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Cell Phone Cost Calculator Killed In Canada

inject_hotmail.com writes "Internet and law genius Michael Geist writes about some shenanigans by the cell phone carriers and the Canadian government in his column in The Star. Canadian taxpayers funded a 'Cell Phone Cost Calculator' so that the average person could theoretically wade through the disjointed and incongruent package offerings. The calculator wound up being yanked a couple weeks before launch. Geist suggests that the major cell carriers lobbied the appropriate public officials to have the program nixed because it would bite into their profit if the general public could make sense out of pricing and fees. Geist continues, 'Sensing that [Tony] Clement (Industry Minister) was facing pressure to block the calculator, Canadian consumer groups wrote to the minister, urging him to stick with it.' Moving forward, Michael makes a novel suggestion, one that would show an immense level of understanding by the government: 'With public dollars having funded the mothballed project, the government should now consider releasing the calculator's source code and enable other groups to pick up where the OCA (Office of Consumer Affairs) left off.'"

12 of 214 comments (clear)

  1. Oh well. by Anonymous Coward · · Score: 5, Insightful

    Obviously its in my best interest if the Phone Company wants to rape me in the ass with my Phone Bills. That's what it said on the TeeVee anyway.

  2. Free market by Jurily · · Score: 5, Insightful

    to have the program nixed because it would bite into their profit if the general public could make sense out of pricing and fees

    OMG competition! Think of the shareholders!

    1. Re:Free market by Jurily · · Score: 4, Insightful

      People get poor deals on telephone service, mortgages and financial services because they are ignorant and lazy not because they are unable to do better if they put some effort into the negotiations.

      You can't have PhD's in every single area of your life. And please don't bring up financial services when even the knowledgeable (those who do this for a living) ran head forward into the the wall. And how do you negotiate with a multi-billion dollar company? They'll just tell you to go away.

      Bah. Who am I fooling. Money is God, customers are Opponents (if not the Enemy), and if they buy your product and it's bad for them, they deserve it and they should feel bad!

    2. Re:Free market by yuna49 · · Score: 4, Insightful

      No matter how educated I might want to be about the options available, I'm still limited to choosing among just those options. I'd like a cellular plan whose cost covers only the network portion and doesn't include a device subsidy. I've looked, and AFAICT, none of the major operators are willing to sell me just a connectivity plan.

      I've been on the same plan for about seven years now because I'm a grandfathered Cingular user. Any plan I might switch to costs more for the same level of service as I have now. In comparison to the cost of wireline telephony or Internet connectivity, rising prices for cellular service make absolutely no sense. Since it seems likely that the cost of providing cellular service must have declined in the past decade as past investments in plant are paid off, I'm guessing the carriers are making some significant profits.

      I'm all for educating consumers, but even an educated body of consumers can't do much when confronted with oligopoly pricing. There's no "free" market in cellphone service that I can see. If there were, I'd be able to go to AT&T or T-Mobile or some competing GSM carrier, buy a voice-only plan for $30/month, get a SIM chip, and stick it in my existing phone.

  3. Free press by da_matta · · Score: 5, Insightful

    This is where you need free press that attack like a pack of pitbulls and demand to know who ordered the cancellation and why. Nothing teaches politicians honest like public humiliation.

    1. Re:Free press by causality · · Score: 4, Insightful

      Sorry to burst your conspiracy theory, but it all comes down to profit margins, and general corporate laziness. Canada has a pretty low population (and even lower population density) than most of the places you mentioned. The retailers know that the marketplace won't sustain high profits if there is a lot of aggressive competition, so the companies generally don't enter into aggressive competition with each other. If I'm selling widget X and you're selling thingie Y, I'm not going to start selling thingie Y, because it won't be profitable to have half of a small pie. And a price war in a small market leads to mutually assured destruction.

      But that actually IS a conspiracy theory. It's a valid one, too. When all or most of the companies in a market collude together to produce a situation that benefits them at the potential expense of everyone else, like what you just described, they are indeed conspiring. That they do it out of mutual self-interest and not on behalf of a more abstract agenda doesn't change this. That they do it by means of business decisions and not by secret meetings in smoky back rooms doesn't change this either.

      We really need to get over the term "conspiracy theory." "Conspiracy theory" does not mean "instant way to halt all debate by stigmatizing your opponent," nor does it mean "instant excuse for dismissal without examination." It means "theory concerning people who work together in certain ways." There's nothing magical about the word "conspiracy" either. If you work at a company that makes widgets, you and all of your coworkers are conspiring to make widgets.

      It's sort of like the word "sanction" in that it does not necessarily indicate a bad or undesirable activity, it's just often used that way and has taken on a connotation which excludes other things that it can mean. This is particularly true in the minds of people who don't really understand the words they are using. If you do a good deed and are rewarded for it, you have been sanctioned. However, if you read a headline which says "U.N. sanctions $NATION" it's assumed that $NATION was punished in some way. Something similar has happened to the concept of a conspiracy theory and all of the well-meaning yet not very courageous people who tiptoe around that phrase when it really is the one that applies.

