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Verizon already having an impact on Canada’s wireless service

Anonymous69

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As you all have heard by now. The federal government is giving Verizon some kind of tax breaks to come here. Rogers, Bell and Telus is crying Wolf. Putting full page ads in the papers and on the radio. Looks like competition is working. Now if only something we can do with the LCBO monopoly, well that will be another future threat to discuss.


[h=2]Canadians need look no further than new data-sharing plans that made their debut this summer in what is generally seen as a response by Canadian wireless companies to the looming threat of competition from the U.S. telecom giant.[/h]
Rogers, Telus and Bell now all offer data-sharing plans that allow mobile phone and tablet users in a household to share one data package with a set amount of monthly data usage to do things like surf the Internet.

MONTREAL—Even though it has yet to confirm it is coming to Canada, Verizon is already having a major influence on the cellphone market here.

Canadians need look no further than new data-sharing plans that made their debut this summer in what is generally seen as a response by Canadian wireless companies to the looming threat of competition from the U.S. telecom giant.

Rogers (TSX:RCI.B), Telus (TSX:T) and Bell (TSX:BCE) now all offer data-sharing plans that allow mobile phone and tablet users in a household to share one data package with a set amount of monthly data usage to do things like surf the Internet.


Related:

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· Verizon responds to Nader

· Industry Minister James Moore denies 'courting' Verizon

Telecom analyst Iain Grant said the response to Verizon’s potential move into the Canadian market has made the major telecoms “sharpen their pencils and start giving Canadians better deals.”

“This all came about mostly as the spectre of Verizon looming over the Canadian market place,” said Grant, managing director of the SeaBoard Group. “In the U.S., they’ve recognized many accounts, many households and (given) them a data-sharing plan.”

Big carrier Verizon, which has about 100 million subscribers, has been offering shared data plans for more than a year and other major carriers such as AT&T and Sprint have followed suit.

There were predictions earlier this summer that Verizon was considering entering the Canadian market when it reportedly made an initial offer for Wind Mobile and started talks with Mobilicity, two smaller wireless companies.

But there have been reports recently that Verizon is putting off a potential acquisition of new players and may only participate in the January 2014 auction for wireless spectrum, which will see telecom companies bidding on radio waves needed to make cellphone networks operate.

Meanwhile, the introduction of two-year contracts brings Canada in line with most other countries. The big three carriers have launched them for the important back-to-school and holiday seasons as they move consumers away from three-year contracts in advance of new rules set by the CRTC, Canada’s telecommunications watchdog, that take effect on Dec. 2.

Three-year cellphone contracts were a hot-button issue for many Canadians, who complained to the CRTC that they were locked into the contracts for too long and missed the launch of upgrades for new smartphones.

Telus CEO Darren Entwistle noted the two-year price plans his company has launched are similar to what Verizon offers in the U.S. market and might not mean prices will go lower if Verizon comes to Canada.

“So I think it’s less likely that there’s going to be a price war,” Entwistle said recently.

Analyst Troy Crandall said shared data plans on multiple smartphones and tablets would most benefit households with three or more members, but they would have to make sure they didn’t go over their monthly data limit.

Crandall noted, however, that with a two-year contract, both the amount consumers pay up front for their device and monthly rates have risen slightly.

“I would take all of these prices (offered) as being suggested prices and everything is negotiable,” said Crandall, of investment firm MacDougall, MacDougall and MacTier in Montreal.

Telus said that, with a family of four, the new prices would see parents pay $55 each a month for the latest iPhone, children charged $35 each for their mobile phones, and the family receiving features such as unlimited talking and texting.

Adding a tablet to the plan would cost $10 a month, while the cost of a three-gigabyte data plan would be $50. The total monthly bill would be approximately $240, instead of five separate bills under its two-year “SharePlus” plans.

Telus said savings would depend on what the family had previously subscribed to.

Rogers spokeswoman Patricia Trott said the increase in the average monthly plan ranges from $5 to $15 on a two-year contract. The $15 includes the addition of Canada-wide long distance talk and text, she said.

Consumers are now paying off their smartphones over two years instead of three and that means the price goes up, she said.

“When you do the calculation, the pricing has to go up per month if you’re going to make up for the cost of the phone. The cost of the phone doesn’t change,” Trott said.

For example, an iPhone 5 costs $699. Telus is asking consumers to put down $199 on the phone, comparable to Verizon or AT&T, up from $179, said Brent Johnston, president of mobility solutions at Telus (TSX:T).

That leaves a balance of $500 over 24 months, which works out to $20.83 — a monthly increase of $6.40, he said.

