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Canadian wireless market hopelessly behind rest of the world due to lack of competition
Tuesday, May 27, 2008 - 03:34 PM EST

"Last week's announcement that the Apple iPhone will make its long-awaited Canadian debut later this year generated considerable excitement. While analysts focused on the bottom line impact for Rogers Wireless, it may be that the most important effects have already been felt in Canada, since more than any industry statistics or speeches, the iPhone's slow entry into Canada has crystallized the view that the Canadian wireless market is hopelessly behind the rest of the world with limited competition, higher prices, and less choice," Michael Geist writes for Canada.com.

"The year-long delay of the iPhone -- Apple first launched the device last June in the United States followed by France, Britain, Germany, Ireland and Austria -- provided tangible evidence that the Canadian market desperately needs an injection of competition (as the sole GSM provider, Rogers was the only carrier capable of supporting the iPhone) and more competitive pricing (Canadian data prices are far above the U.S. offer of unlimited data for $20 per month)," Geist writes.

"In many ways, the iPhone saga merely confirmed what many Canadian consumers and businesses have known for some time. Mobile data pricing in Canada is among the highest in the world, creating a significant barrier to the introduction of new mobile services and causing many consumers to carefully ration their mobile use for fear of being hit with a hefty bill at the end of the month," Geist writes.

"Canadian iPhone fans may finally get their coveted device, but it is going to take more than a great phone to fix what ails the Canadian mobile marketplace," Geist writes.

Full article here.

[Thanks to MacDailyNews Reader "MacVicta" for the heads up.]

MacDailyNews Take: Exactly.


Rogers to offer Apple iPhone exclusively in Canada - January 25, 2007
Report: Rogers Communications to offer Apple iPhone in Canada - January 11, 2007

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May 27, 08 - 02:38 pm Comment from: Guessing

Its all aboot the iPhone, for sure...

May 27, 08 - 02:45 pm Comment from: Spark

Oh, Canada.

May 27, 08 - 02:47 pm Comment from: Bill in Providence

Thank goodness for Canada. Otherwise we gringos would have the worst mobile phone system in the world.

May 27, 08 - 02:57 pm Comment from: Mac+

This is sad, very very sad.

May 27, 08 - 03:01 pm Comment from: Demon

Every Canadian with a cell phone will tell you that the service in Canada sucks and that Roger's price gouges everything. The Canadian cell phone system is so outdated, backward and just overpriced that it's not worth having a cell phone unless you absolutely need one.

May 27, 08 - 03:01 pm Comment from: ron

Those high phone taxes have to pay for the "Free" health care.

Canada - Upper US.

May 27, 08 - 03:11 pm Comment from: ron bait

@ron "Those high phone taxes have to pay for the "Free" health care."

you sir are clueless....

May 27, 08 - 03:14 pm Comment from: MikeR

Anyone reading here who has a iPhone with at&t;? I'm just wondering how much it costs per month to receive email and check the internet, and oh, make a few calls with an iPhone. I've got 4 phones with unlimited text messages (two teenagers) with t-mobile for about $130. a month.

May 27, 08 - 03:14 pm Comment from: HueyLong

@ron:

More than clueless, plain stupid comment.

May 27, 08 - 03:16 pm Comment from: hilken

The problem with Canada is that the land is huge and we're only 30M people to support it. No company is in an urge to enter our market and front millions of dollars just to develop a network that will take decades to pay off...

If we were 10 times the population (as in the US), then I'm sure we'd have a healthier competition .

May 27, 08 - 03:18 pm Comment from: HueyLong

@Bill in Providence:

Now, that's funny! And oh so true

May 27, 08 - 03:21 pm Comment from: McIntosh

As far as I know, Canadians still pay long-distance charges in addition to their minutes if they make, well, a long-distance call (just like on a landline). This has always been the case, and it really influenced how I thought about mobile connectedness when I had a Cdn cell phone. So imagine my shock when I first moved here two years ago; I could hardly believe that I could call Seattle from Florida for the same rate as calling across the street. And people complain here about oppressive U.S. service providers! Not me : ) I will absolutely never turn my back on Apple, if for nothing more than showing me what technological progress in the 21st century should look like.

