Why are Canadian phone plans so expensive? (Marketplace)

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[David] Putting the Big Three to the test. [automated voice] We can call you back in more than three hours. What kind of BS is that? [David] What's it gonna take to get more players? I underestimated what a hurricane I was gonna be going up against. [David] With so few phone companies, it's up to us to ring up some deals. Over a course of 24 months, -he'd be saving $3187.96-- -What? -- plus tax. [David] We go long distance to reveal how others are doing. -In Canada, $10.22. -That's crazy. [David] Giving you the 4-1-1 only on your Marketplace. ♪ These three Canadians are looking to slash their sky high cell bills. Jeff Scott's trouble is with Telus, Deborah Pranger is singing the blues with Bell and Steve Kay, he's ready to rumble with Rogers. Come on in, everyone. Thanks very much for helping us out today. Here to help them, veteran negotiator, Mohammed Halabi. You're actually a professional cell phone plan negotiator. -Yes. -This is what you do -for a living, -For a living. And you've done it for years. For years. That's why I've lost my hair. [all laughing] [David] Today, it starts with our own call centre, our testers taking on their telco. Let's start with a little bit of your back story. I'm with Telus and I pay 108 with tax. And you're paying more than you want. Yeah, absolutely. -Deborah. -I'm with Bell and I pay an average of $438 a month. -Come again? -$438 a month. I-- There's myself and my two university-aged kids are also on the plan. -Steve. -I'm with Rogers, I have four lines and I pay about $412.00 a month. We're just paying for a lot more service than we need. [David] Canadians pay some of the highest cell service prices in the world, handing the Big Three billions every year. Why is Canada so expensive? I'm a real estate agent in Toronto. Uh, my cell phone is my life. [David] But service isn't always great. We would simply like to get what we're paying for. I have to complain every single month. I pay $110 a month with poor to no reception. [David] And that's driving discontent. I think most cell phone servers in Canada are severely overcharging. Where's the competition? It's been a day of being in the dark for Rogers customers. [David] When the Rogers outage left a quarter of the country cut off... One thing goes down, it kind of all just collapses. [David] ...about the only call getting through was a wakeup call. They have alternative and they have choice. You think Canadians have alternative and choice in this marketplace? -Very much so. -You're saying that with a straight face. [David] Experts warning too few players with too much power and not enough competition made the blackout so much worse. We had all of our eggs in one basket. We took our home internet to Bell, uh, and kept our cell phones with Rogers because we didn't want, uh, that to ever happen again. [David] Now Steve's asking Rogers for a better deal. I just want to transfer my phones over. [David] And we're asking, how do we all get a better deal and who's blocking calls for it? I really wanna get my mobile rates down. I'm just wondering what you can do. [David] Our testers start with shopping online. $50 for additional lines, which is good. [David] Now, they're calling up the little competition there is to see if others can do better. [automated voice] Your call will be recorded-- [David] Steve's first up. Remember, he's with Rogers. [agent] Thank you for calling Telus. [David] But he's giving Telus a try. See how quickly they answered the call? [David] Mohammed says this kind of speedy service often goes to potential customers, not loyal clients. That's a minute and 38 seconds from the time-- A minute and 38 seconds. Wouldn't it be beautiful if all customer service was like that, right? I'm interested in, uh, switching my phone plan over from Rogers. [David] Mohammed thinks Steve could cut his bill in half, if he says the right things. He should be asking them what is the best price you can give me for a 20 gigabyte plan or 30 gigabyte plan, right? Something more tailored to his usage, right? Right now my plan includes 135 gigabytes, but I don't need that much. That's where I would stop. [agent] So, I found some plans and some offers. All right, what do you have for me? [David] Five minutes in and the bargaining begins. [agent] Which would definitely help you to get some savings today. Let's get to the number, let's get to the number. Come on. But to get to that number, another ten minutes and a whole lot of details we'll spare you. [agent] $230. -[Steve] Yeah, 230. -Let me just figure this out. -230 for all four lines. -So, that-- that is 30... You can see that he can literally save, you know, almost 200 bucks a month. -By switching. -By switching. [David] Can he now convert that offer from Telus to a better deal at Rogers? And is this really what it takes? We're calling up a guy who knows all about trying to create competition. Hi, it's Anthony here. [David] 13 years ago, entrepreneur, Anthony Lacavera, offers Canadians a radical alternative. [announcer] With real