Saturday, May 5, 2007

Higher costs for Canadians?

Statistic Canada released the result of a survey that found only 67% of Canadians use cellular telephones. The highest rate of usage in Canada is by Alberta’s residents at 80%, the lowest rate of usage is by residents of New Brunswick (57.5%) and Quebec (57.9%). Some studies have shown that the low usage rates are linked to the higher costs paid by Canadians for mobile technology. Michael Hennessy claims "There is tremendous bias in this study", this coming from the vice-president of wireless, broadband and content policy for Teleus. Look who’s talking about biases.

I am inclined to agree with the findings of those studies considering us Canadians pay on average 33% more for cellular charges than residents of the USA and among 30 different countries we pay more for mobile technology. Considering the laws of supply and demand, a higher price will decrease the quantity demanded.

A solution…..More competition or better technology could perhaps increase usage. While some Canadians have chosen to disconnect their landline telephones and use only a mobile telephone, I still refuse to disconnect my landline until they develop a better cellular telephone. They need to increase the cellular’s battery life, increase cellular coverage and finally yet importantly reduce the costs, i.e. long-distance rates, access fees, caller ID, call waiting, message centre, did I miss something? What is with all the extra costs? If you buy a prepaid card, all the so-called “options” are included.

Statistic Canada also found that 10% of Canadians use VoIP or cable telephone services...perhaps this will be the way of the future.

What’s your opinion?

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