May 27, 08 - 03:21 pm Comment from: Jennifer

Mike R.,

Via MDN: AT&T;and Apple announce service plans for iPhone starting at $59.99 per month

May 27, 08 - 03:23 pm Comment from: Jeff

Ron, it is not hight phone taxes that kill us it is the Ted Rogers needs a new mansion Tax that kills us. I have Rogers Cable, Internet, and basic Cell service and my bill is over $200 a month, and there is still nothing to watch on TV.

Can any one tell me why G4 Tech TV is not in High Def on Rogers? If you look at the audience we are the most likley to have High Def TVs.

May 27, 08 - 03:25 pm Comment from: Ampar

MikeR:

What Jennifer said. Or you can go here too:

http://www.apple.com/iphone/easysetup/rateplans.html

May 27, 08 - 03:26 pm Comment from: Ampar

"and my bill is over $200 a month"

Holy crap.

May 27, 08 - 03:27 pm Comment from: Jeff

@hilken that statement is so irrelevant for the Cell Phone industry, it is not like Cell Phones in Canada cover the entire country, they cherry pick the most populated sections and only provide spotty service in those areas.

May 27, 08 - 03:27 pm Comment from: John B

@Jeff, "and there is still nothing to watch on TV."

What about Trailer Park Boys?

May 27, 08 - 03:28 pm Comment from: Ampar

"If we were 10 times the population (as in the US), then I'm sure we'd have a healthier competition."


Then you'd better get busy.

May 27, 08 - 03:29 pm Comment from: McIntosh

Oops, I should've added a line break before the last line in my earlier post...would've made the thought a little less mixed up. : /

In any case, I hope that competition enters the Great White North. Data users aren't all on Blackberries, after all.

May 27, 08 - 03:30 pm Comment from: Wish I Was Here

I have an iPhone on AT&T;, and my bill is $66 and change every month.

May 27, 08 - 03:31 pm Comment from: hilken

@Jeff

But still, our population is still small compared to the US, or even France.

May 27, 08 - 03:32 pm Comment from: MikeR

@Jennifer
Thank you!

May 27, 08 - 03:35 pm Comment from: MikeR

@Wish I Was Here
Thank you. Users usually more realistic than the website.

May 27, 08 - 03:39 pm Comment from: MCCFR

And once again ron displays his characteristic lack of understanding of how things work based on several years of believing Rush Limbaugh to be a genuine political commentator.

What Canada is experiencing is a GSM monopoly based on the following…

• it is a large, sparsely populated country with a topgraphy that is probably relatively unsympathetic to cellular mobile

• because of it's historic ties to the US phone system and that market's protectionist attitude to technologies not invented in the USA, nearly all of Canada's mobile carriers are attached to CDMA as opposed to GSM.

• a recent report suggested that the costs being presented to Telus' board to migrate to GSM were around $500 million, which is about $26 for every Canadian mobile user and around $95 for every one of their current customers.

Maybe ron can come up with an unassailable business case, given that he's such a genius: maybe Telus would benefit from such a move, but - on the other hand - what if one of the other operators also went GSM and now you've invested $500 m and simply created a commercial environment with more opportunities for customer churn.

Over to you, ron.

May 27, 08 - 03:40 pm Comment from: coolfactor

Basic Nokia cell phone on Rogers. Don't use up all of my minutes (300 per month), and unlimited data that I *never* use since the browser is so crappy.

$80 per month.

May 27, 08 - 03:44 pm Comment from: bizlaw

@MikeR

I have an iPhone in the U.S. on AT&T;(of course). The data plan is $20 per month, which is unlimited email, web surfing, etc. My monthly bill is about $130, because I chose a higher monthly minute plan and we have three other phones on the family plan ($10/month each).

May 27, 08 - 03:47 pm Comment from: Viktor

I really don't think there could be a more expensive network than "America Movil" or more specific, Telcel or any other mexican carrier.

