bad for them.

Here’s a refreshing change from the usual idiots suspects in the Canadian cell phone marketplace. Globalive who hopes to launch a new national cell phone service next year has set up a website so that they can hear from you the consumer about what their new service should be like.

Wow. A cell company who (appears to) care about their potential customers. Perhaps they looked at the issues that Rogers (the iPhone), Bell (incoming text messaging charges) and Telus (incoming text messaging charges and screwing over their EVDO users by yanking their unlimited plans) have gotten themselves into and decided not to be like them. If so, that’s a great change from what Canadians are used to.

So far I am impressed. Hopefully these guys do something that nobody else has been able to do. Force Rogers, Bell, and Telus into a position where they have to compete. At the very least, there’s another option out there for consumers.

Good luck to Globalive!