Canada Worse than 3rd World Countries when it comes to Mobile Data Access

Travesty of Canadian Mobile Carriers

The motto of the CRTC, Canada’s telcom regulator is “Communications in the Public Interest”. Right.

If you live in Canada, write to your MP. The CRTC, as an institution, needs to be taken out and shot.*

This chart charts the best rates available from all carriers. And all levels of government say that “ICT” competitiveness is key factor in Canada’s future economic
prosperity. Ya. Right. I would like to say that Canada is a 3rd world country when it comes to Mobile ICT, except you can clearly see from this chart that even *Rwanda* has orders of magnitude better Mobile Data service than Canada.

As I’ve noted in the chart, 500MB is about 100 minutes of usage at a Canadian Carrier’s maximum (advertised) download speed of 700kB/s (your mileage will vary, International carriers are typically twice or four times faster). 500MB is not a lot of data in the grand scheme of things, a few GB could make a better example but in that case the red bars would be completely off the charts.

If you don’t live in Canada but you or your small business depends on mobile connectivity or net neutrality in general, don’t come here.

If see these numbers makes you mad, then Digg this article and spread the word on your site.

(and leave a comment, what is mobile service like where you live? why do you think mobile data is important?)

Here is the complete data table including data speed and Caps for each of the services listed. You’ll notice Canadian carriers lag substantially in every category.

see also on this blog: Bell to charge you $3600 per hour for Wireless Internet access. (the situation has not changed in a while)

supporting links:
www.vodafone.co.nz/pricing_plans/broadband.jsp?st=ourserv…
www.t-mobile.com/shop/plans/default.aspx
powervision.sprint.com/mobilebroadband/plans/index.html
www.terracom.rw/services/internet/evdo/pricing.php
www.telstra.com.au/business/products/internetanddata/mobi…
www.telusmobility.com/on/business_solutions/connect_megab…
www.bell.ca/shop/en_CA_AB/Sme.Sol.Wireless.Internet.Plans…
www.fido.ca/portal/en/domore/options.shtml
www.shoprogers.com/business/wireless/plans_services/busin…

*not literally of course, we are Canadian after all. (the CRTC is the Canadian regulator for radio, television, and telecomumnications). Here’s the Canadian Telecommunications Act that governs the CRTC. I like parts 7 a, b and c.

UPDATE May 2010: While the situation (and competition) has improved significantly in Canada since this post was first published, according to OECD data Canadians still pay among the highest cell phone bills in the world.

UPDATE December2007: For ongoing and more up to date coverage of the Canadian wireless industry, data rates, carriers, spectrum auctions, and mobile startups, I recommend WirelessNorth.ca

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303 Responses to Canada Worse than 3rd World Countries when it comes to Mobile Data Access

  1. Pingback: Canada wireless plans worse than 3rd world! « InGeniusBlog.com

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  4. Leah says:

    The excuse always used is the cost factor: Canada is such a big country with very low population density, so it’s not “worth it” and they’re charging for extra cost.

    However, Australia has a lower population with a population density of 2.6 people per square km, versus Canada’s 3.2 people per sq km (granted, Australia is 2 mil sq km smaller!).

    The remote areas that aren’t even getting high-speed Internet (although it’s becoming more prevalent) can hardly be expecting internet through their phones, so providing the network for that there would be neither expected nor viable anyway.

  5. Leah says:

    The excuse always used is the cost factor: Canada is such a big country with very low population density, so it’s not “worth it” and they’re charging for extra cost.

    However, Australia has a lower population with a population density of 2.6 people per square km, versus Canada’s 3.2 people per sq km (granted, Australia is 2 mil sq km smaller!).

    The remote areas that aren’t even getting high-speed Internet (although it’s becoming more prevalent) can hardly be expecting internet through their phones, so providing the network for that there would be neither expected nor viable anyway.

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  8. Shaheem says:

    We Canadians have a better chance lobbying US wireless carriers to come up with unlimited North American data plan for Blackberry users.
    I am seriously considering switching to US wireless carrier that can accomodate us Canadians. Let me know if anyone finds such a plan with T- Mobile or Cingular etc.

