Government's effort to publicize Big 3 cell service prices isn't driving them down, advocates say

Publishing the costof majorwireless companies' cellphoneservicesisn't making those services any cheaper, affordability advocates say.

This week, the federal government released its first evercellphone price tracker report, which shows there has been little movement in prices since the Liberals promised to reduce the cost of cellphone services by 25 per cent.

The tracker shows thatmost of the provinces surveyed didn't see a reduction in cell service costs between February and June2020. Quebec a market with a high degree ofcompetition among cellphone services was the only province to report a decline in prices.

"It's really a good example of how these companies don't want to be held to account," said Laura Tribe,executive director of Open Media, an organization that advocates for internet access."The prices haven't come down.There really hasn't been any change."

The Liberals' last election platform included a promise toreduce wireless prices by 25 per cent. After winning a second mandate, the Liberals committed to releasing quarterly pricing updates for plans that allow consumers to use their own devices, offer unlimited talk and text and provide users withbetween 2 and 6 gigabytes of data.

Tribe and other critics of the government's strategy say the way Ottawais collecting pricing data from the Big 3 wireless companies Rogers, Telus and Bell is flawed because it only examines the prices of their discount brands (Fido, Koodoand Virgin) andlower-gigabyte plans.

'It was impossible for them to succeed

4 years ago

Duration 2:03

Laura Tribe, the executive director of Open Media, said the way Ottawa is collecting pricing data from the Big 3 wireless companies Rogers, Telus and Bell is flawed because it only examines the prices of their discount brands (Fido, Koodo and Virgin) and lower-gigabyte plans.

"In the way that the government choose to go about this process, it was impossible for them to succeed," Tribe said."By picking specific plans and saying these plans are going to fall in price, [it] left a huge loophole for the companies to say if we don't offer these plans, you can't measure if our prices are coming down."

The Liberals have set a target of reducingrates by 2022. John Lawford isexecutive director of the Public Interest Advocacy Centre, which acts on behalf of consumers. He said heisn't convinced that goal will be met in a meaningful way unless the government forces the Big 3 to lower their prices through regulation.

"This whole exercise is a bit of a political effort to demonstrate that the government cares about consumer cell phone pricing," Lawford said."But it is a hard area to actually create value unless the big companies want to play ball.And they don't voluntarily play ball."

'They must meet these targets' Bains

Science and Industry MinisterNavdeep Bains insisted the governmentwill end upreducing cellphone rates and said he is prepared to use the federal government's regulatory power to drive down prices if necessary.

"They must meet these targets," Bains told CBC News. "Failing to do so, we will look at all regulatory tools at our disposal to promote further competition for us to see prices come down."

Bains has said in the past those regulatory "tools" could include compelling the Big Three to open up their infrastructure to other companies that can provide virtual cell phone networks at cheaper rates.

While heacknowledged the report only covers lower-gigabyte plans, Bains saida reduction in the prices ofsome plans should have an impact on pricing across the board.

Bains suggested the pandemicmay have discouraged cell companies from dropping their pricesas they prioritized maintaining their infrastructure during a period of unprecedented internet use.

Samer Bishay is the CEO of Ice Wireless, a small wireless firm. He saida pandemic when a great many people are under heavy financial pressure is exactly the right time to ramp up pressure on large wireless firms to cut their prices.

"Now more than ever, Canadians need to save money," he said. "During a pandemic, you need choice and affordability."

'Now more than ever Canadians need to save money'

4 years ago

Duration 0:37

Samer Bishay is the CEO of Ice Wireless, a small wireless firm. He said a pandemic when a great many people are under heavy financial pressure is exactly the right time to ramp up pressure on large wireless firms to cut their prices.

We've made 'tremendous efforts,' says industry group

The Canadian Wireless Telecommunications Association, which represents Rogers and Bell, said Canada's legacy wireless providers have made "tremendous efforts" to keep Canadians connected during the pandemic. The CWTA also said the cost of data has decreased over the last five years by 50 per cent, and by 25 to30 per centbetween May and September of last year.

"Our members will continue to compete vigorously to provide Canadians more value and affordable choice," CWTAspokesperson Greg Burch said in a media statement.

Telus, which is not a member of the CWTA, said in a statement its brand Public Mobile offers 2-gigabyteand 4-gigabyte plans that surpass the government's pricing benchmark.