Consumer groups push mandated low-cost data plans in wireless review

Consumer advocacy groups are urging the CRTC to require incumbent wireless providers to make low-cost data plans a condition of operation in the latest round of submissions to the regulator’s review of the mobile wireless industry. The Coalition for Cheaper Wireless Services (CCWS), the Canadian Internet Policy and Public Interest Clinic (CIPPIC) and OpenMedia filed additional comments in a second round of interventions preceding the regulator’s wireless review hearing early next year, suggesting the CRTC order a mandatory set of low-cost data plans despite the CRTC’s direction to the big three incumbents last year to propose and put in place more affordable options in the market. Last year, the CRTC ordered BCE Inc., Rogers Communications Inc., and Telus Corp. to introduce low-cost data plans in lieu of mandating MVNO access to their networks. The advocates are now asking the CRTC to force wireless providers to offer low-cost plans that offer more data for less money than those plans that are already available in the market. The CCWS had already put forward such a proposal in May, but CIPPIC’s and OpenMedia’s joint submission focused its attention on mandating MVNOs. However, CIPPIC and OpenMedia cite the proposal by CCWS as effective. The CCWS is asking for unlimited Canada-wide voice and texting as well as 4 GB per month of data at 4G LTE speeds with no data overage charges for $25 to $30 per month on postpaid. The program would be limited to low- and fixed-income households, it added. The Public Interest Advocacy Centre (PIAC), which is part of the CCWS, previously criticized the low-cost data proposals of the incumbents, which ranged from $15 for 250 MB to $30 for 1 GB of monthly data in pre- and postpaid flavours on both 3G and LTE on their flanker brands. CIPPIC/OpenMedia, which cite a recent ReWheel report that found Canadians pay amongst the highest prices in the world per gigabyte, proposed unlimited voice, SMS and 4 GB per month on the primary provider’s 4G LTE network, no overage and roam like at home nationwide for a fixed monthly cost of $20 to $30. “The 4GB data allotment may be sufficient as a low cost offering based on today’s data needs, but these needs are rapidly evolving,” the joint submission read. While previous studies found Canadians consume under 2 GB per month on average, the introduction this summer of no-overage data plans by the incumbents have induced a surge in data usage. According to Rogers, it is as high as 50 per cent more. On Monday, the Competition Bureau said in its latest comments for the review that it found Canadians weren’t reaping the full benefits of competition in the market, despite the benefits of added competition from regional players like Quebecor Inc.’s Videotron and Shaw Communications Inc.’s Freedom, which offered its own low-cost data plans despite not being asked to by the regulator. The bureau recommended the commission adopt a five-year program where it would allow MVNO access to incumbent networks, in an effort to stimulate investment into their own networks. The model is somewhat similar to one proposed by Cogeco Inc. Dubbed the Hybrid Mobile Network Operator, that scheme would allow MVNOs to lease infrastructure from the incumbent on the condition that they plow the revenues into their own networks. The company reiterated in the latest round of comments that this would be the best way forward. Prior to the roll-out of the low-cost data plans, Bell and Videotron launched new flanker brands, Lucky Mobile and Fizz, respectively, to draw customers into the discount service market. The bureau said at the conclusion of its review of the broadband market that mandated wholesale access to incumbents’ networks benefited consumers. But since the low-cost data roll-out, a number of developments have occurred that are cited by the incumbents as reasons for the CRTC denying the need for MVNO access. Principal among them is the launch this summer of no-overage data plans, which swap overage charges for slower network speeds when customers go over their monthly allotment. Parties have until January 13, 2020, the date of the hearing, to respond to the Competition Bureau’s economic studies, and have until March 23, 2020 for final submissions.

Consumer groups push mandated low-cost data plans in wireless review

Brief | November 26, 2019

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Consumer groups push mandated low-cost data plans in wireless review

Brief | November 26, 2019

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