unlimited plans, no term contracts... [David] Wind Mobile. [announcer] ... hidden fees. Wind. True mobile freedom. Wireless networks are as important as roads to the future of the Canadian economy. [David] Wind doesn't offer cable, internet or landlines like the Big Three. They don't want you to cut the cord. They want you to stay on your cable service, stay on your home phone service. [David] But Wind's devoted only to cutting cell costs. Doing so, he says, pushes companies to lower their prices, too. -Anthony. -David, good to see you. -Good to see you. -Oh, yeah. Yeah. -Let's take a look. -All right. [David] What's going on here with two towers, same site? [Anthony] Well, unfortunately, Canada is one of the only countries in the world that hasn't figured out how to share towers. [David] Not sharing can drive up costs. They were required to share towers with us. We built 1,564 cell sites across the country with Wind. We shared one tower successfully. -One? -One. -And so-- Even though it's supposed to be-- [Anthony] Mandated tower sharing. [David] He says new competitors would have a better shot if the rules were enforced, but they're not. They were really able to put up a lot of barriers, but it goes far beyond that. [David] Eight years after it was born, Wind has to sell out to cable company, Shaw, and is renamed Freedom Mobile. I underestimated what a hurricane I was going to be going up against. You know, you put these fake competitors like Fido or Kudo or Chatr or even Virgin Mobile to create the illusion of competition, but when Wind came, they went crazy. You call them fake competitors because they're still owned by the big giant company. Those-- All those brands are owned 100% by Bell, Telus and Rogers. We're allowing these oligopolies to continue to function and to consolidate even further. We can't fault them for that. We have to have the government step in and fix this once and for all. [David] But will they? Until now, rather than better conditions for all of us, it's been left up to each of us to find our own deal. [automated voice] Welcome to Rogers. [David] Easier said than done for our tester, Deborah, who dreads calling. She's with Bell, but she's checking out Rogers first. [agent] Hi, this is Rogers-- Oh, you see how quickly they answer? It took a minute and 41 seconds. This is why I've lost my hair. This right there. [David] And just like Steve, as a potential customer, her call is answered in less than two minutes. I was wondering what Rogers is offering right now in terms of-- [agent] Oh, we have amazing deals. [David] Steve's also trying for a better deal calling Rogers, where he's been a customer for almost 20 years. [automated voice] We can call you back when your call is next to be answered. Look at the wait time. Let's say 30 minutes? [automated voice] In more than three hours. Three hours? Oh, my God. What kind of BS is that? -Three hours? -That's-- Who has three hours on a Sunday, right? [chuckling] While we all wait here, want to show you something really interesting that we found on the telco's website. So, this is Rogers. They have their essential plan, $85, but if I go and change it to Saskatchewan, that 85 goes down by 10 bucks to $75. Same thing over at Bell if you change it to Quebec. What's going on? Some provinces have a regional competitor. And it's driving lower prices for everyone. Are there any other offers or discounts that you have right now... [David] Back in our call centre, Deborah's call to Rogers to see what she'd save by switching is about to pay off. [agent] That'll be 170 plus tax. [David] Nearly $70 less a month. You did a great job, -so kudos to you. -[Deborah] Oh, thank you. [David] Armed with options, Deborah calls her provider, Bell, expecting an even better deal. I want to see if Bell can match those rates. [David] But quickly finds Bell won't budge. [agent] So, if you're gonna cancel your services in here, um, you will be paying $1,831.40 for the three lines, okay? [David] To make a switch, she'd have to pay for her phones outright. Just trying to deter her from moving. [David] Let's go out and see how she is. [Mohammed] Perfect. How you feeling? Depressed. I mean, who's got-- None of us have time for this stuff. -[Mohammed] It's time-consuming. -Yeah. There could be a variance between agent to agent. So, sometimes, you may have to make -more than one phone call? -100%. [David] Deborah calls it a day. But we're not finished with her yet. Meanwhile, choices aren't any easier for our third tester, Jeff. He's with Telus, but a quick search on Bell's website suggests he could save ten bucks a month by switching. I'd like to call about my existing cell plan. [David] So, Jeff gets on the phone with his own provider, Telus. And that's when things take a turn. [dramatic music] Are you calling me a liar? 