Canadians and even
the CRTC[1] know our cell phone market
is broken. Canadians pay some of the highest prices for some of the
worst service in the industrialized world, and, as we showed in our
recent report,[2]
we’ve been subjected to systemic mistreatment by the Big
Three cell phone providers. Big Telecom lobbyists have responded to
these findings by essentially plugging their ears and callously
refusing to take ownership over these experiences.
A case in point is the 42-page response to our report (nearly
as long as our report itself) that was recently published by
Telus’s director of broadband policy, Craig McTaggart. It
seems that Telus, as one of three firms that controls 94% of the
market, would like to shoot the messenger (which in this case is
citizens across the country) rather than treat Canadians with the
respect they deserve.
Our findings have been supported by University of Ottawa
professor Michael
Geist[3] and award-winning technology
journalist and commentator Peter
Nowak,[4] who were also criticized by
Telus recently. Much of McTaggart’s nitpicking and PR spin
has been dealt with by Geist and Nowak on their blogs, so
we’d like to specifically address the criticisms of
OpenMedia.ca in Telus’ long-winded response.
The primary criticism McTaggart leveled at OpenMedia.ca
centred around our showcasing of citizens’ experiences, which
he suggested had been remedied by the CRTC hearing, and that Telus
itself had dealt with - a surprising claim given the number of citizen
stories we received that highlighted poor customer service and efforts
by Big Telecom to dodge the issue or shift the blame.
While the CRTC’s efforts to establish a National Wireless
Code of Conduct[5] are an important
first step in establishing minimum standards, it’s a work in
progress and could actually end up weakening existing safeguards if
done wrong. Furthermore, our report highlights the crucial point that
Big Telecom’s price gouging practices, disrespectful customer
service, and restrictive contracts are the result of systemic problems
in the cell phone market.
It’s the lack of alternative options that is the
primary driver of high prices, and while the code could and should help
create a level playing field for accessing independent cell phone
providers, it’s definitely not a panacea for our
dysfunctional market.
Is Telus using old data to undermine Canadian complaints?
Telus accuses us of using old data, but we used the most
up-to-date data we could find that was still comprehensive and
independent. McTaggart himself notes that the 2013 Organisation for
Economic Co-operation and Development (OECD) report is not yet
available, and is only published every 2 years, so in using the 2011
report[6] we used the most recent data
available. We used 2011 data alongside the 2009
OECD data[7] as, between the publication of
these reports, the OECD changed its method of measuring service costs,
so it’s useful to look at both. This change reflects more
favourably on Big Telecom, so it’s not surprising that they
prefer the 2011 data.
Telus would have liked us to use a 2011 Nordicity report that
used advantageous conversion rates which skewed the data, and that
Telus paid
for.[8] More recent data has become
available since the release of our report, which Nowak
has used to confirm our findings.[9] Conversely,
Michael Geist notes
that “the oldest data I've seen in the myriad of recent posts
on these issues can be found in McTaggart's response as he relies on
2005 data to argue that Canadians use their wireless devices more than
most people in the world.”[10] So if
anything, it’s Telus who is cherry-picking stats.
At the same time, as Nowak pointed
out this week, Telus’ response repeatedly uses data
that “hasn’t happened yet”, i.e. growth
projections. This data is unreliable because “when a country
experiences a higher-than-usual growth rate in any measure,
it’s usually because it is playing catch-up to
peers”.[11] And as our report has
shown, the Canadian wireless industry has a lot of catching up to do.
Telus also suggests that we should have paid more attention to
reports about independent providers - meaning those that control just
6% of the market between them. We of course rightly focused on the
three incumbents that control 94% of the market, and in fact we
received very few complaints about independents. This is unsurprising
considering that, as shown
by the CRTC’s 2012 Communications Monitoring Report,[12]
independents offer significantly lower prices than incumbents
— on average 27% lower for low usage plans, 23% lower for
average usage, and 37% lower for high usage. This illustrates the
powerful effect independents could have on driving down cell phone
prices, hence our report makes recommendations[13]
to level the playing field in order to facilitate more independents
entering the market.
