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Canadian Regulator Orders Telecoms To Tell Us What It Costs To Run Their Service

Posted by Soulskill on from the jig-is-up dept.

bshell writes "Canada's CRTC (like the FCC) has finally asked telecoms to provide information about how much their services actually cost. Quoting a Montreal Gazette story: 'In a report I wrote last year, I estimated the markup for Internet services was 6,452 per cent for Bell's Essential Plus plan, which provides a two-megabits-per-second speed for $28.95 (prices may have changed since last year).' The markup is likely similar in the U.S. It's about time that we consumers found out what it really costs to provide Internet service, and for that matter telephone and wireless services, so we can get a fair shake."

4 of 120 comments (clear)

  1. not really that simple. by queazocotal · · Score: 5, Insightful

    The cost of providing services can't ignore fixed costs.
    Sooner or later providers would need to install more hardware, or maintain the existing infrastructure.
    Costing is complex. Marginal cost is not the sole cost.

    1. Re:not really that simple. by Anonymous Coward · · Score: 5, Informative

      I don't get this issue here. Most of these companies are publicly traded, so you have access to their financials. Go look for yourself if you want to know what their operational profit margin is.

    2. Re:not really that simple. by Anonymous Coward · · Score: 5, Insightful

      Fido and Virgin are terrible examples, considering they're owned by Rogers and Bell respectively...

  2. I sense a great disturbance in the force... by fuzzyfuzzyfungus · · Score: 5, Funny

    As if hundreds of Hollywood accountants suddenly received job offers from Canadian Telcom companies...