Here are two new reports that make for important reading.
First, Scotiabank Equity Research has released an update of its March report, called “Canadian Wireless Myths and Facts 2.0”.
Here are some of the highlights.
Myth 2.1: VZW will bring cheaper wireless prices to Canada.
Fact: VZW’s prices in the United States for data share plans are on par to 10% more expensive than the new equivalent Canadian two-year shareable data plansMyth 2.2: The Canadian regulators are helping consumers by lowering prices and increasing choices.
Fact: By introducing the Wireless Code, the CRTC has caused carriers to raise monthly smartphone prices by 9%-19% over the past few weeks and have caused the carriers to remove the three-year contract option.Myth 2.3: Industry Canada is pro-fourth operator in every region.
Fact: The “old” fourth operators are not going to get any help from Industry Canada.Myth 2.4: Canadian regulator and consumer advocacy groups believe Verizon will bring sustainable competition to the Canadian wireless market.
Fact: Even VZ does not believe the current Canadian wireless policy will bring sustainable competition.
Contact Scotiabank for a copy of the full report.
In Scotia’s support for its myth 2.4, there was a link to a report (“Spectrum Auctions Around the World” – Full report [pdf]) from US lobby group Mobile Future. The release for that report says:
In Canada and several European countries, restrictive and preferential policies intended to encourage market entry distorted the auction process and were unsuccessful in expanding the number of sustainable competitors in the marketplace. Initial changes in the competitive landscape were proved fleeting as market forces drove a return to pre-auction market structure with the same number of, or fewer, national competitors.
What makes the report especially newsworthy is that the membership of Mobile Future includes global heavyweights such as Cisco, Ericsson and Qualcomm as well as AT&T and Verizon.
Both of these reports are important contributions to the current wireless policy discussions in Canada.
Mark
There’s a piece in the FP Comment section of today’s National Post written by Mark Colgate who is Associate Dean and Professor in Service Excellence at the Gustavsen School of Business at the University of Victoria entitled “Verizon a Bad Bet” that, in my humble opinion, is damn good and goes one better than Scotiabank Equity Research’s report. It deserves a good read and very careful consideration.
Colgate, who has taught and researched the field of customer service internationally for 21 years, states that in terms of customer service “Verizon is years behind the progress of some Canadian carriers” and goes on to cite some examples. He goes on to say “Canadian consumers already have access to cheaper, fairer and more transparent pricing ( than Verizon’s) and likely better service than what Verizon offers”. He concludes his piece by saying, “When you consider all the points above, it makes you wonder if the government will actually achieve their intended result, or make matters worse”. All I can say is WOW!!!!
Here’s the link to Colgate’s piece.
https://business.financialpost.com/opinion/why-verizon-is-a-bad-bet-for-canada