In fact, the interests of incumbents and independents are so
divergent that this week Wind Mobile, Mobilicity, and Public Mobile announced
that they were quitting the Canadian Wireless Telecommunications
Association (the wireless industry lobby group that represents service
providers) because the CWTA “is taking a position against not
only consumers, but also against the interests of smaller
players,” and favouring only the interests of the Big Three.[14]
A gross sense of entitlement.
Crucially, Telus seems to be missing the point of our report,
and is instead plugging their ears and singing Big Telecom talking
points. Instead of listening to stories we helpfully pulled
together for them,[15] Telus called
problems with service a myth.[16]
Indeed Telus demonstrated how out of touch it is with customer needs at
the CRTC hearing when its Chief Marketing Officer Dave Fuller actually said
cell phone customers would not want a cap on roaming fees.[17]
Meanwhile, we have price-gouged
Canadians[18] spending their time creating tool kits[19]
to help fellow Canadians fend off Big Telecom’s punitive
activities. If Telus were actually listening with an open mind, they
would be thanking us for identifying the core
problems[20] with the cell phone
market and presenting a
road map to fix it.[21]
Telus is clearly acting to undermine the will of Canadians.
This was made clear when Senior Vice President of Federal Government
and Regulatory Affairs Ted Woodhead stated
at the CRTC hearing that Telus wants the new national wireless rules to
override existing provincial rules.[22] This
means that if weaker federal rules are put in place through the Code,
Big Telecom will have a way to get around the strong protections built
into the provincial rules.
A brief history of Telus undermining our country’s
national interest.
Sadly, this is par for the course with Telus, who have
consistently undermined Canadians’ efforts to democratically
put in place digital policies that enable open and affordable access to
wireless services and the Internet. Back in the 2008-09 battle[23]
for crucial Internet
openness rules (Net Neutrality)[24]
Telus found itself on the opposing side, coming up against a diverse coalition[25]
of businesses, public interest organizations and some of the original
architects of the Internet.[26] I
debated Telus reps more than once on the subject and Telus fought rules
that would prevent them from selectively blocking or slowing down web
services every step along the way. Enforcement remains a work in progress[27]
but in the end we won
the rules.[28]
Telus also found itself on the wrong
side[29] of the Internet metering (usage based
billing) debate.[30] Big Telecom
incumbents wanted the CRTC to add new regulations that would enable
them to put a pay-meter[31]
on every Canadian’s Internet connection — they
sought a pay-per-byte future for all Canadians including those that use
independent providers.[32]
This would have made Internet use far more expensive, crushed our
digital economy, and put the few independent ISP options we have out of
business.
A new level of disrespect for Canadians.
It’s not surprising that is Telus once again
opposing the national interest of Canada. What is surprising is that
they would stoop so low as to go
after the media,[33] spam our Facebook
page,[34] and write attack papers on a
report and plan that Canadians helped write. Their sense of entitlement
and hubris has blinded them to such a degree that they are undermining
their credibility and legitimacy with policy makers and, more
importantly, with Canadians.
Telus’ main defense has been to claim that they are
not the worst of the Big Three (glad to see they’re setting
the bar high!). Our message back is pretty simple - it’s not
about you Telus, and you still have a long way to go. The overall
market is broken, so Telus’ baby steps are just not enough,
and are likely just a response to the threat of new rules that could
truly level the playing field. The idea that one company can regulate
nearly a third of a national market is itself a problem.
What Telus can do if they want to listen to Canadians.
