Today’s post is going to be getting into the mathematics of telecommunications.<\/p>\n
For years, a number of so-called industry analysts have had trouble with the concept that wireless rates are coming down, but monthly bills are going up. Maybe we need more precision in the way terms are used, consistently. The language is important.<\/p>\n
For clarity, I think most of us view a “bill” as the total amount we pay. Rates refer to the prices for\u00a0the things on that bill. The two are related, but comparisons are only meaningful if the number of things being bought are considered.<\/p>\n
In telecommunications, rates have declined over time, but monthly bills are, in many cases, going up. More of us are buying more stuff. We have added data plans, or increased the speeds and data volumes. Our voice plans include more features, better roaming, more long distance. In most cases, we are buying more, precisely because the relative value proposition has improved for the things we are buying: the prices are lower and we see more utility from these capabilities.<\/p>\n
While that may seem obvious, there was confusion about bills versus rates in a Twitter response to a Globe and Mail story (“SaskTel says regional wireless carriers overlooked in federal policy<\/a>“) from Industry Canada’s spokesman:<\/p>\n