May 27, 08 - 03:59 pm Comment from: toonie

Could be a saving grace depending on how you look at it.

Amazing how important a tiny little brick has become to many people. Many people spend all their time talking into it, looking at it and playing with it and their sense of self-worth seems to be defined by it.

I run a web business and amazingly, I don't need data or email or photos or special widgets to run a successful business. Despite all the hype, there's really not much that can't wait which is the same as it's always been.

Most of what passes for necessity is just distraction.

May 27, 08 - 04:20 pm Comment from: His Shadow

Demon

Every Canadian with a cell phone will tell you that the service in Canada sucks


Unless you are with Bell in Alberta and the service is stellar. Bars everywhere except the backwoods.

Unless you mean customer service. Some of the a-holes up here try to charge you to receive text messages.

May 27, 08 - 04:29 pm Comment from: mike k.

this topic has been beaten to death:

- Rogers is a hateful company and so is Bell
- even though the US and Canada are right next to each other on the map they do not have the same demographics and so they cannot be really be compared
- ron is a douche

May 27, 08 - 04:34 pm Comment from: Bob Mackenzie

So, like, what if a moose, like, eats your phone while you're cooking up some back bacon, eh ? Do you get stuck for, like, roaming charges ?

Oo wo coo coo, oo wo coo coo.

May 27, 08 - 05:00 pm Comment from: Jimbo von Winskinheimer

@toonie,

No one "needs" an iPhone. In fact, most people don't "need" a computer either. The iPhone has improved my life and has given me the ability to use a real browser as opposed to those on other phones.

You say you run a web business. I don't know if you mean that your business is on the web, or if it means you build web pages. At any rate, I find your thoughts on mobile web use to be odd. You are a person that tells us your business is on the web, but then says that it doesn't matter if you have instant access to stuff.

If all others felt the same way you did, you could go out of business. They could just go into a store rather than shop from home. "Who needs to shop on the web???" Or, if you are a web designer, they might ask "Who needs a web page anyway???"

I would think that a person whose own business relies on accessing the internet might be a bit more interested in ways for people to access said business.

Odd indeed.

May 27, 08 - 05:03 pm Comment from: Buster

Ladies and Gentlemen, we have a consensus.

Ron is a moron of the nth degree.

Anyone know which town in the US has lost its village idiot?

May 27, 08 - 05:10 pm Comment from: Buster

@Bob McKenzie

Hoser, you just get the beast to toss back a two-four and some Ex-Lax. The gas buildup will make it, like, pass a liquid-gas mixture.
That will, you know, fire that phone out of the chute like Celine Dion after a large poutine and a pogo.

That means no roamin charges but Rogers will, like, send you some foamin charges.

May 27, 08 - 05:50 pm Comment from: MCCFR

Buster…

The worryng thing is that - if queried - ron claims to be an émigré from the UK who the US, of it's own free will and volition, allowed into the country at some point in the Seventies (could be Sixties, but I'm working from memory).

I know there's no bar on stupidity on getting into public office on either side of the Atlantic, but surely one of the solutions would be stop people like ron from entering your country in the first place and dragging down the collective IQ. Poor and huddled masses is all very well, but it doesn't say anything about having the intelligence of rhubarb.

May 27, 08 - 06:20 pm Comment from: MacMaster

@His Shadow wrote
Every Canadian with a cell phone will tell you that the service in Canada sucks

Unless you are with Bell in Alberta and the service is stellar.

You're either an Albertan or a clueless dispshit, likely both if you're an Albertan. I get two separate cable boxes, all the channels on TV (there is still nothing to watch) satellite radio, high speed wireless internet, unlimited (I mean completely unlimited) land line and cell phone long distance for $100/month and I've never had a dropped call or been in an area where I couldn't use my cell. That's from SaskTel (and I can hear the pissing and moaning now about it having a monoply but they don't). It's the best deal I've come across, better than Bell, Telus, Sprint when they were around, Rogers and Shaw (those bastards) so blow it out your arse. Fscking Albertans, arrogant pricks.

