Slashdot Mirror
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.'"
Can we find the algorithm of this calculator anywhere and Streisand Effect it?
You just got troll'd!
Since 2002 the "Norwegian Post and Telecommunication Authority" has had a calculator offering much of the same for the Norwegian market. In addition to mobile phones it also covers telephony and broadband. Basically, all providers are required by law to provide their pricing structures to the authority, so that the services can be compared. For mobile phones this will involve entering your typical number of minutes (to other mobile phones and landlines), text messages, mms messages and kilobytes.
I'm sure someone will moan that this is socialism, since it is a service that could be offered by the market, or that people could do themselves, or that services such as this can never be efficient anyway. There are some arguments against this: The Norwegian market is small (4.5 million people), with lots of mountains and a low population density, and strict rules about required coverage by the licensees. Manpower is also extremely expensive, and most workers are members of a union. So, clearly, Norway should have really high prices, right?
Wrong - according to the calculator my mobile phone costs should be about 0,- every month, with a 0,- establishment fee for the contract. (About 100 outgoing text messages, 100 minutes outgoing, and 1mb. No mms messages)
Why is this? It is of course hard to find the "perfect truth", but here are some informed guesses: The market is very regulated, in order to enforce competition. Perhaps the most important (to the consumer) point of this is that you can move your phone number to any other operator, either for free or for some very small cost. While there are only three GSM licensees there are 16 or so "virtual operators", who operate by putting a box inside the switches of the GSM licensees, and basically resell their bandwidth. The authority is also able to punish any collusion between the operators, and to require changes in price structures between the operators.
Clearly, all this (regulated) competition is good for the Norwegian consumer, but is it good for the telecom companies? The biggest Norwegian operator (Telenor) has according to wikipedia 143 million subscribers, so clearly all this competition does something to the companies, which can't be all bad. Telenor used to be a state-owned monopoly, which was well known for being hugely inefficient and slow. In markets where there can only be a limited number of providers (such as bandwidth in the GSM bands) there is no natural encouragement for companies to become more efficient, if you want to make more money it is easy to just add another hidden fee. Only by allowing for virtual operators and implementing the pricing calculator the benefits of having a market was realized.
(The same system was implemented for electrical power providers, but it failed for the banking system - allowing people to move their account numbers between banks was evidently too expensive..)