Telecom CEOs defend wireless industry in front of MPs

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OTTAWA – The heads of Canada’s main telecommunications firms advised MPs that they’ve been reducing cellular costs regardless of authorities insurance policies that make issues costlier.

The CEOs of Rogers, Telus and Bell appeared earlier than Parliament’s trade committee Monday to defend their trade amid considerations about excessive costs in Canada. All three firms argued that the costs for cellular service are coming down at the same time as inflation drives up the costs for almost every part else.

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Bell CEO Mirko Bibic stated Canadians are seeing decrease costs on account of competitors within the trade.

“Canadians pay a lot decrease costs for wi-fi web at present than they did simply a short while in the past,” he stated. As costs have fallen, Bell has considerably elevated how a lot knowledge clients obtain every month. For a median Canadian utilizing between 5 and 7 gigabytes of wi-fi knowledge monthly, costs have fallen almost 30 per cent.”

MPs invited the CEOs to committee after Rogers elevated costs on choose cellular plans in January by as a lot as $9 monthly. When the federal authorities greenlit the corporate’s takeover of Shaw Communications final yr, it was conditional on the corporate providing low-cost wi-fi and web plans, preserving a big presence in Calgary and making giant investments in wi-fi protection.

Whereas not within the formal settlement, Rogers additionally pledged to decrease 5G knowledge costs by 30 per cent.

The corporate additionally bought off Shaw’s wi-fi division, Freedom Cell to Videotron as a part of the sale, and that Videotron decrease costs.

Rogers CEO Tony Staffieri stated the January will increase had been for a small proportion of shoppers who had been now not coated underneath a contract, with most paying a lot lower than the $9 enhance.

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“These modifications had been to a small proportion of our buyer base. The typical was $5, and most of these clients had been at $4 or much less,” he stated.

He stated Canada’s market is aggressive with clients now having many choices of suppliers.

“This nation has very sturdy and wholesome competitors. Our customers have selection right here. Final yr alone, 4.9 million Canadians switched their supplier.”

Staffieri stated whereas costs are falling, Canadians are utilizing their telephones greater than ever earlier than which is why some folks have seen their payments rise.

“I feel what you’re seeing is a large enhance in knowledge consumption. Canadians are amongst the very best knowledge customers on the planet.

Telus CEO Darren Entwistle echoed his rivals on costs, however added that one of many components that drives up prices in Canada is how the federal government divides up the market.

The federal authorities holds common spectrum auctions to license the bandwidth that cellular phone firms want for his or her providers. Entwistle pointed to a 2021 public sale for the spectrum used for 5G providers which introduced in almost $9 billion for the federal government.

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“In distinction, in Japan and South Korea, they gave away the spectrum. In order that operators can focus their spend on deployment,” he stated.

Entwistle stated the price of spectrum will get handed alongside to customers at a worth he estimated at about $100 per buyer per yr.

“That charge is throughout the board that charge displays the truth that Canadian wi-fi operators have traditionally paid the very best costs for spectrum by way of successive spectrum auctions,” he stated.

MPs additionally questioned Bibic, and Bell’s resolution earlier this yr to put off staff regardless of posting vital income.

“You additionally lately reduce almost 5,000 Canadians from a job. So are you able to clarify your report income and your market share and in addition your dedication to your staff whenever you laid off 5000 Canadians,” NDP MP Brian Masse requested.

Bibic stated Bell has to make modifications to mirror extra competitors within the market. He stated they didn’t take the choice calmly.

“What labored three years in the past, 5 years in the past, or 10 years in the past in Canada, now not works, so we have now to regulate,” he stated.

A few of Bell’s current layoffs had been within the firm’s information division CTV and the corporate ended a number of native newscasts and its investigative program W5 as a part of the modifications.

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Bibic stated information prices the corporate considerably they usually’re nonetheless in search of methods to spend money on it, however issues have to alter.

“I’ve shared the subsequent stat publicly many instances. We incur greater than $40 million in losses in information per yr. Regardless of that, we proceed to spend money on information and we proceed to spend money on our media division,” he stated.

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