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Thread: Canadians paying more for communications: CRTC 2014 Communications Monitoring Report

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    Canadians paying more for communications: CRTC 2014 Communications Monitoring Report

    CRTC releases full edition of the 2014 Communications Monitoring Report
    OTTAWA-GATINEAU, Oct. 16, 2014 /CNW/ - The Canadian Radio-television and Telecommunications Commission (CRTC) today released the full edition of the 2014 Communications Monitoring Report, which shows that Canadian families spend over $190 each month on communications services.

    In 2013, the average Canadian family spent $191 per month on communications services, a 3.2% increase from $185 per month in 2012. Household spending climbed by an average of $1.54 to $53.56 per month for cable and satellite television services, $1.91 to $69.33 per month for wireless services and $4.42 to $35.37 per month for Internet services. Spending on home telephone service went down by $2.01 to $32.85 per month.

    Higher spending on wireless and Internet services can be attributed, in part, to the fact that Canadians are using more wireless data and subscribing to higher broadband Internet speeds. The prices of telephone, television and Internet services rose between 1.6% and 3.7% in 2013, while inflation was 0.9%.

    Cable and satellite companies reported a profit margin on earnings before interest, taxes depreciation and amortization (EBITDA) of 42.2% for their television, Internet, telephone and wireless services. This was an improvement over a profit margin of 41.1% in 2012. Similarly, wireless companies reported an EBITDA profit margin of 43.2%, compared to 40.7% the previous year. The profit margin for wireline companies decreased from 41.1% in 2012 to 40% in 2013.

    Total revenues for the Canadian communication industry reached $61.9 billion in 2013, a 1.9% increase from $60.8 billion in 2012.

    The report also includes an international perspective by comparing key indicators in Canada, the United States, the United Kingdom, France, Germany, Italy, Japan and Australia. Among these countries, Canada had the fourth highest penetration rate for fixed broadband Internet and the seventh highest for mobile broadband.

    The 2014 Communications Monitoring Report provides a comprehensive overview of the Canadian communications industry. The report contains data and information on the industry, including emerging trends and issues.

    This year, the CRTC released the report in three parts. The first part featured data on the broadcasting sector while the second part provided data on the telecommunications sector. With today's publication of the third and final part, the full edition of the report is now available.

    Quick facts

    The 2014 Communications Monitoring Report provides a comprehensive overview of the Canadian communications industry.
    In 2013, the average Canadian family spent $191 per month on communications services.
    Canadians are using more wireless data and subscribing to higher broadband Internet speeds.
    Prices of telephone, television and Internet services all increased at a higher rate than inflation, which was 0.9% in 2013.
    Overall revenues for the Canadian communication industry increased by 1.9% to $61.9 billion.
    In a survey of eight countries, countries, Canada had the fourth highest penetration rate for fixed broadband Internet and the seventh highest for mobile broadband.
    Quote

    "With the publication of the final part of the Communications Monitoring Report, Canadians have a comprehensive view of the state of the communication industry. All participants in the communication system—including citizens, creators and consumers—will find this data useful. We encourage them to use this information to contribute to our public proceedings as we work to ensure Canadians have access to a world-class communication system."

    Jean-Pierre Blais, Chairman of the CRTC
    http://www.newswire.ca/en/story/1428...itoring-report

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    Canada’s broadcast and telecom regulator has released new numbers on how much Canadians spend on communications services, revealing the total bill for the average household climbed to $191 per month last year.

    The Canadian Radio-television and Telecommunications Commission published the final version of its yearly communications monitoring report Thursday, adding detail on consumer spending to previously released figures on industry revenues.

    Increased spending on wireless data – to stream videos or upload pictures on mobile phones – and higher-speed home Internet services contributed to a bump in the average household’s monthly bill, the CRTC said.

    The increase, to $191 per month last year, up 3.2 per cent from $185 in 2012, outstripped overall inflation, which was 0.9 per cent.

    The CRTC said the average household spent $69.33 per month on wireless services in 2013, up $1.91 from the previous year.

    Monthly spending on Internet increased by $4.42 to $35.37, while the average cable or satellite television bill went up $1.54 to $53.56.

    Money spent on landline telephones dropped to an average of $32.85 per month last year, down $2.01 from 2012.

    Total revenues for the Canadian communication industry – including both the telecom and broadcasting sectors – climbed 1.9 per cent to $61.9-billion last year.





    http://www.theglobeandmail.com/repor...ticle21130289/

    14 Comments
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    crisworth 11 hours ago
    Supply, NOT regulation, drives down prices. The CRTC has effectively controlled supply of telecom services and allowed the big 3 to overcharge.

