Quit Your Tweeting Over UBB Challenge the Teleco Monopolies

While thousands of Canadians blogged, tweeted and set up internet petitions about the CRTC's User Based Billing (UBB) decision this week, methinks they protest too much, or at least have missed the real issue. As Michael Geist points out; The widespread use of bandwidth caps in Canada is a function of a highly concentrated market where a handful of ISPs control so much of the market.

The fact is that the Canadian marketplace is dominated by oligopolies; the big Telco's and Cable operators. They already overcharge us for cell phone use as well as internet access. You are already getting gouged even before the CRTC ruling!

Canada’s largest telecoms don’t want to say how much it costs to deliver a gigabyte of bandwidth and have refused to disclose such data, arguing that information is both proprietary and competitively sensitive. They also argue that it’s difficult to calculate the specific cost of delivering bandwidth since the cost varies based on the technology being used, the user’s location and the time of day.

Read more: http://business.financialpost.com/2011/02/05/how-much-does-bandwidth-actually-cost/#ixzz1DCl3hPBl

Of course they don't because as studies have shown we are charged more for our use of these "public utilities" then any other countries. And the reason is that these oligopolies make a profit off of service charges.

It’s 2010 and Canadians pay the highest cell phone bills in the world

Surveying more that 50 developed and developing countries where information is available, one country comes out on top when it comes to the most revenue extracted per subscriber on a monthly basis. And that country is of course Canada. What you are looking at here are the world rankings of mobile ARPU (Average Revenue per User). To you and me ARPU is your monthly bill, before GST/PST/HST etc. (through taxes and high spectrum license fees, our government is culprit here too)

This data is total bill including both voice and data. Canada does not have the highest proportion of data to voice charges though data usage in Canada is growing fast (we’re finally catching up after a late roll-out of 3G compared to many countries). Interestingly, Canadians are estimate to pay slightly less per minute of voice (10 cents vs 11 cents) on average than our nearest neightbour the U.S.. What is really driving bills in Canada over the top are the egregious fees like system access fees (the fees many plans still pay whether you access the system or not in a month), and especially “value pack” fees like 15$ a month for the luxury of call display and handful of voice mails

Now remember when they say that they have legacy costs, those costs are transmission lines, satellite connections, etc. Things that we the taxpayers have invested in. Telus was originally a government of Alberta phone company and it bought our city owned telco; Edmonton Telephones. So its legacy costs are the direct result of being a public utility. The Canadian government satellite program is used by telecos to transmit GPS signals, as well as broadband and mobile phone transmissions. So how come we get charged as if these companies had actually spent some money on this infrastructure.


Instead of protesting over UBB folks should be pissed off that the telecos and cable companies are gouging us using our public airwaves, and our legacy infrastructure and then charging us for it. The right wing likes to talk about how competiton will decrease prices, but that is not the case when the market is dominated by oligopolies who set base prices. While some would say its time for the CRTC to go, I would contend that since there is little interest in nationalization of these public utilities, that we direct the CRTC to set real rates based on the global market prices. Our protests should be over the costs we are charged not for usage but for service fees. Service fees should be eliminated, just as ATM and Bank charges should be.

Belus?

That's what the Globe and Mail is calling the idea of the merger between Telus and Bell (BCE).

In this latest poll you find that those of us who have experienced Telus are opposed to the merger for the reasons I have given here and here.

The Angus Reid poll found that 48 per cent of Canadians believe the government shouldn't permit a merger between Vancouver-based Telus and Montreal-based BCE. Another 27 per cent supported it, while 25 per cent weren't sure.

The highest levels of opposition to such a deal came from British Columbia and Alberta at 57 per cent and 61 per cent, respectively. "What surprised us the most is the high level of skepticism from Alberta and B.C., where virtually everyone deals with Telus on a daily basis," Mr. Canseco said.

If such a merger were to go through, 62 per cent of the poll's respondents didn't expect better customer service. Moreover, 68 per cent said it's somewhat or very likely wireless rates would increase, while 62 per cent said the same thing for Internet prices.

See:

Monopoly Capitalism in Cyberspace

Telus

BCE

CRTC

Bernier

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Ding Dong Tories

Even if it meant protecting Canadians who elected them from being subjected to a communications monopoly, the likelihood that the privatizing Conservatives, whose love of big business is expressed my its Industry Minister , would do anything like interfere in the market well ferget about it. Canada telecoms merger up to regulators: Harper

A consumer advocate warned Thursday that a proposed $50-billion merger between Bell Canada Inc. and Telus Corp. would be a loser for customers of the two telecom giants.

"The government and the regulators should simply turn down this merger," said Charles Tanguay, communications manager for Quebec's Union des Consommateurs. "This is critical because it would weaken competition in both the traditional wireline and wireless markets and expose consumers to continuing high prices and second-rate services."

Canadian consumers already pay almost twice the average per-minute charged in the U.S. and Europe and the market has too few players, Tanguay noted.

"A monopoly would be worse than today's duopoly, influence regulated markets unduly and freeze out new entrants."

See:

Monopoly Capitalism in Cyberspace

Telus

BCE

CRTC

Bernier

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How Do You Spell Monopoly

T E L U S. The former publicly owned phone company of the Province of Alberta was created because Bell Canada would not expand into Alberta at the beginning of last century.

The Edmonton Phone Company. EdTel, was formed because neither Alberta Government Telephones, AGT, nor Bell Canada would provide services to Edmonton. Over a decade ago it was sold off at a fire sale price by the city to its old nemesis the predatory AGT now privatized and called TELUS.

It was announced that the privatized Telus, which now includes Ed Tel as well as B.C. Tel, is preparing a take over bid of Bell Canada; BCE. How the wheel turns.

All this privatization of public enterprises was to end their 'state monopoly' and create 'competition'. So instead it creates privatized monopoly and reduces competition.

We are so much better off now. Except we sold the farm and now we buy back our milk and eggs.

See:

Monopoly Capitalism in Cyberspace

Telus

BCE

CRTC

Bernier

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CRTC vs The Public Interest

The CRTC was created to protect the interests of citizens today it protects the interests of telcos and communications media oligopolies in Canada.

The former monopolies can now vary rates among customers depending on where they live, and other factors. The companies had asked for permission to vary rates, in order to help them compete with cable rivals such as Rogers Communications Inc., that face no restrictions when they offer local service.

Companies such as Rogers will have about 18 per cent of Canadian telephone customers by the end of the year, according to a report by Convergence Consulting Group Ltd. that was released this month.

Stuart Langford, the sole CRTC commissioner to dissent, said the ruling removes any consumer protection except for clients who subscribe to the most basic service. "Incumbent phone companies can charge whatever they like; the sky's the limit," he wrote. "Consumers are left with two choices: pay or do without."

Monday's ruling will remove any incentive for new entrants to compete with the former monopolies, now that the CRTC "has given incumbent phone companies so much power to crush competition before it even gets started," Langford said.

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