    Whether we are a corporate or personal user – managing communication expense means cash flow that can be better spent somewhere else.

  9. Shaheem says:

    We Canadians have a better chance lobbying US wireless carriers to come up with unlimited North American data plan for Blackberry users.
    I am seriously considering switching to US wireless carrier that can accomodate us Canadians. Let me know if anyone finds such a plan with T- Mobile or Cingular etc.

    Whether we are a corporate or personal user – managing communication expense means cash flow that can be better spent somewhere else.

  10. Shaheem says:

    From CRTC’s website – we may be barking up the wrong tree

    CELLULAR SERVICES
    You may not be aware that the CRTC does not regulate the rates, quality of service or business practices of cellular (wireless) service providers and cannot pursue complaints on these matters on your behalf. For information on where to lodge a complaint, read our Fact Sheet about Cellular (Wireless) Telephone Services.

  11. Shaheem says:

    From CRTC’s website – we may be barking up the wrong tree

    CELLULAR SERVICES
    You may not be aware that the CRTC does not regulate the rates, quality of service or business practices of cellular (wireless) service providers and cannot pursue complaints on these matters on your behalf. For information on where to lodge a complaint, read our Fact Sheet about Cellular (Wireless) Telephone Services.

  12. Herman says:

    The New Zealand prices are not only the lowest, but also take into consideration that the Telecom New Zealand network is an EVDO Rev A network so it is the fastest AND the cheapest. Welcome to Godzone!

  13. Herman says:

    The New Zealand prices are not only the lowest, but also take into consideration that the Telecom New Zealand network is an EVDO Rev A network so it is the fastest AND the cheapest. Welcome to Godzone!

  14. Robin Yap says:

    As an online consultant, information like this always stresses me because connectivity is one the foundations of my firm’s business. With costs rising, I cannot but think that we have to figure other ways of connecting to our customers more reasonably because we will not push this back to our client so we’ll end up eating up the costs which of course affects the bottom line. I think its time to open a shop in NZ.

  15. Robin Yap says:

    As an online consultant, information like this always stresses me because connectivity is one the foundations of my firm’s business. With costs rising, I cannot but think that we have to figure other ways of connecting to our customers more reasonably because we will not push this back to our client so we’ll end up eating up the costs which of course affects the bottom line. I think its time to open a shop in NZ.

  16. Shaheem: yes. this is part of what I am calling “the problem” with the CRTC. Their mandate is clueless and out of date. Tell your MP.

  17. Shaheem: yes. this is part of what I am calling “the problem” with the CRTC. Their mandate is clueless and out of date. Tell your MP.

  18. If you can’t beat them join them with a callback service. Use itokk and bypass the wireless charges. Let’s see what the wireless providers say about this service. They should celebrate as this will increase data usage by leaps and bounds, and where are the next revenues coming from??? Yes data.

    http://www.itokk.com

  19. If you can’t beat them join them with a callback service. Use itokk and bypass the wireless charges. Let’s see what the wireless providers say about this service. They should celebrate as this will increase data usage by leaps and bounds, and where are the next revenues coming from??? Yes data.

    http://www.itokk.com

  20. Pingback: Develops.mobi » Canadian’s telecoms regular ‘needs to be taken out and shot’ over stupid data rates

  21. Alex Na says:

    Yes!!! I agree completely!

    The Canadian providers do not feel any competition. Fido used to have unlimited data plan for $50. Not any more… (it is $38 in Verizon right over the board…)

    Also do not forget the taxes. I have $20 plan but I really pay $40 EVERY MONTH. What is that?

    Thank you for your post. I am glad there are other people feeling the same.

  22. Alex Na says:

    Yes!!! I agree completely!

    The Canadian providers do not feel any competition. Fido used to have unlimited data plan for $50. Not any more… (it is $38 in Verizon right over the board…)

    Also do not forget the taxes. I have $20 plan but I really pay $40 EVERY MONTH. What is that?

