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CRTC chair says it's hard to sustain low wireless, internet prices in long term

  • Last Updated:
  • Jun 26th, 2021 10:03 pm

Poll: Do you agree with CRTC chairman Ian Scott comments?

  • Total votes: 168. You have voted on this poll.
Yes
 
16
10%
No
 
152
90%
[OP]
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Jun 20, 2020
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CRTC chair says it's hard to sustain low wireless, internet prices in long term

The Canadian Press
Thursday, May 20, 2021


It's agreed that Canadians should pay less for wireless and internet services but it's difficult to keep prices low for long without investing in networks, CRTC chairman Ian Scott said Thursday.

Scott, who heads Canada's federal telecommunications regulator, said retail prices could go down faster if internet and wireless service resellers just paid to use somebody else's networks.

But countries that have a lot of resellers tend to see service quality fall and consumer prices rise again in the longer term as rivals cut their profit margins to unsustainable lows to win customers, Scott said.

"And that doesn't really give us confidence that there will be sustainable competition in the future," Scott said.

On the other hand, he said, when a company invests in the infrastructure needed to provide those services, those assets don't go away "if the firm were to disappear, so to speak."

"And it creates an opportunity for someone else to acquire those facilities, and perhaps they'll enter the market with a lower unit costs, and have a stronger ability to compete."

Continued at https://www.nationalnewswatch.com/2021/ ... long-term/
37 replies
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He's the former Telus VP, so take that into consideration.
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Dhanushan wrote: The Canadian Press
Thursday, May 20, 2021


It's agreed that Canadians should pay less for wireless and internet services but it's difficult to keep prices low for long without investing in networks, CRTC chairman Ian Scott said Thursday.

Scott, who heads Canada's federal telecommunications regulator, said retail prices could go down faster if internet and wireless service resellers just paid to use somebody else's networks.

But countries that have a lot of resellers tend to see service quality fall and consumer prices rise again in the longer term as rivals cut their profit margins to unsustainable lows to win customers, Scott said.

"And that doesn't really give us confidence that there will be sustainable competition in the future," Scott said.

On the other hand, he said, when a company invests in the infrastructure needed to provide those services, those assets don't go away "if the firm were to disappear, so to speak."

"And it creates an opportunity for someone else to acquire those facilities, and perhaps they'll enter the market with a lower unit costs, and have a stronger ability to compete."

Continued at https://www.nationalnewswatch.com/2021/ ... long-term/
It is due to our population and big area, vs, US. & Europe.
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ml88888888 wrote: It is due to our population and big area, vs, US. & Europe.
Actually, I'm pretty sure they say out population is more concentrated than the USA, as most of us are very near the USA border, whereas people are more spread out over the USA.
It's pretty well known that we have limited competition, and they collude together and have their former VP's appointed to our regulator.
I'm not sure if it's still the case but 5+ years ago it was cheaper for someone from the USA to use their phone here than us.
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Replace "prices" with "profits". That goof needs to get hit by a flying wheel on the highway, maybe that will knock some sense into him.
engineered wrote: Actually, I'm pretty sure they say out population is more concentrated than the USA, as most of us are very near the USA border, whereas people are more spread out over the USA.
It's pretty well known that we have limited competition, and they collude together and have their former VP's appointed to our regulator.
I'm not sure if it's still the case but 5+ years ago it was cheaper for someone from the USA to use their phone here than us.
I remember my Grandma's phone from Poland would roam with full features and data here for pennies on the dollar, I was shocked at how cheap it was. Our telecom industry is a sad yet highly profitable joke.
Last edited by M1K3Z0R on May 30th, 2021 10:31 am, edited 1 time in total.
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A few years ago it was $45 for 100 minutes of talk and 1-2GB of data. Instead of continuing to offer that plan at a more affordable price, they jack up the talk to unlimited and increase the data allowance to ever larger amounts, and the price is still $45. I don't need unlimited talk and don't need all of that data either. If someone still offered 100 minutes and 1.5GB/month for < $20 like you can get in any other country, I'd be all over it. But nope, this is of course Canada, so I just have to dream on.
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Those dividends sure are slim, genius :rolleyes:
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Not to worry, a future conservative government will give telcos lots of taxpayer dollars, watch prices rise, give more taxpayer dollars then claim its the Libs fault.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
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CRTC is in bed with the Big Telecoms. Pretty much useless and haven't done anything promised.
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If the company I worked for said, "We're raising prices so we can invest in upgrades," our clients would tell us to F off.
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Quentin5 wrote: Those dividends sure are slim, genius :rolleyes:
This. The amount of money thrown off, even after a bunch of bloated overhead tells the story.
The real winners are the telco executives and their shareholders.
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So sick of this stupid telecom mafia song and dance routine being played over and over.
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We really need strong conflict of interest laws. How are ex-telco employees allowed to serve in the regulatory bodies?
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Ya conflict of interests and borderline illegal. The CRTC is useless, pretty much a front for the big telecoms to continue to charge crazy prices for services that are sub-par at best.
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Fox guarding the hen house.
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canadian companies just love to rip canadians off
...
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It's hard only because the CRTC is in bed with the big telcos so the temptation to raise prices with impunity is too high.

Don't listen to this crook.
[OP]
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Calls for federal government to reverse decision on internet wholesale rates, fire CRTC head
Small telecoms and opposition parties pressured the Liberal government to overturn what one group called the CRTC’s 'most anti-consumer decision on record'

https://montrealgazette.com/news/politi ... -crtc-head
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Dhanushan wrote: The Canadian Press
Thursday, May 20, 2021


It's agreed that Canadians should pay less for wireless and internet services but it's difficult to keep prices low for long without investing in networks, CRTC chairman Ian Scott said Thursday.

Scott, who heads Canada's federal telecommunications regulator, said retail prices could go down faster if internet and wireless service resellers just paid to use somebody else's networks.

But countries that have a lot of resellers tend to see service quality fall and consumer prices rise again in the longer term as rivals cut their profit margins to unsustainable lows to win customers, Scott said.

"And that doesn't really give us confidence that there will be sustainable competition in the future," Scott said.

On the other hand, he said, when a company invests in the infrastructure needed to provide those services, those assets don't go away "if the firm were to disappear, so to speak."

"And it creates an opportunity for someone else to acquire those facilities, and perhaps they'll enter the market with a lower unit costs, and have a stronger ability to compete."

Continued at https://www.nationalnewswatch.com/2021/ ... long-term/
he's absolutely correct as well. That's why leaches like teksavvy have done nothing other than get rich making money on the spread between mandated low rates and sky high rates they charge customers with zero investments in building their own network.

fttn and fiber connections are stupid expensive to install and put in especially without guaranteed usage from consumer, if companies like the big telcos have to spend Billions on infrastructure and then forced to resell at mandated prices to TPIA who then undercut them, why would they upgrade especially in a quick manner before slowing down if not stop at all and see if it makes economic sense.

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