For those who are reading this blog from someplace other than Canada, the CRTC is having hearings this week in an attempt to come up with a code of conduct for cell phone carriers in Canada. They feel that this is needed because of the fact that Canadian consumers feel that wireless carriers are taking advantage of Canadians by having long contracts and phones that are locked to a single carrier among other things. The CBC has a good write up on this topic.
So what do I think of these hearings? Not much really. Don’t get me wrong. Creating rules, boundaries, and limitations around how cell phone carriers behave is a start. But I’ve said it many times before and I’ll say it again. What’s needed is competition and competition of the Orange, T-Mobile, or Vodafone sort. If one of those carriers comes into this market and sets up shop, Rogers, Bell and Telus will change how they do business so fast that you’d get whiplash. None of what the CRTC is holding hearings over would happen if there was real competition. Thus the way to solve the problem is to let some competition in.
Hey IT Nerd! What Do You Think Of The CRTC Bringing In New Rules For Wireless Companies?
Posted in Commentary with tags Canada, CRTC, wireless on June 4, 2013 by itnerdThis clearly is a hot topic as five people asked me this question yesterday. But let me recap. The CRTC yesterday announced new rules for wireless carriers. Now there are good things and bad things about this. Here’s the good:
Here’s the bad news. If a carrier breaks those rules, they can expect to pay a fine of $5000 per occurrence. If you find that to be absurdly low amount, you’re right. After all, the three big carriers make hundreds of millions of dollars. A few thousand dollars means nothing. That’s the cost of business for Telus, Bell, and Rogers.
As for increasing competition, the jury is out on that. With the ability to switch carriers after 2 years and the ability to unlock phones, it may make things a bit better. My feeling is that true competition will only come when a deep pocketed foreign carrier sets up shop in Canada and rapidly builds a nationwide infrastructure. That will make wireless service affordable. Having said that, this is a start. But it’s only a start.
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