    Thank you for your post. I am glad there are other people feeling the same.

  23. Mark says:

    It certainly feels like the Canadian mobile operators are in the cohoots to keep their prices obscenely high & to maximize their profits. I have no problems with companies turning reasonable profits, but Rogers/Fido, Bell & Telus are reaping obscene profits due to our lack of options. Look at what they have done: “SAF fees”; charges for options like voice mail, call display, etc. that are typically included with operators outside of Canada; 3 year contracts; shrinking of evening hours; and the on-topic mobile data charges.

    I signed up with Verizon to use in Canada. How sad is that, it’s significantly cheaper to use a US plan in Canada & worth the hassle of using a US billing address & shipping.

  24. Mark says:

    It certainly feels like the Canadian mobile operators are in the cohoots to keep their prices obscenely high & to maximize their profits. I have no problems with companies turning reasonable profits, but Rogers/Fido, Bell & Telus are reaping obscene profits due to our lack of options. Look at what they have done: “SAF fees”; charges for options like voice mail, call display, etc. that are typically included with operators outside of Canada; 3 year contracts; shrinking of evening hours; and the on-topic mobile data charges.

    I signed up with Verizon to use in Canada. How sad is that, it’s significantly cheaper to use a US plan in Canada & worth the hassle of using a US billing address & shipping.

  25. RB says:

    You know, I hate to blast Canada, but I’ve lived here now for 6 years having come from the U.S. and EVERYTHING here is priced completely out of market averages. Digital cameras, Air compressors, Wendys! I have never seen such a tolerant society to over priced merchandise and I’ve been to a few places.
    I’m by no means an economics major, but could someone kindly tell me why a digital camera that costs roughly 500 dollars in the States will easily cost 800 here.
    I have never received an explanation for this. Nor can I find viable information regarding the subject.
    I mean, if a bucket of nasty KFC Chicken costs 12 dollars in the States, in no way should it cost 25 here.
    By the way, I do agree with mobile bandwidth charges. I’m a bell subscriber, and I dare not hit the web button on my phone.

  26. RB says:

    You know, I hate to blast Canada, but I’ve lived here now for 6 years having come from the U.S. and EVERYTHING here is priced completely out of market averages. Digital cameras, Air compressors, Wendys! I have never seen such a tolerant society to over priced merchandise and I’ve been to a few places.
    I’m by no means an economics major, but could someone kindly tell me why a digital camera that costs roughly 500 dollars in the States will easily cost 800 here.
    I have never received an explanation for this. Nor can I find viable information regarding the subject.
    I mean, if a bucket of nasty KFC Chicken costs 12 dollars in the States, in no way should it cost 25 here.
    By the way, I do agree with mobile bandwidth charges. I’m a bell subscriber, and I dare not hit the web button on my phone.

  27. m says:

    Great peice Tom – the telcos argue that they have to service all these underpopulated markets that hardly sustain enough business to operate…yet quarter after quarter this part (consumer services) of their very diverse businesses are profitable. Oligopolists rule Canadian communications and financial services sector.

  28. m says:

    Great peice Tom – the telcos argue that they have to service all these underpopulated markets that hardly sustain enough business to operate…yet quarter after quarter this part (consumer services) of their very diverse businesses are profitable. Oligopolists rule Canadian communications and financial services sector.

  29. Shawn says:

    Re: RB’s comments

    As a Canadian, one who has travelled through the states, I have to say no offence taken. I have observed for a long time the difference in the way American and Canadian businesses treat customers. In the US there seems to be the burning drive to ‘get them in the door’ when it comes to customers. In any given field there is a great deal of competition and price wars are not un-common.

    In Canada the creed seems to be “Get them coming and going…and get them good”. There is very little competition and if you are the One person in your town who HAS to buy Digtal Camera type X you are going to pay a $300 markup (per your comment). In the US, every store will carry that model and charge just enough to make a profit ($500 versus $800 in Canada).

