The Canadian Broadcasting and Telecommunications Commission – CRCT – has made important decisions that will allow smaller players – mobile operators to enter the market as MVNO’s – “mobile virtual network operators”.
Soon, from July 14, 2021, we will notice serious changes in the offer of the three largest telecommunications tycoons – Bell, Rogers and Telus, but also at the state-owned operator SaskTel. They were obliged to offer and promote cheap offers – “low cost” as well as plans for occasional users. They have been committed to doing so under their main flagship brands in regions where they have and use their greatest strength as market tycoons.
Federal telecom regulator CRTC introduced numerous recommendations that were sought by consumer groups and smaller telecommunications companies, explaining that connecting to national cellular networks on a wholesale basis should be cheaper for start-up operators.
CRTC has decided that regional operators, under certain conditions, will be able to act as virtual operators. This means that they will pay for wholesale access to existing infrastructure, existing networks, retaining their own customer base.
In the world, MVNO’s, i.e., virtual operators connected to major networks, have existed for nearly 20 years, as long as technology allowed for it. In Canada, there have been attempts in the past, but gradually the major operators have been absorbing the smaller companies. An example of this from the past may be, for example, Virgin Mobile.
This time, the CRCT took a new initiative and introduced through regulations the levels of rates and packages that will have to be introduced from July.
The current situational map of the mobile telephony prices in Canada looks like the most expensive packages “get cheaper”, medium packages not so much, but there is no low-price offer from any of the major telecommunications tycoons.
At the moment, as regional operators who offer more competitive packages than the top three (Bell, Rogers, Telus) are Videotron in Quebec, Eastlink in the Atlantic provinces and SaskTel in Saskatchewan. Shaw Communications, owner of Freedom Mobile (formerly Wind), was considered as a regional operator, but its future is unclear as it agreed to Rogers’ takeover last month.
The CRTC is instructed to introduce the following cost levels.
Low-cost plans for a maximum of $ 35 / month, this price must include outgoing and incoming calls for the whole of Canada along with SMS, the ability to send and receive MMS, minimum 3GB of internet access, when used by user from his own cell phone.
Occasional-use plans for $ 15 / month, this must include minimum 100 outgoing minutes Canada-wide, unlimited incoming calls, unlimited SMS sending and receiving, 250MB of internet access, no “penalty” fees for using more data, when used by user from his own cell phone.
Prepaid occasional-use plans for occasional users for up to $ 100 / year, pricing plans and add-ons may not expire before 365 days, must include a limit of at least 400 minutes to use for local calls (maximum of $ 0.15 / minute after exceeding the limit), a limit of 400 incoming / outgoing SMS’s (maximum $ 0.50 / SMS after exceeding the limit), $ 0.50 / minute for incoming and outgoing long-distance calls in Canada, as well as outgoing calls to the continental US, when used by user from his own cell phone.
CRTC encourages Canadians to contact their service providers for more information on low-cost and occasional-use plans available, or to shop around for a different plan or provider if they are not currently satisfied with the offer they have.
