
08-21-2013 07:30 AM
By now we are all aware of the federal government policy inviting US giant Verizon to obtain a lion share of the Canadian telecom market at bargain prices at the expense of Canadian owned companies BCE, Telus and Rogers currently dominating the market.
BCE (Bell) has been very vocal on the subject: http://web.tmxmoney.com/article.php?newsid=61797553&qm_symbol=BCE
How do Canadians feel about the federal government policy?
Valve - You being retired from Bell and getting your pension cheques from them every month and your dividend cheques every three months, how does it feel to send $10 monthly to the Conservative Party ?
Now, most Canadians with a cellphone feel they pay too much and hope American competition will help reduce the monthly charge.
Reality check: a recent study commissioned by the Conservative federal government through Industry Canada and CRTC found:
For a plan including 450 incoming and outgoing minutes, voice mail and call display and 300 text messages per month, the cost was $44.86 in Canada. A similar plan in the U.S. cost $76.14 and $38.85 in Britain after adjusting for currency and the relative purchasing power of the Canadian dollar.
A plan including 1,200 incoming and outgoing minutes, 300 text messages and one gigabyte of data usage per month was $93.59 in Canada, $145.79 in the U.S. and $63.52 in Britain after currency adjustments.
08-21-2013 10:58 AM
I wonder if Verizon has offered Harper a position on their board once he retires.
There seems to be no gain for the average Canadian in this situation.
We will pay with loss of service in some areas, higher rates, job losses in the Canadian companies, etc., etc.
Why would Harper do such a thing? I can only think that there must be some personal gain for him.
Otherwise, it is just a brainless move.
I do think that we suffer from a lack of competition in the Canadian market and that price fixing is rampant.
But offering it up to a U.S. giant is just plain wrong.
08-21-2013 11:10 AM
08-21-2013 12:57 PM
"Valve - You being retired from Bell and getting your pension cheques from them every month and your dividend cheques every three months, how does it feel to send $10 monthly to the Conservative Party ?"
Feels OK, as you know 75% of ones donation is subtracted from the bottom line on your income tax return.
May be hard to change the policy when the likes of Target are allowed here or any other large conglomerate. Where do you draw the line.
08-21-2013 01:37 PM
"May be hard to change the policy when the likes of Target are allowed here or any other large conglomerate"
I think most Canadians agree Verizon should be allowed to come and compete here. That has never been the question.
The problem is the preferential treatment given to the American company at the expenses of the three Canadian companies.
http://web.tmxmoney.com/article.php?newsid=62193880&qm_symbol=BCE
08-21-2013 02:29 PM
More compitetion should translate into better prices.
The Canadian services claim that they paid for the current infrastructure.
They fail to mention that it was the money came from their customers.
08-21-2013 02:36 PM
"More compitetion should translate into better prices."
In theory that is correct. Economics 101
However, a quick look at what American providers charge their customers in the USA for the same service clearly shows higher prices in the USA. These American guys are in business to make money, not to provide better service at lower prices.
08-21-2013 03:32 PM
It is possible the Canadian servers will price aggressively to get rid of the new competition.
08-21-2013 05:31 PM
I think the average person has got themsleves in this situation. I guess it's just me, old school, that I have two cell phones and all they do is make and take calls. Cost for both together 52.34 a month. It's the internet and texting that seems to drive up the prices for many people I know. If cell phone servers were finding people were using their phones less then they would probably drop prices just to get them back. I don't see much change happening if US servers come to Canada. JMPO
08-21-2013 05:45 PM
"I wonder if Verizon has offered Harper a position on their board once he retires. "
Maybe, just maybe, he is planning a "Mulroney" (paper bags loaded with hundreds of thousands of (undeclared) cash) after he retires.
08-21-2013 06:09 PM
One thing that I know is that when I call for service.
The call taker has an accent.
08-21-2013 08:13 PM
I have one cell phone. It is the seniors special from Rogers. Costs me abut $15 a month. It only makes calls and texts - and I never text. In fact, I only turn the phone on when I want to make a call.
08-22-2013 08:42 AM
"I have one cell phone. It is the seniors special from Rogers. Costs me abut $15 a month. It only makes calls and texts - and I never text. In fact, I only turn the phone on when I want to make a call."
Puck, your cell need is about the same as mine. You should be able to get it cheaper. I buy a $100 per year top up and rarely use more than $30 of it before topping up again a year later. Of course I'm with Bell. The only thing I don't like about it is thay don't give me a 35% discount as they do on all other services I have with them. Aw, I feel so bad about that
08-22-2013 02:59 PM
"It came to me that every time I lose a dog they take a piece of my heart with them".
Buy a leash.
It will save you a lot of heart ache.