    This has also resulted in many lost opportunities for Canadians:
    http://mediavidi.com/netflix-v-crtc-history-making/

    We have a 20th century regulatory system. It needs reform!

    2 replies+1Report Comment

    Rene Albert 11 hours ago
    CRTC = Cannot Regulate Telecommunications Costs!

    CRTC's role is to regulate telecommunications and protect Canadians. In Canada we already pay some of the highest rates in the world. Yet, just got another round of increases approved by the CRTC.

    CRTC talks the talk but sure can't walk the walk... Let's get rid of it!!!

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    DalimarBlackheart 1 hour ago
    What the CRTC should be asking of the Big Three is how TekSavy can buy their bandwidth from one of the Big Three and sell it to the customer for less then the company they bought it from does. Or how Wind can offer unlimited country wide calling and data for less then half the price of the Big Three offer for a 1/4 of the service. Or how 5gb of data a month on a tablet is less then half the price for the same amount on a mobile phone plan. The CRTC needs to stop granting these price increases and start enforcing market equality with the rest of the planet. I just got dinged an extra $100 on my Rogers bill because my family prefers to watch more Netflix in a month then my bandwidth at the highest level Rogers offers allows. $1/gb overage for something that costs much less then a tenth of that to deliver - ridiculous!

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    charlie890 7 hours ago
    I wonder how much we could lower each persons taxes if we abolished the CRTC and stopped subsidizing the CBC?

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    Hrumph 12 hours ago
    The cost to the householder for tv,internet and phone has risen all through creative billing by the giants of largess. Give a company a license to steal would be an appropriate header for this piece.Comparing the cost of internet, Canada vs the USA tells all. Yet as consumers we have little choice if we want these services. Or in the alternative using a pirated service may save a few bucks, but where would one go for service. Then they wonder why Netflix is so popular.However to use Netflix you require a
    Broadband service with WiFI so all the way around you are screwed by a system that is so heavily political, it causes nosebleeds

    2 replies0Report Comment


    beljim 9 hours ago
    How about dropping Sun News Network from compulsary carry? All it is is a right wing propaganda machine. It wasn't making it on its own. It is used as another way for the Conservative Party to cheat. One of SNN's favorite targets is David Suzuki. How nobel.

    4 replies

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    Full Report: http://www.crtc.gc.ca/eng/publicatio...g/2014/cmr.htm
    Please Download to Increase Pig 3s Profits.
    Apple SIM anyone?

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    Quote Originally Posted by TelecomZombie View Post
    :
    Canadians paying more for communications
    What else is news that we Canadians are so tame and gullible?

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    Only Obligatory TaXpayers money well spent to overstate the obvious to the oblivious.

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    Its sometimes hard to understand why we don't have competition within the big 3. Do all 3 CEO's meet up at a secret meeting and mutual agree to monopolize pricing and to not undercut each other? An example could be if one carrier re-offered the $30/6G data plan, that would steer people to go with that particular carrier. Other carriers would need to follow in order to compete, which is the driving force of competitive pricing. It also seems going outside the big 3, their is competition with smaller provincial carriers where the big 3 will compete with them, only to customers in that geographical area.
    I know in the past the CRTC allowed different methods to open a door to allow competition to come in, which was believed would self promote competition. Has the monopolizing of the big 3 gone to far and become to rich to the point they are now untouchable to control as money has become power? I think the CRTC has their hands full to control these blood suckers.

    Dan

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    Quote Originally Posted by TelecomZombie View Post
    Only Obligatory TaXpayers money well spent to overstate the obvious to the oblivious.
    I do see the necessities of re-stating what is very obvious to most people. If the Tory wants to implement something more draconian to correct the collusion, the CRTC has to conduct such submission/hearing/report ritual to prevent the case being challenged in court. It is more time consuming I agree but necessary.


    Quote Originally Posted by Dano89 View Post
    Its sometimes hard to understand why we don't have competition within the big 3. Do all 3 CEO's meet up at a secret meeting and mutual agree to monopolize pricing and to not undercut each other? ......Has the monopolizing of the big 3 gone to far
    Dan
    I guess such behind the scene arrangement is the continuation of them in the media where Rogers+Bell have always been the most prominent players. Telus nonetheless relies on Bell for a lot of its network deployment anyway.