    Take for example the cost of flights from Toronto to places like Sudbury or Thunderbay. Historically they have been 2 -3 times the cost of a flight to Florida and as expensive as a flight to Europe… who the heck pays that? The 10 people who HAVE to fly there that day. If you HAVE to go there, you are going to pay.

    And so it is no big surprise that Wireless Providers have taken the same approach to Wireless Data. If you HAVE to check your email via their network, you are going to PAY.

    What saddens me as a person in technology is they are holding back the advancement of technologies. No one is going to develop a ‘killer app’ for a Canadian Business worker with wireless data prices like this. Applications for ‘road warriors’ will not been seen in Canada for another 5-10 years because of this pricing strucutre. Meanwhile, what is the rest of the world doing?

    Overall, everyone suffers because of the greed of the wireless companies.

  30. Shawn says:

    Re: RB’s comments

    As a Canadian, one who has travelled through the states, I have to say no offence taken. I have observed for a long time the difference in the way American and Canadian businesses treat customers. In the US there seems to be the burning drive to ‘get them in the door’ when it comes to customers. In any given field there is a great deal of competition and price wars are not un-common.

    In Canada the creed seems to be “Get them coming and going…and get them good”. There is very little competition and if you are the One person in your town who HAS to buy Digtal Camera type X you are going to pay a $300 markup (per your comment). In the US, every store will carry that model and charge just enough to make a profit ($500 versus $800 in Canada).

    Take for example the cost of flights from Toronto to places like Sudbury or Thunderbay. Historically they have been 2 -3 times the cost of a flight to Florida and as expensive as a flight to Europe… who the heck pays that? The 10 people who HAVE to fly there that day. If you HAVE to go there, you are going to pay.

    And so it is no big surprise that Wireless Providers have taken the same approach to Wireless Data. If you HAVE to check your email via their network, you are going to PAY.

    What saddens me as a person in technology is they are holding back the advancement of technologies. No one is going to develop a ‘killer app’ for a Canadian Business worker with wireless data prices like this. Applications for ‘road warriors’ will not been seen in Canada for another 5-10 years because of this pricing strucutre. Meanwhile, what is the rest of the world doing?

    Overall, everyone suffers because of the greed of the wireless companies.

  31. Glad I’m not from canada. I mean it is obviously so much better and all, too bad it still sucks.

  32. Glad I’m not from canada. I mean it is obviously so much better and all, too bad it still sucks.

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  37. Tom Martin says:

    All I gotta say is screw Canada!!!! Am an Ontario resident here – its sad to say but its true, seems like everything here is double, even triple the price of goods and services in other countries…Even the whole tax bit, I mean come on who else has heard of a 14%(Ontario example) tax on services and most products found in other countries – Canada seems to be just catering to Big Business and screwing the general public

  38. Tom Martin says:

    All I gotta say is screw Canada!!!! Am an Ontario resident here – its sad to say but its true, seems like everything here is double, even triple the price of goods and services in other countries…Even the whole tax bit, I mean come on who else has heard of a 14%(Ontario example) tax on services and most products found in other countries – Canada seems to be just catering to Big Business and screwing the general public

  39. Tom Martin says:

    A bit off topic so just apologizing in advance
    Re: comment #113
    Toronto(Pearson) is the worst airport to fly from in terms of flight cost – Here is a piece of advice for anyone that is thinking about travelling anywhere in the USA – Instead of flying from Toronto just drive the extra hour or so to the Buffalo Niagara International Airport and you’ll end up saving hundreds of dollars on a flight even with the exchange rate – I do alot of travelling to mainly Jacksonville, FL and I imagine I saved alot flying from Buffalo

  40. Tom Martin says:

    A bit off topic so just apologizing in advance
    Re: comment #113
    Toronto(Pearson) is the worst airport to fly from in terms of flight cost – Here is a piece of advice for anyone that is thinking about travelling anywhere in the USA – Instead of flying from Toronto just drive the extra hour or so to the Buffalo Niagara International Airport and you’ll end up saving hundreds of dollars on a flight even with the exchange rate – I do alot of travelling to mainly Jacksonville, FL and I imagine I saved alot flying from Buffalo