Bell’s Claire Gillies said subsidies to help buy smartphones have always been important to consumers.

“It’s been our findings over 28-some years of our history that customers have chosen a lower upfront price and preferred to pay a little bit more each month as a model,” said Gillies, vice-president of marketing campaigns at Bell (TSX:BCE).

https://www.thestar.com/business/pe...ng_an_impact_on_canadas_wireless_service.html


 
I like competition. Yes why is the LCBO allowed to be a monopoly in a democratic Country is beyond believe.
 
I say let them come in and fight for their territory. I win win situation for us.
 
Yup, let them and others come. If Bell, Rogers & Telus truly believe in the products that they put out, there is no reason why they should be nervous about competition. The only reason why they are trying so hard to block competition is because they know they are gouging the customers right now and can get away with it cause they are all in bed together.
 
Casa_Nova said:
Yup, let them and others come. If Bell, Rogers & Telus truly believe in the products that they put out, there is no reason why they should be nervous about competition. The only reason why they are trying so hard to block competition is because they know they are gouging the customers right now and can get away with it cause they are all in bed together.

Agreed 100%.

Let the gouching end.
 
Boing said:
Yes, can anyone answer why the LCBO is a monopoly in Ontario?.

the same reason the Canadian Ballet has a stripper pole on the stage. :unknw::unknw:
 
Bell, Telus and Rogers can go suck a bag of dicks. The PR campaign they are foisting on Canada is a whitewash of utter bullshit. They have raped the Canadian consumers dry for decades and they are scared shitless of seeing the golden goose getting threatened by an actual player. I hate all 3 of them.
 
Has been confirmed by their CEO. They are not coming and guess which 3 company stocks have risen since the announcement?.
 
The big three makes such a big fuss whenever they feel threatened. It also doesn't help that they own most of the towers and their competitions need to leverage usage of them just to do business in Canada. I'm sure once they've crunched the numbers that it probably wasn't worth their while.
 
The big three makes such a big fuss whenever they feel threatened. It also doesn't help that they own most of the towers and their competitions need to leverage usage of them just to do business in Canada. I'm sure once they've crunched the numbers that it probably wasn't worth their while.

The fact they do own the towers is what rubs me the wrong way. If I built an infrastructure for my business it would really burn my ass to be told by anyone I have to empower a competitor with it. How would you or anyone feel if you were told the homeless person holding a placard by the 401 exit will now have access to your living room because you only have been using it when you have company.
 
I don't disagree...but it's not like they don't get anything out of it. I'm sure they make good money out of others using their towers.
 
I don't disagree...but it's not like they don't get anything out of it. I'm sure they make good money out of others using their towers.

Still given the choice I don't think they would share their infrastructure same way I wouldn't want to be forced to share my home even if I could charge rent. I'd kill any man that touched my fridge uninvited and let's not even talk about going into my cantina!:aggressive2:
 
Still given the choice I don't think they would share their infrastructure same way I wouldn't want to be forced to share my home even if I could charge rent. I'd kill any man that touched my fridge uninvited and let's not even talk about going into my cantina!:aggressive2:

well you are a heavy sleeper and you are out of milk
 
As an industry insider, I was at first all for Vz coming into Canada. As many have mentioned, the price gouging, the incompetence, the interior cost cutting making the customer suffer through hours of transfers and getting very little help in return is something I feel needs to stop.

To boot, my own company (one of the big three) has added premium tech support while scaling actual support to an embarassing minimum. I could justify paying more, if I was getting more service in the process. But unless you have trouble with connectivity or the OS, you get foisted over to the premium, fee-based support: email setup and troubleshooting, back ups, how-to's, bluetooth integration... none of it is in scope of regular Tech Support. Even that they can't do correctly, for the most part. The training one gets as a new-hire now is barely adequate, and many techs who have been working have no tech background, nor do they understand the technology they are to support. And of course, part of the workforce you speak to (around 40%) is outsourced. The outsourced techs are even worse.

Add the usual call-centre bullshit of keeping metrics to an absurd minimum, and then you have even the knowledgeable people being forced to give you the wrong answer, or transfer you, in order to keep their jobs.

There is nothing wrong with making a workforce more efficient, but when your mandate is to cut costs and maximise quarterly profits, then you lose long term.

So yeah, our dislike for Canadian telcos is justified. I actively tell people not to sign up with my company.

However

Given the current trend of America spying on its own people through their telcos, do we really want an American company servicing Canadians? That gives me pause.
 
Good points DB and yes service wise the big 3 all suck! You have to plan an hour out of your day if you're going to call in, it's a pain in the ass.
 
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