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Thread: Canada’s Data Overage Madness

  1. #1
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    Post Canada’s Data Overage Madness

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    Remember when I wrote that the CRTC needed to regulate data overage fees? This is why the CRTC needs to regulate data overage fees.

    The graph above can be found in a tweet from the analytics company tefficient, and bares a little explaining. The vertical axis plots the amount of mobile data used per human per month in various countries. You can clearly see that mobile users in Finland and Taiwan used large amounts of data in 2016. The horizontal axis measures carrier revenue per gigabyte. You'll notice that Canada is quite literally off the charts. What does this mean? It means that Canadian carriers are making a lot of money providing not a lot of data to their customers.

    You want numbers? Dr. Michael Geist has numbers. A recently-published CRTC report has cited that of the carriers who charge data overage fees (ie. not Freedom Mobile) 6% of those revenues come from overages. Given that wireless revenues in 2016 exceeded $23 billion CAD, revenue from data overages alone accounted for more than a billion dollars that same year. There's clearly little incentive for carriers in this country to reign in data overage charges; in fact, the opposite seems to be happening—according to the CBC data overage rates have increased by as much as 40% this year.

    It's time to stop this madness.

    Sources: @tefficient, CBC, Michael Geist
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    Post Data Overages in Canada Reach $100/GB

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    One of Canada's Big Three carriers reached a new high (or low) this week, raising rates on data overages from 7 to 10 cents per megabyte. It's only Bell testing these uncharted waters at the moment, but if history teaches us anything then Rogers and Telus are sure to follow. Hopefully the mid-tier sub-brands will be exempt from this new "feature"—for the moment Virgin Mobile's overage rate remains the same.

    Someone from Bell took a break from making snow angels in huge piles of cash to inform Mobile Syrup that the increased rates will apply to new plans only; existing customers are grandfathered in at a slightly-less egregious rate of $70/GB. Furthermore, Bell will cap overages at 10GB, so you'll never be on the hook for more than $1,000 in extra fees. How thoughtful!

    For any smartphone user in this country who ever thought they'd be able to enjoy unlimited data plans like our American friends, think again.

    Source: Mobile Syrup

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    Telus has been charging $100 per GB after the first $50, since late 2016.
    Largely unreported, they've manage to keep the gouging under the radar.

    https://www.howardforums.com/showthr...6#post17004926
    A Canadian tale of wireless competition, and Another
    From unjust discrimination to undue preference - a CRTC timeline

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    I've mentioned several times in CRTC consultations that overage rates should be advertised in units of 1GB. This was a major oversight in the CRTC wireless code.

    It allows for a situation like this to degenerate slowly as even well-informed , cautious customers could be confused by a numbers like 10 cents per MB.

    The goal here is clearly to make as much money as possible since that 50$ cap on monthly overage in the wireless code. It's clearly a circumvention of the code that was designed to prevent runaway overage charges. Instead of charging a few irresponsible people 2,000$ in overage, they charge a larger number of customers 50$ as frequently as possible, trying to get everyone to hit their cap or call in to increase it.

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    Quote Originally Posted by acurrie View Post
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    One of Canada's Big Three carriers reached a new high (or low) this week, raising rates on data overages from 7 to 10 cents per megabyte. It's only Bell testing these uncharted waters at the moment, but if history teaches us anything then Rogers and Telus are sure to follow. Hopefully the mid-tier sub-brands will be exempt from this new "feature"—for the moment Virgin Mobile's overage rate remains the same.

    Someone from Bell took a break from making snow angels in huge piles of cash to inform Mobile Syrup that the increased rates will apply to new plans only; existing customers are grandfathered in at a slightly-less egregious rate of $70/GB. Furthermore, Bell will cap overages at 10GB, so you'll never be on the hook for more than $1,000 in extra fees. How thoughtful!

    For any smartphone user in this country who ever thought they'd be able to enjoy unlimited data plans like our American friends, think again.

    Source: Mobile Syrup
    https://mobilesyrup.com/2018/07/06/b...to-10cents-mb/

    Didn't take long for flanker brand Virgin to increase their overage rates as well. On the same day.

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