'Cause I'm telling you, he said 75. [David] Our expert goes from the sidelines to the frontlines. Okay, um, download it. And we head overseas to show you just how much better they've got it. My God, that's-- that's so much money. [David] This is your Marketplace. ♪ We're dialing up a test to show just how much better other countries have it when it comes to cell phone bills. Hello, France. Hello, Cedric. How are you? -Good, good. -Hi, Isabelle. -Hi, Australia. -Hi, how are you? I'm well. Hello, Ireland. Hi, Theo. How are you? -Hello, how are you? -I'm very well. [David] In Canada, we've been conditioned to avoid using our data, but to foreigners, that's a foreign concept. ♪ I don't even bat an eye if I'm on or off Wi-Fi. Like, it doesn't matter. [David] To find out how much more we pay, we're asking these three testers to do three everyday things. -Scroll through Instagram. -I've arrived at Instagram. [David] Download a Marketplace episode from YouTube. So, I will download. [David] And a whole season of Wednesday from Netflix. -How's that download going? -All done. We're going to calculate how much data you used, and then we'll compare that to how much the same kind of task would cost here in Canada. Canada is often compared to Australia. Big country, small population. Our cell companies say that's one reason why our prices are so high. Can you start by turning off Wi-Fi and turning off your battery saver? Yep. [David] They also say Canada has many more towers. Still, Australians enjoy lower rates. Okay, and, um, we'll set the timer. Okay, great. [David] In Canada, high prices have been in the spotlight for decades. The CRTC has been pretty favorable towards big telecom. [David] The most recent case study, Rogers planned takeover of Shaw and the sale of Freedom Mobile to Quebec's Videotron. My job is to, uh, drive for lower prices for Canadians. [David] The players promise it'll mean more competition and lower prices for mobile phone customers. But the people in charge of regulating competition can't seem to agree on what's best. Our minister, he's waiting until the legal case is resolved. [automated voice] You'd like to make a payment arrangement. No. [David] With little competition, it's up to us to try to create competition. I think he's struggling a bit with the prompting. [David] So, Jeff Scott's been shopping around. [automated voice] Sorry, I didn't catch that. [David] He's calling his provider, Telus, armed with info from the competition. [automated voice] If you still need to speak to an agent, two. [David] Wireless negotiator, Mohammed Halabi, thinks Jeff deserves a better deal. Can you go lower, please? [agent] Uh, let me just see-- Tell him you have no contract. Tell him there's plans out there that are, like, half the price that suit you. [agent] So, the best option to go lower via a $15 savings, uh, off your monthly rate. [David] Sounds great, but his monthly bill has been yoyoing for years. The issue for Jeff is he lives right along the border um, and sometimes his phone picks up the US tower. Our expert uses that for leverage. That's nice of you that you've offered him some reduction here, you know, to bring the plan to about $78, is that correct? [agent] Uh, bring it down to, uh, $75. [Mohammed] Have you got credited back for your charges for the US when you weren't in the US? Infrequently. When I've called. -When you've called. -Yeah. So, that's another thing. We'd like to open up a case regarding this, uh, unjustified roaming charges. [agent] You know, I can only go back as far as, um, 30 days. [David] And then he ups the ante again, asking to speak to a manager. [agent] Hi, uh, Mohammed, I have my colleague on the line. -[manager] How you doing today? -I'm not that happy right now. [David] As the call escalates, so do tempers, when the Telus manager puts the onus on Jeff for his roaming woes. [manager] There have been several times that I believe Jeffrey has been informed that-- how to prevent these charges. I'm not gonna accept that. He's being charged with something he doesn't use. In Canada, I expect the charges credited back. He hasn't gone to the US, he deserves his money back. [David] with no resolution on roaming, talk returns to the monthly plan. [manager] It is $80, my friend. Okay. No, no, no, no. I'm not your friend. I'm not your friend. [manager] The only plan that we have costs $80. There's nothing below that. Okay, but I'm telling you, are you calling me a liar? 'Cause I'm telling you, he said 75. Did he say 75? I would like this call escalated. I'm not happy with your service. I would like to speak to your supervisor. [manager] Yeah, I can request for a callback. Excellent. [manager] Turnaround time is 72 hours. [David] No one ever calls back. But our other tester, Steve, is having more luck. He's finding all the good deals for me, I bet. [David] His three-hour wait with Rogers ends up way less, and so is the offer he's hearing. Rogers tells us it devotes most of its resources to loyal customers like Steve. How close are we to being ready to talk here? [agent] I'll say, uh, a few more minutes here. -Okay. -[David] Remember, he's tested the waters with Telus and it offered to cut his bill in half. And he's putting pressure on him. Yeah, that's good. That's good. [David] Now, Rogers seems willing to play ball. [agent] It'll be $225 plus taxes, and if it's an automatic payment, it'll be a fileless list, which is, uh, 220 plus taxes per