2023-09-29 08:30:00
In Canada, three giants share the telecommunications market: Bell, Telus and Rogers. Added Videotron in Quebec. The connection infrastructures belong to these large companies.
When a small independent supplier wants to use the infrastructure, it must pay to one of the colossi. In 2019, the CRTC reduced the wholesale price paid by small suppliers. But faced with pressure from the giants, it reversed prices in 2021 to bring them back to those of 2016.
“When the government wanted to make changes for more rivalry in the market, there was no coordination with the CRTC and the competition bureau. In Canada, the government ensures that companies make a profit. This sector has more power than anywhere else in the world,” protests John Lawford, director of the Center for Public Interest Advocacy.
What followed was a great wave of buyouts from independents. Recently, Rogers bought Shaw and Bell got its hands on Ebox. Result: at the moment, even if the consumer feels like they have a choice, there is no real competition in Canada and prices remain relatively high compared to those in other countries.
According to a study by the Finnish firm REWHELL, Canada is one of the most expensive countries in the world. A mobile plan costs 7 times more expensive in Canada than in Australia, 25 times more expensive than in France and 1000 times more expensive than in Finland.
“One solution would be to introduce a new player to Canada. We see it everywhere, when a new supplier appears, prices go down,” mentions the analyst at Option consommateurs, Me Alexandre Plourde.
However, telecommunications infrastructure is extremely expensive. Currently, the government requires new competitors to build duplicate infrastructure to serve customers, making it very difficult for a new business to emerge. “Even the big three companies don’t always build their own infrastructure: Bell and Telus share a large part of their network,” recalls Matt Hatfield, director of Campaign at OpenMedia.
“None of the big three are willing to sell access to their networks at fair prices to smaller competitors. In other countries, the government calculates a fair and cost-effective tariff for network access and enforces open access. That’s where you get widespread competition and choice,” he continues.
Loyalty not rewarded
The vast majority of Canadians have a cell phone and an internet connection. “In 2023, it is no longer a luxury. I need an internet connection and a cell phone for work, for life in general. It’s a service that is almost as essential now as electricity and running water,” emphasizes Me Plourde.
Unfortunately, even if they have been customers of a company for many years, consumers are far from getting the best price available on the market.
“You don’t need to negotiate with your electricity company to get a reasonable price. Netflix doesn’t secretly start offering new customers a much better rate than you have when you’re not paying attention. This shows the power that telecom companies have over us as consumers. And that’s something that should change. »
— Matt Hatfield, Campaign Director at OpenMedia
It is therefore up to consumers to do their homework and look at the prices offered both by their company for new customers and by competitors.
After several years with Rogers for cellular and Videotron for internet and television, André Coulombe decided to break up.
Mr. Coulombe had trouble finding his way around his Videotron bill. “It was becoming tiresome to manage the different discounts. I had to call every time when one was due to get the best price possible. And the bill was incomprehensible. In the end, we always paid more,” he explains.
When he received a proposal from Bell for an internet-television combo, Mr. Coulombe submitted it to Videotron. Mr. Coulombe paid $130. Bell’s offer: $97. “Videotron did not give me a real reduction,” he says.
A few weeks later, Mr. Coulombe also decided to review his family plan with Rogers.
“The payment for the cell phones came to an end and we became the owners. Rogers offered me a reduction of $24 for the three packages. The bill would go from $188 to $164. I found it a little high, especially since the charge for paying for our cell phones was much greater than the reduction subsequently granted,” he says.
Tips for saving
Before being with Videotron, André Coulombe was a Bell customer. “I swore that Bell would never come into my house again. It was always complicated with them. »
After reflection, Mr. Coulombe called Videotron to cancel. “At that point, Videotron no longer respected itself. They were willing to give me a bigger price drop. But for me it was too late and I decided to give Bell a second chance. »
For 24 months, Mr. Coulombe will be entitled to a reduction of $24 on the initial price of the Bell combo. It will also benefit from a better internet connection. “To date, things are going well, we will see over time if my bill is still the same and remains simple. »
For his cell phone, after studying the offers of three providers, Mr. Coulombe opted for Telus. Its total bill will rise to $117 with 25 GB for each user compared to 20 GB to be shared with Rogers.
Since Rogers was not receptive during his first call, Mr. Coulombe did not give him time to catch up after his shopping with the competition.
According to Matt Hatfield, the tips that worked 10 years ago no longer work as well. He advises first assessing your real needs. “Promotions can be interesting, but a consumer needs to look closely to avoid paying for a plan with features or data they don’t really need,” he shares.
John Lawford recommends keeping your cell phone longer.
“Companies are always looking to add fees to keep their customers, especially with those who are always looking to have the latest model. »
— John Lawford, director of the Center for Public Interest Advocacy
An opinion shared by Nadir Marcus Mechaiekh Simon, CEO of PlanHub, a web platform that analyzes and compares offers from different distributors. “Phones are so expensive that they now come with a rental offer. After two years, you have to pay the balance or return the phone,” he says.
“These phones are refurbished. There are great savings to be made by buying a refurbished phone,” he adds.
And for travelers, the founder of PlanHub and Simbud recommends an eSim card which allows access to data at prices much lower than a roaming package.
Key times to shop
For internet:
– Back to School
– Moving
For cell phone:
— Black Friday
— Noël
— Spring Break
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