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.'"

28 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 CharlyFoxtrot · · Score: 4, Interesting

      Scott Adams was right : 'Adams introduced the word confusopoly in this book. The word is a combination of confusion and monopoly (or rather oligopoly), defining it as "a group of companies with similar products who intentionally confuse customers instead of competing on price". Examples of industries in which confusopolies exist (according to Adams) include telephone service, insurance, mortgage loans, banking, and financial services.'

      --
      If all else fails, immortality can always be assured by spectacular error.
    2. 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!

    3. 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
    2. Re:Free press by ceoyoyo · · Score: 4, Funny

      Don't be making fun of the land pirañas. Chihuahuas are funny little dogs individually, but if they're ever again allowed to form large packs you'll find out why they were universally feared in days of yore.

  4. I'd hate to own a mobile phone in Canada by ickleberry · · Score: 4, Interesting

    It seems to be the worst country when it comes to vendor lock-in (firmware branding, sim locking), long contracts, high costs and craptastic prepaid packages. The one GSM network they have there (Rogers) is only GSM by technology, they use IMEI numbers to make sure people are using the right branded device for the data plan they're on. In any country where there is no CDMA that shit wouldn't fly, of course the Gubmint there don't feel like doing anything about it.

    Believe it or not things are actually better in the States because in Canada absolutely nobody understands the concept of a SIM card or an unlocked phone. If I ever visit that country I'm taking an Iridium phone because I'd rather pay $1.45 a minute than support those goons.

    Besides the sales assistants there have probably been brainwashed to outright refuse to sell any prepaid SIM cards they might have and do all they can to convince you to take out a 36-month contract even after clearly explaining to them you are only staying for two weeks

    1. Re:I'd hate to own a mobile phone in Canada by notjosh · · Score: 5, Informative

      I've just moved to Canada and brought my (legally) unlocked iPhone from Australia with me. I have a two year working visa here. Rogers were unhelpful, and said a) they could not let my phone on the network, and b) they could offer me a new iPhone with a three year contract (despite my insistence I'd only be here for two at most, legally). Fido (a Rogers company, of course) were more helpful, offering a month-to-month plan (i.e. no contract) with relatively acceptable rates and allowed me to use my device on the network. Fido++ I avoided any contract at all, though, because there's strong rumour that Bell and Telus are launching a combined GSM network sometime this month (or next) so they can cash in on the iPhone and try and get some roaming dollars when people arrive for the Winter Olympics next year. So competition is soon to arrive, and Canada's mobile telephony options should be much more interesting soon!

    2. Re:I'd hate to own a mobile phone in Canada by cob666 · · Score: 4, Informative

      I live the the US and visit Canada quite frequently. I use Verizon Wireless as my carrier in the states and even though I detest a lot of their business practices, they are the only carrier here that has a plan that provides unlimited usage in Canada. For something like $9 per month we get unlimited calling into Canada and while we're traveling in Canada we get unlimited calling with zero roaming costs. For our data plan, we pay an extra $30 per month to get unlimited data usage in Canada. Even with the extra costs, we're still paying less than what it would cost us to have a Canadian cell plan.

      --
      Do what thou wilt shall be the whole of the Law - Aleister Crowley
    3. Re:I'd hate to own a mobile phone in Canada by ceoyoyo · · Score: 4, Informative

      Don't tell Rogers it's an iPhone. Just tell them you have an unlocked phone and need a SIM card. NOT over the phone - go in person to a mall kiosk or store. Get them to start doing the paperwork, THEN show them the phone, when asked. They'll make a big deal out of "checking" it to see if it really is unlocked. But since they've started the paperwork already....

    4. Re:I'd hate to own a mobile phone in Canada by Pitr · · Score: 5, Informative

      Here's the ugly truth:

      Rogers is a horrible company that will treat you like crap, and generally try to rip you off... they're also the best of the bunch. (Actually, I find Fido, which is owned by Rogers, but technically a separate company is a bit better) Rogers will at least work with you a little sometimes, Bell will wait until you're on a contract, then screw you, then say "oh well, have a nice day". Telus is about the same.

      Here's a great example of Bell/Telus customer service; A friend of mine bought a Telus blackberry after her old phone started to die. She had frequently been disconnected for failure to pay her bill, despite the fact that she always paid her bill, so I really don't know why she stayed with Telus, but that's another bag of snakes... back to the point. So this phone has horrible issues. She takes it back to get it exchanged for a working one, which apparently she has to wait 3 weeks+ for. Next phone, more issues, exchange again. Gets HER FIRST BLACKBERRY BACK as a "new" phone. Finally when that one doesn't work, she gets a different model which she has to spend hours on the phone over the course of a week to get them to agree to. Here's the kicker; ~$40 charge every time the phone#/account was switched to a different handset. That's right they charge to switch from your broken handset, to a working one (which in this case was also broken).

