Tuesday, July 08, 2008

Cellular breakdown

Bell and Telus both announced today that they will be charging their cell phone clients a fee of $0.15 per incoming text message starting in August, which of course, and rightly, created a massive outpouring of complaints on both CBC's and Globe and Mail's online forum.

I'm not going to bother complaining about it here - enough have done so already.

The interesting thing was another story listed on both CBC and CNET about the fact that Apple has essentially turned its back on Roger's days before the release of the IPhone in Canada, apparently in disgust over the pricing of packages that are to be offered to customers.

To me, this indicates that the pricing structures for cellular phones is becoming so out of touch with consumers that the whole system is breaking down. Essentially, all three of the major firms providing nationwide coverage are becoming so hated by consumers in this country, it wouldn't surprise me to see major backlashes in the next few months against the companies. I don't know how it will happen, as mobile communications has become so intrinsicly a part of everyday living that people feel tied to their phones (especially teens), but I think the day of reckoning is coming. Both the federal government and CRTC (those "gaurdians of Canadian cuture") will feel increasing pressure over the fee structures in Canada in the coming months.

While the feds believe that the recent wireless bandwidth auction will allow new entrants into the mobile communications industry, the reality is that many of them are regional networks, and most will take years to fully start up, especially if they must build their own infrastructure.

So, I see two options to resolve this crisis. The first is the separation of infrastructure from service to allow many new entrants in without the crippling cost and time of building a new infrastructure. Better yet, CRTC should dismantle the outdated barriers to that Canada has set up and allow foreign carriers to freely enter the Canadian market.

No comments: