PIAC asks CRTC to mandate occasional-use wireless plans

The CRTC should ensure telecoms offer plans for consumers who only need wireless service on an occasional basis, according to the Public Interest Advocacy Centre (PIAC). The consumer group filed a Part 1 application with the regulator asking it to direct telecoms to offer the plans in the same way as low-cost data-only plans. The application, dated April 13, follows a March decision in which the CRTC told Canadian wireless carriers they had to offer low-cost data plans and asked them to file proposals on how they plan to do so. PIAC asked for its application to be combined with that proceeding, which would give telecoms until April 23 to file proposals for both types of plans, and the public until May 23 to file interventions. The application said that Canadians “often rely on cellphones for occasional, low-volume use,” especially seniors. “Lowering pay-per use rates lowers the cost of an entry level phone plan, allowing persons who might otherwise be phoneless, like the homeless and children, to keep an active phone to contact friends, family, or social services on the occasions when they need to do so,” PIAC said, adding it would “also encourage adoption among persons with a low willingness to pay, like elderly persons with home phone service.” It said that there is a gap in the market for such services, with some carriers discontinuing them and others charging “excessive rates.” “Because pay-per-use service does not generate as much revenue as higher-end plans, service providers have a strong incentive to push customers towards higher revenue plans which may exceed the customer’s needs,” PIAC argued. It said the rates Canadians pay for occasional service are much higher than those in other countries, giving the example of a customer who uses their phone for 20 minutes a month. In that case, PIAC said they would pay $3.60 a year with KnowRoaming’s Tello Mobile in the U.S. or in the United Kingdom from Hutchison 3G UK Ltd.’s Three, and $60 a year if they had a typical Canadian $0.50/min prepaid pay-per-use plan.

PIAC asks CRTC to mandate occasional-use wireless plans

Brief | April 16, 2018

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PIAC asks CRTC to mandate occasional-use wireless plans

Brief | April 16, 2018

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