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    Quote Originally Posted by Dano89 View Post
    Its sometimes hard to understand why we don't have competition within the big 3. Do all 3 CEO's meet up at a secret meeting and mutual agree to monopolize pricing and to not undercut each other? An example could be if one carrier re-offered the $30/6G data plan, that would steer people to go with that particular carrier. Other carriers would need to follow in order to compete, which is the driving force of competitive pricing. It also seems going outside the big 3, their is competition with smaller provincial carriers where the big 3 will compete with them, only to customers in that geographical area.
    I know in the past the CRTC allowed different methods to open a door to allow competition to come in, which was believed would self promote competition. Has the monopolizing of the big 3 gone to far and become to rich to the point they are now untouchable to control as money has become power? I think the CRTC has their hands full to control these blood suckers.

    Dan
    The problem is, people don't switch. They complain their provider is too expensive and turn around and sign a 2 year contract on a ridiculously expensive plan, because it saves them a few dollars off the cost of the phone up front. People still ask for 3-year terms! If people are telling you to just shut up and take their money, why bother with any more than a token bit of competition?

    via the HoFo App

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    Quote Originally Posted by Stately Automat View Post
    The problem is, people don't switch. They complain their provider is too expensive and turn around and sign a 2 year contract on a ridiculously expensive plan, because it saves them a few dollars off the cost of the phone up front. People still ask for 3-year terms! If people are telling you to just shut up and take their money, why bother with any more than a token bit of competition?

    via the HoFo App
    Agree to a certain point, but part of my point is consumers have no carrier to switch to as the big 3 are in control, even with their discount carriers. I'm all for companies making a profit, but to monopolize the system in order to trap higher profits should be illegal. There really is no competition, just pick your evil. Using subsidized hardware in contracts have become a way to trap customers into the current price structures. Most consumers don't have the cash out front to buy a new handset so this is where carriers capitalize on that in an entrapment of the crazy expensive contracts. Outside going to your local apple store, we're stuck buying a locked phone even if we pay full upfront cost and need to pay extra to unlock. In a carriers eyes, it may seem acceptable to pay what we do because people are willing to pay for it like a bunch of mindless consumers that are perceived to gobble up all the mindless advertising. But consumers aren't stupid, they're trapped! The key word here causing discrepancies is "willing", and to speak on behalf of 99% of consumers, they are not "willing", they are "tolerating" due to the desire to continue using cell service in Canada. Its no different then spending $1.50/L for fuel when your tank is empty and you really need to get somewhere.
    The CRTC has their work cut out and maybe it has gone to far and to the point of no return where the big 3 have enough money to gobble up any competition. Maybe its time for Verizon to cross the border? Yeah let the big 3 chew on that big one. I thought it was going to happen a couple years ago, guess we lost.

    Dan
    Last edited by Dano89; 11-01-2014 at 03:11 PM.

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    But people don't need to have the latest and greatest phones. They prioritize their wants over their needs so they go for an iphone 6+ or Note 4 instead of a lower or mid range phones.

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    Quote Originally Posted by rogue17 View Post
    But people don't need to have the latest and greatest phones. They prioritize their wants over their needs so they go for an iphone 6+ or Note 4 instead of a lower or mid range phones.
    Yes true, but people can't shop around and buy a premium handset such as a Samsung without buying from a carrier. Even buying at full pop its locked to their network. With Apple we can buy directly from store unlocked, which is cheaper then buying from carrier overall. Some people might not have the money out front so carriers will capitalize on that. Buying a new Iphone 6 through Bellus/Rogers not only puts you in a more expensive plan, they're taking data away from many people to cash in on more profit due to hardware upgrade. That said, an Iphone 6 could cost an extra $500-1000 overall in a 2 year span from both more expensive plan, upfront cost before activation and data overage charges.

    Dan

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    On the one hand there are phones that can not be bought unlocked like Samsung. But there is Sony, Nexus, Apple.

    Then there is the exorbitant prices for these phones whether it is Samsung, Sony or Apple.

    My point is this.Does one need a Note 4 or iPhone to use a wireless provider? There are certainly other cheaper options. Like I said, as long as people will prioritize wants over needs, they will lock themselves into very high plan rates. Because they can't afford the outright price of a phone.

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    New and existing Verizon customers will get 10GB of data for $80 per month and 15GB for $100, beginning this week under its "More Everything" program. Previously, the offer was just 6GB for $80 and 10GB for $100.
    Why didn't Verizon come over ? We Canadians are so tame and gullible LOL

    http://money.cnn.com/2014/11/03/tech...&iid=obnetwork

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    Did I miss where that said we pay more than other countries? I know it says we're paying more than two years ago, but if it were still true that we were the most expensive country, don't you think the report would have highlighted that?

    I think that 5 years ago Canada was the most expensive and people hang on that old data as if it were still true today. I can tell you, we're paying pretty similar rates to other countries in my experience.

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