Scotia Capital released a report this morning called Canadian Wireless Myths and Facts.
We believe the facts support that Canada has a healthy wireless industry that benefits both consumers and carriers. We think it is time for the regulators to declare victory on the policies they adopted five years ago.
Contact Scotia for a copy. [Update: The Scotia Capital report can be found here]
In a series of tweets, I highlighted the top 10.
Myth 1: Cdn wireless prices are higher than US. Fact: smartphone plans are actually cheaper in Canada than US #SCCWMaF #CDNtech
— Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #2: 3-yr contracts make Cdn plans less attractiveFact: Cdn plans cheaper than US even after adjust for cost for 3yr contract.#SCCWMaF — Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #3: Three-year contracts trap Canadians and should be banned Fact: Canadian churn rates similar to AT&T and Verizon #SCCWMaF #CDNtech — Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #4: Canadian incumbents haven’t been affected by new entrantsFact: Since 2008, voice ARPU has declined almost 30% #SCCWMaF #CDNtech
— Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #5: Higher data ARPU is due to higher pricesFact: Data ARPU growth driven solely by smartphone penetration#SCCWMaF #CDNtech
— Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #6: Canadian carriers charge more for data than the USFact: slight differences mainly due to smartphone penetration.#SCCWMaF #CDNtech — Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #7: Canada behind with low wireless penetrationFact: Canada: high smartphone adopt than US. Canada growth outpace US#SCCWMaF #CDNtech — Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #8: Canadian wireless margins are highest in worldFact: VZW wireless EBITDA margin 47%, above Rogers, TELUS at 46%#SCCWMaF #CDNtech
— Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #9: Canada lags in wireless technology adoptionFact: Canada has higher cumulative 4GLTE coverage than the US.#SCCWMaF #CDNtech
— Mark Goldberg (@Mark_Goldberg) March 7, 2013
Myth #10: Canadian wireless incumbents under-investFact: Canadian wireless incumbents invested as much as US carriers.#SCCWMaF #CDNtech
— Mark Goldberg (@Mark_Goldberg) March 7, 2013
I encourage you to get a copy of the 14 page report and see the basis of these assertions.
Pingback: Fact vs. fromage: mythbusting Canada’s wireless industry | TELUS Blog
And I encourage you to read Michael Geist’s (the Canada Research Chair of Internet and E-commerce Law at the University of Ottawa) rebuttal of the Scotia Capital Report.
http://www.michaelgeist.ca/content/view/6803/125/