08-22-2013 06:11 PM
I think the potential preferential treatment being available to Verizon is kinda beside the point and insignificant.
If I remember correctly it is just that they would be allowed to purchase one or two tiny small Canadian operators. For obvious reasons, these small operators weren't able to be sold to the Canadian big three, because that would increase concentration of the market control rather than increase competition.
I'm guessing that the bundle examples from the CTV(Bell-owned) item are skewed. From what I've heard, Canadian rates are ridiculous compared to most other countries.
Also heard today that Canadian wireless cos. most profitable I believe in the world.
08-22-2013 07:10 PM
"beside the point and insignificant."
????
Have you looked at the huge amounts of money involved? Money coming from Canadians users.
"one or two tiny small Canadian operators"
???
Have you checked the amounts of money involved in those "tiny" operators?
The deal blocked by the federal government for one carrier was for $380,000,000 . Nothing "tiny" about it.
http://www.cbc.ca/news/business/story/2013/06/04/business-telecom-wireless.html
"Canadian rates are ridiculous compared to most other countries."
That is correct. See link in earlier post. Canadian rates are higher than most countries except for the USA where Verizon does business at higher rates. Think about it.
08-22-2013 07:19 PM
"Also heard today that Canadian wireless cos. most profitable I believe in the world."
Not sure where you hear your news but take a look at Verizon. Revenue US$ 118,000,000,000 (we are talking about billions here) Gross profit of over US$ 69,000,000,000 (billions again) Cash Flow over US$ 33,000,000,000 (billions again)
http://finance.yahoo.com/q/ks?s=VZ+Key+Statistics
Current market value: over US$ 134,000,000,000 (billions again)
Their annual profits are more than BCE, Telus, Rogers, combined.
By contract, the shares of the largest Canadian operators (BCE) have a capitalization (market value) of less than Cdn$33,000,000,000
http://web.tmxmoney.com/quote.php?qm_symbol=bce
I invite you to check Telus and Rogers and do the addition. Then compare to the American giant.
08-22-2013
08:08 PM
- last edited on
08-22-2013
11:47 PM
by
kh-leslie
@pierrelebel wrote:
By now we are all aware of the federal government policy inviting US giant Verizon to obtain a lion share of the Canadian telecom market at bargain prices at the expense of Canadian owned companies BCE, Telus and Rogers currently dominating the market.
BCE (Bell) has been very vocal on the subject: http://web.tmxmoney.com/article.php?newsid=61797553&qm_symbol=BCE
How do Canadians feel about the federal government policy?
Valve - You being retired from Bell and getting your pension cheques from them every month and your dividend cheques every three months, how does it feel to send $10 monthly to the Conservative Party ?
Now, most Canadians with a cellphone feel they pay too much and hope American competition will help reduce the monthly charge.
Reality check: a recent study commissioned by the Conservative federal government through Industry Canada and CRTC found:
For a plan including 450 incoming and outgoing minutes, voice mail and call display and 300 text messages per month, the cost was $44.86 in Canada. A similar plan in the U.S. cost $76.14 and $38.85 in Britain after adjusting for currency and the relative purchasing power of the Canadian dollar.
A plan including 1,200 incoming and outgoing minutes, 300 text messages and one gigabyte of data usage per month was $93.59 in Canada, $145.79 in the U.S. and $63.52 in Britain after currency adjustments.
The question is: What do you think of Harper's telecom policies?
What did you do before cell phone technology?
Nobody is forcing a cell phone on you. pay up or get out of the hot kitchen.
My 25th year with a cellphone. Much cheaper today then 25 years ago.
To boot I have cell phones on both sides of thew border.
W1
08-22-2013 08:14 PM
My daughters phone costs me 60 bucks a month,unlimited local calls,unlimited texts and photo texts and 3 gb of data.
W1
08-22-2013 09:16 PM
The above link shows revenue per customer is highest in the world in Canada. Also shows a very revealing table where our cell phone prices are the highest in the world with the possible exception of the U.S. The caution would be that the U.S. average revenue leaves plenty of room for numerous discount providers to be priced well below Canada's 3 providers.
The article below, where it states clearly that Canada's wireless providers are the most profitable in the world, is from 2010, which I didn't notice before. Anyway, I presume the situation is relatively similar.
http://www.cbc.ca/news/story/2010/07/19/canada-wireless-profit.html
As for the size of Verizon and its market value, that isn't an immediate issue. What you need to look at is the size of Wind Mobile and/or Mobilicity, which Verizon or another buyer might look at buying.
A foreign company is only allowed to control a Canadian provider as long as it has less than 10% of the market. According to the 2010 article, the big three control 95% of the Canadian market. It may have changed slightly, but I think it can be agreed that we're talking between 10 and what, maybe 2% of the Canadian market.
As I said, insignificant.