  41. RB says:

    Regarding Shawns reply #113: You, so far have come closest to actually explaining what I’m still trying to find an answer for. I know of a young lady that worked at a local Canadian Tire, and I asked her one time, “how come I cannot get help from an associate when I’m obviously wandering aimlessly looking for whatever it is I’m looking for?” She replied that they are in fact discouraged from actually greeting a customer in that fashion. In her words, as long as a customer is wandering aimlessly, they are in fact still in the store. Once you direct them to the product they are looking for, they purchase and leave.
    There seems to be a general attitude that ” if you want it, your going to pay” and that goes for the telecom market as well.
    People used to tell me that it has to do with currency exchange. Well, that theory hold no water. The currencies at the moment are virtually equal, and prices here have not reduced at all.
    #119……I agree fully.
    #120…..We do the same. We drive to Detroit to fly out. Would you believe that you can drive from S.W. Ontario to Detroit Metro and fly BACK in to Alberta or Sask cheaper than you can fly direct from London or Toronto?

  42. RB says:

    Regarding Shawns reply #113: You, so far have come closest to actually explaining what I’m still trying to find an answer for. I know of a young lady that worked at a local Canadian Tire, and I asked her one time, “how come I cannot get help from an associate when I’m obviously wandering aimlessly looking for whatever it is I’m looking for?” She replied that they are in fact discouraged from actually greeting a customer in that fashion. In her words, as long as a customer is wandering aimlessly, they are in fact still in the store. Once you direct them to the product they are looking for, they purchase and leave.
    There seems to be a general attitude that ” if you want it, your going to pay” and that goes for the telecom market as well.
    People used to tell me that it has to do with currency exchange. Well, that theory hold no water. The currencies at the moment are virtually equal, and prices here have not reduced at all.
    #119……I agree fully.
    #120…..We do the same. We drive to Detroit to fly out. Would you believe that you can drive from S.W. Ontario to Detroit Metro and fly BACK in to Alberta or Sask cheaper than you can fly direct from London or Toronto?

  43. Markus says:

    I would like to introduce you to a new grass-roots Canadian Telecoms
    Oligopoly information and protest site at TeleGopoly.com.

    What is TeleGopoly?

    Telegopoly = Telecom + Oligopoly

    A market scenario where there are minimal, dominant, major telecoms
    companies serving the wireless (cellphone) market. Due to their
    oligopolistic nature and ‘coopetition’, the wireless telcos act like
    monopolies in a ‘competitive’ market. Side effects are minimal
    innovation and high service fees.

    An example of this market situation is Canada where there are only
    three network based wireless carriers (which created tightly
    controlled MVNOs to create illusion of competition) serving the
    wireless market.

    The Telegopoly.com objective is to educate Canadians about the
    Advanced Wireless Spectrum (AWS) Auction.

    Next year, Industry Canada will hold the AWS Auction. Industry Canada
    set up a call for comments which ran from mid-February to May 25,
    2007. Unfortunately the Call for Comments was not well advertised and
    the only time the press spoke about the process in any really visible
    manner was near the end of the process. It is now too late to make
    commments.

    The Department will also provide interested parties with the
    opportunity to reply to comments from other parties. Reply comments
    will be accepted until June 27, 2007. We as consumers must be heard!
    It is important to rebutt comments made by business organizations
    which are acting as defacto lobby groups for the incumbent carriers.

    The carriers want “free market” open auctions via which the incumbent
    carriers will be able to outspend potential market entrants which
    could bring innovation and competition to the Canadian market.

    Visit the site and let us know what you think.
    Please forward this email to your colleagues

    Sincerely,

    Markus and the Telegopoly.com team

  44. Markus says:

    I would like to introduce you to a new grass-roots Canadian Telecoms
    Oligopoly information and protest site at TeleGopoly.com.

    What is TeleGopoly?

    Telegopoly = Telecom + Oligopoly

    A market scenario where there are minimal, dominant, major telecoms
    companies serving the wireless (cellphone) market. Due to their
    oligopolistic nature and ‘coopetition’, the wireless telcos act like
    monopolies in a ‘competitive’ market. Side effects are minimal
    innovation and high service fees.

