Bell to focus on declining mobile service prices in MVNO review

Ahead of the CRTC’s wireless review early next year, and on the heels of a report showing Canada is among the highest-priced jurisdictions in the world for data, BCE Inc. executives on Thursday focused on the declining cost of data to push the point that regulatory intervention is unnecessary for competition. On a conference call with analysts, incoming Bell CEO Mirko Bibic pointed to reports from the CRTC and Statistics Canada -- both of which highlighted falling mobile wireless prices -- to suggest that the company will focus on that aspect when it heads into the CRTC’s review of its wireless policy, which could usher in the era of mandatory access for mobile virtual network operators (MVNOs). “We all know just from our price plans...whether it’s Bell or Virgin, that the data prices per gig have dropped dramatically over the last three or four years,” Bibic said following the release of the company’s third quarter report. “And that’s without factoring in the price impacts of unlimited plans. So on pricing, huge movement being delivered by facilities-based competitors across the country -- that’s a compelling fact.” The StatCan report from August showed wireless prices were trending downward, while a CRTC report from the same month showed telecom prices were also on the same declining slope. But executives didn’t mention a more recent report by Finland-based consulting company Rewheel which, while also finding declining prices, found that that was the trend in other parts of the world as well. Despite declining rates -- in this case, a measure based on the cost per gigabyte -- the report still placed Canada among the most expensive countries in the world for wireless prices. That downward trend has been fueled by the introduction by the big players of no-overage data plans this summer, which slow data speeds down once customers reach their data caps rather than charge them extra. Last week, Rogers Communications Inc. reported that data consumption increased 50 per cent since the introduction of the plans, which also drove down its financials in its own third quarter report. Big telecoms have often questioned independent research reports that put them in a less favourable light compared to other jurisdictions when it comes to telecom pricing. On Thursday, outgoing Bell CEO George Cope pointed to the strength of a four-player industry to show that the country, even compared to others, will be competitive. South of the border, T-Mobile US Inc. and Sprint Corp. are edging closer to merging, which would decrease the number of big wireless players to three. “The Canadian government and the CRTC policy directives have the concept that network infrastructure is critical to the country,” Cope said. “We have four wireless infrastructure providers, possibly by the end of this year more than the United States has -- if there’s a merger -- and we’re all on the cusp of 5G builds. “The balance is correct, that will be the position, and I’m highly confident the government will see that appropriately given the competitive outcomes in the marketplace that we’re seeing.” The review of mobile wireless services will be held in February. For the three months ending Sept. 30, wireless revenues were up for the company in the quarter by 3.5 per cent to roughly $2.4 billion, on the strength of 127,172 new postpaid subscribers in the quarter, a six per cent decrease from the same period last year. It also saw a jump in prepaid additions by 81 per cent to 76,895. The total wireless base sits at 9.8 million. Wireline revenues were flat in the quarter at $3 billion. New internet subscribers in the quarter were up 9.4 per cent, or 58,137, compared to 53,122 it added last year, for a base total of 3.5 million. The company also added fewer IPTV subscribers, at 31,746, this quarter compared to last (40,091). Satellite TV subscribers losses were flat at 26,904 this quarter compared to the same period last year. The total TV base sat at roughly 2.8 million. The media division grew 2.7 per cent to $751 million. The quarterly results were released a day after Bell Media announced a deal with AT&T's WarnerMedia for programming that, in the United States, will be part of its upcoming HBO Max streaming service. Bell already has the rights to HBO content in Canada. Total revenues were up 1.8 per cent over last year to roughly $6 billion, with net earnings up 6.3 per cent to $922 million. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Bell to focus on declining mobile service prices in MVNO review

Broadcast | October 31, 2019

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Bell to focus on declining mobile service prices in MVNO review

Broadcast | October 31, 2019

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

Telecoms testing their networks for the future of quantum connectivity

Telus’ arguments for incumbent access to wholesale regime not supported by competitors

Bell won’t participate in subsidized broadband projects if wholesale access for Big Three continues, signs agreement with CNOC

Rogers’ purchase of Bell’s MLSE stake not being challenged by Competition Bureau ‘at this time’

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us