      --
      It is a miracle that curiosity survives formal education. - Einstein
  4. Re:Frustrating! by Wonko+the+Sane · · Score: 4, Insightful

    In short, it's life in a capitalist society.

    When corporations have the ability to use government policy as a tool to protect their private interests the correct term is not capitalism - it's called fascism.

  5. Re:Frustrating! by causality · · Score: 5, Insightful

    In short, it's life in a capitalist society.

    When corporations have the ability to use government policy as a tool to protect their private interests the correct term is not capitalism - it's called fascism.

    This is absolutely correct and when it's in the early stages like this, very few people recognize the danger. They don't seem to grasp that this is not a situation that can improve on its own. On its own, it can only get progressively worse and by the time it's immediately and outwardly obvious that they are living in a fascist state, it's often too late for the people to do much of anything about it other than cower and curse their lack of foresight.

    From the summary:

    Geist suggests that the major cell carriers lobbied the appropriate public officials to have the program nixed because it would bite into their profit if the general public could make sense out of pricing and fees.

    The attempt by the cell carriers to halt this project is all the more reason to go through with it. If anything, that should result in additional effort to not only produce the calculator but also to fund a media campaign so everyone knows it is available. The failure to understand this is all that you need to know in order to realize what a bunch of spineless, useless excuses for human beings (they are puppets really) our so-called leaders actually are.

    --
    It is a miracle that curiosity survives formal education. - Einstein
  6. Re:Frustrating! by Wonko+the+Sane · · Score: 5, Insightful

    "Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power." -- Benito Mussolini

  7. Re:Frustrating! by causality · · Score: 5, Insightful

    This sounds like the platform of the Conservative Party of Canada.

    Isn't it amazing how "conservative" once meant something like "reluctant to expend governmental resources" and has now come to mean "eager to increase the size and power and involvement of government, but for reasons different from the ones used by those who are called liberals?" Really, that's a neat trick.

    --
    It is a miracle that curiosity survives formal education. - Einstein
  8. Re:Frustrating! by lysergic.acid · · Score: 4, Insightful

    But that's the ultimate result of all unmitigated capitalist systems. Despite what conservative libertarians believe, the invisible hand of the free market does not create an egalitarian utopia where the little guys can compete on even terms with the multi-billion-dollar megacorporations or international conglomerates.

    Market forces (via economies of scale/scope) almost always push towards a single fully vertically and horizontally integrated monopoly. That's why Wal-Mart beats out little mom & pop stores. So, in order to force the reality of capitalism to reflect the ideal of capitalist competition, we have to create antitrust laws and industry regulations. But those things ultimately get in the way of corporate profits, so anyone supporting them is labeled a socialist (which is true in the sense that they care about society and social welfare over money and the economy). And if you're pro-capitalism then you must necessarily be pro-business and support deregulation.

    The other problem is that, even though capitalism is supposed to be an economic theory, its effects tend to spill out into politics and other societal spheres. A capitalist society, by definition, is driven by capital. Wealth equates to power in a capitalist society. With wealth, you have access to better education, better health care, and better opportunities. Additionally, having better lawyers means you are treated better in the eyes of the law, and having powerful lobbies means you have exponentially more political influence than your less affluent brethren—and why shouldn't you? you have better nearly everything else, right? If Ayn Rand was right, and the captains of industry do carry the world on their shoulders, then why shouldn't they get to decide public policy? And if everyone's goal in life should be to get filthy rich and look out for only themselves, then can you really blame the politicians who sell out to powerful business interests?

    So we shouldn't really be surprised by actions such as these. Everything from health, to education, to political influence is a commodity to be traded and sold. The economy has become an end in and of itself, and one that's more important than public good.

  9. Re:Frustrating! by causality · · Score: 4, Insightful

    And sounds a lot like what was being accomplished by Bush. Unpatriotic was the charge leveled repeatedly. The insane spending was initiated by Bush. The only howls are because a few different groups are getting the payouts and bribes than the Republicans would have given. Many of the payouts are the same under either party. The key to recognize is that the corporations don't care which party is in charge as long as they have been thoroughly bought. In fact, by having 2 and only two parties, the parties can fight over 'issues' and make voting seem important, when the (big) corporations still win. And having small companies die is great for the big corporations because they get them for a song. And it's not stockholders who make out like bandits, it's the actual bandits, CEO's, CFO's and cronies, who have the SEC in their back pocket.

    Please pardon how I put this, but it's a real pleasure to hear from someone who doesn't have his head up his ass. The two party duopoly is one of the pillars of our current situation, and there is unfortunately a shortage of people who can realize that on their own as you have done. As you seem to understand, the general naivete and encouraged ignorance has become so widespread that few people personally know the sharp insight and intuitive brightness which are not only available to human beings, but are in fact our birthright.

    Naturally the ability to realize your own inner genius is the first thing that must be stolen from the members of the public in order to promote the kind of stupidity that would have ever allowed our status quo to happen. That, to me, makes this a different kind of evil far beyond the mere desire to be in charge and control others.

    --
    It is a miracle that curiosity survives formal education. - Einstein