: Rogers claims wireless cheaper in Canada than U.S.
from press release issued today.
Rogers today submitted its reply comments to Industry Canada regarding the AWS Auction policy. Rogers stands firm on its position that the mobile wireless industry is the most dynamic segment of the Canadian telecommunications market.
Highlights of Rogers' comments include findings from a new pricing study conducted by Analysys Consulting (1) entitled "Talk is cheap in Canada" demonstrating that the current wireless system in this country delivers great value to Canadians. In most cases, a Rogers subscriber pays 29% - 35% less in Canada for their wireless service, than if they bought the same service in the United States.
"This study proves our position that Canadians are getting great pricing and value for their wireless services", said Ted Rogers, CEO Rogers Communications Inc. "We continue to welcome new competition on fair and equitable terms, no subsidies, no set asides, no government intervention. To claim that incentives are required to assist new entrants to participate in the auction process is ridiculous and flies in the face of any reasonable analysis of the market."
1. "Talk is cheap in Canada: an inter-country comparison of mobile wireless prices: Report for Rogers Communications", Analysys, June 25, 2007
Anybody seen this report?
2007-06-27, 02:39 PM
Amazing how the company that pays for the report always benefits. :)
"For further information: or a copy of the study please contact: Taanta
Gupta, Vice President, Communications, Rogers Communications Inc., (416)
935-4727, email@example.com; Liz Hamilton, Director, Communications,
Rogers Wireless, (416) 935-8710, firstname.lastname@example.org"
I have contacted them and asked for a copy.
2007-06-27, 07:56 PM
Do the price comparisons in the report include "SAF" and taxes? I'm not familiar at all with US providers, but a plan advertised as $20/month in Canada, ends up costing over $30!!
And show me a plan from ANY Canadian provider that includes 350 minutes (long distance or local) along with UNLIMITED data....all for $66.00CDN ($59.99US) a la the iPhone.
Sorry Mr. Rogers.....you ain't even in the order of magnitude. Very sad :(.
2007-06-28, 11:45 AM
Voice plans in Canada are generally cheaper for local calling than they are in the US. If you want huge plans with tons of minutes, or you need long distance calling, US plans are cheaper, but few cellular users need these plans.
Data is another kettle of fish. Canadian data rates are obnoxious.
US prepaid rates seem to be a lot better than Canadian prepaid rates - cheap enough that I have two US prepaid phones even though I'm rarely there.
I haven't read the study yet but I reviewed it but here are some excerpts from a quick review
Here is what we found for four typical types of Canadian mobile subscribers:
• Low usage subscribers (370 minutes per month) would pay CAD48 per month in Canada. In the US the same subscriber would pay CAD71 – 47% more than in Canada.
• Medium usage subscribers (744 minutes per month) would pay CAD54 per month in Canada. In the US the same subscriber would pay CAD76 – 40% more than in Canada.
• High usage subscribers (1050 minutes per month) would pay CAD81 per month in Canada. In the US the same subscriber would pay CAD70 – 14% less than in Canada.
Family plan subscribers, on a package containing two lines and a typical usage split evenly between those two lines (344 minutes per month per line) would pay CAD33 per month. In the US the same subscriber would pay CAD51 – 55% higher than in Canada.
According to this study a low usage subscriber in the U.S would pay $71 CDN, a medium usage would pay $76 CDN and a high usage sub would pay $70 CDN. Now does that make sense to you?
Ted says 29% to 35% less in the U.S. but look at the high usage. Its cheaper in the U.S. so what is he talking about???
2007-06-28, 10:23 PM
What year was this done in? Exchange rate anyone?
Also, I wonder if this includes the recent rate hikes that Rogers has implemented in the PAYGo department...
2007-06-30, 12:53 PM
If ever we needed an example of "nothing lies like statistics" we could use this one. The three major wireless providers in Canada are lobbying government furiously in advance of the upcoming spectrum auction and trying to show that Canadian prices are fair is part of the strategy, along with all those fastest, most powerful, clearest, etc. network advertisements.
Given the range of service plans - prepaid and postpaid - it's nearly impossible to draw definitive conclusions about prices. The US may be more expensive but may include LD calls (a friend moving back to Canada after 8 years in the USA was surprised that wireless here does not consider all of North America a local call). But then, not every user travels so much that (s)he wants to subsidise those who make lots of LD calls and is happy to pay the LD charge the few times a year it is used. Fido made a good business with plans that made any call outside of the Montreal, Toronto and Vancouver city cores premium calls, even though they were well within wireline local calling areas.
Shopping for the plan and features that meet your calling patterns and budget is, IMHO, a more productive use of time than worrying about what customers are paying in some other country. e.g did you know that toothpaste and CDs are more expensive in the USA than Canada (same friend always stocked up when he visited here)? But it's not worth switching countries over. Happy Canada Day! :D
2007-07-01, 09:14 PM
Also worth noting is on some plans you can roll over your unused minutes to the next month, any plans in Canada offer that? Not that I've heard of.
2007-07-01, 09:54 PM
There sure are. I have an auto-top-up plan with Rogers Pay As You Go which rolls-over any unused time as well as provides a discount on all calls. I doubt this option is unique to Rogers.