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CWTA Toronto Sun Ad Touts Canada’s Wireless Prices ‘Lower’ than USA [PIC]

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The Canadian Wireless Telecommunications Association (CWTA), a lobby group for Canada’s wireless carriers, has taken out a full page ad in today’s edition of the Toronto Star to tout how wireless prices here are “typically lower than in the U.S.”. Check it out below:

Torontosun

The ad refers to the Wall Communications report prepared for the CRTC for the ‘fact’ that says in some cases cellphone plans here are 40% lower here, while the mention of our wireless plans being less expensive than the U.S. is from the March Scotiabank report.

The Wall Communications report cited in the ad refers to prices from new wireless companies such as WIND, Mobilicity and Public Mobile, which offered lower prices by 19%, 14% and 39% for wireless subscribers in three categories based on low, medium and heavy users.

However, with so many different reports stating various conclusions about the state of wireless pricing in Canada, journalist Peter Nowak had a chance to speak with Gerry Wall, principal of Wall Communications. Nowak breaks down his issue with the Wall report:

The problem with the Wall report lies in interpreting it as comprehensive, because it isn’t. When the study says that Canada is “middle of the pack” in terms of pricing, that actually refers to only a very limited group of six compared countries: the United States, the United Kingdom, Japan, Australia and France. Three of those countries – Canada, Japan and the United States – are like the John Olerud, Paul Molitor and Roberto Alomar of wireless, in that they’re first, second and third in total monthly revenue gleaned per subscriber (points to anyone who recognizes the reference).

The U.K., France and Australia are more middle of the pack by that measure, according to the Bank of America Merrill Lynch Global Wireless Matrix, or the wireless industry’s bible. When additional countries are included in comparison – the Wireless Matrix compares 50, including 19 developed nations – Canada’s standing isn’t so middle-of-the-pack. Wall says he wishes he could include more countries in his comparison, but he simply isn’t given the budget to do so.

In the Wall report, smaller U.S. carriers such as T-Mobile (35 million subscribers) and MetroPCS (9 million subscribers) were not compared in the study, which might have changed U.S. pricing comparisons as these carriers offer competitive pricing. Wall said our newer entrants were included because the Federal government wanted to see how well they are doing.

Take these reports for what they are, but at the end of the day, ask yourself what you are paying for and receiving today versus three to four years ago. Are you paying more or less with your wallet?

Thanks Nate!

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  • Matt

    i saw the ad in the metro vancouver paper this morning…i had to double take when i saw the ad; it actually jolted me awake more then my morning coffee did LOL i was shocked….im pretty sure this is just all false info

  • I’m glad you didn’t choke on your coffee lol

  • kkritsilas

    The CWTA has long lost any semblence of trust or relevance. The paramaters of this report are so restricted as to make the report essentially useless, and then the CWTA, who has had both Wind and Mobility leave due to the CWTA’s constant pandering to the Big 3, has the audacity to trumpet that rates are cheaper than those in the US, comparing Canada’s low cost carriers (Wind, Mobilicity) only to the US’s high priced carriers. leaving out the low cost US carriers (T-Mobile, Metro PCS) completely out of the comparison. The report itself is a joke, and the CWTA’s ad is an even bigger joke, bordering to outright lying.

    Kostas

  • Yep, it would have been interesting to see how T-Mobile and MetroPCS would have changed the results for the U.S., too bad they were omitted.

  • Jeeverz

    With the possibility of Verizon acquiring Mobilicity, I think they would be the only one’s with a fighting chance to even the playing field.

    Verizon, is bigger than Rogers_Bell_Telus put together, and if they enter the Canadian market and push their weight around, the Big 3 will Have to conform.

    However, the way this is all going, the CWTA/CRTC and other boards run by members of the BIG 3 will block a wireless giant like Verizon to penetrate the Canadian Wireless Market.

  • Yeah. Verizon is massive. I would imagine lobbyists at Parliament Hill are working overtime to prevent Verizon from coming.

  • Matt

    No, the big 3 does that enough to me haha

  • trancen

    Actually the report does state the following:

    “Note that only the incumbents primary name brand mobile services are taken into
    account for this study, not their respective flanker brand mobile services (such as Rogers
    Fido and Chatr, Bell Virgin and Solo and TELUS Koodo).”

    It’s found on page #3 at http://www.wallcom.ca/pdfs/price-comp-report_2013update.pdf

    Either way, I still agree that this ad is a load of bull.

  • jubby69

    Just the fact that the CWTA feels the need to advertise to tell us they are cheaper then their USA counterparts essentially tells us they know it’s not true/

  • frustratedintoronto

    The CWTA is an irrelevant and impotent “mall-cop” organization that needs to be disbanded.

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