CRTC asks carriers for lower-priced data-only plan proposals

The CRTC wants the Big Three to submit options for lower-priced data plans than those they suggested themselves, and is asking for opinions about changing its policy on wireless retail rate regulation. In March, the CRTC ordered Rogers Communications Inc., BCE Inc. and Telus Corp. to file options for low-cost, data-only plans in order to fulfill the government’s goal of more affordable wireless options for consumers. The big three responded with proposals that ranged from $25 to $30 for 400 MB to 600 MB of data. But in a letter Friday, the CRTC asked them how much data they would offer at the $10, $15 and $20 price points. The letter acknowledged that a number of consumer advocates responded to the incumbent options by arguing they don’t include enough data for the average user and cost too much. They proposed a variety of plans that included more data for a lower price, which the carriers said in their follow-up replies the CRTC should not accept. They warned doing do could lead to a jurisdictional challenge and harm the wireless industry if implemented. “In light of these comments … will your company propose an alternative lower-cost data-only plan that would address the concerns raised by parties and meet the expectations of Canadians reflected on the record of the proceeding? If not, explain why not,” the letter read. Bell and Telus said in their submissions that the CRTC’s previous decision to refrain from regulating the prices of mobile wireless plans would need to be reversed to force carriers to price plans lower than they were willing to do themselves. In its letter, the CRTC asked both sides to provide opinions as to whether the regulator should change its long-held approach not to intervene in wireless retail rate setting. It asked addressed intervenors, carriers and advocates to explain if the low-cost data only market should be regulated under the Telecommunications Act and whether the competition in this segment is sufficient to avoid regulations while promoting the public interest. As well, it asked whether it would be suitable to “establish a price ceiling and capacity floor,” or have the carriers to file tariffs and cost studies for required data plans. The intervenors also have the opportunity to share their opinions about interim rates while that is being decided. The letter was issued the same week Shaw Communications Inc.’s Freedom Mobile, which wasn’t asked to pitch in a low-cost option, launched its own $30 and $20 plans. The former includes 1GB of data, Canada-wide calling for five cents per minute and unlimited texts in Canada and the United States, and the latter has 250MB of data and 100 minutes of voice and unlimited texts in Canada and the United States. The plans are eligible for a $5 discount when a customer signs up for automatic billing. In its letter, the CRTC also asked how data overage costs would be handled under the data-only plans, whether the plans provide access to 911 services, considering they’re data-only, and how many subscribers have taken-up carriers' under-$30 plans in 2017 and 2018. Additionally, it asked for total wireless subscribers as well as average and total monthly data usage per subscriber for 2014 to 2017, and forecasts of that data for 2018 and 2019. The regulator also wanted to know the rationale for why the incumbents would offer the new plans under their flanker brands and what difference exists between them and the main brands. It asked advocacy intervenors to weigh in on whether that was ‘appropriate.’ The CRTC also challenged each of the incumbent providers about their decisions to stop offering stand-alone data-only tablet plans. Requesting all tablet plans from 2014-2018, the CRTC asked why these plans were taken off the table around the time of the initial proposals. Academic Ben Klass previously pointed out some of those plans included more data than the carriers' low-cost data-only plan proposals on social media. Answers from the addressed parties are due Aug. 10. — With reporting by Bryson Masse at bmasse@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC asks carriers for lower-priced data-only plan proposals

News | July 25, 2018

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CRTC asks carriers for lower-priced data-only plan proposals

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