    An example of this market situation is Canada where there are only
    three network based wireless carriers (which created tightly
    controlled MVNOs to create illusion of competition) serving the
    wireless market.

    The Telegopoly.com objective is to educate Canadians about the
    Advanced Wireless Spectrum (AWS) Auction.

    Next year, Industry Canada will hold the AWS Auction. Industry Canada
    set up a call for comments which ran from mid-February to May 25,
    2007. Unfortunately the Call for Comments was not well advertised and
    the only time the press spoke about the process in any really visible
    manner was near the end of the process. It is now too late to make
    commments.

    The Department will also provide interested parties with the
    opportunity to reply to comments from other parties. Reply comments
    will be accepted until June 27, 2007. We as consumers must be heard!
    It is important to rebutt comments made by business organizations
    which are acting as defacto lobby groups for the incumbent carriers.

    The carriers want “free market” open auctions via which the incumbent
    carriers will be able to outspend potential market entrants which
    could bring innovation and competition to the Canadian market.

    Visit the site and let us know what you think.
    Please forward this email to your colleagues

    Sincerely,

    Markus and the Telegopoly.com team

  45. Ryan Favro says:

    The solution in my opinion is for the Canadian government to make it easier for foreign companies to set up shop in Canada. Bell, Telus and Rogers are sitting rather comfortably content to “swap” their customers around. If Rogers loses a customer Bell gains a customer and visa versa. But lets say Verizon and AT&T as an example could start expanding their coverage north that would spur more competition and drive prices downwards. At the end of the day no matter what the consumer wins. This problem is also paralleled in Canada’s banking industry as well as television broadcast providers.

    Additionally I would be willing to play up to $100 a month to get highspeed wireless access right to my laptop if any of the big three are genuinely listening. Until that happens I will abstain from being F’d with my pants on.

    Thats my $0.02

  46. Ryan Favro says:

    The solution in my opinion is for the Canadian government to make it easier for foreign companies to set up shop in Canada. Bell, Telus and Rogers are sitting rather comfortably content to “swap” their customers around. If Rogers loses a customer Bell gains a customer and visa versa. But lets say Verizon and AT&T as an example could start expanding their coverage north that would spur more competition and drive prices downwards. At the end of the day no matter what the consumer wins. This problem is also paralleled in Canada’s banking industry as well as television broadcast providers.

    Additionally I would be willing to play up to $100 a month to get highspeed wireless access right to my laptop if any of the big three are genuinely listening. Until that happens I will abstain from being F’d with my pants on.

    Thats my $0.02

  47. Mac says:

    I am surprized on this wonderful discussion. Being a Professional Engineer in Ontario working in ICT industry, I would like to take stand at the level of professional and political bodies.

    I hope we can make difference together. Please start sending email/faxes to Bell/Rogers/tellus/ MPs/Feds.

    I will defintely raise this issue on number of platfroms.
    Hopefully, it creates a pressure lobby.

  48. Mac says:

    I am surprized on this wonderful discussion. Being a Professional Engineer in Ontario working in ICT industry, I would like to take stand at the level of professional and political bodies.

    I hope we can make difference together. Please start sending email/faxes to Bell/Rogers/tellus/ MPs/Feds.

    I will defintely raise this issue on number of platfroms.
    Hopefully, it creates a pressure lobby.

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  50. Me says:

    Here’s what I think I know:

    Federal government employees get unlimited data for $34.95/month. Talk about a conflict of interest!

    Another tidbit: I understand Telus is actually “unable” to track data usage on their MIKE network, so it’s virtually unlimited at the lowest data plan ($25/4mb). I’ll best your ass they haven’t fixed this on purpose because the big companies using MIKE phones would scream if they started getting charged for what they were actually using. And THEN they would have to answer to OTHER big businesses.

    “Here’s your phone, sir. Please bend over.”

    Nevermind. Bell, Telus & Rogers say we already have enough competition in Canada.

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