May 27, 08 - 06:43 pm Comment from: Swing Geezer

@MacMaster

Don't tell me. You're a little bitter towards Albertans. grin

Frankly, I think Ted Rogers tried to hold Steve's feet to the fire with no success and then realized that he was just cutting off his nose to spite his face.

May 27, 08 - 06:46 pm Comment from: @MacMaster

I'm sorry, was there a point to that? I've had stellar service on my cell from Bell. Did I say anything about prices or tried to guess what cable receiver you have sitting in your trailer? Get over yourself, fvcktard.

May 27, 08 - 06:52 pm Comment from: jonricmd

Seems like this would have been an opportunity for someone to start up a new cellular network. Could have started small, in just the major metropolitan areas in the eastern half of the country with iPhone exclusivity and rapidly gained enough customers to be sustainable & profitable. Does anyone remember the cellular networks here in the USA 20 years ago? It was only in the big cities. Now you can almost assume that it is everywhere you go (except for sparsely populated areas out west).

May 27, 08 - 07:01 pm Comment from: MacMaster

@ His Shadow

No point really, just love winding you guys up like tops. Everything"s always better in Alberta isn't it. Get over yourself as well, fscktardhttp://www.macdailynews.com/images/smileys/grin.gif

May 27, 08 - 07:42 pm Comment from: 84 Mac Guy

I think I now understand why our Canuck friends like beer and hockey. Either they need to drink a two-four of Molsons or get hit in the head with a puck to forget how they are getting jacked by Rogers, eh.

May 27, 08 - 08:52 pm Comment from: ron

Canada is still uppa US. With a Sicilian accent.

May 27, 08 - 09:28 pm Comment from: Al

90% of all Canadians live within 60 miles of the lower USA border. While the US/Canada border is long, it wouldn't cost that much to cover 80 to 90% of the population and the major roads between the population centers.

That is what Rogers has done. That is why, if you work outside of that populated zone and you want an iPhone, you need a second, CDMA phone and contract.

I have a Telus cell phone and I have never had a major problem with coverage. The long distance anywhere in Canada and USA rates are about twice the American rates. Data prices are just plain prohibitive and I charge clients $50 per day for communications.

May 27, 08 - 10:28 pm Comment from: Buster

@MCCFR
Hopefully you didn't think my country was the US. Its not. If I lived in the US, they would jail me for b*tch-slapping him silly. In Canada, I get a free two-four and season two of the Red-Geen show.

Oh and Ron? In Canada we can spell...even with a Sicilian accent. You sure put the B back in dumB.

May 27, 08 - 10:50 pm Comment from: ron

Uppa US Buster.

May 28, 08 - 12:19 am Comment from: BL5

@Al

er, "within 60 miles of the lower USA border..." would be, like, Mexico, dude.

May 28, 08 - 02:51 am Comment from: Canada - not so nice

Canada has cities like all other countries and thats where most cell phone users live.
The demographics are the same as anywhere.

There is NO excuse but greed for the fucking mess that Rogers call a cell phone service.

I pay $400 a month for two phones 1200 minutes and 500 mb of data, to Rogers so I can use my iPhone.

I really dont like rogers.

May 28, 08 - 06:20 am Comment from: Mac_ATTY

Speaking of AT&T;'s rate plans... does anyone know if you can sign up for the $99 Unlimited minutes plan and add a line to it? In other words, $99 Unlimited rate plan for iPhone, then add 4 other phones to it for family members?

@ MikeR: I have an iPhone Plan with 1350min/mon @ 79.99 + 20 unlimited data + 20 unlimited text ~ $130/mo. I never exceed the 1350 min/mo so I have over 3000 roll-over mins... so I have practically unlimited mins.

May 28, 08 - 08:59 am Comment from: Mark Holoubek

Auction anyone?

I find it amazing that no one has commented on the wireless auction and the impact it had on both forcing Rogers to make a deal with Apple and hopefully on more competition:

http://www.cbc.ca/technology/story/2008/05/26/tech-spectrum.html

May 29, 08 - 02:33 am Comment from: Happy to help

@ BL5 - You are geographically challenged, stop embarrassing yourself online.

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