month. So, uh, uh, Mansing, I think I'd like to take the offer that, uh-- that you put out there. [David] Here's competition at work. -[Mohammed] There we go. -How much has he saved? He's going to save almost $4,000 over the course of two years. And all of us could do this. [Mohammed] All of us can do this. [David] We could. [French song playing] But in other countries, there's no need. Consider across the pond, where Parisians don't have to demand better prices, they're just lower from the get-go. All right, if you can search "CBC Marketplace inflation." Yes, my favorite show. [David] Cedric is originally from Quebec. [Cedric] Okay, so the video is downloaded. [David] His new home enjoys some of the best cell service and cheapest rates in all of Europe. How would you compare the different cell phone systems? The choice in the offer. The lack of competition in Canada is very noticeable. [David] I want you to search for the series, Wednesday. Over in Ireland... Years ago, prices were high, just like ours. The industry dominated by few. [Theo] Okay, picking download. We don't have to sit here and watch every episode, do we? We do not, no. Then, government forced the big players to share their network with smaller ones. The result? Wider choice and cheaper costs. It's a free for all. It's like a buffet on phone activities. [David] After each download... Okay, times up, so go -to your settings. -Yup. [David] We record our testers stats, the amount of data for each task. Uh, it says 121 megabytes. 172 MOs. 172 megabytes. It says 1.8 gigabytes. That's-- That sounds about right to me. Then we crunched the numbers. You're ready for the results? I'm ready for the results. [David] Using data from global research outfit Rewheel. It breaks down the average cost of mobile data around the world. For Instagram, that five minutes scrolling through stories? -Yeah. -[David] The average cell phone user in France would pay half a cent for that. -Wow. -In Canada, $0.20. That's crazy. That's over 20 times. More than 20 times. That download on YouTube, for the average Canadian, $2.36. For the average Irish user? $0.05. Are you serious? That big of a difference? [David] The download of Wednesday on Netflix? The average user in Australia would pay $1.63 for that, By comparison, the average user in Canada, -$10.22. -Oh, my God. That's-- that's so much money. Just pretty scary that that's-- that's your normal there in Canada. [David] So, why can't we have the same? Telus won't talk. Bell and Rogers send us to their industry rep. The Canadian Wireless Telecommunications Association says prices have been declining and operating costs are higher here than other countries. They also dispute Rewheel's conclusions. With such a disconnect between companies and customers, what should Ottawa do about it? Why has nothing changed? -It's political will. -[David] That's next. [David] This is your Marketplace. After all the calls, there's still little competition among Canada's cell companies, and we're paying the price. So, what could the feds do? We are right in here. New Democrat MP, Brian Masse, says the Big Three have had it too good for too long. How politically powerful are the Big Three? Very powerful. It's clear. I mean, they're the number one lobbyers on the hill and they basically have a revolving door. [David] And when the feds try to take action, it falls short. [Brian] They finally did some carveouts for smaller players, uh, so that they could actually get into the market, but then they haven't protected them after that, so they get gobbled up by the big incumbents later on. So, even when we've opened up to actually try to create competition, we never followed through. -Why has nothing changed? -It's political will. At the end of the day, we need to have a stronger consumer protection model and Canadians are just waking up to that. [David] The buck really stops with Industry Minister, Francois-Philippe Champagne. He says the feds are working for affordable service, but acknowledges more work needs to be done. We ask for an interview. His office says no. Meanwhile, Jeff Scott's still waiting to hear from Telus. And Deborah? She takes Mohammed's advice and calls Bell again. This time, a different agent gets her a better deal, 55 bucks less a month. I would hope that the cell phone providers pay attention to this and take action themselves and start, you know, giving better options for their existing customers, especially, who have helped make them to what they are today. The more we can educate Canadians, I think, and the more people understand that this doesn't need to be this way.

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Channel: CBC News

Views: 776,894

Rating: undefined out of 5

Keywords: Bell, Rogers, Telus, Virgin, Lucky Mobile, Fido, Chatr, Cityfone, Koodo, Public Mobile, Cellphone, Cellphone Plan, Phone Plan, Phone, Data, Cell Service, Cell Plan, Consumer, Canadian Radio-Television and Telecommunications Commission, CRTC, Wind Mobile, Canada, CBC, CBC News, CBC Marketplace

Id: zGjA5GIx-gQ

Channel Id: undefined

Length: 21min 55sec (1315 seconds)

Published: Sat Jan 14 2023