Incumbents seek little change in domestic data roaming tariffs

The domestic roaming rates for voice and text services BCE Inc., Rogers Communications Inc. and Telus Corp. have asked the CRTC to implement are significantly lower than what they currently charge smaller carriers, while the prices the incumbents suggested for data roaming are largely in line with tariffs that are already in effect, and even slightly higher in the case of Bell and Rogers. The companies filed their proposed tariffs and supporting cost studies Monday, as part of the CRTC’s process to determine how much the three large wireless providers can charge smaller carriers for domestic roaming — rates it said it would begin regulating in its decision on the wholesale wireless services proceeding in May. At the time, it also said the incumbents couldn’t increase the interim rates they charge until the final tariffs are in place. Those rates had been capped at the retail price by federal legislation. In documents filed this week with the CRTC, Bell suggested a final roaming rate of 3.11 cents per minute for calls, 0.1 cent per text message and 3.55 cents per megabyte for data. The interim rate, according to a filing the company made earlier this month, is 7.7 cents for voice, 0.9 cent per text and 3.3 cents per MB. Telus suggested final tariffs of 3.23 cents per voice minute, 0.1979 cent per text message and 3.773 cents for every MB of data, compared to the 9.5 cents per minute of voice, 1.1 cents for a text message and 4.7 cents per MB. Rogers’ suggested final rates were significantly lower than its competitors. It asked for 1.16 cents per voice minute, 0.0013 cent per text message and 2.52 cents per MB of data. Currently, it charges 5.4 cents per minute of voice, 1.42 cents per text and 2.51 cents per MB for data. The CRTC said last year that average industry-wide rates, based on figures from six companies, including the incumbents plus Manitoba Telecom Services Inc., Saskatchewan Telecommunications Holding Corp. and TBayTel Inc., were 8.1 cents per minute for voice, 1.1 cents per text message and 3.7 cents per MB for data. When it sets the tariffs, the CRTC will establish separate rates for each company rather than imposing the same rate for all three incumbents. The companies’ suggested tariffs all included a 40 per cent markup on costs, which they argued is consistent with the markup the CRTC approved in previous decisions, including the wholesale wireline rates it set in 2011. “This mark-up rate is consistent with past Commission decisions that a mark-up not only include a reasonable allocation of fixed and common costs but a risk premium associated with these types of investments and an adequate return to shareholders who bear this risk. As a result, an appropriate mark-up is necessary to ensure that there is compensation for these components,” Telus said in its submission. “High-speed wireline broadband and mobile broadband have similar risk structures and thus should be afforded the same mark-up.” Bell said that the amount of roaming on its networks by companies eligible for tariff-based services “experienced significant growth in 2015 as new entrants joined our network to roam for the first time. As such, we have greatly increased the estimates of Tariff Roaming use of our network in 2016 and continue to expect even further growth in 2017.” Interested parties have about a month to file interventions on the proposals. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Derek Abma at dabma@thewirereport.ca

Incumbents seek little change in domestic data roaming tariffs

News | November 25, 2015

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Incumbents seek little change in domestic data roaming tariffs

News | November 25, 2015

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