If Telus is listening to customers and trying to improve, they
should have no problem with the recommendations (see here[35]
and here[36])
we made for the CRTC and Industry Canada that would empower and
safeguard Canadian phone and Internet users. When Telus unleashed their
army of PR agents and lobbyists to attack rather than listen to our
report, it was odd that they barely mentioned the actual
recommendations put together based on input from Canadians and policy
experts. It appears that Telus is hoping to muddy the waters by
cherry-picking alternative data sets in an effort to shift attention
away from our roadmap
to fix our broken cell phone market.[37]
Canadians and policy-makers are too smart for that now.
If Telus and other big telecom companies really want to begin
to listen to Canadians, here’s what they can do:
- Stop suggesting that our cell phone market is working for
Canadians - it’s insulting.
- Apologize for the systematic mistreatment Canadians have
experienced from cell phone companies.
- Endorse the roadmap we created from Canadians’
input and work with us to fix our broken cell phone market.
If Telus feels their services can really compete on a
level-playing field where Canadians have equal access to independent
providers, they should have no problem adhering to the above three
points. Considering their history, I don’t think anyone will
be holding their breath.
--------
Footnotes:
[1] CCTS Wireless Complaints Infographic. Source: OpenMedia.ca
[2] Time for an Upgrade: Demanding Choice in Canada’s Cell
Phone Market. Source: OpenMedia.ca
[3] Canadian Wireless Reality Check: Why Our Wireless Market is Still
Woefully Uncompetitive. Source: Michael
Geist.
[4] Debunking the wireless myth busters, redux. Source: Peter
Nowak.
[5] Cell Phone Horror Story. Source: OpenMedia.ca
[6] OECD Communications Outlook 2011. Source: OECD.
[7] OECD Communications Outlook 2009. Source: OECD.
[8] New Report Claims Canadian Wireless Costs Below OECD Average.
Source: Digitalhome.ca
[9] See footnote 4.
[10] Debating the State of Canadian Wireless Competition: The Present
Isn't So Friendly. Source: Michael
Geist.
[11] Debunking yet another set of wireless myths. Source: Peter
Nowak.
[12] CRTC’s 2012 Communications Monitoring Report. Source: CRTC.
[13] Recommendations: A Road Map to Fix our Broken Cell Phone Market.
Source: OpenMedia.ca
[14] 3 Wireless Company Upstarts Quit Lobby Group. Source: CBC.
[15] How Cell Phone Service Hits Home. Source: OpenMedia.ca
[16] Wireless Plan Horror Stories. Source: CBC.
[17] Things Big Telecom Says. Source: OpenMedia.ca
[18] A Battle Guide to Cell Phone Mistreatment. Source: OpenMedia.ca
[19] A Tool Kit For Mistreated Cell Phone Customers. Source: OpenMedia.ca
[20] Top 3 Complaints Canadians Have About Our Cell Phone Market.
Source: OpenMedia.ca
[21] See footnote 13.
[22] Proceeding to Establish a Wireless Code for Consumers -
Transcript. Source: CRTC.
[23] Internet Protesters to Descend on Ottawa. Source: CBC.
[24] Net Neutrality FAQ | Save Our Net. Source: OpenMedia.ca
[25] Net Neutrality Rally | SaveOurNet. Source: OpenMedia.ca
[26] SaveOurNet.ca CRTC Hearing Report Back: The Trifecta. Source: OpenMedia.ca
[27] Save Our Net. Source: OpenMedia.ca
[28] Report: Internet Openness - Where Do the Parties Stand. Source: OpenMedia.ca
[29] Shaw Planning to Revive Metered Internet Billing: Critics. Source:
CTV.
[30] Stop Telecom Price Gouging. Source: OpenMedia.ca
[31] Stop the Meter FAQ. Source: OpenMedia.ca
[32] Make the Switch. Source: OpenMedia.ca
[33] Big Telecom Trying to Change the Story. Source: OpenMedia.ca
[34] Works for Telus [Image]. Source: OpenMedia.ca
[35] An Action Plan for a Connected Canada. Source: OpenMedia.ca
[36] See footnote 13.
[37] See footnote 13. |