      And I'd STILL deal w/ Telus before Bell. Everyone's got at least one horror story with any given provider, and they're all a bunch of pricks, but having a lot of experience w/ pretty much all of the carriers here, I can't recommend anyone other than Fido or Rogers. It's a case of picking the least of the evils. Kinda like picking your personal bank. (Which is TD btw, or at least stay the HELL away from CIBC!!!)

      --

      --Not to be worried, Pitr fix.
    5. Re:I'd hate to own a mobile phone in Canada by ceoyoyo · · Score: 4, Informative

      Wait, you were talking about cell phone companies, right?

      Rogers is a bunch of bottom feeding sharks. Telus is worse, and I've heard Bell is even worse.

      Telus is so bad they had to start up a whole other brand (Koodoo) that, as their primary marketing strategy, makes fun of all the established companies (including Telus). Rogers ALSO has an alter ego (Fido) but at least they bought Fido to suppress competition rather than creating it to escape their bad reputation.

  5. If they were serious by Atrox666 · · Score: 4, Interesting

    If they were serious about consumer protection they'd just pass a law that requires full clear standardized disclosure of pricing.
    Failure should result in fines that have significant impact on shareholder value and should be grounds for terminating a contract.

  6. Can we haz Streisand Effect plox? by 4D6963 · · Score: 5, Interesting

    Can we find the algorithm of this calculator anywhere and Streisand Effect it?

    --
    You just got troll'd!
    1. Re:Can we haz Streisand Effect plox? by GNU(slash)Nickname · · Score: 5, Interesting

      Can we find the algorithm of this calculator anywhere and Streisand Effect it?

      The calculator (as designed) relies on the cellcos to provide and maintain current pricing data. It will only work with the weight of government regulation behind it to force them to do so.

  7. Some comments on the Norwegian version by kroyd · · Score: 5, Interesting

    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..)

  8. 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.

  9. 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
  10. 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

  11. CUB Cell Phone Saver by SrLnclt · · Score: 5, Informative

    For those of us in the states, the Citizen Utility Board of Illinois (CUB) already has a calculator similar to this. Just upload a recent bill or two, and it will tell you what the cheapest plan is for you on each of the top carriers. http://www.citizensutilityboard.org/cellphonesaver.html

  12. Re:No leaks? by Anonymous Coward · · Score: 4, Funny

    We'll get to it. It's just the line up at Tim's Drive thru is a bit slow.

  13. Re:Frustrating! by causality · · Score: 4, Informative

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

    What I think is unappreciated or underappreciated about abominations like Mussolini is that nothing they did was a chance, coincident, or accident. They understood very well what they were working for and where it was leading and accomplished it by a series of carefully planned maneuvers, each one of which had its own excuse, its own official story. Usually that story says that this is necessary, good for the country, designed to safeguard the people, intended to stop a national enemy, or that lack of patriotism is the only reason to oppose it. Above all, there is a distinctive pattern to it and once recognized, it is easy to spot, even in its early stages.

    --
    It is a miracle that curiosity survives formal education. - Einstein
  14. 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
  15. 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.

  16. Re:Frustrating! by causality · · Score: 5, Informative

    Yes, because only aspiring dictators use bombastic rhetoric.

    Are you really that shallow? Serious. Fucking. Question. Because if you can't tell the difference between that, and what I was talking about, then there's really no point in discussing this with you. For the more perceptive folks who happen to read this thread, this is an educational opportunity. This, folks, is what denial looks like. Its most distinguishing feature is that it immediately dismisses the valid points I raised while making absolutely no effort to refute it, and does so while attempting to appear superior as evidenced by the overall smugness.

    There's something even more dangerous than a wannabe dictator or a government that is heading in the wrong direction. That would be the many people with their heads in the sand who want so badly to believe that "it can't happen here" that they create the excuses, dismiss the warning signs, and ridicule the aware to the point that they virtually guarantee that it WILL happen here. If it doesn't happen here, that will be no thanks to these myrmidons.

    Folks, this is so simple it's absurd. Government is not a perfect institution, which we know for a fact because there are no perfect institutions. We also know for a fact that no institution lasts forever. Because it is not perfect, and cannot last forever, government has a failure mode. Be it a military dictatorship or a police state, the failure mode of modern Western government is the totalitarian state. In order to share the parent poster's naive attitude, you would have to believe that both of these are true:

    • That no government has ever failed, therefore your government cannot fail
    • That when government begins to fail, there are absolutely no warning signs whatsoever that could give an alert, vigilant public the chance to correct the damage before it becomes systemic and leads to total failure.

    God damn it, both of those are false and you know it. You know it even if you won't admit it.

    When a corporation can shut down a government Web site because it contains factual information that the corporation does not want people to know, that is one of your early warning signs. Go ahead and make excuses for it and tell me it's perfectly harmless; your reasoning will be limp-wristed and and your justifications will be half-hearted because you know deep down that I am speaking the truth.

    --
    It is a miracle that curiosity survives formal education. - Einstein
  17. 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