Home » Canada »Competition »Public Policy & Gov't »SaskTel »Wireless Broadband » Currently Reading:

SaskTel Exposes Predatory Wireless Pricing from Telus, Bell, and Rogers

Phillip Dampier April 17, 2014 Canada, Competition, Public Policy & Gov't, SaskTel, Wireless Broadband No Comments

sasktelTelus, Bell and Rogers charge customers as much as 45 percent less on wireless service where they face a fourth regional competitor in a case of suspected predatory pricing that could threaten the viability of competition in Canada’s wireless marketplace.

SaskTel, a crown corporation, is one of several Canadian regional wireless providers. The Saskatchewan Telecommunications Holding Corporation, based in Regina, said SaskTel’s revenue and net income dipped to $1.205 billion and $90.1 million, respectively. SaskTel (which has net income of $106.2 million in 2012) projects this will be only $59.2 million next year.

The dramatic drop in revenue, in part, comes from suspiciously low wireless rates in areas where SaskTel and other regional providers operate.

Sudden rate cuts were introduced last summer and are available only to customers where regional firms offer wireless service. Vidéotron in Quebec, EastLink in the Maritimes, MTS in Manitoba, and SaskTel in Saskatchewan are all impacted. But the savings don’t extend outside of these competitive areas, leading to whispered accusations that the Big Three are engaged in predatory pricing behavior, designed to undercut competitors while maintaining high rates for everyone else.

Styles

Styles

SaskTel president Ron Styles told The Leader-Post Telus has been offering customers in Saskatchewan a rate 45% lower than customers in Red Deer, Alberta pay. SaskTel is forced to match those rates to stay competitive, but it has hit the crown corporation’s finances hard.

“We’re very concerned; it’s had a major impact,” Don McMorris, cabinet minister responsible for SaskTel, told the newspaper.

Although many customers are happy paying a much lower mobile phone bill, the savings may prove temporary.

Canada’s three national carriers have proved particularly adept as killing off any competitors threatening their 90%+ market share. Public Mobile found it difficult to attract new customers away from rival Telus, so as the business floundered, Telus made the upstart company an offer it couldn’t refuse, shut down Public’s network, and transferred customers to its own network.

Although stopping short of directly pointing the finger at the Big Three, Styles is headed to Ottawa to discuss the implications of predatory pricing on SaskTel’s future. But he left no doubt something is up.

If Bell, Telus and Rogers can afford to offer low rates here and on other “4th carrier” turf, does that mean their wireless rates are needlessly high elsewhere, Styles asks. Or are the Big 3 engaged in “predatory pricing” — selling something below cost to damage or destroy competitors and keep new entrants out of the market.

Search This Site:

Contributions:

Recent Comments:

  • David: This is the most unreliable app I have ever used. Had tech here twice same solution from both of them. " well just unplug it and reboot. " I'm not ki...
  • elaine sullivan: This is so disappointing. I can not afford cable tv and we lost 8 channels today. There were several more removed earlier. PBS and local 4,5,7,9 are l...
  • elaine sullivan: This is so disappointing. I can not afford cable tv and we lost 8 channels today. There were several more removed earlier. PBS and local 4,5,7,9 are l...
  • Phillip Dampier: We do not know the locations at this time....
  • Bill Callahan: Buffalo? Syracuse?...
  • Fred Hall: Haha.....someone at Sinclair didn't provide enough "grease" for Ajit's palm...
  • Joseph Lindberg: I pay $93.45 for just TV select $6.00 or so for two TV boxes each the cheap ones not dvrs and $14.99 or something in tax and $64.99 for the TV select ...
  • Norm Mueller: Do not even consider this company for your service provider, or you will forever regret it like I do. This started because Comcast's promotional rate...
  • Katherine. Voss: I sent all my contract buyout forms. Got no credible response. This is a scheme. I am sending information to proper agencies....
  • Noemi Romero: i have been waiting for 3 month and 2 weeks now for my refund and every time i call is like no one knows what the hell i am talking about. like seriou...
  • Josh: Sounds risky....40 million subscribers is insanely high, and clearly that guy running it since ‘92 knows what he’s doing. I forgot AT&T owns hbo ...
  • alan: i stopped pissing $ away on paying to see commercials 20 years ago did the direct tv , dishnet card programing my own cards ..then that became a sma...

Your Account: